Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (October 2008)
27 slides from Veradigm's investor presentation, Oct 23, 2008
Slide 1: Allscripts
Ay Allscripts”
Slide 2: The Right Place at the Right Time
Copyright © 2008 AllscriptsMisys Healthcare Solutions, Inc. The Right Place at the Right Time Allscripts Investor Presentation
Slide 3: Large & Troubled . . .
Large & Troubled . . . Our U.S. Healthcare Scorecard $2.2 Trillion Spent in Healthcare $700 Billion in Waste 98,000 Deaths from Medical Errors 1.5 Million Injuries 7,000 Deaths from Medication Errors
Slide 4: Key Trends Driving Change
Key Trends Driving Change › Rising Cost and the Parties Responsible for Payment › New Competitors for Physician Groups › Patients Are Not Patient Anymore › New Payment Structures and Metrics
Slide 5: The Role of Technology
The Role of Technology › Increase the Quality of Care › Take Costs Out › Improve Patient Safety › Increase Patient Satisfaction Technology is the Enabler The End Game is Information
Slide 6: The Healthcare Market Is Ripe for Change
The Healthcare Market Is Ripe for Change › Less Than 20% Physician Penetration › Less Than 10% in Smaller Groups › Lower IT Investment than Any Other Sector <20 % <10 %
Slide 7: Our DNA – Blending Two Into One
Our DNA – Blending Two Into One Clear Goal: Ready to Deliver on Day 1 Sales Force Integration Product Strategy Leadership Team Brand Integration Organized Around 13 Workstreams
Slide 8: In the Last Three Weeks…
In the Last Three Weeks…
Slide 9: Clear Mission
› Clear Mission - To be the clear leader in providing innovative software, connectivity and information solutions that empower physicians and other healthcare providers to improve the health of both their patients and their bottom line › Financially Strong - Revenue of ~ $700mm (Recurring Revenue ~
Slide 10: Waves of Healthcare IT Adoption
Practice Management Market Enhance the effectiveness of the practice Wave 1 Electronic Health Record Market Enhance the efficiency and quality of the visit Wave 2 Connectivity and Information Market Enhance the health of the patient and the practices bottom line Wave 3 Waves of Healthcare IT Adoptio
Slide 11: It’s Time to Connect to Health
It’s Time to Connect to Health™ NOTE: INSERT CONNECT TO HEALTH VIDEO
Slide 12: Why We Win
Why We Win › Significant Footprint: 150,000 MDs, 700 Hospitals, 6,000 Post Acute Facilities, 600 Homecare Agencies › All Sizes and Settings: Ambulatory and Acute, Primary Care and Specialty, Small to Large › Diversified Portfolio: Clinical and Business Solutions, Acute and Ambulatory › All World-Cla
Slide 13: Our Portfolio – We Will Connect the Market
Community Care Ambulatory Practices Acute Care Post-Acute Care Connect Solutions • Connect Portal • Connect Messaging Services …… …… Clinical Solutions • Professional EHR • Enterprise EHR • MyWay • ePrescribe • Document Management • Medication Services • Clinical Trials • Patient Access Solutions Bu
Slide 14: Bloomberg of Healthcare
Bloomberg of Healthcare
Slide 15: Our Client Base
Our Client Base 150,000 MDs and 700+ Hospitals Across the U.S.
Slide 16: Leadership Across the Ambulatory Market
Professional EHR + PM EDI Enterprise EHR + PM EDI Professional EHR + PM ASP-Based EHR EDI Independent Practices 1-3 physicians Small to Mid-Sized Physician Practices 4-25 Physicians Large Physician Practices 26-200+ Physicians ~40% penetration 1.3k practices 65k physicians ~10% penetration 170k prac
Slide 17: Market Opportunity
Market Opportunity ~ 500,000 U.S. Practicing Physicians x 80% EHR Market Opportunity x ~$12,000 Initial Investment/Physician = ~$5 Billion Opportunity Electronic Health Record (EHR) Market = ~ $5 Billion Practice Management (PM) Market = ~ $1 Billion/Yr. ~10% to 20% of PM Systems Replaced/Yr. Softwa
Slide 18: Products Target Client Base
Products Target Client Base Summary a complete portfolio of solutions… for practices in all sizes/areas… a footprint of 1 of 3 MDs in the U.S.
Slide 19: 2009 Outlook
2009 Outlook ($ in millions - unaudited pro forma) Previous Guidance Fiscal Fiscal Calendar Guidance Bookings $317.7 N/A N/A Revenue $684.2 $700.0 $700.0 to $715.0 Less: PI (15.0) (15.0) 0.0 Adjusted Revenue $669.2 $685.0 $700.0 to $715.0 Adjusted Earnings $62.6 $85.0 to $90.0 $76.0 to $82.0 Less: P
Slide 20: Adjusted Earnings Potential
Adjusted Earnings Potential ($ in millions - unaudited pro forma) Fiscal Fiscal Earnings Before Taxes, as reported $57.5 $83.5 to $93.0 Taxes (Assumed @ 39%) (22.4) $32.5 to $36.0 Net Income $35.1 $51.0 to $57.0 Adjustments:(tax adjusted @ 39%) Stock-Based Compensation $5.4 $7.0 Deal-Related Amortiz
Slide 21: Significant and Realizable Synergy Opportunity
Significant and Realizable Synergy Opportunity › Cost synergies of $20m+, pre-tax, expected in first year following transaction close - Up to $25m to $30m, pre-tax, in annual cost savings within the next few years - Main drivers of cost synergies include: R&D, Marketing, Sales, Administrative Functi
Slide 22: Illustrative Revenue Sensitivity Analysis
20% 30% 40% 50% 60% Illustrative Revenue Sensitivity Analysis Four Year Cumulative Penetration Rates 110,000 MDs 20% Assumed EHR Penetration 88,000 Addressable EHR Market License/Service Fees $165m $248m $330m $410m $495m Annual Maintenance $20m $30m $40m $50m $60m
Slide 23: We Are Prepared to Execute
We Are Prepared to Execute Vern Davenport, President Professional Solutions Clients: 21,000+ clients Small to mid-sized practices Employees: ~1,700 employees 160 sales reps (30 inside) Laurie McGraw, President Enterprise Solutions Clients: 5,000 clients Large Physicians Practices, IDNs, and Hospital
Slide 24: Fiscal Year 2009 Liquidity
Fiscal Year 2009 Liquidity ($ in millions - unaudited pro forma) Estimated Cash & Marketable Securities Net of Transaction Expenses $45.0 to $50.0 Summary of Debt: Drawn Portion of Revolving Credit Facility $50.0 Convertible Notes Outstanding 27.9 Mortgage (will be paid off with proceeds from sale)
Slide 25: Capital Structure
Capital Structure (shares in millions) Ownership % Allscripts Outstanding Shares 63.0 41.4% Allscripts Shares Issued to Misys plc 82.9 54.5% Shares Underlying Remaining Debentures 3.5 2.3% "In the Money" Options 2.4 1.5% Unvested Restricted Stock Units 0.4 0.2% Outstanding Equity as of Closing 152.1
Slide 26: Allscripts
Ay Allscripts”
Slide 27: Appendix A – GAAP Reconciliation
Appendix A – GAAP Reconciliation Three Months Ended Nine Months Ended Net Income $4.0 $4.1 $6.5 $14.6 Stock-based compensation expense (tax effected at 39% for 2008 and 40% for 2007) 1.0 0.9 3.2 1.7 Acquisition-related amortization (tax effected at 39% for 2008 and 40% for 2007) 2.1 1.7 6.3 4.7 Tran
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