RENN Capital
Presentation
May 15, 2009
OTCBB: ALHC
Forward Looking Statement
This presentation may contain "forward-looking statements" within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended,
Section 27A of the Securities Act of 1933, as amended and pursuant to the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements may relate to financial results and plans for future business
activities, and are thus prospective. Such forward-looking statements are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from future results expressed or implied by such
forward-looking statements. Among the important factors that could cause
actual results to differ materially from those indicated by such forwardlooking statements are competitive pressures, loss of significant customers,
the mix of revenue, changes in pricing policies, delays in revenue
recognition, lower-than-expected demand for the Company's products and
services, general economic conditions, and the risk factors detailed from
time to time in the Company's periodic reports and registration statements
filed with the Securities and Exchange Commission. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform
Act of 1995 and, as such speak only as of the date made.
Our Business
Alliance HealthCard:
• Provides consumer membership plans offering access to networks
which provide discounts and services to the consumer for a variety
of products
• Designs and markets specialty insurance and warranty products on
the goods our clients sell to their customers
• Sells programs to consumers through retail, rent to own, financial
and consumer finance clients
• Creates turnkey programs for our customers
Our Approach
We help our marketers make money by providing them with
a way to help their customers save money
$1 revenue for us =
$3 revenue to the marketer
$5 to the customer
Our Clients
300 Businesses including:
•
•
•
•
State Farm Insurance Company
Rent A Center
CVS Pharmacies
Discover Card
One million + consumers
AHCP
3,700 AHCP agents targeting
– 47 million Americans without health insurance and millions more looking
to optimize their existing coverage
• 500,000 to 600,000 monthly that are losing their jobs and their
employer sponsored health insurance
– 100 million without dental or vision insurance
As a group, they make AHCP the largest insurance agency
in America offering health insurance for individuals
Three Profit Centers
Three divisions focused on revenue building
1. Consumer Plans
2. America’s Health Care Plans (AHCP)
3. Benefit Marketing Solutions (BMS)
Alliance HealthCard
•
Markets healthcare related discount products to the consumer through third
party marketers
•
Partners with businesses through direct mail and direct marketing using
their client lists
•
Partners with CVS/Caremark to offer their Health Savings Pass
•
Imbeds plans within existing offerings
– National Motor Club
– State Farm
•
Customizes programs
– Melaleuca
– Qualified Health
•
Administrates Patient Advocacy programs*
–
Discover Card
*My Health Assistant – “Best Innovative Plan Design” and “Best of Show” –
Consumer Health World
Alliance HealthCard
Healthcare discount product availability:
• Access Plans has its own vision and dental networks
•
Targeted for expansion
• We contract directly with PBMs and PPOs to gain access to deeply
discounted volume rates
AHCP
• AHCP markets an assortment of plans designed to fit specific needs
and budgets.
• Distributes products through the more prominent health insurance
carriers in the country, including:
•
•
Golden Rule
•
Aetna
•
World Insurance
•
American National
AHCP’s reach is substantial with over 3,700 agents
• Recent upsurge in business as a result of:
• Heightened focus on revenue building
• People losing their employer-sponsored group health care coverage
• Increasing need for individual health insurance coverage – and an agent to explain it
AHCP
Positioned for the future
• Established distribution
• Experience in and flexibility to develop new products
• Poised to handle Obama administration health care initiatives
BMS
• Benefit Marketing Solutions (BMS) focuses on
protection products and consumer savings
• BMS delivers savings to consumers on:
Groceries
Restaurants
Amusement Parks
Movies
Auto repair
Travel
• BMS offers specialized protection programs:
Extended service programs
Leased Property Insurance
AD&D
Involuntary unemployment
BMS
BMS reaches the consumer primarily through the rental
purchase industry
•BMS dominates this market space
•Its largest client, Rent A Center, has more than 40% of its 1.5 million
customers enrolled in our program
•Susan Matthews was named Vendor of the Year by APRO, the industry’s
national trade association.
Access Plans Merger
• More than doubles the gross revenue
• Operations consolidation will reduce expenses for both
companies
• Improve productivity in all three division
• Manpower reductions have already reduced annual payroll by nearly
$2 million, making the transaction immediately accretive
• Marketing opportunities.
• Opportunity for cross selling AHCP offerings to 4,000 BMS locations
• Build on recent momentum at AHCP
Strategic Activities
• Accelerate organic growth through a focused sales
organization
• Seek out additional opportunities to expand through
mergers and acquisitions
Focus
• Our primary focus today is the same as when we first
opened our doors:
• Focus on the fundamentals– growth in revenue and earnings
• We have a very strong, experienced and committed
management team that buys into this philosophy and
that believes:
• What we have accomplished so far is, only the beginning
Financial Highlights
• Access Plans USA acquisition occurred 4/1/09
• Results will be included in 3Q09
• Fiscal year ends 9/30
Financial Highlights
Revenue
(millions)
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
$4.8
$5.3
$5.4
$5.5
$5.7
$5.9
EBITDA (millions)
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
$1.0
$1.2
$1.4
$1.3
$1.5
$.8
Shareholder’s equity (millions)
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
$1.2
$1.9
$2.5
$3.3
$4.2
$4.6
We help our marketers make money by
providing them with a way to help their
customers save money
OTCBB: ALHC