Medworxx Solutions Inc. Corporate Overview May 2014

Transcription

1 Medworxx Solutions Inc. Corporate Overview May 2014

2 Forward Looking Statement This presentation contains forward-looking statements, which can be identified by the use of the forward-looking terminology, such as may, intend, will, expect, anticipate, estimate, seek, or continue or the negative thereof or other variations thereon or comparable terminology. In particular, any statements, express or implied, concerning trends, future operating results, growth, performance, business prospects and opportunities or the ability to generate revenues, income or cash flow are forward-looking statements. These statements reflect management s current beliefs, including beliefs as to future financial and operating results, and they are based on information currently available to management. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to known and unknown risks and uncertainties. Such risks include but are not limited to: the impact of general economic conditions, market volatility, fluctuations in costs, and changes to the competitive environment, as well as other risks disclosed in the public filings of Medworxx Solutions Inc. ( Medworxx ) which can be found at These factors should be considered carefully and undue reliance should not be placed on forwardlooking statements. Although the forward-looking statements are based upon what management believes 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 revise these forward-looking statements to reflect new events or circumstances. 2

3 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 2014/2015 Shares Outstanding (FD) 26.8M Market Cap ($0.40 share price at 12/31/2013) $ 10.71M Net Cash (as at 12/31/2013) $ 2.6M 2013 Revenue $ 5.9M Institutional Ownership 50% 3

4 Medworxx :: Highlights Medworxx Patient Flow aids hospitals to reduce spending and increase patient throughput; thereby optimizing hospitals utility and maximizing ROI Large near-term opportunities in Canada, US, UK, Australia, and France representing over 1,511,855 hospital beds and a $318 M annual revenue opportunity Goal of becoming the de facto standard in hospital patient flow solutions Currently 48% 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 cash flow *Excluding Quebec 4

5 Medworxx :: IT Solutions Compliance & Education Launched in 2005 Patient Flow Platform Launched in 2008 Learning Management Policies & Documents across >350 hospitals in 5 countries 5

6 Inefficient Patient Flow :: Higher Costs $900B annually in hospital care in North America $49,500 loss per bed, per year due to inefficient patient flow* $1,100 average cost of a hospital bed per day 45 average days lost per bed per year due to inefficiencies *The Advisory Board 6

7 Patient Flow Challenges :: Hot Spots hospital gridlock wait times, readmissions demand capacity discharge planning Patient Flow Challenges care coordination cost containment bed turnover 7

8 Medworxx Unique Intellectual Property Over 20 years of Analytics Expertise Challenge Solution Result Root of patient flow challenge -- too much variability in patients state and care Reduce variability with daily clinical assessments -- under 3 minutes per patient Less system-wide drag -- Fewer inefficiencies Clinical Assessments 8

9 Medworxx :: Patient Flow Platform Forms & Assessments Clinical Criteria Bed Management Independent patient assessment form Core framework established Flexible dynamic enables institution configuration Monitors patient stay based on clinical assessment Real-time Improves discharge rates Efficient bed management tool Real-time clinical status Optimizes resource use Identify Delay Hotspots Maximize Existing Beds 9

10 Medworxx :: Current Penetration Expanding in Australia and France Expanding in USA 34% Acute-care Beds in Canada.. 4 Provincial Agreements Patient Flow Hospitals Canada, UK.. Country Acute care beds Canada 27,600 UK 1,900 Total 28,500 10

11 Patient Flow Addressable Market :: Near-term 79,005 Hospital beds 940,000 Hospital beds 160,000 Hospital beds 415,000 Hospital beds 82,850 Hospital beds $15M $200M $34M $85M $17M Annual Opportunity Annual Opportunity Annual Opportunity Annual Opportunity Annual Opportunity 11

12 Addressable Market :: Canada Two Distinct Markets Canada 55,536 Total Hospital Beds 26,607 Medworxx Licensed Beds.. 48% Market Penetration 90% Capacity of all beds occupied Quebec Market 23,469 Total Hospital Beds 0 Medworxx Licensed Beds.. 0% Market Penetration 12

13 Medworxx :: Market Coverage 0 Yukon Territory 0 Northwest Territories 0 Nunavut 48%* acute care beds in Canada using Medworxx Patient Flow Platform 10% acute care beds in Canada licensed on Medworxx Bed Management Module 1,900 United Kingdom 0 2,742 British Columbia 8,000 Alberta 0 1,950 Saskatchewan Manitoba Quebec 9,264 0 Ontario Newfoundland 0 Prince Edward Island Provincial & Regional Authorities Alberta Health Services Fraser Health Authority; Vancouver Coastal Health Authority, BC The Province of New Brunswick The Province of Nova Scotia *Excluding Quebec Select Hospitals Stevenson Memorial North Bay General Sault Area Hospital Sudbury Regional 1,400 New Brunswick St. Michael's Woodstock General St. Thomas Elgin General Calgary Health Region Chinook Health Region 3,000 Nova Scotia David Thompson Health Region Deux Montagnes Palliser Health Region Peace Country Health 13 St. Joseph's General - Comox

14 Patient Throughput Review Medworxx partners with Consulting Firms to help consultants collect client specific data around the patient throughput process. The Patient Throughput Review captures client data and highlights areas which impede the patient flow process from admissions to discharge. Consultants use this data to quantify the financial and clinical impact of patient delays. Medworxx Consulting Partner Client Specialized Data Collection and Insightful Analytics Performance Improvement Expertise Actionable Solutions 14

15 Utilizing Patient Throughput Review Implementing Medworxx Patient Flow Software Direct & Indirect Distribution Model Direct Medworxx sales and/or Indirect consulting partner distribution Patient Throughput Review: an in-depth diagnostic exercise - Leveraging the capability of the data from the Medworxx patient flow software 15

16 25 PTRs in 5 Countries To Date Country Reviews Conducted by Medworxx Reviews Conducted by Consulting Partner Total Reviews UK Canada 6 6 Australia France 2 2 US 1 1 Total

17 Medworxx::Year End Financials 17

18 Focus on High Growth Patient Flow Opportunities 18

19 Recurring Revenue :: Business Model (12/31/2013) Recurring revenue 80 % 20 % Maintenance and Hosting fees Annual Renewable Software Licenses Non-recurring revenue Perpetual Software Licenses Consulting Services Annual Renewable Licences 49% Consulting Services 9% Maintenance & Hosting 31% Perpetual Licences 11% 19

20 Enterprise Valuation :: Comparison (ttm) Corporation Stock Symbol/Exchange Enterprise Value/Revenue* Medworxx Inc. TSXV:MWX 1.18 Cerner Corporation Nasdaq: CERN 6.06 Authentdate Holdings Corp. Nasdaq: ADAT 5.71 Computer Programs & Systems Inc. Nasdaq: CPSI 3.33 MedAssets, Inc. Nasdaq: MDAS 3.24 Medidata Solutions Inc. Nasdaq: MDSO 8.87 Merge Healthcare Inc. Nasdaq: MRGE 1.92 Quality Systems Inc. Nasdaq: QSII 1.96 Streamline Health Solutions Inc. Nasdaq: STRM 2.92 WebMD Health Corp. Nasdaq: WBMD 3.11 Syslogist Ltd. TSXV: SYZ.V Constellation Software Inc. Toronto: CSU.TO 4.96 *Enterprise Value/ Revenue is calculated as the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. 20

21 Medworxx :: Leadership Board of Directors George Elliott, Chairman of the Board Director, executive, advisor on long term financial strategies to numerous public companies Dan Matlow, Director President & CEO, Medworxx Paul Collins, Director President & CEO at St. Thomas Elgin General Hospital Steve Garrington, Director Vice President International at InterSystems Har Grover, Director Founder and Managing Director of Nucleus GC Lee Matheson, Director Co founder of Broadview Capital Management Inc. Barry Tissenbaum, Director Independent consultant; former Senior Partner with Ernst & Young Bernard Webber, Director 26+ years with Ontario Public Service; former member, Board of Governors of the Information Technology Association of Canada (ITAC) 21

22 Medworxx :: Leadership Advisory Committee Dr. Myrna Francis Advisor to MaRS Discovery District, former President and CEO of Canada Health Infoway and former VP, Global Healthcare Industry for CGI Frances Pennell Consultant and former Partner with PricewaterhouseCoopers (PwC) USA Sam Marafioti Vice President of Corporate Strategy and Development, CIO at Sunnybrook Health Sciences Centre, Toronto Renah Persofsky The Portable Executive; founder and former President & CEO of Dexit Incorporated 22

23 Medworxx :: Leadership Executive Team Dan Matlow, President & CEO 20+ years experience in software sales, consulting, and development; 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 consulting experience including leadership roles within the UK National Health Service (NHS), former President and CEO of Sunnybrook Health Science Centre, ON and Senior Partner at Ernst & Young Brian Goffenberg, CA, CFO & Executive Vice President 20+ years experience in international financial management at DWL and Delrina (now Symantec); emphasis on IT market Niels Tofting, Senior VP Sales 10+ years experience in sales and sales management at Corechange and Open Text; top sales performer; emphasis on 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, Certified Lean/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 Andre Vandenberk, VP Product Management 30+ years in information technology and an original founder of Medworxx Nadine Brown, Marketing Director 10+ years marketing communications; former National Healthcare Communications Lead with Siemens Canada 23

24 Medworxx Solutions Inc. Dan Matlow, President & CEO x311 Brian Goffenberg, Chief Financial Officer & EVP x315