Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — William Blair & Company Growth Stock Conference 2011
32 slides from Veradigm's conference presentation, Jun 15, 2011
Slide 1: William Blair & Company Growth Stock Conference Investor Presentation
Exhibit 99.1 William Blair & Company Growth Stock Conference Investor Presentation June 15, 2011 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events or developments, our future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections r
Slide 3: A Connected Community of Health
A Connected Community ™ of Health Our Vision 9 Allscripts
Slide 4: 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. i Allscripts
Slide 5: Allscripts Corporate Snapshot
Allscripts Corporate Snapshot Our Clients Our Company • 180,000 Providers • One Complete Set of Solutions • 50,000 Physician Practices • 5,800 Employees • 1,500 Hospitals • $1.3BB 2010 Non-GAAP Revenue • 10,000 Post Acute Facilities • $148MM 2010 Non-GAAP Net • 27,000 Clinicians In Patients’ Income
Slide 6: Investment Highlights
Investment Highlights > LeadinghealthcareITcompanywiththebroadestsetof capabilities across every venue of care including physicians, hospitals, post-acute and homecare > Themostutilizedclinicalsolutionsenablinghealthcareprovidersto fully capitalize on the $30BB federal stimulus program > Leadership
Slide 7: The Time is NOW
The Time is NOW A National > A Market that > A Significant Problem is Ready Opportunity • Quality Issues • $43BB(1)Opportunity We are at the beginningof what we • Medical Errors / Safety • $30BB in Stimulus expect will be the Concerns Funding single fastest transformation of any • Rising Cost • ~15%
Slide 8: Addressing the Entire Market Opportunity
Addressing the Entire Market Opportunity Acute/Ambulatory EHR Opportunity 2010-2014 = ~$43BB $45 Integrated/Complete $40 Solution Across $16BB Integrated Market $35 Hospitals and Physician Practices $30 $25 $10BB Ambulatory Stand-Alone $20 Opportunity $15 Stand-Alone Market Acute Stand-Alone $10 $17
Slide 9: Ambulatory Market Potential
Ambulatory Market Potential EHR Penetration Practice Size Total # of Practices (FY09/10) 1-3 Physicians 163,000 ~13% 4-9 Physicians 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 market
Slide 10: Increased Certainty for Widespread EHR Adoption
Increased Certainty for Widespread EHR Adoption ARRA Final Rules Incentive Program 70% of Funding Announced Issued Has Begun! Used TODAY Physician Penetration(1) ~ 400 Hospitals ~20% Will Replace Clinical Systems(2) Q1 July June December 2009 2010 2011 2013 Source: National Center for Health Statist
Slide 11: 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 12: 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 13: One Platform: A Complete, Integrated Solutions Portfolio
One Platform: A Complete, Integrated Solutions Portfolio Clinical Financial Administrative Analytics Services Clinical Manager Patient Financials Enterprise Registration EPSi Outsourcing Emergency Care Financial Manager Enterprise Scheduling Decision Support Remote Hosting Pharmacy Access Management
Slide 14: 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 © 2011 Allscripts Healthcare Solutions, Inc. 14
Slide 15: The New Architecture of Healthcare
The New Architecture of Healthcare Old World (Monolithic Mainframe) Hospitals Owned Physician Practices Rehab Clinics New World (Modern Platform) A Connected Community of Health | Copyright © 2011 Allscripts Healthcare Solutions, Inc.
Slide 16: Financial Overview
Financial Overview A Connected Community of Health | Copyright © 2011 Allscripts Healthcare Solutions, Inc. 16
Slide 17: 1Q 2011 Highlights
1Q 2011 Highlights • Total bookings of $500MM in the two full quarters, post-merger, a 22%year-over-year increase Bookings Growth Reflects Breadth of • Three new Sunrise Enterprise client sales YTD (two in Q1 2011) Market Solutions • Strong ambulatory purchasing across all practice sizes • Software-
Slide 18: Historical Consolidated Performance
Historical Consolidated Performance Non-GAAP Non-GAAP Revenue Revenue CY CY 2009: $1,188MM 2009: $1,188MM Combined Combined Non-GAAP Non-GAAP Operating Operating Income Income ($millions) ($millions) Ambulatory Acute $250 56% 44% $200 $251 $150 $212 $100 $50 $72 Non-GAAP Non-GAAP Revenue Revenue $60
Slide 19: Significant Key Cost Synergies
Significant Key Cost Synergies Key Cost Projected Cost Synergies Over Three Years Synergy Drivers ~$40MM • Duplicative management structure ~$35MM • Duplicative public company ~$25MM costs • Duplicative back-end office and system integration • Marketing CY2011 CY2012 CY2013 & Beyond A Connected Comm
Slide 20: Revenue Cross-Sell Opportunity of $1.25BB
Revenue Cross-Sell Opportunity of $1.25BB Sell Acute Sell Solutions to Ambulatory Ambulatory Solutions to Care Base Acute Care Base Sunrise Clinical Manager, Care Management, Emergency Patient Flow, EPSi Department, Homecare, Ambulatory EHR Incremental Revenue Opportunity Total ~$430MM + ~$820MM = ~
Slide 21: Non-GAAP Financial Outlook
Non-GAAP Financial Outlook (1) ($ in millions; except per share amounts) 2010 to 2011 CY 2010 Actual CY 2011 Change Non-GAAP $1,300 $1,425 -$1,450 10 - 12% Revenue Non-GAAP Operating 19% 21% -- Margin Non-GAAP $148 $167 - $176 13 - 19% Net Income Non-GAAP Diluted EPS $0.76 $0.86 - $0.90 13 - 18% (1)
Slide 22: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Actual Capitalization 3/31/2011 Cash and Marketable Securities $147 • Reduced debt by $122MM since merger closed Revolver ($250mm) 0 Term Loan 448 • Required principal payments Total Debt $448 in 2011 total $27.8MM Equity 1,428 Total Capitalization $1,876 • Current b
Slide 23: One Network. One Platform. One Patient.
One Network. One Platform. One Patient. 2 Allscripts:
Slide 24: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation · GAAP– non-GAAPrevenueandnetincomereconciliationfor thetwelvemonthsendedDecember31, 2010. Allscripts Healthcare Solutions, Inc. 2010 Non-GAAP Financial Information (In millions) (unaudited) 2010 Results Non-GAAP Total revenue, as reported $1,191.5 Deferred revenue
Slide 25: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation · GAAP –non-GAAP revenue growth for the three months ended March 31, 2011. Allscripts Healthcare Solutions, Inc. Condensed Non-GAAP Financial Information (In millions, except per-share amounts) (Unaudited) Three Months Three Months Ended Ended 3/31/10 3/31/10 Q1 201
Slide 26: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation · GAAP –non-GAAP operating income and margin reconciliation for the three months ended March 31, 2011 and 2010. Allscripts Healthcare Solutions, Inc. Condensed Non-GAAP Financial Information (In millions, except per-share amounts) (Unaudited) Three Months Ended Thre
Slide 27: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation · GAAP– non-GAAPrevenuereconciliation for thetwelvemonthsendedNovember30, 2009 (Allscripts)and twelve months ended December 31, 2009 (Eclipsys). Allscripts Healthcare Solutions, Inc. Condensed Non-GAAP Financial Information (In millions, except per-share amounts) (U
Slide 28: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP operating income reconciliation by quarter and twelve months ended December 31, 2009 (Eclipsys) and November 30, 2009 (Allscripts). Allscripts Healthcare Solutions, Inc. 2009 Non-GAAP Financial Information (In millions, except per-share amounts) (Un
Slide 29: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP operating income reconciliation by quarter and twelve months ended December 31, 2010. Allscripts Healthcare Solutions, Inc. Non-GAAP Financial Information -2010 Proforma Financial Information (In millions) (unaudited) 2010 Actual Results By Quarter
Slide 30: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP EBITDA reconciliation for the 12 months ended March 31, 2011 EBITDA Calculation ($ in thousands) Pro Forma Combined 12 months ended 3/31/2011 Net income $14.6 Income tax expense 15.1 Stock-based compensation expense 36.5 Depreciation & amortization
Slide 31: Footnotes Regarding Financial Guidance
Footnotes Regarding Financial Guidance Financial guidance was last provided by the company in a press release on May 5, 2011. This presentation does not subsequently update or reaffirm Allscripts financial guidance. Allscripts non-GAAP guidance for calendar 2011 assumes the following adjustments to
Slide 32: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures Allscripts reports its financial results in accordance with generally accepted accounting principles, or GAAP. To supplement this information, in this presentation Allscripts provides total non-GAAP revenue, gross profit, operating income and net income, in
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