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If you are using a phone to access select “Use Telephone” or if using a Mic Select Mic & Speakers >>>>>> GoToWebinar Attendee Panel All Are “Muted” Until Q & A begins >>> • To ask a question live, Select “Hands Up”>>>>> anytime and then type “I have a question for “Live” in the Question box below right. (To use Live Option your Personal Audio Pin must have been entered.) • If you just want to type your question, do so in the “Enter a question for Staff” box. • After presentation, at time of Q & A, all questions will be addressed in order received. • You can use these features at anytime during the Presentation
Welcome to SPIN’s Q311 Investors Conference Call and Presentation. We will review some company fundamentals for new investors as well as addressing our Q3 earnings and future outlook. • At any time during the presentation, feel free to submit questions through the available chat box to the side of the online presentation. If you would rather ask a question live, just mention so in the chat box and send. At the end of the prepared remarks, text questions will be addressed, and attendee voice access will be un-muted. • Speakers today in order of appearance will be: • John Bergeron, Chief Financial Officer • Dr. William F. Donovan, CEO • John Talamas, COO • Gary M. Giblen, Director of Strategic Development, Finance & Communications • Video Replay Will Be Available At: http://www.spinepaininc.com Spine Pain Management Inc. (Symbol-SPIN)2011 Q3 Earnings Conference Call And Presentation
Disclaimer Forward-Looking Statements: This presentation includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this presentation that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this presentation should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.
SPIN: A Big Win-Win for Doctors & Patients Doctors: • New Revenue Center + Opportunity for additional Non-Spin Procedures • Get immediate payment vs. 3-15 month wait for traditional health insurer • Eliminate uncertainty as to payment amount • Dr. controls Quality of Spine Injection Procedure which produces more accurate test results Patients: • Get appropriate, necessary and reasonable treatment without delays • Minimize pain while optimizing outcomes • Streamline case settlement by getting correct diagnosis and treatment Investors: • A New Very Profitable “Spin” on a Time Proven Recession Proof Multi-Billion Dollar Industry • Capitalize on the Inevitability of Accidents while also providing a Streamlined, Cost Effective solution for patients
Anatomy Of A Typical Case Patient Attorney Retained PT With Chiro Etc. MRI & Init. Diagnosis Meets Spine Surgeon Diag. NB Injection SPIN Funds Report To Attorney Perk Disk Decomp SPIN Waits For Settlement Months 2 3 4 5 6 7 8 9 10 11 1 12 13-18 Procedure Is Billed CPT $5,500 Per Injection Procedure Is Billed CPT $25,500 Per Injection SPIN Start to Payment 1 2 3 4 5 6 7 8-13
Q3 Revs Up Over 100%* * Refer To 10Q For Definition of Net & Gross Revenues
Q3 Net Income Up 170% EPS $.04 Per Share vs. $0.02
Outlook is Bright SPIN is very comfortable in attaining its previously communicated growth goals. These are based on: • 6 centers and relationships by end of 2011 (add 1 by year-end) • 10-14, in as many cities, by end of 2012
Beyond the Numbers--Key Developments Since Q2 Opened center #5, in Jacksonville FL Resolved lawsuit originating from 2007 before the development of SPIN, reducing shares outstanding by 3% and minimizing share leakage with no cash outlay to SPIN Staffed key positions: • Filled CFO Position • Widened investor outreach by hiring seasoned Wall Street professional as Director of Strategic Development/Finance/Communications
Investment Considerations Proven Concept, Simple Roll-Out Story Mid-2009 flagship center successful, and being rapidly and smoothly replicated; co. profitable since SPIN model implemented despite aggressive expansion Highly Qualified Management CEO/Co-Founder: Dr. William Donovan a prominent board-certified orthopedic surgeon with prior track record in early stage public companies COO/Co-Founder: John Talamas has 10+ yrs marketing for docs and attorneys treating personal injury cases; also accounting and finance background Rare Combination of Sustainable High Growth and High Profit Deep-seated structural impetus for docs to seek SPIN services Recession-proof business with recurring revs Minimal SG&A add-on needed=very scalable Significant Insider Buying
Billings Are Growing Rapidly,at Significant Level Per Share Net billings outstanding at Q3 = $0.31 per share ($0.66 Gross) Collection Experience Has Been Strong
Gary M. Giblen Director of Strategic Development, Finance and Communications ggiblen@spinepaininc.com (203) 324-2022 http://www.spinepaininc.com Primary Investor Contact
Don’t hesitate to call or drop us an email with any questions you may still have. If you are ever in Houston, give us a call and come by for a visit. Our Address is: 5225 Katy Fwy # 600 Houston, TX 77007-2211 http://www.spinepaininc.com Thank You…