Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (October 2009)
25 slides from Veradigm's investor presentation, Oct 5, 2009
Slide 1: Connect to Health – Allscripts Investor Presentation October 2009
Exhibit 99.1 Connect to Health™ Allscripts Investor Presentation – October 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company’s future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or proj
Slide 3: About Allscripts
About Allscripts Vision To bring Health to Healthcare Clear Mission To be the clear leader in providing innovative software, connectivity and information solutions that empower physicians and other healthcare providers to improve the health of both their patients and their bottom line Financially St
Slide 4: The Time is Now… U.S. Healthcare Report Card
The Time is Now… U.S HEALTHCARE – REPORT CARD Uncontrollable Spend $2.2 Trillion (~1/5 of GDP) Significant Waste $700 Billion (~1/3 of Total Spend) Unacceptable Quality 98,000 Deaths and 1.5 Million Injuries from Medical Errors, 7,000 Deaths from Medication Errors
Slide 5: Practice Automation is Critical to the Fix…
Practice Automation is Critical to the Fix… Increases the Quality of Care Takes Costs Out Increases Reimbursement Improves Patient Safety Increases Patient Satisfaction
Slide 6: The Opportunity
The Opportunity $19 billion Stimulus package $44,000 per Physician Funding is front-loaded Must demonstrate meaningful use “Meaningful Use” criteria updated by ONCHIT on 10/01/10 Funding is time-stamped The CBO projects 90% EHR adoption by 2019
Slide 7: The Time is Now
The Time is Now Funding is Front Loaded $30,000 (close to 70% of the funding) comes in the first two years Must Demonstrate Meaningful Utilization Purchase and Implementation are not enough – you must use it Funding is Time Stamped Incentives start in 2011, decrease over time and penalties begin in
Slide 8: Wealth of Federal Incentives Available
Wealth of Federal Incentives Available The incentive per physician . . . EHR ePrescribe PQRI Stimulus + + Incentive Incentive Funding $44,000 $3,000- 5,000/yr. $3,000 - $5,000/yr. (or $64,000) estimate estimate over 5 yrs. PQRI = Physician Quality Reporting Initiative
Slide 9: Addressable Market
Addressable Market TRUE NORTH Impact on EHR Adoption EHR Penetration Practice Size Total # of Practices (FY08/09 ) 1-3 Physicians 163,000 ~10 % 4-9 Physician 27,000 ~20 % 10-25 Physicians 8,000 ~25 % 26+ Physicians 2,000 ~40 % Total 200,000 ~12 % Source: SK&A = SK&A Information Services which sells
Slide 10: True North: Current Market Landscape / Projections
True North: Current Market Landscape / Projections 70% of funding gone by 2013, % 100 so the rush is on 90 80 Steeper 70 curve in 90% overall 60 Physician adoption large segment 50 by 2019, per CBO 40 26+ Providers 30 10-25 Providers 4-9 Providers 1-3 Providers 10 0 FY08/09 FY09/10 FY/10/11 FY11/12
Slide 11: The Opportunity is Significant
The Opportunity is Significant The Electronic Revenue Cycle Health Record + Management = Significant Upside < 20% Physician Penetration < 10% in Smaller Groups ~10% to 20% of PM Systems Replaced/Yr. Allscripts 3rd Largest Claims Processing Clearinghouse Lower IT Penetration than Any Sector of Econom
Slide 12: Great Place to Start … Our Client Base
A Great Place to Start … Our Client Base 160,000 MDs 800+ Hospitals 8,000 Post-Acute Facilities & Organizations 90,000 MDs without an EHR ~ $1B Cross-Sell Opportunity
Slide 13: Why Allscripts Wins
Why Allscripts Wins Significant Footprint: 160,000 MDs, 800 Hospitals, 8,000 Post Acute Facilities and Homecare Agencies All Sizes and Settings: Ambulatory and Acute, Primary Care and Specialty, Small to Large Diversified Portfolio: Clinical and Business Solutions All World-Class: Top Rated Consiste
Slide 14: A Comprehensive Portfolio
A Comprehensive Portfolio Includes: For physicians not yet • ePrescribe • Connect ready for an EHR • Payerpath • Document Management Includes Connected Physician, plus: For physicians ready Enterprise and/or Professional EHR/ PM with connections to become “Operable” to commercial labs and imaging ce
Slide 15: Stimulus Ready
Stimulus Ready Allscripts Distribution Network: from 220 salespeople to 1,600
Slide 16: The Allscripts Equation
The Allscripts Equation Market Growth/Expansion Opportunity + Market Leadership + Innovation + Financial Stability = Strongest Player in an Expanding Market
Slide 17: Financial Overview
Financial Overview Allscripts
Slide 18: Operating Results
Operating Results Fiscal Fiscal Bookings $ 317.6 $ 334.7 SaaS % % % Revenue, as reported $ 383.8 $ 548.4 AHS revenue pre-merger 285.4 124.3 Elimination of prepackaged medications (41.9 ) (29.6 ) Deferred revenue adjustment - 7.8 Non-GAAP Revenue $ 627.3 $ 650.9 Net Income, as reported $ 25.4 $ 26.0
Slide 19: YTD 2010 Operating Results
YTD 2010 Operating Results Fiscal Q1 Fiscal Q1 Bookings $ 66.4 $ 97.5 % % Revenue, as reported $ 92.8 $ 164.9 AHS revenue pre-merger 81.8 - Deferred revenue adjustment - 2.6 Elimination of prepackaged medications (9.9 ) - Non-GAAP Revenue $ 164.7 $ 167.5 Net Income, as reported $ 5.4 $ 12.9 AHS net
Slide 20: Outlook
Outlook Fiscal Fiscal Bookings $ 334.7 N/A SaaS % % Revenue $ 650.9 $ $ 680.0 to 700.0 Non GAAP Net Income $76.7 $88.0 to $92.0 Non GAAP Net Income per Share $0.52 $0.59 to $0.61 Proforma Share Count(1) 148.2 150.0 (1) Q4 FY 2009 share count has been used for the Fiscal denominator to aid comparabil
Slide 21: US GAAP Net Income to Non-GAAP Net Income Reconciliation
US GAAP Net Income to Non-GAAP Net Income Reconciliation Fiscal Fiscal Earnings Before Taxes, as Reported $ 44.4 $ $ 101.2 to 107.9 Taxes (41% in ‘09 and 40% in ‘10) (18.4 ) (40.5 to 43.1 ) Net Income $ 26.0 $ $ 60.7 to 64.7 Adjustments (Tax adjusted 41% in ‘09 and 39% in ‘10) Allscripts Pre Merger
Slide 22: Illustrative Revenue Sensitivity Analysis
Illustrative Revenue Sensitivity Analysis 110,000 MDs 20% Assumed EHR Penetration 88,000 Addressable EHR Market Four Year Cumulative Penetration Rates % % % % % License/Service Fees $ 165m $ 248m $ 330m $ 410m $ 495m Annual Maintenance $ 20m $ 30m $ 40m $ 50m $ 60m
Slide 23: Significant and Realizable Synergy Opportunity
Significant and Realizable Synergy Opportunity Projected Cost Synergies $25 – $30m Cost synergies of $20m+, pre-tax, expected in first year following transaction close Up to $25m to $30m, pre-tax, in annual cost savings within the next few years Main drivers of cost synergies include: R&D, Marketing
Slide 24: Summary
Summary Products a complete portfolio of solutions.. Target for practices in all sizes/ areas … Client Base a footprint of 1 of 3 MDs in the U.S.
Slide 25: Slide 25
Allscripts-Misys Healthcare Solutions — Investor Presentation (October 2009) on 6ix