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Impairment charges) 11,199 $ 7,745 $ 10,256 $ 9,590 $ 14,230 $ 9,747 $ 11,054 $ Adjusted EBITDA N/A N/A 10,256 $ 13,126 $ 15,954 $ 11,271 $ 11,471 $ Detailed Historical BS (000's) 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 6/30/14 9/30/14 ASSETS Current Assets: Cash and cash equivalents 7,750 $ 5,014 $ 799 $ 2,326 $ 1,138 $ 1,041 $ 1,902 $ Accounts receivable total, net of allowance 5,517 6,679 7,448 8,511 10,697 10,768 11,505 Inventory 925 1,699 1,309 1,339 1,234 1,485 1,589 Prepaid expenses and other current assets 395 750 934 684 518 712 621 Deferred income taxes 125 1,147 682 1,971 2,296 2,296 2,296 Total Current Assets 14,712 15,289 11,172 14,831 15,883 16,302 17,913 Total PP E and Medical Equipment 13,499 16,672 17,672 16,564 18,974 20,017 22,397 Deferred debt issuance costs, net 781 658 421 2,362 1,817 1,505 1,349 Total Goodwill and Intangible assets, net 85,491 97,344 28,221 25,541 24,182 24,287 24,461 Deferred income taxes 0 0 18,187 17,806 16,300 15,376 14,696 Other assets 207 401 590 419 217 248 208 Total Assets 114,690 $ 130,364 $ 76,263 $ 77,523 $ 77,373 $ 77,735 $ 81,024 $ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable total 1,306 $ 2,016 $ 4,063 $ 2,144 $ 4,736 $ 4,101 $ 4,570 $ Accrued expenses and other 1,573 4,631 2,235 4,098 3,187 2,573 3,303 Derivative liabilities 2,670 183 258 0 0 0 0 Current portion of long term debt 5,501 5,551 6,576 3,953 5,118 3,871 4,238 Total Current Liabilities 11,050 12,381 13,132 10,195 13,041 10,545 12,111 Long term debt, net of current portion 18,640 26,646 22,551 27,315 21,609 22,829 23,631 Deferred income taxes 3,314 5,788 0 0 0 0 0 Other liabilities 221 406 415 0 0 0 0 Total Liabilities 33,225 $ 45,221 $ 36,098 $ 37,510 $ 34,650 $ 33,374 $ 35,742 $ Total Stockholders' Equity 81,465 $ 85,143 $ 40,165 $ 40,013 $ 42,723 $ 44,361 $ 45,282 $ Total Liabilities and Equity 114,690 $ 130,364 $ 76,263 $ 77,523 $ 77,373 $ 77,735 $ 81,024 $ Total Debt 24,141 $ 32,197 $ 29,127 $ 31,268 $ 26,727 $ 26,700 $ 27,869 $ Net Debt 16,391 $ 27,183 $ 28,328 $ 28,942 $ 25,589 $ 25,659 $ 25,967 $ Comparison to Other Infusion Companies Stock Comparison As of 11/20/14 BioScrip Infu Stock Price $ 5.99 2.85 52 Week hi $ 9.05 4.50 52 Week lo $ 5.44 1.70 Average Volume 1,000,850 174,194 In $ millions Market Cap $411.1m $63.3m P/E Ratio (trailing) N/A 20.29x P/E Ratio (forward) 75.12x 8.82x Enterprise Value $821.4m $89.5m Revenues (ttm) $1,030m $60.8m Net Income (ttm) $(93.6)m $3.18m EBITDA (ttm) $(3.5)m $16.7m EBITDA Margin (% of rev) N/A 27.4% EV / EBITDA N/A 5.4x EBITDA Anlayst (FY2014) $55.0m 17.4 EV / EBITDA 14.9x 5.1x Stock Comparison Source: Yahoo Finance INFU has no direct small DME niche public company comp.
Competitive environment will vary in accordance with the level of cuts by CMS CMS Competitive Bidding Target Timetable CMS will institute some form of competitive CMS will institute some form of competitive bidding nationwide by January 2016. bidding nationwide by January 2016. CMS began the pre bidding supplier awareness program CMS announced bidding schedule, start bidder education and begin a bidder registration period Bid window opens Current Round 1 bid contracts expire CMS announces Round 1 Recompete bid results INFU impact $250K annually Bid window closes Implementation of Round 1 bid contracts and prices Quarterly Financial History Basic EPS Detailed Historical P L (000's) 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 9M 2013 9M 2014 Net revenues: Rentals 46,795 $ 53,471 $ 55,962 $ 41,556 44,150 Product sales 7,842 5,357 6,318 3,547 6,077 Net revenues: 38,964 47,229 54,637 58,828 62,280 45,103 50,227 Cost of Revenues: Product, service and supply costs 6,200 7,730 9,128 9,165 11,274 8,174 9,024 Pump depreciation and loss on disposal 4,127 5,954 10,154 6,752 7,327 4,836 5,474 Gross Profit 28,637 33,545 35,355 42,911 43,679 32,093 35,729 Provision for doubtful accounts 4,006 4,515 4,099 5,251 6,534 4,782 4,811 Amortization of intangibles 1,827 2,259 2,662 2,734 2,618 1,972 1,876 Asset impairment charges 0 0 67,592 0 0 0 0 Selling and marketing 5,258 7,087 9,371 9,864 9,658 7,281 7,762 General and administrative 12,218 20,622 17,987 23,062 18,973 14,622 14,723 Operating income profit/(loss) 5,328 (938) (66,356) 2,000 5,896 3,436 6,557 Total other gain/(loss) (3,577) (2,285) (2,221) (4,152) (3,196) (2,307) (2,329) Profit/(loss) before income taxes 1,751 (3,223) (68,577) (2,152) 2,700 1,129 4,228 Income tax benefit/(expense) (977) 1,371 23,134 663 (1,031) (324) (1,907) Net income/(loss) 774 $ (1,852) $ (45,443) $ (1,489) $ 1,669 $ 805 $ 2,321 $ EBITDA 11,199 $ 7,745 $ (57,336) $ 9,590 $ 14,230 $ 9,747 $ 11,054 $ EBITDA (ex.
Transacts directly with healthcare providers no third party reimbursement revenue InfuSystem offers new pumps from top brands Broker dealer trading desk 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 to be patient ready Warranty offered on pre owned pumps A variety of financing options to fit customers operating, budgeting and financing parameters Nationwide, industry leading ISO 9001 service programs Launching branch service center in Houston Direct Payor Offerings Pre Owned New Pumps from Top Manufacturers Full Spectrum of Ownership Options for Customers Sales Rental Asset Management Renting new or pre owned equipment Rent pumps by the day, week or month to match swings in patient count Free shipping on all rentals Industry leader in sales of pre owned equipment, creating significant savings Competitive pricing on new equipment Option to sell back pre owned pumps Leasing plans offered ISO 9001 Service offered Service plans offered Local service expansion 2 existing; 1 planned Coordinate with TPP Loaner pumps available Leading Provider of New and Pre Owned Pumps 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 regulatory guidelines Service and repair capabilities on high demand services reaching end of life that are no longer supported by manufacturers ISO certification and an established quality system strengthens relationships with major customers Provides InfuSystem an opportunity to establish a business relationship with customers that acquired pumps through other sources Continuing and increased need for compliance with current as well as anticipated regulations 28 highly qualified service technicians 5 major manufacturer relationships: 3 service centers, located in California, Toronto and Kansas Competitive Bidding Overview InfuSystem was not involved in Round 1 nor Round 2 of Competitive Bidding CMS announced a Recompete of Round 1 competitive bidding on April 17th External infusion pumps/supplies added as a new product category A supplier must bid on all items within the product category to have its RFP considered Recompete covers 9 Metropolitan Statistical Areas (MSAs) Competitive Bidding Overview InfuSystem s Response to Competitive Bidding InfuSystem has engaged consultants and industry professionals to discuss directly with CMS, advise on positioning the Company for potential regulatory changes, and facilitate potential strategic partnership opportunities InfuSystem was awarded contracts in all 9 MSAs with average cuts of ~21% for our category per CMS. 1 of 3 National Vendors to receive contracts in all 9 markets.
Repair Offering Infusion to All Points of Care Provider Oncology Acute Care Emergency Services Long Term Care Home Infusion Compelling Value Proposition In House Service Repairs Convenience Flexibility Pre Owned Equipment Expertise One Stop Shopping Solution Convenience and flexibility of rentals and financing minimize customer capital outlays Rental and financing eliminates the need for in house maintenance/service Option to own, rent or finance designed to fit customers operating and financial parameters Shorter and longer term financing options One stop shopping solution for ambulatory large volume pump and other movable medical devices Sales Rentals Supplies Service Financing World class biomedical repair and service for pumps, defibrillators and most other general medical equipment Allows InfuSystem to purchase, clean, repair and certify any used medical equipment the Company buys for subsequent sale, rental or financing to customers Complementary core competencies allow InfuSystem to offer superior selection, flexibility, pricing and services ONE STOP SHOP SERVICE REPAIRS CONVENIENCE FLEXIBILITY PRE OWNED EQUIPMENT EXPERTISE Unique ability to source and deploy pre owned movable medical equipment Consistent, fair and knowledgeable market maker for pre owned pump disposals Market knowledge results in attractive equipment acquisition costs Payor Customer Mix Leading Cancer Institution Customers Revenue by Payor (FY2013) High diversification of providers and payors No single healthcare provider represents more than 7% of Third Party Payor revenues Strong payor mix among Medicare, other commercial insurers, Blue Cross/Blue Shield, and Medicaid Approximately 6% of revenues received directly from patients through co pays or otherwise Broad coverage further diversifies revenue streams InfuSystem has strong relationships with the largest third party payors and the leading cancer institutions 9 of 10 of the Top Ten Cancer Treatment Centers CMS: Centers for Medicare and Medicaid Services Medicare and Medicaid 38% BCBS 17% Patient 6% Commercial 39% Infusion pumps Enteral pumps Direct Payor Business Model Service Repair Products InfuSystem sells, rents and finances a wide variety of new and used large volume and ambulatory pumps InfuSystem services and repairs both its own fleet of pumps and many types of other movable medical equipment Syringe pumps Ambulatory pumps Large volume pumps Ambulatory pumps Fluid collection Medical equipment 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 in Olathe, KS with distribution/service centers in Santa Fe Springs, CA and Mississauga, Ontario InfuSystem services ISO 9001 and repairs movable medical equipment Leading provider to alternate site healthcare facilities and hospitals in the United States and Canada Home infusion providers, long term care, physician clinics, research facilities, etc.
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 Through 2015 Thank You for Your Interest! IR Contact Info: The Dilenschneider Group 212 922 0900 Rob Swadosh, rswadosh dgi nyc.com Appendix: INFU Overview Increasing Therapy Offerings to Payors Payor Surgery Infectious Disease Oncology Special Disease States Full Line Multi Therapy Multi Point Offering HOW we provide TPP/DP/Service Pumps Device Pharma Manufacturer, Distributor, GPO, ACO Partners Provider Patient Payor InfuSystem Niche Extension of Clinic to Home 25 year old business model in DME billing At home, at work, at play, all while receiving the drug High satisfaction scores 24/7 on call oncology nurses Proven outcomes with continuous home infusion Oncology, Post Surgical Pain, Special Disease States Bills patient insurance 250+ Commercial and Government Payor Contracts Commercial Payors reimburse more therapies than CMS Awarded contracts in all 9 MSAs (1 of 3 National Vendors) Average cuts of ~21% for our category, per CMS ($250,000 per yr) Ambulatory Home Infusion TPP Payor Contracts Rentals, Sales Service to Providers Pump Experts Direct sales, rental, and lease of device and supplies in US and Canada Pump Broker Expertise ability to acquire and dispose of CAP EX in cost effective way Asset management, rental and lease Annual Pump Recertification Preventative Maintenance Warranty World Class ISO Certified service facilities Regional Distribution West, South, East Canada 28+ Certified Technicians Pump Rentals, Sales and Asset Management Preventative Maint.
Cancer rates growing Nerve Block at Home 5.69M orthopedic surgeries annually 50% are projected to be Continuous Peripheral Nerve Block Candidates Estimated $700 M market Growing therapy Electronic Connectivity through Electronic Medical Record (EMR) Interface Electronic Data Exchange Interface Effects Fuels market share gains Efficiency advantage vs smaller players Greater revenue per employee Greater customer satisfaction Lifecycle Management Infusion Pumps Total Pump Fleet Management Online, Anytime Order New Pumps Schedule Service Repair Access Recertification Docs Lifecycle Management Asset Tracking Smart Metrics Loss Threat Count 11 Loss Threat Percent 3% Assets Under Par 7 30 Day Average Daily Check Outs 6 High Patient Satisfaction Scores For Faster Turnaround and Improved Utilization Kansas City Service Center Madison Heights Service Center Future Northeast Service Center Future Southeast Service Center Los Angeles Area Service Center Houston Service Center Toronto Canada Service Center InfuSystem Distribution Reduced cost of air shipments Improved utilization of pumps Increased market share of same day rental market New Products Services Pain Management Service Catheter care kits Pole mounted pump sales and rentals in oncology Smart Pump Services Infusion disposals including IV administration sets chemo safety Financial Overview Adjusted EBITDA (1) Revenues Free Cash Flow (1) Basic EPS (1) Free Cash Flow = Adjusted EBITDA less CapEx and Net Purchases of Medical Equipment $38,964 $47,229 $54,637 $58,828 $62,280 $67,404 $30m $40m $50m $60m $70m FY2009 FY2010 FY2011 FY2012 FY2013 LTM 3Q14 Revenues Growing $10,256 $13,126 $15,962 AEBITDA Growing $16,153 $6m $10m $14m $18m FY2011 FY2012 FY2013 LTM 3Q14 (1) Per 8K filed 3/28/13 for yrs 2011 and 2012 $5,754 $10,568 $11,839 $12,604 $4m $8m $12m $16m FY2011 FY2012 FY2013 LTM 3Q14 FCF Growing 0 1 0 0 3 4 3 4 4 (4) (4) (5) (4) (3) (2) (1) 1 2 3 4 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 2012 FY 2013 FY 2014 EPS Profitable Growing Uses of Free Cash Flow Every $1.00 invested in the rental fleet returns ~$1.50 in revenue every year for the life of the pump Total Debt PP E and Medical Equipment in Service (at cost) Unrestricted Liquidity Medical Equipment Turnover Ratio Positioned For Growth Market Trends InfuSystem is uniquely positioned to take efficient advantage of growing market trends in Oncology Orthopedic surgery Growth of home infusion Leadership Experienced Medical Industry Executives Focused on improving patient satisfaction and outcomes Supported by World Class ISO and CHAPS Accredited facilities and motivated employee Strategy Increased use of electronic connectivity Expanding geographic footprint Expanding into new therapies, products and services Where Does This Take INFU?
Working and patient ready. InfuSystem Manufacturer, Rental Companies Insurance Company InfuSystem Clinic Patient InfuSystem Clinic, Hospital, Home Infusion Sales Sales Rental Rental revenue revenue via 3 via 3 revenue revenue streams. streams. Patient Co pay Deductible Revenue Diversification 2009 Revenues $39M 2014 Revenues (Annualized 9m) 70% 26% 1% 1% 2% 48% 23% 12% 4% 12% Rentals Colorectal Cancer Rentals Other Cancers Rentals Infectious Disease Rentals Pain Management Rentals Hospitals/Home Care Rentals Service Repair Sales Equip, Consumables InfuSystem Provider Niche Therapy Started in Clinic Total Total Home Home Infusion Infusion Market Market Chemotherapy at Home InfuSystem is the market leader with over 1,600 practice sites served Estimated over $200 M market.
The company's market share and profitable growth is predicated on expansion into new therapies, increased use of electronic connectivity, development of new products and services, and strategic geographic expansion. Confidential Information of InfuSystem Holdings, Inc. 3 InfuSystem Infusion Made Easy 9 mos YTD September 30, 2014 (1) Revenues $50.2M (Up 11%) AEBITDA $11.5M (Up 2%) Market Cap $64.0M $2.87 (as of 11/20/14) Company Overview Provides infusion pumps and related products and services for patients in: The Patient s Home Oncology Clinics Ambulatory Surgery Centers And Other Sites of Care Serves all 50 States Canada from 5 locations Improves outcomes and delivers high patient satisfaction with world class ISO and CHAP accredited quality Profitable growth is predicated on: Growth of oncology and orthopedic surgery Increased electronic connectivity New products and services Strategic geographic expansion (1) Free Cash Flow = Adjusted EBITDA less CapEx and Purchases of Medical Equipment The right pump, the right place, and the right time.
Summary InfuSystem is a growing healthcare company that provides infusion pumps and related products and services for patients in the home, in oncology clinics, ambulatory surgery centers, and other sites of care from five locations serving all 50 States and Canada. We deliver improved patient satisfaction and outcomes with world class quality, both in and out of the home environment.
Forward looking statements in this presentation are made as of December 1, 2014, and, unless required by law, the Company disclaims any duty to supplement, update or revise such statements, whether as a result of subsequent developments, changed expectations or otherwise. The Company regularly posts important information to the investors section of its website.
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying certain factors that could cause actual results to materially differ from those indicated by these forward looking statements. Those factors, risks and uncertainties include, but are not limited to: potential changes in overall healthcare reimbursement, including CMS competitive bidding; sequestration; concentration of customers; increased focus on early detection of cancer; competitive treatments; dependency on Medicare Supplier Number; availability of chemotherapy drugs; global financial conditions; changes and enforcement of state and federal laws; dependency on suppliers; risks associated with acquisitions and joint ventures, including integration risks; US Healthcare Reform; relationships with healthcare professionals and organizations; technological changes related to infusion therapy; [dependency on websites and intellectual property; dependency on key personnel; dependency on banking relationships; risks associated with our common stock, as well as any litigation to which the Company may be subject from time to time; and other risk factors as discussed in the Company s annual report on Form 10 K for the year ended December 31, 2013 and in subsequent filings made by the Company from time to time with the Securities and Exchange Commission (the SEC ), which can be obtained via the SEC s Edgar website or by contacting the Company or the SEC.
InfuSystem Holdings, Inc. Shareholder Presentation December 1, 2014 Exhibit 99.1 Safe Harbor Statement Certain statements contained in this presentation are forward looking statements and are based on future expectations, plans and prospects for the business and operations of InfuSystem Holdings, Inc. ( InfuSystem or the Company ) that involve a number of risks and uncertainties.
One often mentioned is BioScrip Inc. (BIOS), but like most other potential comps it is broadly diversified beyond the infusion sector.