Fortress Value Acquisition Corp. II
Fortress Value Acquisition Corp. II — SPAC Merger (April 2021)
58 slides from Fortress Value Acquisition Corp. II's SPAC merger presentation, Apr 1, 2021
Slide 1: Analyst Day Presentation
Analyst Day Presentation December 2020 April 1, 2021 1Analyst Day Presentation December 2020 April 1, 2021 1
Slide 2: Disclaimer
Disclaimer This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Wilco H
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) INDUSTRY AND MARKET DATA Although all information and opinions expressed in this Presentation, including market data and other statistical information, were obtained from sources believed to be reliable and are included in good faith, Wilco and FVAC have not independently verified
Slide 4: Agenda
Agenda Time Duration Topic Speaker(s) 11:00-11:05am 5 min Introductions Drew McKnight 11:05-11:35am 30 min Company Overview and Key Differentiators Labeed Diab 11:35-12:05pm 30 min Growth Strategy Labeed Diab & Joe Jordan 12:05-12:40pm 35 min Our Operations Ray Wahl & Cedric Coco 12:40-12:55pm 15 mi
Slide 5: Today's Presenters
Today’s Presenters Labeed Diab Joseph Jordan Ray Wahl Cedric Coco Drew McKnight Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief HR Officer Chief Executive Officer ATI Physical Therapy ATI Physical Therapy ATI Physical Therapy ATI Physical Therapy Fortress Value Acquisit
Slide 6: Company Overview
Company Overview 6Company Overview 6
Slide 7: ATI at a Glance
ATI at a Glance (4) Company Highlights Diversified Payor Mix Other — Largest Single-Branded Physical Therapy (“PT”) Provider with (1) 7% 875 owned clinics across 25 states Workers' Compensation — Highly focused on delivering the best treatment and 18% (2) experience for patients – Net Patient Score
Slide 8: History of Successful Growth
History of Successful Growth Evolution of ATI (Number of clinics) Continued geographic expansion through combination of strategic M&A and de novo clinics 872 875 810 Expanded into 743 Washington and Missouri 658 Expanded into Ohio 500 Focused on organic growth through de novo clinics while investing
Slide 9: ATI is at a Clear Inflection Point
ATI is at a Clear Inflection Point Pre 2016: 2016 to Today: 2021 & Beyond: Establishing Presence Modernizing for Scale Executing on Growth — Significant geographic — Modernized infrastructure to — Platform ready to take on expansion and growth through further support profitable growth continued grow
Slide 10: Well Positioned to Lead as Physical Therapy Shifts Towards Consumerism and Value-based Payments
Well Positioned to Lead as Physical Therapy Shifts Towards Consumerism and Value-based Payments (1) (1) (1) Average 4.8 Starsê 2.5 million+ Unique Patient 9.7 / 80 10 Cases 96% Positive ê Superior Outcomes ê Clinical Guidelines Supported by Real World Evidence Customer ê TelePT optionality and broad
Slide 11: Our Team is Deep, Experienced and Public-Ready
Our Team is Deep, Experienced and Public-Ready ATI Since 2019 LABEED DIAB Chief Executive Officer ATI Since 2018 ATI Since 2006 ATI Since 2014 NATE BARD JOSEPH JORDAN RAY WAHL Chief Growth Officer Chief Financial Officer Chief Operating Officer ATI Since 2019 ATI Since 2016 ATI Since 2019 KATIE KOEN
Slide 12: Our Key Differentiators
Our Key Differentiators 12Our Key Differentiators 12
Slide 13: Key ATI Differentiators
Key ATI Differentiators 1 Large, Growing Industry on the “Right Side” of Healthcare 2 Industry-Leading Platform Driving High-Quality Outcomes 3 Strong Historical Growth and Momentum 4 Unified Brand with Local-Market Strategy Delivering Same-Clinic Growth 5 “Gold Standard” De Novo Clinic Program with
Slide 14: Market Opportunity to Drive Healthcare Cost Savings
Market Opportunity to Drive Healthcare Cost Savings Physical therapy and related services is a $40bn industry in the PT Can Reduce Costs and U.S. and a key component of total musculoskeletal (“MSK”) Improves Outcomes treatment spend U.S. Healthcare Patients who Spend $3.6tn $2,736 participate in PT
Slide 15: We are Leading the Evolution of the Industry
We are Leading the Evolution of the Industry Physical Healthcare 2.0 Physical Therapy 1.0 Consumer-driven Healthcare Referring physician Patients directing more $$; centered communications consumer experience and (1) 9.7 / (1) Average 4.8 Stars 10 96% Positive convenience key to success Integrated C
Slide 16: Deep Focus on the Patient Experience
Deep Focus on the Patient Experience Focus on Outcomes Accessible, Attractive Facilities Team-Based Care Warm, Approachable Staff Extended Hours © 2021 ATI Holdings, LLC 16 16Deep Focus on the Patient Experience Focus on Outcomes Accessible, Attractive Facilities Team-Based Care Warm, Approachable S
Slide 17: Unified National Brand
Unified National Brand The Power of “One Brand” Patients Partners Referral Sources Recruitment Employees ü Brand recognitionü Network ü “Easy choice” due ü Prestige of working ü Shared sense of advantages for to superior clinical for the market purpose and unity ü Word-of-mouth both payors and outco
Slide 18: Proprietary EMR with Unique Data Set
Proprietary EMR with Unique Data Set Diagnosis-specific references covering ü- 90% of patients Comprehensive, detailed patient data Actionable data to improve performance ü- at the clinician level Meaningful outcomes for referring physicians ü- Individualized clinician and payors scorecards — Propri
Slide 19: Platform Delivers Above-Industry Clinical Outcomes
Platform Delivers Above-Industry Clinical Outcomes Patients Met or Exceeded Therapists Met or Exceeded Outcome Completion Their Predicted Improvement Industry Benchmark + 35% 82% + 40% + 7% 75% 57% 50% 47% 35% Industry Benchmark Industry Benchmark Industry Benchmark Significant value proposition for
Slide 20: Platform Infrastructure is Purpose-Built for Scalability
Platform Infrastructure is Purpose-Built for Scalability 2017 - 2018 2020 2018 - 2019 Investment in Clinical Investment in Systems Investment in People Optimization ü Stable, reliable system ü Institutionalized workforce ü Continued improvements in clinical labor management model performance plannin
Slide 21: Growth Strategy
Growth Strategy 21Growth Strategy 21
Slide 22: "Three Pillars" Strategy Driving Robust Growth
“Three Pillars” Strategy Driving Robust Growth Well positioned to deliver organic growth of 10%+ with additional upside from M&A 3 2 Expand Through Execute on “Gold Accretive M&A Standard” De Novo Clinics 1 Acquirer of choice in a highly fragmented industry Sophisticated site selection Optimize Chan
Slide 23: Track Record of Strong Same-Clinic Volume Growth
1 Track Record of Strong Same-Clinic Volume Growth (1) Key Drivers of Same-Clinic Growth Historical Same-Clinic Volume Growth ê Strategies developed at local level, customized to unique conditions and opportunities in 8.0% respective locality ê Utilize salesforce to build relationships with prescrib
Slide 24: Multi-Channel Same-Clinic Volume "Funnel"
1 Multi-Channel Same-Clinic Volume “Funnel” Providers Consumers Direct to Employer — Hyper-local strategy; analytics — Retail convenience with clinics — Leverages outcomes to drive down identifies incremental referral located in highly attractive retail overall healthcare costs opportunities locatio
Slide 25: Case Study: ATI First Direct to Employer Channel Strategy
1 Case Study: ATI First Direct to Employer Channel Strategy Demonstrable Savings Significant Value to ATI ● Leverages clinical expertise and We partnered with a large union in the P Enhanced brand awareness outcomes data to unlock value for Midwest to deliver the right access for employers looking t
Slide 26: New Offerings Expand our Reach
1 New Offerings Expand our Reach Physical “Xperience” National TelePT Expanded New Channels Healthcare 2.0 Initiative Expansion Offerings Partnerships — Digitization and — National capability fully — Demonstrated benefits — Complementary — Opportunity to reinvent automation of the non- built out dur
Slide 27: Our De Novo Clinic Program is Unmatched in the Industry
2 Our De Novo Clinic Program is Unmatched in the Industry Launched ~300 standalone de novo clinics since 2016 with compelling unit economics that continue to outperform our underwriting curves (1) (2) De Novo Clinics per Year Clinic Revenue ($ in millions) 2016 Vintage 92 2017 Vintage $143 2018 Vint
Slide 28: Years of Whitespace in Existing States Alone
2 Nearly 10 Years of Whitespace in Existing States Alone Multi-Year De Novo Clinic Whitespace in Context Whitespace (# of clinics) — Through micro-geographical analytics we have identified whitespace “voids” for 931 potential future de novo clinics 931 ¡ 647 locations in existing regions 875 ¡ 284 o
Slide 29: Our M&A Platform is Ready for Future Acquisitions
3 Our M&A Platform is Ready for Future Acquisitions M&A Upside Supported by History of Highly Fragmented Industry Success and Investments in the Platform (1) ● We have realized highly attractive returns on our acquisitions from ~38,000 Outpatient PT Clinics in the U.S. 2014 to 2016 as we leveraged o
Slide 30: We are Focused on a Range of Targets
3 We are Focused on a Range of Targets Local Regional Platforms Platforms Opportunistic M&A to expand footprint in attractive Local market scale to establish geographic geographies foothold or build market density Investment Thesis Further enhances scale Leverage ATI brand and capabilities to enhanc
Slide 31: Our Operations
Our Operations 31Our Operations 31
Slide 32: Our Operations: Key Elements that Drive our Success
Our Operations: Key Elements that Drive our Success 1 ¡ Patient brand awareness ¡ Provider / physician referral sources Sophisticated Patient Volume “Funnel” ¡ Payor / direct to employer channel ¡ Specialized service marketing focus (e.g. primary, limb loss, other specialties) 2 Effective Human ¡ Sc
Slide 33: Data Driven Approach to Growing Clinic Volumes
1 Data Driven Approach to Growing Clinic Volumes (1) Drivers of ATI Volumes Driving Clinic Volumes We are driving robust clinic volume Survey Question: Through which channel(s) were you made aware of your current PT clinic? growth by moving beyond just the traditional physician referral source relat
Slide 34: Sales Organization Focused on Referral Sources and Employers
Sales Organization Focused on Referral Sources and 1 Employers Selected Initiatives Clinical Involvement in Sales Centralized Systems allow ATI to readily share actionable Referral Sources: Provider & Attorney data between appropriate decision makers 5-mile radius to clinic Patients Physicians sendi
Slide 35: Marketing Strategy to Drive Consumer Awareness
1 Marketing Strategy to Drive Consumer Awareness Selected Initiatives Specialized Service Offering Awareness D2C Channel : Leads, PRM & Patient Experience Centralized systems enable initiatives that promote services across clinics, with incentivized referrals between clinics increasing operational e
Slide 36: ATI is the Employer of Choice for PT Clinicians
2 ATI is the Employer of Choice for PT Clinicians Best-in-class infrastructure built to attract, develop, and retain future leaders in PT Recruitment Partnership — Scale and brand enables access to national network of PT — Unique partnership to further train schools to select the best talent and dev
Slide 37: Our Differentiated Culture
2 Our Differentiated Culture Culture focused on delivering the best experience and outcomes to patients unifies and engages our workforce 90% Our customers would rate the service we deliver as excellent 90% People care about each other here 88% People here are given a lot of responsibility 87% I can
Slide 38: Proprietary Systems to Optimize Clinic Performance
3 Proprietary Systems to Optimize Clinic Performance Operational Dashboard Labor Management Caseload Management ● Real-time clinic level details ● Clinician-level productivity tracking ● Efficiently tracks patient progress ● Enables management to have ● Enables discussions on staffing ● Improves cli
Slide 39: Clinical Labor Initiatives
3 Clinical Labor Initiatives Transformation of Operations Function via a 3-Phased Approach Phase 1: 2019 Phase 2: 2020 Phase 3: 2020-2021 & Ongoing Organizational Structure Labor Mix Productivity — Operations leadership delayering and — Establish frameworks focused on — Establish labor model that op
Slide 40: Leveraging Value Proposition to Drive Results with Payors
4 Leveraging Value Proposition to Drive Results with Payors Leadership with Deep Payor Experience Momentum in the Shift to Value — New team focused ATI Since 2019 on segmenting and ü Moved in-network prioritizing payors based on profitabilityü Improved rates National JOE ZAVALISHIN Payor — Build rel
Slide 41: De Novo Clinics Deep Dive
De Novo Clinics Deep Dive 41De Novo Clinics Deep Dive 41
Slide 42: De Novo Clinic Economics are Highly Accretive & Predictable
De Novo Clinic Economics are Highly Accretive & Predictable Typical De Novo Clinic Characteristics Typical Unit Economics CapEx (Renovations, Equip.) $200 - 300K ● Clinics are generally located in urban, well-trafficked areas st ● Average clinic is ~3,100 sq. feet staffed with four clinicians Upfron
Slide 43: We've Built Proprietary Systems to Identify Future Sites
We’ve Built Proprietary Systems to Identify Future Sites Proprietary Logic Data Aggregation Analytics Actionable Data For: De Novo Clinic Planning ê Leverage Both Bottoms-Up and Top-Down Analyses Physician Referral Targeting ê Address opportunities at a 1x1 square mile level Competitor Analysisê Cro
Slide 44: Location Planning and Selection
Location Planning and Selection Example De Novo Clinic Prospect Example Retail & Trade-Area Analytics: Detailed Visuals: Competition Cluster Signage Opportunity © 2021 ATI Holdings, LLC 44 44Location Planning and Selection Example De Novo Clinic Prospect Example Retail & Trade-Area Analytics: Detail
Slide 45: Case Study: Establishing a Strong Position in the Washington D.C. Market
Case Study: Establishing a Strong Position in the Washington D.C. Market via De Novo Clinics With established Baltimore presence, capitalized on compelling opportunity to enter nearby Washington D.C. market via accretive de novo clinics Geographic Presence Revenue / Clinic ($ in ‘000s) 7,904 Revenue
Slide 46: Acqui-Novo Strategy Overview
Acqui-Novo Strategy Overview Flexibility to Maximize Accretion to the Platform — Complements our de novo clinic strategy by adding — Rebrand existing clinic talent, relationships, and local market expertise P Established presence and — Significant opportunities in the U.S. with >17,000 patient base
Slide 47: Financial Overview
Financial Overview 47Financial Overview 47
Slide 48: Track Record and Outlook for Robust Organic Growth
Track Record and Outlook for Robust Organic Growth (1) Revenue Adj. EBITDA ($ in millions) De Novo Clinics / Acqui- Novos (’22E-’25E): 470 $1,242 $268 $1,122 De Novo Clinics / Acqui- $235 Novos (’18A-’21E): $1,007 270 $203 $903 $175 (2) $785 $155 $739 $731 $128 $119 $592 $94 $64 2018A 2019A 2020A 20
Slide 49: Clear Path to $200+ million of Adj. EBITDA and Beyond
(1) Clear Path to $200+ million of Adj. EBITDA and Beyond ($ in millions) Significant upside through opportunistic Embedded EBITDA upside M&A in pipeline not from predictable de novo included in projections clinic ramp to maturity 1 2 Includes mature Deep pipeline to clinic growth and support 90+ de
Slide 50: Visibility into $175mm 2022E EBITDA
Visibility into $175mm 2022E EBITDA (1) EBITDA Driver Commentary Impact 1 Same store growth within existing ¡ ~3% annual EBITDA growth driven by top-line growth and ~$12mm Existing mature clinics (2017 and prior) SG&A leverage Clinics Growth Maturity of 2018 and 2019 de novo ¡ Clinic contribution in
Slide 51: Transaction Details
Transaction Details ($ and shares in millions except for per share items) Enterprise Valuation Sources and Uses Share Price $10.00 Sources $ % Total Shares 207.7 Cash in Trust $345 17% Common Equity to PIPE Investors 300 14% Equity Value $2,077 (7) Plus: Pro Forma Net Debt 373 Common Equity to Prefe
Slide 52: Appendix
Appendix 52Appendix 52
Slide 53: Summary Historical and Projected Financials
Summary Historical and Projected Financials Return to Normalized Volumes ($ in millions) '19A-'22E CAGR 2018A 2019A 2020A 2021E 2022E 2023E 2024E 2025E Revenue $739 $785 $592 $731 $903 $1,007 $1,122 $1,242 4.8% (1) Clinic-Level Expenses 576 579 458 525 636 708 788 871 % of Revenue 78.0% 73.7% 77.4%
Slide 54: Public Company Benchmarking
Public Company Benchmarking EV / 2022E ’19A-’22E ’19A-’22E Adj. ‘22E Adj. Company (1) (1) (1) Adj. EBITDA Revenue Growth EBITDA Growth EBITDA Margin 14.0x 4.8% 12.3% 19.3% 18.6x 1.3% 0.4% 14.7% 25.0x 6.2% 14.8% 14.7% 18.3x 4.6% 13.9% 13.3% 17.5x 5.6% 7.1% 10.9% ___________________________ Source: Pu
Slide 55: ATI's Financial Metrics Versus its Peers
ATI’s Financial Metrics Versus its Peers Physical Therapy Other High Growth, High Value Providers Financial Projections (1) 12.3% 0.4% 14.8% 13.9% 7.1% '19-'22E Adj. EBITDA CAGR 2022E Adj. EBITDA Margin 19.3% 14.7% 14.7% 13.3% 10.9% Historical Metrics 2019A Total Capex + M&A as a % of Revenue 5.5% 1
Slide 56: Long-term Alignment of Interests: SPAC Sponsor Promote Restructured as Earn-Out
Long-term Alignment of Interests: SPAC Sponsor “Promote” Restructured as “Earn-Out” Size Structure Vesting Schedule 33% @ $12.00 / share Sponsor Promote Shares 8.625mm 33% @ $14.00 / share 33% @ $16.00 / share 50% cancellation of 5.933 million Sponsor Warrants 2.967mm outstanding private warrants Ve
Slide 57: ATI Will be One of Two Pure-Play Public PT Companies
ATI Will be One of Two Pure-Play Public PT Companies in a Highly Fragmented Field of Private Companies (1) ($ in millions) JVs with Owned Clinics Clinic Model Regional/Local with Unified 100% owned clinic model enables unified branding Brands National Brand Clinics 554 875 Large, independent pure-pl
Slide 58: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 2018A 2019A 2020A ($ in millions) Income (Loss) Before Income Taxes ($55) ($34) $2 Net Income Attributable to Non-Controlling Interests (4) (4) (5) Interest Expense, Net 73 77 69 Interest Expense on Redeemable Preferred Stock 13 16 19 Depreciation & Amortization 38 39
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