Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts-Misys Healthcare Solutions — Investor Presentation (April 2010)
47 slides from Veradigm's investor presentation, Apr 13, 2010
Slide 1: Allscripts Investor Presentation – April, 2010
Allscripts Investor Presentation – April, 2010 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This press release 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 › “The Time is Now” › Why Allscripts? › Financial Update
Slide 4: Beginning of the fastest transformation of any industry in US history
We are at the beginning of what we expect will be the sin g le fastest transformation of any industry in US history
Slide 5: 2010: The “Year of the EHR”
2010: The “Year of the EHR”
Slide 6: 2010: The Year of the EHR
2010: The Year of the EHR <20 % Approx. 20% EHR Physician Penetration -Early Adopters ~ $30B ~$30 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 7: Market Potential by Practice Size
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 8: Once in a Lifetime Opportunity…
Once in a Lifetime Opportunity…
Slide 9: Meaningful Use 101: Key Components
Meaningful Use 101: 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: The Time is Now…
“If you wait to purchase an EHR until the rules are final ... I will put my reputation on the line and say that you will not achieve meaningful use in 2011.” Dr. Mark Leavitt Chair of CCHIT February 2010 The Time is Now…
Slide 11: Catalysts for EHR Adoption
70% of Funding Used First Checks Cut Q1 ARRA Announced Q1 MU Finalized Q1 Catalysts for EHR Adoption ~20% Physician Penetration (a) (a) ~20% estimate based on number of ambulatory physicians; penetration as a percentage of number of physician practices, is approximatley ~12%
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Slide 13: $44,000 to $64,000/MD & $2,000,000/Hospital
Go… $44,000 to $64,000/MD & $2,000,000/Hospital
Slide 14: The Assurance
The Assurance Guarantee our EHRs will meet the MU certification criteria Go…
Slide 15: The Assurance
Go… The Assurance Set by Allscripts Clients: 160,000 MDs 800 Hospitals 8,000 Post Acute Care Facilities
Slide 16: 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 mm R&D
Slide 17: Our Footprint…
Our Footprint… 160,000 Physicians 8,000 Post-Acute Providers 800 Hospitals and 80 million Rx…
Slide 18: Comprehensive Portfolio…
Comprehensive Portfolio… Across the Continuum of Care
Slide 19: Allscripts
Allscripts”
Slide 20: An Industry-Leading Portfolio
An Industry-Leading Portfolio
Slide 21: Allscripts portfolio
Allscrige™
Slide 22: Powerful Engine to Drive Sales
Powerful Engine to Drive Sales Hospital/Community Distribution Partners Exclusive Relationships: Henry Schein; Cardinal Health Allscripts Distribution Network ~250 Direct Sales Professionals Direct Marketing
Slide 23: Our Approach – Allscripts Everywhere
1-3 Physicians 4-25 Physicians 25+ Physicians & Community Our Approach – Allscripts Everywhere MyWay & Professional • Certification Guarantee • Regional Extension Center Strategy • Leverage installed base • Distribution Network • Turn-key to Live Professional & Enterprise • Certification Guarantee •
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Slide 27: Summary - Unparalleled Market Opportunity
Summary - Unparalleled Market Opportunity Rapid Transformation The Choice is Allscripts Allscripts – “Built to Last”
Slide 28: Financial Overview
Financial Overview
Slide 29: Allscripts – Financial Highlights
Allscripts – Financial Highlights Bookings Momentum $297 mm – 28% growth fiscal YTD ~$720.0 mm Revenue Run Rate Top Line Visibility 63% recurring revenue in 3Q Fiscal 2010 Significant Mix of SaaS Bookings 22% in most recent quarter; 24% YTD source of recurring revenue Improving Gross Margins 56.5% i
Slide 30: Fiscal 3Q 2010 & YTD Bookings Results
Fiscal 3Q 2010 & YTD Bookings Results % Change 2/28/09 2/28/10 Nine Months Ended +28% +25% % Change $231.5 $84.4 2/28/09 Total Bookings Total Bookings Quarter Ended $296.8 $105.5 2/28/10 Strong 3Q and YTD bookings across all product offerings
Slide 31: Fiscal 3Q 2010 Revenue and Net Income
Fiscal 3Q 2010 Revenue and Net Income +39% $13.3 $18.5 Net Income +33% $0.09 $0.12 EPS +12% $160.7 $179.9 Revenue - 65% 65% % YTD Recurring Revenue % Change Q3 ‘09 Q3 ‘10
Slide 32: Fiscal 3Q 2010 Non-GAAP Revenue and Net Income
Fiscal 3Q 2010 Non-GAAP (a) Revenue and Net Income +18% $21.7 $25.6 Non-GAAP Net Income(a) +21% $0.14 $0.17 Non-GAAP EPS (a) +16% $155.3 $180.4 Non-GAAP Revenue(a) - 65% 65% % YTD Recurring Revenue % Change Q3 ‘09 Q3 ‘10 (a) Please see reconciliation and footnotes in appendix to this presentation re
Slide 33: Non-GAAP Gross Profit Margin
Non-GAAP (a) Gross Profit Margin Improvement: Q3 2010 vs. Q3 2009 50% 52% 54% 56% 58% 60% (a) Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP gross profit margin for the three months ended February 28, 2010 and 2009. Additional information also available a
Slide 34: Non-GAAP Net Income Growth
Non-GAAP (a) Net Income Growth: Q3 2010 vs. Q3 2009 $20.0 $22.0 $24.0 $26.0 $28.0 $30.0 (a) Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP net income for the three months ended February 28, 2010 and 2009 . Additional information also available at http://i
Slide 35: Non-GAAP Diluted Earnings Per Share
Non-GAAP (a) Diluted Earnings Per Share: Q3 2010 vs. Q3 2009 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 (a) Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP diluted earnings per share for the three months ended February 28, 2010 and 2009 . Additional information a
Slide 36: Fiscal 2010 Outlook
Fiscal 2010 Outlook $105.0 - $112.0 Bookings (a) $0.64 - $0.65 Non-GAAP diluted EPS (b) ~150.0 Adjusted Weighted Diluted Shares Outstanding $700.0 - $705.0 Revenue $67.0 - $68.5 Net income $97.0 - $98.5 Non-GAAP net income (b) $0.44 - $0.45 2010E Diluted EPS Financial Metrics (a) Bookings guidance r
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Slide 40: Summary - Excellent Sales Momentum
Summary - Excellent Sales Momentum Large Mix of Recurring Revenue = Excellent Top Line Visibility Operating Leverage Superior Long-Term Financial Model Allscripts – “Built to Last”
Slide 41: Allscripts
ANY Allscripts”
Slide 42: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation GAAP – non-GAAP revenue reconciliation for the three months ended February 28, 2009 and 2010. $180.4 $155.3 Revenue, non-GAAP - (8.5) Elimination of prepackaged medications 0.5 3.1 Deferred revenue adjustment $179.9 $160.7 Revenue, as reported Revenue Feb-10 Feb-09
Slide 43: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation GAAP – non-GAAP gross profit margin reconciliation for the three months ended February 28, 2009 and 2010. 0.5 3.1 Deferred revenue adjustment 56.6% 54.5% % of non-GAAP revenue $102.2 $84.6 Gross profit, non-GAAP - (1.8) Elimination of prepackaged medications 56.5% 5
Slide 44: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation GAAP – non-GAAP EPS reconciliation for the three months ended February 28, 2009 and 2010. $25.6 $21.7 Net income, non-GAAP $0.17 $0.14 Net income per share, non-GAAP, diluted (4.0) (5.5) Non-GAAP adjustments tax effected at 39% for 2010 & 40% for 2009 $0.12 $0.09 Ne
Slide 45: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation GAAP – non-GAAP Net Income and EPS reconciliation for the year ended May 31, 2009 and 4.9 7.8 Deferred revenue adjustment $0.64 to $0.65 $0.65 $0.61 Non-GAAP EPS 150.7 126.3 Share count $97.0 to $98.5 $98.0 $76.8 Non-GAAP Net income (19.3) (29.9) Tax effect of non-G
Slide 46: Basis of Presentation
Basis of Presentation The Company's GAAP results for the three and nine months ended February 28, 2010 include results of Allscripts for each such period. The Company's GAAP results for the three and nine months ended February 28, 2009 include the results of Misys Healthcare (Misys) for each period
Slide 47: 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 non-GAAP revenue, gross profit and net income, including non-GAAP net
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