Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Presentation (September 2010)
30 slides from Veradigm's investor presentation, Sep 27, 2010
Slide 1: Investor Presentation September 2010
Exhibit 99.1 Investor Presentation September 2010 1
Slide 2: Forward Looking Statements
Forward Looking Statements Thispresentationcontainsforward-lookingstatements withinthe meaningof the federal securitieslaws.Statementsregardingfuture eventsor developments, our futureperformance,aswell asmanagement's expectations,beliefs,intentions,plans,estimatesor projectionsrelatingto the futurea
Slide 3: Our Mission
Our Mission To be the most trusted provider of innovative solutions that empower all stakeholders across the healthcare continuum to deliver world-class outcomes. 9 Allscripts
Slide 4: Allscripts Corporate Snapshot
Allscripts Corporate Snapshot > Our Clients > Our Company • 180,000 Providers • 5,500 Employees • 150,000 Physician Practices • $1.2BB LTM Pro Forma Revenue • 1,500 Hospitals • Facilities in 24 States, Canada, India, the Middle East • 10,000 Post Acute Facilities and The Philippines • 27,000 Clinici
Slide 5: Investment Highlights
Investment Highlights Leading healthcare IT company with the broadest set of capabilities across every > venue of care including physicians, hospitals, post-acute and homecare The most utilized clinical solutions enabling health care providers to fully capitalize > on the $30BB federal stimulus prog
Slide 6: The Time is NOW
The Time is NOW A National > A Market that > A Significant Problem is Ready Opportunity • Quality Issues • $43BB Opportunity We are at the beginningof what we • Medical Errors / Safety • $30BB in Stimulus expectwill be the Concerns Funding singlefastest transformation of any • Rising Cost • ~15% Pen
Slide 7: Addressing the Entire Market Opportunity
Addressing the Entire Market Opportunity Acute/Ambulatory EHR Opportunity 2010-2014 = ~$43BB $45 Market Segment Seeking NewAddressable $40 an Integrated/Complete > Market: $16BB Solution Across Hospitals $35 and Physician Practices Integrated $30 $25 $10BB Pre-Merger Allscripts Opportunity (Ambulato
Slide 8: Ambulatory Market Potential
Ambulatory Market Potential EHR Penetration Practice Size Total # of Practices (FY09/10) 1-3 Physicians 163,000 ~13% 4-9 Physician 27,000 ~22% 10-25 Physicians 8,000 ~33% 26+ Physicians 2,000 ~50% Total 200,000 ~15% Source: SK&A = SK&A Information Services which sells databases for sales and marketi
Slide 9: Increased Certainty for Widespread EHR Adoption
Increased Certainty for Widespread EHR Adoption ARRA Final Rules Incentive 70% of Funding Used Announced Issued Program Begins TODAY Physician Penetration(1) 400 - 600 Hospitals ~20% Will Replace Clinical Systems(2) Q1 July January December 2009 2010 2011 2013 Source: National Center for Health Stat
Slide 10: Allscripts: Competitive Differentiation
Allscripts: Competitive Differentiation One One One Network. Platform. Patient. The largest connected Open, flexible, and A complete portfolio network in the nation… innovative to help you that delivers a single and in your community. connect inside and patient record across outside your your commun
Slide 11: One Network: The Largest Community in the Nation
OneNetwork:TheLargestCommunityin theNation Hospitals Physician Practices Post Acute Facilities & Agencies • The ‘Hub’:Over 1,500 Hospitals including 40% of “America’s Best Hospitals” as Clients • The ‘Spokes’:Over 180,000 MDs and 10,000 Post Acute Care Organizations are Connected to other Practices,
Slide 12: One Platform: A Complete, Integrated Solutions Portfolio
One Platform:A Complete, Integrated Solutions Portfolio Clinical Financial Administrative Analytics Services Electronic Health Record CQS Management Consulting Payerpath Analytics Academy Education ePrescribe Ready Practice Management Clinical Manager Patient Financials Access Management EPSi Outsou
Slide 13: One Patient: Critical Patient Data Flows Freely
One Patient: Critical Patient Data Flows Freely Ambulatory Solutions Labs Prescriptions Patient Records X-Rays Acute Solutions Post Acute (Sunrise) Solutions Orders Referrals Results A Connected Community of Health | Copyright © 2010 Allscripts Healthcare Solutions, Inc. 13
Slide 14: Proven Management Team
Proven Management Team Executive Position Experience Glen Tullman CEO 30+ Yrs Phil Pead Chairman 30+ Yrs Lee Shapiro President 30+ Yrs Eileen McPartland COO 25+ Yrs Bill Davis CFO 19+ Yrs Jeff Surges President, Sales 20+ Yrs Laurie McGraw Chief Client Officer 20+ Yrs President, Product Strategy & Jo
Slide 15: Financial Highlights
Financial Highlights • Allscripts LTM bookings of $415MM, up 24% year-over-year • Eclipsys YTD 2010 bookings of $259MM illustrates market momentum Significant Growth • Allscripts FY2010 non-GAAP net income of $98MM, up 28% • Eclipsys 1H’10 non-GAAP net income of $20MM, up 8% year-over-year • ARRA st
Slide 16: Pro Forma Performance
Pro Forma Performance Combined Combined Non-GAAP Non-GAAP Revenue Revenue Combined Combined Non-GAAP Non-GAAP Net Net Income Income ($millions) ($millions) CY 2009 (1) Non-GAAP Revenue: $1,188MM (1) CY 2009 Non-GAAP Revenue: $1,188MM $150 $120 $128 Allscripts Eclipsys $90 $106 56% 44% $60 $64 $72 $3
Slide 17: Significant Key Cost Synergies
Significant Key Cost Synergies Key Cost Projected Cost Synergies Over Three Years Synergy Drivers ~$40MM • Duplicate management structure ~$35MM • Duplicate public company ~$25MM costs • Duplicate backend office and system integration • Marketing CY2011 CY2012 CY2013 & Beyond A Connected Community o
Slide 18: Revenue Synergy Opportunity of $1.25BB
Revenue Synergy Opportunity of $1.25BB ECLIPSYS ALLSCRIPTS Sell Eclipsys Sell Allscripts Solutions to Allscripts Solutions to Eclipsys Acute Care Base Acute Care Base Sunrise Clinical Manager, Care Management, Emergency Patient Flow, EPSi Department, Homecare, Ambulatory Solutions Incremental Revenu
Slide 19: 2-3 Year Pro Forma Financial Outlook
2-3 Year Pro Forma Financial Outlook Comments Revenue 8-10% + • Similar to Allscripts standalone revenue Growth growth outlook Non-GAAP 20% + • Eclipsys margins historically lower than Operating Allscripts margins Margin • Cost synergies improve combined margins back towards near Allscripts historic
Slide 20: Strong Pro Forma Free Cash Flow Generation
Strong Pro Forma Free Cash Flow Generation Pro Forma Capitalization 5/31/10 (1) (2) (3) Capitalization Allscripts Eclipsys Adj. Pro forma Cash & Marketable Securities $143 $178 ($173) $148 New Revolver ($250mm) – – 100 100 New Term Loan – – 470 470 Total Debt – – $570 $570 (4) Equity 807 458 35 1,30
Slide 21: One Network. One Platform. One Patient.
One Network. One Platform. One Patient. 9 Allscripts
Slide 22: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the twelve months ended May 31, 2010. Allscripts Twelve Months Ended May 31, 2010 Net income, as reported 62.9 Deferred revenue adjustment 5.1 Acquisition-related amortization 22.7 Stock-based compensation expense 14.8
Slide 23: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP– non-GAAPnetincomereconciliation for thesixmonthsendedJune30, 2010. Eclipsys Six Months Ended June 30, 2010 Net income, as reported 7.0 Acquisition-related amortization 3.7 Stock-based compensation expense 6.3 Transaction-related expense 2.0 ARS sales 0.9 Tot
Slide 24: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP– non-GAAPrevenuereconciliation for thetwelvemonthsendedNovember30, 2009 (Allscripts)and twelve months ended December 31, 2009 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Twelve Months Ended November 30, 2009 December 31, 2009 Total revenue, as reported
Slide 25: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP revenue and net income reconciliation for the six months ended May 31, 2010 (Allscripts) and six months ended June 30, 2010 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Six Months Ended May 31, 2010 June 30, 2010 Total revenue, as reported 370.
Slide 26: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the six months ended May 31, 2009 (Allscripts) and six months ended June 30, 2009 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Six Months Ended May 31, 2009 June 30, 2009 Net income, as reported 26.7 (5.0) 21.7 Def
Slide 27: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the twelve months ended November 30, 2008 (Allscripts) and twelve months ended December 31, 2008 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Twelve Months Ended November 30, 2008 December 31, 2008 Net income, as r
Slide 28: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the twelve months ended November 30, 2009 (Allscripts) and twelve months ended December 31, 2009 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Twelve Months Ended November 30, 2009 December 31, 2009 Net income, as r
Slide 29: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP EBITDA reconciliation for the twelve months ended May 31, 2010 (Allscripts) and twelve months ended June 30, 2010 (Eclipsys). Allscripts Eclipsys Twelve Months Ended May 31, 2010 June 30, 2010 Net income, as reported 62.9 14.7 Taxes 40.7 11.4 Stock-
Slide 30: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures Allscripts hereby furnishes certain summary financial information regarding Allscripts and Eclipsys for the quarterly, annual and semi-annual periods set forth in this presentation. This summary financial information is not required by, or presented in acco
Allscripts Healthcare Solutions — Investor Presentation (September 2010) on 6ix