Liberator Medical Holdings Inc
Liberator Medical — Q2 FY2014 Earnings Presentation
14 slides from Liberator Medical's earnings presentation, Jun 26, 2014
Slide 1: Investor Relations Presentation Q2 FY 2014 (March)
MEDICAL UP ,, SUPPLY, INC. INVESTOR RELATIONS PRESENTATION Q2 FY 2014 (March)
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments co
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Leading Direct-to-Consumer provider of medical supplies targeting high growth, chronic condition verticals of Urology, Ostomy, Mastectomy, and Diabetes Proven advertising-driven business model that yields approximately 6x revenue return on ad spend and 85%+ recurring sales from
Slide 4: Company Timeline
Mark Libratore founds Liberty i Medical Supply, Inc. Liberty Medical Supply is acquired by PolyMedica Corporation Mark Libratore leaves Liberty to found Liberator Liberty Medical TIMELINE 1989 1996 1999 2000 2007 2008 2010 Medicare changes catheters Liberator listed on the OTC:BB under LBMH Liberato
Slide 5: Target Markets
TARGET MARKETS Urological Ostomy Mastectomy Diabetes (77% of TTM Revenue) (17% of TTM Revenue) (5% of TTM Revenue) (1% of TTM Revenue) PRODUCTS Disposable catheters, Ostomy, ileostomy, and Prosthetic and special Diabetes testing supplies external catheters, urine urostomy collection bras, mastectomy
Slide 6: Compelling Industry Dynamics
COMPELLING INDUSTRY DYNAMICS American Medical Supplies Market forecast 2010-2020 peed Ell National expenditures in DME Medicare billings less market will increase 56% than, $300,000 is declining Number of Americans over 65 will increase by ~<a, 40% increase in 32% D dollars soent on healthcare Numbe
Slide 7: Infrastructure Established & Built to Support Growth
Infrastructure Established & Built to Support Growth 2979 SE Gran Park Way, Stuart, FL 1823 SE Airport Road, Stuart, FL 2 Total Space 32,740 ff Total Space 30,000 #2 Administrative Offices 21,420 ft? Call Center 22,000 ft? Warehouse, Shipping, 18,600 ft? Administrative Storage Functions 8,000 ft? *
Slide 8: First Half Results (March 2014)
Millions First Half Results (March 2014) $40.0 Six Months Ending March 2014 $35.0 $30.0 $25.0 + mQ2FY11 $20.0 mQ2FY12 m Q2FY13 $15.0 4 mQ2FY14 $10.0 + $5.0 + $1.7 $19 $0.0 4 Net Sales Gross Profit Operating Income EBITDA
Slide 9: Financial Highlights
Financial Highlights _Netsales Gross Profit $80.0 CAGR:, 39% > : CAGR: 39% § $70.0 009 $69.1 5400 3% s $37.0 3 $60.0 $52.7 § 3350 $321 $50.0 5409 3 $300 $26.6 $40.0 $25.0 $30.0 $25.8 $20.0 — $15.0 $9.6 $10.0 oo $5.0 : $0.0 FY08 AFYOS AFY10 AFY11 AFY12A FY13 A FYO8 A FYO9A FY10 A FY11 A FY12A FY13A e
Slide 10: Recurring Sales
Recurring Sales $75.0 4 5 95% f 91% $65.0 + i ae $62.8 + 85% + 75% $55.0 65% $45.0 L 55% $35.0 45% L 359 $25.0 - 35% 25% $15.0 15% $5.0 4 5% ($5.0) / FY08 A FYO09 A FYI0A FY11A FY12A FY13 A L 5% (millions) eThe mix of gross recurring revenue has increased since FY 2008 from 57% of revenue to 91% of
Slide 11: Driving Continued Growth and Shareholder Value
Driving Continued Growth and Shareholder Value ¢ Opportunistically deploy cash flow for increased advertising spend, quarterly dividend, and/or share buy back to yield greatest shareholder value ¢ Explore additional product lines ¢ Wound Care ¢ Specialty Catheter e Launch new vendor product offering
Slide 12: Highly Experienced Management Team
Highly Experience Management Team Mark Libratore Chief Executive Officer Robert Davis Chief Financial Officer 42 42 Founded Liberator in 1999; created and executed direct-to-consumer sales model targeting seniors with chronic illnesses in need of medical supplies Founder of Liberty Mecical Supply in
Slide 13: Highly Experienced Management Team
Highly Experience Management Team John Leger 39 « Responsible for overall operations at Liberator; has served in role since Chief 2007 - ¢ Senior VP of Operations at Liberty from 1991 to 2004 Operating * Responsible for Liberty’ s diabetic call center, customer services, Officer repeat customers sal
Slide 14: Highly Experienced Management Team
Highly Experienced Management Team George Narr Chief Information Officer Doug Mee Vice President of Finance Jennifer Libratore Vice President of Operations 17 26 13 Responsible for all information systems at Liberator; joined in April 2010 Previously CIO of Liberty Medical Supply until 2006; Managed
Liberator Medical Holdings — Q2 FY2014 Earnings Presentation on 6ix