Investor Presentaiton
DISTRIBUTION HISTORY AND SUSTAINABILITY
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•
Since 2008 Alaris has provided consistent dividend income through
its monthly dividend, and now, through trust distributions.
Annualized Distribution History
$1.70
$1.60
$1.50
$1.40
$1.30
In March 2020, Alaris made the decision to change its dividend from
monthly to quarterly. The first payment of such quarterly dividend
was in July. The new annualized dividend for the July payment was
changed to $1.16 per share ($0.29 per quarter). This was a
reduction of 30% from the previous annualized dividend of $1.65.
Alaris announced the conversion to an income trust on September
1, 2020. At that time Alaris raised the quarterly distributions to $0.31
per quarter ($1.24 annually). This was a 7% increase compared to
the previous dividend paid and was done to reflect the difference in
taxation of a trust distribution vs a corporate dividend. Alaris
estimates its Annualized Payout Ratio to be less than 75% at the
current level of trust distributions.
The new distribution rate not only reflects what we expect to be a
short-term cash flow disruption associated with the COVID-19
pandemic, but moving forward it will allow us to achieve our long-
term payout ratio objectives as well as being able to internally fund a
portion of our annual deployment once our cash flow streams from
our partners normalize.
Since inception, Alaris has paid over 140 consecutive monthly
dividends/distributions totaling more than $16 per share/unit and
over $450 million gross.
If you were to have invested $100,000 at the IPO price of $12 per
share in 2008 you would have received a cumulative total of
$140,590 in dividends/distributions (bottom right table) and your
initial investment would be worth $121,750 on Dec 7, 2020 (based
on closing price of $14.61) for a total return of $262,340.
ALARIS
EQUITAINE COST
$1.20
$1.10
$1.00
$0,90
$0.80
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$
$100,000 investment at IPO of $12 per share
SCALABLE MODEL
Alaris' unique structure, which gives it protections that allow for a non-controlling investment, allows it to be a
monitor of its Partners, not an operator.
• For the addition of every 5 new (net) Partners, Alaris would likely have to add 1 employee to the monitoring team.
Alaris' model is highly scalable
Revenue Growth vs Operating Expenses
$120
$110
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
ALARIS
EQUITY PARTNERS COME TRUST
2008 2009 2010
2011
2012 2013 2014
■Revenue SG&A
2015 2016 2017 2018
2019
19
20
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