PRESIDENT’S MESSAGE  1  The Path Forward  Without question, 2013 was the busiest and most interesting year that we have had in the five years that we have been a  public company. The year was marked by the largest achievements in our history and it was also marked by the first  failure of a partner’s business in our history. While that is the nature of the business we are in, any company would be  foolish not to learn and grow from both its successes and its failures.  With the way that Alaris contributes capital to a private company and the criteria it uses to make its decisions (preferred  cash distributions, low percentage of the businesses economics, businesses with low levels of debt and capital expenditure  requirements, the use of collars on our distributions to reduce cash flow volatility) an awful lot has to go wrong for us not  to receive a distribution from one of our partners. For our partners at SHS, everything went wrong. Looking back, the key  issue that was very different than any other situation that we have ever gone into, and any situation that we will go into  going forward, was the lack of management continuity and a misalignment of interests. Any situation where you have a  management/ownership group that has not displayed a long track record of performance with the specific assets that  provide us our cash flow provides too many unknown variables. Too many of those unknowns were out of the control of  SHS’s management team, making any correction to the situation all but impossible. While the outcome on SHS was bitterly disappointing, it certainly drove home many of the key parts of our business model  that we set out upon founding the business over ten years ago. First among those is diversification. Over the course of  time, no matter how low risk your investment structure is, there will be business risks that pop up from time to time. While  we have partnered with tremendous companies over the years that has given us an enviable track record, building a  diversified revenue stream is still the best way to reduce risk. That certainly paid off in this case as the SHS distribution  represented just 3% of our revenue. So even with an outright failure of SHS’s business, our payout ratio was not materially  impacted and remained right at our target of 80% of our distributable cash flow. Our objective has always been to have  no revenue stream represent more than 10% of total revenue and given our continuing growth expectations, we believe  that we should hit that target within two years. Today, our largest revenue stream is approximately 17% of total revenue.  The rest of 2013 was the best performance that we have ever had. Coming off of 2012’s record year of $90 million of  capital deployed, Alaris deployed over $170 million in 2013. We added four new partners as well as helping to fund growth  in some of our existing partners. The fact that we have now completed more than 20 follow-on transactions with current  partners is a testament to the long-term sustainability of our offering to private companies. Our partners are successful,  profitable businesses with many options for capital. The fact that they continue to choose Alaris as their capital partner is  an excellent reference for future partners. Nearly doubling our next busiest year not only led to our sixth and seventh consecutive dividend increases in 2013, it also  necessitated an expansion of our staffing levels to increase our capacity to both add new partners as well as monitor our  current ones. Even with these staffing additions, our total corporate costs are now only 8% of our total revenue. In adding  Amanda Frazer and Mike Ervin, two valued members of third party service providers that have worked with Alaris for years,  we have significantly enhanced our team and feel that we can double the current size of our company again with the team  we have in place today. Since the start of 2009, the total return that Alaris has provided its shareholders is approaching 400% (share appreciation  plus reinvestment of dividends paid). Even at a larger size, Alaris was able to post per share EBITDA growth of more than  30% for a second consecutive year. The delivery of a low volatility distributable cash flow stream, in combination with  sustainable growth, has made Alaris very unique in the public markets. While growing at the same pace becomes harder  and harder as we’ve become larger, the exposure that our company has received in a huge market continues to grow. In  2013, Alaris added our largest partner, Sequel Youth and Family Services. Sequel is a very successful and well-known  company in its industry in the United States and was sought after by many private equity firms. Having companies like 