Medical Facilities Corporation · TSX:DR
Medical Facilities — Investor Presentation (February 2018)
18 slides from Medical Facilities's investor presentation, February 2018
Slide 1: Investor Update
Investor Update FEBRUARY 2018 TSX: DR
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 • HIGHER PATIENT SATISFACTION ratings resulting from HIGHER US$339.5 US$68.1 QUALITY OF CARE RECEIVED million million • DIRECT PHYSICIAN INVOLVEMENT 2016 Income from in facility management, resulting in 2016 Revenue Operations SUPERIOR PROCESSES AND EFFICIENCIES US$90.7 159 million Phys
Slide 4: Our Facilities
Our Facilities Operating Operating Overnight Facility Since Acquired Rooms Rooms Arkansas Surgical 2005 2012 11 41 Hospital Unity Medical and 2009 2016 6 29 Surgical Hospital Oklahoma Spine 1999 2005 7 25 Hospital Black Hills Surgical 1997 2004 11 26 Hospital Sioux Falls 1985 2004 13 35 Specialty Ho
Slide 5: 2018 Strategic Guiding Principles
2018 Strategic Guiding Principles MFC delivers value from a strong foundation of high-quality facilities providing exceptional patient care while maintaining a conservative approach to financial management that has resulted in a long track record of solid returns. Industry leading quality Strong phy
Slide 6: Strict Acquisition Criteria
Strict Acquisition Criteria • Accretion, with growth available from a local strong provider base, attractive demographics, and opportunities for operating enhancements • High quality and optimum clinical outcomes • Continued strong earnings and opportunity for growth • Controlling position by MFC 6
Slide 7: Investing in Growth
Arkansas Michigan Missouri Nebraska Ohio Oregon Pennsylvania Investing in Growth • Formed Joint Venture with NueHealth in January 2018 • National surgical center operator • Has developed, managed or owned >150 facilities • Provides day-to-day management and operations support • Acquired majority int
Slide 8: Our Newly Acquired Facilities
Our Newly Acquired Facilities 11 STATES Newly Acquired Ambulatory Surgery Centers Brookside Surgery Center Central Arkansas Surgical Center City Place Surgery Center Eastwind Surgical Miracle Hills Surgery Center Riverview Ambulatory Surgical Center Two Rivers Surgery Center Ambulatory Surgery Cente
Slide 9: Delivering Shareholder Value
Capital Markets Profile as at February 1, 2018 Delivering Shareholder Value Stock Symbol: TSX: DR Shares Outstanding: 31.0 million Price: $15.44 52-Week Low / High: $11.14/$19.90 Market Capitalization: $477.9 million Annualized Distribution (per share): $1.125 Current Yield: 7.3% Payout Ratio (TTM):
Slide 10: Strong Cash Flow
Strong Cash Flow1 Distributions Cash Available for Distribution Cash Available for Distribution (including realized gains/losses on FX forward contracts)2 (excluding realized gains/losses on FX forward contracts) (C$ millions) 51.9 50.7 50.7 69.0 % 45.9 43.3 40.8 40.8 41.4 37.8 35.7 34.4 35.3 35.2 3
Slide 11: Operating Results – Q3 2017
Operating Results – Q3 20171 (US$ millions, except where noted otherwise) Q3 2017 Q3 2016 Change % YTD2 FY2016 REVENUE 89.0 78.8 12.9% 274.1 339.5 INCOME FROM OPERATIONS 12.4 14.2 (12.3%) 41.9 68.1 OPERATING MARGIN 13.9% 18.0% (22.2%) 15.3% 20.1% EBITDA 19.3 19.6 (1.4%) 62.6 90.7 CASH DISTRIBUTIONS
Slide 12: Strong Payor Mix
Strong Payor Mix 2016 MFC Facility Service Revenue 2016 U.S. Healthcare System Revenue 12% 29% 34% 29% 59% 37% Private Insurance Medicare/Medicaid Other Private Insurance Medicare/Medicaid Other 12
Slide 13: Growing Demand for Healthcare
Growing Demand for Healthcare (millions) (US$ billion) 400 6,000 5,000 300 DRIVERS: National Health Expenditure 4,000 • Overall population growth Population 200 3,000 • Aging population 2,000 100 1,000 0 0 2015 2020E 2025E Under 45 years 45 to 64 years 65 years and over National Health Expenditure (
Slide 14: The U.S. Healthcare Landscape
The U.S. Healthcare Landscape Facility type Number Services MFC’s position General medicine and surgery, Acute Care Hospital Approx. 5,500 including emergency and maternity care, open 24/7 Selected elective procedures Owns 5 in conjunction with Specialty Surgical Hospital <300 physician-owned (e.g.
Slide 15: Well Resourced for Continued Growth
Well Resourced for Continued Growth 2.4x 1.6x $52.1 million Current Ratio 48.8% Debt/EBITDA (LTM) Cash and Cash Net Debt / Equivalents Equity 15 As at September 30, 2017.
Slide 16: Investment Highlights
Investment Highlights • Long-term track record of delivering stable returns to shareholders • Highly rated, high quality facilities with strong organic growth opportunities • Favorable industry consolidation trends • Resources in place to execute on growth strategy • Experienced, entrepreneurial man
Slide 17: Management Team
Management Team Robert O. Horrar Tyler C. Murphy President and Chief Executive Officer Chief Financial Officer Formerly: Community Health Systems, Humana Formerly: Tenet Healthcare, HealthSouth James D. Rolfe Jimmy Porter Chief Development Officer VP of Operations Formerly: VMG Health, Community Hea
Slide 18: To learn more, contact Craig MacPhail
To learn more, contact Craig MacPhail NATIONAL Equicom 416-586-1938 cmacphail@national.ca
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