Agility Health Pitch Deck Teardown: Healthcare Provider

Agility Health Pitch Deck Teardown: A Mature Healthcare Provider's Investor Presentation

This teardown analyzes the Agility Health investor presentation, dated March 2017, focusing on the first 10 out of 20 slides provided. The deck presents a well-established healthcare provider with a focus on physical rehabilitation services, showcasing its operational scale, financial performance, and strategic growth initiatives. The company appears to be a mature entity, providing detailed financial breakdowns and a clear overview of its diversified business model across the United States and Canada.

Slide 1: Cover Slide

The first slide serves as the cover for the presentation. It prominently displays the company logo, 'agilityhealth', with the tagline 'Serving Together. Better.' in the top right corner. The main title of the slide is 'AGILITY HEALTH INVESTOR PRESENTATION', with 'March 2017' indicated below it. The design features a grey and red color scheme, with a large white space dominating the center. This slide clearly identifies the company, the type of document, and its publication date, setting the stage for an investor-focused discussion.

Slide 2: Who We Are

Titled 'Who We Are', this slide introduces Agility Health as a 'leading healthcare provider with a focus on physical rehabilitation services'. It lists specific services offered: 'Physical therapy, Occupational therapy, Athletic training, Speech therapy'. The slide then highlights key attributes of the company using bullet points with checkmarks: 'Growth in revenues, margins and EBITDA', 'Large, growing industry - highly fragmented', 'Differentiated business model', 'Capitalize on growing demand', and 'Experienced leadership'. A photograph of a modern building with 'Agility Health' signage is included on the right side of the slide, visually representing the company's physical presence. This slide provides a high-level overview of the company's core business and its strengths.

Slide 5: Agility Health Physical Rehabilitation Services - Overview

This slide, titled 'Agility Health Physical Rehabilitation Services - Overview', further elaborates on the company's operations. It states that Agility Health is 'One of the leading providers of physical rehabilitation services in North America' and that they 'Provide care and treatment for orthopedic-related disorders, sports-related injuries, preventative care and occupational rehabilitation'. A map of the United States and parts of Canada is featured on the left, with several US states highlighted in red, indicating 'Network of Service Sites'. On the right, a list of operational metrics and characteristics is provided: '1+ million patient visits annually', '1,100+ employees', '145+ locations across 20 states', 'Consolidating highly fragmented market', 'Proprietary operating software', 'Provides post-acute 'rehabilitation continuum of care'', and 'Seasoned management team'. The slide concludes with 'Diversified portfolio: geographically and clinically'. This slide effectively communicates the scale and scope of Agility Health's operations.

Slide 7: Agility Health Business Segments

Titled 'Agility Health Business Segments', this slide breaks down the company's revenue streams. It presents four distinct segments: 'Outpatient Clinics', 'Industrial Work-Fit™', 'Hospitals Contract Services', and 'Long-Term Care Contract Services'. For each segment, the slide provides 'Clinics/Facilities', 'LTM Revenue (1)', and '% LTM Revenue'. The figures are as follows:

Outpatient Clinics: 56 Sites, US$31.3 M LTM Revenue, 50% % LTM Revenue · Industrial: 31 Sites, US$5.6 M LTM Revenue, 9% % LTM Revenue · Hospitals: 36 Sites, US$8.0 M LTM Revenue, 13% % LTM Revenue · Long-Term Care: 25 Sites, US$17.4 M LTM Revenue, 28% % LTM Revenue

A footnote clarifies that '(1) Clinic level, financials.' This slide clearly illustrates the diversification of Agility Health's business and the relative contribution of each segment to its latest twelve months (LTM) revenue.

Slide 9: Agility Health Financial Summary ($US)

This slide, 'Agility Health Financial Summary ($US)', presents a detailed financial table covering the years 2013, 2014, 2015, and 'LTM Sep 30th, 2016'. The table includes line items for Revenue (broken down by segment and % of Total Sales), Cost of Revenues (with various sub-categories), Gross Profit, % of Total Sales for Gross Profit, and SG&A. It also presents 'Clinic Level EBITDA' and its breakdown by segment and % of Total Sales. Key figures highlighted with red circles are 'LTM Sep 30th, 2016' Total Revenue of '$63,021,546' and 'LTM Sep 30th, 2016' Clinic Level EBITDA of '$9,660,275'. This slide offers a comprehensive look at the company's financial performance over several periods, indicating growth and profitability.

Slide 11: Medic Holdings Orthotics - Overview

Titled 'Medic Holdings Orthotics - Overview', this slide details Agility Health's Canadian business unit. It describes it as a 'Canadian business unit focusing on outpatient orthotics/foot care' with 'Orthotic and prosthetic manufacturing capabilities'. Key operational details include '12 foot care clinics in Ontario and Quebec' and approximately '120+ employees; headquartered in Oakville, Ontario'. The slide further breaks down the 'Manufacturing' and 'Clinics' aspects. Manufacturing involves 'Orthotic manufacturing in Hamilton, Ontario (Ontario Orthotic Lab)', 'Production of more than 60,000 pairs of orthotics per year', 'Prosthetics manufacturing in Montreal', and '>60 employees in manufacturing'. The Clinics segment includes '12 foot care clinics in Southern Ontario and Montreal region' and is described as 'One of the largest operators of foot care clinics in Canada'. This slide highlights the company's international presence and specialized offerings.

Slide 13: Highlights

The 'Highlights' slide summarizes key achievements and strengths of Agility Health. It is organized into four main sections: 'Broad Diversified Footprint', 'Strengthened/Expanded Management and Governance', 'Capital Market Profile', and 'Scalable Growth Platform'. Each section lists several bullet points with checkmarks. For instance, 'Broad Diversified Footprint' mentions 'Expands clinic network into Canada/orthotics', 'Diversified revenue by state/province, payers and business line', and 'Reduced reimbursement risk/contract reliance'. On the right side of the slide, key financial and operational metrics are presented in large text: 'CDN$96.5M TTM Revenue', 'CDN$8.3M TTM EBITDA', '6.7X EV/TTM EBITDA', and '164 Clinic Sites US/Canada'. This slide provides a quick snapshot of the company's overall health and potential.

Slide 15: Growth Strategy

Titled 'Growth Strategy', this slide outlines Agility Health's plans for future expansion. It presents six distinct strategic pillars, each with bullet points detailing specific initiatives:

Same Clinic Improvements: Expand referral volume, enhance clinician efficiencies, Promote cross-selling of products and services, Move back office functions from clinics to corporate, Perform staffing optimization. · De Novo Clinic Expansion: Increase de novo clinic development over next 5 years, Build market density by clustering new clinics, New clinician partnerships. · New Hospital Contracts: Secure new hospital contracts in existing/new markets, Explore additional contracts within current hospital network. · New LTC Contracts: Leverage reputation/scope to add new customers, Explore new markets requiring LTC services. · Expanded Sales Platform: Develop and contract bundled services offerings (US), Cross-sell new products and services across clinic network, Partner - Agile RPM Software Services. · Expand Work-Fit™ Program: Expand marketing program to self-insured employers, Outreach program to Third Party Administrators, Acquisition of existing industrial clinics.

This slide comprehensively details the multi-faceted approach Agility Health intends to take for growth.

Slide 17: Management Team

The 'Management Team' slide introduces seven key individuals, each with their name, title, and bullet points highlighting their experience. The team members listed are:

Steven Davidson, PT, MBA: Chairman, CEO. 33 years healthcare experience, Licensed physical therapist. · Telfer Hanson: President, Interim CFO. 25 years of investment banking experience, Specific industry focus on medical technology. · Gene Miyamoto: COO. 33 years healthcare, Master in Health Services Administration. · Brian Potter: VP, Outpatient Clinic Ops. Worked with Agility since 1996, Licensed Physical Therapist, 24 years of clinical and management experience. · Michael Daray: General Counsel. Previous partner with Law Weathers, BA from University of Michigan and JD with from University of Minnesota. · Joe Laurent, MBA: VP HR, CCO. Joined Agility in 2006, 30 years Human Resource, Compliance experience. · Wayne Cockburn: VP, Corp Development. Previous C-level experience in medical device industry, biotech, 33 years capital market experience, M&A, licensing, partnering and investor relations.

This slide demonstrates the depth and breadth of experience within the company's leadership.

Slide 19: Appendix

The final slide provided is simply titled 'APPENDIX'. It features the Agility Health logo and tagline in the top right corner, consistent with other slides. This slide indicates that further information or supporting details may follow, but these are not included in the provided set of 10 slides.

What Works Well

The Agility Health pitch deck effectively communicates the company's established position and operational scale. The 'Who We Are' (Slide 2) and 'Physical Rehabilitation Services - Overview' (Slide 5) slides quickly establish the company's core business, market leadership, and extensive network across 20 states with '1+ million patient visits annually'. This provides a strong foundation for investors to understand the company's current footprint.

The 'Business Segments' (Slide 7) slide is particularly strong, clearly breaking down revenue contribution by different service lines. This transparency helps investors understand the diversification of the business and where the primary revenue drivers lie, with 'Outpatient Clinics' contributing 50% of LTM Revenue. The inclusion of the Canadian 'Medic Holdings Orthotics' (Slide 11) further demonstrates geographic and service diversification, highlighting specialized manufacturing and clinic operations.

The 'Financial Summary ($US)' (Slide 9) is a standout feature. It provides a detailed, multi-year financial table for revenue, costs, gross profit, and Clinic Level EBITDA. The clear presentation of actual figures, including LTM data, allows for a thorough assessment of financial performance and growth trends. The red circles drawing attention to key LTM figures are a helpful visual aid. The 'Highlights' (Slide 13) slide then condenses these financial achievements into easily digestible metrics like 'CDN$96.5M TTM Revenue' and 'CDN$8.3M TTM EBITDA', alongside operational metrics like '164 Clinic Sites US/Canada'.

The 'Growth Strategy' (Slide 15) is comprehensive and well-structured, outlining six distinct pillars with specific initiatives. This demonstrates a clear vision for future expansion, covering organic growth through clinic improvements and de novo expansion, as well as strategic partnerships and new contract acquisitions. Finally, the 'Management Team' (Slide 17) slide showcases a highly experienced leadership group with extensive backgrounds in healthcare, finance, and operations, lending credibility to the company's ability to execute its strategies.

What Is Missing

Despite its strengths, the Agility Health deck has several notable omissions. The most significant is the complete absence of a clear 'ask' from investors. While it is an 'INVESTOR PRESENTATION' (Slide 1), there is no mention of the amount of funding sought, the purpose of the funds, or the valuation. This is a critical piece of information for any investor pitch.

There is no dedicated 'Problem' or 'Solution' slide. While the company's services are described, the specific market pain points it addresses and how its offerings uniquely solve them are not explicitly articulated. Similarly, a dedicated 'Market Opportunity' slide is missing. While Slide 2 mentions a 'Large, growing industry - highly fragmented', it does not provide any market sizing, growth projections, or specific target market details that would quantify the opportunity.

The deck also lacks a 'Competitive Landscape' or 'Differentiation' slide. While Slide 2 mentions a 'Differentiated business model' and Slide 5 refers to 'Proprietary operating software', the deck does not elaborate on who the main competitors are, how Agility Health compares to them, or what specific competitive advantages it possesses beyond these general statements. This makes it difficult for investors to assess the company's position within its market.

Although detailed financials are provided, there is no 'Projections' or 'Forecasts' slide outlining future revenue, EBITDA, or other key financial metrics. For an investor presentation, understanding the company's future financial outlook is crucial. Additionally, there are no unit economics presented, which could provide deeper insight into the profitability and scalability of individual clinics or service lines. Finally, the deck does not include a 'Traction' slide that might highlight specific recent achievements, partnership wins, or significant growth milestones beyond the general financial summary, which could further build investor confidence.

What Founders Should Copy

Founders should emulate Agility Health's clear and detailed presentation of its business segments and financial performance. The 'Business Segments' (Slide 7) slide is an excellent example of how to break down revenue by different offerings, providing both absolute figures and percentages. This level of detail helps investors quickly grasp the company's revenue mix and primary drivers.

The 'Financial Summary ($US)' (Slide 9) is another strong element to copy. Presenting multi-year financial data in a clear table, including revenue, costs, gross profit, and EBITDA, demonstrates transparency and a solid understanding of financial operations. Highlighting key LTM figures with visual cues like red circles is a simple yet effective way to draw attention to the most current performance metrics. Even early-stage companies can adapt this by showing month-over-month or quarter-over-quarter data.

The 'Growth Strategy' (Slide 15) slide is a model for articulating a comprehensive plan for expansion. Breaking down the strategy into distinct, actionable pillars with specific initiatives provides a clear roadmap for how the company intends to achieve future growth. This level of detail assures investors that the founders have a well-thought-out plan for scaling the business.

Finally, the 'Management Team' (Slide 17) slide is well-executed. Listing key team members with their titles and concise bullet points highlighting relevant experience and tenure builds confidence in the leadership's capabilities. For any startup, showcasing a strong, experienced team is paramount, and this slide effectively conveys that message without being overly verbose.