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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 26, 2008
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 February 2008, 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 February 2008 | |
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 26, 2008 | 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 February 2008. | |
 1 © 2007 Allscripts, LLC Allscripts Investor Presentation February, 2008 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 1,150+ 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 Expand Physician Base Create Transaction Model Drive Doc Utilization Connect Products Brand Power Be Indispensable To Physicians Be The Bloomberg Of Healthcare ePrescribing Business Data Business Our Vision |
    6 © 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 |
 7 © 2007 Allscripts, LLC Why Physicians? Traditional View Healthcare Revolves Around the Hospital Our View Healthcare Revolves Around the Physician |
 8 © 2007 Allscripts, LLC The Status Quo: Cost & Risks |
 9 © 2007 Allscripts, LLC What Will It Take to Get There? |
 10 © 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. |
  11 © 2007 Allscripts, LLC 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™ |
 12 © 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… |
 13 © 2007 Allscripts, LLC 13 Academic Medical Center Clients Electronic Health Record Clients Hospitals and Acute Care Clients Significant National Footprint Allscripts Across the U.S. 40,000+ Physicians and 700+
Hospitals Across the U.S. |
 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 ECIN Acquisition: Strategic Benefits Allscripts becomes THE dominant player in care management market 700 combined hospitals Access to new Post-Acute Care market More than 5,000 post-acute providers A new “door out” destination and a stronger continuity of care Attractive recurring ASP revenue model More opportunities to cross-sell complete portfolio Strong hospital client base creates new channel opportunity for other Allscripts products Strong hospital management 4 |
 20 © 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 |
 21 © 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 |
 22 © 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 |
 23 © 2007 Allscripts, LLC NEPSI Coalition Sponsors National Sponsors Technology Sponsors Connectivity Sponsors Search Sponsor Health Benefit Sponsors |
 24 © 2007 Allscripts, LLC Regional Supporters |
 25 © 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 |
 26 © 2007 Allscripts, LLC Financial Overview |
 27 © 2007 Allscripts, LLC $0 $40 $80 $120 $160 $200 $240 $280 $320 2004 2005 2006 2007 $100.8 $120.6 $228.0 $281.9 Pre-packaged Medications Information Services Clinical Software and Related Services * Growth segments include Clinical Software and Related Services and Information Services Growth Segments ($ in Millions) |
 28 © 2007 Allscripts, LLC $53.3 $73.9 $164.4 $193.3 $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 2004 2005 2006 2007 Solid Clinical Software Bookings Growth ($ in Millions) |
 29 © 2007 Allscripts, LLC $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275.5 Million Diversified Backlog Provides Stability $137.9 $137.9 $59.0 $59.0 $19.0 $19.0 $59.6 $59.6 As of 12/31/07 Clinical Software Maintenance Support Information Services Clinical Software Subscriptions Clinical Software License/ Implementation Fees ($ in Millions) |
 30 © 2007 Allscripts, LLC ($ in Millions, except per share amounts) Sustained Profitability (1) Gives effect to a full tax provision @ 39% effective tax rate. Actual reported results were $20.6 million of net income and $0.35 per diluted share. 2006 2007 2008 (E) Revenues: Software & Related Services $173.5 $222.7 $281.0 to $291.0 Prepackaged Medications 43.7 44.0 44.0 to 45.0 Information Services 10.8 15.3 13.0 to 16.0 Total Revenues $228.0 $281.9 $338.0 to $352.0 Gross Profit $116.0 $140.4 $176.0 to $187.0 Gross Profit % 51.0% 50.0% 52.0% to 53.0% Income from Operations $19.9 $28.1 $48.0 to $52.0 Net Income $11.9 $18.8 (1) $26.8 to $29.5 Weighted Average Shares Outstanding (Diluted) 53.4 64.7 66.5 Earnings Per Share (Diluted) $0.22 $0.32 (1) $0.44 to $0.48 |
 31 © 2007 Allscripts, LLC Non-GAAP Adjusted Earnings ($ in Millions, except per share) (1) Gives effect to a full tax provision @ 39% effective tax rate.
Actual reported results were $20.6 million of net income and $0.35 per
diluted share. 2006 2007 2008 (F) GAAP Net Income $11.9 $18.8 (1) $26.8 to $29.5 Acquisition Related Amortization, net of taxes @ 39% 6.4 6.5 8.5 Stock-Based Compensation, net of taxes @ 39% 1.4 2.6 6.0 Adjusted Earnings $19.7 $27.9 $41.3 to $44.0 Weighted Average Shares Outstanding (Diluted) 53.4 64.7 66.5 GAAP Earnings Per Share (Diluted) $0.22 $0.32 (1) $0.44 to $0.48 Non-GAAP Adjusted Earnings Per Share (Diluted) $0.37 $0.46 $0.65 to $0.69 |
 32 © 2007 Allscripts, LLC Financial Strength ($ in Millions) As of 12/31/06 As of 12/31/07 Cash & Marketable Securities $83.0 $63.0 Accounts Receivable, Net 55.6 81.4 Other Assets 72.7 92.0 Goodwill / Intangible Assets 266.3 335.6 Total Assets $477.6 $572.0 Accounts Payable & Accrued Liabilities $35.8 $38.6 Deferred Revenue 35.5 45.9 Long-term Debt 85.4 135.2 Other Liabilities 4.7 11.6 Total Liabilities $161.4 $231.3 Stockholders' Equity 316.3 340.7 Total Liabilities & Stockholders' Equity $477.6 $572.0 |
 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. |