Exhibit 99.1
Exhibit 99.1
Presentation of HealthTronics
December 5, 2005
John Q. Barnidge
CFO
Statements in this presentation that are not strictly historical, including statements regarding plans, objective and future financial performance, are “forward-looking” statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although HealthTronics believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that the expectations will prove to be correct. Factors that could cause actual results to differ materially from HealthTronics’ expectations include, among others, the existence of demand for and acceptance of HealthTronics’ services, the integration of Prime’s and HealthTronics’ businesses, regulatory approvals, economic conditions, the impact of competition and pricing, financing efforts and other factors described from time to time in HealthTronics’ periodic filings with the Securities and Exchange Commission.
HealthTronics
2
Business Segments/Sub-Segments
Urology Services
Medical Devices
Specialty Vehicles
3
Urology Services
Lithotripsy
Prostate Therapies
Uropathology
HealthTronics
4
Leading Competitive Position
Partnering with 1/3 of Nation’s Urologists
Veteran Management Team
Bringing Cutting-edge Therapies to Market
Successful Partnership Model
Proven Execution
HealthTronics
5
Core Objectives
~ Leverage Urology Channel
Trusted Advisor to our Partners
Value-added Products and Services
Facilitate Marketplace Consolidation
Growing Revenue & Taking Share
Expanding Platform
Expand Margins
Pricing Stability
Wholesale Pricing Power
Operating Efficiencies
HealthTronics
6
Lithotripsy
Cost Effective, Non-invasive, Efficacious
Fractional Cost of Surgical Alternatives
Market Scope
250,000 Cases per Year
$2,000 per Case Revenue
$500M Revenue Market
Physician-driven Therapy
No Alternative Therapy
~ 93 Partnerships in 47 states
~ 183 installed litho base
~ Over 750 care venues
HealthTronics
7
Lithotripsy Partnership Ecponomics
HealthTronics
8
Prostate Therapy - BPH
Benign Prostatic Hyperplasia
Non-cancerous Enlargement of the Prostate
Market Scope
Affects 50% of Men Over Age 60
13 Million American Men in 2004
Growth Rate
From 40,000 to 360,000 Minimally Invasive Treatments
$650 Million - $700 Million Market
Multiple Treatment Methodologies
TUMT - Transurethral Microwave Therapy
PVP GreenLight
HealthTronics
9
Prostate Therapy - Prostate Cancer Market Scope Second Most Common Cancer in American Males 230,000 New Cases per Year in the U.S. Baby Boomer Impact (approximately 40 million males) $5B market Dramatic Increase in Public Awareness Demanding Focal Therapy vs. Total Ablation Participating in the Diagnosis PSA Testing Anatomical Path HealthTronics 10 Prostate Therapy - Prostate Cancer HealthTronics 11 Uropathology Market Market is Approximately $500 Million 8,400 Private Practice Urologists Approximately 10 Prostate Biopsies / Month Each Patient = Approximately $600 Revenue 60% of Patients are Medicare Medicare Reimbursement is Excellent HealthTronics 12 HealthTronics Uropath Advantage - Big Lab Technology, Small Lab Service Focal Diagnosis to compliment Focal Therapies Timeliness & Accuracy – Turnaround Within 48 Hours Technology - Electronic Reporting Customer Service - Physician Oriented Pathologists HealthTronics 13 Development Strategy Beta Users HTRN Physician Partners Beta Sites Georgia, Louisiana & Mississippi Investment 2005 CapEx $2 Million HealthTronics 14 Medical Device Sales & Service HealthTronics 15 Devices Lithotripters Market Scope: Total US Installed Base of 650 Units Average Selling Price of $390,000 35% of US Market is Spark Gap Technology US HTRN Manufactured Installed Base of 220 Units Opportunities: Dual Branding Strategy to Expand Spark Gap Market New Model with Multi-Functional Capability Enjoys Premium Price R&D for More Efficient Shock Source HealthTronics 16 HTRN New Urology Imaging System HealthTronics 17 Devices Urology Imaging System Market Scope: Total US Installed Base of 4,500 Units 200 - 250 Units Purchased in US Annually at $300,000 ASP Urologist Influential in Equipment Decision Market Moving Toward Multi-Specialty Surgical Units Opportunities: UroVantage launched in 2Q 2005 MultiVantage launched in 4Q 2005 Design has Unparalleled Flexibility & Image Quality Superior Cost Position and Optimal Pricing Upside HealthTronics 18 Devices Other Products Patient Management Tables: US Installed Base of 4000 Units, HTRN 450 Units Installed Comprehensive Dealer Network, OEM Supplier PSA Testing: 6 Million PSA Tests Performed Annually, $200 Million Market In-Office Testing Approved and now Reimbursed by All Payors Signed Marketing Agreement with Qualigen, Inc. Only In-Office Test System On the Market - Patented Significant Profit Driver for Physicians HealthTronics 19 Service Engineering Installed Base/Network: Currently Service 38% of US Lithotripter Installed Base 180 of 250 Total HTRN Service Base is Within Partnerships 36 Field Engineers Trained in Lithotripsy and X-Ray 530 Units Generating Consumable Revenue Opportunities: ISO Certification in Atlanta Manufacturing Facility Deeper Penetration of Urology Market via Litho and Imaging Leverage Applied Engineering Platform and Hospital Relationships HealthTronics 20 Specialty Vehicle Manufacturing HealthTronics 21 Specialty Vehicle Manufacturing AK Specialty Vehicles is Global Leader in the Design, Engineering and Construction of Specialty Vehicles. Medical Imaging Broadcast & Communications Command/Homeland Security HealthTronics 22 Leadership Position in Mobile Medical Worldwide Manufacturing Facilities in U.S. and Europe Strategic Relationships for all Modalities GE Healthcare Technologies Philips Medical Systems Siemens Medical Solutions Extraordinary Market Breadth HealthTronics 23 Leadership Position in Broadcast & Communications Vehicles Worldwide Strong Customer Base Major Networks - ABC, CBS, FOX, NBC Cable Networks - CNN, Time Warner Satellite Uplink Service Market Relay House, PSSI, Calhoun, Arctek, Coastal, STS Export Market Canada, Morocco, Vietnam, Hong Kong Barriers to Entry Existing Customer Relationships Sophisticated Systems Integration HealthTronics 24 Homeland Security HealthTronics 25 Homeland Security Mobile Communications Centers First Responder Units Mobile Emergency Ops Units Military Training Simulators Tactical transport HealthTronics 26 Homeland Security Federal Funding Programs $2.6B In Federal Funds are Allocated for 2005: Urban Area Security Initiative Grant Earmarked for Top 50 Metropolitan Areas State Homeland Security Grant States/Municipalities Response Capabilities 2005 Programs Initiated by DOHS Include: National Protection Initiatives Biohazard Detection Port Security Container Scanning Cargo Inspection HealthTronics 27 Conclusion Market Dominator Hi Barriers to Entry “Debt-Free” Segment Focused, Stand Alone Business Unit HealthTronics 28 2006 Financial Forecast HealthTronics 29 Segment Summary Income Statement 2006 Forecast HealthTronics 30 Key Financial Statistics HealthTronics 31 2005 Forecast Pro Forma Free-Cash Flow HealthTronics 32 Consolidated Summary Income Statement HealthTronics 33 Implementation of Strategic Iniatives 1. Proceed with FDA approval for HIFU 2. Introduce Urology Imaging System 3. Establish UroPathology Capability (early 2006) 4.Focus on strategic acquisition targets 5.Divest Specialty Vehicles Division HealthTronics 34 Reconcilitation of EBITDA and Adjusted EBITDA HealthTronics 35 Reconcilitation of EBITDA and Adjusted EBITDA HealthTronics 36 Reconcilitation of EBITDA and Adjusted EBITDA HealthTronics 37 Reconcilitation of EBITDA and Adjusted EBITDA HealthTronics 38
