Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — 34th Annual J.P. Morgan Healthcare Conference (January 2016)
41 slides from Veradigm's conference presentation, Jan 12, 2016
Slide 1: 34th Annual J.P. Morgan Healthcare Conference Allscripts Investor Presentation
34th Annual J.P. Morgan Healthcare Conference Allscripts Investor Presentation January 12 2016 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding Allscripts Healthcare Solutions, Inc.’s (the “Company’s”) financial estimate
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes references to non-GAAP revenue, gross profit, gross margin, adjusted non-GAAP SG&A, net income, including non-GAAP earning per share basis and Adjusted EBITDA and free cash flow, which are also considered non-GAAP financial measures under Sectio
Slide 4: Contents
Contents Who We Are Industry Position and Strategy Financial Model Appendix/GAAP-Non-GAAP Reconciliations
Slide 5: Who We Are
WHO WE ARE A global leader in healthcare technology
Slide 6: About Allscripts
About Allscripts Our Company NASDAQ: MDRX IPO: 1999 Global HQ: Chicago, IL FY 2014 Revenue: $1.4B Our Team ~7,000 team associates Veteran executive leadership 12 countries incl. Australia, Canada, Israel & UK
Slide 7: An Open Connected Community of Health
An OPEN Connected Community of Health Allscripts Facts PHYSICIANS
Slide 8: Why Allscripts?
Why Allscripts? Precision Medicine Connect Consumers Population Health Management EHR/RCM What We Do Recurring revenue Services Global Secular trend Innovation/investment Engagement Analytics Future of healthcare Proteomics/Genomics
Slide 9: Investment Considerations
Investment Considerations Comprehensive solutions across healthcare globally Growing bookings, recurring revenue Significant, sustainable operating leverage Accelerating cash flow growth Compelling valuation
Slide 10: Industry
& Allscripts: INDUSTRY
Slide 11: Industry Challenges
Industry Challenges Aging population with increasing chronic disease Service demand increasing Access to care challenges Unsustainable cost trajectory Improve quality while lowering costs COST QUALITY $5.0 Source: Health Affairs 2013
Slide 12: Permanent Reimbursement Shift Underway
Permanent Reimbursement Shift Underway Source: HFMA “Value in Healthcare: Current State & Future Directions” June 2011, Allscripts VOLUME Fragmented providers and payments No uniform quality Fees for performing services Demand increasing Referral loss VALUE Collaboration, connectivity Clinical and f
Slide 13: Strategic Imperative for Healthcare
Strategic Imperative for Healthcare Note: Data excludes the uninsured and VA populations, year = 2012. | Source: Oliver Wyman analysis, Kaiser, CMS, Census Bureau, CDC. Shift from reactive care to proactively and predictably managing populations
Slide 14: Allscripts Position and Strategy
ALLSCRIPTS POSITION AND STRATEGY
Slide 15: Allscripts Evolution
Allscripts Evolution ePrescribing Home Care & Discharge Emergency Department Electronic Health Records Practice Management Acute Analytics 1998 2015 2001 – 2007 2008 – 2012 2013 Revenue Cycle Community Solutions YEAR Population Health Management RCM Services Value-Based Care Solutions Precision Medi
Slide 16: Allscripts Value Proposition
Allscripts Value Proposition Coordinate care across community Combine all patient data in one place Provide insights to prioritize interventions & drive predictability Engage patients in managing their care and health Enable change at the point of care with a Community Aware EHR
Slide 17: Execute across the healthcare continuum
Execute across the healthcare continuum Ambulatory Hospitals Health Systems … Home Care Long-Term Care … Pharmacies Labs Specialists In- and out-of-network physicians … Physician Practices Clinics … Acute Post Acute Community Patient Engagement Technologies Portals Wearable Tech Personalized Medicin
Slide 18: Business Momentum Globally
Business Momentum Globally 29 EMRAM Stage 7 New clients added 2015 YTD (3Q15) 560 800+ SOURCE SYSTEMS across the globe connected to dbMotion *2015 #1 Academic Medical Center & Large Inpatient EHR, #1 Communications & Connectivity, #1 Results Review & Decision Support | **2014 Best in KLAS Global EMR
Slide 19: Interoperability Leadership: Allscripts Developer Program
Interoperability Leadership: Allscripts Developer Program (ADP) ~130 certified 3rd party apps/devices USERS >1 billion data shares 2013 through 2015 >150% growth in 2015 PARTNERS 2100 developer accounts APPS Notes: Allscripts ADP Store: www.store.allscripts.com Data share equals specific information
Slide 20: The Future: Precision Medicine
The Future: Precision Medicine
Slide 21: Financial Model
& Allscripts: FINANCIAL MODEL
Slide 22: Creating Shareholder Value: Growth Pillars
Creating Shareholder Value Growth Pillars EHR/core system replacements Population health management (PHM) Recurring services Global EHR/systems RESULTS 29 new Sunrise facilities added 5% revenue growth in PHM YTD 14% recurring services growth YTD Two major academic center trusts added in Q3 and Q4 2
Slide 23: Creating Shareholder Value: Execution Playbook
Creating Shareholder Value RESULTS Support & maintenance stable Bookings +13% YTD Expect to finish 2015 w/ adjusted non-GAAP SG&A reduction of >$50mm v. 2012 (>15%) ~16% revenue YTD invested in gross R&D (+$170m) PLUS~$500mm of strategic investments since ’13 = >$1.1b in cumulative R&D and investmen
Slide 24: Sales Activity (Bookings)
Sales Activity (Bookings) = The best measure of momentum 13% Bookings Growth YTD Record third quarter $272m Three consecutive records Balance btwn software & services Note: YTD refers to nine months ended September 30, 2015.
Slide 25: Contract Backlog
Contract Backlog $3.6b September 30, 2015 Backlog at record high Steady growth in software
Slide 26: 2015 Results YTD
2015 Results YTD (two stories) $1,041m Total Revenue (flat y/y) ~$786m Recurring Revenue (+6% y/y) ~$255m Non-recurring Revenue (-16% y/y) 76% of revenue recurring Anticipate ending 2015, w/ anniversary of non-recurring revenue declines, to allow recurring revenue momentum to show through
Slide 27: Expanding Non-GAAP Gross Margins
Expanding Non-GAAP Gross Margins 46.4% in Q3 Non-GAAP Gross Margin 2/3rd driven by software; 1/3rd services Major step forward fixing services margins Software margins above historical average due to support efficiencies and better mix
Slide 28: YTD Results Through September 30, 2015
YTD Results Through September 30, 2015 $128m Cash Flow From Operations (>2x y/y) $177m Adjusted EBITDA (+21% y/y) $62m Non-GAAP Net Income (+58% y/y)
Slide 29: Outlook
Outlook Q4 2015 Expect all-time record quarterly bookings (prior $327m Q4 2011) A fourth consecutive record for quarterly bookings Will report Q4 and full year audited results on February 18, 2016 Note: Based on disclosure of January 12, 2016. This presentation is not an affirmation of prior financi
Slide 30: Valuation Considerations
Valuation Considerations *Note: Please see appendix in this presentation for a complete reconciliation of valuation calculations, including industry peers. Peer data listed in descending order by market capitalization. **NM = negative free cash flow for the applicable period. Non-GAAP Earnings Per S
Slide 31: Investment Considerations
Investment Considerations Comprehensive solutions across healthcare globally Growing bookings, recurring revenue Significant, sustainable operating leverage Accelerating cash flow growth Compelling valuation
Slide 32: Appendix – Non-GAAP Reconciliations
APPENDIX – Non-GAAP Reconciliations
Slide 33: Reconciliations: Non-GAAP Adjusted SG&A
Reconciliations: Non-GAAP Adjusted SG&A
Slide 34: Reconciliations: Recurring/Non-Recurring Revenue
Reconciliations: Recurring/Non-Recurring Revenue
Slide 35: Reconciliations: Non-GAAP Gross Margin
Reconciliations: Non-GAAP Gross Margin
Slide 36: Reconciliations: Adjusted EBITDA
Reconciliations: Adjusted EBITDA
Slide 37: Reconciliations: Non-GAAP Net Income
Reconciliations: Non-GAAP Net Income
Slide 38: Reconciliations: Allscripts Free Cash Flow
Reconciliations: Allscripts Free Cash Flow
Slide 39: Reconciliations: Trailing Twelve Month Free Cash Flow
Reconciliations: Trailing Twelve Month Free Cash Flow Source: Allscripts Investor Relations/Company reports
Slide 40: Reconciliations: Valuation Data
Reconciliations: Valuation Data Note: Forecasts of non-GAAP earnings per share are based on NASDAQ First Call Consensus estimates. Other data sources from company reports or Reuters Marketscope Database.
Slide 41: 34th Annual J.P. Morgan Healthcare Conference Allscripts
34th Annual J.P. Morgan Healthcare Conference Allscripts Investor Presentation January 12 2016