American Dental Partners — Q1 2011 Earnings Presentation
14 slides from American Dental Partners's earnings presentation, Apr 27, 2011
Slide 1: First Quarter 2011 Earnings Conference Call
Exhibit 99.2 First Quarter 2011 Earnings Conference Call April 28, 2011
Slide 2: Introductory Comments
Introductory Comments “Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of the historical information contained in this press release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may i
Slide 3: Highlights
Highlights • Financial results for 1Q11 vs. 1Q10: Net revenue +4% Earnings from operations +21% Net earnings +62% • Completed two in-market acquisitions • Completed one pediatric Medicaid de novo 3
Slide 4: Patient Revenue of Affiliated Practices
Patient Revenue of Affiliated Practices (a) $117.6 million vs. $110.8 million +6.1% 4% Same Market Growth • +1.7% same market growth 2% • +1.3% same market excluding 0% 1Q10 2Q10 3Q10 4Q10 1Q11 acquisitions growth -2% • +0.7% same facility growth -4% Same Facility Development Acquisitions 6% Compone
Slide 5: Income Statement
Income Statement (thousands, except per share amts) Q1 2011 2010 Change Comments Net revenue $ 74,822 $ 71,854 4% Cincinnati Dental (6/10) platform acquisition Operating expenses: Salaries and benefits 29,248 29,602 (211) b.p. Arizona Tooth Doctor (105bp) Lab fees and dental supplies 11,579 11,068 7
Slide 6: Cash Flow
Cash Flow (thousands) 1Q11 1Q10 Operating activities Cash flow from operating activities Patient receivable DSO @ 3/31/31 of Net income and non-cash items $ 11,614 $ 8,529 25 vs DSO @ 12/31/10 of 26 Working capital items 1,918 (830) Cash flow from operating activities 13,532 7,699 Maintenance capita
Slide 7: Capitalization
Capitalization ($ millions) Leverage • $93 million debt Debt to Total Capitalization • 1.8x debt/EBITDA (bank 34% 36% 35% 34% 31% compliance calculation) $300 • $61 million available for borrowing under credit facility (bank compliance calculation) $200 $100 $0 Mar '10 Jun '10 Sep '10 Dec '10 Mar '1
Slide 8: Diluted Earnings per Share
Diluted Earnings per Share (a) $1.50 TTM PE(b) Diluted Reported EPS $0.77 18x Diluted non-GAAP EPS (a) $1.16 12x $1.25 +51% -33% } $1.00 $0.75 +56% $0.50 $0.25 }+42% }+64% $0.00 2010 3 mos '10 3 mos '11 Reported EPS After-tax Amortization Expense (a) See Appendix for reconciliation of non-GAAP items
Slide 9: Return on Market Value
Return on Market Value (millions, except per share amount) 3 Months 2010 Mar '10 Mar '11 TTM Cash flow from operations $ 36.3 $ 7.7 $ 13.5 $ 42.1 Maintenance capital expenditures 4.7 0.8 1.9 $ 5.8 Free cash flow $ 31.6 $ 6.9 $ 11.6 $ 36.3 Diluted shares outstanding 15.8 Share price $ 13.50 Market va
Slide 10: Operating Comments
Operating Comments • Growth trends are encouraging: Second consecutive quarter of increased provider hours Second quarter of increased real productivity per hour Same facility growth was positive after 2010 quarters all negative • Pediatric Medicaid dental groups: Arizona: 1Q11 earnings increase aft
Slide 11: Appendix
Appendix American — enor | : 4 F Au — | - Pa . me ~ N
Slide 12: Appendix: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures • This presentation includes non-GAAP financial measures. In accordance with the requirements of Regulation G of the Securities and Exchange Commission, please see the attached financial tables for a presentation of the most comparable GAAP measures, the reconcil
Slide 13: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation (thousands, except per share amt) Q1 2010 2010 2009 Net earnings (as reported) $ 10,339 $ 3,798 $ 2,345 Add: Write-off of expenses associated with debt refinancing, net of tax (a) 370 - - Add: Expenses associated with Cincinnati Dental Services acquisition, net of tax (a)
Slide 14: EGG
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