company outlook april 1, 2014 harry fleming, cfo [email protected] 1

21
Company Outlook April 1, 2014 Harry Fleming, CFO hfleming@northstar- healthcare.com 1

Upload: jeffry-cain

Post on 23-Dec-2015

217 views

Category:

Documents


1 download

TRANSCRIPT

Company Outlook

April 1, 2014

Harry Fleming, [email protected]

1

2

Forward Looking Statements

This presentation contains forward-looking information (within the meaning of applicable securities laws) relating to the business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results, economic or market conditions, and the outlook of or involving the Company and its business. Such forward looking information or statements are typically identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions.

Forward-looking information, including any financial outlooks, is provided for the purpose of providing information about management's expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions and expectations that the Company believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct and the forward-looking information, including the financial outlooks included in this Presentation, should not be unduly relied upon. Those assumptions and expectations are based on information currently available to the Company, including the historic performance of the Company's business. Such assumptions include anticipated financial performance, current business and economic trends, and business prospects and are subject to the risks and uncertainties which are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com.

The Company’s management has approved the financial outlooks contained in this presentation.

3

Agenda

I. Northstar

II. ASC Industry

III. Revenue/Growth _Programs

IV. Financials

V. M&A

VI. Investment Highlights

4

Northstar

5

Northstar - Overview

Northstar partners strategically with physicians in the development and management of ASCs with the mission of providing superior medical care, increased patient satisfaction, lower costs for healthcare delivery and revenue enhancement through innovative marketing campaigns.

NHC is a publicly listed company on the Toronto Stock Exchange (Ticker: NHC), although all of its operations are located in the U.S.

Outstanding Shares to date are 43 Million

Management Team collectively owns approximately 20 Million shares

Institutional Ownership Approximately 25%

NHC is in the process of positioning the company so that it can effect a listing on a U.S. exchange such as the NASDAQ or the NYSE during the calendar year 2014. Upon the occurrence of such event NHC will also remain on the TSX as a dual listed company.

6

Outpatient SurgeryProfits

Bari,

Spine, DPM

Gyn, Pain

Gen Surgery, Ortho

Focus of Our Business

Most profitable part of the healthcare delivery system

Low costs if well managed

Profit margins can exceed 50% on a center level

ASCs better serve surgeons, patients and payors

Outpatient Surgery

Inpatient Surgery

X Rays

Labs

Medical Admissions

Hospital Profits

7

Our Locations

Own and Operate 4 ASC’s:• 2 in Houston

• 1 in Dallas

• 1 in Scottsdale

Manage Clinical Operations:• Spine/pain management

• Bariatric

• Podiatry

Own and Operate 2 MRI and 1 Urgent Care Centers

7

Focus: Surgical excellence and maximizing efficient use of facilities and resources

8

KIRBY Surgical Center

Houston

Our ASCs

18 operating/procedure rooms

150+ surgeons on staff

Focus on high allowable and high margin outpatient surgical procedures

10,000+ cases per year

Close to major medical centers

8

9

ASC Industry

10

Ambulatory Surgery Centers (ASCs)

Outpatient surgery facilities No overnight stay required Lower cost structure to patient

and insurance companies Better patient outcomes and

satisfaction Higher physician satisfaction Reduced patient risk factors

10

Average charges – 33% lower

11

ASC Industry Overview

Combined revenue of about $18 billion Untouched by Federal Healthcare Reform Act Fragmented market 50 largest companies generate 30% of the revenue U.S. ASC industry includes about 3,500 companies that operate

about 5,000 centers 75 independent ASCs in Houston; 350 in Texas High growth expected over next two years, driven largely by patients

seeking lower-cost alternatives to hospital care, better clinical outcomes and patient satisfaction, and physician steerage of patient care

12

U.S. Healthcare Trends

Growth in outpatient surgeries due to Technology and Technique

National number of ASC’s has quadrupled in 30 years

Over 60% of all U.S. surgeries are as outpatients

More procedures suitable for ASCs

12

19721975

19781981

19841987

19901993

19961999

20022005

20082011

20142017

20200

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Num

ber

of A

SCs

13

Revenue/Growth Programs

14

Revenue Growth Programs

14

Physician Contracting• Accretive revenues for ASC• Surgeon does not need to purchase equity• Northstar’s ownership is not diluted

Direct to Consumer Marketing• Current Campaigns:

• NueStepSM (Podiatric nerve decompression)

• CuraSpineSM (Spine)

• Bariatrics

• Upcoming Campaigns:• Peripheral Bariatric Campaigns

15

Direct to Consumer Marketing

Launched first campaign spring 2013

Marketing infrastructure• Campaign production

• Call center

• Media components

• Online presence

• Analytics for campaign optimization

Clinical Management

Lead Management

15

16

Financials

17

Consolidated Revenue & Operating EBITDA* (000s)

17

*Operating EBITDA is net of non-controlling interest but not including the corporate expense

2010 2011 2012 2013 2014E 2015E 2016E 2010 2011 2012 2013 2014E 2015E 2016E

Revenue 12329 14380 20897 31127 74000 113436 184377

EBITDA -3534 -1090 2049 2147 9917 20055 38648

Operating EBITDA 2487 2368 5999 5252 15168 25771 44876

$15,000

$65,000

$115,000

$165,000

18

Growth Formula

Existing Centers• Continue to optimize current marketing plans and introduce new

marketing programs

• Project 20% annual growth in revenue

Seasonal Revenue: Revenue is seasonal where the first quarter revenues are significantly less than those of the 4th quarter.

New Business Development• Enter two new markets in 2015 and four markets in 2016;

• Leverage current marketing campaigns and other revenue generating programs

• Implement cost containment strategies with increased economies of scale

• Each market should target $1.9 - $2.5M EBITDA

19

M & A

20

Accelerated Growth Beyond Organic

Future Acquisition Targets

Acquire ownership of local surgical hospital(s) to complement current marketing programs

A small-size ASC to service current in-network marketing leads

ASC(s) beyond current market area: San Antonio

Ancillary healthcare facilities to diversify revenues and develop referrals

20

21

Investment Highlights

Northstar Healthcare = Significant growth opportunity

Compelling value proposition for surgeons, patients, and payors

Strong position in high growth ASC industry

Proven track record of performance

Acquisition environment – accretive and accelerated market entry

Platform for scalable growth into multiple markets