Slide 1: HealthStream
== HealthStream’
Slide 2: Forward-looking statements
This presentation includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for the financial performance for 2005 that involve risks and uncertainties regarding HealthStream. These statements are based upo
Slide 3: Mission: improve quality of healthcare education
To improve the quality of healthcare by improving the quality and accessibility of healthcare education.
Slide 4: HealthStream Learning Center
HealthStream Learning CenterTM Used by approximately 1 out of every 4 healthcare Professionals in acute-care Hospitals Over 26 million courses have been completed (cumulatively, as of 14 November 2005) 91% Renewal Rate (by FTEs, YTD 2005)
Slide 5: HealthStream Positioning
HealthStream Positioning Healthcare (3 » Education ao Ne Technology
Slide 6: HealthStream Target Market
HealthStream Target Market 4,900,000 Acute-Care Hospital Employees
Slide 7: HealthStream's Growth Strategy
HealthStream’s Growth Strategy 1 Expanding the Subscriber Base 2 Increasing the Value of Each Subscriber 3 Delivering Access to Subscriber Base: Adding Value to Network
Slide 8: Customer Value Proposition
Customer Value Proposition A safer organization for patient care through required regulatory training HealthStream Workforce Development Assessment, Competency, for hospital staff Curriculum Facilitating rapid adoption of new technologies for better patient outcomes
Slide 9: HealthStream Customer Hospitals
HealthStream Customer Hospitals Approximately 1,100 facilities, representing 1,130,000 fully implemented healthcare professionals
Slide 10: Novi, Michigan
@9 STANFORD q HOSPITAL & CLINICS Stanford University Medical Center TRINITY & HEALTH Novi, Michigan HCA , a. Tener, oc ts & VY BON SECOURS HEALTH SYSTEM SS Sutter Health Community Based, Not For Profi Ww YALE-NEW HAVEN HOSPITAL © HeatthStream’
Slide 11: Growth of HLC Customer Base
Growth of HLC Customer Base 1,400,000 1,200,000 1,229,000 Subscribers 1,000,000 1,130,000 Subscribers 800,000 Contracted Implemented 600,000 400,000 200,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2003 2004 2005
Slide 12: Course Completions
Course Completions 28 26,000,000 November 14, 2005 26 24 22 20 18 16 14 millions 12 10 8 6 4 1,000,000 March 20, 2002 2 0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05
Slide 13: Increasing the Value of Each Subscriber
Increasing the Value of Each Subscriber AACN Courseware Series from HealthStream • 4,300 subscriptions • $250 per user • Over 100 Customer Contracts
Slide 14: Pharmaceutical / Medical Device product training delivery
Allowing Pharmaceutical / Medical Device companies to deliver innovative product training to approximately 1,100,000 hospital-based professionals nationwide. Three easy steps: Target facilities 1 Deliver courses 2 Receive feedback 3
Slide 15: Recent Acquisition
Recent Acquisition • Offers physician, employee, and patient surveys • 29 health system customers • Survey analyses provide roadmaps for workforce development
Slide 16: Financial Strength
Financial Strength Seven Year Revenue Growth ($ millions) 30 Cash, Investments and Interest Receivable 26.7-27* 25 20.1 20 18.2 15.8 15 13.5 10 9.7 $9.9 Million No Debt 5 2.6 0 As of Sept. 30, 2005 1999 2000 2001 2002 2003 2004 2005 (projected)
Slide 17: Internet-based HealthStream Learning Center Revenues
Internet-based HealthStream Learning Center Revenues 100 68% 67% 68% 63% 65% 65% 60% 60% 59% 55% 56% 52% percent 50 50% 39% 40% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2002 2003 2004 2005
Slide 18: Revenue per Employee
Revenue per Employee $ 180 $172,000 160 140 120 100 Dollars 80 60 $52,400 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2002 2003 2004 2005
Slide 19: EBITDA ($millions)
EBITDA* ($millions) 1.5 1.2 0.739 0.572 0.676 0.5 0.074 0.017 0.297 0.018 -0.5 -0.069 -0.3 -0.6 $ Millions-1.5 -1.5 -1.7 -2.5 -2.3 -2.5 -2.7 -3.5 -3.1 -3.1 -4.1 -4.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2002 2003 2004 2005 *Excluding one-time gain and cumulative effect of ch
Slide 20: Net Income
Net Income 1 $554,000 (1) (3) $ Millions * (5) $(4,381,000) (7) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2002 2003 2004 2005 * Excludes $5 million charge for change in accounting principle for goodwill.
Slide 21: HealthStream's Management Team
HealthStream’s Management Team Robert A. Frist Arthur E. Newman Chief Executive Officer & Chief Financial Officer & Chairman of the Board Senior Vice President 16 years 6 years Fred Perner Susan A. Brownie Senior Vice President Senior Vice President 5 years 6 years
Slide 22: Independent Board of Directors
Independent Board of Directors Years of Service Jeffrey McLaren Safer Sleep 16 years James Daniell, M.D. Centennial Medical Center 10 years Thompson S. Dent Med-Tel International 10 years Frank Gordon Crofton Capital 2 years Linda Rebrovick Dell Computer Corporation 3 years William Stead, M.D. Vande
Slide 23: Forward-looking statements
This presentation includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for the financial performance for 2005 that involve risks and uncertainties regarding HealthStream. These statements are based upo