Medical Facilities Corporation · TSX:DR
Medical Facilities — Investor Presentation (April 2017)
19 slides from Medical Facilities's investor presentation, April 2017
Slide 1: Medical Facilities Corporation Investor Presentation April 2017
MEDICAL FACILITIES CORPORATION INVESTOR PRESENTATION APRIL 2017 TSX: DR
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario) and other provincial securities law in Canada. These forward- looking statements include, among o
Slide 3: Transforming U.S. Healthcare Landscape
Transforming U.S. Healthcare Landscape Other Specialty Clinic Acute Care Hospital Home Healthcare (~5,600) Ambulatory Imaging Surgery Center Clinic (~5,300) MFC TODAY Specialty Surgical Urgent/Primary Hospital (~235) Care Center 3
Slide 4: Multiple Payment Sources
Multiple Payment Sources Other Payors 8% Investment Medicare 5% 20% Public Health 3% 2014: Out-of-Pocket 11% $3 40% Public Health TRILLION Insurance Medicaid 16% Private Insurance Other Public 33% 4% Source: “Payment Sources, 2014” Health Care Costs 101, California Health Care Foundation, 2016 4
Slide 5: Growing Demand for Healthcare
Growing Demand for Healthcare (millions) (US$ billion) 400 5,000 DRIVERS: Overall population growth National Health Expenditure 4,000 300 Aging population Population 3,000 Healthcare reform 200 expanding coverage 2,000 100 1,000 0 0 2010 2015E 2020E Under 45 years 45 to 64 years 65 years and o
Slide 6: Changing Healthcare Industry Driving Acquisition Opportunities
Changing Healthcare Industry Driving Acquisition Opportunities Greater need for efficiency and scale among healthcare providers Independent centers requiring scale to drive margin improvement Portfolio rebalancing as a result of consolidation or service realignment makes attractive assets avai
Slide 7: MFC: A Quality Healthcare Provider Well-Positioned for Growth
MFC: A Quality Healthcare Provider Well-Positioned for Growth Majority ownership in five specialty surgical hospitals and one ambulatory surgery center • Specialty Surgical Hospitals: 48 operating rooms and 156 overnight rooms • Ambulatory Surgery Center: 2 operating rooms 2016 Revenue: US$339.5
Slide 8: MFC Specialty Surgical Hospitals
MFC Specialty Surgical Hospitals Our physician owned hospitals benefit from direct physician involvement in 2 facility management resulting in SUPERIOR PROCESSES AND EFFICIENCIES 1 Specialty surgical hospitals have 1 1 consistently demonstrated HIGHER PATIENT SATISFACTION ratings resulting from HIGH
Slide 9: Well-Situated in Current Markets
Well-Situated in Current Markets Situated in geographic regions that have proven to be resilient against challenging economic environments MFC physicians and staff are integral part of our success, they provide patients with innovative treatments and optimal service Unemployment Rate (%)1 U.S. Arkan
Slide 10: Strict Acquisition Criteria
Strict Acquisition Criteria Change pic to something less similar Physician alignment or High quality and optimum Opportunity for growth affiliation clinical outcomes (demographics, location) Continued strong earnings 10
Slide 11: Financial Review
FINANCIAL te REVIEW ida
Slide 12: Factors Driving Our Results
Factors Driving Our Results Revenues Operating Margins Case Counts Salaries & Benefits Level Case Mix of Drugs & Supplies (incl. implants) Revenue Payor Mix General & Administrative Ancillary Services 12
Slide 13: MFC Payor Mix – 2016
MFC Payor Mix – 2016 Blue Cross/ Medicare/ Workers’ Other Private Other Blue Shield Medicaid Compensation Insurance 7% 8% 14% 34% 20% 35% 7% 8% 38% 29% GROSS BILLINGS NET REVENUE 13
Slide 14: Operating Results – Q4 2016
Operating Results – Q4 2016 Q4 2016 Q4 2015 Change % (US$ millions, except where noted otherwise) REVENUE 108.0 89.8 20.3% INCOME FROM OPERATIONS1 25.3 27.8 (9.0%) OPERATING MARGIN 23.4% 31.0% (24.5%) CASH AVAILABLE FOR DISTRIBUTION2 17.8 12.6 41.3% (C$ MILLIONS) PAYOUT RATIO2 49.0% 69.7% (29.7%) 1.
Slide 15: Solid Financial Position – Q4 2016
Solid Financial Position – Q4 2016 Consolidated Balance Sheet (US$ millions) Cash & Cash Equivalents, Short- Subsidiary Debt Current Term Investments $59.6 $76.9 (including current portion) Assets Other Current Assets $79.7 $79.9 Corporate Level Debt Total Liabilities Other $121.5 Liabilities Non-Cu
Slide 16: Strong Cash Flow
Strong Cash Flow Distributions Cash Available for Distribution Cash Available for Distribution (including realized gains/losses on FX forward contracts) (Excluding realized gains/losses on FX forward contracts) (C$ millions) 51.9 50.7 50.7 45.9 69.0 % 43.3 40.8 40.8 41.4 37.8 35.7 34.4 35.3 35.2 34.
Slide 17: Key Strengths
Key Strengths • Well-located facilities providing stable cash flows • Favorable industry growth drivers • Experienced, entrepreneurial management team • Resources in place to execute on growth strategy 17
Slide 18: Board of Directors
Board of Directors Marilynne Day-Linton, CPA, CA David R. Bellaire Chair of the Board of Directors Operating Partner, Waud Capital Partners Stephen Dineley, FCPA, FCA Irving R. Gerstein, C.M., O.Ont Corporate Director Corporate Director Dale Lawr, CPA, CA Jeffrey C. Lozon Corporate Director Corporat
Slide 19: Capital Markets Profile (as at March 28, 2017)
Capital Markets Profile* (as at March 28, 2017) Stock Symbol: TSX: DR Shares Outstanding: 31.0 million Price: $18.93 52-Week Low / High: $15.50/$23.45 Market Capitalization: $586.8 million Annualized Distribution (per share): $1.125 Current Yield: 5.9% Payout Ratio (TTM):** 69.0% *All figures in dol
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