Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Day (September 2005)
21 slides from Veradigm's investor day presentation, Sep 8, 2005
Slide 1: Allscripts: Inform. Connect. Transform.
ALLSCRIPTS TM Inform. Connect. Transform.
Slide 2: Clinical Solutions Bookings
Clinical Solutions Bookings ($ in Millions) $80 $70 $60 $50 $40 $30 $20 $10 $0 40%+ Growth 74% Growth 58% Growth 2002 2003 2004 2005 (E)
Slide 3: Physicians Interactive Bookings
Physicians Interactive Bookings ($ in Millions) $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 5% Growth 32% Growth 2003 2004 2005 (E)
Slide 4: Backlog
Backlog ($ in Millions) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 2002 2003 2004 2005 (E) Clinical Solutions Physicians Interactive
Slide 5: Historical/Forecast Revenue
Historical/Forecast Revenue ($ in Millions) $140 $120 $100 $80 $60 $40 $20 $0 63% 56% 46% 37% 63% 54% 44% 37% 2002 2003 2004 2005 (E) Clinical Solutions and Information Services Medications
Slide 6: Historical/Forecast EPS
Historical/Forecast EPS $0.30 $0.20 $0.10 $0.00 ($ 0.10) ($ 0.20) ($ 0.30) ($ 0.40) ($ 0.50) $0.22 to $0.24 $0.07 ($ 0.40) ($0.13) 2002 2003 2004 2005 (E)
Slide 7: Stock Price Performance
Stock Price Performance $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 $18.73 $10.67 $5.32 $2.39 12/31/2002 12/31/2003 12/31/2004 9/7/05 Compound Annual Growth Rate of 111% from 2002 to 2004 Increase of 76% Since December 31, 2004
Slide 8: Top Questions...
Top 10 Questions... = / ALuscriprs Pages
Slide 9: How does Allscripts size the EHR market opportunity?
Questions 1. How does Allscripts size the EHR market opportunity? Number of Practicing Physicians in U.S. ~ 550,000 Market Penetration ~ 25% Available Market Opportunity 412,500 Average Selling Price per Physician $10,000 to $15,000 Market Opportunity (midpoint) ~$5.2 Billion Doesn’t include ongoing
Slide 10: How does Allscripts size the IDX market opportunity?
1a. How does Allscripts size the IDX market opportunity? Market Opportunity (midpoint) $5.2 Billion IDX Market Share ~ 20% IDX EHR Market Potential $1.0 Billion AHS Penetration ~ 16% @ 6/30/05 Remaining Market Opportunity ~ $870 Million Does not include add-on sales opportunity to Allscripts’ existi
Slide 11: Is there seasonality in your bookings? What about revenue?
2. Is there seasonality in your bookings? What about revenue? Short answer is yes… Clinical Software Business – ~35% of our bookings historically have occurred in Q4. Remaining 65% tends to be evenly distributed over first three quarters. Revenue largely insulated from seasonality due to revenue rec
Slide 12: Why does Allscripts recognize revenue differently than others in HCIT?
3. Speaking of revenue, why does Allscripts recognize revenue differently than others in the HCIT space? Concluded that the services we provide are “essential” to the software Unreasonable to think that a physician will use an EHR without some level of service upfront We recognize both service and s
Slide 13: Backlog as of June 30, 2005 $76.3 Million
3. (continued) – Backlog as of June 30, 2005 $76.3 Million $80 $70 $60 $50 $40 $30 $20 $10 $0 $13.2 $10.5 $40.5 Clinical Software Maintenance/Support Physicians Interactive Clinical Software Subscriptions Clinical Software License/ Implementation Fees
Slide 14: When will Allscripts start paying income taxes?
4. When will Allscripts start paying income taxes? Tax loss carryforward of $149 million as of December 31, 2004 Potential use, by year 2008 2007 2006 2005 Liability for book purposes may precede liability for tax purposes Note: Excludes impact of acquisitions and subject to 382 evaluation
Slide 15: Impact of expensing stock options on operating results
5. What impact will expensing of stock options have on our operating results? SFAS 123(R), Accounting for Stock-Based Compensation, will impact Allscripts beginning in 2006 2006 $2.0 $5.0 2007 $1.0 $4.0 Previously granted Estimate for new issuances (Pre-tax expense, $ in Millions)
Slide 16: When will convertible debt be converted into common stock?
6. When will Allscripts convertible debt be converted into common stock? When will it start impacting earnings per share? Our Senior Convertible Debt ($82.5 million with a 3.5 percent coupon) became convertible into 7.3 million common shares as of July 1, 2005 Given market value of debentures (conte
Slide 17: What are you going to do with all of that cash?
7. By the way, what are you going to do with all of that cash?
Slide 18: Do you intend to sell the Medication Distribution business?
8. Do you intend to sell the Medication Distribution business?
Slide 19: What is transaction revenue, who pays, and when will it matter?
9. You and Glen talk a lot about transaction revenues. What is it, who pays for it, and when will it make a difference? What is it? Will take on several different forms “Per Click” Fees (i.e., formulary, transmit prescriptions to retail pharmacy or mail order) Referral Fees (i.e., clinical trial ref
Slide 20: Ongoing operating model for each of Allscripts businesses
10. What is the ongoing operating model for each of Allscripts businesses? Medication Services Annual revenue growth expected flat to low single-digits Gross margin of 18 to 20 percent of revenue OI margin of 4 to 6 percent of revenue (1) Clinical Solutions Annual revenue growth of approximately 40+
Slide 21: Allscripts: Inform. Connect. Transform.
ALLSCRIPTS TM Inform. Connect. Transform. Private and Confidential
Allscripts Healthcare Solutions — Investor Day (September 2005) on 6ix