Viemed Healthcare, Inc. · NASDAQ:VMD
Viemed Healthcare — Investor Presentation (November 2020)
23 slides from Viemed Healthcare's investor presentation, Nov 6, 2020
Slide 1: Leading the Healthcare Industry in Home Respiratory Care
LEADING THE HEALTHCARE INDUSTRY IN HOME RESPIRATORY CARE IR PRESENTATION / NOVEMBER 2020
Slide 2: Disclaimers and Other Important Information
DISCLAIMERS Disclaimers and Other Important Information This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of November 2020. It is information in a summary form and does not purport to be complete. The data contained herein is derived from various internal an
Slide 3: Viemed at a Glance
VIEMED AT A GLANCE Largest independent specialized provider of ventilation (NIV) in the US home respiratory health care industry Highly profitable with a 44% CAGR in revenue growth since 2010 Service offering includes 24x7 in home respiratory care including specialized respiratory therapists and med
Slide 4: Our Journey
SLEEP MANAGEMENT FOUNDED 2006 Annual Revenues: $0.24M USD | Respiratory DME specializing in CPAPS & Oxygen HSD 20 10 Annual Revenues: $3.58M USD | Home Sleep Delivered – Specializing in home sleep tests VENTILATOR EXPANSION 20 12 Annual Revenues: $4.60M USD | Non Invasive ventilator introduced to ma
Slide 5: Key Investment Consideration
KEY INVESTMENT CONSIDERATION Specialized US based respiratory healthcare services company • Focused on Chronic Obstructive Pulmonary Disease (COPD) and growing aging population • $50 billion of annual healthcare cost in the U.S. spent on COPD Significant Market Growth Opportunity • 10,000 baby boome
Slide 6: Current State of the Industry
CURRENT STATE OF THE INDUSTRY At the age of 65, patients qualify for Medicare The Medicare population is growing, with 60 million beneficiaries in 2018 Expenditures are expected to and 69 million beneficiaries by 2023 grow at a 6% CAGR from $58.3 billion in 2019 to $98.4 billion in 2028 6
Slide 7: NIV Market Penetration
NIV MARKET PENETRATION 25 Million (estimated) people in the U.S. have COPD 2,500,000 or 10% have stage 4 COPD 11% 69% 1,250,000 or 50% of those with COPD lead to chronic respiratory failure becoming candidates for our therapy VIEMED IS THIRD MARKET SHARE HELD BY LARGEST INDEPENDENT PROVIDER TOP 10 P
Slide 8: The Viemed Solution
THE VIEMED SOLUTION Registered Respiratory Therapists (RT’s) assigned to each patient and on call 24X7 • All RT's are COPD educators • Assess and service medical equipment • Overseen by pulmonologists on staff Each patient is given a customized in-home care plan based off Activities of Daily Living
Slide 9: A Dedicated 24/7 Respiratory Therapist
A DEDICATED 24/7 RESPIRATORY THERAPIST comes with all our VieMed products. VENTILATORS PERCUSSION VESTS COUGH ASSISTS OXYGEN THERAPY SLEEP THERAPY 9
Slide 10: Proven Growth Strategy
PROVEN GROWTH STRATEGY Location selection • Based on high COPD rates • Target hospitals and facilities with high readmission rates and near existing service area • Leverage existing relationships and operate on the outskirts of large metropolitan areas Unique lean deployment model • No costly retail
Slide 11: Results of Third Party Study: Impact of NIV
RESULTS OF THIRD PARTY STUDY IMPACT OF NIV ON NIV MORTALITY & HEALTH COST STUDY ANALYSIS OUTCOMES 12% 16% Absolute reduction in mortality Absolute reduction in mortality after 12 months (NNT=8) after 6 months (NNT=6) 38% 3x Immediate reduction in risk of Likelihood of untreated patients to death wit
Slide 12: Strategic Growth Plan
VIEMED STRATEGIC GROWTH PLAN INCLUDES IN-STATE EXPANSION AS WELL AS NEW STATE TERRITORIES AK WA ME ND VT MT MN NH OR NY MARI WI CT ID SD MI WY PA NJ IA NE OH MD NV IL IN UT WV VA CO KY CA KS MO NC TN SC OK AZ AR NM GA MS AL LA TX HI FL Licensed & Medicare approved in 50 states 12
Slide 13: Technology & Marketing Initiatives
TECHNOLOGY & MARKETING INTIATIVES VieMed Connect TeleMed VieMed Engage Respiratory Therapist App Vision of becoming a leading healthcare technology company coupled with high touch human interaction in the home Goal is to improve quality of life and length of time patients spend with loved ones Incre
Slide 14: Objectives for Next Months
OBJECTIVES FOR NEXT 24 MONTHS Grow active patient base while entering new target states through geographic expansion Roll out results of the third-party KPMG & Harvard Medical School study to referral sources and payors in order to save more lives and increase penetration Diversify payor base – spec
Slide 15: Financials
FINANCIALS OO6® VieMed
Slide 16: COVID-19 Update
COVID -19 UPDATE • Viemed updated protocols to limit non-essential visits to existing patients in order to prevent any spread of the COVID-19 virus • Serving as a resource to States and health systems through equipment procurement and respiratory therapists (created education videos on YouTube where
Slide 17: Revenue Model
REVENUE MODEL Monthly rental fee – reimbursed by insurance and covered by Medicare Uncapped rental contract Average monthly client revenue is ~US$950 (all providers paid same rate by Medicare) Pricing includes equipment rental, RT service, supplies and maintenance of equipment 17
Slide 18: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE $32,000,000 $31.9M $110,000,000 $30,000,000 $100.1M $100,000,000 $28,000,000 $26,000,000 $90,000,000 $24,000,000 $80.3M $80,000,000 $22,000,000 $19M $20,000,000 $70,000,000 $16.5M $18,000,000 $60,000,000 $58.4M $16,000,000 $14,000,000 $50,000,000 $41.3M $12,000,000 $
Slide 19: Capital Markets Profile
CAPITAL MARKETS PROFILE 39,107,640 & ~$32.4 ~$7.2 502 13% 41,155,668 Shares outstanding Cash on hand in USD* Total LT debt in USD * Total staff Inside ownership & fully diluted * As of September 30, 2020 NASDAQ: VMD; TSX: VMD.TO Market cap as of October 31, 2020: ~$325M (USD) Stock price as of Octob
Slide 20: Corporate Structure
CORPORATE STRUCTURE Viemed HealthCare Inc. (Canadian Parent Company Listed on NASDAQ & TSX) Viemed Inc. (Delaware Corporation/US Subsidiary) Sleep Management, Home Sleep Delivered, Viemed Clinical Services, LLC (US Subsidiary- Louisiana) LLC (US Subsidiary-Louisiana) LLC (US Subsidiary-Louisiana) 20
Slide 21: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS Casey Hoyt Todd Zehnder Randy Dobbs Chief Executive Officer Chief Operating Officer Chairman of the Board and Director and Director and Independent Director Mike Moore Dr William Frazier Nitin Kaushal President Chief Medical Officer Independent Director and Direc
Slide 22: Thank you
Thank you Glen Akselrod Bristol Capital IR glen@bristolir.com Tel: 905 - 326 - 1888
Slide 23: Appendix: Reconciliation of Net Revenue and Adjusted EBITDA
Appendix Fiscal Year Ended December 31 2013 2014 2015 2016 2017 2018 2019 3Q '20 Reconciliation of Net Revenue(1) Revenue $ 10.2 $ 23.3 $ 36.2 $ 31.4 $ 46.4 $ 64.5 $ 80.3 $ 100.1 Bad Debt Expense (0.2) (0.2) (0.8) (4.4) (5.1) (6.1) - - Net Revenue $ 10.0 $ 23.1 $ 35.4 $ 27.0 $ 41.3 $ 58.4 $ 80.3 $ 1
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