Alliance HealthCare Services Inc
Alliance HealthCare Services — Investor Presentation (May 2016)
27 slides from Alliance HealthCare Services's investor presentation, May 25, 2016
Slide 1: Alliance HealthCare Services
Exhibit 99.1 Alliance NASDAQ: 1May 25, 2016 HealthCare AIQ Services
Slide 2: Disclaimer
During Disclaimer changes identify expectations in statements 2statements, the Company’s the these in made laws course whether and statements and during are Form ofas regulations subject this a10-K this result by presentation, words presentation tofor of aand number the new such the year information
Slide 3: Alliance HealthCare Services Today
Alliance Partnering Hospitals 1,000 $473MILLION In Complementary The Track YEAR 30 OVER 3Hospital-centric revenue adjusted leading record HealthCare and with & EBITDA provider of $131MILLION healthcare successful over business businesses Services in of Fiscal radiology, providers model partnering al
Slide 4: Alliance's history of innovation and growth
Alliance’s A 1983 HOT THAI Company Founded Formed Building 2001 Innovator Expanded Established Grew 4Achieved compelling 2001 – Customer 2012 Formed NYSE aRadiology in Debut Capabilities Evolution Leading 2005 Operational Mobile 2013 history Base Oncology Shareholder 2013 on–Platform Alliance 2016 D
Slide 5: Favorable Macro Healthcare Trends
1532 US Legacy Favorable ($ Hospital $1,396 $97.8 Cancer Increased 2014 in billions) 2020E Elderly Increasing incidence of Centers Centric expenditures patient Macro hospital Alternative Departmentpopulation National for Business flows Healthcare estimated share partnering Medicare projected Cancer
Slide 6: Key Reasons Hospitals Outsource
Reasons Key Cost Revenue Expertise of 6Add Partner 5aSavings Reasons New Hospitals Request Physicians Service Enhancement for by Outsource? Outsourcing Line Patient Care Services
Slide 7: Blue Chip Customer Base
Blue Chip Customer Reference-able 7Base existing relationships provide credibility to support growth.
Slide 8: Positioned for Significant Growth
Positioned significant Radiology Services Market Growth AIQ Alliance 82016, Revenue both Size ~2% Rate is Radiation achieved opportunity for organically a ~$15 Annually market ~$340 Growth Billion 8%leader Oncology Million year-over-year ~7% and for~$8 organic incremental inAnnually ~large Billion $
Slide 9: Alliance Core Radiology Business
Alliance Core Long-term, Market looking in Generally $15 601 radiation Over 112 20 ACA Outstanding clinical care Existing strong stable 9and solutions the joint health fixed billion diagnostic existing business 5,500 implementation Radiology free EBITDA leader quality for ventures footprint Radiolog
Slide 10: Accelerating Oncology Growth
510 Alliance Accelerating Long-term, Fully partner Generally $8 32 7619 integrated toopportunities billion Significant outsourcing services Increase marketing upgrade Develop market complete strategic Business – Oncology radiation hospital hospitals 10 economically free growth; years atcancer addres
Slide 11: Synergistic Interventional Growth
Alliance Synergistic $11 growing Highly Market reimbursement JV geographic Ambulatory Acquired and Incremental Post services Expansion Management interventional experience the CEO SVP President 11 partnerships existing PRC Billion acquisition of Tom fragmented Sales share like at Interventional Asso
Slide 12: Near-Term Growth Drivers
112 acquisitions Near-Term Drive Store Capitalize relationships marketing business Tailored local Management Cross-sale opportunities additional existing Growth retention and market Growth Same through customers IMV approach development and services on and facilities Growth RAD360TM needs across Ser
Slide 13: Return to Growth
Return –»Launched growth Positive Growth Annual Q/Q 4% Guidance $505—$535 $473 $121 $449 $109 FY13 $105 14 13In15 Continued Mid-point 7% 2013, Growth $119 $436 $111 14 FY14 to 10% Revenue despite momentum 15 Growth $124 in sold $110 14 of FY15 progress 2014, 13%2016 24/7 15 $124 pricing $110 Quarter
Slide 14: Revenue Diversification by Segment
Focus Revenue 2013 7% 17% 21% 83% 66% Radiology 14 4%21% 30% 72% 2015 on By Diversification capital 79% Oncology 2013 Segment 2015 allocation Interventional Segment to higher Contribution growth segments to EBITDA improves equity story over time.
Slide 15: Strong Free Cash Flow Generation
Significant Strong H over »W Free Net ~$60 600 98 625 reduction 575 net 96 1. 2015 2011 450 90 475 62.4% 92 500 72% 525 94 550 2. 3. is 4. expense; related includes 15 istorical ell defined Adjusted Free Net debt Debt the Cash positioned million Debt cash to cash last non-cash amortization acquisiti
Slide 16: Targeted Free Cash Flow Investments
Targeted »2014-2015 Free 120 140 560 -100 20 460 40 480 60 500 80 FY13 CAPEX 16 440 Increased Disciplined Near-term 540 520 Cash FY14 Acquisitions Investments Flow we Maintenance FY15 increase Growth invested NetFY13 Debt inCAPEX more leverage, FY14 CAPEX, heavily investment FY15 with butinwill long
Slide 17: Momentum for Growth in Adjusted EBITDA
Growth A for Adjusted 140 160 120 02136 20 40 60 80 100 17 013 combination a131 147 compelling 2014 Momentum Guidance EBITDA 2015of2016 return sales Guidance Building & to business growth indevelopment both Revenue execution, and EBITDA and targeted investment, has set the stage
Slide 18: FY2013-FY2015 Adjusted EBITDA Bridge
FY2013-FY2015 Return Development, actions FY13-FY15 150 160 $147 $1 140 130 $136 $15 18 100 110 120 $2 $8 $131 $5to $2 $10 in$2 growth the $2 EBITDA Radiology RAD360TM strategy EBITDA Bridge market required Bridge capabilities, ($M) to maintain both CAPEX and share. newand partnerships. Op Ex invest
Slide 19: Fujian Thai Hot Transaction
Positioned Transaction 51.5% of outstanding Alliance Appointed Thai About exceed pharmaceutical $13 Billion Total marketplace International Experience Broad value 19 shares In Hot assets proposition expertise Fujian 2015, Investment and did Shares has Qisen for oncology, International under Chairman
Slide 20: Significant Majority Shareholder: Fujian Thai Hot
Significant Fast Fujian Ltd company estate China 1996 founded In Qisen and Hot Exchange Securities $13B billion 2015 (~51.5%) Healthcare Diversified Real assets: hospitality, 20 early is Chairman of Facts estate Fujian Majority Total developers an Huang one listed Thai the as2015, in investment base
Slide 21: New Board Representatives
New Qisen Founder Chairman Non-Executive Representative Fujian Founded Previously, as Earned Worked Dr. Heping Serves Senior Held Independent BA Accountant 21 the Tao Zhang inAIQ various full-time Accounting Huang engineering Haixia Advisor as his Feng Zhang at and United the Board and also CITIC MD
Slide 22: First Quarter 2016 Results
First ?Reported 1Q’16 Revenues Adjusted Radiology Oncology Interventional Operating 22from Quarter Q1EBITDA On $123.7M Adjusted Revenue Cash 2015 Adjusted Revenue 2016 May Adjusted Revenue Flow 5th Results $30.4M $26.1M EBITDA +13.1% $85.6M EBITDA $22.7M for $11.7M EBITDA quarter +0.9% +7.8% +5.2% $
Slide 23: Adjusted EBITDA Reconciliation
Three 2016 Net Alliance Income Interest Depreciation Amortization Share-based general Severance Non-controlling Restructuring Transaction Shareholder Impairment Legal Non-cash Other other Adjusted 23 (loss) ($) income (income) matter non-cash Months and tax expense HealthCare 2015($) EBITDA gain inc
Slide 24: Clear Investment Thesis
Clear Powerfully Hospital Business providing service »hospital future consolidate hospital-based 24 networks ACA Integrated Positioned Investment asdriven lines customer and Centric providers Model multiple Aligned around model provider to for macro proposition Radiology, the Platforms Market Thesis
Slide 25: Compelling Relative Valuation
Compelling Relative shareholder overhang strategic, (Current) segment with »2015 5CY 2growth EBITDA Note: 1. depreciation expenses non-cash 2. 3. 25 Recent New Price Growth consecutive Alliance Radiology Includes 2015 expectations EBITDA All majority reset P/E to has change losses related growth. no
Slide 26: 2016 Guidance
2016Debt Guidance ($’s Revenue Adjusted Capital Maintenance Growth Net Change Decrease/(Increase) change investments costs), 26 inGuidance millions) before after in Expenditures in $45—$55 $505—$535 EBITDA Ranges cash Net growth inApproximately growth Debt acquisitions and $130—$150 cash capital in
Slide 27: Thank You
Thank You www.alliancehealthcareservices-us.com
Alliance HealthCare Services — Investor Presentation (May 2016) on 6ix