Exhibit 99.1
SLIDE #1
Healthaxis
e-powering Healthcare
UBS Warburg Global Healthcare Services Conference
February 7, 2002
SLIDE #2
FORWARD LOOKING STATEMENTS
The following slides make certain forward-looking statements in an
effort to assist you in understanding the Company and its results. Such
forward-looking statements are based on the Company's current expectations and
are subject to a number of risks and uncertainties that could cause actual
future results to differ significantly from results expressed or implied in any
forward-looking statements shown here or that may be made from time to time by,
or on behalf of, the Company. These risks and uncertainties include, without
limitation, those set forth in the Company's most recent Annual Report on Form
10-K under the caption "Description of Business - Risk Factors" and in other
Company filings with the S.E.C.
HEALTHAXIS LOGO
SLIDE #3
Healthaxis: Today
- -- A financially sound, emerging, technology service firm committed to providing
innovative and configurable web-based connectivity and applications solutions
for health benefit distribution and administration to assist health insurance
payers, third party administrators, intermediaries and employers improve service
to members, employees and providers, with less hassle and at lower cost.
- -- Our business driver is to assist our customers, through the application of
our flexible technology to legacy systems, either fully integrated or on an ASP
basis, reduce administrative cost and improve their customer service, market
share and profitability.
HEALTHAXIS LOGO
SLIDE #4
[This slide contains a graphic in the center titled "Healthaxis Webaxis,"
surrounded by four (4) quarters of a pie chart containing the words "Provider,"
"Payer," "Member" and "Employer."]
Healthaxis: Today
Connectivity/Transaction Technology Sold to Healthcare Payers
Physician Connectivity Imaging/Data/Capture/Ops Support
- ---------------------- --------------------------------
WebMD GTESS
HealthWeb ACS
MedUnite Dakota
NaviMedix
RealMed
Per Se' Technology
HealthTrio
Millbrook
MDProductivity
Agent/Broker/Consumer Connectivity Claims Adjudication
- ---------------------------------- -------------------
Digital Insurance Trizetto (Erisco & RIMS)
eHealth Insurance Perot (HSD)
Simply Health EDS
Selectica CSC (TXEN)
FirePond QCSI
Channel Point SynerTech (Amisys)
Benefit Mall Intelliclaim
eBenx Healthx
deNovis (eHealthDirect)
Oasys
OAO (Lockheed Martin IT)
Member Connectivity Employer Connectivity
- ------------------- ---------------------
HealthTrio HeathWeb (Trizetto)
Verilet HeathTrio
HealthWeb (Trizetto) Healthx
Sylinq RealMed
Oasys
Note: Exemplary, not all inclusive
HEALTHAXIS LOGO
SLIDE #5
[This slide features two balloons emanating from a text box.]
Healthaxis: Today
Healthaxis.Com Insurdata
- -------------- ---------
ASP Provider
On-Line Claims Administration
Health Insurance Retailer IT & Imaging Services
Healthaxis
Revenues: $45 million*
EBITDA: $1.8 million*
*Amounts per the HAXS third Quarter 2001 10-Q Annualized
HEALTHAXIS LOGO
SLIDE #6
[This slide contains four (4) overlapping balloons of text.]
Web Technologies Imaging and Data Capture
- ---------------- ------------------------
Revenues: $6.6 million* Revenues: $4.6 million*
EBITDA: ($0.5 million)* EBITDA: ($0.2 million)*
Enrollment & Self-Service Connectivity Imaging and Data Capture
Self-directed Benefits Administration Insurance Payers/TPA's
Insurance Payers / Employers Competitive Service and Price
Functionality, Delivery & Price Volume driven
Application Solutions UICI Outsourcing
- --------------------- ----------------
Revenues: $12.3 million* Revenues: $21.4 million*
EBITDA: $3.3 million* EBITDA: $4.0 million*
Claims processing
Benefit Administration Outsourced Information Technology
ASP Platform Cost Plus Contract
Third Party/First Party Administrators Expires - January 2005
Domain Expert, Service & Cost
2 million members
*Amounts per the HAXS 10-Q Third Quarter 2001 Annualized
excluding corporate overhead
HEALTHAXIS LOGO
SLIDE #7
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Healthaxis: 2001 in Review
Repositioning for Growth
- -- New management - February 1, 2001
- -- Turned company around - stabilized financials
Positive cash flow (EBITDA) Stronger cash position
Reduced break-even by 30% Closer to net income
- -- Restructured into 4 accountable/focused businesses with P&L's
- -- Streamlined corporate overhead/cleaned up balance sheet
- -- Redirected development resources toward tactical products / solutions in Web
Technologies to meet market's connectivity demands
- -- Created meaningful business development / technology support partnerships
(Satyam, R.E. Nolan, WPC, Microsoft, BCE Emergis)
HEALTHAXIS LOGO
SLIDE #8
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Healthaxis: 2001 in Review
Repositioning for Growth
- -- Strengthened sales force
- -- Built stronger sales pipeline (from less than $1 million to over $15 million)
- -- Added meaningful customers (Trustmark, Cariten, BCE Emergis, BCBSA, NTCA,
AAG, Connecticare).
- -- Strengthened Board of Directors - healthcare & technology
- -- Instilled Values Based Culture
To deliver what we promise
To take ownership and accountability for our results
To do the right thing - - - all the time
To understand that relationships determine results
To team and run to win
HEALTHAXIS LOGO
SLIDE #9
Healthaxis: 2001 in Review
[This slide conveys revenue and EBITDA data in a tabular, bar graph format.
Revenue for the periods Q1 2000, Q2 2000, Q3 2000, Q4 2000, Q1 2001, Q2 2001 and
Q3 2001 were (in thousands) $11,375, $10,363, $11,016, $10,042, $10,837, $11,497
and $11,218, respectively. EBITDA for the same periods were ($2,496), ($3,483),
($931), ($1,613), ($2,855), ($814) and $442, respectively. This slide also
contains a timeline-type graphic along the bottom demarcating the milestones of
a company, beginning with "Turnaround," "Stabilization," "Corporate Renewal,"
"Growth" and then finishing with "Maturity." The slide indicates that Healthaxis
is in the "Corporate Renewal" stage, with the remaining stages to come in
2002-2005.]
HEALTHAXIS LOGO
SLIDE #10
Healthaxis: 2001 in Review
[This slide conveys Pro Forma Operating Results (PFOR) and Earnings Per Share
(EPS) data in a tabular, bar graph format. PFOR (which excludes goodwill
amortization, amortization of customer base, purchased software amortization, or
stock-based compensation expenses) for the periods Q1 2000, Q2 2000, Q3 2000, Q4
2000, Q1 2001, Q2 2001 and Q3 2001 were (in thousands) ($3,464), ($4,641),
($2,002), ($2,909), ($4,005) ($1,702) and ($388), respectively. EPS for the same
periods was ($0.87), ($0.96), ($0.53), ($0.32), ($0.33), ($0.13) and ($0.06).
The Q2 2001 numbers exclude restructuring charges. This slide also contains a
timeline-type graphic along the bottom demarcating the milestones of a company,
beginning with "Turnaround," "Stabilization," "Corporate Renewal," "Growth" and
then finishing with "Maturity." The slide indicates that Healthaxis is in the
"Corporate Renewal" stage, with the remaining stages to come in 2002-2005.]
HEALTHAXIS LOGO
SLIDE #11
Healthaxis: 2001 in Review
[This slide conveys cash balance data in a tabular, bar graph format. The cash
balance for each of the periods 3/31/00, 6/30/00, 9/30/00, 12/31/00, 3/31/01,
6/30/01, 9/30/01 and 12/31/01 was (in millions) $44.6, $31.5, $25.2, $17.2,
$12.0, $12.2, $12.5 and $13.2, respectively. This slide also contains a
timeline-type graphic along the bottom demarcating the milestones of a company,
beginning with "Turnaround," "Stabilization," "Corporate Renewal," "Growth" and
then finishing with "Maturity." The slide indicates that Healthaxis is in the
"Corporate Renewal" stage, with the remaining stages to come in 2002-2005.]
HEALTHAXIS LOGO
SLIDE #12
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Healthaxis: Strategic Objectives
- -- Become one of the top two players (based on market share) in each market
niche in which the company competes
- -- Develop reputation as a "make things happen", entrepreneurial, cost
competitive, innovative, quality provider of technology solutions for the
healthcare insurance in the U.S. - a company which customers can trust to meet
their needs
- -- Walk our talk with 5 company values
- -- Create substantial (results based) increase in shareholder value annually
-- steady revenue and earnings growth
-- tight expense management
-- investment in tactical technology improvements
-- sustainable 20% operating margin
HEALTHAXIS LOGO
SLIDE #13
[This slide conveys 2001 financial performance data and projects what 2004
financial data may be. This slide also contains a timeline-type graphic along
the bottom demarcating the milestones of a company, beginning with "Turnaround,"
"Stabilization," "Corporate Renewal," "Growth" and then finishing with
"Maturity." The slide indicates that Healthaxis is in the "Corporate Renewal"
stage, with the remaining stages to come in 2002-2005.]
Healthaxis: Strategic Financial Objectives
From 2001 To 2004
$44 Million* Revenue $100 Million Revenue
Unprofitable 20% Operating Margin
- -$6.19 EPS* $0.35 EPS
- ----------- ---------
$0.70 Share Price $1.00 Share Price
Enterprise Value ~ $500 MM
*Trailing 12 months ending September 30, 2001
HEALTHAXIS LOGO
SLIDE #14
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Road to Success: Achieve Greater Penetration of Attractive Market
- -- 450 TPA's / $2.3 billion revenues - growing with self-insurance / defined
contribution
- -- 1.75B manual medical forms / year = $700MM imaging / data capture market
- -- Paper claims cost $7 to $12 each; electronic claims $1.50 to $3 each
- -- Web-based enrollment and self-service for employers / payers expected to
reach 40% penetration in 2002
- -- Customer service inquiries $5 to $7 each; electronic inquiry $0.05 to $0.25
each
- -- MCO's that do not offer real-time information exchange by end of 2002 will
lose at least 25% market share
- -- Only 6% of healthcare transactions employ HIPAA standards today
- -- Payers do not want to replace legacy systems; seeking outsourced, e-business
connectivity solutions
Sources: Gartner, DiamondCluster, WM Mercer, Company estimates
HEALTHAXIS LOGO
SLIDE #15
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Road to Success: Capitalize on Core Strengths
- -- TPA customer franchise of approximately 2 million lives
- -- Web-based enrollment, self-service and brokerage applications gaining
traction
- -- ASP business model; proven recurring revenue stream
- -- Deep domain expertise in health insurance; HIPAA ready solutions
- -- Demonstrated ability to solve complex problems / reduce customer costs
- -- Open standard technical architecture; strong technical team
- -- Rapid software development; cost efficient deployment of business
applications
- -- Fortifying partnerships / alliances
HEALTHAXIS LOGO
SLIDE #16
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Road to Success: Execute to Fundamentals
Build on core assets (Web Technologies and Application Solutions)
-- Invest in technology feature and functionality (web products and
Insur-Admin platform) to continually align offerings with market's
needs
-- Leverage partners, alliances and new customers - cross sell
-- Focus on health insurance middle market ($200 mm to $2 B)
-- Capitalize on strong position in TPA market (top 190 companies = 85%
revenues)
-- Manage UICI relationship to win/win
Focus on profitability
-- Build volume and improve productivity in Imaging
-- Capture more of HIPAA / connectivity market
-- Continue pruning corporate overhead
-- Manage expenses to revenues - unitize development / delivery costs
-- "Everybody Sells" / "Run to Win"
Strengthen organization
-- Continue move from "technology driven" to "market driven"
organization
-- Build stronger sales distribution channels
-- Enhance operating capabilities
-- Build stronger customer services group - monitor customer
satisfaction
HEALTHAXIS LOGO
SLIDE #17
Road to Success: Evolve Revenue Model
[This slide conveys a breakdown of the Healthaxis revenue, comparing "Today" to
"Tomorrow." The breakdown for "Today" is roughly 62 percent professional
services, 22 percent transaction fees, 13 percent PMPM and 3 percent license
fees. The breakdown for "Tomorrow" is roughly 28 percent professional services,
10 percent transaction fees, 54 percent PMPM and 8 percent for license fees.
This slide also contains a timeline-type graphic along the bottom demarcating
the milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
HEALTHAXIS LOGO
SLIDE #18
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Road to Success: Enhance Brand Recognition
"We needed an experienced provider that could deliver the full range of
accessibility we wanted in a reliable, secure, cost-efficient manner. Of the
options we reviewed, Healthaxis brought us the strongest solution. Healthaxis
experience and reputation for delivering on their commitments gave us confidence
in their ability to provide a proven web-facilitated means of providing our
customers access to the information they need, when they need it." (CEO -
Cariten)
"For the past three years, we've made tremendous strides in reducing the paper
flow associated with processing medical claims. We selected Healthaxis because
of the company's ability to build on this progress and meet our very specific
requirements, complementing our current operations as we prepare for future
growth." (AVP,Operations - Trustmark)
"We originally estimated 18 months to realize EDI capabilities and HIPAA
transaction compliance, and the Microsoft platform enabled us to attain a
significant part of this goal in only 70 days." (VP, Claims - MEGA)
"What we found appealing was not only the powerful core functionality of the
Healthaxis products, but the clear use of Internet technology to support our
operation, giving us the ability to provide excellent customer service and
enhanced productivity." (SVP - HealthScope Benefits)
"We went though an intensive selection process and decided the Healthaxis
product was the strongest. It had the right functionality, ease-of-use, and
technology to quickly and easily integrate with our existing way of the doing
business." (VP and CIO - ConnectiCare)
HEALTHAXIS LOGO
SLIDE #19
[This slide contains a graphic in the center titled "Healthaxis Webaxis,"
surrounded by four (4) quarters containing the words "Provider," "Payer,"
"Member" and "Employer." This slide also contains a timeline-type graphic along
the bottom demarcating the milestones of a company, beginning with "Turnaround,"
"Stabilization," "Corporate Renewal," "Growth" and then finishing with
"Maturity." The slide indicates that Healthaxis is in the "Corporate Renewal"
stage, with the remaining stages to come in 2002-2005.]
Road to Success: Capitalize on Complementary Market Opportunities
Physician Connectivity Imaging/Data/Capture/Ops Support
- ---------------------- --------------------------------
WebMD GTESS
HealthWeb ACS
MedUnite Dakota
NaviMedix
RealMed
Per Se' Technology
HealthTrio
Millbrook
MDProductivity
Agent/Broker/Consumer Connectivity Claims Adjudication
- ---------------------------------- -------------------
Digital Insurance Trizetto (Erisco & RIMS)
eHealth Insurance Perot (HSD)
Simply Health EDS
Selectica CSC (TXEN)
FirePond QCSI
Channel Point SynerTech (Amisys)
Benefit Mall Intelliclaim
eBenx Healthx
deNovis (eHealthDirect)
Oasys
OAO (Lockheed Martin IT)
Member Connectivity Employer Connectivity
- ------------------- ---------------------
HealthTrio HeathWeb (Trizetto)
Verilet HeathTrio
HealthWeb (Trizetto) Healthx
Sylinq RealMed
Oasys
Note: Exemplary, not all inclusive
HEALTHAXIS LOGO
SLIDE #20
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Road to Succeed: Achieve 2002 Financial Targets
September 30, 2001* 2002 Estimate
------------------ -------------
Revenue Growth (Organic) $44 Million 15% to 25%
EBITDA $4.8 Million Loss $2.5-$3.5 MM Profit
Pro Forma Operating Results** $9.0 Million Loss Break-even
EPS $6.19 Loss per share Positive in Q4
*Trailing 12 months
**Pro forma Operating Profit excludes goodwill amortization, amortization of
customer base, purchased software amortization, or stock based compensation
expenses
HEALTHAXIS LOGO
SLIDE #21
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
Healthaxis Investment Opportunity
- -- Strong profitable franchise in growing TPA market
- -- Flexible technology platform in rapidly expanding healthcare web technology
market
- -- Clock running down on need for HIPPA compliant transactions
- -- Growing pipeline of business opportunities - becoming discovered
- -- Upside potential from existing partner arrangements
- -- Foundation revenue stream from largest investor
- -- Stable financial position
HEALTHAXIS LOGO
SLIDE #22
[This slide contains a timeline-type graphic along the bottom demarcating the
milestones of a company, beginning with "Turnaround," "Stabilization,"
"Corporate Renewal," "Growth" and then finishing with "Maturity." The slide
indicates that Healthaxis is in the "Corporate Renewal" stage, with the
remaining stages to come in 2002-2005.]
"This is a marathon, not a sprint. We understand the course, and we will run
with a strategy, a consistency and determination, and at a pace, to ensure we
are a front-runner as the race progresses."
James McLane, Chairman & CEO
SLIDE #23
Healthaxis
e-powering Healthcare
February 7, 2002