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) November 13, 2007

 


 

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 1-866-358-6869

 

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 November 2007, 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 November 2007

 

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: November 13, 2007       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 November 2007.

Investor Presentation dated November 2007
1
©
2007 Allscripts, LLC
Allscripts Investor
Presentation
November, 2007
Exhibit 99.1


2
©
2007 Allscripts, LLC
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,
2006,
available
at
www.sec.gov.


3
©
2007 Allscripts, LLC
Our Mission
To be the Leading Provider
of Clinical Software,
Connectivity & Information
Solutions to Physicians


4
©
2007 Allscripts, LLC
4
About Allscripts
1,060+ Employees & Growing
Solid Financials (Nasdaq: MDRX)
Established Leader in Healthcare IT Market
Electronic Health Records
Practice Management
e-Prescribing
Document Imaging
Personal Health Records
Connectivity Solutions
Emergency Department Information System
Case Management


5
©
2007 Allscripts, LLC
Where We Are . . .
Our Healthcare Scorecard
$2.2 Trillion
Spent in Healthcare
$700 Billion
in Waste
98,000 Deaths
from Medical Errors
7,000 Deaths
from Medication Errors


6
©
2007 Allscripts, LLC
Our View
Healthcare Revolves Around
the Physician
Why Physicians?
Traditional View
Healthcare Revolves Around
the Hospital


7
©
2007 Allscripts, LLC
The Status Quo: Cost & Risks


8
©
2007 Allscripts, LLC
What Will It Take to Get There?


9
©
2007 Allscripts, LLC
~ 550,000 U.S. Physicians
x          80% EHR Market Opportunity
x  ~$12,000 Initial Investment/Physician
= ~$5 Billion Opportunity
The Ambulatory Physician Market
Electronic Health Record (EHR) Market = ~ $5 Billion
Practice Management (PM) Market = ~ $1 Billion/Yr.
~10% to 20% of PM Systems Replaced/Yr.
Software Maintenance Agreement (SMA) = ~ $1 Billion/Yr.
Transactions = ~
$1 to 2 Billion/Yr.


10
Large Physician Practices
(25<200 MDs)
Segment
Mid-Sized Physician Practices
(10-24 MDs)
Small Physician Practices        
(3<10 MDs)
Leadership Across the Market
Enterprise                         
(>200 MDs)
Independent Physician Practices        
(1-2 MDs)
Primary Competitors
Variety of
Small Players
Variety of
Small Players
Misys, Sage,
Eclinical, GE
Quality Systems
Epic
TouchWorks™
TouchWorks™
HealthMatics™
eRx NOW™
HealthMatics™
Offering
HealthMatics™


11
©
2007 Allscripts, LLC
Our Footprint: Significant Installed Base / Strong Reference Sites
Our People: Experienced Employees Who Care
Our Solutions: World-Class Industry-Leading Technologies
Our Leadership:
Standards, National Initiatives, and Innovation
Our Partners: Strong Partnerships and Strategic Alliances
Our Ability To Deliver Results: Rapid Deployment and ROI
Why We Win…


12
©
2007 Allscripts, LLC
12
Academic Medical Center Clients
Electronic Health Record Clients
Hospitals and Acute Care Clients
Significant National Footprint
Allscripts Across the U.S.
30,000+ Physicians and 400 Hospitals             
Across the U.S.


13
©
2007 Allscripts, LLC
The EHR of Choice
Academic
Medical Groups
Specialty
Groups
Multi-Specialty
Groups
Integrated
Delivery Networks


14
©
2007 Allscripts, LLC
“If all we did was provide
excellent patient care to sick
patients who walked through
our doors, I am convinced we
would be out of business in
five years.”
-
Jerry Miller, MD
Chief Executive Officer
Holston Medical Group
Why Now? 


15
©
2007 Allscripts, LLC
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


16
©
2007 Allscripts, LLC
The Future…
Drivers in the Market
Role of the Federal Government
Standards/Certification
Consumerism
Content, Content, Content
Pay for Performance/Pay for Quality
Interoperability/Connect


17
©
2007 Allscripts, LLC
Shifting the Focus from a Silo…


18
©
2007 Allscripts, LLC
…to a Connected System


19
©
2007 Allscripts, LLC
Physician Office
Physician Office
The “Door In”
and the
“Door Out”
of the Hospital
Hospital
Hospital
Emergency
Department
(ED)
Emergency
Department
(ED)
Care
Management
Care
Management
“Door In”
“Door Out”
Connecting to the Hospital


20
©
2007 Allscripts, LLC
Leadership
"There are three ways
to handle change. You
can fight it and die;
accept it and survive;
or lead it and prosper."
-
Mike Leavitt
Secretary of HHS


21
©
2007 Allscripts, LLC
Leadership
Advancing Patient Safety
Dedicated to improving patient safety by providing
free
electronic prescribing for every physician in America
Introducing:
The National ePrescribing
Patient Safety Initiative
(NEPSI)
A Coalition of the Nation’s Most Prominent Technology Companies,
Healthcare Benefit And Medical Provider Organizations


22
NEPSI Coalition Sponsors
National Sponsors
Technology Sponsors
Connectivity Sponsors
Search Sponsor
Health Benefit Sponsors


23
©
2007 Allscripts, LLC
Regional Supporters


24
©
2007 Allscripts, LLC
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


25
©
2007 Allscripts, LLC
Financial Overview


26
©
2007 Allscripts, LLC
$0
$40
$80
$120
$160
$200
$240
$280
$320
2004
2005
2006
2007(E)
$100.8
$120.6
$228.0
$286.0 to $288.0
Pre-packaged
Medications
Information Services
Clinical Software and
Related Services
* Growth
segments
include
Clinical
Software
and
Related
Services
and
Information
Services
Growth Segments
($ in Millions)


27
©
2007 Allscripts, LLC
$53.3
$73.9
$164.4
$230.0
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
$240
$260
2004
2005
2006
2007(E)
Solid Clinical Software Bookings Growth
($ in Millions)


28
©
2007 Allscripts, LLC
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$246.7 Million
Diversified Backlog Provides Stability
$133.4
$133.4
$33.6
$33.6
$20.2
$20.2
$59.4
$59.4
As of 09/30/07
Clinical Software
Maintenance Support
Information Services
Clinical Software Subscriptions
Clinical Software License/
Implementation Fees
($ in Millions)


29
©
2007 Allscripts, LLC
($ in Millions, except per share amounts)
Sustained Profitability
2006
2007 (E)
2008 (E)
Revenues:
Software & Related Services
$173.5
$225.0 to $227.0
$281.0 to $293.0
Prepackaged Medications
43.7
45.0
44.0 to 45.0
Information Services
10.8
16.0
19.0 to 20.0
Total Revenues
$228.0
$286.0 to $288.0
$344.0 to $358.0
Gross Profit
$116.0
$146.4
$179.0 to $188.0
Gross Profit %
50.9%
51.0%
52.0% to 52.5%
Income from Operations
$19.9
$30.9
$47.0 to $51.0
Net Income
$11.9
$20.3
$30.0 to $32.5
Weighted Average Shares Outstanding (Diluted)
53.4
65.2
67.0
Earnings Per Share (Diluted)
$0.22
$0.34 to $0.35
$0.48 to $0.52


30
©
2007 Allscripts, LLC
Impact of Convertible Debt
($ in Millions, except per share)
Impact of Convertible Debt
(for illustrative purposes only)
2006
2007
Non-Converted
Converted
Non-Converted
Converted
GAAP Net Income
$11.9
$11.9
$20.3
$20.3
Adjustments:
Add Back Interest Expense
3.5
3.5
Tax Effect of Interest Add-back @ 40%
(1.4)
(1.4)
Adjusted GAAP Net Income
$11.9
$14.0
$20.3
$22.4
Diluted Shares Outstanding
53.4
53.4
57.9
57.9
Add:  Convertible Debt Shares
7.3
7.3
Adjusted Diluted Shares
53.4
60.7
57.9
65.2
GAAP Earnings Per Share
$0.22
$0.23
$0.35
$0.34
Convertible Debt
Convertible Debt
Anti-dilutive
Dilutive in 2007
in 2006


31
©
2007 Allscripts, LLC
2007 Non-GAAP Adjusted Earnings
($ in Millions, except per share)
2006
2007 (F)
2008 (F)
GAAP Net Income
$11.9
$20.3
$30.0 to $32.5
Acquisition Related Amortization, net of taxes @ 40%
6.4
6.4
6.4
Stock-Based Compensation, net of taxes @ 40%
1.4
3.0
6.0
Adjusted Earnings
$19.7
$29.7
$42.4 to $42.9
Weighted Average Shares Outstanding (Diluted)
53.4
65.2
67.0
GAAP Earnings Per Share (Diluted)
$0.22
$0.34 to $0.35
$0.48 to $0.52
Non-GAAP Adjusted Earnings Per Share (Diluted)
$0.37
$0.48 to $0.49
$0.66 to $0.70


32
©
2007 Allscripts, LLC
Cash & Marketable Securities
Accounts Receivable, Net
Other Assets
Total Assets
Accounts Payable & Accrued Liabilities
Deferred Revenue
Other Liabilities
Total Liabilities
Stockholders’
Equity
Total Liabilities & Stockholders’
Equity
Financial Strength
$83.0
55.6
339.0
$477.6
$35.8
35.5
85.4
4.7
$161.4
316.2
$477.6
As of 12/31/06
As of 09/30/07
$75.0
81.2
342.8
$499.0
$34.6
41.1
85.2
5.8
$166.7
332.3
$499.0
Cash & Marketable Securities
Accounts Receivable, Net
Other Assets
Total Assets
Accounts Payable & Accrued Liabilities
Deferred Revenue
Long-term Debt
Other Liabilities
Total Liabilities
Stockholders’
Equity
Total Liabilities & Stockholders’
Equity
($ in Millions)


33
©
2007 Allscripts, LLC
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


34
©
2007 Allscripts, LLC
Allscripts Healthcare
Solutions, Inc.