Aveanna Healthcare Holdings Inc. · NASDAQ:AVAH
Aveanna Healthcare — Investor Presentation (August 2021)
25 slides from Aveanna Healthcare's investor presentation, Aug 23, 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 2021 Exhibit 99.1
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements This investor presentation (this "presentation" and any oral statements made in connection with this presentation are for information purposes only and do not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase an
Slide 3: Today's Presenters
YEARS IN HOME HEALTH / HEALTHCARE Today’s Presenters Rod Windley Executive Chairman Tony Strange Chief Executive Officer David Afshar Chief Financial Officer Jeff Shaner Chief Operating Officer 30+ 30+ 15+ 20+ Founded Healthfield in 1986, acquired by Gentiva Health Services in 2006 for $454 million
Slide 4: The History of Aveanna
The History of Aveanna ___________________________ 1. Includes the predecessors, Epic and PSA. 2015 Leadership Team Joins PSA Healthcare 2018 Acquires Premier Health Services 2017 Merger of PSA and Epic Creates Aveanna, which We Believe is the Largest Pediatric Home Care Company 2021 Acquires Doctor
Slide 5: Aveanna at a Glance "By The Numbers"
Aveanna at a Glance “By The Numbers” Revenue Growth National Footprint Service Lines Skilled Private Duty Nursing Unskilled Personal Care Therapy Medical Solutions Adult Home Health & Hospice Private Duty Services 2021 Forecast (F) Key Operating Statistics $1,745mm1 F Revenue $185mm1 F Adj. EBITDA 1
Slide 6: Our Culture: Mission, Core Values, Operating Principles
SOUR CULTURE TOUCHSTONE OUR MISSION To revolutionize the way homecare is delivered, one patient at a time. CORE VALUES Compassion Team Integrity Inclusion Trust Innovation Compliance OPERATING PRINCIPLES The Five “C”s Census Growth Clinical Outcomes Customer Satisfaction Cost Control Cash Collection
Slide 7: Our Referral and Payer Partners
Our caregivers Our care Our patients Physicians Payers Referral Sources Hospitals / Health Systems Physician Practices Facility-Based (SNF / ALF) Community-Based Payer Case Managers Our Referral and Payer Partners
Slide 8: Who We Serve
Melia and Mom Heather Valerie Brylee and Mom Marisa “I loved meeting the nurses and therapists who came to my home. They were caring, encouraging and so helpful with my recovery. Now I am independent again and feeling great after my hip replacement surgery.” “Melia’s progress has been amazing since
Slide 9: Private Duty Services Segment "By The Numbers"
Private Duty Services Segment “By The Numbers” Key Items Financial Highlights Key Operating Statistics $1,399mm Run Rate Revenue1 29% – 30% Gross Margin2 4% - 5% Organic Growth Rate3 185 Locations 22 States 29,000 Patients on Service <10 Avg. Patient Age Avg. Case Length 3-5 Years Growth Drivers - A
Slide 10: Medical Solutions Segment "By The Numbers"
Medical Solutions Segment “By The Numbers” Key Items Financial Highlights Key Operating Statistics Locations States Patients on Service Avg. Patient Age Avg. Case Length Growth Drivers - Clinically-specialized sales force, scaled infrastructure, new market expansion strategy, cross-sell between PDS
Slide 11: Home Health & Hospice Segment "By The Numbers"
Home Health & Hospice Segment “By The Numbers” Key Items Financial Highlights Key Operating Statistics Locations States Patients on Service Avg. Patient Age Avg. Case Length Growth Drivers - superior clinical outcomes and star ratings, experienced sales force, specialty programs targeting high- cost
Slide 12: Leverageable Corporate Infrastructure
Leverageable Corporate Infrastructure Aveanna Executives Compliance Clinical Accounting / Finance Information Technology RCM Payer Relations Marketing DE&I Continued Leveraging of Corporate OH Leverage core competencies in nurse recruiting, training and retention IT infrastructure including recruiti
Slide 13: Large, Fragmented Home Care Markets Support Sustainable Growth
Large, Fragmented Home Care Markets Support Sustainable Growth $18bn Legacy Pediatric Focus Personal Care $15.0bn Annual U.S. Healthcare Spend $4.0tn Therapy $6.0bn Enteral Nutrition $2.5bn Therapy $6.0bn Private Duty Nursing $9.5bn Hospice $19.0bn $89bn Addressable Adult Opportunity TAM in 2020 ann
Slide 14: National Providers vs. Local Competitors
National Providers vs. Local Competitors Public Peers Large Private Peers ___________________________ Source: Third party consulting report, management estimates. Local / Regional Competitors Multibillion-dollar companies Comprised of mostly Home Health and Hospice Makes up ~8% of TAM $500M – Multib
Slide 15: Industry Trends
Industry Trends Current and Future Trends Cost Savings Value-Based Care Establish risk-bearing arrangements that reward Aveanna’s scale and capabilities Well-positioned to benefit from shift to value-based care due to our scale, technology infrastructure, clinical training and compliance programs Se
Slide 16: Reimbursement Environment is Structurally Positive
Reimbursement Environment is Structurally Positive Diverse group of payers includes managed care organizations (“MCO’s”), state-based Medicaid programs, Medicare, MA plans, commercial insurance and other government payers across 30 states Over 1,500 distinct payers No single payer accounted for more
Slide 17: Sophisticated Platform to Source, Execute and Integrate Acquisitions
Sophisticated Platform to Source, Execute and Integrate Acquisitions Management team has executed more than 50 acquisitions comprising >$6bn of transaction value over last 30 years. Aveanna has completed 11 transactions1 since 2017. Management Team has Significant M&A Track Record Aveanna Acquisitio
Slide 18: Integration Management Office (IMO) Truly Differentiates
Integration Management Office (IMO) Truly Differentiates Dedicated IMO Team Integration Playbook Detailed M&A Diligence 16 people exclusively dedicated to integrating acquisitions A disciplined, phased integration approach built on “seek to understand” and “do no harm” The IMO team leads due diligen
Slide 19: Diversified, Accretive M&A Strategy
Geographic Expansion Cross-Sell of Existing Services Cost Synergies Clinical Labor Efficiencies Payer Scale & Relevance Diversification/ New Market Entry Eliminate acquired overhead Eliminate acquired overhead Improve recruitment Enhance contracting Drive enteral, therapy cross-sell Drive enteral, t
Slide 20: Methodical, Systematic Approach to Acquisition Integration
Methodical, Systematic Approach to Acquisition Integration Proven M&A playbook perfected from extensive experience and enabled by scaled technology platform Compliance Training Legal Recruiting HRIS, Payroll, General Ledger, LMS POC Device Sales EMR / Clinical, Billing Clearing- house learning Platf
Slide 21: Compelling Financial Profile
Compelling Financial Profile Historically stable gross margins of ~30-33%3 driven by improving reimbursement and control of labor costs Platform infrastructure in place to drive operating leverage and efficiencies Stable Margin Profile Revenue CAGR of 11.6% and Adj. EBITDA CAGR of 16.3% between 20
Slide 22: Proven Ability to Drive Robust Growth
’18A – ’21F Revenue ’18A – ’21F Gross Margin ($ in millions) Proven Ability to Drive Robust Growth ___________________________ See appendix for details on non-GAAP reconciliations. 1. Includes current year contribution of acquisitions completed in 2020 and 2021 (Total Care, Preferred Pediatric Home
Slide 23: Liquidity / Credit Statistics Overview
Liquidity / Credit Statistics Overview Aveanna's repayment of debt with IPO Proceeds and Credit Facility Amendment in July, 2021 significantly reduced leverage and reduced debt service going forward. 2018 2019 2020 Q2 2021 Cash 8 3 137 107 Revolver Availability 53 24 55 180 Total Liquidity 61 27 192
Slide 24: Appendix
8 aveanna healthcare Appendix
Slide 25: Reconciliation of Corporate Expenses to Adjusted Corporate Expenses
Reconciliation of Corporate Expenses to Adjusted Corporate Expenses ___________________________ 1. 1-8: Please see our earnings release posted on August 11, 2021 for further description of the nature of these items
Aveanna Healthcare Holdings — Investor Presentation (August 2021) on 6ix