Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Presentation (June 2013)
38 slides from Veradigm's investor presentation, Jun 12, 2013
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Slide 4: Allscripts
Allscripts Investor Presentation June 2013 Exhibit 99.1
Slide 5: Forward-Looking Statements
A Connected Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events or developments, our future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or p
Slide 6: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures Non-GAAP revenue consists of GAAP revenue as reported and adds back the provision for revenue deferral as well as acquisition-related deferred revenue adjustment booked for GAAP purposes. Non-GAAP net income consists of GAAP net income as reported, excludes
Slide 7: An Open, Connected Community of Health
An Open, Connected Community of Health ™ Our Vision We provide clinical, financial, connectivity and information SOLUTIONS and related professional services to physicians, health systems, hospitals and post-acute organizations. We deliver insights that healthcare providers require to generate world-
Slide 8: Who We Are and What We Do
OUR Solutions • Electronic Health Record Technology • Revenue Cycle Management • Professional Services • Clinical & Financial Transaction Management • Hosting • Connectivity • Population Health Management • IT Outsourcing OUR CLIENTS • 180,000 Physicians • 50,000 Physician Practices • 1,500 Hospital
Slide 9: Investment Highlights
Investment Highlights MARKET LEADER Diverse, industry-leading client base Brand name recognition OPEN systems COMPLETE PRODUCT PORTFOLIO Depth and breadth Maximizes opportunities to expand market and wallet share Significant investment in technology platform and mobile platforms DYNAMIC GROWTH MARKE
Slide 10: Agenda
Agenda MARKET DIFFERENTIATION GROWTH
Slide 11: A Large, Dynamic Market
$16B $10B $17B A Large, Dynamic Market U.S. Acute/Ambulatory EHR Opportunity ~$43BB Source: McKinsey & Company $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Ambulatory Stand-Alone Opportunity Acute Stand-Alone Opportunity Integrated/Complete Solution Across Hospitals and Physician Practices
Slide 12: Allscripts well positioned to capitalize on evolving market
Meaningful Use ICD-10 HIPAA Population Health Management Allscripts well positioned to capitalize on evolving market • ~$20BB federal program to drive “meaningful” adoption electronic records – Technology and regulatory bar increases over time – Yields opportunity for market share gains and competit
Slide 13: Unsustainable Trend Requiring Change
VALUE • Collaboration, connectivity • Clinical, financial data, analysis • Optimize outcomes • Accountable care Unsustainable Trend Requiring Change VOLUME Source: HFMA “Value in Healthcare: Current State & Future Directions, June • Fragmented providers and payments • No uniform quality • Fees for v
Slide 14: Allscripts provides connectivity, analytics and services across the community
Allscripts provides connectivity, analytics and services across the community, regardless of underlying system – a key differentiator for the future Unsustainable Trend Requiring Change…Will Drive Future Growth Opportunities “Above” the EHR Care Coordination Population Patient Engagement Enterprise
Slide 15: Market, Differentiation, Growth
MARKET GROWTH DIFFERENTIATION
Slide 16: Leading Footprint Across the Market
1 of 3 MDs 1 of 3 Hospitals Leading Footprint Across the Market 10,000 Post-acute Care Providers Used By:
Slide 17: Leading Market Share in Ambulatory
22% 13% 16% 15% 14% 15% 42% 54% 63% 68% 77% 59% 36% 33% 21% 17% 9% 26% Leading Market Share in Ambulatory 2012 Share by Practice Size Source: Capsite, 2012 US Ambulatory EHR & PM Study, August 2012 Allscripts Market Position #1 #1 #1 #2 #2 #2 Top 15 Vendors (ex Allscripts) Rest of Market
Slide 18: Positioned for Growth in Acute
Source: Analysis of HIMSS Analytics, CDR, 2011-2012. 1. For illustrative purposes, two acute vendors with ~22% and ~9% of the hospital IT market. Total 2012 Market Share Potential replacement opportunity 31% Positioned for Growth in Acute Allscripts 4.0% Other 65.0
Slide 19: Connect Inside and Outside
Connect Inside To Succeed in Value Based Care: Interoperability, Open Platform Traditional World (Monolithic/Closed Mainframe) New World (Modern/Open Platform) Connect Inside and Outside
Slide 20: Our Solutions: OPEN + Depth & Breadth
Our Solutions: OPEN + Depth & Breadth
Slide 21: Complete Core Solution Set
Homecare Care Management Clinical and Financial Management Care Management Emergency Department Complete Core Solution Set Electronic Health Records Practice Management Payerpath • Enterprise EHR and Practice Management • Professional EHR and Practice Management • Pathway Solutions • Sunrise Clinica
Slide 22: Technology platform a source of competitive advantage for the future
Technology platform a source of competitive advantage for the future SOLUTIONS for the “Virtual Layer” Beyond the EHR: Patient Engagement, Connectivity, Analytics and Care Coordination Physician Hospital & Health System At Home/Alternate Site Information Exchange : dbMotion Patient Engagement: Follo
Slide 23: Well-positioned for Next Generation of Healthcare
• Stage 1: EHR/Application • Stage 2: Connection • Stage 3: Information • Stage 4: Analytics and Insights • Stage 5: Outcomes LEVEL OF IMPACT (Quality, Cost of Care) TIME Well-positioned for Next Generation of Healthcare • Significant drivers post Meaningful Use: Accountable Care Organization functi
Slide 24: Allscripts Leadership
Name Title Years Relevant Experience Experience Allscripts Leadership Stabilized and experienced team comprised of HCIT and technology veterans Paul Black CEO and President 25+ Cerner, IBM Rick Poulton Chief Financial Officer 25+ AAR, United Airlines, Arthur Andersen Cliff Meltzer EVP, Solutions Dev
Slide 25: Market, Differentiation, Growth
MARKET DIFFERENTIATION GROWTH
Slide 26: Strategic Imperatives
Strategic Imperatives for Client Commitments Position for Growth Enhance Financial Consistency Operational Effectiveness • Deliver timely, high-quality upgrades, ensuring client success with upcoming regulatory compliance requirements • Invest in improving client satisfaction • “Centers of Excellenc
Slide 27: Growth: Long-Term Focus
Growth: Long-Term Focus ¹ Annual revenue for Allscripts illustrated above is based on a GAAP presentation and is calenderized based on reported quarterly results. Please note Allscripts changed its fiscal year-end to May between the period of September 2008 and May 2010. Revenue includes the impact
Slide 28: Strong Cash Flow Generation
Strong Cash Flow Generation ¹ Annual cash flow from operations for Allscripts illustrated above is calenderized based on annual results. Please note Allscripts changed its fiscal year-end to May between the period of September 2008 and May 2010. Cash flows from operations also include the impact of
Slide 29: 1Q'13 Results
($MM except per share) Q1’13 Q4’12 Q1’12 Y/Y % change 1Q’13 Results Bookings $177.7 $180.7 $194.6 (8.7%) Non–GAAP Revenue $348.0 $368.0 $365.5 (4.8%) Adj. EBITDA margin $49.8 (2) 14% $53.6 15% $58.3 16.0% (14.6%) (1.7%) Non-GAAP EPS $0.09 (2) $0.16 $0.12 (25%) Please see the Non-GAAP reconciliation
Slide 30: Recent Results and Outlook
Recent Results and Corporate Update • Q1: signed a new Sunrise community agreement (Resolute Health) and large client renewal (Phoenix Children’s Hospital) • Investing in clients /solutions • Focused on meeting commitments • Results not indicative of long-term potential • Increased Q1 2013 gross R&D
Slide 31: Key Balance Sheet Metrics
($MM) 2010 2011 2012 Q1’13 Key Balance Sheet Metrics Cash and Cash Equivalents $129.4 $157.8 $104.0 $92.3 Accounts Receivable 317.2 362.8 337.0 351.8 Total Assets 2,418.6 2,503.6 2,384.5 2,622.8 Accounts Payable 46.6 41.2 45.9 73.0 Accrued Liabilities 125.1 121.5 137.2 140.7 Total Deferred Revenue 2
Slide 32: santo value
santo value re MARKET S Koy Tong post? Allscripts"
Slide 33: Non-GAAP Reconciliations: Revenue and earnings
Non-GAAP Reconciliations: Revenue and earnings first quarter 2013 and 2012 and fourth quarter 2012 Source: Company filings 3/31/13 12/31/12 3/31/12 Total revenue, as reported $347.1 $350.9 $364.7 Provision for revenue deferral (a) 0.0 16.8 0.0 Acquisition-related deferred revenue adjustment 0.9 0.3
Slide 34: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations: Adjusted EBITDA first quarter 2013 and 2012 and fourth quarter 2012 Source: Company filings 3/31/13 12/31/12 3/31/12 Total revenue, as reported $347.1 $350.9 $364.7 Provision for revenue deferral (a) 0.0 16.8 0.0 Acquisition related deferred revenue adjustment 0.9 0.3 0.8 T
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Slide 38: Allscripts
Allscripts Investor Presentation June 2013
Allscripts Healthcare Solutions — Investor Presentation (June 2013) on 6ix