Infusystems Holdings, Inc. · AMEX:INFU
Infusystems — InfuSystem Holdings — Investor Presentation (August 2013)
45 slides from Infusystems's investor presentation, Aug 29, 2013
Slide 1: Post Shareholders Meeting
InfuSystem Holdings, Inc. Post Shareholders Meeting August 29, 2013 Eric K. Steen, CEO Jonathan P. Foster, CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for InfuSystem Holdings, Inc.’s (“InfuSystem”, “INFU”, “the Company”, “We”) business and operations that involve a number of risks and uncertain
Slide 3: Positioned for Growth
Positioned for Growth infuSystem NFUSION MADE EASY.
Slide 4: Positioned For Growth
Positioned For Growth Market Trends InfuSystem is uniquely positioned to take advantage of market trends Strategy Transformational strategy is developed and being implemented Leadership Leadership can now focus on running a business for first time in over a year
Slide 5: InfuSystem Patient Population is Extension of Infusion Therapy From Clinic to Home
InfuSystem Patient Population is Extension of Infusion Therapy From Clinic to Home Discharge Planner HIT HHA DME IHSHC Home Infusion InfuSystem
Slide 6: Extension of Clinic to Home
Extension of Clinic to Home Ambulatory Infusion Some drugs more effective when infused continuously Patient Satisfaction Multiple Therapies - Oncology, Post Surgical Pain, Special Disease States Payor Contracts Over 250 Payor Contracts Private Pay & Government Commercial Payors reimburse more therap
Slide 7: Population Growth, Age and Growth of Cancers
Population Growth, Age and Growth of Cancers Population Stats Aging Population At-risk lifestyles persist (red, processed meats). Colo-rectal 3rd most common in US and Worldwide U.S. Population 316,518,80
Slide 8: Infu Oncology Patients
Infu Oncology Patients Esophogeal Head and Neck Pancreas Stomach Colo-Rectal * A.D.A.M. Medical Encyclopedia CR Contrib. Factors* Are older than 60 Eat a lot of red or processed meats Have colo-rectal polyps Have a family history of colon cancer Have a personal history of breast cancer Smoking and A
Slide 9: InfuSystem Cancer Patients
InfuSystem Cancer Patients 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Pancreas 343% Esophogeal Head and Neck 4% InfuSystem Patient Statistics CR Grew by 16% Pancreatic +343% Stomach 61% Colo-Rectal 16%
Slide 10: Revenue Diversity
Revenue Diversity 2009 Revenues Rentals - Colorectal Cancer Rentals - Pain Management Sales - DP Rentals - Other Cancers Rentals - Hospitals/Home Care Rentals - Infectious Disease Rentals - Service & Repair
Slide 11: Revenue Diversity
Revenue Diversity 2009 Revenues 2012 Revenues Rentals - Colorectal Cancer Rentals - Pain Management Sales - DP Rentals - Other Cancers Rentals - Hospitals/Home Care Rentals - Infectious Disease Rentals - Service & Repair
Slide 12: Increasing Therapy Offerings to Payors
Increasing Therapy Offerings to Payors Payor Oncology Infectious Disease Surgery Special Disease States
Slide 13: Continuous Peripheral Nerve Block at Home
Continuous Peripheral Nerve Block at Home There are 5.69M orthopedic surgeries annual. ~50% of these patients are potential candidates for pain management with a continuous peripheral nerve block (CPNB) Growth of CPNB Growth of CPNB at Home HCAHPS (H CAPS): Pain Scores affect Hospital Reimbursement.
Slide 14: Total Home Infusion Market
Total Home Infusion Market $9B - $11B Home Infusion Market Home Infusion Lower cost than clinical setting Increasing Importance to lower cost in Affordable Care Act future Lowest cost and highest patient satisfaction site for extension of infusion therapy is the home InfuSystem Niche Therapy started
Slide 15: Biomedical Rentals, Service and Repair
Biomedical Rentals, Service and Repair Pump Rentals, Asset Management and Sales Direct Sales of Device and Supplies Pump Broker - ability to acquire CAP EX in cost effective way Asset Management, Rental and Lease Preventative Maint. Annual Pump Recertification Preventative Maintenance Warranty Repai
Slide 16: Offering Infusion to All Points of Care
Offering Infusion to All Points of Care Provider Home Infusion Long Term Care Emergency Services Acute Care Oncology
Slide 17: Full Line Multi-Therapy & Multi-Point Offering
Full Line Multi-Therapy & Multi-Point Offering Payor Patient Provider Partners Device & Pharma Manufacturer, Distributor, GPO, ACO
Slide 18: What a Difference a Year Makes
What a Difference a Year Makes Financial Position New Team in place IT improvements begun New Product launches - Kits, Smart Pumps, Post Surgical Pain
Slide 19: IT and Automation
IT and Automation Shift into High Gear More insurance billings with existing staff Greater revenue per employee Road Map completed , New iPad features, Automation of initial internal processes
Slide 20: Connectivity through eMAR, Web Portal and System Interface
Connectivity through eMAR , Web Portal and System Interface
Slide 21: Bring the Pumps to the People in Large Markets
Bring the Pumps to the People in Large Markets Largest Markets #1 New York #2 Los Angeles #3 Houston + Dallas #4 Atlanta + Miami #5 Chicago
Slide 22: For Faster Turnaround and Improved Utilization
For Faster Turnaround and Improved Utilization Los Angeles Area Service Center Toronto Canada Service Center Madison Heights Service Center Kansas City Service Center Future New Jersey Service Center Future Atlanta Service Center Opening Soon Houston Service Center InfuSystem Distribution New Housto
Slide 23: Where Does This Get INFU in Three Years?
Where Does This Get INFU in Three Years ? Aging Population and Cancer growth More Patients Home IV , commercial pay recognizing value, CMS competitive bidding Peripheral Nerve Block and Smart Pump Growth Revenue Growth in High Single Digits
Slide 24: Next Up - Action Items
Next Up - Action Items IT Implementation - web portal, eMar, interfaces, automation of insurance processes Product and service line expansion Geographic Expansion Productivity measures implemented Evaluating depreciable life Utilization metrics and improvement
Slide 25: Positioned For Growth
Positioned For Growth Market Trends InfuSystem is uniquely positioned to take advantage of market trends Strategy Transformational strategy is developed and being implemented Leadership Leadership can now focus on running a business for first time in over a year
Slide 26: Financial Review
Financial Review CinfuSystem’ INFUSION MADE EASY.
Slide 27: Ambulatory Rental Pump Fleet
Ambulatory Rental Pump Fleet n With over 26,000+ pumps in TPP Rental Fleet, InfuSystem maintains the largest fleet of ambulatory infusion pumps in the industry n DPP Rental Fleet has over 20,000 pumps n The Company has a complete inventory of virtually every model pump from every leading manufacture
Slide 28: Competitive Bidding Overview
Competitive Bidding Overview Competitive Bidding Overview n InfuSystem was not involved in Round 1 nor Round 2 of Competitive Bidding n CMS announced a Recompete of Round 1 competitive bidding on April 17th Š External infusion pumps/supplies added as a new product category Š A supplier must bid on a
Slide 29: Summary Income Statement
Summary Income Statement ($000’s) FY2009 FY2010 FY2011 FY2012 6 Mo 2012 6 Mo 2013 Net revenues: Rentals $46,795 $53,471 $25,878 $27,061 Product sales $7,842 $5,357 $2,542 $2,302 Net revenues $38,964 $47,229 $54,637 $58,828 $28,420 $29,363 Cost of revenues: Product, service and supply costs $6,200 $7
Slide 30: Revenue Diversity
Revenue Diversity 2009 Revenues 0% 1% 0% 2% 1% 26% 70% Rentals - Colorectal Cancer Rentals - Other Cancers Rentals - Infectious Disease Rentals - Pain Management Rentals - Hospitals/Home Care Rentals - Service & Repair Sales - DP
Slide 31: Revenue Diversity
Revenue Diversity 2009 Revenues 0% 1% 0% 2% 1% 26% 70% 2012 Revenues 4% 9% 13% 0% 0% 51% 23% Rentals - Colorectal Cancer Rentals - Other Cancers Rentals - Infectious Disease Rentals - Pain Management Rentals - Hospitals/Home Care Rentals - Service & Repair Sales - DP
Slide 32: Summary Balance Sheet
Summary Balance Sheet ($000’s) 12/31/09 12/31/10 12/31/11 12/31/12 3/31/13 6/30/13 ASSETS Current Assets: Cash and cash equivalents $7,750 $5,014 $799 $2,326 $472 $102 Account receivable - total, net of allowance $5,517 $6,679 $7,448 $8,511 $9,570 $9,440 Inventory $925 $1,699 $1,309 $1,339 $1,378 $1
Slide 33: Cash Flow
Cash Flow ($000’s) FY2009 FY2010 FY2011 FY2012 6 Mo 2012 6 Mo 2013 OPERATING ACTIVITIES Net Income $774 $(1,852) $(45,443) $(1,489) Adjustments: Provision for doubtful accounts $4,006 $4,515 $4,099 $5,251 Depreciation $4,122 $5,357 $6,386 $5,668 Loss on disposal of pumps $342 $994 $1,731 $237 Amorti
Slide 34: Take Away
Take Away CinfuSystem’ INFUSION MADE EASY.
Slide 35: Positioned For Growth
Positioned For Growth Market Trends InfuSystem is uniquely positioned to take advantage of market trends Strategy Transformational strategy is developed and being implemented Leadership Leadership can now focus on running a business for first time in over a year
Slide 36: Thank You for Your Interest!
Thank You for Your Interest! IR Contact Info: The Dilenschneider Group 212-922-0900 Rob Swadosh, rswadosh@dgi-nyc.com Patrick Malone, pmalone@dgi-nyc.com
Slide 37: Appendix: INFU Overview
Appendix: INFU Overview CinfuSystem’ INFUSION MADE EASY.
Slide 38: Third-Party Payor Business Overview
Third-Party Payor Business Overview With a national footprint and at four times the size of its largest competitor, InfuSystem is the leading provider of ambulatory infusion pumps to oncologists and their patients n InfuSystem provides ambulatory infusion pumps and related supplies to outpatient onc
Slide 39: Key Competitive Advantages
Key Competitive Advantages n “In-network” in over 250+ health plans covering approx. 222mm lives n National footprint with over 1,600+ active healthcare facilities n 20+ years in Durable Medical Equipment (“DME”) billing and licensing n Full-service billing capabilities: paper, fax, electronic medic
Slide 40: Payor & Customer Mix
Payor & Customer Mix InfuSystem has strong relationships with the largest third-party payors and the leading cancer institutions n High diversification of providers and payors Š No single healthcare provider represents more than 7% of Third-Party Payor revenues Š Strong payor mix among Medicare, oth
Slide 41: Competitive Landscape
Competitive Landscape InfuSystem measures its market share not in terms of the number of practices, but the pool of addressable patients The breakdown of the Company’s current market share shows that despite being the predominant national player in continuous infusion, there is ample room for organi
Slide 42: Direct Payor Business Model
Direct Payor Business Model InfuSystem’s Direct Payor business is focused primarily on the sale, rental, financing and accompanying service of movable medical equipment to hospitals and alternate care sites who pay InfuSystem directly - no third-party reimbursement Founded in 1998 and headquartered
Slide 43: Compelling Value Proposition
Compelling Value Proposition Complementary core competencies allow InfuSystem to offer superior selection, flexibility, pricing and services One-Stop Shopping Solution One-stop shopping solution for ambulatory large volume pump and other movable medical devices Sales Rentals Supplies Service Financi
Slide 44: Direct Payor Offerings
Direct Payor Offerings Leading Provider of New and Pre-Owned Pumps InfuSystem offers new pumps from top brands Broker-dealer trading desk Web Portal In addition, over 70 models and versions of pre-owned pumps are offered Pre-owned pumps are re-built and certified by in-house biomedical technicians t
Slide 45: Medical Equipment Service & Repair
Medical Equipment Service & Repair In addition to supporting and repairing InfuSystem’s in-house fleet, the Company certifies, recalibrates, repairs and services a variety of infusion pumps Pumps require scheduled maintenance and calibration in accordance with manufacturer’s specifications and regul
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