Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Presentation (March 2006)
44 slides from Veradigm's investor presentation, Mar 2, 2006
Slide 1: Allscripts: Inform. Connect. Transform.
A ” ALLSCRIPTS: Inform. Connect. Transform.
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements about Allscripts Healthcare Solutions that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts’ beliefs and assumptions. Forward-looking statements do not gua
Slide 3: Company Overview
Company Overview Physicians rely on our products to improve the quality of healthcare they provide Our integrated product lines provide clinical information and automate physicians’ most basic workflows such as documentation, prescription writing and charge capturing We deliver broad and diverse sol
Slide 4: Experienced Management Team
President, Clinical Solutions LAURIE MCGRAW President, Physicians Interactive MARK THIERER Previous Experience Role Name President, Medication Services JOHN CULL Chief Financial Officer BILL DAVIS Chief Operating Officer JOE CAREY President LEE SHAPIRO Chief Executive Officer GLEN TULLMAN Experience
Slide 5: Our Vision
Our Vision Physicians Control 80% of $1.8 Trillion To Become an Indispensable Part of the Way Physicians Practice Medicine Annual Healthcare Spend
Slide 6: Our Vision
Our Vision To Become an Indispensable Part of the Way Physicians Practice Medicine We deliver solutions that Healthcare.
Slide 7: Investment Highlights
Investment Highlights Allscripts is a leading provider of ambulatory EHR solutions, a $5+ billion market opportunity A4 acquisition expands our EHR leadership to small and mid-sized physician practices and provides leading practice management solution Emergency department and care management solutio
Slide 8: Fundamental Problem In Healthcare
Fundamental Problem In Healthcare 16% 22% $1.8 $3.5 The U.S. is No.1 in the world in healthcare expenditures, but no better than 16 th in medical outcomes ($ in Trillions) (% of GDP)
Slide 9: Fundamental Problem In Healthcare
Fundamental Problem In Healthcare
Slide 10: What Is The Solution?
What Is The Solution? CONNECTING
Slide 11: Large and Growing Market Opportunity
Large and Growing Market Opportunity Small to mid-sized practices represent largest number of physicians Practice management solutions provide complementary product offering with significant incremental market opportunity Ambulatory EHR Market is ~ $5+ Billion Opportunity ~550,000 U.S. Physicians ~8
Slide 12: Allscripts Competitive Strengths
Allscripts Competitive Strengths Significant installed base World-class technologies that enable industry-leading solutions Rapid return on investment Strong partnerships and strategic alliances Experienced employee base
Slide 13: Allscripts: The EHR of Choice
Allscripts: The EHR of Choice Academic Medical Groups Specialty Groups Multi-Specialty Groups Integrated Delivery Networks Over 2,000 Leading Clinics Nationwide
Slide 14: Delivering Value Through Diversified Solutions
e-Prescribing Personal Health Record Medication Dispensing e-Detailing Adherence/ Compliance Document Imaging Electronic Health Record Delivering Value Through Diversified Solutions e-Prescribing Personal Health Record Medication Dispensing e-Detailing Adherence/ Compliance Document Imaging Electron
Slide 15: Delivering Results
Delivering Results Generates Clinical Trial Revenue Holston Medical Group $3M/Yr. in Clinical Trial Revenue Delivers on Pay for Performance Facey Medical $1.2M P4P Payout from Blue Cross Produces e-Prescribing Savings Sierra Health $5M in Savings via eRx Reduces Resources in Medical Records George W
Slide 16: Strength of Our Partnerships
Strength of Our Partnerships
Slide 17: Renegotiated IDX Agreement
Renegotiated IDX Agreement A win for OUR Customers, IDX/GE, and Allscripts Preserves the best attributes of the original agreement Allscripts remains preferred choice for IDX customers Allscripts can now offer its own integrated EHR and practice management solutions Allscripts remains the safe choic
Slide 18: Our Industry Leadership
Our Industry Leadership Leadership Council Founding Member and Named to Executive Committee Steering Group for Connecting Communities for Health Initiative Work Group for EHR Certification Process Provided Expert Testimony on e-Prescribing Named to HIMSS Ambulatory Steering EHR Committee
Slide 19: Our Industry Leadership
George Washington University Medical Faculty Associates Received Prestigious HIMSS ‘Article of the Year’ Award 2 Clients to Participate in HHS e-Prescribing Pilot - Testing Standards and Interoperability Grant Awarded to Allscripts Client to Test Laboratory Interoperability and Connectivity Standard
Slide 20: Clinton, Frist Tout Medical Records Bill
By DEVLIN BARSEI | WASHINGION ~ Hilary Rodham Clinton and Bill Frist two senators in the mix of sezculation about the (hte House race n ZUU8, touted anew medical records bil Inutsday Wiel Wey seid 's necessary lo prevent ile-threaleniny mistakes, Clinton, a Venera. wh ted Pres dent Cliter's unsueces
Slide 21: ION ~ Hillary Rodham Cinton and il Frist, two senators in the mix ot
ION ~ Hillary Rodham Cinton and il Frist, two senators in the mix ot "about the White House race in ZUUB, touted a new medical “ecords bill el Urey Soils acess Lo prevent le-meslenn y mistake, Jetgera lig Led fer's unsueccesstul push Sal health care overhaul in
Slide 22: ION ~ Hillary Rodham Cinton and il Frist, two senators in the mix ot
ION ~ Hillary Rodham Cinton and il Frist, two senators in the mix ot "about the White House race in ZUUB, touted a new medical “ecords bill el Urey Soils acess Lo prevent le-meslenn y mistake, Jetgera lig Led fer's unsueccesstul push Sal health care overhaul in
Slide 23: Allscripts press coverage
Allscripts, ars De Aton Spi a td ES Practices 2 OW gt Herings Ne TIME
Slide 24: Allscripts press coverage
Allscripts, ars De Aton Spi a td ES Practices 2 OW gt Herings Ne TIME
Slide 25: Clinton, Frist Tout Medical Records Bill
‘Clinton, Frist Lout Medien! Records Bi By DEVLIN BARREL sin the mix oF IASHINGION ~ Hillary Zedhar Clinton and Bill Frist, we sens speculation about the White House race n 2008, touted anew medical records bill Inutsday Wiel Wey seid s taceseany lo prevent e-threaleniy mistakes, Clin Pres dent Clin
Slide 26: Clinton, Frist Tout Medical Records Bill
‘Clinton, Frist Lout Medien! Records Bi By DEVLIN BARREL sin the mix oF IASHINGION ~ Hillary Zedhar Clinton and Bill Frist, we sens speculation about the White House race n 2008, touted anew medical records bill Inutsday Wiel Wey seid s taceseany lo prevent e-threaleniy mistakes, Clin Pres dent Clin
Slide 27: Leadership In A Revolutionary Market
Leadership In A Revolutionary Market “No one will be practicing medicine in America ten years from now without an Electronic Health Record… That’s why I believe so strongly in what Allscripts is doing.” – Newt Gingrich; Founder of the Center for Health Transformation
Slide 28: A4 Acquisition: Strategic Benefits
A4 Acquisition: Strategic Benefits Expand product and service offerings – Fully integrated EHR and practice management solutions for small and mid-sized physician groups – Complementary acute care solutions Increase market penetration – Double the size of our salesforce – Add over 1,500 physician cl
Slide 29: Ambulatory Market Share
Ambulatory Market Share Large Physician Practices (>25) Segment EHR Practice Management Mid-Sized Physician Practices (10-24) Independent & Small Physician Practices (<10) Specialty Groups Profitable Leadership In Each Segment
Slide 30: Strategies For Growth
Broaden Physician Base Enhance Physician Utilization Continue Product Innovation Leverage Brand Recognition Pursue Strategic Opportunities Strategies For Growth Broaden Physician Base Enhance Physician Utilization Continue Product Innovation Leverage Brand Recognition Pursue Strategic Opportunities
Slide 31: Key Takeaways
Key Takeaways 1. The time is now 2. Our physician focus is key to transforming healthcare 3. We are a leader in the core growth markets in which we compete 4. Competitive advantage: driving utilization and results We’re just getting started!
Slide 32: Financial Overview
Financial Overview
Slide 33: Proven Track Record
Proven Track Record Record bookings 2005 Was A Breakthrough Year for Allscripts! Record backlog Record revenues Record gross margins Record cash flows from operations Record net income
Slide 34: Proven Track Record
Proven Track Record Record bookings 2005 Was A Breakthrough Year for Allscripts! Record backlog Record revenues Record gross margins Record cash flows from operations Record net income
Slide 35: Consistent Revenue Growth
Consistent Revenue Growth ($ in Millions) $0 $20 $40 $60 $80 $100 $120 $140 $160 2006(E) $78.8 $85.8 $100.8 $120.6 $145.0 Pre-packaged Medications Information Services Clinical Software and Related Services * Growth segments include Clinical Software and Related Services and Information Services
Slide 36: Operating Leverage Drives Strong Earnings Growth
Operating Leverage Drives Strong Earnings Growth * Excludes stock-based compensation ($0.50) ($0.25) $0.00 $0.25 $0.50 2005* 2006*(E) ($0.40) ($0.13) $0.07 $0.24 $0.45 - $0.47
Slide 37: Solid Bookings Growth
$0 $20 $40 $60 $80 $100 $120 $140 2006(E) Solid Bookings Growth Information Services Clinical Software and Related Services $33.3 $43.1 $65.9 $89.5 $123.0 ($ in Millions)
Slide 38: Clear Visibility through Growing Backlog
Clear Visibility through Growing Backlog $0 $20 $40 $60 $80 $100 $35.0 $46.3 $67.1 $91.2 ($ in Millions) Information Services Clinical Software and Related Services
Slide 39: Diversified Backlog Provides Stability
$55.1 $8.5 $12.8 $14.8 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $91.2 Million Diversified Backlog Provides Stability $55.1 $8.5 $12.8 $14.8 ($ in Millions) As of 12/31/05 Clinical Software Maintenance Support Information Services Clinical Software Subscriptions Clinical Software License/ Implemen
Slide 40: A4 Acquisition: Financial Highlights
A4 Acquisition: Financial Highlights Cost: ~ $275 million – $215 million cash and 3.5 million common shares A4 Health Systems delivers strong financial performance Enhances revenue mix with a greater emphasis on the clinical software segment Accelerate financial performance – Accretive to Allscripts
Slide 41: Accelerated Growth Through A4
Accelerated Growth Through A4 Revenues: Software & Related Services Prepackaged Medications Information Services Total Revenues Gross Profit Income from Operations EBITDA Net Income Earnings per Share: Basic Diluted ($ in Millions) Historical Allscripts 9/30/04 $29.8 35.4 9.3 74.5 30.3 1.7 5.2 $1.7
Slide 42: Financial Strength
Financial Strength Cash & Marketable Securities Accounts Receivable, Net Other Assets Total Assets Accounts Payable & Accrued Liabilities Deferred Revenue Convertible Debt Other Liabilities Total Liabilities Stockholders’ Equity Total Liabilities & Stockholders’ Equity ($ in Millions) $146.1 29.2 45
Slide 43: Summary
World-Class Technologies Return On Investment Our People Proven Track Record Strong Partnerships Leading Provider of Clinical Solutions Physician-centric Summary World-Class Technologies Return On Investment Our People Proven Track Record Strong Partnerships Leading Provider of Clinical Solutions Ph
Slide 44: Allscripts: Inform. Connect. Transform.
A ” ALLSCRIPTS: Inform. Connect. Transform.
Allscripts Healthcare Solutions — Investor Presentation (March 2006) on 6ix