Dri Healthcare Trust · TSX:DHT.U
Dri Healthcare Trust — Q1 2023 Earnings Presentation
15 slides from Dri Healthcare Trust's earnings presentation, May 12, 2023
Slide 1: Advancing Science in the Fast-Growing Pharmaceutical and Biotechnology Sector
ADVANCING SCIENCE in the Fast-Growing Pharmaceutical and Biotechnology Sector Q1 2023 Earnings Call | May 12, 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DRI Healthcare Trust (the “Trust”). The Trust is an unincorporated open-ended fund trust governed by the laws of the Province of Ontario, Canada and is externally managed by DRI Capital Inc. (“DRI Capital” or the “Manager” and together with the Trust
Slide 3: Q1 highlights
Q1 highlights 1 Execution 2 Growth 3 Returns Closed preferred Deployed $100 Declared security offering million to fund distribution of providing additional Tzield royalty $0.075 per unit capacity transaction $1.7 million in NCIB Robust and active unit buybacks pipeline 3
Slide 4: Q1 financial highlights
Q1 financial highlights $25.0 million $28.2 million $21.4 million Total Cash Receipts1 Total Income Adjusted EBITDA1 $0.49 $0.075 86% Declared Cash Distributions Adjusted Cash Earnings per Adjusted EBITDA Margin1 per Unit Unit1 1. Total Cash Receipts and Adjusted EBITDA are non-GAAP measures. Adjust
Slide 5: Delivering on our long-term objectives
Delivering on our long-term objectives At IPO Today1 2025 target2 $485 million deployed to date Revised deployment target of Capital deployment $650 – 750 million over 5 years + $850 – 900 million $76 million in milestones and options Flat to slightly growing cash Sustainable cash Declining cash cur
Slide 6: Current deployment exceeds targets
Current deployment exceeds targets ($M) 8-Mar-232 700 Additional milestones + options Milestone Actual deployment payment 600 25-Jan-23 25-Nov-22 500 30-Sep-22 400 9-Sep-22 300 30-Sep-21 20-Jul-221 28-Feb-22 200 25-Aug-21 100 0 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 Deploymen
Slide 7: Tzield royalty transactions
Tzield royalty transactions ACQUISITION FROM MACROGENICS SALE TO SANOFI 1 $100 million up front purchase price for a Sanofi announced agreement to acquire single digit royalty on Provention Bio’s Provention Bio days after DRI Healthcare’s worldwide net sales acquisition of the royalty Up to a $50 mi
Slide 8: Use of Proceeds from Tzield Sale
Use of Proceeds from Tzield Sale Special Distribution Debt Repayment Dry Powder Return capital directly to Pay down revolving Capital deployment unitholders acquisition credit facility capacity • Special cash distribution of • Outstanding amount on • Significant cash and credit $20 million revolving
Slide 9: Sustainable and efficient business model
Sustainable and efficient business model focused on cashflow % Sales of leading therapies and/or interest payments Sourcing, research New asset Total Cash & deal execution acquisitions Receipts1 Cash for Adjusted redeployment EBITDA1 Cash distributions Business model allows for continuous compoundin
Slide 10: Robust pipeline
Robust pipeline $2.0 billion in near-term opportunities Address important Provides strong Marketed by leading unmet needs with life- intellectual property biotech or biopharma changing therapies for and regulatory companies patients protection Further portfolio diversification and extension with att
Slide 11: Portfolio performance
Portfolio performance (US$ thousands) Primary Total Cash Royalty Receipts1 Therapeutic Area Marketer(s) Q1 2023 Q1 2022 % Change Q4 2022 % Change Hematology / Ophthalmology 187 - n/a 269 (30%) Ophthalmology 2,498 2,946 (15%) 2,697 (7%) Influenza 1,445 2,218 (35%) 734 97% Endocrinology 611 673 (9%) 5
Slide 12: Strong cash generation
Strong cash generation Adjusted EBITDA for the Last Twelve Months Ended March 31, 2023 ($M)1 $2.0 ($0.3) $100.3 $92.3 $6.3 $98.6 ($7.4) ($6.8) $86.1 Adjusted EBITDA Margin1 86% Adjusted Cash Earnings per Unit4 Royalty Income Total interest Income Total Income Net Change in Royalties Non-Cash Royalty
Slide 13: Well capitalized for growth
Well capitalized for growth $10.5 million1 Cash and cash equivalents Significant $30.8 million1 capacity for Royalties receivable further growth $250.0 million2 Available from credit facilities Significant capital available for deployment 1. As at March 31, 2023. 2. The Trust received $210 million i
Slide 14: Our key priorities
Our key priorities Invest in our people and build the industry leading royalty investment team People Execute on strong pipeline and operate at Execution peak performance in all aspects of our business Results Focus on long-term, sustainable growth generating strong unitholder returns 14
Slide 15: Contact Us
Contact Us Dave Levine ir@drihealthcare.com