Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Investor Presentation (November 2010)
30 slides from Veradigm's investor presentation, Nov 10, 2010
Slide 1: Investor Presentation November 2010
Exhibit 99.1 Investor Presentation November 2010 1
Slide 2: Forward Looking Statements
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 projections r
Slide 3: Our Mission
Our Mission To be the most trusted provider of innovative solutions that empower all stakeholders across the healthcare continuum to deliver world-class outcomes. 9 Allscripts:
Slide 4: Allscripts Corporate Snapshot
Allscripts Corporate Snapshot > Our Clients > Our Company • 180,000 Providers • 5,500 Employees • 150,000 Physician Practices • $1.2BB LTM Pro Forma Revenue • 1,500 Hospitals • Facilities in 24 States, Canada, India, the Middle East • 10,000 Post Acute Facilities and The Philippines • 27,000 Clinici
Slide 5: Investment Highlights
Investment Highlights Leading healthcare IT company with the broadest set of capabilities across every > venue of care including physicians, hospitals, post-acute and homecare The most utilized clinical solutions enabling health care providers to fully capitalize > on the $30BB federal stimulus prog
Slide 6: The Time is NOW
The Time is NOW A National > A Market that > A Significant Problem is Ready Opportunity • Quality Issues • $43BB Opportunity We are at the beginningof what we • Medical Errors / Safety • $30BB in Stimulus expect will be the Concerns Funding single fastest transformation of any • Rising Cost • ~15% P
Slide 7: Addressing the Entire Market Opportunity
Addressing the Entire Market Opportunity Acute/Ambulatory EHR Opportunity 2010-2014 = ~$43BB $45 Market Segment Seeking NewAddressable $40 an Integrated/Complete > Market: $35 $16BB Solution Across Hospitals and Physician Practices Integrated $30 $25 $10BB Pre-Merger Allscripts Opportunity (Ambulato
Slide 8: Ambulatory Market Potential
Ambulatory Market Potential EHR Penetration Practice Size Total # of Practices (FY09/10) 1-3 Physicians 163,000 ~13% 4-9 Physician 27,000 ~22% 10-25 Physicians 8,000 ~33% 26+ Physicians 2,000 ~50% Total 200,000 ~15% Source: SK&A = SK&A Information Services which sells databases for sales and marketi
Slide 9: Increased Certainty for Widespread EHR Adoption
Increased Certainty for Widespread EHR Adoption ARRA Final Rules Incentive 70% of Funding Used Announced Issued Program Begins TODAY Physician Penetration(1) 400 - 600 Hospitals ~20% Will Replace Clinical Systems(2) Q1 July January December 2009 2010 2011 2013 Source: National Center for Health Stat
Slide 10: Allscripts: Competitive Differentiation
Allscripts: Competitive Differentiation One One One Network. Platform. Patient. The largest connected Open, flexible, and A complete portfolio network in the nation… innovative to help you that delivers a single and in your community. connect inside and patient record across outside your your commun
Slide 11: One Network: The Largest Community in the Nation
One Network:The Largest Community in the Nation Hospitals Physician Practices Post Acute Facilities & Agencies • The ‘Hub’:Over 1,500 Hospitals including 40% of “America’s Best Hospitals” as Clients • The ‘Spokes’:Over 180,000 MDs and 10,000 Post Acute Care Organizations are Connected to other Pract
Slide 12: One Platform: A Complete, Integrated Solutions Portfolio
One Platform:A Complete, Integrated Solutions Portfolio Clinical Financial Administrative Analytics Services Electronic Health Record CQS Management Consulting Payerpath Analytics Academy Education ePrescribe Ready Practice Management Clinical Manager Patient Financials Access Management EPSi Outsou
Slide 13: One Patient: Critical Patient Data Flows Freely
One Patient:Critical Patient Data Flows Freely Ambulatory Solutions Labs Prescriptions Patient Records X-Rays Acute Solutions Post Acute (Sunrise) Solutions Orders Referrals Results A Connected Community of Health | Copyright © 2010 Allscripts Healthcare Solutions, Inc. 13
Slide 14: Proven Management Team
Proven Management Team Executive Position Experience Glen Tullman CEO 30+ Yrs Phil Pead Chairman 30+ Yrs Lee Shapiro President 30+ Yrs Eileen McPartland COO 25+ Yrs Bill Davis CFO 19+ Yrs Steve Lalonde SVP Sales 20+ Yrs Laurie McGraw Chief Client Officer 20+ Yrs President, Product Strategy & John Go
Slide 15: Financial Highlights
Financial Highlights • Third quarter 2010 non-GAAP revenue of $329MM, up 12% • Consolidated third quarter 2010 bookings of $216MM Significant Growth • Third quarter 2010 non-GAAP net income of $37MM, up 21% • ARRA stimulus program creates long-tailed demand curve • Backlog of $2.6BB on 9/30/2010 • H
Slide 16: Historical Consolidated Performance
Historical Consolidated Performance Non-GAAP Non-GAAP Revenue Revenue CY CY 2009: $1,188MM 2009: $1,188MM Combined Combined Non-GAAP Non-GAAP Net Net Income Income ($millions) ($millions) $128 Allscripts Eclipsys $150 $106 56% 44% $120 $128 $90 $106 $60 $94 $109 Non-GAAP Non-GAAP Revenue Revenue $30
Slide 17: Significant Key Cost Synergies
Significant Key Cost Synergies Key Cost Projected Cost Synergies Over Three Years Synergy Drivers ~$40MM • Duplicate management structure ~$35MM • Duplicate public company ~$25MM costs • Duplicate backend office and system integration • Marketing CY2011 CY2012 CY2013 & Beyond A Connected Community o
Slide 18: Revenue Synergy Opportunity of $1.25BB
Revenue Synergy Opportunity of $1.25BB ECLIPSYS ALLSCRIPTS Sell Eclipsys Sell Allscripts Solutions to Allscripts Solutions to Eclipsys Acute Care Base Acute Care Base Sunrise Clinical Manager, Care Management, Emergency Patient Flow, EPSi Department, Homecare, Ambulatory Solutions Incremental Revenu
Slide 19: Non-GAAP Financial Outlook
Non-GAAP Financial Outlook (1) ($ in millions; except per share amounts) 2010 to 2011 Q4 2010 CY 2010 CY 2011 Change Non-GAAP $332 - $337 $1,425 -$1,450 $1,295 -$1,300 10 - 12% Revenue Non-GAAP Operating 19% 19% 21% -- Margin Non-GAAP $34 - $36 $142 - $144 $167 - $176 18 - 24% Net Income Non-GAAP 16
Slide 20: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Actual • Reduced debt by Capitalization 9/30/2010 $40MM since merger Cash and Marketable Securities $120 closed Revolver ($250mm) 60 Term Loan 470 • Required principal Total Debt $530 payments over next 12 months total Equity 1,369 $23.5MM Total Capitalization $1,899
Slide 21: One Network. One Platform. One Patient.
One Network. One Platform. One Patient. 9 Allscripts
Slide 22: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP revenue and net income reconciliation for the three months ended September 30, 2010 and three months ended August 31, 2009 (Allscripts) and September 30, 2009 (Eclipsys). Three Months Ended Three Months Ended 9/30/10 8/31/09 9/30/09 Q3 2009 Addition
Slide 23: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP revenue and net income reconciliation for the nine months ended September 30, 2010. Allscripts Healthcare Solutions, Inc. Non-GAAP Financial Information - 2010 Financial Information (In millions, except per-share amounts) (unaudited) 2010 Actual Res
Slide 24: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the nine months ended August 31, 2009 (Allscripts) and September 30, 2009 (Eclipsys). Allscripts Healthcare Solutions, Inc. Non-GAAP Financial Information - 2009 Financial Information (In millions, except per-share amou
Slide 25: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP– non-GAAPrevenuereconciliation for thetwelvemonthsendedNovember30, 2009 (Allscripts)and twelve months ended December 31, 2009 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Twelve Months Ended November 30, 2009 December 31, 2009 Total revenue, as reported
Slide 26: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the twelve months ended November 30, 2008 (Allscripts) and twelve months ended December 31, 2008 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Twelve Months Ended November 30, 2008 December 31, 2008 Net income, as r
Slide 27: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP –non-GAAP net income reconciliation for the twelve months ended November 30, 2009 (Allscripts) and twelve months ended December 31, 2009 (Eclipsys). Non-GAAP Allscripts Eclipsys Combined Twelve Months Ended November 30, 2009 December 31, 2009 Net income, as r
Slide 28: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation • GAAP– non-GAAPEBITDA reconciliationfor the12 monthsendedSeptember30, 2010. Allscripts Eclipsys Allscripts LTM 9 mths ended 9 mths ended 3 mths ended EBITDA 5/31/2010 6/31/2010 9/30/2010 8/31/2010 Net income, as reported $49,938 $10,858 $1,373 $62,169 Income tax ex
Slide 29: Footnotes Regarding Financial Guidance
Footnotes Regarding Financial Guidance Allscripts non-GAAP guidance for the fourth quarter of calendar 2010 assumes the following adjustments to approximately $314.0 million in GAAP revenue: an add-back of approximately $21.0 million pretax, in deferred revenue adjustments. Non-GAAP guidance for the
Slide 30: 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 total non-GAAP revenue, gross profit, operating income and net income, i
Allscripts Healthcare Solutions — Investor Presentation (November 2010) on 6ix