Home Safety Tips for Winter Primary Care Pediatrics Continuity Clinic Series 2010.
Enabling Continuity of Care for Patients, From the Clinic ...
Transcript of Enabling Continuity of Care for Patients, From the Clinic ...
InvestorPresentationNOVEMBER15,2021l(NYSEAmerican:INFU)
EnablingContinuityofCareforPatients,FromtheClinictoTheirHome
Forward-LookingStatements/Non-GAAPMeasures
Forward-LookingStatements
Certainstatementscontainedinthispresentationareforward-lookingstatementswithinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended,suchasstatementsrelatingtofutureactions,businessplans,objectivesandprospects,oursharerepurchaseprogramandcapitalallocationstrategy,futureoperatingorfinancialperformanceandguidance.Thewords“believe,”“may,”“will,”“estimate,”“continue,”“anticipate,”“intend,”“should,”“plan,”“expect,”“strategy,”“future,”“likely,”variationsofsuchwords,andothersimilarexpressions,astheyrelatetotheCompany,areintendedtoidentifyforward-lookingstatements.Forward-lookingstatementsaresubjecttofactors,risksanduncertaintiesthatcouldcauseactualresultstodiffermaterially,including,butnotlimitedto,theuncertainimpactoftheCOVID-19pandemic,ourdependenceonestimatesofcollectiblerevenue,potentiallitigation,changesinthird-partyreimbursementprocesses,changesinlaw,contributionsfromacquiredbusinessesornewbusinesslines,productsorservicesandotherriskfactorsdisclosedintheCompany’smostrecentannualreportonForm10-Kand,totheextentapplicable,quarterlyreportsonForm10-Q.Allforward-lookingstatementsmadeinthispresentationspeakonlyasofthedatehereof.InfuSystemdoesnotundertakeanyobligationtoupdateanyforward-lookingstatementstoreflectfutureeventsorcircumstances,exceptasrequiredbylaw.
Non-GAAPMeasures
ThispresentationcontainsinformationpreparedinconformitywithGAAPaswellasnon-GAAPfinancialinformation.TheCompanybelievesthatthenon-GAAPfinancialmeasurespresentedinthispresentationprovideusefulinformationtotheCompany’smanagement,investorsandotherinterestedpartiesabouttheCompany’soperatingperformancebecausetheyallowthemtounderstandandcomparetheCompany’soperatingresultsduringthecurrentperiodstotheprioryearperiodsinamoreconsistentmanner.Thisnon-GAAPinformationshouldbeconsideredbythereaderinadditionto,butnotinsteadof,thefinancialstatementspreparedinaccordancewithGAAP,andsimilarlytitlednon-GAAPmeasuresmaybecalculateddifferentlybyothercompanies.TheCompanycalculatesthosenon-GAAPmeasuresbyadjustingfornonrecurringornon-coreitemsthatarenotpartofthenormalcourseofbusinessandthattheCompany’smanagementdoesnotbelievewillhavesimilarcomparableyear-over-yearitems.AreconciliationofthosemeasurestothemostdirectlycomparableGAAPmeasuresisprovidedinAppendixAofthispresentation.
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InvestmentHighlights EnterpriseValue*$372M
MarketCap*
$341MSharesOut20.6M
2020Revenue$97.4M,Up20%y/y
2021RevenueGuidance$107M–$110M
Providingbest-in-classdurablemedicalequipmentandpatientservicesfacilitatingclinic-to-homecare
$10BU.S.andCanadaHomeDMEmarket;growthdrivenbymedicalinnovation,anagingpopulation,needtomanagehealthcarecostsandincreasedpatientcomfort
Gainingmarketsharebydelivering“thelast-milesolution”forhealthcareproviders,DMEmanufacturers,patientsandhealthplans
Double-digitgrowththroughtwoprovenbusinessplatforms:DurableMedicalEquipment(DME)andIntegratedTherapyServices(ITS)
StrategytocontinueleveragingDMEandITSplatformsbyenteringnewmultibillion-dollartherapymarkets
*Market data as of November 10, 2021
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*Source:U.S.News&WorldReport,BestHospitals,July2021
Focus,ScaleandExperience
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Aleadingproviderofequipmentandserviceswitha100K+devicefleetinthe
U.S.andCanada
35-yearhistory,perfectedmodelinOncologyandnowexpandingintomultipletherapies
SevenmajorserviceareasintheU.S.andCanadanearly400employees
Nationalscale,serving15outof20tophospitalsnationwide*
Third-partypayercontractscoveringnearly95%oftheU.S.population,providingsolutions
to6,500+sitesofcare
Infrastructureandservicesaredeviceagnosticandscalabletosupportmultipletherapies
HighROIoncapitalinvestments;wepurchaseequipmentonlywhennewbusinessisbeing
onboarded,oursalesforceishighlyscalableandwehavenoR&Dexpense
TwoProvenBusinessPlatformsGrowthDrivenbyMarketShareGainsandNewTherapyOpportunities
DME$36.3M(37%)
SALESBYSEGMENT
Total2020Revenue:
$97.4million
ITS$61.1M(63%)
INTEGRATEDTHERAPYSERVICES(ITS)Facilitateoutpatientcareforpatientsrequiringtherapyutilizingdurablemedicalequipment
DURABLEMEDICALEQUIPMENT(DME)SUPPORTSERVICESEquipmentandconsumablesales/leasetohospitals,clinicsandhomeinfusionproviders
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Well-Diversified&StrategicPayerRelationshipsPercentageofCashCollectedbyPayer2020
Uninsured:0.3%
6,500+DirectPayHospitalandAlternateSiteCustomers
Hospital/AlternateSiteDirectPay:47.7%
Medicaid:1.3%
CommercialPayer:50.7%NoSinglePayerGreaterThan11.0%
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MedicalDevice
Sale/LeasetoHospitals&Clinics
SourceDevices
SupplyConsumablestoHospitals&Clinics
DeviceRepair&Maintenance
DMEPlatformTraditionalMedicalDistribution,Lower-Margin,High-TurnModel
•PumprentalsandVARsales(newdevices)Broker/tradersales(useddevices)•Biomedicalserviceandrepair
Directpayermodel:INFUispaiddirectlybythehospital/clinic/homecareprovider
DirectPayerModel
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ClinicalSupport/CaseManagement
DeviceLogistics
MedicalDevice
RevenueCycleManagement
DeviceRepair&Maintenance
ITSPlatformUniqueandScalable,High-Margin,High-ServiceModel
SupplymedicalequipmentandproprietaryconsumablesforoutpatientcareHospital,clinicianandpatientcustomerserviceThird-partypayermodel:INFUispaidbythepatient’smedicalinsuranceprovider
Third-PartyPayerModel
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CompetitiveAdvantagesSignificantBarrierstoEntryBasedonUniqueFocus,NationalScaleandEstablishedPayerNetwork
PatientWellness
PatientSafetyInfuSystemOnlineResourceistheonlypatientresourcefacilitatingtwo-way
patientandclinicalteamcommunicationtomaintainpeaceofmind.
ScalabilityOver6,500customers–completecoverageoftheU.S.andCanadaincludingsevenservicefacilities.
ClinicalCareInfuSystem24/7NursingTeamprovides
continuouspatientsupporttominimizeriskandimproveoutcomes.Ourworkflow
solutionsforcliniciansencouragebestpracticestandards.
PayerContractsParticipatingin-networkproviderwithover750healthinsuranceplanscovering95%oftheU.S.population.Quality&Compliance
ISO9001certifiedandISO13485certifiedatselectsites–seebelow.*CHAPAccredited.
BiomedicalServicesWorld-classbiomedicalservicesgroupprovidingon-siteanddepotpreventativemaintenance,repairandwarrantyserviceandphysicalinventorymanagement.
CentralizedBillingSolutionDedicatedrevenuecyclemanagementteamofexperts.
“Thepatientisatthecenterofeverythingwedo.”
*
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GrowthStrategyAddingNewHigh-MarginTherapySegments&BiomedicalServices
Oncology
Evaluation Go-to-MarketStrategy
Launch Growth/Traction Established
Highlyscalableinfrastructure
Currentlyevaluatingmultipletherapiesthroughpartnershipandacquisitionwithmultibillion-dollarTAM
Leveragerecognizedcorecompetenciestogainandsustaintherapyleadership
$97.4million2020revenue
Over$900millioncurrentrealizableopportunities
Potentialfuturetherapysegments
PainManagement
NegativePressureWoundTherapy
FutureTherapies
BiomedicalServices
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LymphedemaTherapy
HighlyScalableExistingInfrastructure
OfficesandLogistics
• FullCoverageoftheU.S.andCanada(MI,KS,CA,MA,TX,Ontario)
SalesandMarketing
• Territorieswithoverlappingcoverageandincentivefornewtherapies
• Staffingefficienciestoservicemultipletherapies
RevenueCycleTeam/CaseManagement
• Automatedsystemsandgreatlyimprovedproductivity
• Existingpayerrelationshipsareakeycompetitiveadvantage
35YearsofExperience,Know-HowandReputationforExcellence
• Criticalmasswithfocusonbest-in-classservices
• Device-andtherapy-agnosticlogistics,service,billingmodel
• Devicemanufacturerrelationshipsofferfutureopportunities
Oncology
PainManagement
NPWT
Lymphedema
FutureTherapies
FoundationBuiltInOncology:LeveragedItMultipleTimes(Pain,NPWT,Lymphedema)
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Opportunity:OncologyHomeTreatment•Largecapitalexpenseforclinicsinadditiontomaintenanceandnightlytriage•Reducedstaffavailabletohelppatientswithinfusionpumpquestionsandbilling
Solution:OutpatientTreatment•Infusiondevicesfleet,inventoriedandreadyfordistribution•Patientmaintainsqualityoflife(work,events,family,restintheirownhome)•Clinicsmaintaincontrolofpatientcareandmedication•Increasedpatientsatisfaction
Delivery:InfuSystemITS•Oncologymarketleaderwithover2,100sitesofcare•Changedparadigmofcareforpatients,providersandpayers•Mitigatesrisk,managementandmaintenanceofinfusionpumps•Reducesclinicianandstaffworkloadtoallowgreaterfocusonpatientcare•Managesmedicalbillingandreimbursementprocess•Casemanagersprovidepumpeducation,billingassistanceandadditional24/7care
ITSModel:PlatformProveninOncologyInfuSystemITSValueProposition
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ThirdQuarterFinancialResults
NetRevenue
NetIncome
AEBITDA
OpCashFlow
20212020
20212020
20212020
20212020
$26.6M
$25.1M
$5.5M
$7.6M
$5.8M
$8.4M
(1)SeeAppendixA.
$(0.4)M
$2.9M
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(1)
NineMonthsEndedFinancialResults
NetRevenue
NetIncome
AEBITDA
OpCashFlow
20212020
20212020
20212020
20212020
$75.9M
$72.7M
$17.5M
$20.1M
$14.6M
$12.7M
(1)SeeAppendixA.
$1.0M
$6.7M
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(1)
FullYearFinancialResults
NetRevenue
NetIncome
AEBITDA
OpCashFlow
20202019
20202019
20202019
20202019
$97.4M
$81.1M
$17.3M
$1.4M
$26.4M
$18.4M
$20.3M
$13.9M
(1)SeeAppendixA.
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(1)
2017A 2018A 2019A 2020A 2021E$0
$20
$40
$60
$80
$100
$120
$
$5
$10
$15
$20
$25
$30
Notes:1. 2017consolidatedrevenueshavebeenadjustedtoreflecttheeffectoftheadoptionofASC606in2018.2. SeeAppendixA.
Revenue($Millions)
FinancialTrend&Current2021Guidance
AnnualNetRevenueAnnualAEBITDA Q3YTDNetRevenueQ3YTDAEBITDA
AEBITD
A($M
illions)
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NetRevenues(1)&AEBITDA(2)
$65.5 $67.1
$81.1
$97.4 $107.0–$110.0
$26.4 $27.0–$28.0
$18.4
$13.8
$11.6
$20.1
$17.5
$72.7$75.9
FinancialTrend&CurrentTargets
AnnualCashFlowsFromOperationsAnnual%ofProFormaNetRevenue Q3YTDCashFlowsFromOperations
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2017A 2018A 2019A 2020A 2021E$0.0
$1.5
$3.0
$4.5
$6.0
$7.5
$9.0
$10.5
$12.0
$13.5
$15.0
$16.5
$18.0
$19.5
$21.0
$22.5$24.0
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
20.0%
21.0%
22.0%
23.0%
24.0%
($Millions)
%ofN
etRevenue
CashFlowsFromOperations
$12.7
$14.6
$11.4
$7.7
$13.9
$20.3$19.0–$22.0
RecentAccomplishments
LaunchedLymphedemaTherapyinITSplatformviajointagreementwithBioCompressionSystems,Inc.—June2021
Raisedannualrevenue,adjustedEBITDAandoperatingcashflowtargets—November2020
Strongexecutiondespiteexternalforcesandconditions;particularlythepandemic—2020
Proactivepatientengagementinitiativelaunchedtoimproverevenuecyclemanagement—Q12020
EnterednegativepressurewoundtherapymarketwithpartnerCardinalHealth—February2020
Acquisitionandintegrationoftwobiomedicalservicescompanies;enablingentryintoacutecareservicemarket—Early2021
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ExecutednewagreementtoexclusivelyprovideInfuBLOCK®PainManagementTherapyservicestoleadingU.S.healthcareprovider—November2021
CorporatePriorities
ContinuesteadygrowthinOncologybusinesswithnewcustomersandtreatments
ExpandPainManagementandNPWTmarketshare
Announcenewcontractswithhealthplansandhealthcaresystems
EnterintonewpartnershipstodevelopadditionalITStherapymarkets
Continuetodriveimprovedoperationalefficienciesandmarginexpansion
BeginonboardingnewcustomersfornewLymphedemaTherapyin2022–2023
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ExecutiveTeamSeasonedIndustryExperience,Including:Pharmaceutical,HealthCare,LifeSciences,MedicalDevice,AutomotiveOEM,PublicAccounting,Military,Retail,ConsumerBrands,DigitalAdvertising,Consulting&High-Tech
JeannineLombardiSheehan–ExecutiveVicePresident&ChiefAdministrativeOfficer
JoinedInfuSystem:2019
TomRuiz–ExecutiveVicePresident&ChiefCommercialOfficerJoinedInfuSystem:2010
BarrySteele–ExecutiveVicePresident&ChiefFinancialOfficerJoinedInfuSystem:2020
RichardDiIorioChiefExecutiveOfficer&Director
JoinedInfuSystem:2004
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CarrieLachance,BSN,RN,CRNI–President&ChiefOperatingOfficerJoinedInfuSystem:2010
Summary
Twoprovenplatformsthatenablethedeliveryofpatientcarefromtheclinicintothehome,drivingdouble-digitrevenue,cashflowgrowthandacceleratingprofit
Marketopportunitiesdrivenbyrisinghealthcarecosts,anagingpopulation,medicalinnovation,patientsatisfactionandotherfactors
Gainingshareinagrowingmarketbyprovidingbest-in-classproducts,talentandpatientservices
Sustainablecompetitiveadvantagesbyservingmultiplestakeholdersonanationalscale
Strategytoaddnewtherapiesutilizingexistingplatformsandleveragingcurrentinfrastructure
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AppendixAGAAPtoNON-GAAPReconciliation
(1)Amountsrepresentanon-cashexpenserecordedasareserveformissingmedicalequipmentandisbeingaddedbackduetoitssimilaritytodepreciation.Amountsforthepriorperiod,whichwerenotpreviouslyincludedinthecalculationofadjustedEBITDA,havebeenincludedforcomparability.
NETINCOME(LOSS)TOADJUSTEDEBITDA: TwelveMonthsEndedDecember31,
ThreeMonthsEndedSeptember30,
NineMonthsEndedSeptember30,
(inthousands) 2017 2018 2019 2020 2020 2021 2020 2021
GAAPnet(loss)income $ (20,707) $ (1,095) $ 1,361 $ 17,332 $ 2,940 $ (448) $ 6,662 $ 1,033
Adjustments:Interestexpense 1,332 1,420 1,904 1,255 283 270 1,018 909Incometax(benefit)provision 15,450 53 163 (9,789) 38 (217) 92 (874)Depreciation 6,963 6,659 7,940 9,740 2,485 2,615 7,267 7,705Assetimpairment 993 — — — — — — —Amortization 5,560 4,649 4,402 4,285 1,075 1,125 3,225 3,264
Non-GAAPEBITDA $ 9,591 $ 11,686 $ 15,770 $ 22,823 $ 6,821 $ 3,345 $ 18,264 $ 12,037
Stockcompensationcosts 682 957 997 2,610 659 1,955 1,222 4,962Medicalequipmentreserve(1) (69) 48 218 178 12 68 64 482ASC842accountingprinciplechange — — 252 — — — — —Officemoveexpenses — — 258 17 — — 17 —Acquisitioncosts — — — — — 7 — 154SOXreadinesscosts — — — — — 68 — 86Restatementcosts 28 — — — — — — —Earlyterminationfeesforcapitalleases 292 98 190 — — — — —Exitedfacilitycosts — 44 — — — — — —Managementreorganization/transitioncosts 737 250 76 521 10 6 471 34Feestointegratebusinessofotherprovider — — 163 — — — — —Contestedproxyandothershareholdercosts 200 251 23 30 — — 30 —Certainothernon-recurringcosts 160 476 491 220 53 46 57 (221)
Non-GAAPAdjustedEBITDA $ 11,621 $ 13,810 $ 18,438 $ 26,399 $ 7,555 $ 5,495 $ 20,125 $ 17,534
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(1)Calculatedasthecashplusborrowingavailabilityunderrevolvingbankloans.
AppendixBSelectBalanceSheetData
(InThousands)December31,
2019December31,
2020September30,
2021
CashandCashEquivalents $ 2,647 $ 9,648 $ 165
AvailableLiquidity(1) $ 12,497 $ 20,436 $ 43,561
WorkingCapital,LessCash&CurrentDebt $ 2,893 $ 6,549 $ 7,552
MedicalEquipment,Net $ 33,225 $ 35,611 $ 36,431
TotalAssets $ 79,224 $ 96,991 $ 94,786
TotalDebt $ 38,377 $ 38,801 $ 30,895
TotalLiabilities $ 56,890 $ 56,239 $ 48,331
TotalStockholders’Equity $ 22,334 $ 40,752 $ 46,455
OutstandingShares 19,882 20,298 20,607
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