Infusystems Holdings, Inc. · AMEX:INFU
Infusystems — InfuSystem Holdings — Sidoti & Company LLC Conference January 2014
36 slides from Infusystems's conference presentation, Jan 13, 2014
Slide 1: InfuSystem Holdings, Inc. Sidoti & Company LLC Conference
InfuSystem Holdings, Inc. Sidoti& Company LLC Conference January 13, 2014 Eric K. Steen, CEO Jonathan P. Foster, CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this presentation are forward -looking statements and are based on future expectations, plans and prospects for InfuSystem Holdings, Inc.’s (“InfuSystem”, “INFU”, “the Company”, “We”) business and operations that involve a number of risks and unc
Slide 3: InfuSystem at a Glance
InfuSystem at a Glance Company Overview Innovative provider and supplier of infusion services Market leader in oncology home infusion with 40,000 patients a year –25 Year business model World-class pump rentals and service to providers, manufacturers, and (1) other rental companies in the US and Can
Slide 4: Full Line Multi-Therapy & Multi-Point Offering
Full Line Multi-Therapy & Multi-Point Offering Payor Patient Partne Provider Device & Pharma Manufacturer, Distributor, GPO, ACO
Slide 5: Positioned For Growth
Positioned For Growth Market Trends • InfuSystem is uniquely positioned to take advantage of market trends Leadership •Leadership can now focus on running a business for first time in over a year Strategy •Transformational strategy is developed and being implemented
Slide 6: InfuSystem: Niche – Extension of Clinic to Home
InfuSystem Niche – Extension of Clinic to Home Ambulatory Home Infusion 25-year old business model in DME billing At home, at work, at play, all while receiving the drug High satisfaction scores 24/7 on-call oncology nurses Proven outcomes with continuous home infusion Oncology, Post Surgical Pain,
Slide 7: US Population Growing … Aging Population Stats
US Population Growing … Aging Population Stats At-risk lifestyles persist (red, processed meats) Growth in all types of cancers Cancer 1,650,000 new cancer cases in 2013 Can be treated effectively by continuous infusion Colo-rectal 3rd most common in US and Worldwide 9% of all new cases 145,000 new
Slide 8: TPP Pump Return on Investment
TPP Pump Return on Investment Average Cost ~$1,500/pump Pump Lifespan 15years Average Monthly ~$300/pump Revenue Lifetime Approx. ~$20,000+ Revenue/Pump
Slide 9: Increasing Therapy Offerings to Payors
Increasing Therapy Offerings to Payors Oncology Payor Infectious Disease Surgery Special Disease States
Slide 10: Rentals, Sales & Service to Providers
Rentals, Sales & Service to Providers Pump Rentals, Sales and Asset Management Pump Experts Direct sales, rental, and lease of device and supplies in US and Canada Pump Broker Expertise –ability to acquire and dispose of CAP EX in cost effective way Asset management, rental and lease Preventative Ma
Slide 11: Offering Infusion to All Points of Care
Offering Infusion to All Points of Care Home Infusion Provider Long Term Care Emergency Services Oncology Acute Care
Slide 12: Continued Revenue Diversification
Continued Revenue Diversification 2009 Revenues $39M 1% 1% 2% 26% 70% Rentals - Colorectal Cancer Rentals - Infectious Disease Rentals - Hospitals/Home Care Sales - DP 2012 Revenues $59M 9% 4% 13% 51% 23% Rentals - Other Cancers Rentals -Pain Management Rentals - Service & Repair
Slide 13: Connectivity through EMR, Web Portal and System Interface
Connectivity through EMR , Web Portal and System Interface
Slide 14: Electronic Data Exchange
Connectivity through EMR , Web Portal and System Interface Electronic Data Exchange Interface Effects Customer investment in interface makes for sticky relationships. Ties customer to InfuSystem.
Slide 15: Distribution for Faster Turnaround and Improved Utilization
For Faster Turnaround and Improved Utilization InfuSystem Distribution High-density Metro Markets Reduced cost of air shipments Improved utilization of pumps Increased market share of same-day rental market
Slide 16: Where Does This Get INFU In Three Years?
Where Does This Get INFU In Three Years ? Aging Population and Cancer Growth More Patients Home IV , Commercial Pay Recognizing Value, CMS Competitive Bidding Peripheral Nerve Block and Smart Pump Growth Revenue Growth in High Single Digits Through 2015
Slide 17: Financial Review
Financial Review CinfuSystem INFUSION MADE EASY.
Slide 18: Financial Overview
Financial Overview Revenues $70m Revenues $58,828 $60,137 $60m Growing $56,793 $54,637 $50m $47,229 $40m $38,964 $30m FY2009 FY2010 FY2011 FY2012 9M 2012 9M 2013 Annualized Annualized Free Cash Flow (1) $16m $14,244 $12,915 $12m $10,568 FCF $8m Growing $5,754 $4m FY2011 FY2012 9M 2012 9M 2013 Annual
Slide 19: Uses of Free Cash Flow
Uses of Free Cash Flow Total Debt $35m $32,197 Debt Declining $31,268 $30m $29,127 $28,466 $28,328 $27,619 $25m $24,141 $20m FY2009 FY2010 FY2011 FY2012 1Q 2013 2Q 2013 3Q 2013 PP&E and Medical Equipment in Service (at cost) $38m $37,040 Rental Fleet $36m Increasing $35,474 $35,026 $34,193 $34m Ever
Slide 20: Take Away
Take Away CinfuSystem
Slide 21: Positioned For Growth
Positioned For Growth Market Trends • InfuSystem is uniquely positioned to take advantage of market trends Leadership •Leadership can now focus on running a business for first time in over a year Strategy •Transformational strategy is developed and being implemented
Slide 22: Thank You for Your Interest!
Thank You for Your Interest! IR Contact Info: The Dilenschneider Group 212-922-0900 Rob Swadosh, rswadosh@dgi-nyc.com Patrick Malone, pmalone@dgi-nyc.com
Slide 23: Appendix: INFU Overview
Appendix: INFU Overview CinfuSystem
Slide 24: Compelling Value Proposition
Compelling Value Proposition Complementary core competencies allow InfuSystem to offer superior selection, flexibility, pricing and services One-Stop Shopping - One-stop shopping solution volume pump and other Sales Rentals Supplies Service Financing Convenience & Flex Convenience and flexibility fi
Slide 25: Payor & Customer Mix
Payor & Customer Mix InfuSystem has strong relationships with the largest third-party payorsand the leading cancer institutions High diversification of providers and payors No single healthcare provider represents more than 7% of Third-Party Payor revenues Strong payor mix among Medicare, other comm
Slide 26: Competitive Landscape
Competitive Landscape InfuSystem measures its market share not in terms of the number of practices, but the pool of addressable patients The breakdown of the Company’s current market share shows that despite being the predominant national player in continuous infusion, there is ample room for organi
Slide 27: Direct Payor Business Model
Direct Payor Business Model InfuSystem’s Direct Payor business is focused primarily on the sale, rental, financing and accompanying service of movable medical equipment to hospitals and alternate care sites who pay InfuSystem directly –no third-party reimbursement Founded in 1998 and headquartered i
Slide 28: Direct Payor Offerings
Direct Payor Offerings Leading Provider of New and Pre-Owned Pumps InfuSystem offers new pumps from top brands Broker-dealer trading desk In addition, over 70 models and versions of pre-owned pumps are offered Pre-owned pumps are re-built and certified by in-house biomedical technicians to be patien
Slide 29: Medical Equipment Service & Repair
Medical Equipment Service & Repair In addition to supporting and repairing InfuSystem’s in-house fleet, the Company certifies, recalibrates, repairs and services a variety of infusion pumps Pumps require scheduled maintenance and calibration in accordance with manufacturer’s specifications and regul
Slide 30: Ambulatory Pump Rental Fleet
Ambulatory Pump Rental Fleet With over 26,000+ pumps in TPP Rental Fleet, InfuSystem maintains the largest fleet of ambulatory infusion pumps in the industry DPP Rental Fleet has over 20,000 pumps The Company has a complete inventory of virtually every model pump from every leading manufacturer, all
Slide 31: Competitive Bidding Overview
Competitive Bidding Overview Competitive Bidding Overview InfuSystem was not involved in Round 1 nor Round 2 of Competitive Bidding CMS announced a Recompete of Round 1 competitive bidding on April 17th External infusion pumps/supplies added as a new product category A supplier must bid on all items
Slide 32: Summary Income Statement
Summary Income Statement ($000’s) FY2009 FY2010 FY2011 FY2012 9 Mo 2012 9 Mo 2013 Net revenues: Rentals $ 46,795 $ 53,471 $ 38,903 $ 41,556 Product sales $ 7,842 $ 5,357 $ 3,692 $ 3,547 Net revenues $ 38,964 $ 47,229 $ 54,637 $ 58,828 $ 42,595 $ 45,103 Cost of revenues: Product, service and supply c
Slide 33: Continued Revenue Diversification
Continued Revenue Diversification 2009 Revenue 1% 1% 2% 26% 70% Rentals - Colorectal Cancer Rentals - Infectious Disease Rentals - Hospitals/Home Care Sales - DP Rentals - Other Cancers Rentals - Pain Management Rentals - Service & Repair
Slide 34: Continued Revenue Diversification
Continued Revenue Diversification 2009 Revenues $39M 1% 1% 2% 26% 70% Rentals - Colorectal Cancer Rentals - Infectious Disease Rentals - Hospitals/Home Care Sales - DP 2012 Revenues $59M 9% 4% 13% 51% 23% Rentals - Other Cancers Rentals -Pain Management Rentals - Service & Repair
Slide 35: Summary Balance Sheet
Summary Balance Sheet ($000’s) 12/31/09 12/31/10 12/31/11 12/31/12 3/31/13 6/30/13 9/30/13 ASSETS Current Assets: Cash and cash equivalents $ 7,750 $ 5,014 $ 799 $ 2,326 $ 472 $ 102 $ 908 Account receivable - total, net of allowance $ 5,517 $ 6,679 $ 7,448 $ 8,511 $ 9,570 $ 9,440 $ 9,291 Inventory $
Slide 36: Cash Flow
Cash Flow ($000’s) FY2009 FY2010 FY2011 FY2012 9 Mo 2012 9 Mo 2013 OPERATING ACTIVITIES Net Income $ 774 $ (1,852) $ (45,443) $ (1,489) Adjustments: Provision for doubtful accounts $ 4,006 $ 4,515 $ 4,099 $ 5,251 Depreciation $ 4,122 $ 5,357 $ 6,386 $ 5,668 Loss on disposal of pumps $ 342 $ 994 $ 1,
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