Conmed Healthcare Management Inc
Conmed Healthcare Management — Investor Presentation (January 2012)
20 slides from Conmed Healthcare Management's investor presentation, Jan 12, 2012
Slide 1: A Trusted Partner Providing Quality County-Level Correctional Healthcare Services
NYSE Amex: CONM A Trusted Partner Providing Quality County - Level Correctional Healthcare Services JANUARY 2012
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to the company's plans, objectives, expectations and intentions. These statements identified by words such
Slide 3: Corporate Overview
Corporate Overview ▪ C orrectional healthcare services ▪ 26 - year history ▪ Recognized as a consolidator ▪ Solid financial foundation for continued growth • Cash positive • No long - term debt 3
Slide 4: Our Business
Our Business ▪ Outsourced provider of cost - effective, high quality, compliant healthcare services • County and municipal detention facilities ▫ Jails, NOT prisons • Satisfies U.S. Constitutional obligation to provide healthcare services to detainees ▪ Strong brand recognition • Exceptional custome
Slide 5: Our Services
Our Services 5 EMR and E - MAR Out - of - Facility Services / Hospitalization (with capitation) In - Facility Services Laboratory / Mobile Imaging… Dental Services Pharmacy Behavioral Health (MD, PhD, LCSW, Case Mgrs….) Medical Staffing (MD, PA, NP, RN, LPN, CNA, CMT…)
Slide 6: We Serve
We Serve ▪ 2 0,500 inmates ▪ 54 adult and juvenile detention facilities ▪ 41 counties & municipalities ▪ 9 states • Arizona • Kansas • Maryland 6 • New Jersey • Oregon • Tennessee • Texas • Virginia • Washington
Slide 7: Recent Contract Wins & Renewals
7 $18M $ 14M $1.1M Haywood County, TN City of Alexandria, VA Yakima County, WA Galveston County, TX $ 17.1M Ocean County, NJ $ 13.6M Newport News, VA Recent Contract Wins & Renewals $0.7M Worcester County, MD Amounts reflect projected contract revenue over the life of the contract, including extensi
Slide 8: Strong Growth Footprint
Strong Growth Footprint 0 5 10 15 20 25 30 35 40 45 Counties and Municipalities States 17 4 41 9 2006 2012* 8 * as of January 11, 2012
Slide 9: Large Market Opportunity
▪ 3,142 counties in the U.S. ▪ Overall healthcare spending for this inmate segment • ~$10.31 / inmate/day • ~$2.7 billion annually ▪ No direct correlation to economic cycles ▪ Outsourced market; highly fragmented 97.5% 2.5% Over 700,000 Inmates in County Jails US Total Conmed Large Market Opportunit
Slide 10: Compelling Growth Strategy
▪ Renew and expand current contracts • Sell additional services into existing accounts • Expand uptake of Mental Health services ▪ Price increases at renewal ▪ New contract wins • Geographic expansion • New facilities in existing states ▪ Acquire accretive regional correctional healthcare providers
Slide 11: Financials
HEALTHCARE Conmed faiigiire FINANCIALS
Slide 12: Revenue Growth
Revenue Growth $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 2006 2007 2008 2009 2010 2011* $17.0 $26.1 $40.6 $52.8 $60.7 $69.0 Net Revenue in millions * 2011 Estimate as of September 30, 2011 12
Slide 13: Quarterly Revenue Growth
Quarterly Revenue Growth $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 13 Revenue Growth in millions
Slide 14: Gross Profit Growth
Gross Profit Growth $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 14 Gross Profit Growth in millions
Slide 15: Cost Containment
* As disclosed in Conmed’s filings on Form 10 - Q (Selling & administrative expense analysis) Cost Containment 0% 5% 10% 15% 20% 25% Operating Expenses as a Percent of Revenue 15 Excluding merger - related expenses*
Slide 16: Solid Economies of Scale
As a Percent of Revenue 2007 2008 2009 2010 Revenue $75M Revenue $100M Gross margin 18.6% 18.3% 20.3% 19.1% 18 – 21% 19 – 22% S&A 1 15.4% 14.3% 14.6% 13.4% 12% 11% Adjusted EBITDA 2 3.3% 4.0% 6.8% 6.8% 6 - 9% 8 - 11% 1 Excluding equity based compensation 2 Reconciliations of Adjusted EBITDA to Net I
Slide 17: Unique Financial Model
Unique Financial Model ▪ Multi - year contracts with renewal options • Inflation index & inmate population - based price escalators • Exceptional customer retention rate ▪ Less than 30 days DSO ▪ No reimbursement risk ▪ Growth not constrained by capital investment • No bricks & mortar • No inventory
Slide 18: Key Statistics
18 NYSE Amex: CONM Recent market price 1 $2.83 Shares outstanding 2 14.3 million Float 2 6.3 million Market capitalization 1 $40.5 million Cash and equivalents 2 $15.0 million Long - term Debt 2 $0 Key Statistics 1 As of 1/10/ 2012 2 As of 9/ 30/ 2011
Slide 19: Investment Summary
Investment Summary ▪ Diverse, recurring revenue stream ▪ Large market opportunity • Geographic expansion • Grow current contracts ▪ Highly scalable infrastructure ▪ Predictable, consistent free cash flow ▪ Strong balance sheet, zero LT debt ▪ Strong, cohesive management team 19
Slide 20: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Thomas W. Fry Lisa Wilson Chief Financial Officer President Conmed Healthcare Management In - Site Communications, Inc. 410.567.5520 212.759.3929 TFry@conmed - inc.com [email protected] 20
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