med investor deck sept 20 2013
TRANSCRIPT
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Medworxx Solutions Inc.
Corporate OverviewSeptember 2013
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This presentation contains forward-looking statements, which can be identified by the use of theforward-looking terminology, such as may, intend, will, expect, anticipate, estimate, seek,or continue or the negative thereof or other variations thereon or comparable terminology. Inparticular, any statements, express or implied, concerning trends, future operating results, growth,performance, business prospects and opportunities or the ability to generate revenues, income orcash flow are forward-looking statements. These statements reflect managements current beliefs,including beliefs as to future financial and operating results, and they are based on informationcurrently available to management. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by management, areinherently subject to known and unknown risks and uncertainties. Such risks include but are notlimited to: the impact of general economic conditions, market volatility, fluctuations in costs, andchanges to the competitive environment, as well as other risks disclosed in the public filings ofMedworxx Solutions Inc. (Medworxx) which can be found at www.sedar.com
These factors should be considered carefully and undue reliance should not be placed on forward-looking statements. Although the forward-looking statements are based upon what managementbelieves to be reasonable estimates and assumptions, Medworxx cannot ensure that actual results
will not be materially different from those expressed or implied by these forward-looking statements.Unless specifically required by law, Medworxx does not assume any obligation to update or revisethese forward-looking statements to reflect new events or circumstances.
Forward looking statement
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Medworxx :: Corporate Overview
Medworxx Solutions Inc. founded in 2004
Toronto-based Hospital Patient Flow Software Provider
Multi-year, Recurring per-bed revenue model
Strong capital position to execute international growth strategy in
2013/2014
Shares Outstanding (FD) 26.6M
Market Cap ($0.36 share price at 6/30/2013) $ 9.6M
Net Cash (as at 6/30/2013) $ 2.6M2012 Revenue (2011 Revenue $4.8M) $ 6.1M
Institutional Ownership 50%
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Medworxx :: Highlights
Medworxx Patient Flow aids hospitals in cutting spending and increasingrevenues; thereby optimizing hospitals utility and maximizing ROI
Large near-term opportunity in Canada, US, and UK representing over1,170,000 hospital beds and a $249M annual revenue opportunity
Goal of becoming the de facto standard in hospital patient flow solutions 33% of Canadian acute care beds under license
Scalable growth with high-margin target markets
Intellectual property fully developed with limited capex requirements
Legacy Compliance & Education product suite generates consistent cashflow
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Medworxx :: IT Solutions
Patient Flow
Launched in 2008
Compliance & Education
Launched in 2005
5
across >320 hospitals
Learning Management
Policies & Documents
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Assessments UtilizationManagement
Bed Board
Independent patient
assessment form Core framework
established
Flexible dynamic enablesinstitution configuration
Monitors patient stay based
on clinical assessment Real-time
Improves discharge rates
Efficient bed management
tool Real-time clinical status
Optimizes resource use
Medworxx :: Patient Flow Solutions
6
Identify Delay
Hotspots
Maximize
Existing Beds
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$49,500loss per bed, per year due
to inefficient patient flow*
*The Advisory Board
$1,100average cost of a hospital
bed per day
45average days lost per bed
per year due to inefficiencies
Inefficient Patient Flow :: Higher Costs
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$900Bannually in hospitalcare in North America
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Patient Flow :: Hot Spots
Thin operating margins Emergency Department
overcrowding Wait times and readmission
cycles Costly delays from admissionto discharge
2.4 million ALC days inCanada
Bed blocking overcapacity Canada at ~90% Care quality damaged by
disrupted journey
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Challenge Solution Result
Real-Time Measurement :: Efficient Patient Flow
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Root of patient flow
challengetoo muchvariability in patients
state and care
Reduce variability
with daily clinical
assessmentsunder 3
minutes each patient
Less system-wide
dragFewerinefficiencies
Clinical Assessments
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Simple input process
for Real-timeaccess to data
demand and capacity
management
Manage appropriatelevels of care for
every patient, every
day
Gain 360 insightsinto the patient
journey from
admission to
discharge
Clear Progress :: Analytics & Performance Indicators
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Tracks
Discharge
Delays
Tracks Bed
Occupancy
Against Targets
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Medworxx has helped us identify process andcommunication issues to improve the planning andteamwork related to complex patient discharges.Patti CochraneVP, Patient Services & Quality and CNO
More patients never having an RFD associatedwith their stay means more timely dischargesand a better flow of patients.Jane CaseyDirector, Medicine Programs
Patient Flow :: Results
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Reduced Alternate Level of Care (ALC)beds percentages from:
Reduced medical unit ALC days from
Increased percentage of acute-care patients
given an Estimated Discharge Date (EDD):
15% to 89%
+18% to 5.9%
15.5to 11.6Medworxx needs to be melted intoevery component of your organization.Diane MuscatManager, Patient Flow & Clinical Utilization
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Annual Opportunity
$17M
82,850Hospital beds
Annual Opportunity
$15M
79,005Hospital beds
Patient Flow Addressable Market :: Near-Term
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940,000Hospital beds
$200MAnnual Opportunity
160,000Hospital beds
$34MAnnual Opportunity Annual Opportunity
$85M
415,000Hospital beds
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79,005Total Hospital beds
Addressable Market :: Canada
13
90%
Capacity
Rest of Canada
55,536Total Hospital Beds
25,427Medworxx Licensed Beds
. .
45.8%Market Penetration
25,569Medworxx Licensed
Beds
33%Market Penetration
Quebec
23,469Total Hospital Beds
142Medworxx Licensed
Beds. .
0.6%Market Penetration
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33%Acute-care Beds
in Canada. .
4Provincial Agreements
. .
135+Patient Flow Hospitals
. .
~27,500Acute-care Beds
Internationally
. .
Ontario CaseExample33%Acute-care Beds in
Ontario2Regions (LHINs)
23Hospitals. .Expanding in UK
~2,000 beds
Expanding inUSA
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Medworxx :: Current Penetration
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8,500
2,692
0
0
0
0 1,970
7,980 0
1,400
3,000
0Prince
Edward Island
Newfoundland
NovaScotia
New Brunswick
Quebec
ManitobaSaskatchewan
Alberta
British
Columbia
Nunavut
Northwest
Territories
Yukon
TerritoryUnited Kingdom
Provincial & Regional AuthoritiesAlberta Health Services
Fraser Health Authority; Vancouver CoastalHealth Authority, BC
The Province of New Brunswick
The Province of Nova Scotia David Thompson Health RegionDeux Montagnes
Palliser Health RegionPeace Country Health
St. Joseph's General - Comox
St. Michael's
Woodstock General
St. Thomas Elgin GeneralCalgary Health Region
Chinook Health Region
Select Hospitals
Stevenson Memorial
North Bay GeneralSault Area Hospital
Sudbury Regional
33%acute-care beds inCanada using
Medworxx Patient
Flow solution
Medworxx :: Market Coverage
15
1,900
142
10%acute-care beds inCanada licensed onMedworxx Bed
Board
Ontario
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Sales Strategy
Direct Model
Direct Sales
Audits with or without
partners
Indirect Model
Consultants / Partners
ALSA
Distributors
ALSA
Appropriate Length of Stay Audit Leverage the capability of and data from
Medworxx patient flow without a full deployment
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If patients were clinically appropriate (or not) for the level of care they are receiving.
If patients were clinically ready for discharge or transitionto an alternate levelof care.
Barriers for each acute care hospital day beyond what is clinically necessary:segmented by hospital, physician, or community.
Reasons and details for each barrier or delay, such as services delays, observationdays, and community placement issues.
Appropriate Length of Stay Audit (ALSA)Quickly Unlocks Critical Barriers to
Patient Flow
Appropriate Length of Stay Audit
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Patient Flow Beds :: Growth
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2007 2008 2009 2010 2011 2012 2013_Q2
Beds 7,531 10,278 10,920 12,858 21,252 26,469 27,578
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5,000
10,000
15,000
20,000
25,000
30,000
#
Beds
Patient Flow Beds under licence
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19
$inMillio
ns
(2.00)
(1.00)
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue
Adj EBITDA
Medworxx :: Year End Financials (12/31)
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Recurring revenue
Non-recurring revenue
78%
22%
Maintenance and
Hosting fees
Annual Renewable
Software Licenses
Perpetual Software
Licenses
Consulting Services
Recurring Revenue :: Business Model Q2_2013
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Perpetual
Licences, 15%
Annual
Renewable
Licences, 48%
Maintenance &
Hosting, 30%
Consulting
Services, 7%
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Enterprise Valuation :: Comparison
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CorporationStock
Symbol/Exchange
Enterprise
Value/Revenue
Medworxx Inc. TSXV:MWX 1
Cerner Corporation Nasdaq: CERN 6.16
Authentdate Holdings Corp. Nasdaq: ADAT 7.35Computer Programs & Systems Inc. Nasdaq: CPSI 2.82
MedAssets, Inc. Nasdaq: MDAS 2.94
Medidata Solutions Inc. Nasdaq: MDSO 8.09
Merge Healthcare Inc. Nasdaq: MRGE 2.19
Quality Systems Inc. Nasdaq: QSII 2.24
Streamline Health Solutions Inc. Nasdaq: STRM 3.94WebMD Health Corp. Nasdaq: WBMD 2.35
Syslogist Ltd. TSXV: SYZ.V 8.96
Constellation Software Inc. Toronto: CSU.TO 3.31
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Medworxx :: Leadership
Board of Directors George Elliott, Chairman of the Board
Director, executive, advisor on long term financialstrategies to numerous public companies
Dan Matlow, Director President & CEO, Medworxx
Paul Collins, Director President & CEO at St. Thomas Elgin General
Hospital
Sam Marafioti, Director Vice President of Corporate Strategy and
Development, CIO at Sunnybrook HealthSciences Centre, Toronto
Lee Matheson, Director Co-founder of Broadview Capital Management
Inc.
Renah Persofsky, Director The Portable Executive; founder and former
President & CEO of Dexit Incorporated
Barry Tissenbaum, Director Independent consultant; former Senior Partnerwith Ernst & Young
Bernard Webber, Director 26+ years with Ontario Public Service; former
member, Board of Governors of the InformationTechnology Association of Canada (ITAC)
Executive Team
Dan Matlow, President & CEO
20+ years experience in software sales, consulting, anddevelopment; Former VP of Healthcare Services Open Text;helped grow Corechange from $0 - $27M revenue with 70+hospital customers in North America
Peter Ellis, UK Managing Director
40 years of international management and consultingexperience including leadership roles within the UK NationalHealth Service (NHS), former President and CEO of
Sunnybrook Health Science Centre, ON and Senior Partnerat Ernst & Young
Brian Goffenberg, CA, CFO & Executive Vice President
20+ years experience in international financial managementat DWL and Delrina (now Symantec); emphasis on IT market
Niels Tofting, Senior VP Sales
10+ years experience in sales and sales management atCorechange and Open Text; top sales performer; emphasison the healthcare market
Lori Frampton, MHS, RN, VP Patient Flow Process
Improvement and Data Analysis 18+ years in senior healthcare management at Health Quality
Ontario, Royal Victoria Hospital, Ontario MOHLTC. CertifiedLean/Six Sigma Black Belt
Larry Vanier, VP Decision Support & Healthcare Processes
25+ years in healthcare IT; former principal at Continuum,focused on product development, sales and support
Joel Alfane, VP Development & Services
10+ years in software development and implementations;former Director, Learning Development, Longview Solutions
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Medworxx :: Highlights
Medworxx Patient Flow aids hospitals in cutting spending and increasingrevenues; thereby optimizing hospitals utility and maximizing ROI
Large near-term opportunity in Canada, US, and UK representing over1,170,000 hospital beds and a $249M annual revenue opportunity
Goal of becoming the de facto standard in hospital patient flow solutions 33% of Canadian acute care beds under license
Scalable growth with high-margin target markets Intellectual property fully developed with limited capex requirements
Legacy Compliance & Education product suite generates consistent cashflow
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Medworxx Solutions Inc.
Dan Matlow, President & [email protected]
416.642.1278 x311
Brian Goffenberg, Chief Financial Officer & EVP
[email protected] x315
mailto:[email protected]:[email protected]:[email protected]:[email protected]