Q4 2020 Cerner Corp Earnings Call
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Welcome to Cerner Corporation fourth quarter 2019 conference call.
Today's date is February 10, 2021, and this call is being recorded.
Company has asked me to remind you that every two months made here today constitute forward looking statements, including without limitation those sure.
Projections of future revenues or earnings operating margins.
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Capital allocation plans cost optimization and upgrade share that it grew a bit can you share these future defense outlook.
The expected benefits from our applications.
SB juice or other investments I collaborations.
The expected impact of the COVID-19 pandemic.
Actual results may differ materially from those indicated.
Looking statements.
Heath on this earnings release, which was furnished to the S E T per day.
Posted to the investors section of Cerner com and other filings with the S. E. T for information concerning factors that could cause actual results could differ materially from those EBITDA Forwardlooking statements next debt to which the COVID-19 pandemic and measures taken in response to.
Could materially adversely affect our financial condition.
Bookings and results of operations will depend on future developments, which are highly uncertain and difficult to predict.
A reconciliation of non G. A a P financial measures discussed in this earnings call can also be found in the company on each one of these.
<unk> assumes no obligation to update any forward looking statements or information, except as required by law.
At this time I'd like to turn the call over to Brent Shafer, Chairman and CEO of Cerner Corporation.
Well, thanks, very much and good afternoon, everyone I'd like to start with a few comments on our fourth quarter and full year performance.
And then I'll hand, it over to CFO Marc Naughton.
New Chief client and services officer travelers Daltons, and then our president Don Trigg for some more marketplace commentary.
For 2020 was a remarkable year for all of us and given the circumstances Cerner delivered solid results by executing on our plans and really focusing on supporting our clients.
The pandemic challenge Cerner and our clients on several fronts and we continue to be extremely proud to support clients, who are battling COVID-19 on the front lines each and every day and we're very pleased with the way our associates seamlessly transitioned to remote work environment last March and I've really remain productive and focused on.
Client success throughout this whole period.
I'm also proud that Cerner recently began hosting a series of mass vaccination events at our World headquarters. This is done through a collaboration with North Kansas City Hospital Liberty Hospital quite County, Public Health Center and cities within quite County. This initiative called operation Safe is being staffed by volunteers from Cerner.
North Kansas City Hospital, and several partners in the community.
And together, we've vaccinated nearly 5000 people through one week and we have additional events planned in the weeks ahead.
Having said that Cerner cerner strongest assets is how mission driven our people are and the willingness of our associates to rise to the challenge of this pandemic has really presented.
A strong demonstration of that commitment on our part it throughout the whole year.
In addition to supporting our clients and communities, we continued to advance our growth strategies and make operational improvements as part of centers ongoing transformation in 2020.
As COVID-19 accelerated healthcare macro trends. It also validated our growth initiatives, including the creation and expansion of health networks are real time health system capabilities and consumer facing health strategies.
Cerner is providing data driven insights that can improve our clients clinical operational and financial outcomes.
Our recent investment in <unk> Health research and agreement to acquire Cantor Health are examples of how we're deploying capital to advance Cerner gross strategies and Don will provide more detail about these invest how these investments accelerate cerner has presence in life Sciences and create a strong foundation for our data as a service business.
We also continue toward our transformation goals service transformation has been focused on simplifying the business, creating operational efficiencies and delivering profitable growth.
And we're nearing $300 million in annualized cost reductions since the beginning of our transformation efforts about two years ago.
And we believe those efficiencies and a resilient business model really helped mitigate the impact of Covid on our business.
As part of our portfolio management process, we simplified our product set to go from offering more than 25000 features to really fewer than 400 products and we also divested Rev works outsourcing business and some non core global assets.
Importantly, our work to deliver seamless care for 18 million service members and veterans remains on track.
And for the first time in history, the U S Department of defense.
Department of Veterans Affairs, and the U S Coast guard or using the same electric electronic health record.
And the number of patients and our joint Health information exchange grew from 700000 to $4 million since April of last year.
Finally, we supported the evolution and transformation of our business by adding proven leaders, who are already bringing new perspective.
Our Chief Technology Officer, Jerome Labatt joined Us in June, bringing more than 30 years of CTO and product development experience at Fortune 500, leading global Tech companies like Hewlett Packard Enterprise Intuit and Oracle.
In September Chief strategy Officer will minutes came to Cerner after working with leading health care and technology businesses, including Aetna and Blue Cross Blue Shield.
You, probably know chief client and services officer, Trevor adult and from his leadership in our federal business.
And we're excited to have Travis now, bringing that same leadership to our global client base.
While retaining oversight of our.
Critically important federal work.
Mark <unk> is our most recent appointment and will replace longtime Cerner CFO Marc Naughton on February 20 <unk>.
Mark is a high energy leader, who will bring more than 25 years of financial leadership experience, including driving transformation across complex global operations, and leveraging balance sheets to drive growth and shareholder value.
In addition to those leaders were also honored to have major general elder Granger joined the Cerner Board of directors in November.
Dr Granger as a proven leader with experience isn't clinical military and business environments.
And before I close I'd like to acknowledge this is our last earnings call with CFO Marc Naughton.
Who after nearly 30 years of service at 101 earnings calls will be leaving Cerner at the end of the first quarter.
I know many of you share my appreciation for Mark and wish him. The best of luck in his future endeavors and Mark I just have to say I cannot imagine anything more fun than a 101 earnings calls.
In summary, I'm very pleased with what we accomplished in 2020, we delivered toward our revised.
Excuse me expectations, while driving.
Driving a significant amount.