Viemed Healthcare, Inc. · NASDAQ:VMD
Viemed Healthcare — Investor Presentation (August 2024)
25 slides from Viemed Healthcare's investor presentation, August 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024 Leading the Healthcare Industry in Home Respiratory Care NASDAQ: VMD
Slide 2: Disclaimers and Other Important Information
DISCLAIMERS Disclaimers and Other Important Information This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed” or the “Company”) is dated as August 2024. It is information in a summary form and does not purport to be complete. The data contained herein is derived from various
Slide 3: Viemed at a Glance
Viemed at a Glance ▪ Largest independent specialized provider of non-invasive ventilation (NIV) in the US home respiratory health care industry ▪ Highly profitable with a 25% CAGR in revenue growth since spinout in 2017 ▪ Service offering includes 24x7 in home respiratory care including specialized
Slide 4: Our Journey
Our Journey 2006 S L E E P MANAGEMENT F O U N D E D Annual Revenues: $0.24M USD Respiratory DME specializing in CPAPS & Oxygen 2010 HSD Home Sleep Delivered – Specializing in home sleep tests VENTILATOR EXPANSION 2012 Non Invasive ventilator introduced to market PHM ACQUISITION 2015 Acquired by a pu
Slide 5: Key Investment Consideration
Key Investment Consideration Market Expansion in Home Medical Equipment (HME) ▪ Sustained growth in HME markets, particularly in complex respiratory and Obstructive Sleep Apnea (OSA) segments ▪ Underserved chronic COPD population qualifying for Non-Invasive Ventilation (NIV) in the home Demographic
Slide 6: Current State of the Industry
Current State of the Industry 5.5% CAGR 114.5 108.8 At the age of 65, 103.2 DME expenditures are expected 97.9 patients qualify to grow at a 5.5% CAGR to $114.5 billion in 2031 87.6 92.7 for Medicare 78.9 83.4 75.4 72.3 67.1 56.5 55.1 54.1 51.6 48.7 50.0 The Medicare population is 43.3 44.9 46.6 40.
Slide 7: NIV Market Penetration
NIV Market Penetration 25 Million (estimated) people in the U.S. have COPD 2,500,000 or 10% have stage 4 COPD 12% 1,250,000 or 50% of those with stage 4 COPD VIEMED IS THIRD LARGEST PROVIDER* develop chronic respiratory failure becoming candidates for our therapy Approximately 80,000 annual Medicare
Slide 8: Services and Payors
Services and Payors SERVICE MIX PAYOR MIX nd2 Quarter 2024 nd 2 Quarter 2024 Sleep Oxygen Other 16% 10% 11% Other Commercial 18% 19% Medicare 42% Ventilation Medicare Advantage 56% 20% Medicaid/ MCO 8% Viemed Healthcare, Inc. | Investor Presentation Slide 8
Slide 9: The Viemed Solution
The Viemed Solution Registered Respiratory Therapists (RTs) assigned to each patient and on call 24X7 ▪ All RTs are COPD educators ▪ Assess and service medical equipment ▪ Overseen by pulmonologists on staff ▪ Behavioral health specialist support Each patient is given a customized in-home care plan
Slide 10: A Dedicated 24/7 Respiratory Therapist
A DEDICATED 24/7 RESPIRATORY THERAPIST with all our Viemed products Patient Ventilators Sleep Therapy Engagement Percussion Vests Oxygen Therapy Slide 10
Slide 11: Proven Organic Growth Strategy
Proven Organic Growth Strategy Location selection ▪ Based on high COPD rates ▪ Target hospitals and facilities with high readmission rates and near existing service area ▪ Leverage existing relationships and operate heavily in rural markets Unique lean deployment model ▪ No costly retail stores ▪ Sa
Slide 12: Complementary Acquisition Initiatives
Complementary Acquisition Initiatives Strategic Acquisitions ▪ Acquired Home Medical Products, Inc. (HMP) in June 2023 ▪ Immediately accretive to net income and EPS ▪ Contributes to geographic, product, and payor diversity ▪ Revenue synergies complement organic growth Hospital Joint Ventures ▪ Compl
Slide 13: Published Research
Published Research Real-world results June 29, 2022 September 15, 2021 December 29, 2020 Early initiation of non-invasive ventilation at Non-invasive ventilation at home Non-invasive ventilation at home home reduces mortality, hospitalizations, improves survival and decreases reduces mortality in CO
Slide 14: Technology and Remote Care
Technology and Remote Care ▪ Mission of becoming a leading healthcare technology company coupled with high touch human interaction in the home ▪ Goal is to improve quality of life and length of time patients spend with loved ones ▪ Increase efficiency of clinicians through improved remote workflow a
Slide 15: Objectives for the Next 24 Months
Objectives for the Next 24 Months ▪ Grow active patient base while entering new target markets through geographic expansion ▪ Communicate findings from the growing number of research studies to referral sources and payors in order to save more lives and increase market penetration ▪ Diversify payor
Slide 16: Financial Information
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Slide 17: Regulatory Update
Regulatory Update ▪ Government reimbursements are stable, with rates indexed to rise with inflation ▪ CMS adoption of 2024 Final Rule increases transparency and accountability for Medicare Advantage plans, improves prior authorization processes ▪ Round 2021 competitive bidding contracts expired on D
Slide 18: Vent Revenue Model
Vent Revenue Model ▪ Monthly rental fee – reimbursed by insurance and covered by Medicare ▪ Uncapped rental contract for ventilators (56% of 2Q24 revenue) ▪ Average monthly vent reimbursement of $1,050 ▪ Pricing includes equipment rental, RT service, supplies and maintenance of equipment ▪ Other maj
Slide 19: Historical Financial Performance
Historical Financial Performance $183.0M $180,000,000 Net Revenue Active Vent Rental Patients 10,905 as of 6/30/24 $160,000,000 $138.8M $140,000,000 $131.3M 10,500 $117.1M $117.1M $120,000,000 $110,000,000 $105.6M $100,000,000 9,500 $80,000,000 $60,000,000 $40,000,000 8,500 $20,000,000 $0 2020(1) 20
Slide 20: Capital Markets Profile
Capital Markets Profile NASDAQ: VMD 38,825,799 & 40,556,268 $8.8M 6/30/24 $9M 6/30/24 1,137 7/31/24 20% 6/30/24 Shares outstanding Cash on hand Total LT debt Total staff Insider beneficial & fully diluted in USD in USD ownership Market cap as of July 31, 2024: $280M (USD) Stock price as of July 31,
Slide 21: Board of Directors
Board of Directors Casey Hoyt Randy Dobbs Sabrina Heltz Bruce Greenstein Chief Executive Officer Chairman of the Board Independent Director Independent Director and Director and Independent Director Nitin Kaushal Tim Smokoff Dr. William Frazier Todd Zehnder Independent Director Independent Director
Slide 22: Corporate Structure
Corporate Structure Viemed Healthcare Inc. (Canadian Parent Company Listed on NASDAQ) Viemed Inc. (Delaware Corporation/US Subsidiary) HMP, Inc. Sleep Management, LLC Viemed Healthcare Staffing, LLC (US Sub- Tennessee) (US Sub- Louisiana) (US Sub- Louisiana) Home Sleep Delivered, LLC Viemed Clinical
Slide 23: Investor Relations
Investor Relations: Glen Akselrod Bristol Capital IR glen@bristolir.com Tel: 905 326 1888 Slide 23
Slide 24: Appendix
Viemed Appendix
Slide 25: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (1) Reconciliation of Adjusted EBITDA 2020 2021 2022 2023 1H 2024 Net Income $ 31.5 $ 9.1 $ 6.2 $ 10.2 $ 3.1 Depreciation & Amortization 9.6 11.3 15.6 21.9 12.6 Interest Expense 0.5 0.3 0.2 0.4 0.4 Transaction Costs - - - 0.5 0.3 Stock-based Compensation 4.9 5.2 5.2
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