Top Banner
Third Quarter 2015 Financial Results Conference Call November 17, 2015
23

Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

May 07, 2018

Download

Documents

hahanh
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Third Quarter 2015Financial Results Conference Call November 17, 2015

Page 2: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

2

Forward Looking Statements

Certain of the statements contained in this presentation are "forward-looking information“ within the meaningof applicable Canadian securities legislation. Forward-looking information includes, but is not limited to,business strategy, plans and other expectations, beliefs, goals, objectives, information and statements aboutpossible future events. Forward-looking information generally can be identified by the use of forward-lookingterminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”,“should”, “plans” or “continue”, or similar expressions suggesting future outcomes or events. You are cautionednot to place undue reliance on such forward-looking information. Forward-looking information is based oncurrent expectations, estimates and assumptions that involve a number of risks, which could cause actualresults to vary and in some instances to differ materially from those anticipated by Centric Health anddescribed in the forward-looking information contained in this presentation. No assurance can be given thatany of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so,what benefits Centric Health will derive therefrom and neither Centric Health nor any other person assumesresponsibility for the accuracy and completeness of any forward-looking information. Other than asspecifically required by applicable laws, Centric Health assumes no obligation and expressly disclaims anyobligation to update or alter the forward-looking information whether as a result of new information, futureevents or otherwise.

All dollar figures are in Canadian dollars unless otherwise stated.

Page 3: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

David CutlerPresident & Chief Executive Officer

Page 4: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Agenda

1. Highlights and Key Developments

2. Financial Review

3. Outlook

4. Questions

4

Page 5: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

14th consecutive quarter of positive cash flow from operations

5

Q3 2015 Q3 2014

Revenue 87.1M Revenue 75.3M ↑ 16%

Adj. EBITDA 8.1M

Adj. EBITDA 7.2M ↑ 13%

Adj. EBITDA margin

9.3%Adj. EBITDA margin

9.6%

6th Consecutive Quarter of Year-over-Year Growth

Page 6: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Highlights – Physiotherapy, Rehabilitation & Assessments

6

Solid growth in year-over-year revenue driven mainly by re-acquisitions of Active and CAR

Success in winning, renewing and extending contracts expected to drive organic growth going forward

Normalizing for transient factors, achieved solid organic growth

Page 7: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Highlights – Specialty Pharmacy

7

Strong growth, primarily due to acquisition of Pharmacare

Organic growth through

New business opportunities realized through Pharmacare acquisition to service customers previously unavailable

First multi-province contract win

Ontario Drug Benefit Act amendmentsimplemented – expect net zero impact of Amendments to Ontario Drug Benefit Act

Page 8: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Highlights – Surgical and Medical Centres

38% 38%

Q3/14 Q3/15

Capacity Utilization

8

Continued year-over-year revenue growth

Adjusted EBITDA and margin dampened by investments for future growth

Obtained several key accreditations at False Creek and Maples

Smart Shape Weight Loss Centres recognized as Canada’s only Centre of Excellence in Metabolic and Gastric surgery

1 Excludes Windsor

1

Page 9: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Daniel GagnonChief Financial Officer

Page 10: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

75.3

87.1

Q3/14 Q3/15

Q3/15 Revenue

Continued revenue growth across all segments

10

↑ 16%

(in Millions, C$)

Driven primarily by acquisition of Pharmacare and reacquisition of Active and CAR

Page 11: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

7.2

8.1

Q3/14 Q3/15

Q3/15 Adjusted EBITDA

11

(in Millions, C$)

9.3%9.6%

↑ 13%

Driven primarily by acquisition of Pharmacare and reacquisition of Active and CAR

Page 12: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Segment Results - Physiotherapy, Rehabilitation & Assessments

Q3 2015 Q3 2014

Division

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Physiotherapy, Rehabilitation and Assessments

45.8 5.5 11.9 42.3 5.7 13.4

Specialty Pharmacy 32.0 4.8 15.1 24.0 3.3 13.9

Surgical and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9

Corporate - (2.8) - - (2.5) -

Total 87.1 8.1 9.3 75.3 7.2 9.6

12

Page 13: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Q3 2015 Q3 2014

Division

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Physiotherapy, Rehabilitation and Assessments

45.8 5.5 11.9 42.3 5.7 13.4

Specialty Pharmacy 32.0 4.8 15.1 24.0 3.3 13.9

Surgical and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9

Corporate - (2.8) - - (2.5) -

Total 87.1 8.1 9.3 75.3 7.2 9.6

Segment Results - Specialty Pharmacy

13

Page 14: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Q3 2015 Q3 2014

Division

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Physiotherapy, Rehabilitation and Assessments

45.8 5.5 11.9 42.3 5.7 13.4

Specialty Pharmacy 32.0 4.8 15.1 24.0 3.3 13.9

Surgical and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9

Corporate - (2.8) - - (2.5) -

Total 87.1 8.1 9.3 75.3 7.2 9.6

Segment Results - Surgical and Medical Centres

14

Page 15: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Q3 2015 Q3 2014

Division

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Revenue

$M

AdjustedEBITDA

$M

Margin

%

Physiotherapy, Rehabilitation and Assessments

45.8 5.5 11.9 42.3 5.7 13.4

Specialty Pharmacy 32.0 4.8 15.1 24.0 3.3 13.9

Surgical and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9

Corporate - (2.8) - - (2.5) -

Total 87.1 8.1 9.3 75.3 7.2 9.6

Segment Results - Corporate

15

Page 16: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

1.8

7.3

Q3/14 Q3/15

Cash Flow from Operations

14th consecutive quarter of positive cash flows from operations

16

(in Millions, C$)

Continued focus on operational and working capital initiatives

Q3/15 includes transaction and restructuring costs of $1.1M

Year-to-date cash flow from operations of $22.0M

Page 17: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Balance Sheet Update

17

Discussing strategic alternatives with external advisers on two commitments due in 2016

Convertible debentures – maturing April 2016

• Repayment with new financing• Extensions• Conversion into shares at Company’s discretion

Revolving credit facility – maturing June 2016

• Potential renewal for one or two years

Decisions on commitments will be undertaken in context of ongoing strategic review

Page 18: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

David CutlerPresident and Chief Executive Officer

Page 19: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Outlook

19

Physiotherapy, Rehabilitation & Assessments

• Continued success in winning new business driving organic growth in upcoming quarters

Specialty Pharmacy

• Capitalizing on new ability to service multi-province clients

Surgical and Medical Centres

• Growing top line through strategic investments in accreditations and capacity

Page 20: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

301.4306.7

315.1

327.4

339.3

Sep'14 Dec'14 Mar'15 Jun'15 Sep'15

27.929.1 29.6

31.532.4

Sep'14 Dec'14 Mar'15 Jun'15 Sep'15

Revenue (in Millions, C$)

Adj. EBITDA(in Millions, C$)

Continued Momentum: Trailing 12 Months

20

9.3%9.5% 9.4%

9.6%9.5%

Page 21: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Strategic Priorities

21

Focus on core strengths

Position the Company for future growth

Win on quality, innovation and client service

Strengthen the balance sheet

Page 22: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Questions

Page 23: Third Quarter 2015 - Amazon Web Services and Medical Centres 9.3 0.6 6.6 9.0 0.7 7.9 Corporate - (2.8) - - (2.5) - Total 87.1 8.1 9.3 75.3 7.2 9.6 Segment Results - Specialty Pharmacy

Third Quarter 2015Financial Results Conference Call November 17, 2015