InfuSystems Holdings, Inc. · AMEX:INFU
InfuSystems — HAPC — SPAC Merger (January 2007)
20 slides from InfuSystems's SPAC merger presentation, Jan 8, 2007
Slide 1: HAPC, Inc. Investor Presentation: Discussion of Proxy Materials
Exhibit 99.1 HAPC, Inc. Investor Presentation Discussion of Proxy Materials January 2007
Slide 2: Disclosure
Disclosure The attached presentation was filed with the Securities and Exchange Commission (“SEC”) as part of the Form 8-K filed by HAPC, Inc. (“HAPC”) on January 8, 2007. HAPC is holding presentations for its stockholders regarding its purchase of InfuSystem, Inc. (“InfuSystem”). A copy of the comp
Slide 3: Safe harbor
Safe harbor This presentationmay contain forward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995, about HAPC,InfuSystem and their combined business after completionof the proposedtransaction. Forward-looking statements are statements that are not historic
Slide 4: Acquisition details
Acquisition details Buyer: HAPC, Inc. (OTCBB: HAPN, HAPNW, HAPNU) Target: InfuSystem, Inc., a leading provider of ambulatory pumps and services to medical oncologists and their patients in the United States Seller: I-Flow Corporation (NASDAQ: IFLO) 1 Consideration: $140 million (subject to certain w
Slide 5: Proxy proposals for shareholder vote
Proxy proposals for shareholder vote The board of directors recommends a vote FOR each of the following proposals Proposal 1: The Acquisition To approve the acquisition by Acquisition Sub of all of the issued and outstanding capital stock of InfuSystem pursuant to the Stock PurchaseAgreement, dated
Slide 6: InfuSystem Acquisition Timeline and Future Events
InfuSystem Acquisition Timeline and Future Events History of Acquisition 09/29/06 HAPC and I-Flow enter into a stock purchase agreement for all of the issued and outstanding capital stock of InfuSystem, Inc. - HAPC will pay I-Flow an aggregate of $140 million, subject to certain working capital adju
Slide 7: InfuSystem Overview
InfuSystem Overview Subsidiary of I-Flow (NASDAQ: IFLO) The leading provider of ambulatory infusion pumps for oncologists and their patients in the US. Its pumps are currently used primarily for the continuous infusion (CI) of chemotherapy drugs for patients with colorectal cancer. InfuSystem intend
Slide 8: Advantages of Continuous Infusion
Advantages of Continuous Infusion CI allows for gradual administration of a drug via a small pump over two to seven days as opposed to the traditional higher dose chemo treatments (bolus treatments) given over the course of minutes or hours. - CI is an improvement in both efficacy and comfort for pa
Slide 9: Management team after successful completion of acquisition
Management team after successful completion of acquisition Steve Watkins, CEO - One of the founders of InfuSystem; started the company in 1986 - Former VP of Aventric Medical, Inc., a Midwest distributor of high tech equipment Erin Enright, Acting CFO - CEO of Lee Medical, a medical products company
Slide 10: Investment highlights
Investment highlights Leader in growing market Unique business model - Compelling value proposition - Competitive advantages Strong relationships with physician offices and payors Opportunity to expand to other cancer treatments Strong growth and profit margins
Slide 11: Leader in growing market
Leader in growing market 1 148,610 estimated new cases of colorectal cancer (“CRC”) in the U.S. in 2006 Introduction of CRC treatment protocols FOLFOX (Sanofi) and FOLFIRI (Pfizer) in 2004 Continuous infusion regimens are achieving increased acceptance and are becoming a market standard chemotherapy
Slide 12: Representative growth of continuous infusion
Representative growth of continuous infusion Increasing usage of FOLFOX protocol Sales of Eloxatin (Oxaliplatin) $ in millions utilized in FOLFOX protocol with 5-FU and leucovorin $2,000 $1,800 $1,600 $1,400 $1,200 $1,750 $1,000 $1,517 $800 $932 $600 $400 $200 $368 $130 $194 $- 2000 2001 2002 2003 2
Slide 13: Compelling value proposition
Compelling value proposition Professional service fees Better patient outcomes Continues relationship with Continuity of care patient Physicians Reduces side effects Less administrative demands Comfort and convenience Lower cost Patients Payors Lower costs Better patient outcomes
Slide 14: Competitive Advantages
Competitive Advantages Home care Regional DME Providers Takes revenue from No significant scale physician office Limited pump selection More costly for patients Limited insurance and payors contracts Less convenient for patients InfuSystem is a leading national provider of ambulatory infusion pump s
Slide 15: Strong relationships with physician offices and payors
Strong relationships with physician offices and payors Relationships with approximately 60% of oncology practices - Opportunity to penetrate deeper within practices (more physicians) and expand product offerings Contracts covering approximately 65% of managed care “lives” - Include Aetna, PacifiCare
Slide 16: Expansion opportunities
Expansion opportunities Extend continuous infusion therapies to other cancers - Liver and esophageal cancer are growing parts of InfuSystem’s business - Recent drug approvals for lung, gastric, breast, leukemia, non-Hodgkins lymphoma, and other cancers - Several new drugs in development Potential di
Slide 17: InfuSystem Historical Revenue Performance
InfuSystem Historical Revenue Performance $, thousands 22.4% CAGR $30,000 $28,525 $25,000 $20,000 $19,349 $15,000 $10,000 $13,022 $10,292 $10,363 $5,000 $- 2001 2002 2003 2004 2005
Slide 18: InfuSystem Operating Income Performance
InfuSystem Operating Income Performance $, thousands Operating Income 32.0% CAGR Margin $9,000 30.0% 28.3% $8,000 $8,081 25.0% $7,000 21.5% 19.5% 24.0% $6,000 20.0% $5,000 15.0% $4,652 $4,000 14.6% $3,000 10.0% $2,000 $2,081 $2,211 5.0% $1,899 $1,000 $- 0.0% 2001 2002 2003 2004 2005
Slide 19: InfuSystem Financial Performance
InfuSystem Financial Performance Year End 9 Months Ending LTM Period USD's in millions 12/31/2005 9/30/2005 9/30/2006 9/30/2006 Revenues $ 28.5 $ 21.4 $ 23.5 $ 30.6 Cost of Sales 7.7 5.7 6.3 8.3 Gross Profit 20.8 15.7 17.2 22.3 Gross Margin 72.9% 73.3% 73.3% 72.9% Sales and Marketing 4.3 3.2 2.7 3.8
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation Year End 9 Months Ending LTM Period USD's in millions 12/31/2005 9/30/2005 9/30/2006 9/30/2006 Net Income $ 5.1 $ 4.2 $ 3.9 $ 4.8 plus: Interest Expense 0.1 0.0 0.1 0.1 plus: Income Tax Provision 2.9 2.4 2.2 2.8 plus: D&A 3.3 2.4 2.7 3.7 EBITDA $ 11.3 $ 9.0 $ 9.0 $ 11.4 plus: S