Aveanna Healthcare Holdings Inc. · NASDAQ:AVAH
Aveanna Healthcare — Investor Presentation (November 2021)
38 slides from Aveanna Healthcare's investor presentation, Nov 29, 2021
Slide 1: Investor Presentation November 29, 2021
Investor Presentation November 29, 2021 Exhibit 99.1
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements This investor presentation (this "presentation" and any oral statements made in connection with this presentation are for information purposes only and do not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase an
Slide 3: Today's Presenters
YEARS IN HOME HEALTH / HEALTHCARE Today’s Presenters Rod Windley Executive Chairman Tony Strange Chief Executive Officer David Afshar Chief Financial Officer Jeff Shaner Chief Operating Officer 30+ 30+ 15+ 20+ Founded Healthfield in 1986, acquired by Gentiva Health Services in 2006 for $454 million
Slide 4: The History of Aveanna
The History of Aveanna ___________________________ 1. Includes the predecessors, Epic and PSA. 2021 11 Acquisitions1 Completed since 2017 2015 Leadership Team Joins PSA Healthcare 2017 Merger of PSA and Epic Creates Aveanna, Which We Believe is the Largest Pediatric Home Care Company 2018 Acquires P
Slide 5: Aveanna at a Glance - as of Q3 2021
Aveanna at a Glance - as of Q3 2021 By The Numbers Revenue Growth National Footprint Service Lines Skilled Private Duty Nursing Unskilled Personal Care Therapy Medical Solutions Adult Home Health & Hospice Private Duty Services LTM Q3’21 Actual Key Operating Statistics $1,687mm Revenue $184mm Adjust
Slide 6: Aveanna at a Glance - Proforma for Q4'21 M&A
Aveanna at a Glance - as of Q3 2021, Proforma for Q4’21 M&A By The Numbers Revenue Growth National Footprint Service Lines Skilled Private Duty Nursing Unskilled Personal Care Therapy Medical Solutions Adult Home Health & Hospice Private Duty Services PF LTM Q3’21A + Q4’21 M&A Key Operating Statisti
Slide 7: Our Mission, Core Values and Operating Principles
SOUR CULTURE TOUCHSTONE OUR MISSION To revolutionize the way homecare is delivered, one patient at a time. CORE VALUES Compassion Team Integrity Inclusion Trust Innovation Compliance OPERATING PRINCIPLES The Five “C”s Census Growth Clinical Outcomes Customer Satisfaction Cost Control Cash Collection
Slide 8: Our Referral and Payer Partners
Our caregivers Our care Our patients Physicians Payers Referral Sources Hospitals / Health Systems Physician Practices Facility-Based (SNF / ALF) Community-Based Payer Case Managers Our Referral and Payer Partners
Slide 9: Who We Serve
Melia and Mom Heather Valerie Brylee and Mom Marisa “I loved meeting the nurses and therapists who came to my home. They were caring, encouraging and so helpful with my recovery. Now I am independent again and feeling great after my hip replacement surgery.” “Melia’s progress has been amazing since
Slide 10: Private Duty Services Segment
Private Duty Services Segment By The Numbers Key Items Financial Highlights Key Operating Statistics(4) 77% of Consolidated Proforma Revenue Run Rate1 29% – 30% Gross Margin2 4% - 5% Organic Growth Rate3 185 Locations 22 States 29,000 Patients on Service <10 Avg. Patient Age Avg. Case Length 3-5 Yea
Slide 11: Medical Solutions Segment
Medical Solutions Segment By The Numbers Key Items Financial Highlights Key Operating Statistics Locations States Patients on Service Avg. Patient Age Avg. Case Length Growth Drivers - Clinically-specialized sales force, scaled infrastructure, new market expansion strategy, cross-sell between PDS an
Slide 12: Home Health & Hospice Segment
Home Health & Hospice Segment By The Numbers Key Items Financial Highlights Key Operating Statistics(4) Locations States Patients on Service Avg. Patient Age Avg. Case Length Growth Drivers - superior clinical outcomes and star ratings, experienced sales force, specialty programs targeting high- cos
Slide 13: Leverageable Corporate Infrastructure
Leverageable Corporate Infrastructure Aveanna Executives Compliance Clinical Accounting / Finance Information Technology RCM Payer Relations Marketing DE&I Continued Leveraging of Corporate OH Leverage core competencies in nurse recruiting, training and retention IT infrastructure including recruiti
Slide 14: Q3 2021 Summary Results and Business Update
Q3 2021 Summary Results and Business Update Lower PDS volumes and revenue due to the continuing effects of COVID-19 and a tight labor market, offset in part by continued reimbursement rate wins and strong cost control, driving improved margin percentages. YTD Q3 Adjusted EBITDA of $138m is on track
Slide 15: Q3 2021 Balance Sheet Update
Q3 2021 Balance Sheet Update AR Collections Cash Flow Liquidity Debt Service Strong Q3 liquidity position, with $122m cash on the balance sheet Undrawn revolver with $180m borrowing capacity $200m borrowing capacity for M&A under the delayed draw term loan facility New $150m AR securitization facili
Slide 16: Large, Fragmented Home Care Markets Support Sustainable Growth
Large, Fragmented Home Care Markets Support Sustainable Growth $18bn Legacy Pediatric Focus Personal Care $15.0bn Annual U.S. Healthcare Spend $4.0tn Therapy $6.0bn Enteral Nutrition $2.5bn Therapy $6.0bn Private Duty Nursing $9.5bn Hospice $19.0bn $89bn Addressable Adult Opportunity TAM in 2020 ann
Slide 17: National Providers vs. Local Competitors
National Providers vs. Local Competitors Public Peers Large Private Peers ___________________________ Source: Third party consulting report, management estimates. Local / Regional Competitors Multibillion-dollar companies Comprised of mostly Home Health and Hospice Makes up ~8% of TAM $500M – Multib
Slide 18: Industry Trends
Industry Trends Current and Future Trends Cost Savings Value-Based Care Establish risk-bearing arrangements that reward Aveanna’s scale and capabilities Well-positioned to benefit from shift to value-based care due to our scale, technology infrastructure, clinical training and compliance programs Se
Slide 19: Reimbursement Environment is Structurally Positive
Reimbursement Environment is Structurally Positive Diverse group of payers includes managed care organizations (“MCO’s”), state-based Medicaid programs, Medicare, MA plans, commercial insurance and other government payers across 30 states Over 1,500 distinct payers No single payer accounted for more
Slide 20: Sophisticated Platform to Source, Execute and Integrate Acquisitions
Sophisticated Platform to Source, Execute and Integrate Acquisitions Management team has executed more than 50 acquisitions comprising >$6bn of transaction value over last 30 years. Aveanna has completed 13 transactions1 since 2017. Management Team has Significant M&A Track Record Aveanna Acquisitio
Slide 21: Integration Management Office (IMO) Truly Differentiates
Integration Management Office (IMO) Truly Differentiates Dedicated IMO Team Integration Playbook Detailed M&A Diligence 16 people exclusively dedicated to integrating acquisitions A disciplined, phased integration approach built on “seek to understand” and “do no harm” The IMO team leads due diligen
Slide 22: Diversified, Accretive M&A Strategy
Geographic Expansion Cross-Sell of Existing Services Cost Synergies Clinical Labor Efficiencies Payer Scale & Relevance Diversification/ New Market Entry Eliminate acquired overhead Eliminate acquired overhead Improve recruitment Enhance contracting Drive enteral, therapy cross-sell Drive enteral, t
Slide 23: Methodical, Systematic Approach to Acquisition Integration
Methodical, Systematic Approach to Acquisition Integration Proven M&A playbook perfected from extensive experience and enabled by scaled technology platform Compliance Training Legal Recruiting HRIS, Payroll, General Ledger, LMS POC Device Sales EMR / Clinical, Billing Clearing- house learning Platf
Slide 24: Acquisition Strategy Update
Acquisition Strategy Update Aveanna has continued to aggressively pursue its diversified M&A strategy while maintaining a disciplined focus on ensuring that all transactions are both financially and operationally compatible with Aveanna’s existing business and operations Acquire $150m to $200m per y
Slide 25: Q4 2021 M&A
Ss) aveanna healthcare Y ComfortCare Q4 2021 M&A
Slide 26: Comfort Care Overview
Company Highlights Revenue Highlights Comfort Care Home Health and Hospice Overview __________________ A – Represents the net present value of the estimated future cash tax savings realizable as deductions to Aveanna over a 15 year period. This tax benefit principally arises as a result of the intan
Slide 27: Accredited Home Care Overview
Financial Highlights PF LTM Aug’21 (A) Company Highlights Revenue Highlights Accredited Home Care Overview A – Based on results from the last twelve months ended August 2021, the most recent period for which information is available, and based on acquisition diligence. B – $180m paid at closing, wit
Slide 28: Planned Sources and Uses of Cash for Q4 2021 M&A
Planned Sources and Uses of Cash for Q4 2021 M&A __________________ (1) $180m paid at closing, with $45m funded to escrow, pending final volume reconciliation for September, October, and November 2021. ($ in millions) Aveanna intends to fund Q4 2021 M&A with cash on the balance sheet, proceeds from
Slide 29: Aveanna Outlook
8 aveanna healthcare Aveanna Outlook
Slide 30: LTM Q3'21 Results
LTM Q3’21 Results ________________ (1) See appendix for reconciliation from actual results to ProForma M&A Revenue and Adjusted EBITDA Adjusted EBITDA (1) Revenue (1) ($ in thousands) 10.9% 11.8% Percentage margin: The information below compares actual results to proforma results as if the planned a
Slide 31: Updated 2021 Guidance and Long-term Outlook
Updated 2021 Guidance and Long-term Outlook - as of November 15, 2021 Updated Fiscal Year 2021 Guidance Revenue (1) $1,675 - $1,680 Adjusted EBITDA not less than(1) $185 Long-term Outlook (1) Excludes Q4 2021 M&A Demand for home-based services is at an all-time high Our services drive a tremendous v
Slide 32: Compelling Financial Profile
Compelling Financial Profile Historically stable gross margins of ~30-33%2 driven by improving reimbursement and control of labor costs Platform infrastructure in place to drive operating leverage and efficiencies Stable Margin Profile Revenue CAGR of 14.8% and Adj. EBITDA CAGR of 30.4% from 2018A
Slide 33: Proven Ability to Drive Robust Growth
’18A – PF LTM Q3’21 Revenue(1) ’18A – PF LTM Q3’21 Adjusted EBITDA(1) ($ in millions) Proven Ability to Drive Robust Growth ___________________________ 1. See appendix for details on PF LTM reconciliations. 9% '18-'20 CAGR 15% ‘20-’21 PF LTM Q3 CAGR 23% '18-'20 CAGR 30% ‘20-’21 PF LTM Q3 CAGR ($ in
Slide 34: Appendix
8 aveanna healthcare Appendix
Slide 35: Revenue and EBITDA Proforma Reconciliations
Revenue and EBITDA Proforma Reconciliations Revenue LTM Q3 2021 Aveanna (1) 1,686,850 M&A - Comfort Care and Accredited (2) 212,272 Proforma Revenue LTM Q3 2021 1,899,122 Adjusted EBITDA LTM Q3 2021 Aveanna (1) 183,626 M&A - Comfort Care and Accredited (2) 40,343 Proforma Adjusted EBITDA LTM Q3 2021
Slide 36: Cash and Credit Facility Proforma Reconciliations
Cash and Credit Facility Proforma Reconciliations __________________ (1) Net of approximately $15m in debt issuance costs Cash Balance Q3 End Cash Balance per Financial Statements 121,700 Proceeds from Issuance of Second Lien Term Loan (1) 400,000 Proceeds from Securitization Facility 120,000 Less S
Slide 37: Aveanna Segment Revenue – Proforma for Comfort Care and Accredited
Aveanna Segment Revenue – Proforma for Comfort Care and Accredited __________________ (1) Based on results for the three months ended August, 2021, the most recent period for which information is available from acquisition diligence. 2. Based on results for the three months ended June, 2021, the mos
Slide 38: Reconciliation of Corporate Expenses to Adjusted Corporate Expenses
Reconciliation of Corporate Expenses to Adjusted Corporate Expenses ___________________________ 1. 1-8: Please see our earnings release posted on November 15, 2021 for further description of the nature of these items
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