Liberator Medical Holdings Inc
Liberator Medical — Investor Presentation (August 2012)
16 slides from Liberator Medical's investor presentation, Aug 15, 2012
Slide 1: Company Overview
LIBERATOR, MEDICAL s 4 SUPPLY, Ine Company Overview
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain forward - looking statements. These forward - looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “projects,” “intends,” “should,” “seeks,” “estimates,” “future,” or similar expressions or by discussion of strateg
Slide 3: Company Overview
• Founded in 1999; headquartered in Stuart, Florida • Leading national direct to consumer provider of Urological, Ostomy, Mastectomy, Diabetes and other medical supplies • Markets its products through television, online and print advertising campaigns, which direct the consumer to order by phone or
Slide 4: History
History 1999 2007 2000 2011 2008 2012 4 • Liberator is founded 1999 • Liberator listed on the OTC:BB under LBMH 2007 • Medicare changes reimbursement for disposable catheters from four a month to up to 200 a month • Liberator completes three PIPE offerings for $6.8 million 2008 • Liberator grow to $
Slide 5: Financial Highlights
Financial Highlights (1) Leading Direct Marketer of Medical Supplies (US$ in millions) 5 (1) CAGR calculated from 2008 to 2011A. Financials are for fiscal year ending September 30. Revenue represents “Net Sales”. 2008 – 2011 Revenue CAGR: 76.4% 2008 – 2011 Gross Profit CAGR: 73.9%
Slide 6: Strong Recurring Revenue
Strong Recurring Revenue Historical Revenue (1) • The mix of gross recurring revenue has increased since FY 2008 from 57% of revenue to 86% of revenue driven by a significant ramp up of new customers and increased sales of catheters per customer after Medicare changed reimbursement rules • As the Co
Slide 7: Product Segments
• Disposable collection devices (bags) • Negotiated significant price reductions – competitive advantage in market with high product costs • Steady growth from pull - through co - morbidity from ads Product Segments Urological (78% of FY11 Revenue) Ostomy (14% of FY11 Revenue) Mastectomy (6% of FY11
Slide 8: #1 Supplier of Urological and Mastectomy Products
4.1% 2.8% 1.3% 1.1% 0.8% 0.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% LIBERATOR HANGER PROSTHETICS & ORTHOTICS* WRIGHT & FILIPPIS LADY GRACE STORES MEDICAL WEST PHARMACY A FITTING EXPERIENCE MASTECTOMY SHOPPE OTHER (1,173 COMPANIES) 18.6% 8.8% 5.7% 4.1% 3.9% 3.1% 55.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0
Slide 9: Customer Profile
Customer Profile 9 Medicare or Insurance Patient Primary Need Reoccurring Needs Brand Recognition Resulting in Referrals Evergreen Reorders Upselling Products • Advertising provides access to customers with disease specific lifetime medical supply needs • Intake process defines customer needs by pro
Slide 10: Growth Strategy: Continue to Focus on the Core
Growth Strategy: Continue to Focus on the Core • Continue direct - response advertising model • Explore additional product lines – New Diabetic Technology – Specialty Foley Catheter • Launch new vendor product offerings through our marketing and distribution channels • Pursue managed care and expand
Slide 11: U.S. healthcare spending and demographic trends
• The U . S . national healthcare spending is expected to increase by approximately $ 2 trillion from $ 2 . 6 trillion in 2010 to $ 4 . 6 trillion in 2020 , according to the Centers for Medicare and Medicaid Services (“CMS”) • CMS estimates that the number of Americans over the age of 65 will increa
Slide 12: Substantial Market Opportunity
Substantial Market Opportunity Products Major Manufacturers Est. Market Diagnosed Urology Supplies include both female and male catheters, urine collection devices and various related accessories Bard, Mentor, Coloplast , Cure, Hollister, Astra Tech, Rochester Medical, Rusch , Kendall and Cure $4.4
Slide 13: Sample Advertisements
13 Sample Advertisements
Slide 14: Financial Summary
14 Financial Summary • Strong balance sheet (as of 6 / 30 / 12 ) • Cash • $ 2 . 6 million of cash • $ 4 . 7 million available on a potential $ 7 . 2 million line of credit • Maximum of $ 8 . 5 million of revolving credit potential secured by accounts receivable and inventory subject to financial cov
Slide 15: Highly Experienced Management Team
Highly Experienced Management Team Name & Position Years of Relevant Experience Experience Mark Libratore Chief Executive Officer 41 • Founder of Liberator in 1999; created and executed direct - to - consumer sales model targeting seniors with chronic illnesses in need of medical supplies • Founder
Slide 16: Highly Experienced Management Team Cont.
Highly Experienced Management Team Cont. Name & Position Years of Relevant Experience Experience George Narr Chief Information Officer 16 • Responsible for all information systems at Liberator; joined in April 2010 • Previously CIO of Liberty Medical Supply until 2006; Managed a team of 100 staffed
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