Adapthealth Corp. · NASDAQ:AHCO
Adapthealth — Merger or Acquisition (May 2020)
21 slides from Adapthealth's merger presentation, May 26, 2020
Slide 1: Investor Presentation May 2020
Investor Presentation May 2020
Slide 2: Disclaimers and Other Important Information
Disclaimers and Other Important Information This presentation (this “Presentation”) is for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential investment in AdaptHealth Corp. (“AdaptHealth” or the “Company”) and fo
Slide 3: AdaptHealth has agreed to acquire two strategic recurring revenue supply businesses
AdaptHealth has agreed to acquire two highly strategic and complementary recurring revenue supply businesses that are expected to be significantly accretive to growth, earnings and cash flow Solara Medical Supplies, LLC (“Solara”) is the largest independent distributor of continuous glucose monitors
Slide 4: Includes full year impact of acquisitions and expected run-rate cost synergies
Includes full year impact of acquisitions and expected run-rate cost synergies
Slide 5: Transactions Advance AdaptHealth's Strategic Vision
Transactions Advance AdaptHealth’s Strategic Vision TodayPro FormaOur Goal Leading Diversified Provider of HME Best-in-class technology platform National footprint with density in attractive markets Broad portfolio with minimal competitive bidding risk Significant experience acquiring and integratin
Slide 6: Adds high quality, market leading platform assets with management talent
Adds high quality, market leading platform assets, with management talent to further scale these business units Leans into core competencies – resupply, technology advantages, payors and referral relationships, field sales Increases exposure to relevant, high-cost categories for payors, with above m
Slide 7: Solara: Leader in diabetes management and largest independent direct-to-patient CGM distributor
Leader in diabetes management and the largest independent direct-to-patient distributor of CGMs $225mm est. run-rate Revenue 40,000+ active patients 300+ employees 25+ field sales 4 completed acquisitions 2002 founded, HQ in Chula Vista, CA Market Leader in a High Growth Segment Leader in diabetes m
Slide 8: Diabetes Overview
Diabetes Overview Diabetes is the most costly chronic disease in the US, with medical costs and lost productivity reaching $327 billion annually $1 out of every $7 healthcare dollars is spent treating Diabetes Device Market CGM technology has seen rapid adoption among diabetics due to innovative and
Slide 9: Solara offers a comprehensive suite of options for diabetes management
Solara offers a comprehensive suite of options for the effective management of diabetes, including CGMs, pumps, and ancillary supplies from all manufacturers Category & Representative ProductsDescriptionTop Manufacturers Continuous Glucose Monitors Insulin Pump Therapy Other Diabetes Supplies Small
Slide 10: Solara covers the distribution market from all angles
Solara covers the distribution market from all angles with a comprehensive approach to products, services, and sales strategy Provider Refers patient to manufacturer or distributor Can refer to Solara for DME or Rx, simplifying distributor decision Referrals Manufacturer Services patient directly or
Slide 11: ActivStyle: Leading DTC supplier of incontinence and urological supplies
Leading direct-to-consumer (“DTC”) supplier of incontinence and urological supplies +$60mm est. Revenue +90%+ recurring Revenue +~65,000 active patients +900+ payor contracts +17 locations, with national distribution +1997 founded, HQ in Minneapolis, MN Market Leader in an Attractive Niche Leader in
Slide 12: Acquisitions Directly Aligned with Our Core Strengths
Acquisitions Directly Aligned with Our Core Strengths Technology Infrastructure Leverages current tech infrastructure (e.g. Brightree); enables relatively quick synergizing of complex acquisitions Fulfillment Logistics CGM is strong fit with our CPAP resupply capabilities and claims processing engin
Slide 13: Our solutions play an important role in managing chronic diseases in home
Our solutions play an important role in managing these chronic diseases in home (in $bn) Product Line PF 2019 Net Revenue less BD Estimated Long-Term Growth Rates Adapt distributes products and provides services to patients with high-cost, chronic diseases Assuming 1-2% share capture, potential to g
Slide 14: LTM Pro Forma Unique Patients Serviced and Revenue
LTM Pro Forma Unique Patients Serviced (in thousands) Revenue ($ in millions) 1,800 1,600 ActivStyleSolaraAdapt 1,710 $1,200 1 ActivStyleSolaraAdapt $1,088 1,400 1,200 1,000 800 795 850 895 1,010 1,039 1,137 1,181 $1,000 $800 $600 $529 600 480501 $400 $345 400 200 $200 $174$193 - Q4Q1Q2Q3Q4Q1Q2Q3Q4Q
Slide 15: Diabetes Diversifies Product Offerings With Scale
Adapt1PF Adapt2 Diabetes Diversifies Product 2% Other Respiratory 16% Diabetes 19% Respiratory 3 13% Offerings With Scale Diabetes Business Supply 24% HME 14% Sleep 44% Other Supply 4 24% HME 11% Sleep 34% Business Mix Now 85%+ Recurring Sale or Rental Rental 36% One-off Sale 16% Recurring Sale 47%
Slide 16: Connected Devices: Patients, Payors and Providers
Patients Payors and Providers + Simplify Health Management + Encourage Compliance + Drive Better Engagement + Improve Outcomes + Monitor Treatment Plan Effectiveness + Drive Early Interventions + Reduce Hospitalizations + Improve Outcomes Blood Pressure NIV CPAP Connected Devices CGMOximeter Scales
Slide 17: Case Study: Diabetic Patient on CGM and Sleep Therapy
Case Study: Diabetic Patient on CGM and Sleep Therapy Illustrative Diabetic Patient Needs CPAP PumpCGM Scale AdaptHealth Platform ▪ Real-time insulin levels Real-time information on sleep quality Weight fluctuation ▪ Measure the effectiveness of social and clinical interventions (i.e. diet, weight l
Slide 18: Appendix
Appendix 47 t
Slide 19: Sources and Uses of Funds; Pro Forma FDSO Calculation
Sources and Uses of Funds Pro Forma FDSO Calculation (in $mm) (in mm) Incremental TLA $240 One Equity Investment $190 Deerfield Investment $35 Solara Shareholder Equity $63 Total Sources $528 Standalone FDSO1 77.8 One Equity Partners Shares 13.8 Incremental Deerfield Shares 2.5 Solara Shares 3.9 Tot
Slide 20: Pro Forma FDSO
One Equity Partners Deerfield Mgmt. Solara Shareholders Total 1.As of 5/22/20 Pro Forma FDSO (98.1mm) is equal to current FDSO (77.8mm) as of 5/1/20 + One Equity Partners Shares (13.8mm) + Deerfield Management Shares (2.5mm) + Solara Shareholder Shares (3.9mm). Current FDSO assumes treasury stock me
Slide 21: Thank You
Thank You 47 +