New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the...

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LEADING THE HEALTHCARE INDUSTRY IN HOME RESPIRATORY CARE IR Presentation | April 2018

Transcript of New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the...

Page 1: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

LEADING THE HEALTHCARE INDUSTRY IN HOME RESPIRATORY CARE

IR Presentation | April 2018

Page 2: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.No representation or warranty, express or implied, is made or given by or on behalf of Viemed or anof its affiliates, directors, officers or employees as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. Viemed does not undertake or agree to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The contents of this Presentation are not to be construed as legal, financial or tax advice.Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Viemed, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Viemed's current views and intentions with respect to future events, and current information available to Viemed, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: the general business and economic conditions in the regions in which Viemed operates; the ability of Viemed to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on Viemed's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which Viemed is exposed; the failure of third parties to comply with their obligations to Viemed or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by Viemed; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to in Viemed's disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect Viemed in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Viemed does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Viemed undertakes no obligation to publicly update or revise any forward- looking information, other than as required by applicable law.By your acceptance of this presentation you and any person reviewing this Presentation agrees not to distribute, copy; reproduce; transmit; make available; or condone any of the foregoing, without the prior written consent of the Corporation. Any unauthorized use of this Presentation is strictly prohibited.This Presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities of the Corporation in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States, unless an exemption from such registration is available, information concerning the assets and operations of the Corporation included in this Presentation has been prepared in accordance with Canadian standards and is not comparable in all respects to similar information for United States companies.Recipients of this Presentation who are considering acquiring securities of Viemed are referred to the entire body of publicly disclosed information regarding Viemed. The information is subject to material updating, revision and further amendment, and is qualified entirely by reference to Viemed’s publicly disclosed information.

FORWARD-LOOKING STATEMENTS

Page 3: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

VIEMED AT A GLANCE

Largest independent specialized provider of non-invasive ventilation (NIV) in the US homerespiratory health care industry

Newly listed on the TSXV (TSXV:VMD) in December 2017, spin out from Patient HomeMonitoring (PHM) business

Service offering includes 24x7 in home respiratory care including specialized respiratorytherapists and medical devices

Headquartered in Lafayette, Louisiana

Currently Operating in 24 states serving over 12,000 patients

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Page 4: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

OUR TIMELINE (2006 to present)

Annual Revenues: $0.24M USD | Respiratory DME specializing in CPAPS & Oxygen

Annual Revenues: $3.58M USD | Home Sleep Delivered – Specializing in home sleep tests

Annual Revenues: $4.60M USD | Non Invasive ventilator introduced to market

Annual Revenues: $23.29M USD | Name changed to Viemed to support sick lung business

Annual Revenues: $37.57M USD | Acquired by public co. & integration begins

2006 – SLEEP MANAGEMENT FOUNDED

2010 – HSD

2012 - VENTILATOR EXPANSION

2014 - VIEMED

2015 – PHM ACQUISITION

2017 - VIEMED PHM SPIN OUT & LISTING ON TSXV

4Annual Revenues: $46.9M USD

Page 5: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

KEY INVESTMENT CONSIDERATION

Specialized US based respiratory healthcare services company• Focused on Chronic Obstructive Pulmonary Disease (COPD) and growing aging population

Significant Market Growth Opportunity• 10,000 baby boomers are turning 65 everyday (26% of the US population)

Favorable Market Trend

• offer better comfort and family lifestyle options• save money for patients, insurers, government

• Increasing need supported by Government for effective homecare solutions to reduce patienthospital re-admissions

• increase system efficiency

Strong Historical Financial Performance• $10M USD revenue for 2013 growing to ~$46.9M USD in 2017 • Very strong historical net income and EBITDA margins

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Page 6: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

CURRENT STATE OF THE INDUSTRY

The Medicare population is growing,with 54.1 million beneficiaries in 2014and 58.0 million beneficiaries in 2017

At the age of 65, patientsqualify for Medicare

10,000 people turn 65 dailyfor the next 19 years

Expenditures are expected togrow at a 5.3% CAGR from $46.5 billion

to $60.2 billion in 2020

HISTORICAL AND PROJECTED US DME EXPENDITURES$

inb

ill i

on

s

$0

$10

$20

$30

$40

$50

$60

$70

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015P 2016P 2017P 2018P 2019P 2020P

$0.7 $1.1 $1.7 $2.8 $4.1$7.1

$13.8$15.9

$25.2

$30.9

$37.0

$46.5$48.2

$50.6$53.2

$56.4$60.2

9.2% DMECAGR

3.9% DMECAGR

Medicare CompetitiveBidding Begin

4.7% DMECAGR

5.3% DMECAGR

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Page 7: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

NON-INVASIVE VENTILATION (NIV)MARKET PENETRATION

5% OF PEOPLE ACCOUNT FOR

50% OF HEALTH CARE SPENDING IN US1

HEALTH CARE COSTS ARE CONCENTRATED AMONGTHOSE WITH MULTIPLE CHRONIC DISEASES

Number of Chronic Diseases (2015)

An

nu

alc

ost

pe

rp

er s

on

0 1-2 3-4 5+

$0

$10K

$20K

$30K

$40K

$50K

$60K

$70K

$80K

$6K$10K

$25K

$45K

NUMBER OF PEOPLE WITH 3+CHRONIC DISEASES IS GROWING

#o

fP

eo

ple

wi t

h3

or

mo

rech

ron

icD

i se

a se

s

2015 2030

30.8MILLION

83.4MILLION

1SB Choen, “The concentration and Persistance in the Level of Health Expenditures over Time: Estimates for the U.S. Population, 2012 - 2013.” Statistical Brief #481.

AHRQ, Sept. 2015. http://meps.ahrq.gov/mepsweb/data_files/publications/st481/stat481.pdf

*Above statistics as of 2016

25 Million people in the US have COPD

2,500,000 or 10% have stage 4 COPD

1,250,000 or 50% of those with stage 4 are candidates for our therapy

Currently only 40,000 beneficiaries on NIV service

This is less than 5% of market penetration

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Page 8: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

THE VIEMED SOLUTION

Case Managers are Registered Respiratory Therapists (RT’s) assigned to each patient and on call 24X7• All RT's are COPD educators

• Supported by pulmonologists on staff• Bringing holistic option to home based treatment

• Complement necessary medical equipment

Use best in class medical equipment that is durable and requires little servicing

Provide affordability for patients

• Most plan costs covered by Medicare and insurance • Low monthly service plans vs large cash outlay for costly at home medical devices

Each patient is given a customized in-home care plan based off Activities of Daily Living (ADL’s)assessments. Subsequent visits educate and assist patients – build trust and on-going relationshipwith patient

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Page 9: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

VIEMED PRODUCTS

Registered Respiratory Therapists

provide Training, Case Management

and are on call 24/7

9

HOMESLEEP

TESTING

PERCUSSIONVESTS

VENTILATORS PAP’S & SUPPLIES OXYGEN THERAPYMONITORINGCOUGH ASSISTS

Page 10: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

VIEMED SERVICES

Respiratory disease management (including COPD): This service aims at improving quality of life and reducing hospitalreadmissions by using proven methodology and leading technologies such as Non-Invasive Ventilation (“NIV”) and other therapies.

In-home sleep testing and Sleep Apnea treatment: This service, provided through Home Sleep, focuses on providingin-home testing for potential sleep apnea sufferers and providing related solutions and/ of equipment like the AutoPAPand BiPAP machines.

Oxygen therapy: This service provides the patient with extra oxygen, which is sometimes used to manage certain chronic healthproblems. Oxygen therapy may be performed at a hospital, at home or in another setting.

Neuromuscular Care: This service is focused on helping neuromuscular patients to breathe more comfortably while living anactive, healthier life and uses respiratory therapy treatments which can lessen the effort required to breathe.

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Page 11: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

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 stores• Sales reps and RT's operate out of vehicles that are monitored by GPS

High service model• Certified RT’s delivering a high touch service model to a non compliant patient demographic base.• Providing education and assessment to patients in their homes

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Page 12: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

PROVEN RESULTS

93% of patients report they breathe better

Patients are 3 times more likely to pass away during 90 days after aChronic Respiratory failure diagnosis if NIV treatment is not obtained

Reduction of readmissions to facilities reduces cost to payers –currently estimated at approximately $30,000 per patient of annual savings

Viemed patients have a 5.7% readmission rate, significantly below industry average of 20%

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Page 13: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

Current states

VIEMED STRATEGIC GROWTH PLANINCLUDES IN-STATE EXPANSION AS WELLAS NEW STATE TERRITORIES

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WA

ORMT

ID

WY

CA

NVUT

CO

AZ NM

ND

SD

NE

KS

OK

TXLA

AR

IA

MN

WI

IL

MI

INOH

PA

NY

NC

FL

ALGA

TN

VTNH

ME

NJ

MOKY

WV VA

SC

MACT

RI

MS

Page 14: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

Grow active patient base while entering new target states through geographic expansion

Introduce shared savings programs with payors

Diversify payor base

Introduce step-down program with Skilled Nursing Facilities (SNF), Long Term Acute CareHospitals (LTACH) and Hospitals

Change the payment structure for HME to get reimbursement for the in-home clinicalmanagement and education

Collaborate with other home care providers (Home Health, Rehab, Nursing Homes, Hospice)to create outcomes based programs to improve patient care inside the overall homecare industry

OBJECTIVES FOR NEXT 24 MONTHS

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Page 15: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

FINANCIALS

Page 16: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

REVENUE MODEL

Monthly rental fee – reimbursed by insurance and covered by Medicare

Uncapped rental contract

Average monthly client revenue is ~USD$950

Viemed is engaged with reimbursement models thatrange from Fee For Service through both Commercialpayers and Medicaid/Medicare while also participatingin Shared Savings Programs as well as throughcash transactions

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Page 17: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

HISTORICAL FINANCIAL PERFORMANCE

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Active Vent Rental Patients

0Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Dec-17

5001,0001,500

2,0002,5003,0003,5004,000

4,4004,500

May 15 – PHM AcquisitionMay 16 – Decision to split

Revenue in USD

$0

2013 2014 2015 2016 2017

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

$10.2M

$23.3M

$37.6M

$31.4M

$46.9M

EBITDA in USD

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2013 2014 2015 2016 2017

$3.1M

$9.9M

$11.9M

$1.9M

$12.0M

Page 18: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

CAPITAL MARKETS PROFILE

37,909,628

Shares outstanding& fully diluted

~$5.1M 11%

Inside ownership

TSXV: VMDMarket cap as of 3 April 2018: ~$119M (CDN)Stock price as of 3 April 2018: ~$3.15 (CDN)

Cash on hand in USD* Total debt in USD*

~$5.2M

Total staff

220

* As of December 31st, 2017

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Page 19: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

CORPORATE STRUCTURE

Viemed Healthcare, Inc. (Canadian Parent Company Listed on TSX-V)

Viemed, Inc. (Delaware Corporation/US Subsidiary)

Home Sleep Delivered,L.L.C. (US Subsidiary-Louisiana

Sleep Management,L.L.C. (US Subsidiary- Louisiana)

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Page 20: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

Tim SmokoffIndependent Director

Nitin KaushalIndependent Director

MANAGEMENT TEAM & BOARD OF DIRECTORS

Trae FitzgeraldChief Financial Officer

Dr William FrazierChief Medical Officerand Director

Todd ZehnderChief Operating Officerand Director

Casey HoytChief Executive Officerand Director

Mike MoorePresident

Randy DobbsChairman of the Boardand Independent Director

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Page 21: New IR Presentation | April 2018 - Viemed · 2018. 4. 9. · This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of March 2018. It

Glen Akselrod

Bristol Capital IR

[email protected]

Tel: 905 326 1888

Thank you