UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 3, 2005
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 000-32085 | 36-4392754 | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
222 Merchandise Mart Plaza, Suite 2024, Chicago, Illinois 60654
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (312) 506-1200
2401 Commerce Drive, Libertyville, Illinois 60048
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01. | Regulation FD Disclosure. |
Attached as Exhibit 99 hereto is an investor presentation dated March 2005, which is incorporated herein by reference.
This information is being furnished pursuant to Item 9 of this Report and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and will not be incorporated by reference into any registration statement filed by Allscripts Healthcare Solutions, Inc. under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference. This Report will not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD.
Please refer to page 2 of Exhibit 99 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.
| ITEM 9.01. | Financial Statements, Pro Forma Financial Information and Exhibits. |
| (c) | Exhibits: |
| 99 | Investor Presentation dated March 2005 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. | ||||||||
| Date: March 4, 2005 | By: | /s/ WILLIAM J. DAVIS | ||||||
| William J. Davis | ||||||||
| Chief Financial Officer | ||||||||
ALLSCRIPTS ™
Inform. Connect. Transform.
Safe Harbor
This presentation may contain forward-looking statements about Allscripts Healthcare Solutions that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts’ beliefs and assumptions. Forward-looking statements do not guarantee future performance. Because Allscripts cannot predict all of the risks and uncertainties that may affect it, or control the ones it does predict, Allscripts’ actual results may be materially different from the results expressed in its forward-looking statements. For a more complete discussion of the risks, uncertainties and assumptions that may affect Allscripts, see the Company’s 2003 Annual Report on Form 10-K, available at www.sec.gov.
What We Do & Who We Are . . .
We Provide
Clinical Software, Connectivity & Information Solutions To Physicians 340 Employees Public (Nasdaq: MDRX) Financial Strength
- $ 128+ Million in Cash Reserves
- $ 100+ Million in 2004 Revenue
- Diversified/Multiple Revenue Streams
- The Leader in High Growth Markets
Culture
- Fast Moving, Client-Focused and Innovative
Our Vision
To Become an Indispensable Part of the Way Physicians Practice Medicine
Why?
Physicians Control 80% of a $1.6 Trillion Annual Spend
Our Solutions
Clinical Solutions Group
TouchWorks™
TouchChart™
TouchScript™
Impact.MD®
Physicians Interactive Group
Physicians Interactive™
Patients Interactive™
iHealth
Medication Services Group
Allscripts Direct
Clinical Solutions:
EHR Market Opportunity
$5 Billion Market
The Market Has “Tipped”
< 25% Penetration of Mid to Large Size Groups
50% of Groups Purchasing in Next 18 Months*
Average deal size was approximately $500,000 in 2004
Pipeline continues to grow. We also expect average deal size to grow and include individual deals in $3 to $5 million range over the next 12 to 18 mo.
What Changed?
Tools & Technology Are Better, Less Expensive
Physician’s Willingness To Adopt Technology
Political, Payors, PBM, Patient Trends
Results (Proven, Measurable ROI)
Market has Crossed the Chasm
•source: PricewatershouseCoopers Study
Clinical Solutions:
Allscripts EHR – Competitive Advantages
Physician-Centric Approach
IDX Alliance: Preferred Access to 70% of Large Groups
Modular Approach Drives Rapid Adoption and ROI
Independent, Documented Return-On-Investment
Strong Reference Sites
Partners Play A Key Role In Our Solution and Connections
Organizing & Leading the Ambulatory Market
Clinical Solutions:
Allscripts EHR - Results
Sales Growth In Excess of 52%
Client Satisfaction: 96% Would Recommend TouchWorks
Ranked #1 in KLAS, the “Consumer Reports’ of Healthcare, for Ambulatory EHR
Ranked #1 at TEPR Competition
Microsoft HUG Awards
CUMC Saves $1,000,000 in First Year of TouchWorks Use
Clinical Solutions:
Allscripts EHR - Results
$2.7 MM
$4.0 MM
$1.5 MM
$1.8 MM
$2.4 MM
$1.0 MM
$2.0 MM
$1.6 MM
$1.3 MM
$1.0 MM
$1.0 MM
Over 300 Deals Worth $53 Million in 2004
Clinical Solutions:
Allscripts EHR – Results
$2.7 MM
$1.5 MM
$1.8 MM
$2.4 MM
$4.0 MM
$1.0 MM
$2.0 MM
$1.6 MM
$1.3 MM
$1.0 MM
$1.0 MM
Over 300 Deals Worth $53 Million in 2004
Clinical Solutions:
e-Prescribing Market Opportunity
3 Billion Prescriptions/Year Written on Paper in the US
Less than 16 million prescriptions written electronically today. AHS processing approximately 50%
Significant Backing from Payors
Federal government
Managed care
Impact Proven and Understood
Increased use of generics, formulary compliance
Improvement on patient safety, IOM Study
Entry point to broader opportunity
Upgrade to Full Suite: TouchWorks & Impact.EMR
Access to recurring transactions (approx. $1.5 million in 2004)
Clinical Solutions:
TouchScript™ eRx - Overview
Most widely used e-Rx solution
#1 Volume of Rx’s to RxHub
.NET version, targeted at Independent Physician Market, recently launched with Microsoft, HP, Cisco, Capgemini
Selected for Wellpoint and ConnectiCare Physician Automation Programs
Expect significant involvement by other large Payors (including a majority of the nation’s Blue Cross Blue Shield organizations) over the next 12 to 18 months
Physicians Interactive:
Opportunity
The Opportunity
Pharma Industry Marketing Spend = $15 Billion/Year
Current Market for Online Product Education ~$250mm
The Pharma Challenge
Goal = Educate/Influence ~ 200,000 HVP’s
Challenge = HVP’s Crunched For Time
43% of Pharma Detail Calls End at Receptionist
50% of Detail Calls Last < 2 Minutes
Physicians Interactive:
- Results
Pioneer/Leading Provider of e-Detailing and Other Online Solutions
Blue Chip Client Base
39 Pharmaceutical, Biotech & Medical Device Companies
8 of Top 10 Pharmaceutical Companies
More Programs Delivered
400 Programs for 100 Brands
59 International Programs in 8 Countries
Significant Footprint with Physicians
60,000 Unique Physician Participants in U.S.
> 250,000 Educational Sessions Completed
Medication Services:
Results
Legacy Business
Continued Increases In Gross Margin
Strength in Occupational Health Centers
Strength in Employers On-Site Delivery
Financial Overview:
AHS Revenue Growth Expected to Continue
$120 $100 $80 $60 $40 $20 $0
2001 2002 2003 2004 2005 E
Growth Segments
Medication Distribution Segment
Financial Overview:
Translating into Positive EPS Growth
$0.30
-$0.40
$0.22 - $0.24
2002 2003 2004 2005 E
Financial Overview:
Backlog as of December 31, 2004 (in millions)
$67.1 Million
$70 $60 $50 $40 $30 $20 $10 $0
$10.6 $10.4 $35.5
TW Maintainance/ Support
PI
TW/TS Subscriptions
TW/AIC License/Implementation Fees
Financial Overview:
Financial Position as of December 31, 2004 (in millions)
Cash & Marketable Securities $128.2
Accounts Receivable, Net 21.4
Other Assets 44.6
Total Assets $194.2
Accounts Payable & Accrued Liabilities $18.2
Deferred Revenue 14.6
Convertible Debt 82.5
Other Liabilities 0.2
Total Liabilities 115.5
Stockholder’s Equity 78.7
Total Liabilities & Stockholder’s Equity $194.2
Summary
Physician-Centric
Competitive Advantage In Key Markets
Leadership Position in All Businesses
Strong Sales Momentum in Growing Markets
Strong Financial Position
People
Bottom Line
Well Positioned for Growth and Sustained Profitability
Allscripts Healthcare Solutions