Exhibit 99.1
[Angelica logo]
PRESENTATION
SEPTEMBER, 2004
[Angelica logo]
SAFE HARBOR STATEMENT
This presentation contains forward-looking statements, which reflect
Angelica Corporation's current views with respect to future events and
financial performance and are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve risks and uncertainties that may cause our actual results
to be materially different from those expressed or implied by these
statements. A more detailed description of certain factors that could affect
actual results include, but are not limited to, those discussed in Angelica
Corporation's filings with the Securities and Exchange Commission.
[Angelica logo]
OUR VISION
Angelica's objective is to be the leading
provider of linen management services to
the U.S. healthcare market, using its
scale, quality and service to differentiate
its services.
[Angelica logo]
EQUITY SNAPSHOT
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o EXCHANGE/SYMBOL NYSE: AGL
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o SHARE PRICE AS OF 09/01/04 $23.25
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o MARKET CAPITALIZATION $209M
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o SHARES OUTSTANDING 8.97M
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o PRICE/REVENUES (TTM) 0.68
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o DIVIDEND/YIELD $0.44/1.89%
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[Angelica logo]
ANGELICA'S HISTORY
o Founded in 1878 as uniform manufacturing business
o IPO in 1958; listed on NYSE in 1972
o Expanded business to three divisions in 1960's: Manufacturing,
Textile Services and Retail
o Sold Manufacturing Division in 2002
o Completed Retail division sale in July, 2004
[Angelica logo]
ANGELICA'S FUTURE
o Positioned to focus solely on the Healthcare Services Industry
o Since September, 2003, have reduced Corporate overhead from 50
people to 15 people, as part of company refocus
o Consolidating large fragmented market through both organic growth
and acquisitions
o Improving efficiency of operations and refining cost structure
[Angelica logo]
EXPERIENCED MANAGEMENT
TEAM
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o STEVE O'HARA, CEO AGGRESSIVE NEW LEADER, WITH 25
YEARS BUSINESS EXPERIENCE
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o JIM SHAFFER, CFO CPA WITH 28 YEARS FINANCE
EXPERIENCE, INCLUDING OVER 5 YEARS
WITH ANGELICA
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o STEVE FREY, GENERAL COUNSEL PRIVATE PRACTICE AND REGULATORY
EXPERIENCE. OVER 5 YEARS WITH ANGELICA
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o PAUL ANDEREGG, PRESIDENT ATS 25+ YEARS IN REGIONAL SERVICE
BUSINESSES, 11 YEARS WITH TRU GREEN
COMPANIES. LAST 3 YEARS WITH ANGELICA
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o RUSSELL WATSON, ATS VP OPS 3 YEARS WITH ATS, AFTER 12
YEARS WITH NATIONAL SERVICES INDUSTRIES
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o RICH FIORILLO, ATS CFO CPA WITH 23 YEARS FINANCE EXPERIENCE,
INCLUDING 3 YEARS WITH ATS
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o STEVE LANG, VP SALES & MARKETING RECENTLY JOINED ANGELICA, AFTER 8 YEARS
WITH NOVARTIS OPHTHALMICS AND 16 YEARS
WITH ALLERGAN, INC.
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[Angelica logo]
ANGELICA TEXTILE SERVICES
(ATS)
o Delivers linen management solutions everyday
o 28 plants located in U.S.
Antioch, CA
Colton, CA
Fresno, CA
Las Vegas, NV Depot
Long Beach, CA
Los Angeles, CA
Orange, CA
Phoenix, AZ
Pomona, CA
Rio Vista, CA
San Fernando, CA
Stockton, CA
San Diego, CA
Vallejo, CA
Dallas, TX
Houston, TX
Chicago, IL
Columbia, IL
Lorain, OH
Ballston Spa, NY
Batavia, NY
Pawtucket, RI
Edison, NJ
Durham, NC
Columbia, SC
Rockmart, GA
Ootewah, TN
Holly Hill, FL
Tampa, FL
[map of United States]
[Angelica logo]
PARTICIPANT IN LARGE AND
GROWING MARKET
o ATS serves approx. half of healthcare market
o Current market share in markets served
o Hospitals -26%
o Clinics -1%
o Long-Term Care -3%
U.S. HEALTHCARE LINEN MARKET
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ESTIMATED AT $5.3 BILLION
[graph]
HOSPITALS CLINICS LONG-TERM CARE
$1.8B $2.4B $1.1B
[Angelica logo]
INDUSTRY ENVIRONMENT
o Favorable demographic trends support future increase in product
demand
o Highly fragmented
o Only two national competitors (Crothall Services and Sodexho
Laundry Services)
o Approx. 13 mid-size regional providers
o Approx. number of other providers:
1,469 hospital on-premise laundries (OPLs)
335 hospital laundry coops
200 single operation providers
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2,004
[Angelica logo]
SIGNIFICANT MARKET
OPPORTUNITIES
ACUTE CARE MARKETS IN WHICH
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AGL PARTICIPATES
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[graph]
ON-PREMISE LAUNDRIES COOPS COMPETITORS ANGELICA
24% 6% 44% 26%
UNTAPPED ACUTE CARE
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MARKETS
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[graph]
ON-PREMISE LAUNDRIES COOPS COMPETITORS
34% 7% 59%
[Angelica logo]
GROWTH STRATEGY
o Continue to provide superior service and competitive pricing for
organic growth
o Expand into high growth clinic and long-term care markets
o Target on-premise laundry conversions
o Pursue complementary and accretive acquisitions
o Improve efficiency of operations and refine cost structure via
facility rationalization and investment
[Angelica logo]
RECENT ACQUISITIONS
DATE TRANSACTION BENEFIT
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MAY 2004 PURCHASED NEW ENGLAND STRENGTHENED NEW ENGLAND
HEALTHCARE BUSINESS OF TARTAN POSITION
TEXTILE
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APRIL 2004 DUKE UNIVERSITY HEALTH SYSTEM EXAMPLE OF HOSPITAL SYSTEM
LAUNDRY IN DURHAM, NC OUTSOURCING LINEN
MANAGEMENT
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APRIL 2004 TWO ON-PREMISE LAUNDRY (OPL) STRENGTHENED REGIONAL
FACILITIES AT HOSPITALS LOCATED POSITION
IN TEXAS AND GEORGIA
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DECEMBER 2003 NATIONAL SERVICES INDUSTRIES' ENABLED AGL TO SERVE 75% OF
HEALTHCARE LAUNDRY PLANT AND FLORIDA MARKET
BUSINESS LOCATED IN SAFETY
HARBOR, FL
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NOVEMBER 2003 CUSTOMER CONTRACTS AND SELECTED STRENGTHENED REGIONAL
ASSETS OF TENNEY LAUNDRY POSITION
SERVICES IN BATAVIA, NY
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[Angelica logo]
FINANCIAL REVIEW
[Angelica logo]
STEADY ANNUAL ATS REVENUE GROWTH
[graph]
IN $ MILLIONS
FY00 FY01 FY02 FY03
$242.6 $259.1 $271.3 $291.5
[Angelica logo]
IMPROVING ANNUAL PRETAX INCOME
FROM CONTINUING OPERATIONS
[graph]
IN $ MILLIONS
FY00 FY01 FY02 FY03
$2.1 $6.8 $13.2 $15.3
<FN>
NOTE: FY02 is before $6.8 loss on early extinguishment of debt
[Angelica logo]
REVENUE AND INCOME FOR FIRST
6 MONTHS OF FY 2004
ATS REVENUE PRETAX INCOME FROM CONTINUING OPERATIONS
[graph] [graph]
6 MO. FY03 6 MO. FY 04 6 MO. FY 03 6 MO. FY 04
$142.4 $156.0 $8.5 $7.0
IN $ MILLIONS
[Angelica logo]
STRONG BALANCE SHEET
CONDENSED AND UNAUDITED AS OF JULY 31, 2004 ($000)
ASSETS LIABILITIES AND EQUITY
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CASH $ 9,961 ACCOUNTS PAYABLE $ 18,289
ACCOUNTS RECEIVABLE (NET) 37,763 OTHER CURRENT LIABILITIES 31,352
LINENS IN SERVICE 36,039
OTHER CURRENT ASSETS 8,700
PROPERTY AND EQUIPMENT (NET) 91,839 LONG-TERM DEBT 20,441
OTHER LONG-TERM LIABILITIES 15,303
OTHER ASSETS 48,118 SHAREHOLDERS' EQUITY 147,035
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TOTAL ASSETS $232,420 TOTAL LIABILITIES AND EQUITY $232,420
A/R DAYS OUTSTANDING 42 PERCENT DEBT TO TOTAL CAPITALIZATION 12%
[Angelica logo]
GUIDANCE
o Forecasting:
o 5% organic healthcare revenue growth, offset slightly by
divestitures of non-healthcare business
o 5%-15% top-line growth from acquisitions
o Fully Diluted EPS of $1.15-$1.30 in FY 2004, assuming no major
impact from acquisitions or divestitures
[Angelica logo]
ANGELICA ADVANTAGES
o Market leader in healthcare textile services
o Extensive national reach, with regional focus
o Scalable operations
o Strong, experienced management team
o Strong balance sheet to facilitate growth, as well as continue
dividend policy, currently at $0.11 per share quarterly
[Angelica logo]
SUMMARY
By pursuing its stated growth initiatives,
Angelica will be the leading provider of linen
management services to the U.S. healthcare
market and, as a result, will maximize
earnings and cash flow and generate superior
returns for its shareholders.
[Angelica logo]
[Angelica logo]
PRESENTATION
SEPTEMBER, 2004
[Angelica logo]