Investor Presentaiton
PREFERRED EQUITY RETURNS FROM EXITS TO DATE
Smillions CAD
Number of
Years
Invested
Capital Distributions Exit Capital
Invested
Total
Received Received
Return
% total
Return
IRR %
MAHC(1)
1.0
$ (18.4) $
7.2 $
Sequel
4.2
(77.4)
59.8
20.0 $ 8.8
120.9
48%
53%
103.3
133% 29%
Agility
5.4
(20.2)
18.5
28.3
26.5
131% 25%
LifeMark
11.3
(67.5)
75.6
123.4
131.5
195% 24%
MediChair
6.8
(6.5)
6.4
10.0
9.9
152% 24%
SBI
2.4
(106.8)
42.7
122.7
58.6
55% 24%
EOR
13.2
(7.2)
17.4
12.6
22.8
317% 22%
Killick
4.0
(41.3)
19.7
45.0
23.5
57%
20%
Quetico
3.0
(28.2)
13.1
30.4
15.4
55%
19%
Labstat
6.0
(47.2)
43.8
61.3
57.9
123% 19%
Solowave
5.8
(42.5)
31.9
44.5
33.9
80% 17%
KMH
7.0
(54.8)
21.3
13.8
(19.8) -36%
-13%
Sandbox (2)
3.9
(78.9)
25.7
33.7
(19.5) -25% -16%
SHS(3)
0.9
(15.0)
1.0
1.1
Group SM(4)
4.6
(40.5)
9.8
-
(12.9)
(30.7)
-86% -44%
-76% -67%
Totals from exits
$ (652.3) $
393.7 $ 667.8 $ 409.1
63%
ā Alaris has generated $409 million in total returns (+63%) on partners that have either repurchased all of
Alaris' units, or ceased operations.
ā The monthly distribution Alaris receives from its Partners ensures Alaris is getting a return on investment
from Day 1, rather than only on an exit event. This greatly reduces the investment risk.
(1)
(2)
MAHC repurchased Alaris' units after 1 year, resulting in an additional 24 months of distributions being paid to Alaris on exit. This resulted in an IRR much higher than what is expected.
Sandbox exit capital received excludes an additional US$4.0 million currently held in escrow and the potential for a US$2.0 million earnout. Returns on senior debt are included.
(3)
SHS went into receivership in December 2013, therefore no exit capital was received.
(4)
(5)
Alaris is not recording any value for remaining preferred units in SM. However, SM continues to have a financial obligation in the future should the business turn around.
Promissory notes outstanding with any partners are not included in the table above.
ALARIS
EQUITAINERS COME TRUST
EARNINGS COVERAGE HEAT MAP
Earnings Coverage Heat Map
.
DNT
Federal Resources
Planet Fitness
Providence (MyDyer)
LMS
Accscient
Unify
Heritage
SCR
Q4-19 Q1-20 Q2-20 Q3-20
1.5x-2.0x
1.5x-2.0x 1.5x-2.0x 1.5x-2.0x
1.2x-1.5x 1.2x-1.5x >2.0x >2.0x
1.5x-2.0x 1.2x-1.5x 1.5x-2.0x 1.2x-1.5x
<1.0x <1.0x
<1.0x <1.0x
1.2x-1.5x 1.5x-2.0x 1.5x-2.0x 1.5x-2.0x
1.2x-1.5x 1.2x-1.5x 1.2x-1.5x 1.2x-1.5x
1.5x-2.0x
1.5x-2.0x >2.0x
>2.0x
>2.0x
>2.0x >2.0x
>2.0x
1.5x-2.0x >2.0x 1.5x-2.0x 1.5x-2.0x
Guide
<1.0x
1.0x to 1.2x
1.2x to 1.5x
1.5x to 2.0x
>2.0x
.
Kim co
<1.0x
<1.0x 1.2x-1.5x >2.0x
ccComm
<1.0x
Fleet
<1.0x
>2.0x
Body Contour Centers
GWM Holdings
Amur Financial
Stride
Carey
n.a.
n.a.
1.5x-2.0x
1.5x-2.0x
<1.0x <1.0x
1.5x-2.0x 1.5x-2.0x 1.5x-2.0x
1.2x-1.5x 1.5x-2.0x <1.0x 1.5x-2.0x
>2.0x 1.2x-1.5x
>2.0x 1.5x-2.0x
1.5x-2.0x 1.5x-2.0x 1.5x-2.0x >2.0x
>2.0x
>2.0x
>2.0x
>2.0x
The table to the left displays the range of earnings
coverage ratios ("ECR") for each of our Partners over
the last 4 quarters. Generally speaking, a ratio above
1.0x provides enough earnings to cover distributions
to Alaris, interest and principal payments to lenders as
well as unfunded capital expenditures.
Of the 17 partners listed, two fall below less than 1.0x
earnings coverage, three are in the 1.2x to 1.5x
range, six are in the 1.5x to 2.0x range and six are in
the >2.0x earnings coverage range.
In Q3-20 vs Q2-20, 10 Partners had no change in the
ECR range, 4 had increases to their ECR range and 3
had decreases in the ECR ranges. The decrease for
GWM Holdings was due to their additional
distributions from the follow-on contribution made in
October 2020.
SCR and Kimco's ECRS are based on their current fixed distributions as opposed to fully contracted
ALARIS
EQUITY PARTNERS COME TRUST
15
16
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