Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Q2 2020 Earnings Presentation
20 slides from Veradigm's earnings presentation, Jul 31, 2020
Slide 1: Supplemental Investor Presentation
Allscripts Healthcare Solutions July 30, 2020 Supplemental Investor Presentation
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, including targeted Adjusted EBITDA margins and other information regarding future performance included in this presentation,
Slide 3: Overview, Margin Improvement Initiatives, Segment Highlights
Overview 2 Margin Improvement Initiatives 1 Segment Highlights
Slide 4: More Fulsome Segment Reporting Improves Visibility of Stable Core Business
More Fulsome Segment Reporting Improves Visibility of Stable Core Business and Differentiated Higher Growth Opportunity Solutions Clinical; practice management; patient billing and patient engagement solutionsClients are global and include large integrated delivery networks, government agencies, com
Slide 5: Core Clinical and Financial Solutions Segment Has Near-Term Momentum
Despite Previously-Announced Attrition Impact, Core Clinical and Financial Solutions Segment has Near-Term Momentum Key Clients are Extending New Sales Innovation / Partnerships Industry Recognition Northwell; PIH; Memorial Sloan Kettering; Maimonides>35 Paragon clients since acquisition U.S. State
Slide 6: Data, Analytics and Care Coordination Segment Provides Multiple Streams of Growth
Data, Analytics and Care Coordination Segment Provides Multiple Streams of High Margin Growth Opportunities Payer and life sciencesLarge source of deidentified patient data and unique portfolio provides data-driven actionable insights, derived from best-in-class analytics, and integrated with point
Slide 7: Methodology for Segment Profitability Measurement
Methodology for Segment Profitability Measurement 1 We begin with our consolidated Adjusted EBITDA as reported in Table 5 of our press releaseAll revenue and cost of sales are directly tracked by solution and attributed directly to each segmentResearch and development spend is tracked by solution ar
Slide 8: Data, Analytics and Care Coordination Contributed 35% of LTM Adjusted EBITDA
Higher Margin Data, Analytics and Care Coordination Segment Contributed 35% of LTM Consolidated Adjusted EBITDA Core Clinical and Financial Solutions Data, Analytics and Care Coordination Unallocated See reconciliation of non-GAAP metrics in the appendix of this presentation and posted on the Allscr
Slide 9: Margin Improvement Initiatives
Overview 2 Margin Improvement Initiatives 1 Segment Highlights
Slide 10: Consolidated Adjusted EBITDA Margins Improved Significantly in Second Quarter
Consolidated Adjusted EBITDA Margins Improved Significantly in Second Quarter Adjusted EBITDA Margin, As Reported 530 bps 2 Adjusted EBITDA Margin, As Reported Excluding EPSi 480 bps See reconciliation of non-GAAP metrics in the appendix of this presentation and posted on the Allscripts investor rel
Slide 11: In March, we Hired Alix Partners to Help Develop an Improvement Plan
In March, we Hired Alix Partners to Help us Develop an Improvement Plan Set a long-term target goal of:18-20% Adjusted EBITDA margin for the core clinical and financial solutions segment, and 30%+ Adjusted EBITDA margin for the data, analytics and care coordination segment Goal Initiatives Sustained
Slide 12: We Have Continued Margin Improvement Initiatives
We Have Continued Margin Improvement Initiatives… Right-size services and support teams for utilization trends and revenue run rateIncrease vendor management and optimization of hosting costsShed very low margin revenue (hardware and some 3rd party solutions) Restructure group to improve accountabil
Slide 13: Confidence in Our Ability to Improve Margins
…Which Gives us Confidence in Our Ability to Improve Margins in an Uncertain Revenue Environment Core clinical and financial solutions Data, analytics and care coordination Second Quarter 2020 Long-Term Goal 15.0% 29.4% 18%-20% 30%+ Adjusted EBITDA Margin Targets By end of 2020 15.5%-16.0% 29.5%-30.
Slide 14: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes references to non-GAAP revenue, Adjusted EBITDA, and Adjusted EBITDA margin, which are considered non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. Each of these measures are not
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Albers Healthcare Sohtions Ia ‘Now GAA? Fumci Iagrmation- dusted EBITDA ations exeptpecemge) Cinties) ‘Thee Mouth: Ended Jue 2 Sis Mouth: Ended June 3, 200 209 m0 209 ‘Net inca (os) as reposted o3 ory io) oor) Pax Tazet pened ote 212) oa “4 n2 m1 Depacutensn! anatiaion ae 5
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Alscrbte Heater Seton, Ic. ‘Nav-GAAP Finca Tomantion-Adusted EBITDA asiions sce pacers) Cintas) ‘Thee Mouth: Ended Marc 3. m0 209 ‘Net ince (os) a: ported 09 co Pox tse epee ad tes (2), 38 Depacttonzn! anatiaton sa iyo (rome) ba of wcaoKdans ineamens @ Texproisba(oen) oa EED
Slide 18: Core Clinical & Financial Solutions
Core Clinics] & Financial Solutions ‘Revenue, GAAP Acguisitionseiatad defarnd reveme adjustments Non-GAAP Revenue Gross profit, GAAP Acquisitionseistad defarnd reveme adjustments Acquisitionselated amortization Stock-based compessation expanse Restructusiag and other ‘Non-GAAP Grose profit Income (l
Slide 19: Data, Analytics & Care Coordination
Non-GAAP Reconciliations Allerip Healthcare Solutions, Ine ‘Non-GAAP Financial Information tice & Care Coordination Seemer ‘Revenue, GAAP Acguisitionseiatad defarnd reveme adjustments Non-GAAP Revenue (Gross profit, GAAP. Acquisitionseiatad defarnd reveme adjustments Acquisitionelated amortization S
Slide 20: Unallocated
Non-GAAP Reconciliations Allerip Healthcare Solutions, Ine. ‘Non-GAAP Financial Information (amillions) (onavdited) 220 qe Qe Tear Quon Tout Unallocated Revenue, as reported Non-GAAP Revenue Gross Profit, as reported ‘Non-GAAP Gross Profit 8799 a 8799 a 61 68 78 61 68 78 so 100 | 180 so 100 | 180 49
Allscripts Healthcare Solutions — Q2 2020 Earnings Presentation on 6ix