INVESTOR
PRESENTATION
November 11, 2015
A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities
regulatory authorities in the provinces of British Columbia, Alberta and Ontario. A copy of the final base shelf prospectus, any amendment to the final
base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document.
This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus,
any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered,
before making an investment decision.
Safe Harbor
Disclosure
Certain statements contained in this presentation may be considered “forward-looking information” as defined
under applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements
include, but are not limited to, statements made under the heading “Risk Factors” of the base shelf prospectus of
Agility Health, Inc. dated May 29, 2015 and other statements concerning the objectives of Agility Health, Inc.
(“Agility”), strategies to achieve those objectives, as well as statements with respect to management’s beliefs,
plans, estimates, and intentions, and similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical facts. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”,
“intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, or “continue”, or similar expressions suggesting
future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based
on information currently available to management. Forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those contemplated by such statements.
No assurance can be given as to any such future results, levels of activity or achievements and neither Agility nor
any other person assumes responsibility for the accuracy and completeness of any forward-looking statements.
The factors underlying current expectations are dynamic and subject to change. All forward-looking statements in
this presentation are qualified by these cautionary statements. Other than specifically required by applicable laws,
Agility is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking
statements whether as a result of new information, future events or otherwise except as may be required by law.
All reference to dollars in this presentation are to U.S. dollars, unless otherwise indicated.
2
Who We Are
Agility Health, Inc. (“Agility”) is a leading healthcare provider
with a focus on physical rehabilitation services
Differentiated business model
Growth in revenues, margins and EBITDA
Highly fragmented industry
Capitalize on growing demand
Large, growing industry
Experienced leadership
3
Corporate Overview
Network of Service Sites
1+ million patient visits annually
700+ employees
150+ locations
Consolidating highly fragmented
market
4
Steve Davidson, PT,
MBA
Chief Executive Officer
• 33 years
healthcare
experience
• Licensed
physical
therapist
Ken Scholten,
PT
President
• 39 years
healthcare
experience
• Licensed
physical
therapist
Gene K. Miyamoto,
MHSA
Chief Operating Officer
• 33 years
healthcare
experience
• Master in
Health Services
Administration
AGILITY HEALTH Management Team
5
Agility Health
Our Business
Long-Term
Care
Contract Services
Outpatient
Clinics
Hospitals
Contract Services
Industrial
44% of Revenue 11% of Revenue 16% of Revenue 29% of Revenue
Medicare or Medicaid (government payors)
represented ~10% of direct receivables in 2014
6
Revenue Trends (USD)
$0
$10
$20
$30
$40
$50
$60
$70
$80
2014
$62.1
7
Cost containment review in late 2014
stripped $1.2 million out of fixed costs.
Closure of non performing clinics in
Boston will save $1.5 - $2.0 million a
year.
Focus on higher margin lines of
business.
Focus on same-store (clinic) visit
volumes
8
Q2 & Q3, 2015 Highlights
4% 2014
10% Q2
2015
EBITDA for the second quarter
grew to a record $ 1.5 million or
10% of revenues
Gross margin from operations for
the second quarter was 22%
Revenue from continuing
operations for the second quarter
was $15.8 million
__% Q3
2015
9
Agility announced that it has opened a new, 2800 square foot
clinic in Mattawan, Michigan, the first of several “greenfield”
expansions planned for 2015.
Agility announced that its wholly owned orthotics division,
Biocorrect LLC, had achieved Medicare accreditation and
billing privileges.
Completed a CDN$ 2.7 million prospectus offering.
Open new 2,800 square feet Outpatient Center in Kansas City
market.
BDO USA named as new Auditors.
Expanded Boeing-Everett relationship increase 50%.
Highlights for Q2 & Q3, 2015
TARGET
MARKET
Physical rehabilitation industry: $26.9 billion
Outpatient rehabilitation market: $10 billion
Highly fragmented, with more than 30,000 individual clinics
Eight largest firms account for only 11.3% of the industry
Top 50 companies represent less than 25%
Market Overview
11
Patient Protection and Affordable Care Act increases Insured
population with Insurance coverage
Senior population growth
2.4% Annual Increase in US residents 50+
Increased desire by elderly to retain an active lifestyle
Growing awareness and acceptance of physical rehabilitation
services
Shifting patients earlier from institutional settings (e.g.
hospitals) to outpatient centers
Rising obesity rates in population supports the need for
rehabilitation services
Demand for Therapy Services
12
Companies in this space are either very large or very
small
Increasing regulatory burden contributes to smaller clinics
seeking to strategically partner or to divest
Agility’s scale makes many acquisitions insufficient in size
for others to consolidate
Agility intends to act as a partner and consolidate smaller
companies for the foreseeable future
Market Dynamics Favor Consolidation
13
GROWTH
STRATEGY
Agility Health
Growth Strategy
Acquisitions
Strong local brands
Growth Platform
Leverage our
infrastructure and
clinical portfolio
De Novo
Clinician
partnerships
Existing market
expansion, and new
market penetration
Organic
Organic with
existing clients
New client wins:
Industrial
Hospital
Nursing Home
Primary Focus
15
Opportunistic
Integration of services such as IT/server, scheduling/PM software,
HR, billing, benefits, etc.
Potential economics of scale (administrative services)
Acquisition growth complemented by organic clinical expansion and
horizontal integration of product lines (e.g. selling contract therapy
services in our new outpatient acquisition markets)
Agility Health
An Ideal Consolidator & Strategic Partner
16
Agility has developed a proprietary software package tailored to the
needs of our industry
Case management, scheduling, work queues, reporting, patient
records, paperless documentation, compliance, billing,
payment, etc.
AgileRPM, has been implemented in 73 clinics with 682 users
We have invested over $3M in the development of AgileRPM
AgileRPM provides recurring revenue through a “Software as a
Service” or SaaS model in which outpatient clinic and hospital
partners subscribe to our service for a monthly fee
Implementing our system results in improved therapist productivity
due to reductions in time spent on administrative duties
Proprietary data of clinical cases being used to develop case-based,
optimized treatments to enhance outcomes and minimize costs for
patients and payors
Agility Health
Proprietary Software System – AgileRPM
17
Cultural fit with Agility
Ongoing management participation
Strong, local reputation
Retains Equity (actual or synthetic)
Organic Growth Opportunities
Typical Acquisition Criteria
18
Public Peers: Scope of Service
Rehab Setting1
Agility Health
Select Medical
(NYSE:SEM)
Kindred (RehabCare)
(NYSE:KND)
US Physical Therapy
(NASDAQ:USPH)
Rehab Hosp. Nursing Home Home Care Outpatient Industrial
P
P P
P
P
P
P P
P
P
P
P P
(1) according to our research 19
Hospitals
P
P
P
P
Rehabilitation Continuum of Care
Home
Health
Market aggressively developing bundled pricing across continuum
AH uniquely provides care across the whole continuum
Agility Health
Outpatient LTC/Contr. Industrial Orthotics Hospital JV
Trading Statistics
52 Week Range $0.18 - $0.55
Latest Price (Nov 10) $0.20
Market Cap. ($CAD MM) $19
Shares Out (MM) 95.9
Cash & Equivalents (USD$ MM)
$2.7
Float 32%
Capital Structure
Common Shares
Restricted Voting Shares
45,871,944 49,998,606
Total Outstanding Shares
95,870,550
Options Warrants
1,792,725 2,991,442
Fully Diluted Shares 100,654,717
Total LT Debt ($USD MM)
$22.9
As at Nov. 12, 2015
21
Highly fragmented industry with large market size
Restructure in 2014 driving significantly improved 2015 EBITDA
Planned 2015 “greenfield” expansions with high ROI
Strong and experienced management with substantial physical
therapy transactional experience
Investment Highlights
22
Robert Herr, CPA
Director
Certified Public Accountant (retired) Crowe
Horwath, LLP for 40 years
Director, Macatawa Bank (NASDAQ.MCBC);
Member of Audit Committee since 2010
Multiple private and public company clients
including manufacturing, retail, financial,
service, healthcare, distribution, non-profit,
and higher education
Multiple community and private Boards of
Directors and audit committees with a focus
on strategic planning, transaction services,
internal reporting, cash flow, and budget
planning
Pierre Labbé, CPA, CA Robert Metcalfe
Independent Directors
Director Director
CFO, Leddar Tech
Chartered Accountant, Laval University,
Quebec City
Member of: Order of Chartered Accountants
of Quebec, the Canadian Institute of
Chartered Accountants, and the Association
of Certified Corporate Directors
Director and Chairman of the Audit
Committee of Virginia Mines Inc (TSX.VGQ)
Formerly, VP, and/or Chief Financial Officer
of Quebec Port Authority, Medicago
(TSX.MDG), Plexmar Resources Inc.,
Sequoia Minerals Inc., and Mazarin Inc.
Counselor, Metcalfe, Blainey & Burns LLP,
13 years; Senior partner at Lang Michener
LLP, 20 years
Member, Institute of Corporate Directors
and Law Society of Upper Canada
Director: Gran Colombia Gold Corp.;
Xinergy Corp.; and Alberta Oil Sands
Formerly, CEO and President of Armadale
Properties and counsel to Armadale Group
Formerly, Director of Canada Lands
Company Limited, and Chairman of the
Board of CN Tower Limited
23
AGILITY HEALTH
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