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) February 13, 2006
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, Suite 2024
Chicago, IL 60654
Registrant’s telephone number, including area code (312) 506-1200.
N/A
(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 Exhibits 99.1 hereto is an Investor Presentation dated February 2006, 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 99.1 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: |
| 99.1 | Investor Presentation dated February 2006. | |
2
SIGNATURES
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, thereunto duly authorized.
| ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. | ||||||||
| Date: February 13, 2006 | By: | /S/ WILLIAM J. DAVIS | ||||||
| William J. Davis Chief Financial Officer | ||||||||
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EXHIBIT INDEX
The following exhibits are filed herewith:
| Exhibit No. |
||
| 99.1 | Investor Presentation dated February 2006. | |
 Exhibit 99.1 |
 Page 2 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 2004 Annual Report on Form 10-K, available at www.sec.gov. Safe Harbor |
 Page 3 We Provide Clinical Software, Connectivity & Information Solutions To Physicians 386 Employees Public (Nasdaq: MDRX) Financial Strength - $145+ Million in Cash Reserves - $120+ Million in 2005 Revenue - Diversified/Multiple Revenue Streams - The Leader in High Growth Markets Culture - Fast Moving, Client-Focused and Innovative What We Do & Who We Are . . . |
 Page 4 Our Vision Why? Physicians Control 80% of a $1.7 Trillion Annual Spend To Become an Indispensable Part of the Way Physicians Practice Medicine |
 Page 5 How To Become Indispensable for Physicians? …By Delivering Solutions That Inform, Connect and Transform Healthcare |
 Page 6 A Different Perspective… Traditional View Our View Healthcare Revolves Around the Physician |
 Page 7 Delivering Value Through Our Solutions E-Detailing Medication Dispensing Document Imaging E-Prescribing Electronic Health Record Personal Health Record Adherence/ Compliance |
 Page 8 What Our Products Actually Do . . . Reach 20,000 MDs with Drug Recall Information The Ability to Educate 10,000 MDs by Tomorrow Morning Decisions Based on Real-Time Evidence-Based Data Health vs. Healthcare With Physician Directed Information Inform-Connect-Transform Making the Impossible Possible |
 Page 9 An EMR Informs You |
 Page 10 An EHR Connects You |
 Page 11 The Opportunity EHR Market Electronic Health Record Market $6 Billion Market Tools & Technology are Better, Less Expensive Physicians Willingness to Adopt Technology Proven, Measurable ROI |
 Page 12 The Allscripts Advantage EHR Market Blue-Chip Client Base Modular Approach Proven Process for Rapid Implementation Leadership in National Initiatives Top Rated in Every Industry Evaluation With IDX Partnership, Preferred Access to 70% of Large Groups |
 Page 13 Market Share EHR Market - Segmentation Market Segment > 25 Physicians 10 to 24 Physicians < 10 Physicians Specialties Status Leader Competitive Evolving – A4 Acquisition Leader 12 Month Management Objective: Profitable Leadership In Each
Segment (Buy, Build or Partner) |
 Page 14 Over 1,500 Leading Clinics Across the U.S. Market Share EHR Market - Client Base |
 Page 15 Market Share EHR Market - Client Base Academic Medical Groups Specialty Groups Multi-Specialty Groups Integrated Delivery Networks Over 1,500 Leading Clinics Across the U.S. |
 Page 16 If Doctors Don’t Use It Nothing Else Matters Utilization EHR Market IDDUINEM |
 Page 17 Delivering Results Generates Clinical Trial Revenue Holston Medical Group $3M/Yr. in Clinical Trial Revenue Delivers on Pay for Performance Facey Medical $1.2M P4P Payout from Blue Cross Produces
e-Prescribing Savings Sierra Health $5M in Savings via eRx Reduces Resources in Medical Records George Washington Univ. Medical Faculty associates Reduction of 20 FTEs in Medical Records Reduces/Eliminates Transcription Central Utah Clinic $1M in Savings in Year 1 ($20K/MD) Enhances Documentation University of Tennessee Medical Group Avg. Gross Charges Increases by > $30/Patient Visit |
 Page 18 Leadership |
 Page 19 We “Wrote the Book” Leadership |
 Page 20 The Opportunity Physicians Interactive MD/Patient Education Market Pharma Industry Marketing Spend = $15 Billion/Year Current Market for Online Product Education ~$250mm 43% of Pharma Detail Calls End at Receptionist 50% of Detail Calls Last < 2 Minutes |
 Page 21 The Allscripts Advantage Physicians Interactive Blue-Chip Client Base Portfolio of Solutions Leadership in Adherence/ Compliance Proven Return-On-Investment |
 Page 22 Market Share Physicians Interactive Blue-Chip Client Base 49 Pharmaceutical, Biotech & Medical Device Companies 8 of Top 10 Pharmaceutical Companies More Programs Delivered 400 Programs for 100 Brands 63 International Programs in 11 Countries Significant Traction with Physicians 86,000 Unique Physician Participants in U.S. > 300,000 Educational Sessions Completed |
 Page 23 Key Takeaways 1. The Time is Now 2. Our Physician Focus = Key to Transforming Healthcare 3. We are the Leader in Growth Markets We Compete In 4. Competitive Advantage = Driving Utilization and Results We’re Just Getting Started |
 Page 24 $145.0 $120.6 $100.8 $85.8 $78.8 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 2002 2003 2004 2005 2006 (E) Clinical Software and Physicians Interactive Medication Distribution Financial Overview: Historical/Forecast Revenue (in millions)
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 Page 25 ($0.40) $0.07 $0.24 ($0.13) 2002 2003 2004 2005* 2006 (E)* Financial Overview: Historical/Forecast EPS $0.45 - $0.47 * Excludes stock-based compensation $0.50 ($0.50) |
 Page 26 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2002 2003 2004 2005 2006 (E) PI CSG Financial Overview: Bookings (in millions) $33.3 $43.1 $65.9 $89.5 $123.0 |
 Page 27 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 2002 2003 2004 2005 PI CSG Financial Overview: Backlog (in millions) $91.2 $67.1 $46.3 $35.0 |
 Page 28 $55.1 $8.5 $12.8 $14.8 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 CSG Maintenance/ Support PI CSG Subscriptions CSG License/ Implementation Fees Financial Overview: Backlog as of December 31,
2005 (in millions) $91.2 Million $91.2 Million |
 Page 29 Financial Overview: Financial Position as of December 31, 2005 (in millions) Cash & Marketable Securities $146.1 Accounts Receivable, Net 29.2 Other Assets 45.7 Total Assets $221.0 Accounts Payable & Accrued Liabilities 22.5 Deferred Revenue 17.3 Convertible Debt 82.5 Other Liabilities 0.3 Total Liabilities $122.6 Stockholders' Equity 98.4 Total Liabilities & Stockholders' Equity $221.0 |
 Page 30 A4 Acquisition Cost: ~ $275 million; $215 million in cash and 3.5 million shares of common stock
A4 generated revenue in excess of $75 million and EBITDA of approximately $15.5
million in 2005 Product offering Ambulatory care HealthMatics EHR (EHR for small to mid-sized physician practices) HealthMatics Ntierprise (practice management system for small to mid-sized physician practices) Acute care HealthMatics ED and EmSTAT (emergency department information systems) Canopy (web-based software solution for hospitials that streamlines the patient care management process) Customer base 1,600 physician practices, or ~ 7,000 physicians Close subject to conditions |
 Page 31 Well Positioned for Growth and Sustained Profitability Summary Continued Increase In Gross Margin Strong Financial Position Leadership Position in All Businesses Strong Sales Momentum in Growing Markets Competitive Advantage in All Markets People Physician-Centric |
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