Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Presentation (March 2011)
34 slides from Veradigm's investor presentation, Mar 2, 2011
Slide 1: Investor Presentation March 2011
Exhibit 99.1 Investor Presentation March 2011 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. & Allscripts
Slide 4: Allscripts Corporate Snapshot
Allscripts Corporate Snapshot > Our Clients > Our Company • 180,000 Providers • One Complete Set of Solutions • 50,000 Physician Practices • 5,500 Employees • 1,500 Hospitals • $1.3BB 2010 Non-GAAP Revenue • 10,000 Post Acute Facilities • $148MM 2010 Non-GAAP Net Income • 27,000 Clinicians In Patien
Slide 5: A Connected Community of Health
A Connected Community ™ of Health Our Vision 9 Allscripts
Slide 6: 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 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 > Integrated Market $16BB Hospitals and $35 Physician Practices $30 $25 $10BB Ambulatory Stand-Alone $20 Opportunity $15 > Stand-Alone Market Acute Stand-Alone $10
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 Program70% of Funding Used Announced Issued Has Begun! TODAY Physician Penetration(1) ~ 400 Hospitals ~20% Will Replace Clinical Systems(2) Q1 July January December 2009 2010 2011 2013 Source: National Center for Health Stati
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’sBestHospitals”asClients • The ‘Spokes’:Over 180,000 MDs and 10,000 Post Acute Care Organizations are Connected to other Practices, Pat
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 © 2010 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 © 2010 Allscripts Healthcare Solutions, Inc.
Slide 16: Proven Management Team
Proven Management Team Executive Position Experience Glen Tullman CEO 30+ Yrs Bill Davis CFO 19+ Yrs Lee Shapiro President 30+ Yrs Eileen McPartland COO 25+ Yrs Steve Lalonde SVP Sales 20+ Yrs Laurie McGraw Chief Client Officer 20+ Yrs President, Product Strategy & John Gomez 25+ Yrs Development Dia
Slide 17: Board of Directors
Board of Directors Executive Position Philip M. Pead Chairman Dennis Chookaszian Director Eugene V. Fife Director Marcel L. Gamache Director Philip Green Director Edward Kangas Director Michael Kluger Director Glen Tullman Director, CEO A Connected Community of Health | Copyright © 2010 Allscripts H
Slide 18: Financial Overview
Financial Overview A Connected Community of Health | Copyright © 2010 Allscripts Healthcare Solutions, Inc. 18
Slide 19: Fourth Quarter 2010 Financial Highlights
Fourth Quarter 2010 Financial Highlights • First Full Quarter of Consolidated Operations • Significant Cross Sales Across Ambulatory and Acute Solutions Achieving Results • University Hospitals; University of Kentucky; Maimonides, others • Sales Momentum Reflects Comprehensive Solutions, Ability to
Slide 20: 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) $128 Ambulatory Acute $250 56% 44% $200 $251 $150 $212 $100 $50 $69 Non-GAAP Non-GAAP Revenue Revenu
Slide 21: 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 back-end office and system integration • Marketing CY2011 CY2012 CY2013 & Beyond A Connected Community
Slide 22: 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 + ~$820MM = ~
Slide 23: Non-GAAP Financial Outlook
Non-GAAP Financial Outlook (1) ($ 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 24: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Actual Capitalization 12/31/2010 • Reduced debt by Cash and Marketable Securities $131 $81MM since merger Revolver ($250mm) 25 closed Term Loan 464 Total Debt $489 • Required principal payments in 2011 Equity 1,384 total $29.4MM Total Capitalization $1,873 • Borrowin
Slide 25: One Network. One Platform. One Patient.
One Network. One Platform. One Patient. 9 Allscripts
Slide 26: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP– non-GAAPrevenueandnetincomereconciliationfor thetwelvemonthsendedDecember31, 2010. Allscripts Healthcare Solutions, Inc. Non-GAAP Financial Information - 2010 Proforma Financial Information (In millions) (unaudited) 2010 Results Non-GAAP Total revenue, as re
Slide 27: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP revenue growth for the three months ended December 31, 2010. Allscripts Healthcare Solutions, Inc. Condensed Non-GAAP Financial Information (In millions) (Unaudited) Three Months Three Months Ended Ended 11/30/09 12/31/09 Q4 2009 Growth 12/31/10 All
Slide 28: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP operating margin reconciliation for the three months ended December 31, 2010 and Allscripts Healthcare Solutions, Inc. September 30, 2010. Condensed Non-GAAP Financial Information (In millions) (unaudited) Three Months Ended Three Months Ended 12/31
Slide 29: 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 30: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP operating income reconciliation for the three and twelve months ended December 31, 2009 (Eclipsys) and November 30, 2009 (Allscripts). Allscripts Healthcare Solutions, Inc. Non-GAAP Financial Information - 2009 Proforma Financial Information (In mil
Slide 31: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP operating income reconciliation for the three 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 Quart
Slide 32: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP EBITDA reconciliation for the 12 months ended December 31, 2010. Pro Forma Combined 12 months ended 12/31/2010 Net income $25.9 Income tax expense 28.8 Stock-based compensation expense 35.7 Depreciation & amortization 99.9 Interest expense 11.1 Tran
Slide 33: Footnotes Regarding Financial Guidance
Footnotes Regarding Financial Guidance Financial guidance was last provided by the company in a press release on February 15, 2011. This presentation does not subsequently update or reaffirm Allscripts financial guidance. Allscripts non-GAAP guidance for calendar 2011 assumes the following adjustmen
Slide 34: 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, Allscripts presents in this press release total non-GAAP revenue, gross profit, operating income and net income, i
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