Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — J.P. Morgan Annual Healthcare Conference (January 2012)
149 slides from Veradigm's conference presentation, Jan 10, 2012
Slide 1: Allscripts
Allscripts:
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Slide 4: Allscripts J.P. Morgan Annual Healthcare Conference
Allscripts Investor Presentation JANUARY 2012 J.P. Morgan 30 th Annual Healthcare Conference Exhibit 99.1
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® Allscripts
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Slide 8: Forward Looking Statement
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Forward Looking Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events or developments, our future performance, as w
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Slide 12: A Connected Community of Health: Our Vision
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. A Connected Community of Health ™ OUR VISION Allscripts is the leading provider of Electronic Health Record (EHR), practice management and other clinical, revenue cycle, connectivity and information solutions fo
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Slide 16: Allscripts: Who We Are
OUR CLIENTS • 180,000 Physicians • 50,000 Physician Practices • 1,500 Hospitals • 10,000 Post-acute Facilities • 27,000 Clinicians In Patients Homes Every Day OUR COMPANY • ~$1.3BB 2010 Non-GAAP Revenue • 6,000 Employees • $160MM in R&D & Growing • Leader in Innovation • ~$3.5BB Market Capitalizatio
Slide 17: Allscripts
® Allscripts
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Slide 20: Investment Highlights
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Investment Highlights MARKET LEADER • Diverse, industry leading client base COMPLETE PRODUCT PORTFOLIO • Flexible, modern and complete solutions • Maximizes opportunities to expand market and wallet share DYNAMI
Slide 21: Agenda
Agenda A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. MARKET DIFFERENTIATION GROWTH
Slide 22: Market, Differentiation, Growth
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. MARKET DIFFERENTIATION GROWTH
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® Allscripts
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Slide 26: Market: The Time is NOW
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. A National Problem A Market that is Ready A Significant Opportunity • Quality Issues • Medical Errors / Safety Concerns • Rising Cost • Significant Waste • $43BB Opportunity • $30BB in Stimulus Funding • ~35% Pe
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® Allscripts
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Slide 31: Market: Unsustainable Trend Requiring Change
VALUE • Collaboration, connectivity • Clinical, financial data, analysis • Optimize outcomes • Accountable care A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Market: Unsustainable Trend Requiring Change VOLUME • Fragmented providers and payments • No unifor
Slide 32: $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Source: McKinsey & Company
$45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Source: McKinsey & Company ® Allscripts
Slide 33: (In Billions)
$45, $40 $35 $30 (In Billions) $25 $20 $15 $10 $5 $0 Source: McKinsey & Company
Slide 34: (In Billions)
$45, $40 $35 $30 (In Billions) $25 $20 $15 $10 $5 $0 Source: McKinsey & Company
Slide 35: Market: MDRX Addresses the Entire Market Opportunity
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Market: MDRX Addresses the Entire Market Opportunity Acute/Ambulatory EHR Opportunity 2010-2014 = ~$43BB • Ambulatory Stand-Alone Opportunity • Acute Stand-Alone Opportunity STAND-ALONE MARKET INTEGRATED MARKET
Slide 36: Allscripts
® Allscripts
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Slide 39: Market: Significant Ambulatory Potential
PRACTICE SIZE TOTAL # OF PRACTICES EHR PENETRATION (July ‘11) A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Market: Significant Ambulatory Potential 1-3 Physicians ~186,000 ~30% 4-9 Physicians ~28,000 ~50% 10-25 Physicians ~6,900 ~70% 26+ Physicians ~1,750
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Slide 43: Market: Acute Care Growth Drivers
HOSPITALS/HEALTH SYSTEMS LEGACY REPLACEMENT CYCLE UNDER- UTILIZATION • Obsolete mainframe systems • Integrate acute/ambulatory systems • Care Coordination • Only ~20%* of Hospitals at HIMSS Stage 4 adoption or higher • Only 1%* at HIMSS Stage 7 A Connected Community of Health | Copyright © 2012 Alls
Slide 44: Market, Differentiation, Growth
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. MARKET DIFFERENTIATION GROWTH
Slide 45: Allscripts
® Allscripts
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Slide 48: Differentiation: Leading Footprint Across the Market
(48% Rev) 1 of 3 MDs 1 of 3 Hospitals (43% Rev) A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Differentiation: Leading Footprint Across the Market 10,000 Post-acute Care Providers (9% Rev) Source: Allscripts Form 10Q Quarterly Report for period ended 9/30/1
Slide 49: Differentiation: Open and Connected Portfolio
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Differentiation: Open and Connected Portfolio
Slide 50: Allscripts
® Allscripts
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Slide 53: Differentiation: The Challenge to Deliver Meaningful Care
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Differentiation: The Challenge to Deliver Meaningful Care • Stage 1: Application • Stage 2: Connection • Stage 3: Information • Stage 4: Insights • Stage 5: Outcomes TIME LEVEL OF IMPACT (Quality, Cost)
Slide 54: HOMECARE
HOMECARE PHARMACY SPECIALIST PREVARY CARE PHYSICIAN HEALTH SYSTEM ® Allscripts
Slide 55: HOMECARE
HOMECARE PHARMACY SPECIALIST PRIMARY CARE PHYSICIAN HEALTH SYSTEM
Slide 56: HOMECARE
HOMECARE PHARMACY SPECIALIST PRIMARY CARE PHYSICIAN HEALTH SYSTEM
Slide 57: Differentiation: The New Architecture of Healthcare
Connect Inside A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Differentiation: The New Architecture of Healthcare Old World (Monolithic/Closed Mainframe) New World (Modern/Open Platform) Connect Inside and Outside
Slide 58: Allscripts
® Allscripts
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ae
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ae
Slide 61: Differentiation: Allscripts Approach
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. • Key stakeholders across the community (Allscripts Referral Network, Allscripts Community) • All points of care and all applications within their organization Differentiation: Allscripts Approach
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® Allscripts
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Slide 66: Differentiation: Clinical Outcomes Experience and Focus
“Clinical outcomes is the name of the game in ACOs. This is an area where we believe Allscripts holds a market lead, and needs to continue to focus on delivering more integrated outcomes modules for its client base.” THE ADVISORY BOARD COMPANY (APRIL 2011, “A PERSPECTIVE ON THE COMPANY”) A Connected
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Slide 70: Differentiation: Insights to Outcomes
ALLSCRIPTS OPTIMALLY POSITIONED • Largest client footprint • Technology to connect • The analytics to deliver information at the point of care THIS SHOWS IN ALLSCRIPTS CLIENT RESULTS . . . • Most utilization • Most innovation • Best outcomes A Connected Community of Health | Copyright © 2012 Allscri
Slide 71: Performance Management, Care Management, Community Solutions
rem SQ Performance Management Solutions Analytics fl] ve "== ia Care Management Solutions Care Coordination Community Solutions y @. —s Connectivity ® Allscripts
Slide 72: Performance Management, Care Management, Community Solutions
Performance Management Solutions Analytics ‘ v [rosrmce) HE S Care Management Solutions Care Coordination ‘ ¥ a. s&s Community Solutions Connectivity
Slide 73: Performance Management, Care Management, Community Solutions
Performance Management Solutions Analytics ‘ v [rosrmce) HE S Care Management Solutions Care Coordination ‘ ¥ a. s&s Community Solutions Connectivity
Slide 74: Differentiation: Deliver Solutions in a Value-Based Care Environment
Differentiation: Deliver Solutions in a Value-Based Care Environment A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc.
Slide 75: Allscripts
® Allscripts
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Slide 78: Differentiation: Innovative Solutions
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Differentiation: Innovative Solutions Mobile Platforms Accelerate Adoption
Slide 79: Market, Differentiation, Growth
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. MARKET DIFFERENTIATION GROWTH
Slide 80: Revenue
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 REVENUE® 5-Year CAGR ~45% $1458m! o7 08 09 10 ® Allscripts
Slide 81: Revenue
REVENUE® $1,600 $1458m! $1,400 $1,200 5-Year CAGR ~45% $1,000 $800 $600 $400 $200 $282m 06 o7 08 09 10 n
Slide 82: Revenue
REVENUE® $1,600 $1458m! $1,400 $1,200 5-Year CAGR ~45% $1,000 $800 $600 $400 $200 $282m 06 o7 08 09 10 n
Slide 83: Revenue
REVENUE® $1,600 $1458m! $1,400 $1,200 5-Year CAGR ~45% $1,000 $800 $600 $400 $200 $282m 06 o7 08 09 10 n
Slide 84: Growth: Long-Term Focus
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Long-Term Focus 1. 2011 revenue guidance provided by Allscripts on November 3, 2011. This document does not subsequently update or reaffirm Allscripts financial guidance. 2. Annual revenue for Allscripts
Slide 85: Non-GAAP Operating Income
Non-GAAP Operating Income ($millions) ©2009 cy2010 9 MMONTHS 9 MONTHS 9/30/10 9/30/11 ® Allscripts
Slide 86: Non-GAAP Operating Income
Non-GAAP Operating Income ($millions) cy2009 cy2010 9 MMONTHS 9 MONTHS 9/30/10 9/30/11
Slide 87: Non-GAAP Operating Income
Non-GAAP Operating Income ($millions) cy2009 cy2010 9 MMONTHS 9 MONTHS 9/30/10 9/30/11
Slide 88: Growth: Historical Performance
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Historical Performance Note: Please see the Non-GAAP reconciliation and related footnotes in the appendix to this presentation. tp://investor.allscripts.com • Non-GAAP Revenue CY 2010: $1,300MM • Non-GAA
Slide 89: Field sales and distribution channels
~170 Field sales reps Hospital Community Partners ~75 Internal sales reps All Providers ~125 Payers Value-added Resellers (1,000 representatives) ® Allscripts
Slide 90: Field sales and distribution channels
~170 Field sales reps Hospital Community Partners ~75 Internal sales reps All Providers ~125 Payers Value-added Resellers (1,000 representatives)
Slide 91: Field sales and distribution channels
~170 Field sales reps Hospital Community Partners ~75 Internal sales reps All Providers ~125 Payers Value-added Resellers (1,000 representatives)
Slide 92: Growth: Distribution Outpaces the Competition
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Distribution Outpaces the Competition
Slide 93: CY2011, CY2012, CY2013 & Beyond
cy2011 c¥2012 cY2013 & Beyond ® Allscripts
Slide 94: CY2011, CY2012, CY2013 & Beyond
cy2011 c¥2012 cY2013 & Beyond
Slide 95: CY2011, CY2012, CY2013 & Beyond
cy2011 c¥2012 cY2013 & Beyond
Slide 96: Growth: Significant Cost Synergies
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Significant Cost Synergies Projected Cost Synergies Over Three Years • Duplicative management structure • Duplicative public company costs • Duplicative back-end office and system integration • Marketing
Slide 97: Incremental Revenues
INCREMENTAL REVENUES. ~$430MM + ~$820MM = ~$1,250MM
Slide 98: Incremental Revenues
INCREMENTAL REVENUES ~$430MM + ~$820MM = ~$1,250MM
Slide 99: Incremental Revenues
INCREMENTAL REVENUES ~$430MM + ~$820MM = ~$1,250MM
Slide 100: Growth: Significant Client Sales Opportunity
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Significant Client Sales Opportunity Sell Acute Solutions to Ambulatory Care Base Sell Ambulatory Solutions to Acute Care Base
Slide 101: Allscripts
® Allscripts
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Slide 104: Growth: Utilizing Strong Cash Flow to Enhance Value
CAPITALIZATION ACTUAL 9/30/2011 A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Utilizing Strong Cash Flow to Enhance Value Cash and Marketable Securities $87 Revolver ($250mm) Term Loan Total Debt $377 Equity 1,439 Total Capitalization $1,816 Credit
Slide 105: Allscripts
® Allscripts
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Slide 108: Growth: Non-GAAP Financial Outlook
CY 2010 ACTUAL CY 2011 2010 TO 2011 CHANGE A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Growth: Non-GAAP Financial Outlook NON-GAAP REVENUE $1,300 $1,455 - $1,460 12% NON-GAAP OPERATING MARGIN 19% 21% +200 BPS NON-GAAP NET INCOME $148 $174 - $179 17 – 21%
Slide 109: In Summary
In Summary…. A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. MARKET DIFFERENTIATION GROWTH
Slide 110: Allscripts
Allscripts:
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Slide 113: Allscripts J.P. Morgan Annual Healthcare Conference
Allscripts Investor Presentation JANUARY 2012 J.P. Morgan 30 th Annual Healthcare Conference
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Slide 117: Appendix: Non-GAAP Reconciliations
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Appendix: Non-GAAP Reconciliations
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Slide 121: Appendix: Non-GAAP Reconciliation
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Appendix: Non-GAAP Reconciliation • GAAP – non-GAAP revenue and net income reconciliation for the twelve months ended December 31, 2010. Three Months Ended Twelve Months Ended 12/31/2010 12/31/2010 Allscripts Ec
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Slide 125: Appendix: Non-GAAP Reconciliation
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Appendix: Non-GAAP Reconciliation • GAAP – non-GAAP revenue reconciliation for the twelve months ended November 30, 2009 (Allscripts) and twelve months ended December 31, 2009 (Eclipsys). Allscripts (11/30/2009)
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Slide 129: Appendix: Non-GAAP Reconciliation
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. 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).
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Slide 133: Appendix: Non-GAAP Reconciliation
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Appendix: Non-GAAP Reconciliation • GAAP – non-GAAP operating income reconciliation by quarter and twelve months ended December 31, 2010. Three Months Ended Twelve Months Ended 12/31/2010 12/31/2010 Allscripts E
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Slide 137: Appendix: Non-GAAP Reconciliation
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Appendix: Non-GAAP Reconciliation • GAAP – non-GAAP operating income and margin reconciliation for the three and nine months ended September 30, 2011 and 2010. 9/30/11 9/30/10 9/30/11 9/30/10 Total revenue, as r
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Slide 141: Appendix: Non-GAAP Reconciliation
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Appendix: Non-GAAP Reconciliation • GAAP – non-GAAP EBITDA reconciliation for the months ended September 30, 2011 EBITDA Calculation ($ in thousands) Combined Results for Allscripts and Eclipsys for the 12 month
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Slide 145: Footnotes Regarding Financial Guidance
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. Footnotes Regarding Financial Guidance Financial guidance was last provided by the company in a press release on November 3, 2011. This presentation does not subsequently update or reaffirm Allscripts financial
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Slide 149: Explanation of Non-GAAP Financial Measures
A Connected Community of Health | Copyright © 2012 Allscripts Healthcare Solutions, Inc. 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 th
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