Medical Facilities Corporation · TSX:DR
Medical Facilities — Investor Presentation (May 2023)
15 slides from Medical Facilities's investor presentation, May 2023
Slide 1: Investor Update
CORPORATION MEDICAL ». fem FACILITIES — "iD Investor Update May 2023 sy
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario) and other provincial securities law in Canada. These forward-looking statements include, among ot
Slide 3: MFC Overview
MFC Overview In partnership with US$414.4 US$34.9 physicians, MFC million million owns a diverse 2022 Total Revenue 2022 Income from portfolio of highly & Other Income Operations rated, high-quality surgical facilities in US$72.3 the United States. 152 million Physician Partners* 2022 Adjusted EBITD
Slide 4: Strong Partners
• Direct Physician involvement in facility STRONG management, resulting in superior processes and efficiencies PARTNERS • MFC Nueterra, a joint venture with NueHealth, LLC, a ValueHealth company - provides operational support and procurement benefits 4
Slide 5: Diversified
DIVERSIFIED Portfolio Medical Facilities Corp. MFC Nueterra comprised of • Controlling interest in 4 • Controlling interest in 4 specialty surgical hospitals ASCs2 located in Michigan, high-quality located in Arkansas, Missouri, Nebraska, and surgical facilities Oklahoma, and South Pennsylvania Dako
Slide 6: Best in Class
BEST IN CLASS Higher patient experience ratings resulting from higher quality of care Hospital Star Rating Arkansas Surgical Hospital Black Hills Surgical Hospital Oklahoma Spine Hospital Sioux Falls Specialty Hospital Source: US News Health (results were similar for knee replacement patients and hi
Slide 7: Strong Fundamentals
STRONG FUNDAMENTALS Growing demand for U.S. population aged 65+ (millions) 75 healthcare 60 45 Drivers: 30 • Overall population growth • Aging population 15 0 2015 2020 2025 2030 Sources: Census.gov and United Nations, Department of Economics and Social Affairs, Population Division. 7
Slide 8: Favourable Payor Mix
Favourable Payor Mix 2022 MFC Facility Service Revenue 2021 U.S. Healthcare System Revenue 13% 28% 34% 52% 35% 38% Private Insurance Medicare/Medicaid Other Private Insurance Medicare/Medicaid Other Source: Centers for Medicare & Medicaid Services, National Health Expenditure Fact Sheet (February 17
Slide 9: The U.S. Healthcare Landscape
The U.S. Healthcare Landscape Facility type Number Services MFC’s position General medicine and surgery, including emergency Acute Care Hospital Approx. 5,500 and maternity care, open 24/7 Scheduled elective procedures (e.g. orthopedics, Owns 4 in conjunction with Specialty Surgical Hospital <300 ph
Slide 10: Focused on Shareholder Returns
Focused on Shareholder Returns 2022 Total: Q1 2023: 4,880,297 417,900 common shares common shares purchased for aggregate purchased for aggregate consideration of consideration of ~$38M1 ~$2.5M2 1 Included 3,053,097 shares purchased under a Substantial Issuer Bid and 2 Purchased under existing NCIB.
Slide 11: Financial Highlights
Financial Highlights (US$ thousands, except where Q1 2023 Q1 2022 Change % noted otherwise) Facility service revenue 109,250 100,788 8.4% Government stimulus income - 1,810 (100.0%) Total revenue and other income 109,250 102,598 6.5% Income from operations 13,505 14,680 (8.0%) EBITDA 19,145 19,817 (
Slide 12: Strong Financial Position
Strong Financial Position 1.40 1.88 $35.3 million Current Ratio 0.90 Net Debt* / EBITDA (LTM) Cash & Cash Net Debt* / Equivalents Equity * Inclusive of lease liabilities per IFRS 16. As at March 31, 2023 12
Slide 13: Investment Highlights
Investment Highlights • Growing demand for healthcare due to overall population growth and an aging population • Diverse portfolio of highly rated, high-quality facilities • Experienced, entrepreneurial management team • Competitive dividend 13
Slide 14: Capital Markets Profile
As at May 11, 2023 Capital Markets Profile Stock Symbol: TSX: DR Shares Outstanding: 25.4 million Price: $8.52 Market Capitalization: $216.2 million Annualized Distribution (per share): $0.322 Current Yield: 3.78% *All dollar amounts are in Canadian currency. 14
Slide 15: To learn more, contact: Trevor Heisler
To learn more, contact: Trevor Heisler MBC Capital Markets Advisors theisler@maisonbrison.com
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