Conmed Healthcare Management Inc
Conmed Healthcare Management — Investor Presentation (June 2009)
27 slides from Conmed Healthcare Management's investor presentation, Jun 23, 2009
Slide 1: Conmed Healthcare Management - Correctional Healthcare Services
Exhibit 99.1 HEALTHCARE Co n mM e MANAGEMENT Correctional Healthcare. Services (CMHM.OB) June 2009
Slide 2: Forward Looking Statements
Forward Looking Statements Conmed tiinasinntt This presentation may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements with respect to the company's plans, objective
Slide 3: Our Vision
Our Vision Conmed tinieenttt * To be recognized for programs and services of value * To provide niche services and unique offerings to serve the discrete needs of our customer * To avoid competing on price and avoid situations that do not serve mutual interest * To enhance the Conmed brand for disti
Slide 4: Investment Highlights
Investment Highlights Conmeditatacevent * Unique Financial Model--100% historical customer retention and 100% recurring revenues * Approximately $52 million annualized run-rate as of March 31, 2009 * Clean capitalization—12.5 million common shares outstanding with no preferred share classes, 16.6 mi
Slide 5: Company Progress
Company Progress Counties 33 Revenue $2 41 17 HEALTHCARE Conmed init Growth in 2 Years 2006 + 18 Counties in 4 states * Revenues of $16.8 million 2008 + 33 Counties in 6 states + Annualized revenue run rate of $52 million as of March 31, 2009
Slide 6: Consistent Revenue Growth
HEALTHCARE Conmed tiinastentt Consistent Revenue Growth Annual Running Rate | eoto 80rd BOED B0zD B0TD zor ZOED zoz0 ZovD oro 90€0 Quarterly Revenue
Slide 7: Revenue & Gross Profit Growth
Revenue & Gross Profit Growth Conmed tiiiiitt Gross Profit Quarterly Revenue 60TO. 07D 8080 8070 s0To Zopo 20D £020 £070 90D S0eD 60TO Boro 80£D ~ g0ZD 80ro £070. | LED £070 Z0TO 9070. 90€D
Slide 8: Operating Expenses
Operating Expenses Conmed tiinncenetr Selling, General & Amortization & Administrative Expense Depreciation 25.0% 14.0% % % 12.0% » 20.0% A f ¢ 10.0% 5 150% 8.0% 5 10.0% , 6.0% e 2 4.0% 1 0 7 ous u 2.0% e e 0.0% 0.0% Qi07 207 307 Q407 Q108 208 0308 408 109 Q107 Q207 0307 0407 Qi108 Q208 Q308 Q408 qQ
Slide 9: Economies of Scale
Economies of Scale 2007 2008 Gross margin 18.6% 18.3% SG&A* 15.4% 14.3% Adjusted EBITDA 3.3% 4.0% * Excluding equity based compensation HEALTHCARE Conmed tina Revenue $75M 19-21% 12% 7-9% Revenue $100M 19-22% 11% 8-11%
Slide 10: Corporate Overview
Corporate Overview Conmed tinct * Correctional healthcare services - 25 year history — 45 adult and juvenile detention facilities, — 33 counties — 14,200 inmates — 800 Physicians, Nurses and other professionals * Maryland based, serving Arizona, Kansas, Oregon, Virginia, Washington * Recognized as a
Slide 11: Suite of Services
Suite of Services Occupational Medicine Services Out-of-Facility Services In-Facility Ancillary Services Dental Services Behavioral Health Medical Staffing HEALTHCARE MANAGEMENT
Slide 12: Our Business
Our Business Conmed tiinasinntt e Providing cost-effective, high quality compliant healthcare services to county and municipal detention facilities. e Enable counties to satisfy a U.S. Constitutional obligation (8 Amendment) to provide healthcare services e Unique financial model positioned for rapi
Slide 13: Our Niche
Our Niche HEALTHCARE Conmed tiinastentt County and Municipal facilities, rather than state or federal prisons - Lower rate of litigation - Younger inmate population — generally better health - Acute vs. Chronic conditions - Less catastrophic care - Shorter inmate stays Local vested decision makers w
Slide 14: Market Opportunity
Market Opportunity Over 700,000 Inmates in County Jails HUSTotal = Conmed 2% HEALTHCARE Conmed fies 3,142 counties in the U.S. Overall healthcare spending for this inmate segment is currently at ~ $10.31 per inmate per diem (or ~ $2.7 billion annually) No direct correlation to economic cycles Outsou
Slide 15: Growth Drivers
Growth Drivers Strategically Positioned { Escalation of Inmate Healthcare Costs Experienced Management Team HEALTHCARE Conmed tint Multi-billion dollar market — recession resistant Exclusively County adult and juvenile detention centers County and municipal governments seeking cost- effective soluti
Slide 16: Growth Strategy
Growth Strategy Conmedtinnctt * Deeper penetration into existing accounts with additional services * Additional contracts with new facilities * Mental Health practice offered as a stand-alone service, or integrated with somatic service offerings * Acquisitions of accretive regional correctional heal
Slide 17: Major Contract Win - Pima County, AZ
Major Contract Win - . Conmed teazicate Pima County, AZ MANAGEMENT Total value of $19 million, announced August 7, 2008 Twenty-three month full-service contract with Pima County, Arizona Services commenced August 1, 2008 Conmed’s largest contract in terms of annual revenue and inmate population Enco
Slide 18: Acquisition of Correctional Mental Health Services, LLC
Acquisition of Correctional Mental Health HEALTHCARE Services, LLC (CMHS) — November 4, 2008 Conmediticent * CMHS provides Behavioral Health services to 13 counties in Maryland * $2.2 million in total consideration, ($1.8 million cash) * CMHS currently employs or contracts with 24 professionals. * R
Slide 19: Balance Sheet - Assets
Balance Sheet - Assets Conmed tinieenttt Mar. 31, 2009 Dec. 31, 2008 CURRENT ASSETS Cash and cash equivalents $ 8,285,126 $ 7,472,140 Accounts receivable 2,925,592 2,375,583 Prepaid expenses 139,021 291,599 Total current assets 11,349,739 10,139,322 PROPERTY AND EQUIPMENT, NET 511,296 529,304 DEFERR
Slide 20: Balance Sheet - Liabilities and Shareholders' Equity
Balance Sheet - Liabilities and . Conmed Hiastitare Shareholders’ Equity MANAGEMENT Mar, 31, 2009 Dec. 31, 2008 CURRENT LIABILITIES Accounts payable $ 1,353,204 $ 1,080,259 Accrued expenses 3,549,171 3,210,749 Taxes Payable 179,283 432,380 Deferred revenue 640,295 561,734 Notes payable, current port
Slide 21: Operating Highlights
Operating Highlights Conmed tienistienr * $154 million in signed contracts with weighted average duration of 4.3 years as of March 31, 2009 $29 million initial period (typically one-, two-, or three-year contracts) $125 million in renewal extension periods (typically in one-year or two-year clusters
Slide 22: Adjusted EBITDA
Adjusted EBITDA Conmed tiinncenetr Three Months Ended March 31, 2009 2008 Service contract revenue $ 12,419,241 $ 7,836,250 Total healthcare expenses 9.753,992 6,364,051 Gross profit 2,665,249 1,472,199 Selling, general and administrative expenses 1,815,527 1,589,012 Depreciation and amortization 62
Slide 23: Financial Model
Financial Model Conmed tinienttt Leveraged Recession Financial e Resistant Model Little investment Ooh required for a organic positive ar:
Slide 24: CMHM Ownership
CMHM Ownership Conmed tiinncenetr Common Options & (as of June 9, 2009) Shares Warrants Total DIRECTORS AND OFFICERS: John Pappajohn 2,558,342 40,000 2,598,342 All other Directors and Officers 508,334 1,331,334 _ 1,889,668 All directors and named executive officers as a group 3,066,676 1,371,334 _ 4
Slide 25: Experienced Management
Experienced Management Conmed tinct Richard W. Turner, PhD — Chairman and Chief Executive Officer With Conmed and predecessor PACE since May of 2006; served as President and CEO of Eyetel Imaging since January 2004. Previously served as President and CEO of BE! Medical, President of the Healthcare G
Slide 26: Conclusion
Conclusion Conmed tinieenttt * Large, growing market * First public company within our industry, addressing a highly fragmented market * Highly scalable infrastructure * Strong recurring revenue stream * Generating consistent growth and free cash flow
Slide 27: Conmed Healthcare Management, Inc. (CMHM.OB)
HEALTHCARE Conmed tiinastentt Conmed Healthcare Management, Inc. (CMHM.OB)
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