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09/19/2022

Allscripts to Host Virtual Investor Day September 28th

CHICAGO–(BUSINESS WIRE)–Sep. 19, 2022–
Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) will host a virtual Investor Day on Wednesday, September 28, 2022 at 12:00 p.m. (Eastern). The event will include presentations made by members of the executive management team followed by a question-and-answer session. Participants may access the virtual conference by registering with our webcast registration or dial-in registration (for Q&A) links. Presentation slides will be posted on the day of the event, at approximately 11:30 a.m. (Eastern), to the Allscripts Investor Relations website under Investor Relations, Events & Presentations.

A live audio webcast will begin at approximately 12:00 p.m. (Eastern) and will be available for replay on Allscripts Investor Relations website under Investor Relations, Events & Presentations.

A replay of the call will be available approximately three hours after the conclusion of the call, for a period of six months, on the Allscripts investor relations website.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, LinkedIn, and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

Concetta.Rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

09/14/2022

Veradigm and Vytalize Health: Paving the Way for Primary Care Physicians to Improve Patient Outcomes

Value-based care is here to stay; the Veradigm Network is at the forefront of supporting healthcare providers to improve patient outcomes today and in the future

CHICAGO–(BUSINESS WIRE)–Sep. 14, 2022–
Veradigm®, a leading provider of healthcare data and technology solutions and a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX), and Vytalize Health, a new kind of Medicare ACO focused on helping primary care doctors manage their Medicare patients, announced today a new agreement for Vytalize Health to integrate its solutions and services directly into the Practice Fusion EHR, a Veradigm Network solution.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220909005521/en/

Value-based care is rapidly becoming the standard in the United States healthcare system. The shift away from fee-for-service payments to providers is intended to improve patient outcomes and reduce overall healthcare costs. “The Veradigm Network is paving the way for primary care physicians (PCP’s) to make this transition by partnering with Vytalize Health, a Medicare ACO,” said Tom Langan, President, and Chief Commercial Officer of Allscripts.

Vytalize Health provides value-based payments, clinical support, and data analysis to identify care gaps, and also coordinates end-to-end care management for partner PCPs. “The multidisciplinary clinical team at Vytalize serves as an extension of each physician to design custom-tailored care plans for each of their Medicare patients,” said Faris Ghawi, CEO and Co-Founder of Vytalize Health. “As a result, Medicare patients treated by Veradigm Network’s PCPs, through Vytalize Health, are poised to prevent and reduce hospitalizations while improving their quality of life.”

Veradigm is committed to helping independent practices improve health outcomes and lower patient costs. Vytalize creates personalized care plans that are customized to each patient, making the transition to value-based care seamless and effective. By partnering with Vytalize Health, the Veradigm Network is leading the way in value-based primary care.

About Vytalize Health

Vytalize Health is a leading value-based care platform helping primary care doctors strengthen relationships with their patients through data-driven, holistic, and personalized care. Vytalize provides an all-in-one solution including value-based incentives, smart technology, and a virtual clinic that enables small and large independent practices to succeed in value-based care arrangements. Vytalize’s care delivery model transforms the healthcare experience for more than two hundred thousand Medicare beneficiaries across 30 states by helping them manage their chronic conditions in collaboration with their doctors. Learn more at www.vytalizehealth.com or email info@vytalizehealth.com. For press inquiries email Matt@vytalizehealth.com.

About Veradigm®

Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. Some healthcare technology companies deliver clinical data for biopharma and health plans, some help turn that data into insights, others serve healthcare providers directly by providing point-of-care clinical software and patient outreach platforms. Veradigm does it all. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions, all working together to transform healthcare insightfully.

For more information on Veradigm, visit www.veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, LinkedIn, and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved. Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

09/06/2022

Veradigm Payerpath Ranks First in End-To-End Revenue Cycle Management (RCM) Software Technology from Black Book™ Research

2022 User Satisfaction Survey names Veradigm Payerpath the top solution for End-To-End RCM Software Technology, supporting Physicians Practices & Ambulatory Facilities/Groups

CHICAGO–(BUSINESS WIRE)–Sep. 6, 2022–
Veradigm®, a leading provider of healthcare data and technology solutions and a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX), today announced that Black Book, a healthcare-centric market research and public opinion research and consulting company, has ranked Veradigm Payerpath™ first for 2022 in its End-To-End RCM Software Technology, Physicians Practices & Ambulatory Facilities/Groups Solutions category.

Veradigm Payerpath is an end-to-end revenue cycle management suite of solutions built to assist medical practices of all sizes and specialties improve revenue, streamline communications with payers and patients, and boost practice profitability. The system’s integrated solutions are practice management (PM) agnostic, interfacing seamlessly with all major PM systems. An innovative claims management platform, Veradigm Payerpath delivers a >98% first-pass clean claims rate and reaches a network of over 3,100 payers.1

Black Book collects ballot results on 18 performance areas of operational excellence to rank vendors by software, systems, products, equipment and outsourced service lines. Client users submit ballots per vendor per function which are juxtaposed with client size, functions outsourced, software installed, systems employed, services rendered, industry/vertical(s) affected, country of service origin and overall service and/or product line domain.

Click here to read Black Book’s methodology.

“Payerpath is one of our advanced solutions that connects payers, providers, patients, and government to streamline and simplify care,” said Tom Langan, President and Chief Commercial Officer of Veradigm. “These findings show that Payerpath users are finding wide-ranging value in our comprehensive suite of solutions, and we remain committed to delivering value to each practice we serve.”

About Veradigm®

Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. Some healthcare technology companies deliver clinical data for biopharma and health plans, some help turn that data into insights, others serve healthcare providers directly by providing point-of-care clinical software and patient outreach platforms. Veradigm does it all. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions, all working together to transform healthcare insightfully.

For more information on Veradigm, visit www.veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube

About Allscripts

Allscripts (Nasdaq: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, LinkedIn, and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved. Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

  1. Veradigm Payerpath 2021. Data on file.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions

08/29/2022

Veradigm Payerpath Ranked as #1 Solution for 2022 by Black Book

Black Book’s Ambulatory Claims Management and Clearinghouse Solutions Selected Veradigm as Top in this Category

CHICAGO–(BUSINESS WIRE)–Aug. 29, 2022–
Veradigm®, a leading provider of healthcare data and technology solutions and a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX), today announced that Black Book, a healthcare-centric market research and public opinion research and consulting company, has ranked Veradigm Payerpath™ #1 for 2022 in its Ambulatory Claims Management and Clearinghouse Solutions category.

Veradigm Payerpath is an end-to-end revenue cycle management suite of solutions built to assist organizations improve revenue, streamline communications with payers and patients, and boost practice profitability for practices of all sizes and specialties. The system’s integrated solutions are practice management (PM) agnostic, interfacing seamlessly with all major PM systems. An innovative claims management platform, Veradigm Payerpath delivers a >98% first-pass clean claims rate and reaches a network of over 3,100 payers.1

Black Book collects ballot results on 18 performance areas of operational excellence to rank vendors by software, systems, products, equipment and outsourced service lines. Client users submit ballots per vendor per function which are juxtaposed with client size, functions outsourced, software installed, systems employed, services rendered, industry/vertical(s) affected, country of service origin and overall service and/or product line domain.

Click here to read Black Book’s methodology.

“Our focus at Veradigm is on transforming healthcare and advancing value for all healthcare stakeholders, and we are very pleased that users of Veradigm Payerpath chose to recognize our contribution to their practices’ success with this #1 ranking in Black Book,” said Tom Langan, President and Chief Commercial Officer of Veradigm. “Payerpath is an important element in our evolving approach to connect payers, providers, patients, and government in ways that can streamline and simplify care and reimbursement in ways that benefit all involved.”

About Veradigm®

Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. Some healthcare technology companies deliver clinical data for biopharma and health plans, some help turn that data into insights, others serve healthcare providers directly by providing point-of-care clinical software and patient outreach platforms. Veradigm does it all. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions, all working together to transform healthcare insightfully.

For more information on Veradigm, visit www.veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube

About Allscripts

Allscripts (Nasdaq: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, LinkedIn, and It Takes A Community: The Allscripts Blog.

For more information contact:

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved. Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

  1. Veradigm Payerpath 2021. Data on file.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions

08/04/2022

Allscripts Announces Second Quarter of 2022 Results
  • Second quarter bookings of $107 million and $172 million year-to-date, up 10% from the first half of 2021
  • Generated $42 million of cash flow from continuing operations in the quarter

CHICAGO–(BUSINESS WIRE)–Aug. 4, 2022–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three and six months ended June 30, 2022.

Second quarter 2022 Veradigm revenue was $145 million compared with $133 million in the second quarter of 2021. On a consolidated Allscripts basis second quarter 2022 revenue was $151 million compared with $141 million in the second quarter of 2021.

In the second quarter, Allscripts completed the sale of its Hospital and Large Physician Practices Segment. The transaction had significant impacts on the GAAP based income statement for the quarter as we recorded significant transaction costs in operations, and a very large tax provision reflecting the difference between the book and tax basis of the assets sold. These non-recurring items are excluded in our presentation of Non-GAAP results.

On a GAAP basis, Veradigm income from operations was $24 million in the second quarter of 2022 compared with $18 million in the second quarter of 2021. Veradigm Non-GAAP income from operations in the second quarter of 2022 was $30 million compared with $25 million in the second quarter of 2021. On a consolidated basis in the second quarter of 2022, GAAP loss from operations was $5 million compared with income from operations in the second quarter of 2021 of $17 million. Non-GAAP income from operations in the second quarter of 2022 was $29 million compared with $24 million in the second quarter of 2021.

Veradigm Adjusted EBITDA totaled $40 million in the second quarter of 2022 compared with $35 million in the second quarter of 2021. On a consolidated basis Allscripts Adjusted EBITDA totaled $39 million in the second quarter of 2022 compared with $35 million in the second quarter of 2021.

Consolidated GAAP net loss in the second quarter of 2022 totaled $64 million compared with income of $22 million in the second quarter of 2021. Non-GAAP net income in the second quarter of 2022 was $22 million compared with $26 million in the second quarter of 2021.

Consolidated GAAP diluted loss per share in the second quarter of 2022 was $0.54 compared with diluted earnings per share of $0.15 in the second quarter of 2021. Non-GAAP diluted earnings per share in the second quarter of 2022 were $0.18 compared with $0.18 in the second quarter of 2021.

Stock repurchases totaled $94 million in the second quarter of 2022.

“Allscripts saw continued success in the second quarter, once again reporting year-over-year growth in revenue, gross profit, and Adjusted EBITDA. Our results allowed us to continue investing in our platforms while also returning significant capital to our shareholders,” said Rick Poulton, Allscripts Chief Executive Officer.

2022 Financial Outlook(1)

Allscripts is affirming its prior annual outlook and currently expects to achieve:

  • Veradigm revenue growth year-over-year between 6% to 7%
  • Veradigm Adjusted EBITDA growth year-over-year between 10% to 15%
  • Free cash flow from continuing operations between $110 million to $120 million.

Conference Call

Allscripts will conduct a conference call today, Thursday, August 4, 2022, at 4:30 PM Eastern Time to discuss its earnings release and other information. Participants may access the conference call via webcast at http://investor.allscripts.com. Participants also may access the conference call by dialing +1 (888) 428-7458 or +1 (404) 267-0368 (international) and requesting Conference ID # 13731642.

A replay of the call will be available approximately two hours after the conclusion of the call, for a period of four weeks, on the Allscripts Investor Relations website.

Supplemental and non-GAAP financial information is also available at http://investor.allscripts.com.

Footnote

(1)

In providing financial guidance, the company does not reconcile Adjusted EBITDA and free cash flow to the corresponding GAAP financial measures. Allscripts does not provide guidance for the various reconciling items since certain items that impact GAAP operating income and operating cash flow such as depreciation and amortization expense, and transaction and other costs, any of which may be significant, are outside of its control and/or cannot be reasonably predicted. Please see the “Explanation of Non-GAAP Financial Measures” at the end of this press release for detailed information on calculating non-GAAP measures. For a reconciliation of other non-GAAP financial measures, see the non-GAAP financial reconciliation tables in this release (Tables 4 through 10).

NOTE: All percentage changes described within this press release are calculated from full dollar amounts as illustrated in the accompanying financial statements posted on the Investor Relations website. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body compared to full dollar amounts in the tables.

About Allscripts

Allscripts (Nasdaq: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, LinkedIn, and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our 2022 outlook, the disposition of Hospitals and Large Physician Practices Business, our profitability initiatives, our strategic priorities and our client outcomes. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” “look forward,” “pipeline” and similar terms. Actual results could differ significantly from those set forth in the forward-looking statements, and reported results should not be considered an indication of future performance or events.

Certain factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to: our ability to achieve the margin targets associated with our margin improvement initiatives within the contemplated time periods, if at all; the magnitude, severity and duration of the COVID-19 pandemic, including the impacts of the pandemic, along with the impacts of our responses and the responses by governments and other businesses to the pandemic, on our business, our employees, our clients and our suppliers; security breaches resulting in unauthorized access to our or our clients’ computer systems or data, including denial-of-services, ransomware or other Internet-based attacks; the failure by Practice Fusion to comply with the terms of the settlement agreements with the U.S. Department of Justice (the “DOJ”); the costs and burdens of compliance by Practice Fusion with the terms of its settlement agreements with the DOJ; additional investigations and proceedings from governmental entities or third parties other than the DOJ related to the same or similar conduct underlying the DOJ’s investigations into Practice Fusion’s business practices; our ability to recover from third parties (including insurers) any amounts paid in connection with Practice Fusion’s settlement agreements with the DOJ and related inquiries; the expected financial results of businesses acquired by us; the successful integration of businesses acquired by us; the anticipated and unanticipated expenses and liabilities related to businesses acquired by us, including the civil investigation by the U.S. Attorney’s Office involving our Enterprise Information Solutions business; other risks associated with investments and acquisitions; risks associated with disposition of the Hospitals and Large Physicians Practices Business, our failure to compete successfully; consolidation in our industry; current and future laws, regulations and industry initiatives; increased government involvement in our industry; the failure of markets in which we operate to develop as quickly as expected; our or our customers’ failure to see the benefits of government programs; changes in interoperability or other regulatory standards; our ability to maintain and expand our business with existing clients or effectively transition clients to newer products; the effects of the realignment of our sales, services and support organizations; market acceptance of our products and services; the unpredictability of the sales and implementation cycles for our products and services; our ability to manage future growth; our ability to introduce new products and services; our ability to establish and maintain strategic relationships; risks associated with investments and acquisitions; the performance of our products; our ability to protect our intellectual property rights; the outcome of legal proceedings involving us; our ability to hire, retain and motivate key personnel; performance by our content and service providers; liability for use of content; price reductions; our ability to license and integrate third-party technologies; risks related to global operations; variability of our quarterly operating results; risks related to our outstanding indebtedness; changes in tax rates or laws; business disruptions; our ability to maintain proper and effective internal controls; and asset and long-term investment impairment charges. Additional information about these and other risks, uncertainties, and factors affecting our business is contained in our filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Qs. We do not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in our business, financial condition or operating results over time.

Table 1
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
 
June 30, December 31,

2022

2021

ASSETS
Current assets:
Cash and cash equivalents

$500.2

$132.5

Restricted cash

1.3

1.3

Accounts receivable, net

166.8

171.6

Contract assets

49.0

63.5

Prepaid expenses and other current assets

91.5

60.5

Current assets attributable to discontinued operations

20.0

331.9

Total current assets

$828.8

$761.3

Fixed assets, net

15.0

9.8

Software development costs, net

82.5

74.7

Intangible assets, net

149.2

149.7

Goodwill

524.1

506.6

Contract assets – long-term

19.4

28.2

Right-of-use assets – operating leases

15.9

18.3

Other assets

79.3

83.4

Long-term assets attributable to discontinued operations

$0.0

$793.2

Total assets

$1,714.2

$2,425.2

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$18.0

$5.3

Accrued expenses

83.0

54.5

Accrued compensation and benefits

34.0

31.1

Deferred revenue

84.8

120.7

Current operating lease liabilities

6.1

6.1

Current liabilities attributable to discontinued operations

30.4

329.4

Total current liabilities

256.3

547.1

Long-term debt

199.9

350.1

Deferred revenue

2.0

1.8

Deferred taxes, net

10.9

16.6

Long-term operating lease liabilities

13.9

16.8

Other liabilities

34.9

33.8

Long-term liabilities attributable to discontinued operations

0.0

50.9

Total liabilities

$517.9

$1,017.1

Total stockholders’ equity

$1,196.3

$1,408.1

Total liabilities and stockholders’ equity

$1,714.2

$2,425.2

Table 2
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Revenue:
Provider

$118.9

 

$115.9

 

$237.6

 

$227.1

 

Payer & Life Sciences

32.0

 

25.3

 

56.0

 

47.8

 

Total Revenue

150.9

 

141.2

 

293.6

 

274.9

 

Cost of revenue:
Provider

58.3

 

60.3

 

115.3

 

119.0

 

Payer & Life Sciences

13.1

 

12.5

 

25.3

 

24.6

 

Total cost of revenue

71.4

 

72.8

 

140.6

 

143.6

 

Gross profit

79.5

 

68.4

 

153.0

 

131.3

 

Selling, general and administrative expenses

59.9

 

28.1

 

101.2

 

60.3

 

Research and development

22.8

 

20.9

 

46.2

 

41.5

 

Asset impairment charges

0.0

 

0.2

 

0.0

 

0.2

 

Amortization of intangible and acquisition-related assets

2.2

 

2.4

 

4.4

 

4.8

 

Income (loss) from operations

(5.4

)

16.8

 

1.2

 

24.5

 

Interest expense, net (a)

(1.8

)

(2.9

)

(3.9

)

(6.0

)

Other

1.8

 

16.4

 

1.4

 

17.2

 

Income (loss) before income taxes

(5.4

)

30.3

 

(1.3

)

35.7

 

Income tax (provision) benefit

8.6

 

(4.2

)

23.0

 

(5.3

)

Income (loss) from continuing operations, net of tax

3.2

 

26.1

 

21.7

 

30.4

 

Income (loss) from discontinued operations

(3.9

)

(6.2

)

(8.9

)

(0.3

)

Gain (loss) on sale of discontinued operations

2.8

 

0.0

 

2.8

 

0.6

 

Income tax (provision) from discontinued operations

(66.2

)

2.0

 

(56.8

)

0.3

 

Income (loss) from discontinued operations, net of tax

(67.3

)

(4.2

)

(62.9

)

0.6

 

Net Income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders

($64.1

)

$21.9

 

($41.2

)

$31.0

 

 
Diluted earnings per Common Share:
Income (loss) from continuing operations, net of tax

$3.2

 

$26.1

 

$21.7

 

$30.4

 

Plus: Interest expense, net of tax, associated with 0.875% Convertible Senior Notes

$0.5

 

$0.0

 

$1.0

 

$0.0

 

Income (loss) from continuing operations, net of tax after the effect of assumed conversions

3.7

 

26.1

 

22.7

 

30.4

 

Income (loss) from discontinued operations, net of tax

(67.3

)

(4.2

)

(62.9

)

0.6

 

Adjusted Net Income (loss) earnings per Common Share

($63.6

)

$21.9

 

($40.2

)

$31.0

 

 
Income (loss) from continuing operations per share – basic

$0.03

 

$0.19

 

$0.19

 

$0.22

 

Income (loss) from discontinued operations per share – basic

($0.59

)

($0.03

)

($0.55

)

$0.00

 

Income (loss) per share – basic

($0.56

)

$0.16

 

($0.36

)

$0.22

 

Adjusted Income (loss) from continuing operations per share – diluted

$0.03

 

$0.18

 

$0.17

 

$0.21

 

Income (loss) from discontinued operations per share – diluted

($0.57

)

($0.03

)

($0.46

)

$0.00

 

Adjusted Income (loss) per share – diluted

($0.54

)

$0.15

 

($0.29

)

$0.21

 

 
Weighted average common shares outstanding:
Basic

114.3

 

136.6

 

115.1

 

138.4

 

Diluted

118.7

 

145.3

 

136.7

 

147.2

 

 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

 
(a) Interest expense, net is comprised of the following for the periods presented:
Interest expense

(1.1

)

(1.0

)

(2.6

)

(2.3

)

Interest income

0.1

 

0.0

 

0.1

 

0.1

 

Non-cash charges to interest expense

(0.8

)

(1.9

)

(1.4

)

(3.8

)

Interest expense, net

($1.8

)

($2.9

)

($3.9

)

($6.0

)

Table 3
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Cash flows from operating activities:
Net income (loss)

($64.1

)

$21.9

 

($41.2

)

$31.0

 

Less: Income(loss) from discontinued operations

(67.3

)

(4.2

)

(62.9

)

0.6

 

Income (loss) from continuing operations

$3.2

 

$26.1

 

$21.7

 

$30.4

 

Non-cash adjustments to net income (loss):
Depreciation and amortization

14.4

 

16.7

 

28.5

 

32.9

 

Non-cash lease expense, net

(2.0

)

(3.8

)

(5.2

)

(5.6

)

Stock-based compensation expense

9.0

 

2.0

 

15.3

 

4.8

 

Deferred Taxes

16.5

 

1.1

 

(0.5

)

5.8

 

Impairment of assets and long-term investments

0.0

 

0.2

 

0.0

 

0.2

 

Other (income) loss, net

(1.3

)

(0.6

)

(0.7

)

0.1

 

Total non-cash adjustments to net income (loss)

36.6

 

15.6

 

37.4

 

38.2

 

Cash impact of changes in operating assets and liabilities:
Assets

7.4

 

(16.9

)

39.0

 

7.3

 

Liabilities

(5.1

)

48.3

 

(21.5

)

12.3

 

Total cash impact of changes on operating assets and liabilities

2.3

 

31.4

 

17.5

 

19.6

 

Net cash provided by (used in) operating activities – continuing operations

42.1

 

73.1

 

76.6

 

88.2

 

Net cash provided by (used in) operating activities – discontinued operations

(43.8

)

(274.0

)

(9.0

)

(284.6

)

Net cash provided by (used in) operating activities

(1.7

)

(200.9

)

67.6

 

(196.4

)

Cash flows from investing activities:
Capital expenditures

(1.2

)

0.0

 

(1.6

)

(0.2

)

Capitalized software

(8.7

)

(8.6

)

(18.3

)

(16.7

)

Cash paid for business acquisitions, net of cash acquired

0.0

 

0.0

 

(24.1

)

0.0

 

Sale of businesses and other investments, net of cash divested and distributions received

671.4

 

2.5

 

672.5

 

4.2

 

Purchases of equity securities, other investments and related intangible assets, net

(0.3

)

0.0

 

(0.3

)

(0.2

)

Cash provided by (used in) investing activities – continuing operations

661.2

 

(6.1

)

628.2

 

(12.9

)

Cash provided by (used in) investing activities – discontinued operations

(4.0

)

(9.4

)

(15.2

)

(21.6

)

Net cash provided by (used in) investing activities

657.2

 

(15.5

)

613.0

 

(34.5

)

Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards

(14.6

)

(7.9

)

(27.9

)

(12.6

)

Credit facility payments

(175.0

)

0.0

 

(200.0

)

0.0

 

Credit facility borrowings, net of issuance costs

(2.7

)

250.0

 

22.3

 

250.0

 

Repurchase of common stock

(93.7

)

(309.0

)

(143.4

)

(309.0

)

Intercompany to/from parent/subsidiaries

0.0

 

(23.3

)

11.7

 

5.0

 

Payment of acquisition and other financing obligations

0.1

 

(0.9

)

0.1

 

(2.4

)

Net cash provided by (used in) financing activities – continuing operations

(285.9

)

(91.1

)

(337.2

)

(69.0

)

Net cash provided by (used in) financing activities – discontinued operations

0.0

 

23.3

 

(11.7

)

(6.3

)

Net cash provided by (used in) financing activities

(285.9

)

(67.8

)

(348.9

)

(75.3

)

Effect of exchange rate changes on cash and cash equivalents

(0.7

)

0.1

 

(0.7

)

0.1

 

Net increase (decrease) in cash and cash equivalents

368.9

 

(284.1

)

331.0

 

(306.1

)

Cash, cash equivalents and restricted cash, beginning of period

152.6

 

515.5

 

190.5

 

537.5

 

Cash, cash equivalents and restricted cash, end of period

$521.5

 

$231.4

 

$521.5

 

$231.4

 

Less: Cash and cash equivalents attributable to discontinued operations

($20.0

)

($70.5

)

($20.0

)

($70.5

)

Cash, cash equivalents and restricted cash, end of period, excluding discontinued operations

$501.5

 

$160.9

 

$501.5

 

$160.9

 

Table 4
Allscripts Healthcare Solutions, Inc.
Condensed Non-GAAP Financial Information
(In millions, except per share amounts and percentages)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Gross profit, as reported

$79.5

 

$68.4

 

$153.0

 

$131.3

 

Acquisition-related amortization

1.7

 

1.8

 

3.3

 

3.6

 

Stock-based compensation expense

0.3

 

0.3

 

0.6

 

0.6

 

Total non-GAAP gross profit

$81.5

 

$70.5

 

$156.9

 

$135.5

 

 
Income (loss) from operations, as reported

($5.4

)

$16.8

 

$1.2

 

$24.5

 

Acquisition-related amortization

4.0

 

4.2

 

7.8

 

8.4

 

Stock-based compensation expense

9.2

 

3.4

 

16.1

 

7.4

 

Transaction and other

21.3

 

0.0

 

27.9

 

0.0

 

Total non-GAAP income from operations

$29.1

 

$24.4

 

$53.0

 

$40.3

 

 
Adjusted Net Income (loss) earnings per Common Share

($63.6

)

$21.9

 

($40.2

)

$31.0

 

Loss (income) from discontinued operations

3.9

 

6.2

 

8.9

 

0.3

 

(Gain) on sale of business, net from discontinued operations

(2.8

)

0.0

 

(2.8

)

(0.6

)

Income tax provision from discontinued operations

66.2

 

(2.0

)

56.8

 

(0.3

)

Income (loss) from continuing operations, net of tax after the effect of assumed conversions

$3.7

 

$26.1

 

$22.7

 

$30.4

 

Less: Interest expense, net of tax, associated with 0.875% Convertible Senior Notes

(0.5

)

0.0

 

(1.0

)

0.0

 

Income (loss) from continuing operations, net of tax

$3.2

 

$26.1

 

$21.7

 

$30.4

 

Acquisition-related amortization

4.0

 

4.1

 

7.8

 

8.4

 

Stock-based compensation expense

9.2

 

3.5

 

16.1

 

7.4

 

Transaction and other

21.4

 

0.0

 

27.9

 

0.0

 

Non-cash charges to interest expense and other

0.0

 

(3.7

)

0.0

 

(2.4

)

Tax rate alignment

(15.7

)

(3.9

)

(35.2

)

(6.5

)

Non-GAAP net income attributable to Allscripts Healthcare Solutions, Inc.

$22.1

 

$26.1

 

$38.3

 

$37.3

 

 
Non-GAAP effective tax rate

24

%

24

%

24

%

24

%

 
Weighted shares outstanding – basic

114.3

 

136.6

 

115.1

 

138.4

 

Weighted shares outstanding – diluted

118.7

 

145.3

 

136.7

 

147.2

 

Less the net effect of convertible notes and note hedges

0.9

 

(1.0

)

(14.1

)

(2.9

)

Non-GAAP Weighted shares outstanding – diluted

119.6

 

144.3

 

122.6

 

144.3

 

 
GAAP Adjusted Income (loss) from continuing operations per share – diluted

($0.54

)

$0.15

 

($0.29

)

$0.21

 

Non-GAAP Income (loss) per share – diluted

$0.18

 

$0.18

 

$0.31

 

$0.26

 

Table 5
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Adjusted EBITDA
(In millions, except percentages)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Income (loss) from operations, as reported

($5.4

)

$16.8

 

$1.2

 

$24.5

 

Plus:
Depreciation and amortization

13.5

 

14.9

 

27.1

 

29.3

 

Asset impairment charges

0.0

 

0.2

 

0.0

 

0.2

 

Stock-based compensation expense

9.2

 

3.4

 

16.1

 

7.4

 

Transaction and other

21.3

 

0.0

 

27.9

 

0.0

 

Adjusted EBITDA

$38.6

 

$35.3

 

$72.3

 

$61.4

 

 
Adjusted EBITDA margin (a)

25.6

%

25.0

%

24.6

%

22.3

%

 
(a) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
Table 6
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Free Cash Flow
(In millions)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

Net cash provided by (used in) operating activities – continuing operations

$42.1

 

$73.1

 

$76.6

 

$88.2

 

Cash flows from investing activities:
Capital expenditures

(1.2

)

0.0

 

(1.6

)

(0.2

)

Capitalized software

(8.7

)

(8.6

)

(18.3

)

(16.7

)

Free cash flow

$32.2

 

$64.5

 

$56.7

 

$71.3

 

Table 7
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information from Continuing Operations – Segment Details
(In millions)
(unaudited)
 

2021

2022

Q1 Q2 Q3 Q4 Total Q1 Q2 Total
 
Total Veradigm, Non-GAAP
Revenue

126.4

133.4

137.2

155.2

552.2

 

136.3

144.6

280.9

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

77.4

148.5

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

53.5%

52.9%

Income from operations

19.0

25.2

24.2

42.4

110.8

 

25.5

30.3

55.8

Adjusted EBITDA

28.4

35.3

34.5

51.9

150.1

 

35.2

39.8

75.0

Adjusted EBITDA margin

22.5%

26.5%

25.1%

33.4%

27.2%

 

25.8%

27.5%

26.7%

Unallocated, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

7.3

7.8

7.5

6.0

28.6

 

6.4

6.3

12.7

Gross Profit

4.3

4.8

3.9

3.3

16.3

 

4.3

4.1

8.4

Gross margin

58.9%

61.5%

52.0%

55.0%

57.0%

 

67.2%

65.1%

66.1%

Income from operations

(3.1)

(0.8)

1.4

6.3

3.8

 

(1.6)

(1.2)

(2.8)

Adjusted EBITDA

(2.2)

0.0

1.7

6.3

5.8

 

(1.5)

(1.2)

(2.7)

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

133.7

141.2

144.7

161.2

580.8

 

142.7

150.9

293.6

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

81.5

156.9

Gross margin

48.6%

49.9%

49.5%

55.8%

51.2%

 

52.8%

54.0%

53.4%

Income from operations

15.9

24.4

25.6

48.7

114.6

 

23.9

29.1

53.0

Adjusted EBITDA

26.2

35.3

36.2

58.2

155.9

 

33.7

38.6

72.3

Adjusted EBITDA margin

19.6%

25.0%

25.0%

36.1%

26.8%

 

23.6%

25.6%

24.6%

 

 

 

 

 

 

 

 

 

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Q2

Total

Allscripts Consolidated Bookings, Non-GAAP

 

 

 

 

 

 

 

 

 

Total contract value

70.4

85.4

61.6

83.5

300.9

 

64.8

106.8

171.6

First year contract value

33.8

38.3

31.9

41.9

145.9

 

28.9

48.7

77.6

Table 8
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information Reconciliation – Segment Details
(In millions)
(unaudited)
 

2021

2022

Q1 Q2 Q3 Q4 Total Q1 Q2 Total
Total Veradigm
 
Revenue, as reported

$126.4

$133.4

$137.2

$155.2

$552.2

 

$136.3

$144.6

$280.9

 

 

 

 

 

 

 

 

 

Gross profit, GAAP

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2

$75.4

$144.6

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

1.7

3.3

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

0.3

0.6

Non-GAAP Gross profit

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1

$77.4

$148.5

 

 

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

$11.4

$17.9

$16.9

$35.2

$81.4

 

$18.1

$24.0

$42.1

Acquisition-related amortization

4.2

4.2

4.1

3.9

16.4

 

3.8

4.0

7.8

Stock-based compensation expense

3.4

3.1

3.2

3.3

13.0

 

3.6

2.3

5.9

Transaction and other

0.0

0.0

0.0

0.0

0.0

 

0.0

0.0

0.0

Non-GAAP Income (loss) from operations

$19.0

$25.2

$24.2

$42.4

$110.8

 

$25.5

$30.3

$55.8

 

 

 

 

 

 

 

 

 

Asset Impairment Charges

0.0

0.2

0.6

0.0

0.8

 

0.0

0.0

0.0

Depreciation and amortization

9.4

9.9

9.7

9.5

38.5

 

9.7

9.5

19.2

Adjusted EBITDA

$28.4

$35.3

$34.5

$51.9

$150.1

 

$35.2

$39.8

$75.0

 

 

 

 

 

 

 

 

 

Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

$7.3

$7.8

$7.5

$6.0

$28.6

 

$6.4

$6.3

$12.7

 

 

 

 

 

 

 

 

 

Gross Profit, as reported

$4.3

$4.8

$3.9

$3.3

$16.3

 

$4.3

$4.1

$8.4

 

 

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

($3.7)

($1.1)

$1.5

$6.4

$2.9

 

($11.5)

($29.4)

($40.9)

Stock-based compensation expense

0.6

0.3

(0.1)

(0.1)

0.9

 

3.3

6.9

10.2

Transaction and other

0.0

0.0

0.0

0.0

0.0

 

6.6

21.3

27.9

Non-GAAP Income (loss) from operations

($3.1)

($0.8)

$1.4

$6.3

$3.8

 

($1.6)

($1.2)

($2.8)

 

 

 

 

 

 

 

 

 

Depreciation and amortization

0.9

0.8

0.3

0.0

2.0

 

0.1

0.0

0.1

Adjusted EBITDA

($2.2)

$0.0

$1.7

$6.3

$5.8

 

($1.5)

($1.2)

($2.7)

Table 9
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information from Continuing Operations – Revenue and Gross Profit Details
(In millions)
(unaudited)
 

2021

2022

Q1 Q2 Q3 Q4 Total Q1 Q2 Total
Veradigm Provider, Non-GAAP
Revenue

103.9

108.1

110.8

126.3

449.0

 

112.3

112.6

224.9

Gross profit

49.8

52.4

54.2

70.6

227.0

 

58.8

58.0

116.8

Gross margin

47.9%

48.5%

48.9%

55.9%

50.6%

 

52.4%

51.5%

51.9%

 

 

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

22.5

25.3

26.5

28.9

103.2

 

24.0

32.0

56.0

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

19.4

31.7

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

60.6%

56.6%

 

 

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

126.4

133.4

137.3

155.2

552.2

 

136.3

144.6

280.9

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

77.4

148.5

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

53.5%

52.9%

 

 

 

 

 

 

 

 

 

Allscripts Consolidated Provider, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

111.2

115.9

118.3

132.3

477.6

 

118.7

118.9

237.6

Gross profit

54.1

57.2

58.1

73.9

243.3

 

63.1

62.1

125.2

Gross margin

48.7%

49.4%

49.1%

55.9%

50.9%

 

53.2%

52.2%

52.7%

 

 

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

22.5

25.3

26.5

28.9

103.2

 

24.0

32.0

56.0

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

19.4

31.7

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

60.6%

56.6%

 

 

 

 

 

 

 

 

 

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

 

 

Revenue

133.7

141.2

144.8

161.2

580.8

 

142.7

150.9

293.6

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

81.5

156.9

Gross margin

48.6%

49.9%

49.4%

55.8%

51.2%

 

52.8%

54.0%

53.4%

Table 10
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information Reconciliation – Revenue and Gross Profit Details
(In millions)
(unaudited)
 

2021

2022

Q1 Q2 Q3 Q4 Total Q1 Q2 Total
Veradigm Provider
Gross profit, as reported

$48.2

$50.8

$52.6

$69.0

$220.6

 

$57.4

$56.5

$113.9

Acquisition-related amortization

1.3

1.3

1.3

1.3

5.2

 

1.1

1.2

2.3

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

0.3

0.6

Non-GAAP Gross profit

$49.8

$52.4

$54.2

$70.6

$227.0

 

$58.8

$58.0

$116.8

 

 

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$10.4

$12.8

$13.1

$15.6

$51.9

 

$11.8

$18.9

$30.7

Acquisition-related amortization

0.5

0.5

0.4

0.5

1.9

 

0.5

0.5

1.0

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

0.0

0.0

Non-GAAP Gross profit

$10.9

$13.3

$13.5

$16.1

$53.8

 

$12.3

$19.4

$31.7

 

 

 

 

 

 

 

 

 

Total Veradigm

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2

$75.4

$144.6

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

1.7

3.3

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

0.3

0.6

Non-GAAP Gross profit

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1

$77.4

$148.5

 

 

 

 

 

 

 

 

 

Allscripts Consolidated Provider

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$52.5

$55.6

$56.5

$72.3

$236.9

 

$61.7

$60.6

$122.3

Acquisition-related amortization

1.3

1.3

1.3

1.3

5.2

 

1.1

1.2

2.3

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

0.3

0.6

Non-GAAP Gross profit

$54.1

$57.2

$58.1

$73.9

$243.3

 

$63.1

$62.1

$125.2

 

 

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$10.4

$12.8

$13.1

$15.6

$51.9

 

$11.8

$18.9

$30.7

Acquisition-related amortization

0.5

0.5

0.4

0.5

1.9

 

0.5

0.5

1.0

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

0.0

0.0

Non-GAAP Gross profit

$10.9

$13.3

$13.5

$16.1

$53.8

 

$12.3

$19.4

$31.7

 

 

 

 

 

 

 

 

 

Total Allscripts Consolidated

 

 

 

 

 

 

 

 

 

Gross profit, as reported

$62.9

$68.4

$69.6

$87.9

$288.8

 

$73.5

$79.5

$153.0

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

1.7

3.3

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

0.3

0.6

Non-GAAP Gross profit

$65.0

$70.5

$71.6

$90.0

$297.1

 

$75.4

$81.5

$156.9

Explanation of Non-GAAP Financial Measures

Allscripts reports its financial results in accordance with U.S. generally accepted accounting principles, or GAAP. To supplement this information, Allscripts presents non-GAAP bookings, gross profit, income from operations, Adjusted EBITDA, Adjusted EBITDA margin, effective income tax rate, net income, diluted earnings per share and free cash flow, which are considered non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. The definitions of non-GAAP financial measures are presented below:

  • Non-GAAP bookings consists of total contract value which reflects the value of executed contracts for software, hardware, maintenance, and other client services on a continuing operations basis. First year contract value, a subset of total contract value, reflects the anticipated revenue to be recognized in 12 months following new contract activation on a continuing operations basis.
  • Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related amortization and; stock-based compensation expense. Non-GAAP gross margin consists of non-GAAP gross profit as a percentage of revenue in the applicable period. Reconciliations to GAAP gross profit are found in Tables 4, 8 and 10 within this press release.
  • Non-GAAP income from operations consists of GAAP income (loss) from operations, as reported, and excludes acquisition-related amortization; stock-based compensation expense; and transaction and other costs. Reconciliations to GAAP income (loss) from operations are found in Tables 4 and 8 within this press release.
  • Adjusted EBITDA is a non-GAAP measure and consists of GAAP income/(loss) from operations, as reported, and adjusts for: depreciation and amortization; asset impairment charges; stock-based compensation expense; and transaction and other costs. Reconciliations to GAAP income/(loss) from operations are found in Tables 5 and 8 within this press release.
  • Adjusted EBITDA margin is a non-GAAP measure that is calculated by dividing Adjusted EBITDA by revenue. See the reconciliations in Tables 5 and 8 within this press release with respect to Adjusted EBITDA.
  • Non-GAAP effective income tax rate is based on non-GAAP pre-tax earnings and consists of the statutory federal income tax rate, Allscripts effective state income tax rate and adjustments for permanent differences.
  • Non-GAAP net income attributable to Allscripts Healthcare Solutions, Inc. consists of GAAP net income/(loss) from continuing operations, as reported, and adds back acquisition-related amortization; stock-based compensation expense; transaction and other costs; and non-cash charges to interest expense and other. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income/(loss) attributable to Allscripts Healthcare Solutions, Inc. are found in Table 4 within this press release.
  • Non-GAAP diluted weighted shares outstanding consists of diluted weighted shares outstanding, as reported, less the dilutive impact of 0.875% convertible notes due to the intent to settle the principal in cash and shares to be delivered at settlement by the convertible note hedge.
  • Non-GAAP diluted earnings per share consist of non-GAAP net income, as defined above, divided by non-GAAP diluted weighted shares outstanding, as defined above, during the applicable period.
  • Free cash flow consists of GAAP cash flows from continuing operations in the applicable period, net of capital expenditures and capitalized software costs. Reconciliations to GAAP cash flows from continuing operations are found in Table 6 within this press release.

Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. Allscripts excludes acquisition-related amortization expense from non-GAAP gross profit, non-GAAP operating income, and non-GAAP net income because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods because of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods.

Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. Allscripts excludes stock-based compensation expense from non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods.

Transaction and Other Costs. Transaction and other costs relate to certain legal proceedings and investigations, consulting, severance, incentive compensation and other charges incurred in connection with activities that are considered not reflective of our core business. Other costs also include non-cash impairment charges based on management’s assessment of the likelihood of near-term recovery of the investments’ value.

Allscripts excludes transaction and other costs, in whole or in part, from non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods.

Asset Impairment Charges. Asset impairment charges reflect non-cash charges related to the write-offs of deferred costs related to our private cloud hosting operations.

Non-Cash Charges to Interest Expense and Other. Non-cash charges to interest expense include the amortization of the fair value of the conversion option embedded in the 0.875% Convertible Notes issued by Allscripts during the fourth quarter of 2019. Other includes certain other income and expense and impairments on long-term investments.

Tax Rate Alignment. Tax rate alignment aligns the applicable period’s effective tax rate to the expected annual non-GAAP effective tax rate.

Management also believes that non-GAAP gross profit, income from operations, effective income tax rate, net income, diluted earnings per share, Adjusted EBITDA, Adjusted EBITDA margin and free cash flow provide useful supplemental information to management and investors regarding the underlying performance of Allscripts business operations. Acquisition accounting adjustments, transaction, and other costs recorded in accordance with GAAP can make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP adjustments provided and discussed herein.

Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use non-GAAP gross profit, operating income, net income, diluted earnings per share, Adjusted EBITDA and/or Adjusted EBITDA margin to measure achievement under Allscripts stock and cash incentive compensation plans. Note, however, that non-GAAP gross profit, operating income, net income, diluted earnings per share, Adjusted EBITDA and Adjusted EBITDA margin are performance measures only, and they do not provide any measure of cash flow or liquidity. Allscripts considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after capital expenditures and capitalized software costs. Free cash flow provides management and investors a valuable measure to determine the quantity of capital generated that can be deployed to create additional shareholder value by a variety of means. Non-GAAP financial measures are not in accordance with, or an alternative for, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Allscripts results of operations as determined in accordance with GAAP. Investors and potential investors are encouraged to review the definitions and reconciliations of non-GAAP financial measures with GAAP financial measures contained within the attached condensed consolidated financial statements.

Investors:

Jenny Gelinas

312-506-1237

jenny.gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

Concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

07/21/2022

Allscripts to Release Second-Quarter 2022 Financial Results August 4

CHICAGO–(BUSINESS WIRE)–Jul. 21, 2022–
Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) will report its financial results for the three months ended June 30, 2022 after the close of stock market hours on Thursday, August 4, 2022. Allscripts management plans to host a conference call and webcast to discuss the company’s earnings at 4:30 p.m. Eastern Time that same day.

Second-Quarter 2022 Financial Results Call Details

The Allscripts earnings announcement will be distributed immediately after the close of regular stock market hours on Thursday, August 4, 2022. The announcement will also be available at Allscripts investor relations website.

To listen to the conference call, participants may log onto the Allscripts Investor Relations website. Participants also may access the conference call by dialing (888) 428-7458 or (404) 267-0368 and requesting Conference ID # 13731642.

A replay of the call will be available approximately two hours after the conclusion of the call, for a period of six months, on the Allscripts investor relations website.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Amanda Cohen

412-919-2417

Amanda.Cohen@veradigm.com

Source: Allscripts Healthcare Solutions, Inc.

07/19/2022

Pulse8 Receives NCQA Measure Certification™ for HEDIS® MY2022 for Qualit8™, a Veradigm Network Solution

CHICAGO–(BUSINESS WIRE)–Jul. 19, 2022–
Pulse8 is thrilled to announce that Qualit8, a Veradigm Network Solution, has achieved MY2022 Measure Certification from the National Committee for Quality Assurance (NCQA) for the third consecutive year. Veradigm® is a leading provider of healthcare data, analytics and technology solutions and a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX). By earning NCQA Measure Certification, the industry’s most rigorous assessment, Qualit8 demonstrates a commitment to delivering value and administrative efficiency to health plan customers.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220719005124/en/

Combining our Qualit8 Quality Improvement Analytics with an NCQA-Certified HEDIS® Measurement Certification Program allows health plans to gain line of sight into HEDIS measure performance and optimize gap closure workflows towards maximum efficiency.

Pulse8’s NCQA-Certified HEDIS MY2022 Measure program includes:

  • HEDIS Health Plan Measures Certification
  • Allowable Adjustment Measures Certification
  • ECDS Measures Certification
  • Hybrid Sampling Certification

“This certification is a prime example of how Veradigm continues to deliver industry-leading, transparent analytics to our health plan customers,” says President and Chief Commercial Officer Tom Langan. “As a Veradigm Network solution, Qualit8’s NCQA-Certified HEDIS® Measurement and Reporting Software provides health plans with a higher level of value by helping reduce healthcare spending, waste and improving administrative efficiency.”

You can learn more about Qualit8 Certification and Veradigm’s full suite of products at https://veradigm.com/quality-analytics/.

NCQA is a private, non-profit organization dedicated to improving health care quality. NCQA Measure Certification Program™ is a trademark of the National Committee for Quality Assurance (NCQA). HEDIS® is a registered trademark of the of the National Committee for Quality Assurance (NCQA).

About Veradigm®

Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. Some healthcare technology companies deliver clinical data for biopharma and health plans, some help turn that data into insights, others serve healthcare providers directly by providing point-of-care clinical software and patient outreach platforms. Veradigm does it all. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions, all working together to transform healthcare insightfully.

For more information on Veradigm, visit www.veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Katie Wilson

802-264-6212

Katherine.Wilson@veradigm.com

Source: Allscripts Healthcare, LLC

06/29/2022

Veradigm Issued Patent for Risk Adjustment Method and Apparatus

Veradigm is providing health plans with a patent-protected method to support risk adjustment programs through “Dynamic Intervention Planning”

CHICAGO–(BUSINESS WIRE)–Jun. 29, 2022–
Veradigm, a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX), today announced that its method and apparatus for risk adjustment patent (“Dynamic Intervention Planning”) has been issued by the United States Patent and Trademark Office (USPTO).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220629005232/en/

The patent covers the systems that power Veradigm’s Dynamic Intervention Planning process. These systems enable Veradigm’s clients to find, size, monetize, prioritize, and resolve opportunities across different lines of business.

“Dynamic Intervention Planning can result in a greater risk adjustment lift for our clients. It allows our clients to properly focus their efforts to be more impactful,” says Tom Langan, President and Chief Commercial Officer of Veradigm. “This means less waste, greater precision in revenue projections, and more control over how our clients manage their programs.”

Through this patent, only Veradigm can identify service item management opportunities, ascribe levels of confidence, and size Risk Adjustment Factor points. This Veradigm Network solution can also recommend and prioritize interventions, communicate opportunities for action electronically to external devices, and dynamically update all of this as the health plan member’s data builds and refines over time.

About Veradigm®

Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. Some healthcare technology companies deliver clinical data for biopharma and health plans, some help turn that data into insights, others serve healthcare providers directly by providing point-of-care clinical software and patient outreach platforms, Veradigm does all of these and more. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions, all working together to transform healthcare insightfully.

For more information on Veradigm, visit www.veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Amanda Cohen

412-919-2417

Amanda.Cohen@veradigm.com

Source: Allscripts Healthcare Solutions

05/11/2022

Veradigm Presentations at ISPOR 2022 Highlight Broader Access to and Integration of Real-world Data Sources

Covid-19 Dashboard highlights risk factors for unvaccinated, vaccination gaps, and social disparities

CHICAGO–(BUSINESS WIRE)–May 11, 2022–
Researchers from Veradigm®, a leading provider of healthcare data and technology solutions, will present health economics and outcomes research (HEOR) data on Covid-19, diabetes, NASH (Non-Alcoholic Steatohepatitis), and cardiovascular disease at the International Society for Pharmacoeconomics and Outcomes Research (ISPOR) in Washington, D.C. from May 15-18, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220511005419/en/

“Accessing real-world data from across a variety of sources provides rich evidence for better decision-making and improved clinical outcomes for patients,” said Tom Langan, Allscripts President and Chief Commercial Officer. “We’re pleased to demonstrate how Veradigm provides tools that contribute to public health initiatives, like the Covid-19 Dashboard guiding outreach to underserved communities, or identifying risk factors with research that supports patients diagnosed with NASH earlier in their diagnosis or treatment.”

Key data presentations at ISPOR 2022 include:

Covid-19

Real-World Data Dashboard Integrating Public Health & EHR Data for Identifying COVID-19 Vaccination Gaps in the US. L. Kallenbach. CODE: EPH60. May 17th 9:45 AM – 1:15 PM EDT.

SARS-COV-2 Vaccine Breakthrough Infection Rates Based Data from 3 EHRS. J. Overcash. CODE: RWD72. May 17th 9:45 AM – 1:15 PM EDT.

NASH

Assessing Cardiovascular Disease (CVD) Risk By Fibrosis Stage Defined By Fibrosis-4 (FIB-4) Among Patients with Non-Alcoholic Steatohepatitis (NASH) Using Real World Data (RWD). A. Bogdanov. CODE: EPH141. May 18th 9:00 AM – 12:45 PM EDT.

Comparing Fibrosis Staging Approaches Among Patients with Non-Alcoholic Steatohepatitis (NASH) Using Real World Data (RWD). A. Bogdanov. CODE: EPH161. May 16th 3:00 – 6:30 PM EDT.

Diabetes

Comparing Techniques for Mining HBA1C Data in Ambulatory EHRS for Use in RWE Research. N. Nguyen. CODE: RWD52. May 16th 3:00 – 6:30 PM EDT.

Artificial Intelligence (AI)

Categorizing Telemedicine Visits Using Natural Language Processing and Machine Learning. T. Sudaria. CODE: RWD112. May 17th 3:00 – 6:30 PM EDT.

Evaluating a Privacy Preserving Record Linkage (PPRL) Solution to Link De-identified Patient Records in RWD Using Default Matching Methods and Machine Learning Methods. N. Nguyen. CODE: RWD103. May 17th 3:00 – 6:30 PM EDT.

Additional presentations at ISPOR include Veradigm’s Comparing Registry and Electronic Health Record (EHR) Data for Real-World Evidence Generation: Heart Failure as a Case Study on Tuesday, May 17 at 12:45 p.m. EDT. This presentation examines how generating real-world evidence (RWE) from heart failure patients requires clinical data elements not commonly found in administrative databases and has the potential to further understanding in heart failure management. Data were compared and contrasted from two different data sources, Veradigm’s PINNACLE® Registry, a large cardiovascular disease registry developed by the American College of Cardiology, with those identified in the Practice Fusion ambulatory electronic health record (EHR) database.

For more presentation information titles, please visit ISPOR 2022.

About Veradigm®

Veradigm® is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. Some healthcare technology companies deliver clinical data for biopharma and health plans, some help turn that data into insights, others serve healthcare providers directly by providing point-of-care clinical software and patient outreach platforms. Only Veradigm does it all. In combination with Veradigm’s companies and solutions, the Veradigm Network features a dynamic community of companies providing advanced insights, technology, and data-driven solutions, all working together to transform healthcare insightfully.

For more information on Veradigm, visit www.veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

05/05/2022

Allscripts Announces First Quarter of 2022 Results
  • First quarter GAAP diluted EPS of $0.17; non-GAAP diluted EPS of $0.13
  • Closed the sale of Hospital & Large Physician Practices business segment to Constellation Software
  • Generated $35 million of cash flow from continuing operations in the quarter

CHICAGO–(BUSINESS WIRE)–May 5, 2022–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three months ended March 31, 2022.

First quarter 2022 Veradigm revenue was $136 million compared with $126 million in the first quarter of 2021. On a consolidated Allscripts basis first quarter 2022 revenue was $143 million compared with $134 million in the first quarter of 2021.

On a GAAP basis in the first quarter of 2022, Veradigm income from operations was $18 million compared with $11 million in the first quarter of 2021. Veradigm Non-GAAP income from operations in the first quarter of 2022 was $26 million compared with $19 million in the first quarter of 2021. On a consolidated basis in the first quarter of 2022, GAAP income from operations was $7 million compared with income from operations in the first quarter of 2021 of $8 million. Non-GAAP income from operations in the first quarter of 2022 was $24 million compared with $16 million in the first quarter of 2021.

Veradigm Adjusted EBITDA totaled $35 million in the first quarter of 2022 compared with $28 million in the first quarter of 2021. On a consolidated Allscripts basis Adjusted EBITDA totaled $34 million in the first quarter of 2022 compared with $26 million in the first quarter of 2021.

Consolidated GAAP net income in the first quarter of 2022 totaled $23 million compared with $9 million in the first quarter of 2021. Non-GAAP net income in the first quarter of 2022 was $16 million compared with $11 million in the first quarter of 2021.

Consolidated GAAP diluted earnings per share in the first quarter of 2022 were $0.17 compared with $0.06 in the first quarter of 2021. Non-GAAP diluted earnings per share in the first quarter of 2022 were $0.13 compared with $0.08 in the first quarter of 2021.

On April 29, 2022, Allscripts amended its Credit Agreement to extend maturity for an additional five years and improve pricing. The amendment consists of a $700 million senior secured revolving facility.

Stock repurchases totaled $50 million in the first quarter of 2022.

“Earlier this week we announced completion of the sale of Allscripts Hospital & Large Physician Practices business to Constellation Software. I firmly believe this transaction enables both companies to fuel their respective future growth strategies and continue to provide additional value to clients, employees, and shareholders,” said Paul M. Black, Allscripts Chief Executive Officer. “In the first quarter we delivered solid results, reporting strong year-over-year growth in revenue, gross profit, Adjusted EBITDA, margins and free cash flow.”

2022 Financial Outlook(1)

Allscripts is affirming its prior annual outlook and currently expects to achieve:

  • Veradigm revenue growth year-over-year between 6% to 7%
  • Veradigm adjusted EBITDA growth year-over-year between 10% to 15%
  • Free cash flow from continuing operations between $110 million to $120 million.

Conference Call

Allscripts will conduct a conference call today, Thursday, May 5, 2022, at 4:30 PM Eastern Time to discuss its earnings release and other information. Participants may access the conference call via webcast at http://investor.allscripts.com. Participants also may access the conference call by dialing +1 (877) 269-7756 or +1 (201) 689-7817 (international) and requesting Conference ID # 13728930.

A replay of the call will be available approximately two hours after the conclusion of the call, for a period of four weeks, on the Allscripts Investor Relations website or by calling +1 (877) 660-6853 or +1 (201) 612-7415 – Conference ID # 13728930.

Supplemental and non-GAAP financial information is also available at http://investor.allscripts.com.

 

Footnote

 

(1)

In providing financial guidance, the company does not reconcile Adjusted EBITDA and free cash flow to the corresponding GAAP financial measures. Allscripts does not provide guidance for the various reconciling items since certain items that impact GAAP net operating income and operating cash flow such as acquisition-related amortization, and transaction and other costs, any of which may be significant, are outside of its control and/or cannot be reasonably predicted. Please see the “Explanation of Non-GAAP Financial Measures” at the end of this press release for detailed information on calculating non-GAAP measures. For a reconciliation of other non-GAAP financial measures, see the non-GAAP financial reconciliation tables in this release (Tables 4, 5, 6, 8 and 10).

 

NOTE: All percentage changes described within this press release are calculated from full dollar amounts as illustrated in the accompanying financial statements posted on the Investor Relations website. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body compared to full dollar amounts in the tables.

About Allscripts

Allscripts (Nasdaq: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our 2022 outlook, the disposition of Hospitals and Large Physician Practices Business, our profitability initiatives, our strategic priorities and our client outcomes. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” “look forward,” “pipeline” and similar terms. Actual results could differ significantly from those set forth in the forward-looking statements, and reported results should not be considered an indication of future performance or events.

Certain factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to: our ability to achieve the margin targets associated with our margin improvement initiatives within the contemplated time periods, if at all; the magnitude, severity and duration of the COVID-19 pandemic, including the impacts of the pandemic, along with the impacts of our responses and the responses by governments and other businesses to the pandemic, on our business, our employees, our clients and our suppliers; security breaches resulting in unauthorized access to our or our clients’ computer systems or data, including denial-of-services, ransomware or other Internet-based attacks; the failure by Practice Fusion to comply with the terms of the settlement agreements with the U.S. Department of Justice (the “DOJ”); the costs and burdens of compliance by Practice Fusion with the terms of its settlement agreements with the DOJ; additional investigations and proceedings from governmental entities or third parties other than the DOJ related to the same or similar conduct underlying the DOJ’s investigations into Practice Fusion’s business practices; our ability to recover from third parties (including insurers) any amounts paid in connection with Practice Fusion’s settlement agreements with the DOJ and related inquiries; the expected financial results of businesses acquired by us; the successful integration of businesses acquired by us; the anticipated and unanticipated expenses and liabilities related to businesses acquired by us, including the civil investigation by the U.S. Attorney’s Office involving our Enterprise Information Solutions business; other risks associated with investments and acquisitions; risks associated with disposition of the Hospitals and Large Physicians Practices Business, our failure to compete successfully; consolidation in our industry; current and future laws, regulations and industry initiatives; increased government involvement in our industry; the failure of markets in which we operate to develop as quickly as expected; our or our customers’ failure to see the benefits of government programs; changes in interoperability or other regulatory standards; our ability to maintain and expand our business with existing clients or effectively transition clients to newer products; the effects of the realignment of our sales, services and support organizations; market acceptance of our products and services; the unpredictability of the sales and implementation cycles for our products and services; our ability to manage future growth; our ability to introduce new products and services; our ability to establish and maintain strategic relationships; risks associated with investments and acquisitions; the performance of our products; our ability to protect our intellectual property rights; the outcome of legal proceedings involving us; our ability to hire, retain and motivate key personnel; performance by our content and service providers; liability for use of content; price reductions; our ability to license and integrate third-party technologies; risks related to global operations; variability of our quarterly operating results; risks related to our outstanding indebtedness; changes in tax rates or laws; business disruptions; our ability to maintain proper and effective internal controls; and asset and long-term investment impairment charges. Additional information about these and other risks, uncertainties, and factors affecting our business is contained in our filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Qs. We do not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in our business, financial condition or operating results over time. 

 
 
 
 

Table 1

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2022

 

2021

ASSETS
Current assets:
Cash and cash equivalents

$82.8

$132.5

Restricted cash

1.3

1.3

Accounts receivable, net

170.5

171.6

Contract assets

55.1

63.5

Prepaid expenses and other current assets

56.2

60.5

Assets held for sale

1,174.7

1,125.1

Total current assets

$1,540.6

$1,554.5

Fixed assets, net

9.3

9.8

Software development costs, net

78.3

74.7

Intangible assets, net

158.3

149.7

Goodwill

520.2

506.6

Deferred taxes, net

6.1

0.0

Contract assets – long-term

19.2

28.2

Right-of-use assets – operating leases

16.8

18.3

Other assets 

81.4

83.4

Total assets

$2,430.2

$2,425.2

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$15.5

$5.3

Accrued expenses

61.8

54.5

Accrued compensation and benefits

18.0

31.1

Deferred revenue

106.5

120.7

Current operating lease liabilities

6.0

6.1

Liabilities related to assets held for sale

439.0

380.3

Total current liabilities

646.8

598.0

Long-term debt 

377.1

350.1

Deferred revenue

3.6

1.8

Deferred taxes, net

0.0

16.6

Long-term operating lease liabilities

15.2

16.8

Other liabilities

34.4

33.8

Total liabilities

$1,077.1

$1,017.1

Total stockholders’ equity

$1,353.1

$1,408.1

Total liabilities and stockholders’ equity

$2,430.2

$2,425.2

 
 
 
 
 
Table 2
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
 

Three Months Ended March 31,

2022

 

2021

Revenue:
Provider

$118.7

 

$111.2

 

Payer & Life Sciences

24.0

 

22.5

 

Total Revenue

142.7

 

133.7

 

Cost of revenue:
Provider

57.0

 

58.7

 

Payer & Life Sciences

12.2

 

12.1

 

Total cost of revenue

69.2

 

70.8

 

Gross profit

73.5

 

62.9

 

Selling, general and administrative expenses 

41.3

 

32.2

 

Research and development

23.4

 

20.6

 

Amortization of intangible and acquisition-related assets

2.2

 

2.4

 

Income (loss) from operations

6.6

 

7.7

 

Interest expense, net (a)

(2.1

)

(3.1

)

Other

(0.4

)

0.8

 

Income (loss) before income taxes

4.1

 

5.4

 

Income tax (provision) benefit

14.4

 

(1.1

)

Income (loss) from continuing operations, net of tax

18.5

 

4.3

 

Income (loss) from discontinued operations

(5.0

)

5.9

 

Gain (loss) on sale of discontinued operations

0.0

 

0.6

 

Income tax (provision) from discontinued operations

9.4

 

(1.7

)

Income (loss) from discontinued operations, net of tax

4.4

 

4.8

 

Net Income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders

$22.9

 

$9.1

 

 
Diluted earnings per Common Share:
Income (loss) from continuing operations, net of tax

$18.5

 

$4.3

 

Plus: Interest expense, net of tax, associated with 0.875% Convertible Senior Notes

$0.5

 

$0.0

 

Income (loss) from continuing operations, net of tax after the effect of assumed conversions

19.0

 

4.3

 

Income (loss) from discontinued operations, net of tax

4.4

 

4.8

 

Adjusted Net Income (loss) earnings per Common Share

$23.4

 

$9.1

 

 
Income (loss) from continuing operations per share – basic

$0.16

 

$0.03

 

Income (loss) from discontinued operations per share – basic

$0.04

 

$0.03

 

Income (loss) per share – basic

$0.20

 

$0.06

 

Adjusted Income (loss) from continuing operations per share – diluted

$0.14

 

$0.03

 

Income (loss) from discontinued operations per share – diluted

$0.03

 

$0.03

 

Adjusted Income (loss) per share – diluted

$0.17

 

$0.06

 

 
Weighted average common shares outstanding:
Basic

115.9

 

140.2

 

Diluted

138.7

 

149.1

 

 

Three Months Ended March 31,

2022

 

2021

 
(a) Interest expense, net is comprised of the following for the periods presented:
Interest expense

(1.5

)

(1.3

)

Interest income

0.1

 

0.1

 

Non-cash charges to interest expense

(0.6

)

(1.9

)

Interest expense, net

($2.1

)

($3.1

)

 
 
 
 
 

Table 3

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Cash flows from operating activities:
Net income (loss)

$22.9

 

$9.1

 

Less: Income(loss) from discontinued operations

4.4

 

4.8

 

Income (loss) from continuing operations

$18.5

 

$4.3

 

Non-cash adjustments to net income (loss):
Depreciation and amortization

14.1

 

16.2

 

Non-cash lease expense, net

(3.2

)

(1.8

)

Stock-based compensation expense

6.3

 

2.8

 

Deferred Taxes

(17.0

)

4.7

 

Other (income) loss, net

0.6

 

0.7

 

Total non-cash adjustments to net income (loss)

0.8

 

22.6

 

Cash impact of changes in operating assets and liabilities:
Assets

31.6

 

24.2

 

Liabilities

(16.4

)

(36.0

)

Total cash impact of changes on operating assets and liabilities

15.2

 

(11.8

)

Net cash provided by (used in) operating activities – Continuing operations

34.5

 

15.1

 

Net cash provided by (used in) operating activities  – Discontinued operations

34.8

 

(10.6

)

Net cash provided by (used in) operating activities

69.3

 

4.5

 

Cash flows from investing activities:
Capital expenditures

(0.4

)

(0.2

)

Capitalized software

(9.6

)

(8.1

)

Cash paid for business acquisitions, net of cash acquired

(24.1

)

0.0

 

Sale of businesses and other investments, net of cash divested and distributions received

1.1

 

1.7

 

Purchases of equity securities, other investments and related intangible assets, net

0.0

 

(0.2

)

Cash provided by (used in) investing activities – Continuing Operations

(33.0

)

(6.8

)

Cash provided by (used in) investing activities – Discontinued Operations

(11.2

)

(12.2

)

Net cash provided by (used in) investing activities

(44.2

)

(19.0

)

Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards

(13.3

)

(4.7

)

Credit facility payments

(25.0

)

0.0

 

Credit facility borrowings, net of issuance costs

25.0

 

0.0

 

Repurchase of common stock

(49.7

)

0.0

 

Intercompany to/from parent/subsidiaries

11.7

 

28.3

 

Payment of acquisition and other financing obligations

0.0

 

(1.5

)

Net cash provided by (used in) financing activities – continuing operations

(51.3

)

22.1

 

Net cash provided by (used in) financing activities – discontinued  operations

(11.7

)

(29.6

)

Net cash provided by (used in) financing activities

(63.0

)

(7.5

)

Effect of exchange rate changes on cash and cash equivalents

0.0

 

0.0

 

Net increase (decrease) in cash and cash equivalents

(37.9

)

(22.0

)

Cash, cash equivalents and restricted cash, beginning of period

190.5

 

537.5

 

Cash, cash equivalents and restricted cash, end of period

$152.6

 

$515.5

 

Less: Cash and cash equivalents and restricted cash included in current assets held for sale

($68.5

)

($60.4

)

Cash, cash equivalents and restricted cash, end of period, excluding assets held for sale

$84.1

 

$455.1

 

 
 
 
 
 

Table 4

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions, except per share amounts and percentages)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Gross profit, as reported  

$73.5

 

$62.9

 

Acquisition-related amortization  

1.6

 

1.8

 

Stock-based compensation expense  

0.3

 

0.3

 

Total non-GAAP gross profit  

$75.4

 

$65.0

 

   
Income (loss) from operations, as reported  

$6.6

 

$7.7

 

Acquisition-related amortization  

3.8

 

4.2

 

Stock-based compensation expense   

6.9

 

4.0

 

Transaction and other  

6.6

 

0.0

 

Total non-GAAP income from operations  

$23.9

 

$15.9

 

   
Adjusted Net Income (loss) earnings per Common Share  

$23.4

 

$9.1

 

Loss (income) from discontinued operations  

5.0

 

(5.9

)

(Gain) on sale of business, net from discontinued operations  

0.0

 

(0.6

)

Income tax provision from discontinued operations  

(9.4

)

1.7

 

Income (loss) from continuing operations, net of tax after the effect of assumed conversions  

$19.0

 

$4.3

 

Less: Interest expense, net of tax, associated with 0.875% Convertible Senior Notes  

(0.5

)

0.0

 

Income (loss) from continuing operations, net of tax  

$18.5

 

$4.3

 

Acquisition-related amortization  

3.8

 

4.2

 

Stock-based compensation expense   

6.9

 

4.0

 

Transaction and other  

6.6

 

0.0

 

Non-cash charges to interest expense and other  

0.0

 

1.3

 

Tax rate alignment  

(19.6

)

(2.6

)

Non-GAAP net income attributable to Allscripts Healthcare Solutions, Inc.  

$16.2

 

$11.2

 

   
Non-GAAP effective tax rate  

24

%

24

%

   
Weighted shares outstanding – basic  

115.9

 

140.2

 

Weighted shares outstanding – diluted  

138.7

 

149.1

 

Less the net effect of convertible notes and note hedges  

(13.6

)

(2.6

)

Non-GAAP Weighted shares outstanding – diluted  

125.1

 

146.5

 

   
GAAP Adjusted Income (loss) from continuing operations per share – diluted  

$0.17

 

$0.06

 

Non-GAAP Income (loss) per share – diluted  

$0.13

 

$0.08

 

 
 
 
 
 

Table 5

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information – Adjusted EBITDA

(In millions, except percentages)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Income (loss) from operations, as reported

$6.6

 

$7.7

 

Plus:
Depreciation and amortization

13.6

 

14.4

 

Stock-based compensation expense

6.9

 

4.0

 

Transaction and other

6.6

 

0.0

 

Adjusted EBITDA

$33.7

 

$26.1

 

 
Adjusted EBITDA margin (a)  

23.6

%

19.5

%

 
(a) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
 
 
 
 
 

Table 6

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information – Free Cash Flow

(In millions)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Net cash provided by (used in) operating activities – continuing operations

$34.5

 

$15.1

 

Cash flows from investing activities:
Capital expenditures

(0.4

)

(0.2

)

Capitalized software

(9.6

)

(8.1

)

Free cash flow

$24.5

 

$6.8

 

 
 
 
 
 

Table 7

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information from Continuing Operations – Segment Details

(In millions)

(unaudited)

  

2021

 

2022 

Q1

Q2

Q3

Q4

Total

 

Q1

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

Revenue

126.4

133.4

137.2

155.2

552.2

 

136.3

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

Income from operations

19.0

25.2

24.2

42.4

110.8

 

25.5

Adjusted EBITDA

28.4

35.3

34.5

51.9

150.1

 

35.2

Adjusted EBITDA margin

22.5%

26.5%

25.1%

33.4%

27.2%

 

25.8%

Unallocated, Non-GAAP

 

 

 

 

 

 

 

Revenue

7.3

7.8

7.5

6.0

28.6

 

6.4

Gross Profit

4.3

4.8

3.9

3.3

16.3

 

4.3

Income from operations

(3.1)

(0.8)

1.4

6.3

3.8

 

(1.6)

Adjusted EBITDA

(2.2)

0.0

1.7

6.3

5.8

 

(1.5)

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

Revenue

133.7

141.2

144.7

161.2

580.8

 

142.7

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

Gross margin

48.6%

49.9%

49.5%

55.8%

51.2%

 

52.8%

Income from operations

15.9

24.4

25.6

48.7

114.6

 

23.9

Adjusted EBITDA

26.2

35.3

36.2

58.2

155.9

 

33.7

Adjusted EBITDA margin

19.6%

25.0%

25.0%

36.1%

26.8%

 

23.6%

 
 
 
 
 

Table 8

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information Reconciliation – Segment Details

(In millions)

(unaudited)

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Total Veradigm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

$126.4

$133.4

$137.2

$155.2

$552.2

 

$136.3

 

 

 

 

 

 

 

Gross profit, GAAP

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

$11.4

$17.9

$16.9

$35.2

$81.4

 

$18.1

Acquisition-related amortization

4.2

4.2

4.1

3.9

16.4

 

3.8

Stock-based compensation expense

3.4

3.1

3.2

3.3

13.0

 

3.6

Non-GAAP Income (loss) from operations

$19.0

$25.2

$24.2

$42.4

$110.8

 

$25.5

 

 

 

 

 

 

 

Asset Impairment Charges

0.0

0.2

0.6

0.0

0.8

 

0.0

Depreciation and amortization

9.4

9.9

9.7

9.5

38.5

 

9.7

Adjusted EBITDA

$28.4

$35.3

$34.5

$51.9

$150.1

 

$35.2

 

 

 

 

 

 

 

Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

$7.3

$7.8

$7.5

$6.0

$28.6

 

$6.4

 

 

 

 

 

 

 

Gross Profit, as reported

$4.3

$4.8

$3.9

$3.3

$16.3

 

$4.3

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

($3.7)

($1.1)

$1.5

$6.4

$2.9

 

($11.5)

Stock-based compensation expense

0.6

0.3

(0.1)

(0.1)

0.9

 

3.3

Transaction and other

0.0

0.0

0.0

0.0

0.0

 

6.6

Non-GAAP Income (loss) from operations

($3.1)

($0.8)

$1.4

$6.3

$3.8

 

($1.6)

 

 

 

 

 

 

 

Depreciation and amortization

0.9

0.8

0.3

0.0

2.0

 

0.1

Adjusted EBITDA

($2.2)

$0.0

$1.7

$6.3

$5.8

 

($1.5)

 
 
 
 
 

Table 9

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information from Continuing Operations – Revenue and Gross Profit Details

(In millions)

(unaudited)

 

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Veradigm Provider, Non-GAAP

 

 

 

 

 

 

 

Revenue

103.9

108.1

110.8

126.3

449.0

 

112.3

Gross profit

49.8

52.4

54.2

70.6

227.0

 

58.8

Gross margin

47.9%

48.5%

48.9%

55.9%

50.6%

 

52.4%

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

Revenue

22.5

25.3

26.5

28.9

103.2

 

24.0

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

Revenue

126.4

133.4

137.3

155.2

552.2

 

136.3

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

 

 

 

 

 

 

 

Allscripts Consolidated Provider, Non-GAAP

 

 

 

 

 

 

 

Revenue

111.2

115.9

118.3

132.3

477.6

 

118.7

Gross profit

54.1

57.2

58.1

73.9

243.3

 

63.1

Gross margin

48.7%

49.4%

49.1%

55.9%

50.9%

 

53.2%

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

Revenue

22.5

25.3

26.5

28.9

103.2

 

24.0

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

 

 

 

 

 

 

 

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

Revenue

133.7

141.2

144.8

161.2

580.8

 

142.7

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

Gross margin

48.6%

49.9%

49.4%

55.8%

51.2%

 

52.8%

 
 
 
 
 

Table 10

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information Reconciliation  – Revenue and Gross Profit Details

(In millions)

(unaudited)

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Veradigm Provider

 

 

 

 

 

 

 

Gross profit, as reported 

$48.2

$50.8

$52.6

$69.0

$220.6

 

$57.4 

Acquisition-related amortization

1.3

1.3

1.3

1.3

5.2

 

1.1

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$49.8

$52.4

$54.2

$70.6

$227.0

 

$58.8 

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences

 

 

 

 

 

 

 

Gross profit, as reported 

$10.4

$12.8

$13.1

$15.6

$51.9

 

$11.8 

Acquisition-related amortization

0.5

0.5

0.4

0.5

1.9

 

0.5

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

Non-GAAP Gross profit 

$10.9

$13.3

$13.5

$16.1

$53.8

 

$12.3 

 

 

 

 

 

 

 

Total Veradigm

 

 

 

 

 

 

 

Gross profit, as reported 

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2 

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1 

 

 

 

 

 

 

 

Allscripts Consolidated Provider

 

 

 

 

 

 

 

Gross profit, as reported 

$52.5

$55.6

$56.5

$72.3

$236.9

 

$61.7 

Acquisition-related amortization

1.3

1.3

1.3

1.3

5.2

 

1.1

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$54.1

$57.2

$58.1

$73.9

$243.3

 

$63.1 

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences

 

 

 

 

 

 

 

Gross profit, as reported 

$10.4

$12.8

$13.1

$15.6

$51.9

 

$11.8 

Acquisition-related amortization

0.5

0.5

0.4

0.5

1.9

 

0.5

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

Non-GAAP Gross profit 

$10.9

$13.3

$13.5

$16.1

$53.8

 

$12.3 

 

 

 

 

 

 

 

Total Allscripts Consolidated

 

 

 

 

 

 

 

Gross profit, as reported 

$62.9

$68.4

$69.6

$87.9

$288.8

 

$73.5 

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$65.0

$70.5

$71.6

$90.0

$297.1

 

$75.4 

 

Explanation of Non-GAAP Financial Measures

Allscripts reports its financial results in accordance with U.S. generally accepted accounting principles, or GAAP. To supplement this information, Allscripts presents non-GAAP gross profit, income from operations, Adjusted EBITDA, Adjusted EBITDA margin, effective income tax rate, net income, diluted earnings per share and free cash flow, which are considered non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. The definitions of non-GAAP financial measures are presented below:

  • Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related amortization and; stock-based compensation expense. Non-GAAP gross margin consists of non-GAAP gross profit as a percentage of revenue in the applicable period. Reconciliations to GAAP gross profit are found in Tables 4, 8 and 10 within this press release.
  • Non-GAAP income from operations consists of GAAP income (loss) from operations, as reported, and excludes acquisition-related amortization; stock-based compensation expense; and transaction and other costs. Reconciliations to GAAP income (loss) from operations are found in Tables 4 and 8 within this press release.
  • Adjusted EBITDA is a non-GAAP measure and consists of GAAP income/(loss) from operations, as reported, and adjusts for: depreciation and amortization; stock-based compensation expense; and transaction and other costs. Reconciliations to GAAP income/(loss) from operations are found in Tables 5 and 8 within this press release.
  • Adjusted EBITDA margin is a non-GAAP measure that is calculated by dividing Adjusted EBITDA by revenue. See the reconciliations in Tables 5 and 8 within this press release with respect to Adjusted EBITDA.
  • Non-GAAP effective income tax rate is based on non-GAAP pre-tax earnings and consists of the statutory federal income tax rate, Allscripts effective state income tax rate and adjustments for permanent differences.
  • Non-GAAP net income attributable to Allscripts Healthcare Solutions, Inc. consists of GAAP net income/(loss) from continuing operations, as reported, and adds back acquisition-related amortization; stock-based compensation expense; transaction and other costs; and non-cash charges to interest expense and other. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income/(loss) attributable to Allscripts Healthcare Solutions, Inc. are found in Table 4 within this press release.
  • Non-GAAP diluted weighted shares outstanding consists of diluted weighted shares outstanding, as reported, less the dilutive impact of 0.875% convertible notes due to the intent to settle the principal in cash and shares to be delivered at settlement by the convertible note hedge.
  • Non-GAAP diluted earnings per share consist of non-GAAP net income, as defined above, divided by non-GAAP diluted weighted shares outstanding, as defined above, during the applicable period.
  • Free cash flow consists of GAAP cash flows from continuing operations in the applicable period, net of capital expenditures and capitalized software costs. Reconciliations to GAAP cash flows from continuing operations are found in Table 6 within this press release.

Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. Allscripts excludes acquisition-related amortization expense from non-GAAP gross profit, non-GAAP operating income, and non-GAAP net income because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods because of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods.

Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. Allscripts excludes stock-based compensation expense from non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods.

Transaction and Other Costs. Transaction and other costs relate to certain legal proceedings and investigations, consulting, severance, incentive compensation and other charges incurred in connection with activities that are considered not reflective of our core business. Other costs also include non-cash impairment charges based on management’s assessment of the likelihood of near-term recovery of the investments’ value.

Allscripts excludes transaction and other costs, in whole or in part, from non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Allscripts business operations and (ii) such expenses can vary significantly between periods.

Non-Cash Charges to Interest Expense and Other. Non-cash charges to interest expense include the amortization of the fair value of the conversion option embedded in the 0.875% Convertible Notes issued by Allscripts during the fourth quarter of 2019. Other includes certain other income and expense and impairments on long-term investments.

Tax Rate Alignment. Tax rate alignment aligns the applicable period’s effective tax rate to the expected annual non-GAAP effective tax rate.

Management also believes that non-GAAP gross profit, income from operations, effective income tax rate, net income, diluted earnings per share, Adjusted EBITDA, Adjusted EBITDA margin and free cash flow provide useful supplemental information to management and investors regarding the underlying performance of Allscripts business operations. Acquisition accounting adjustments, transaction, and other costs recorded in accordance with GAAP can make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP adjustments provided and discussed herein.

Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use non-GAAP gross profit, operating income, net income, diluted earnings per share, Adjusted EBITDA and/or Adjusted EBITDA margin to measure achievement under Allscripts stock and cash incentive compensation plans. Note, however, that non-GAAP gross profit, operating income, net income, diluted earnings per share, Adjusted EBITDA and Adjusted EBITDA margin are performance measures only, and they do not provide any measure of cash flow or liquidity. Allscripts considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after capital expenditures and capitalized software costs. Free cash flow provides management and investors a valuable measure to determine the quantity of capital generated that can be deployed to create additional shareholder value by a variety of means. Non-GAAP financial measures are not in accordance with, or an alternative for, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Allscripts results of operations as determined in accordance with GAAP. Investors and potential investors are encouraged to review the definitions and reconciliations of non-GAAP financial measures with GAAP financial measures contained within the attached condensed consolidated financial statements.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

05/02/2022

Allscripts Closes Sale of Hospital and Large Physician Practices Business to Constellation Software

CHICAGO–(BUSINESS WIRE)–May 2, 2022–
Allscripts Healthcare Solutions, Inc. (Nasdaq:MDRX) today announced that it has completed the sale of the net assets of the Allscripts Hospital and Large Physician Practices business segment to Constellation Software Inc. (TSX:CSU), through its wholly-owned subsidiary N. Harris Computer Corporation (“Harris”).

“This transaction enables Allscripts to strengthen its focus on high growth end markets of interest as well as provide additional value for our clients, employees, and shareholders,” said Rick Poulton, President and CFO of Allscripts.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made, and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Actual results could differ from those set forth in the forward-looking statements, and reported results should not be considered an indication of future performance. Certain factors that could cause Allscripts actual results to differ materially from those described in the forward-looking statements include, but are not limited to potential negative impacts to our earnings, risks relating to transition services or other post-disposition obligations, the diversion of management’s attention, and the use of the proceeds Allscripts received from the sale. Additional information about these and other risks, uncertainties, and factors affecting Allscripts business is contained in Allscripts filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in the most recent Allscripts Annual Report on Form 10-K and in subsequent Form 10-Qs filed with the Securities and Exchange Commission under the heading “Forward-Looking Statements and Risk Factors.” Except as required by law, Allscripts does not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in its business, financial condition or operating results over time.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

04/21/2022

Allscripts to Release First-Quarter 2022 Financial Results May 5

CHICAGO–(BUSINESS WIRE)–Apr. 21, 2022–
Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) will report its financial results for the three months ended March 31, 2022 after the close of stock market hours on Thursday, May 5, 2022. Allscripts management plans to host a conference call and webcast to discuss the company’s earnings at 4:30 p.m. Eastern Time that same day.

First-Quarter 2022 Financial Results Call Details

The Allscripts earnings announcement will be distributed immediately after the close of regular stock market hours on Thursday, May 5, 2022. The announcement will also be available at Allscripts investor relations website.

To listen to the conference call, participants may log onto the Allscripts Investor Relations website. Participants also may access the conference call by dialing 877-269-7756 or 201-689-7817 and requesting Conference ID # 13728930.

A replay of the call will be available approximately two hours after the conclusion of the call, for a period of four weeks, on the Allscripts investor relations website or by calling (877) 660-6853 or (201) 612-7415 – Conference ID # 13728930.

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2022 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

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