Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (January 2010)
42 slides from Veradigm's investor presentation, Jan 26, 2010
Slide 1: Allscripts Investor Presentation – January 2010
Allscripts Investor Presentation – January, 2010 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company’s future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or proj
Slide 3: Agenda
Agenda › Market Opportunity is Now › Meaningful Use Update › Why Allscripts? › Financial Update
Slide 4: We are at the beginning of the single fastest transformation of any industry in US history
We are at the beginning of the single fastest transformation of any industry in US history
Slide 5: 2010: The Year of the EHR
2010: The Year of the EHR <20 % Approx. 20% EHR Physician Penetration -Early Adopters ~ $45B ~$45 Billion in Federal Funding % 70% of Funding Will Be Spent in First 3 Years Lower IT Investment in Healthcare Than Any Other Sector of Economy Sources: United States Dept. of Health and Human Services: F
Slide 6: Market Potential by Practice Size and EHR Penetration
Practice Size Total # of Practices EHR Penetration (FY08/09) Market Potential 1-3 Physicians 163,000 ~10% 4-9 Physician 27,000 ~20% 10-25 Physicians 8,000 ~25% 26+ Physicians 2,000 ~40% Total 200,000 ~12% Source: SK&A = SK&A Information Services which sells databases for sales and marketing success
Slide 7: Once in a Lifetime Opportunity…
Once in a Lifetime Opportunity…
Slide 8: Meaningful Use Update: The Time is Now
Meaningful Use Update: The Time is Now Healthcare Reform Will Not Impact ARRA ~$45B for EHRs › Medicare - $44,000; Medicaid - $63,750 › Rules Issued December 30, 2009 › Notice of Proposed Rule Making (NPRM) – how physicians earn incentives – 60-day comment period ends March 15 › Interim Final Rule (
Slide 9: Meaningful Use Update: Key Components
Meaningful Use Update: Key Components › The EHR Must be Certified & Include e-Prescribing › The EHR Must be Connected › The EHR Must Include Reporting Capabilities on Clinical Quality Metrics › The EHR Must be Used in a Meaningful Way
Slide 10: Why Allscripts?
Why Allscripts? › Leadership – 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 › A Safe Choice – Financially Strong – Revenue of ~ $700
Slide 11: Our Footprint…
Our Footprint… 160,000 Physicians 8,000 Post-Acute Providers 800 Hospitals and 80 million Rx…
Slide 12: Comprehensive Portfolio… Across the Continuum of Care
Comprehensive Portfolio… Across the Continuum of Care
Slide 13: MyWay EHR/PM and Professional EHR/PM
| MYWAY™ EHR/PM PROFESSIONAL™ EHR/PM Allscripts”
Slide 14: Connect
Connect
Slide 15: Powerful Engine to Drive Sales
Powerful Engine to Drive Sales Direct Marketing Allscripts Distribution Network Exclusive Relationships: Henry Schein; Cardinal Health Hospital/Community Distribution Partners ~250 Direct Sales Professionals
Slide 16: Introducing The Allscripts Stimulus Program
INTRODUCING... The Allscripts Stimulus Program Join the 160,000 MDs using Allscripts solutions today. Allscripts”
Slide 17: Introducing The Allscripts Stimulus Program: The Right EHR
INTRODUCING... The Allscripts Stimulus Program Join the 160,000 MDs using Allscripts solutions today. 1. The Right EHR. Our Electronic Health Record (EHR) solutions are designed to meet the needs of your practice, regardless of size or specialty. lise
Slide 18: Stimulus Program: The Right Guarantee
INTRODUCING... The Allscripts Stimulus Program Join the 160,000 MDs using Allscripts solutions today. 1. The Right EHR. 2. The Right Guarantee. Our Electronic Health Record (EHR) Our EHR solutions will meet the criteria solutions are designed to meet the for EHR certification. fnat, we'll credit nee
Slide 19: Stimulus Program: The Right Price
INTRODUCING. The Allscripts Stimulus Program Join the 160,000 MDs using Allscripts solutions today. 1. The Right EHR. 2. The Right Guarantee. Our Electronic Health Record (EHR) Our EHR solutions will meet the criteria solutions are designed to meet the for EHR certification. fnat, we'll credit needs
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Slide 23: Summary – Built to Last
Summary - › Unparalleled Market Opportunity › Rapid Transformation › “Rules of the Road” for Capturing Stimulus in Place Allscripts – “Built to Last”
Slide 24: Financial Overview
Financial Overview
Slide 25: Allscripts Financial Highlights
Allscripts – Financial Highlights › Bookings Momentum – $191.3 mm in H1 Bookings – 30% growth › $680.0 mm Revenue Run Rate › Revenue Visibility – 67% Recurring in 2Q Fiscal 2010 › mix of SaaS Bookings ~24% in most recent quarter › Improving Gross Margins – 56.4% as reported in Q2 › Significant Opera
Slide 26: Fiscal 2010 2Q & YTD Bookings Results
Fiscal 2010 2Q & YTD Bookings Results Quarter Ended 11/30/08 11/30/09 % Change Bookings $80.7 $93.8 +16% % SaaS 26% 24% Six Months Ended 11/30/08 11/30/09 % Change Bookings $147.1 $191.3 +30% % SaaS 24% 25% Strong 2Q and YTD bookings across all product offerings
Slide 27: Fiscal 2010 2Q Revenue and Net Income
Fiscal 2010 2Q Revenue and Net Income Q2 ‘09 Q2 ‘10 % Change Revenue $128.6 $169.3 +32% Non-GAAP Revenue(a) $163.4 $170.7 +4% % Recurring Revenue 63% 67% Net Income ($6.0) $15.8 N/M Non-GAAP Net Income(a) $16.6 $24.0 +45% (a) Please see reconciliation and footnotes in appendix to this presentation r
Slide 28: Non-GAAP Net Income Growth: H1 Fiscal 2010 vs. 2009
Non-GAAP (a ) Net Income Growth: H1 Fiscal 2010 vs. 2009 $30.0 $35.0 $40.0 $45.0 $50.0 (a) Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP net income for the six months ended November 30, 2008 and 2009 .. Additional information also available at http://inv
Slide 29: Non-GAAP Net Income Margin: H1 Fiscal 2010 vs. 2009
Non-GAAP (a ) Net Income Margin: H1 Fiscal 2010 vs. 2009 5.0% 10.0% 15.0% 20.0% (a) Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP net income margin for the six months ended November 30, 2008 and 2009 . Additional information also available at http:// inv
Slide 30: Fiscal 2010 Outlook
Fiscal 2010 Outlook 2010E Revenue $680.0 - $700.0 Net income $64.5 - $66.0 Non-GAAP net income(a) $93.5 - $95.0 Diluted EPS $0.41 - $0.43 Non-GAAP diluted EPS(a) $0.61 - $0.63 WASO 150.5 (a) Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP revenue, net inco
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Slide 34: Summary – Built to Last
Summary - › Excellent Sales Momentum › Large Mix of Recurring Revenue = Solid Top Line Visibility › Operating Leverage › Superior Long-Term Financial Model Allscripts – “Built to Last”
Slide 35: Allscripts
Allscripts
Slide 36: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation › GAAP – non-GAAP revenue reconciliation for the three months ended November 30, 2008 and 2009. Q2 Q2 Nov-08 Nov-09 Revenue Revenue, as reported $128.6 $169.3 Allscripts pre-merger 37.4 - Deferred revenue adjustment 2.1 1.4 Elimination of prepackaged medications (4.
Slide 37: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation › GAAP – non-GAAP net income reconciliation for the three months ended November 30, 2008 and 2009. Q2 Q2 Nov-08 Nov-09 Net income Net income, as reported $ (6.0) $ 15.8 Allscripts pre-merger 7.9 - Elimination of prepackaged medications (0.3) - Deferred revenue adjus
Slide 38: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation › GAAP – non-GAAP net income reconciliation for the six months ended November 30, and 2009. H1 H1 Nov-08 Nov-09 Net income Net income, as reported $ (0.6) $ 28.7 Allscripts pre-merger 11.0 - Elimination of prepackaged medications (1.1) - Deferred revenue adjustment
Slide 39: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation › GAAP – non-GAAP net income margin reconciliation for the six months ended November 30, and 2009. H1 H1 Nov-08 Nov-09 Net income margin Net income, non-GAAP (see page 32) $31.5 $46.1 Revenue, as reported 221.4 334.3 Net income margin, as reported 14.2% 13.6% Allscr
Slide 40: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation › GAAP – non-GAAP Net Income and EPS reconciliation for the year ended May 31, 2009 and Fiscal 2009 Fiscal 2010 Guidance Guidance Range Net income $26.0 $65.3 $64.5 to $66.0 GAAP EPS $0.21 $0.43 $0.41 to $0.43 Adjustments* Allscripts pre-merger 11.4 - Elimination of
Slide 41: Basis of Presentation
Basis of Presentation The Company's GAAP results for the three and six months ended November 30, 2009 include results of Allscripts for each such period. The Company's GAAP results for the three and six months ended November 30, include the results of Misys Healthcare (Misys) for each period and the
Slide 42: 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 presentation non-GAAP revenue and net income, including non-GAAP net income on a per s
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