Exhibit 99.1
Exhibit 99.1
Presentation of HealthTronics
August 2006
Sam B. Humphries
CFO
Statements in this presentation that are not strictly historical, including statements regarding plans, objectives 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, Inc. 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 acquired 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.
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Business Segments/Sub-Segments
Urology Services
Lithotripsy
Prostate Therapies
Medical Products
Sales
Service
Anatomical Pathology
HIFU Clinical trials
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Urology Services
Leading Competitive Position
Partner with approximately 1/3 of Nation’s Urologists
Veteran Management Team
Bringing Cutting-edge Therapies to Market
Successful Partnership Model
Proven Execution
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Urology Services
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
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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
Revolix Laser
TUMT - Transurethral Microwave Therapy
PVP GreenLight
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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
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Medical Products
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 Enables Premium Price
R&D for More Efficient Shock Source
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Medical Products
Service Engineering
Installed Base/Network:
Currently Service Approximately a Third of US Lithotripter Installed Base
36 Field Engineers Trained in Lithotripsy and X-Ray
Additional Consumable Revenue
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Medical Products
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 Strong
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Strategic Initiatives
With the completion of the sale of our specialty vehicle division, we are performing a comprehensive strategic review and reorganization of many aspects of our business. Any prior earnings guidance for 2006 should not be used or relied upon. We expect this reorganization will result in significant one-time costs during 2006. In late 2006 we will provide guidance for 2007 reflecting the sale of our specialty vehicle division, as well as the costs and benefits associated with our reorganization.
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