American Caresource Holdings Inc
American Caresource — IPO Roadshow (October 2015)
28 slides from American Caresource's IPO roadshow presentation, Oct 22, 2015
Slide 1: Investor Presentation October 2015
Investor Presentation October 2015 American CareSource Holdings, Inc.
Slide 2: Safe Harbor Statement & Free Writing Prospectus
2 Safe Harbor Statement & Free Writing Prospectus This free writing prospectus contains a presentation relating to the proposed public offering of common stock of American CareSource Holdings, Inc . (the “Company," "we" or "us") and should be read together with the preliminary prospectus dated Octob
Slide 3: Offering Summary
3 Offering Summary Issuer American CareSource Holdings, Inc. Listing NASDAQ Capital Market: GNOW Expected Offering Size Approx. $13,000,000 (100% Primary) Over - allotment 15% (100% Primary) Use of Proceeds Funding of four - location Medac Asset Acquisition, opening of additional urgent and primary
Slide 4: Presenters
4 Presenters John Pappajohn – Chairman and Acting CEO o Over 50 years of corporate finance for growing healthcare companies o Completed over 50 public financing projects Norman Winland – President & COO o 23 years in the urgent care industry o Co - Founder of CareNow , 24 centers in Dallas/Ft. Worth
Slide 5: John Pappajohn Past Healthcare Rollups
5 John Pappajohn Past Healthcare Rollups Radiologix (formerly AMEX:RGX) • Co - founded company in April 1996 • Leader in radiology practice and imaging center management • $36 million IPO with Smith Barney (November 1997) • Purchased eight physician groups and 60 imaging centers at IPO closing • Gre
Slide 6: Urgent and primary care brand of American CareSource Holdings
6 Urgent and primary care brand of American CareSource Holdings, Inc .
Slide 7: Executive Summary
7 Executive Summary Urgent Care Business • Owner and operator of convenient, affordable, and comprehensive medical care centers • Care for busy families and employers • Like going to the “store” for health care • Quality care from great doctors & comfortable facilities • Delivered every day, evening
Slide 8: The Opportunity
8 The Opportunity Publicly - traded, Pure - Play Urgent Care Consolidator • Plans to Exit the Legacy Business Expansive, Fragmented, and Growing Industry • Approximately 9,000 Urgent Care Centers in U.S. in 2013 • 71% of 2012 Owners owned 1 - 2 centers Planned Aggressive Growth Strategy • 90 Centers
Slide 9: Model Clinic Financial Profile
9 Model Clinic Financial Profile Model Clinic P&L Net Revenue $ 1,403,000 Fixed Costs (salaries, wages and rent) (743,000) Other Operating Expense (338,000) EBITDA $ 323,000 Profit Margin 23% Key Assumptions : • 33 patients per day • Clinic Open 362 days per year • Net Reimbursement Rate of $ 118 pe
Slide 10: Attractive, Scalable Model
10 Attractive, Scalable Model* Year Number of Centers Per - Center EBITDA Total Center - Level EBITDA Corporate Overhead Total EBITDA 2015 1 16 $80,750 $1,292,000 $7,725,000 ($6,765,000) 2016 2 48 $242,250 $11,628,000 $9,037,000 $2,591,000 2017 3 90 $323,000 $ 29,070,000 $10,051,000 $19,019,000 Note
Slide 11: Expansive, Fragmented, & Growing Industry
11 Expansive, Fragmented, & Growing Industry • Over 9,000 centers in 2013, with approximately 12,000 projected by 2018 • In 2013, the four largest operators accounted for 1% of industry revenue Compound Annual Growth Rate of Revenue of 6.3% since 2003 • In 2012, 71% of centers are owned by operators
Slide 12: Retail Healthcare Delivery Advantages
12 Retail Healthcare Delivery Advantages Over the Emergency Room • Shorter Wait Times • Conveniently Located • More Inviting and Comfortable Environment • More Affordable *90 % of patients wait less than 30 minutes to see a physician Advantages Over Traditional Primary Care Physician • Immediate Acc
Slide 13: Our Locations
13 Our Locations East & Southeast Region 14 Convenient Locations * Georgia – 3 Alabama – 3 Florida – 2 Northern Virginia – 2 North Carolina – 4* *Includes Medac Asset Acquisition, c losing of which is not a condition to the closing of this offering. We cannot assure you that the Medac Asset Acquisit
Slide 14: Locally-Clustered Clinics
14 Locally - Clustered Clinics Atlanta, Georgia Birmingham, Alabama • Clustering promotes staffing efficiencies • Efficiencies of scale in marketing are achieved • Clustering accomplished through de novo development
Slide 15: Clinic Overview
15 Clinic Overview Location Acquired Size (sf) # Exam Rooms Rent Building Type Locust Grove, GA May - 14 6,430 13 $ 8,811 Medical Office Bldg Decatur, GA May - 14 5,730 9 $ 9,146 Stand Alone Alpharetta, GA Oct - 14 2,529 7 $ 6,166 In - Line Strip Hueytown, AL Sep - 14 5,885 12 $ 4,845 End - Cap Stri
Slide 16: Our Services and Customers
16 Our Services and Customers 70% 10% 20% Service Mix Urgent Care Employer - Occupational Medicine Basic Primary Care 70% 5% 12% 12% 1% Patient Mix Insured Patients Self-Pay, Uninsured Employer - Occupational Medicine Medicare Blue Cross Blue Shield is the dominant payor in our markets
Slide 17: Aggressive Growth Strategy
17 Aggressive Growth Strategy Year Centers Added Total Centers 2015 6 16 2016 32 48 2017 42 90 Number of Projected Centers Growth Strategy: • Growth by Acquisition is primary • Growth by New Center (De Novo ) is secondary o Fill - in cluster strategy of acquired markets • Growth by Organic Same Stor
Slide 18: Continued Growth by Acquisition
18 Continued Growth by Acquisition Target Acquisition Profile • General : We pursue profitable 1 - 4 site clinic chains in the East and Southeast • Financial Profile and Pricing: • Per - Site Revenue : $1.0 - $1.5 million • 10 - 15% EBITDA margins • Purchase Price Multiples in 4X - 5X EBITDA range •
Slide 19: Medac Urgent Care
19 Medac Urgent Care Wilmington, NC - 4 Locations - 30 years in market Investment Highlights (12 Months ended 6/30/15, Unaudited) Revenue: $9.2 million EBITDA: $1.3 million Purchase Price: Cash: $5.0 million Note: $0.6 million $5.6 million Purchase Multiple: 4.3X EBITDA *Closing of Medac Asset Acqui
Slide 20: Acquisition Pipeline and Lead Sourcing
20 Acquisition Pipeline and Lead Sourcing Pipeline • Various stages of discussion with several owners Lead Sourcing • Extensive broker/banker and industry relationships • Trade shows such as UCAOA • Unique offering structure with public equity
Slide 21: De Novo Strategy
21 De Novo Strategy Site Selection • Identify complimentary locations in existing markets • Industry leader in site selection on our team • Access to an e xtensive database of urgent care operators • Numerous sites have been targeted Target Retail Space • End cap strip mall locations • Free standing
Slide 22: De Novo Financial Profile
22 De Novo Financial Profile Projected Financial Profile Capital Expenditure $350,000* Working Capital $200,000 Time to Break Even ~1 2 Months Per De Novo Exit Contribution $2.65 million ROI 482% Key Assumptions : • 3,500 – 4,500 square feet • 6 exam rooms • Exit value equal to 10X EBITDA of $320,00
Slide 23: Same Store Organic Growth: Rebranding
23 Renderings of post-rebranding signage, which we intend to use at certain of our GoNow Doctors locations. Same Store Organic Growth • Short, memorable, retail name • Busy families want convenient care • Like going to the “store” for healthcare • Communicates immediate access to care, no appointmen
Slide 24: Same Store Organic Growth
24 Same Store Organic Growth Implement marketing & advertising • 23% Projected patient growth for existing 10 centers Broaden service offering • Increase occupational medicine patients • Increase self - pay patients with simplified pricing • Expand hours and days open at select centers Increase insu
Slide 25: Marketing & Advertising Strategy
25 Marketing & Advertising Strategy Who We Target • Mother of an insured household with school - age children. • Busy suburban families where convenience is the priority. Tools We Use • Grass roots advertising, billboards, radio, and print advertising • Online SEO marketing & social media • Expert d
Slide 26: Selected Financials
26 Selected Financials All data in ($000’s) Balance Sheet Data June 30, 2015 Cash $491 Long - Term Debt 8,581 Working Capital (7,201) Shareholders’ Equity $(2,647) 1 2015 figures presented on a pro forma basis, including the effects of the Medac Asset Acquisition. 2 The first and fourth quarters are
Slide 27: Capital Structure
27 Capital Structure As of 6/30/2015 Shares Outstanding % of Total Company Stock, Issued and Outstanding 6,902,277 69.9% Equity Awards - Stock Options 1, 2 890,433 9.0% Warrants 3 2,082,222 21.1% Fully - Diluted Shares Outstanding 4 9,874,932 100.0% 1 Weighted average exercise price of $4.07. 2 Excl
Slide 28: Summary
28 Summary • Publicly - traded pure - play urgent care company • Urgent care industry is ripe for consolidation • By 2017, we plan to have built or acquired 90 clinics • Highly attractive arbitrage opportunity • Highly experienced board and management team
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