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Form 8-K

 

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) October 31, 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 (800) 654-0889.

 

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 Exhibit 99.1 hereto is an Investor Presentation dated October 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.

 

(d) Exhibits:

 

99.1   

Investor Presentation dated October 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: October 31, 2006       By:   /S/    WILLIAM J. DAVIS        
               

William J. Davis

Chief Financial Officer

                 

 

3

EXHIBIT INDEX

 

The following exhibits are filed herewith:

 

  Exhibit No.  
    
99.1  

Investor Presentation dated October 2006.

Press Release
1

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 Annual Report on
Form 10-K for the year ended December 31, 2005, available at
www.sec.gov.
2

900+ Employees
Financially Strong (Nasdaq: MDRX)
Established Leader in Ambulatory
Healthcare IT Market:
–
Electronic Health Records
–
Document Imaging
–
e-Prescribing
–
Practice Management
–
Connectivity Products
Three Business Groups
–
Clinical Solutions Group
–
Physicians Interactive Group
–
Medication Solutions Group
About Allscripts
The Leading Provider of
Clinical Software, Connectivity
& Information Solutions to
Physicians
3

A Different Approach
Traditional View
Healthcare Revolves Around
the Hospital
Our View
Healthcare Revolves Around the
Physician
4

Ambulatory EHR market is ~$5+ billion opportunity
~ 550,000 U.S. Physicians
X   76% EHR market opportunity
X ~$12,500 initial investment per physician
= ~$5 billion opportunity
Practice management solutions provide complementary product
offering with significant incremental market opportunity
–
~10% to 20% of PM market being replaced each year
–
PM market ~ $1 to $2 billion per year
The EHR Market
5

Our Solutions: World-Class Industry-Leading Technologies
Our Ability To Deliver Results: Rapid Deployment & ROI
Our Footprint: Significant Installed Base / Strong Reference Sites
Our Partners: Strong Partnerships and Strategic Alliances
Our People: Experienced Employees Who Care
Hard To Replicate Competitive Strengths
6

Becoming Indispensable for Physicians
7

•
Not Used
Costs and Waste Represent
the Problem and the Opportunity
•
Best Software
•
Best Information
•
Best Pharmaceuticals
•
Best Healthcare
•
Best Physicians
•
Not Available
•
Buried With Paperwork
•
Can’t Afford
•
Not Available to 40MM
The Paradox of Healthcare
8

2004
2014
16%
22%
$1.8
$3.5
The U.S. is No.1 in the world in healthcare expenditures,
but no better than 16   in medical outcomes.
($ in Trillions)
(% of GDP)
U.S. Healthcare Costs
Higher Costs and Lower Quality
9
th

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
10

Allscripts: The EHR of Choice
Academic
Medical Groups
Specialty
Groups
Multi-Specialty
Groups
Integrated
Delivery Networks
Over 3,000 Leading Clinics Nationwide
11

Large Physician
Practices (>25)
Segment
EHR
Practice
Management
Mid-size Physician
Practices (10-24)
Independent & Small
Physician Practices (<10)
Specialty Groups
Profitable Leadership In Each Segment
Leadership Across the Market
12

Large Physician
Practices (>25)
Segment
EHR
Practice
Management
Mid-Sized Physician
Practices (10-24)
Independent & Small
Physician Practices (<10)
Specialty Groups
Profitable Leadership In Each Segment
13
Primary
Competitors
Variety of
Small Players
Leadership Across the Market

Key Takeaways
1.
The
time
is
now
2.
Our
physician
focus
is
key
to
transforming
healthcare
3.
We
are
a
leader
in
the
core
growth
markets
in
which
we
compete
4.
Competitive
advantage:
driving
utilization
and
results
We’re just getting started!
14

Financial Overview
15

$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
$240
$260
$280
$300
$320
2004
2005
2006(E)
2007(E)
$100.8
$120.6
$225.0
$300.0
Pre-packaged
Medications
Information Services
Clinical Software and
Related Services
*
Growth
segments
include
Clinical
Software
and
Related
Services
and
Information Services
Growth Segments
($ in Millions)
16

$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
$240
2004
2005
2006(E)
2007(E)
Solid Bookings Growth
Information Services
Clinical Software and
Related Services
$65.9
$89.5
$170.0
$240.0
($ in Millions)
17

$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$174.0 Million
Diversified Backlog Provides Stability
$87.4
$87.4
$26.6
$26.6
$15.7
$15.7
$44.3
$44.3
($ in Millions)
As of 9/30/06
Clinical Software
Maintenance Support
Information Services
Clinical Software Subscriptions
Clinical Software License/
Implementation Fees
18

19
Accelerated Growth Continues in 2007
($ in Millions, except per share)
2005
2006 (E)
2007 (E)
Revenues:
Software & Related Services
$65.2
$170.0
$240.0
Prepackaged Medications
45.6
44.0
44.0
Information Services
9.8
11.0
16.0
Total Revenues
$120.6
$225.0
$300.0
Gross Profit
54.9
115.0
159.0
Gross Profit %
45.5%
51.1%
53.0%
Income from Operations
9.2
19.0
41.0
Net Income
$6.0
$11.3
$25.0
Weighted Average Shares Outstanding (Diluted)
43.1
54.0
64.0
Earnings per Share (Diluted)
$0.14
(1)
$0.21 to $0.22
$0.42 to $0.44
(1)   2005 has been adjusted for income taxes to provide for comparability:
$9.7 MM Net Income, or $0.23 per diluted share, as reported less 38% taxes ($3.7 MM) = $6.0 MM, or $0.14 per diluted share

Impact of Convertible Debt
(for illustrative purposes only)
($ in Millions, except per share)
Non-Converted
Converted
Non-Converted
Converted
GAAP Net Income
$11.3
$11.3
$25.0
$25.0
Adjustments:
  Add Back Interest Expense
3.5
3.5
  Tax Effect of Interest Add-back @ 38%
(1.3)
(1.3)
Adjusted GAAP Net Income
$11.3
$13.5
$25.0
$27.2
Diluted Shares Outstanding
54.0
54.0
56.7
56.7
  Add: Convertible Debt Shares
7.3
7.3
Adjusted Diluted Shares
54.0
61.3
56.7
64.0
GAAP Earnings Per Share
$0.21
$0.22
$0.44
$0.43
Convertible Debt
Convertible Debt
Anti-dilutive
Dilutive in 2007
in 2006
2007
2006
20

2007 Earnings Metrics Cash Earnings
($ in Millions, except per share)
21
2005
2006 (E)
2007 (E)
GAAP Net Income
$9.7
$11.3
$25.0
Depreciation and Amortization
6.5
16.5
17.5
Income Taxes
0.0
7.0
16.0
Stock-Based Compensation
0.6
2.5
6.4
A4 One-Time Deal-Related Cost
0.0
1.0
0.0
Cash Earnings
16.8
38.3
64.9
Weighted Average Shares Outstanding (Diluted)
43.1
54.0
64.0
GAAP Earnings Per Share (Diluted)
$0.23
$0.21 to $0.22
$0.42 to $0.44
Cash Earnings Per Share (Diluted)
$0.39
$0.71 to $0.72
$1.04 to $1.06

2007 Earnings Metrics Adjusted Earnings
($ in Millions, except per share)
22
2005
2006 (E)
2007 (E)
GAAP Net Income
$9.7
$11.3
$25.0
Income Tax Provision @ 38%
($3.7)
$0.0
$0.0
Acquisition-Related Amortization, net of taxes @ 38%
$1.1
$6.4
$6.4
Stock-Based Compensation, net of taxes @ 38%
$0.4
$1.6
$4.0
Adjusted Earnings
$7.5
$19.3
$35.4
Weighted Average Shares Outstanding (Diluted)
43.1
54.0
64.0
GAAP Earnings Per Share (Diluted)
$0.23
$0.21 to $0.22
$0.42 to $0.44
Adjusted Earnings Per Share (Diluted)
$0.17
$0.35 to $0.36
$0.58 to $0.60

Cash & Marketable Securities
Accounts Receivable, Net
Other Assets
Total Assets
Accounts Payable & Accrued Liabilities
Deferred Revenue
Other Liabilities
Total Liabilities
Stockholders’
Equity
Financial Strength
($ in Millions)
$146.1
29.2
45.7
$221.0
$22.4
17.3
82.5
0.4
$122.6
98.4
$221.0
As of 12/31/05
23
As of 9/30/06
71.5
57.4
336.8
$465.7
$39.7
33.7
85.5
0.6
$159.5
306.2
$465.7
Cash & Marketable Securities
Accounts Receivable, Net
Other Assets
Total Assets
Accounts Payable & Accrued Liabilities
Deferred Revenue
Long Term Debt
Other Liabilities
Total Liabilities
Stockholders’
Equity
Total
Liabilities
&
Stockholders’
Equity

Summary
World-Class
Technologies
World-Class
Technologies
Return On
Investment
Return On
Investment
Our People
Our People
Proven
Track Record
Proven
Track Record
Strong
Partnerships
Strong
Partnerships
Leading
Provider of
Clinical
Solutions
Leading
Provider of
Clinical
Solutions
Physician-centric
Physician-centric
Well-positioned
for Growth and
Sustained
Profitability
24

25