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06/14/2021

Leigh Burchell, Allscripts Vice President, Policy and Government Affairs, receives HIMSS21 Most Influential Women in Health IT Award

CHICAGO–(BUSINESS WIRE)–Jun. 14, 2021–
HIMSS has announced Leigh Burchell, Allscripts Vice President, Policy and Government Affairs, as a recipient of the HIMSS21 Most Influential Women in Health IT Award.

The Most Influential Women in Health IT Awards recognize and celebrate influential female leaders who harness the power of information and technology to transform health and healthcare. The winners are unique among power lists and award programs, and they are inclusive of all women of influence, no matter where they may be in the health information and technology field.

Burchell directs the Policy and Government Affairs function for Allscripts, including legislative advocacy and regulatory interpretation and comment. She is also active in many industry associations, including the Electronic Health Record Association (EHRA) as a past Chair and current leader of the Public Policy Workgroup; the eHealth Initiative, where she sits on the Leadership Council and the Policy Steering Committee; and HIMSS, where she is an active participant in the Public Policy Committee. She has relationships across the industry and experience on topics ranging from information exchange to the digital intersections between health equity and social determinants of health, information blocking to how health IT can assist with the opioid crisis.

Burchell will be recognized during the 2021 HIMSS Global Conference & Exhibition, held August 9-13, 2021 in Las Vegas, Nevada at the Venetian-Sands Expo Center.

“I appreciate HIMSS’ recognition of my hard work, and it’s been a pleasure to partner with them on numerous initiatives over my two decades at Allscripts,” said Burchell. “I admittedly tend to go on a bit when talking about opportunities for patients and healthcare as a whole now that health IT solutions are largely ubiquitous, but it is something I genuinely get excited about. So many people in my life – and me as a breast cancer survivor – have benefitted because our clinicians had a fuller picture when we were being treated, thanks to an EHR.”

Burchell continued, “The fact that health data can now be used to assess whole populations for necessary interventions or, conversely, to consider an individual’s most personalized genetic information during their treatment, is remarkable. It’s gratifying that HIMSS believes I play some small part in helping the industry move forward through my efforts to educate policy makers and other stakeholders about the many benefits of digitized health data.”

The Healthcare Information and Management Systems Society, Inc. (HIMSS) is a global advisor and thought leader supporting the transformation of the health ecosystem through information and technology.

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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

05/26/2021

Allscripts Announces New Share Repurchase Program

CHICAGO–(BUSINESS WIRE)–May 26, 2021–
Allscripts Healthcare Solutions announced today that its Board of Directors has approved a new share repurchase program under which Allscripts may purchase up to $350 million of its common stock. The new share repurchase program does not have a termination date.

The new share repurchase program replaces the previously existing share repurchase program, which authorized Allscripts to repurchase $300 million of its common stock through December 31, 2021. Allscripts repurchased the entire amount available under the prior program.

“Our strong balance sheet and financial performance enable us to expand our share repurchase program, which remains an attractive component of our capital deployment strategy,” said Rick Poulton, Allscripts President and Chief Financial Officer.

Allscripts plans to repurchase shares from time to time in the open market, through transactions that may be characterized as derivatives (including accelerated share repurchases), or in privately negotiated transactions, subject to market conditions. There is no guarantee as to the exact number of shares or value that will be repurchased under the stock repurchase program, and Allscripts may discontinue purchases at any time. Whether Allscripts makes any repurchases will depend on many factors, including but not limited to its business and financial performance, the business and market conditions at the time, including the price of Allscripts shares, and other factors that management considers relevant.

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.

© 2021 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 federal securities laws. Statements regarding future events or developments, our future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements with the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. As a result, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on our results of operations or financial condition. See our Annual Report on Form 10-K for 2020 and other public filings with the SEC for a further discussion of these and other risks and uncertainties applicable to our business. The statements herein speak only as of their date and we undertake no duty to update any forward-looking statement whether as a result of new information, future events or changes in expectations.

Investors:

Stephen Shulstein

312-386-6735

stephen.shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

05/25/2021

Veradigm Announces Collaboration With Lash Group to Streamline Patient Care

Allscripts and AmerisourceBergen businesses are accelerating the fulfillment of specialty medications through innovation and automation in support of physician practices, patient adherence and better outcomes

CHICAGO–(BUSINESS WIRE)–May 25, 2021– Veradigm®, a leading provider of data and technology solutions and a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX), today announced an agreement with Lash Group, a patient support services business, and a part of AmerisourceBergen. This relationship will enable specialty medications, supported by Lash Group, to be available for management within the Veradigm AccelRx™ platform, which streamlines the specialty enrollment process for users of Veradigm, Allscripts’ and other electronic health record (EHR) software vendors.

To obtain their specialty medication, a patient’s prescription passes through a range of healthcare stakeholders, including payers, patient support programs and pharmacies. All have long sought tech enablement, further upstream in the EHR and providers’ native workflow, to simplify and automate the analog work that drive gaps in clinical data, phone calls and faxes to the clinic and extended wait times for patients to receive their prescribed medications. Through this collaboration, Veradigm and Lash Group can deliver a frictionless solution that will drive efficiency, resulting in a streamlined process and increased speed-to-therapy.

Combining one of healthcare’s largest prescriber bases, an innovative cloud-based software solution, and decades of e-prescribing and prior authorization leadership, Veradigm AccelRx™ delivers a unique breakthrough solution that is helping to streamline specialty medication management for medical clinics and practices across the country.

“It is critical that new technologies are employed to get patients on their therapies more quickly to improve health outcomes. This strategic relationship with Lash Group is a major step in Veradigm’s progress toward expediting the specialty drug review, approval and fulfillment process,” says Tom Langan, Veradigm CEO. “In collaborating with a market leader with extensive reach like Lash Group, we enable our broad network of providers to access even more specialty medications through Veradigm AccelRx™. Together, we will make a meaningful difference for patients and the providers that serve them.”

“As the specialty pharmaceutical market has grown, we’ve continued to evolve our support to remove barriers, simplify the patient experience and accelerate patient access to the treatment they need,” said Lash Group President Tommy Bramley. “This collaboration with Veradigm is the latest example of how we are working with organizations across the industry to create robust, integrated offerings that further enhances our ability to support patients and improve their quality of life.”

Learn more about the Veradigm AccelRx™ solution here.

About Veradigm®

Veradigm is an integrated data systems and services company that combines data-driven clinical insights with actionable tools to help healthcare stakeholders improve the quality, efficiency, and value of healthcare delivery— including biopharma, health plans, healthcare providers, health technology partners, and most importantly, the patients they serve. We are dedicated to simplifying the complicated healthcare system with next-generation healthcare solutions. This is how we are transforming health, insightfully. To learn more, visit www.veradigm.com. Veradigm® is a business unit 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.

© 2021 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

Investors:
Stephen Shulstein
312-386-6735
Stephen.Shulstein@allscripts.com

Media:
Concetta Rasiarmos
312-447-2466
concetta.rasiarmos@allscripts.com

Source: Veradigm

05/13/2021

Blessing Health System Strengthens Its Allscripts Strategic Partnership

Health system selects platform of health and managed services to help achieve single clinical patient record across western Illinois, northeast Missouri and southeast Iowa

CHICAGO–(BUSINESS WIRE)–May 13, 2021–
Allscripts (NASDAQ: MDRX) is thrilled to publicize that client Blessing Health System, a not-for-profit healthcare organization located in Quincy, IL, has substantially expanded its Allscripts partnership to three facilities—Blessing Health Keokuk, Hannibal Clinic, and partner provider Scotland County Hospital. The health system has also acquired Allscripts Managed Services and has extended its agreement through 2028.

“Allscripts has been our trusted partner for more than 16 years. Its technology has helped us improve access to care and healthcare experiences for our patients,” said Maureen Kahn, President and Chief Executive Officer of Blessing Health System. “One of the greatest assets a partner like Allscripts can share with its affiliates is innovative technology. Leveraging the advanced solutions Blessing Health System and Allscripts have developed is the culmination of many parallel strategies, all converging to benefit the many communities we serve.”

Allscripts Sunrise™ is a comprehensive, contemporary platform of health, which connects all aspects of care. These including acute, ambulatory, surgical, pharmacy, radiology, and laboratory services. The platform also features an integrated revenue cycle and patient administration system. Sunrise is a clinician-friendly, evidence-based single platform with integrated analytics that helps deliver better health outcomes in hospitals around the world.

Allscripts Managed Services supports an organization’s infrastructure, Allscripts solutions and third-party applications. It also provides comprehensive service desk support and application management services, engaging in project delivery, strategic and leadership-planning activities.

“We are proud of our ability to grow and scale at the pace of our industry and our clients. This expansion aligns Allscripts long-term commitment to Blessing Health System,” said Allscripts Chief Executive Officer Paul Black. “We are honored to support Blessing’s success with our solutions as we enable the health system’s strategy of healthier connected communities. When partners share an ambitious, forward-looking, long-term vision, it creates a unique and highly valued fraternity, where we elevate a relationship to that of ‘trusted partner.’ We look forward to continued, shared success as we help Blessing provide excellent care for their ever-growing communities.”

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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Tom Lynch

312-386-6765

Tom.lynch@allscripts.com

Source: Allscripts

05/10/2021

Allscripts to Present at the 2021 Bank of America Health Care Conference

CHICAGO–(BUSINESS WIRE)–May 10, 2021–
Allscripts (NASDAQ: MDRX) today announced that certain members of its management team will present at the 2021 Bank of America Health Care conference on Tuesday, May 11 at 11:00 am ET.

The live webcast and replay can be accessed at http://investor.allscripts.com under the “Events and Presentations” section of the 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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

05/05/2021

Allscripts Announces ADP Empower to Help Amplify Diverse Voices in the Healthcare Technology Industry

CHICAGO–(BUSINESS WIRE)–May 5, 2021–
Allscripts (NASDAQ: MDRX) today announced its team that leads the Allscripts Developer Program (ADP) has launched ADP Empower, a new program designed to amplify diverse voices in the healthcare technology industry and offer valuable resources to underrepresented entrepreneurs to grow their businesses and accelerate innovation.

The Allscripts Developer Program helps build a culture of innovation by reducing barriers and risk associated with installing and using innovative healthcare technology. The company partners with developers to help deliver the tools they need to connect their innovation to Allscripts’ clients and achieve desired outcomes. Through ADP Empower, Allscripts will create a community of innovators that represents the perspectives, cultures and needs of its clients and their patients.

This initiative includes an empowerment package at no additional cost to minority-owned or led healthcare technology companies. This package includes an official Allscripts partnership, one-on-one guidance for technical, marketing and business development best practices, and client-facing opportunities to support lead generation. The goal is to provide Allscripts’ leadership, expertise, resources, technology, and support to underrepresented entrepreneurs, as well as facilitate a diverse community for fellowship and mentorship.

“Allscripts is determined to do our part to support diversity, equity and inclusion—both within Allscripts and beyond our walls,” said Allscripts Chief Executive Officer Paul Black. “As an extension of all the work we are doing inside Allscripts to nurture a workplace of DE&I, ADP Empower will help underrepresented entrepreneurs by supporting new technology, engaging with a diverse community, educating to fuel innovation and deploying integrated solutions to patients and providers.”

Allscripts is currently accepting applications for the upcoming ADP Empower cohort through May 28, 2021. The cohort will be announced in June, along with the ADP Empower kick-off event. Learn more at www.allscripts.com/ADPEmpower.

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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

04/29/2021

Allscripts Announces First Quarter 2021 Results
  • First quarter GAAP EPS of $0.06; non-GAAP diluted EPS of $0.19
  • First quarter bookings of $194 million up 6% from the first quarter of 2020
  • Generated $56 million of cash flow from continuing operations and $35 million of free cash flow in the first quarter

CHICAGO–(BUSINESS WIRE)–Apr. 29, 2021– Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three months ended March 31, 2021.

Bookings(1) were $194 million in the first quarter of 2021. This result compares with $183 million in the first quarter of 2020. Contract revenue backlog totaled $4.0 billion as of March 31, 2021.

First quarter 2021 revenue was $368 million compared with $381 million in the first quarter of 2020.

On a GAAP basis in the first quarter of 2021, income from operations was $13 million compared with a GAAP loss from operations in the first quarter of 2020 of $27 million. Non-GAAP income from operations in the first quarter of 2021 was $38 million compared with $8 million in the first quarter of 2020.

GAAP net income in the first quarter of 2021 totaled $9 million compared with net loss of $20 million in the first quarter of 2020. Non-GAAP net income in the first quarter of 2021 was $28 million compared with $3 million in the first quarter of 2020.

GAAP earnings per share in the first quarter of 2021 was $0.06 compared with loss per share of $0.20 in the first quarter of 2020. Non-GAAP diluted earnings per share in the first quarter of 2021 was $0.19 compared with $0.02 in the first quarter of 2020.

Adjusted EBITDA totaled $67 million in the first quarter of 2021, compared with $37 million in the first quarter of 2020.

“Entering 2021, Allscripts continued to benefit from our strategic investments in distinctive, relevant and comprehensive solutions for our clients across the provider, payer and life sciences end markets. While regional uncertainty remains regarding the trajectory of COVID-19, we are optimistic as the pace of vaccinations increases, patient volumes recover, and we see expanded demand for closed loop connectivity to real world data,” said Paul M. Black, Allscripts Chief Executive Officer. “We were pleased with our strong first quarter results, as we gained from a more robust selling environment and a determined discipline around our cost structure. Looking forward expect a steady, purposeful focus on improving margins, generating free cash flow and serving our clients as they lead their organizations through the pandemic.”

2021 Financial Outlook(2)

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

  • Revenue of $1.5 billion
  • Adjusted EBITDA between $240 million and $260 million
  • Free cash flow between $90 million and $100 million

Conference Call

Allscripts will conduct a conference call today, Thursday, April 29th, 2021, 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 # 13718264.

 

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 # 13718264.

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

Footnotes

(1)

Bookings reflect the value of executed contracts for software, hardware and other client services on a continuing operations basis.

(2)

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 income and operating cash flow such as acquisition-related amortization, asset impairment charges and restructuring 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 and 6).

NOTE: All percentage changes described within this press release are calculated from full dollar amounts as illustrated in the accompanying financial statements and Allscripts Supplemental Financial Data Workbook, 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.

© 2021 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 2021 outlook, profitability initiatives and strategic priorities. 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 Allscripts 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; our use of the proceeds from the sale of our EPSi and CarePort businesses; the failure by Practice Fusion to comply with the terms of its 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 required to be 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 (the “EIS 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 other 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 Allscripts Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Qs. 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.

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

2021

 

2020

ASSETS        
Current assets:        
Cash and cash equivalents  

$513.4

 

$531.1

Restricted cash  

2.1

 

6.4

Accounts receivable, net  

359.1

 

347.3

Contract assets  

106.9

 

106.7

Income tax receivable  

25.4

 

25.4

Prepaid expenses and other current assets  

128.5

 

136.3

Total current assets  

$1,135.4

 

$1,153.2

Fixed assets, net  

67.4

 

72.2

Software development costs, net  

188.7

 

193.2

Intangible assets, net  

273.9

 

286.6

Goodwill  

974.8

 

974.7

Deferred taxes, net  

5.8

 

5.8

Contract assets – long-term  

45.8

 

43.7

Right-of-use assets – operating leases  

90.2

 

96.6

Other assets  

89.4

 

91.6

Total assets  

$2,871.4

 

$2,917.6

         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable  

$26.9

 

$35.9

Accrued expenses  

93.5

 

100.2

Accrued compensation and benefits  

84.1

 

118.8

Deferred revenue  

380.4

 

334.8

Current operating lease liabilities  

22.6

 

22.3

Current liabilities attributable to discontinued operations  

272.9

 

322.8

Total current liabilities  

880.4

 

934.8

Long-term debt  

169.4

 

167.6

Deferred revenue  

3.0

 

3.4

Deferred taxes, net  

16.9

 

18.2

Long-term operating lease liabilities  

87.7

 

93.5

Other liabilities  

35.3

 

33.9

Total liabilities  

$1,192.7

 

$1,251.4

Total stockholders’ equity  

$1,678.7

 

$1,666.2

Total liabilities and stockholders’ equity  

$2,871.4

 

$2,917.6

 
Table 2
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
         
    Three Months Ended March 31,
   

2021

 

2020

Revenue:        
Software delivery, support and maintenance  

$222.7

 

 

$232.1

 

Client services  

145.7

 

 

149.3

 

Total revenue  

368.4

 

 

381.4

 

Cost of revenue:        
Software delivery, support and maintenance  

70.7

 

 

73.1

 

Client services  

118.1

 

 

148.2

 

Amortization of software development and acquisition-related assets (a)  

29.5

 

 

28.1

 

Total cost of revenue  

218.3

 

 

249.4

 

Gross profit  

150.1

 

 

132.0

 

Selling, general and administrative expenses  

81.7

 

 

92.8

 

Research and development  

49.2

 

 

59.4

 

Amortization of intangible and acquisition-related assets  

5.8

 

 

6.7

 

Income (loss) from operations  

13.4

 

 

(26.9

)

Interest expense, net (b)  

(2.8

)

 

(10.1

)

Other  

0.7

 

 

0.1

 

Income (loss) before income taxes  

11.3

 

 

(36.9

)

Income tax (provision) benefit  

(2.7

)

 

4.5

 

Income (loss) from continuing operations, net of tax  

8.6

 

 

(32.4

)

Income (loss) from discontinued operations  

0.0

 

 

16.2

 

Gain (loss) on sale of discontinued operations  

0.6

 

 

0.0

 

Income tax (provision) from discontinued operations  

(0.1

)

 

(4.2

)

Income (loss) from discontinued operations, net of tax  

0.5

 

 

12.0

 

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

$9.1

 

 

($20.4

)

         
Income (loss) from continuing operations per share – basic  

$0.06

 

 

($0.20

)

Income (loss) from discontinued operations per share – basic  

$0.00

 

 

$0.07

 

Income (loss) per share – basic  

$0.06

 

 

($0.13

)

Income (loss) from continuing operations per share – diluted  

$0.06

 

 

($0.20

)

Income (loss) from discontinued operations per share – diluted  

$0.00

 

 

$0.07

 

Income (loss) per share – diluted  

$0.06

 

 

($0.13

)

         
Weighted average common shares outstanding:        
Basic  

140.2

 

 

162.5

 

Diluted  

149.1

 

 

162.5

 

         
    Three Months Ended March 31,
   

2021

 

2020

         
(a) Amortization of software development and acquisition-related assets includes:        
Amortization of capitalized software development costs  

22.6

 

 

19.9

 

Amortization of acquisition-related intangible assets  

6.9

 

 

8.2

 

Total amortization of software development and acquisition-related assets  

$29.5

 

 

$28.1

 

         
(b) Interest expense are comprised of the following for the periods presented:
Interest expense  

(1.3

)

 

(4.8

)

Interest income  

0.4

 

 

0.5

 

Non-cash charges to interest expense  

(1.9

)

 

(5.8

)

Interest expense, net  

($2.8

)

 

($10.1

)

         
 
Table 3
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
         
    Three Months Ended March 31,
   

2021

 

2020

Cash flows from operating activities:        
Net income (loss)  

$9.1

 

 

($20.4

)

Less: Income(loss) from discontinued operations  

0.5

 

 

12.0

 

Income (loss) from continuing operations  

$8.6

 

 

($32.4

)

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

44.0

 

 

49.5

 

Operating right-to-use asset amortization  

5.0

 

 

5.5

 

Stock-based compensation expense  

8.7

 

 

10.0

 

Deferred Taxes  

(1.1

)

 

(2.2

)

Other (income) loss, net  

1.7

 

 

(1.3

)

Total non-cash adjustments to net income (loss)  

58.3

 

 

61.5

 

Cash impact of changes in operating assets and liabilities:        
Assets  

41.7

 

 

24.4

 

Liabilities  

(52.7

)

 

(15.5

)

Accrued DOJ settlement  

0.0

 

 

(57.3

)

Total cash impact of changes on operating assets and liabilities  

(11.0

)

 

(48.4

)

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

55.9

 

 

(19.3

)

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

(51.4

)

 

15.6

 

Net cash provided by (used in) operating activities  

4.5

 

 

(3.7

)

Cash flows from investing activities:        
Capital expenditures  

(2.4

)

 

(2.8

)

Capitalized software  

(18.1

)

 

(26.5

)

Sales (purchases) of equity securities, other investments and related intangible assets, net  

(0.2

)

 

(3.0

)

Sale of other investments  

1.7

 

 

0.0

 

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

(19.0

)

 

(32.3

)

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

0.0

 

 

(2.1

)

Net cash provided by (used in) investing activities  

(19.0

)

 

(34.4

)

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

(6.0

)

 

(3.2

)

Payments for issuance costs on 0.875% Convertible Senior Notes  

0.0

 

 

(0.8

)

Credit facility payments  

0.0

 

 

(80.0

)

Credit facility borrowings, net of issuance costs  

0.0

 

 

210.0

 

Repurchase of common stock  

0.0

 

 

(9.7

)

Payment of acquisition and other financing obligations  

(1.5

)

 

(2.9

)

Net cash provided by (used in) financing activities  

(7.5

)

 

113.4

 

Effect of exchange rate changes on cash and cash equivalents  

0.0

 

 

(0.7

)

Net increase (decrease) in cash and cash equivalents  

(22.0

)

 

74.6

 

Cash, cash equivalents and restricted cash, beginning of period  

537.5

 

 

137.5

 

Cash, cash equivalents and restricted cash, end of period  

$515.5

 

 

$212.1

 

 
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,
   

2021

 

2020

Gross profit, as reported

$150.1

 

 

$132.0

 

Acquisition-related amortization

6.9

 

 

8.2

 

Stock-based compensation expense

1.8

 

 

1.6

 

Restructuring and other

0.0

 

 

4.2

 

Total non-GAAP gross profit

$158.8

 

 

$146.0

 

         
Income (loss) from operations, as reported

$13.4

 

 

($26.9

)

Acquisition-related amortization

12.7

 

 

14.9

 

Stock-based compensation expense

11.8

 

 

10.9

 

Restructuring and other

0.0

 

 

9.0

 

Total non-GAAP income from operations

$37.9

 

 

$7.9

 

         
Net income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders, as reported

$9.1

 

 

($20.4

)

Loss (income) from discontinued operations

0.0

 

 

(16.2

)

(Gain) on sale of business, net

(0.6

)

 

0.0

 

Income tax provision from discontinued operations

0.1

 

 

4.2

 

Income (loss) from continuing operations, net of tax

$8.6

 

 

($32.4

)

Acquisition-related amortization

12.7

 

 

14.9

 

Stock-based compensation expense

11.8

 

 

10.9

 

Restructuring and other

0.0

 

 

9.0

 

Non-cash charges to interest expense and other

1.3

 

 

5.8

 

Tax rate alignment  

(6.2

)

 

(5.5

)

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

$28.2

 

 

$2.7

 

         
Non-GAAP effective tax rate

24

%

 

24

%

         
Weighted shares outstanding – basic

140.2

 

 

162.5

 

Weighted shares outstanding – diluted

149.1

 

 

163.7

 

Less effect of convertible note hedges

(2.6

)

 

0.0

 

Non-GAAP Weighted shares outstanding – diluted

146.5

 

 

163.7

 

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

$0.06

 

 

($0.20

)

Non-GAAP Income (loss) per share – diluted

$0.19

 

 

$0.02

 

 
Table 5
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Adjusted EBITDA
(In millions, except percentages)
(Unaudited)
         
    Three Months Ended March 31,
   

2021

 

2020

Net income (loss) from continuing operations, as reported  

$8.6

 

 

($32.4

)

Plus:        
Interest expense and other, net (a)  

0.2

 

 

4.4

 

Depreciation and amortization  

44.0

 

 

49.5

 

Equity in net (income) loss of unconsolidated investments  

0.0

 

 

(0.2

)

Tax provision/(benefit)  

2.7

 

 

(4.5

)

EBITDA  

$55.5

 

 

$16.8

 

Plus:        
Stock-based compensation expense  

11.8

 

 

10.9

 

Restructuring and other  

0.0

 

 

9.0

 

Adjusted EBITDA  

$67.3

 

 

$36.7

 

         
Adjusted EBITDA margin (b)  

18.3

%

 

9.6

%

(a) Interest expense and other, net has been adjusted from the amounts presented in the statements of operations in order to remove the amortization of the fair value of the cash conversion option embedded in the 1.25% and 0.875% Cash Convertible Notes and deferred debt issuance costs from interest expense since such amortization is also included in depreciation and amortization.
         
(b) 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,
   

2021

 

2020

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

$55.9

 

 

($19.3

)

Cash flows from investing activities:        
Capital expenditures  

(2.4

)

 

(2.8

)

Capitalized software  

(18.1

)

 

(26.5

)

Free cash flow  

$35.4

 

 

($48.6

)

 

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, gross margin, 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, stock-based compensation expense and restructuring and other costs. 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 Table 4 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 restructuring and other costs. Reconciliations to GAAP income (loss) from operations are found in Table 4 within this press release.
  • Adjusted EBITDA is a non-GAAP measure and consists of GAAP net income/(loss), as reported, and adjusts for: depreciation and amortization; stock-based compensation expense; restructuring and other costs; interest expense and other, net; equity in net earnings of unconsolidated investments; and tax provision (benefit). Reconciliations to GAAP net income/(loss) are found in Table 5 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 Table 5 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; restructuring and other costs; non-cash charges to interest expense and other. Non-GAAP net income 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 effect of the capped call hedges related to the 0.875% Convertible Notes.
  • Non-GAAP diluted earnings per share consist of non-GAAP net income, as defined above, divided by non-GAAP weighted shares outstanding – diluted 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.

Restructuring and Other Costs. Restructuring 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.

Allscripts excludes restructuring 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 1.25 percent Cash Convertible Notes and 0.875 percent Convertible Notes issued by Allscripts during the second quarter of 2013 and fourth quarter of 2019, respectively.

Equity in Net loss (income) of Unconsolidated Investments. Equity in net loss (income) of unconsolidated investments represents Allscripts share of the equity earnings of our investments in third parties accounted for under the equity method, including the amortization of cost basis adjustments.

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, gross margin, 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 and restructuring and other costs made 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:
Stephen Shulstein
312-386-6735
stephen.shulstein@allscripts.com

Media:
Tom Lynch
312-386-6765
tom.lynch@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

04/19/2021

Allscripts to Release First-Quarter 2021 Financial Results April 29

CHICAGO–(BUSINESS WIRE)–Apr. 19, 2021–
Allscripts Healthcare Solutions, Inc. (Nasdaq:MDRX) will report its financial results for the three months ended March 31, 2021 after the close of stock market hours on Thursday, April 29, 2021. 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 2021 Financial Results Call Details

The Allscripts earnings announcement will be distributed immediately after the close of regular stock market hours on Thursday, April 29, 2021. 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 # 13718264.

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 # 13718264.

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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

04/05/2021

Revo Health selects Allscripts® Practice Management

Management services organization partners with Allscripts to offer robust financial and scheduling platform to its clinics

CHICAGO–(BUSINESS WIRE)–Apr. 5, 2021–
Allscripts Healthcare, LLC (Nasdaq:MDRX) announced today that it has partnered with Revo Health, LLC (Revo) to provide Allscripts Practice Management and Payerpath, helping to drive financial and operational performance to all of its Infinite Health Collaborative (i-Health) clinics. i-Health currently uses Allscripts TouchWorks® electronic health record and the Allscripts patient engagement solution, FollowMyHealth®.

Revo is a management services organization that provides innovative solutions for physician practices and ambulatory surgery centers (ASCs). Revo offers care bundle development, quality improvement, professional/management services, and ASC solutions for forward-thinking healthcare leaders. Revo supports partners with a focus on efficiency, cost, outcomes, shared resources, collaboration and consolidated expertise.

i-Health is an independent physician practice with operating divisions of cardiology, colon and rectal, family medicine, orthopedics, vascular and interventional radiology, and women’s health. Management services are provided for all i-Health operating divisions by Revo. Management services support the following departments: HR, IT, Revenue Cycle, Finance, Purchasing, Marketing, and Quality.

Allscripts Practice Management is a comprehensive revenue cycle management solution for physician practices that helps to boost operational efficiency and productivity. Allscripts Practice Management offers an intuitive, user-friendly interface to help measure practice performance, elevate productivity, meet tighter compliance and regulatory mandates, and enhance collections and profitability.

“We wanted a solution that helps improve financial and operational workflows across the i-Health practices,” said Troy Simonson, Chief Executive Officer of Revo Health. “We believe by working with a trusted partner like Allscripts, we will be able to drive performance and offer a robust solution to patients and the i-Health and Revo teams.”

“Allscripts Practice Management was specifically built by our experts to help healthcare organizations like Revo Health drive performance,” said Leah Jones, Senior Vice President and General Manager of Allscripts Ambulatory. “We are committed to offering effective resources to help Revo Health provide a healthy bottom line so that the organization can focus on what’s most important – providing the best care to its patients.”

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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare, LLC

03/22/2021

Mercy Iowa City selects Allscripts SunriseTM

Sunrise platform of health to provide comprehensive single patient record to Midwest hospital

CHICAGO–(BUSINESS WIRE)–Mar. 22, 2021–
Allscripts Healthcare Solutions (NASDAQ: MDRX) announced today that Mercy Iowa City selected the Allscripts SunriseTM platform of health, run on Microsoft Azure, as the core electronic health record (EHR) for its community hospital. The hospital was in search for an innovative partner ready for the future of healthcare, and by using cloud-capable features built on Azure, Sunrise will further help advance Mercy Iowa City’s care delivery experience while delivering simpler technology.

Mercy Iowa City is an acute care hospital and regional referral center that draws patients from throughout Eastern Iowa. Mercy’s medical staff is composed of more than 250 providers representing most medical specialties and many subspecialties. Many Mercy Iowa City clinicians conduct their outpatient practice in offices in the community. The Mercy Iowa City campus near downtown Iowa City includes the hospital, medical office building, outpatient clinics, and cancer center.

“At Mercy Iowa City, we’re committed to delivering an integrated care system to our community,” said Sean Williams, Chief Executive Officer of Mercy Iowa City. “Allscripts has proven to be a trusted partner to fellow healthcare organizations, and Sunrise EHR will enable our providers to deliver streamlined care, with access to data that can help drive continuous positive outcomes to our organization.”

Sunrise is a comprehensive platform of health that connects all aspects of care, including acute, ambulatory, surgical, pharmacy, radiology and laboratory services, and also features an integrated revenue cycle, patient administration and patient engagement system. Sunrise is a clinician-friendly, evidence-based single platform with integrated analytics that helps deliver better health outcomes in hospitals around the world. Using Azure, Sunrise will enable improved organizational effectiveness, solution interoperability, clinician ease of use, and overall patient experience.

“The flexible and robust Sunrise solution will help Mercy Iowa City serve its patient population in a way that best meets its community’s needs,” said Allscripts Vice President of Client Development and Delivery, Nicole Faucher. “We’re honored and excited that Sunrise will play a role in enhancing Mercy Iowa City’s clinician experience and provide a future-looking, single patient record that delivers a true platform of health to Eastern Iowa.”

“We are proud that our collaboration with Allscripts strengthens the Sunrise platform of health and becomes an extension of technology and health for Mercy Iowa City into their community,” said Patty Obermaier, Vice President of US Health and Life Sciences for Microsoft.

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 and consumers to make better decisions, delivering better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare, LLC

03/11/2021

Allscripts rated #1 in Black Book™ Research’s 2021 Community Health Systems Vendors Report

Annual survey results reveal company receives top ranking in community setting for the fifth consecutive year

CHICAGO–(BUSINESS WIRE)–Mar. 11, 2021–
Allscripts (NASDAQ: MDRX) has been recognized as the top-rated electronic health record vendor for community hospitals according to new survey results from Black Book Research. This is the fifth consecutive year Allscripts has earned the top rating in this annual survey.

The survey features responses collected from more than 1,800 community hospitals and focuses on 18 key performance indicators. Approximately 50% of the responses came from nurses, physicians, and other direct users of the technology being surveyed, while additional responses came from CEOs, CFOs, trustees and operational leaders. Survey responses were collected between the third quarter of 2020 and the first quarter of 2021.

Allscripts ranked first in 10 of 18 key performance indicators, including:

  • Trust, Accountability, Transparency, Ethics
  • Strategic alignment of client goals, including value-based care, revenue cycle management, and MACRA
  • Innovation and Optimization
  • Breadth of offerings, client types, delivery excellence
  • Deployment and implementation
  • Customization
  • Scalability, client adaptability, flexible pricing
  • Marginal value adds and modules
  • Data security, patient privacy, and backup services
  • Best-of-breed technology and process improvement

     

“Allscripts’ heightened focus on the community hospital market is evident based on the positive results from this year’s survey, which for the fifth year in a row resulted in the number-one rating amongst the eight top EHR vendors evaluated,” said Doug Brown, Managing Partner and President, Black Book.

“Today’s community hospitals are challenged with increased complexity in healthcare delivery, limited resources and rising operating costs,” said Paul Black, Allscripts Chief Executive Officer. “Black Book’s comprehensive survey shows Allscripts’ commitment to providing smaller healthcare organizations with the support, cloud technology and tools they need. We are honored to serve as our clients’ trusted partner, delivering innovative solutions that meet community-hospital goals, as we share their mission to provide superior patient care.”

Black Book Research is a full-service healthcare-centric market research and public opinion research company and premier provider of competitive intelligence, market research, opinion mining, sentiment analysis, services evaluation and strategic consulting services to companies worldwide. To ensure survey integrity and accurate, comprehensive results, Black Book’s comprehensive methodology is crowd-sourced and represents a broad spectrum of solution users. Survey responses go through both internal and external audits, ensuring completeness, accuracy and validity. For more information, visit www.blackbookmarketresearch.com.

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.

© 2021 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:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

02/25/2021

Allscripts Announces Fourth Quarter 2020 Results and Outlook For 2021
  • Fourth quarter GAAP EPS of $4.82; 71% year-over-year growth in non-GAAP diluted EPS to $0.29
  • Closed sales of EPSi and CarePort Health and recognized a combined pre-tax gain of $1.2 billion
  • Repurchased $280 million of stock in the quarter and ended the quarter in a net cash position

CHICAGO–(BUSINESS WIRE)–Feb. 25, 2021–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three and twelve months ended December 31, 2020.

Bookings(1) were $220 million in the fourth quarter of 2020. This result compares with $312 million in the fourth quarter of 2019. Contract revenue backlog totaled $4.1 billion as of December 31, 2020.

Fourth quarter 2020 GAAP revenue was $386 million compared with $414 million in the fourth quarter of 2019. Non-GAAP revenue(2) was $415 million in the fourth quarter of 2020 compared with $452 million in the fourth quarter of 2019.

On a GAAP basis in the fourth quarter of 2020, loss from operations was $68 million and included $17 million of severance and restructuring charges and $75 million of asset impairments. GAAP loss from operations in the fourth quarter of 2019 was $55 million and included $20 million of severance and restructuring charges and $33 million of asset impairments. Non-GAAP income from operations(2) in the fourth quarter of 2020 was $66 million compared with $44 million in the fourth quarter of 2019.

GAAP net income in the fourth quarter of 2020 totaled $728 million compared with net loss of $19 million in the fourth quarter of 2019. Non-GAAP net income(2) in the fourth quarter of 2020 was $45 million compared with $28 million in the fourth quarter of 2019.

GAAP earnings per share in the fourth quarter of 2020 was $4.82 compared with loss per share of $0.12 in the fourth quarter of 2019. Non-GAAP diluted earnings per share(2) in the fourth quarter of 2020 were $0.29 compared with $0.17 in the fourth quarter of 2019.

Adjusted EBITDA(2) totaled $97 million in the fourth quarter of 2020, compared with $74 million in the fourth quarter of 2019.

Stock repurchases totaled $280 million in the fourth quarter of 2020.

“Allscripts saw continued progress in the fourth quarter as we benefitted from the decisive and strategic actions we took in 2020, which included resetting our cost base and solutions portfolio to more effectively compete in this uncertain environment,” said Paul M. Black, Allscripts Chief Executive Officer. “We believe Allscripts is well positioned to succeed with our robust, highly relevant solutions portfolio which spans the provider, payer and life sciences markets. Our strong and flexible balance sheet enables us to continue our investments to drive growth as well as return additional capital to shareholders. Looking ahead, we expect to continue to leverage the work we have done to drive improved margins and free cash flow generation.”

2021 Financial Outlook(3)

For the full year 2021, Allscripts currently expects to achieve:

  • Revenue of $1.5 billion
  • Adjusted EBITDA between $240 million and $260 million
  • Free cash flow between $90 million and $100 million

Conference Call

Allscripts will conduct a conference call today, Thursday, February 25th, 2021, 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 # 13715828.

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 # 13715828.

Supplemental and non-GAAP financial information (both including and excluding discontinued operations) is also available at http://investor.allscripts.com.

Footnotes

(1)

Bookings reflect the value of executed contracts for software, hardware and other client services, for all business units while they were owned by the Company.

(2)

Non-GAAP figures include results from divested businesses during the period they were still owned. GAAP figures reflect the results of divested businesses as discontinued operations in all periods presented.

(3)

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 income and operating cash flow such as acquisition-related amortization, asset impairment charges and restructuring and other costs, any of which may be significant, are either 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 items, see the non-GAAP financial reconciliation tables in this release (Tables 4 and 5).

NOTE: All percentage changes described within this press release are calculated from full dollar amounts as illustrated in the accompanying financial statements and Allscripts Supplemental Financial Data Workbook, 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.

© 2021 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 2021 outlook, profitability initiatives, and plans to return capital to shareholders. 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 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 Allscripts 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; our use of the proceeds from the sale of our EPSi and CarePort businesses; the failure by Practice Fusion to comply with the terms of its 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 required to be 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 (the “EIS 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 other 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 Allscripts Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Qs. 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.

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

2020

2019

ASSETS
Current assets:
Cash and cash equivalents

$531.1

$129.6

Restricted cash

$6.4

$7.9

Accounts receivable, net

$347.3

$424.4

Contract assets

$106.7

$93.3

Income tax receivable

$25.4

$0.0

Prepaid expenses and other current assets

$136.3

$144.2

Current assets attributable to discontinued operations

$0.0

$41.9

Total current assets

$1,153.2

$841.3

Fixed assets, net

$72.2

$87.9

Software development costs, net

$193.2

$222.7

Intangible assets, net

$286.6

$367.1

Goodwill

$974.7

$974.1

Deferred taxes, net

$5.8

$5.7

Contract assets – long-term

$43.7

$63.5

Right-of-use assets – operating leases

$96.6

$95.8

Other assets

$91.6

$119.6

Long-term assets attributable to discontinued operations

$0.0

$428.0

Total assets

$2,917.6

$3,205.7

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$35.9

$102.8

Accrued expenses

$100.2

$270.3

Accrued compensation and benefits

$118.8

$65.8

Deferred revenue

$334.8

$335.6

Current maturities of long-term debt

$0.0

$364.5

Current operating lease liabilities

$22.3

$22.3

Current liabilities attributable to discontinued operations

$322.8

$49.4

Total current liabilities

$934.8

$1,210.7

Long-term debt

$167.6

$551.0

Deferred revenue

$3.4

$11.1

Deferred taxes, net

$18.2

$21.0

Long-term operating lease liabilities

$93.5

$93.6

Other liabilities

$33.9

$30.3

Long-term liabilities attributable to discontinued operations

$0.0

$2.8

Total liabilities

$1,251.4

$1,920.5

Total stockholders’ equity

$1,666.2

$1,285.2

Total liabilities and stockholders’ equity

$2,917.6

$3,205.7

 
Note: The condensed consolidated balance sheets reflect the results of Careport Health and EPSi as discontinued operations in all periods presented.

Table 2

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

Three Months Ended December 31,

 

Twelve Months Ended December 31,

2020

 

2019

 

2020

 

2019

Revenue:
Software delivery, support and maintenance

$241.3

 

$248.9

 

$914.7

 

$1,004.2

 

Client services

145.1

 

165.4

 

588.0

 

628.4

 

Total revenue

386.4

 

414.3

 

1,502.7

 

1,632.6

 

Cost of revenue:
Software delivery, support and maintenance

71.3

 

80.0

 

288.0

 

319.1

 

Client services

123.9

 

154.4

 

530.6

 

595.3

 

Amortization of software development and acquisition-related assets (a)

30.2

 

27.3

 

118.4

 

107.9

 

Total cost of revenue

225.4

 

261.7

 

937.0

 

1,022.3

 

Gross profit

161.0

 

152.6

 

565.7

 

610.3

 

Selling, general and administrative expenses

93.8

 

108.3

 

389.9

 

400.8

 

Research and development

54.3

 

60.1

 

206.1

 

245.4

 

Impairments

74.7

 

32.5

 

75.0

 

36.5

 

Amortization of intangible and acquisition-related assets

6.3

 

6.8

 

25.6

 

27.2

 

Income (loss) from operations

(68.1

)

(55.1

)

(130.9

)

(99.6

)

Interest expense, net (b)

(6.1

)

(11.5

)

(32.4

)

(41.6

)

Other (c)

(0.6

)

3.0

 

14.0

 

(140.5

)

Income (loss) before income taxes

(74.8

)

(63.6

)

(149.3

)

(281.7

)

Income tax (provision) benefit

10.1

 

29.7

 

16.7

 

43.3

 

Income (loss) from continuing operations, net of tax

(64.7

)

(33.9

)

(132.6

)

(238.4

)

Income (loss) from discontinued operations

16.8

 

20.1

 

71.4

 

75.2

 

Gain (loss) on sale of discontinued operations

1,156.5

 

0.0

 

1,156.5

 

0.0

 

Income tax (provision) from discontinued operations

(380.8

)

(5.2

)

(394.9

)

(19.4

)

Income (loss) from discontinued operations, net of tax

792.5

 

14.9

 

833.0

 

55.8

 

Net income (loss)

727.8

 

(19.0

)

700.4

 

(182.6

)

Net (income) loss attributable to non-controlling interest

0.0

 

0.0

 

0.0

 

0.4

 

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

$727.8

 

($19.0

)

$700.4

 

($182.2

)

 
Income (loss) from continuing operations per share – basic

($0.43

)

($0.21

)

($0.83

)

($1.43

)

Income (loss) from discontinued operations per share – basic

$5.25

 

$0.09

 

$5.23

 

$0.33

 

Income (loss) per share – basic

$4.82

 

($0.12

)

$4.40

 

($1.10

)

Income (loss) from continuing operations per share – diluted

($0.43

)

($0.21

)

($0.83

)

($1.43

)

Income (loss) from discontinued operations per share – diluted

$5.25

 

$0.09

 

$5.23

 

$0.33

 

Income (loss) per share – diluted

$4.82

 

($0.12

)

$4.40

 

($1.10

)

 
Weighted average common shares outstanding:
Basic

150.9

 

162.4

 

159.3

 

166.3

 

Diluted

150.9

 

162.4

 

159.3

 

166.3

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

2020

 

2019

 

2020

 

2019

 
(a) Amortization of software development and acquisition-related assets includes:
Amortization of capitalized software development costs

$22.7

 

$18.4

 

$86.3

 

$72.9

 

Amortization of acquisition-related intangible assets

7.5

 

8.9

 

32.1

 

35.0

 

Total amortization of software development and acquisition-related assets

$30.2

 

$27.3

 

$118.4

 

$107.9

 

 
(b) Interest expense are comprised of the following for the periods presented:
Interest expense

(4.0

)

(7.2

)

(18.1

)

(26.6

)

Interest income

0.3

 

0.3

 

1.7

 

1.6

 

Non-cash charges to interest (expense) income

0.1

 

(0.1

)

$0.0

 

(0.1

)

Amortization of discounts and debt issuance costs

(2.5

)

(4.5

)

(16.0

)

(16.5

)

Interest expense, net

($6.1

)

($11.5

)

($32.4

)

($41.6

)

 
(c) Other is comprised of the following for the periods presented:
Equity net income (loss) of unconsolidated investments

(0.2

)

0.1

 

17.2

 

0.7

 

DOJ settlement

0.0

 

0.0

 

0.0

 

(145.0

)

Other income (expense)

(0.4

)

2.9

 

(3.2

)

3.8

 

Other

($0.6

)

$3.0

 

$14.0

 

($140.5

)

 
Note: The condensed consolidated statements of operations reflect the results of Careport Health and EPSi as discontinued operations in all periods presented.
Table 3
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

2020

 

2019

 

2020

 

2019

Cash flows from operating activities:
Net income (loss)

$727.8

 

($19.0

)

$700.4

 

($182.6

)

Less: Income(loss) from discontinued operations

792.5

 

14.9

 

833.0

 

55.8

 

Income (loss) from continuing operations

($64.7

)

($33.9

)

($132.6

)

($238.4

)

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

46.4

 

50.0

 

192.3

 

198.2

 

Operating right-to-use asset amortization

5.1

 

5.7

 

20.7

 

21.9

 

Stock-based compensation expense

8.1

 

9.4

 

34.0

 

39.0

 

Deferred Taxes

(6.2

)

(34.9

)

(3.3

)

(38.0

)

Asset impairment charges

74.7

 

6.8

 

75.0

 

10.8

 

Goodwill impairment

0.0

 

25.7

 

0.0

 

25.7

 

Impairment (recovery) of long-term investments

0.0

 

1.7

 

1.6

 

0.7

 

Equity in net income of unconsolidated investments

0.2

 

0.0

 

(17.2

)

(0.6

)

Other (income) loss, net

(5.1

)

7.2

 

(5.9

)

10.0

 

Total non-cash adjustments to net income (loss)

123.2

 

71.6

 

297.2

 

267.7

 

Cash impact of changes in operating assets and liabilities:
Assets

(63.9

)

(77.1

)

0.7

 

(25.7

)

Liabilities

61.0

 

61.3

 

(5.8

)

(133.2

)

Accrued DOJ settlement

(58.4

)

0.0

 

(147.2

)

145.0

 

Total cash impact of changes on operating assets and liabilities

(61.3

)

(15.8

)

(152.3

)

(13.9

)

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

(2.8

)

21.9

 

12.3

 

15.4

 

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

(175.8

)

(9.5

)

(119.0

)

30.9

 

Net cash provided by (used in) operating activities

(178.6

)

12.4

 

(106.7

)

46.3

 

Cash flows from investing activities:
Capital expenditures

(9.2

)

(3.1

)

(17.0

)

(16.5

)

Capitalized software

(16.3

)

(25.2

)

(88.0

)

(103.3

)

Cash paid for business acquisitions, net of cash acquired

0.0

 

0.0

 

0.0

 

(23.4

)

Cash received from sale of business

1,710.0

 

0.0

 

1,710.0

 

0.0

 

Sales (purchases) of equity securities, other investments and related intangible assets, net

(3.2

)

0.0

 

(7.1

)

(8.2

)

Sale of other investments

0.0

 

0.0

 

24.9

 

1.0

 

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

1,681.3

 

(28.3

)

1,622.8

 

(150.4

)

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

(1.2

)

(2.5

)

(7.6

)

(10.7

)

Net cash provided by (used in) investing activities

1,680.1

 

(30.8

)

1,615.2

 

(161.1

)

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

(0.4

)

(0.5

)

(6.0

)

(7.3

)

Proceeds from issuance of 0.875% Convertible Senior Notes

5.4

 

218.0

 

4.7

 

218.0

 

Payments for issuance costs on 0.875% Convertible Senior Notes

(5.4

)

(5.4

)

(5.4

)

(5.4

)

Payments for capped call transaction on 0.875% Convertible Senior Notes

0.0

 

(17.2

)

0.0

 

(17.2

)

Repayment of Convertible Senior Notes, net of issuance costs

0.0

 

0.0

 

(352.3

)

0.0

 

Credit facility payments

(1,140.0

)

(205.0

)

(1,315.0

)

(220.0

)

Credit facility borrowings, net of issuance costs

230.0

 

30.1

 

903.6

 

279.2

 

Repurchase of common stock

(79.6

)

(9.3

)

(134.9

)

(111.5

)

Accelerated share repurchase program

(200.0

)

0.0

 

(200.0

)

0.0

 

Repurchase of unsettled common stock

0.0

 

9.3

 

0.0

 

0.0

 

Payment of acquisition and other financing obligations

0.0

 

(3.1

)

(4.4

)

(14.7

)

Purchases of subsidiary shares owned by non-controlling interest

0.0

 

0.0

 

0.0

 

(53.8

)

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

(1,190.0

)

16.9

 

(1,109.7

)

67.3

 

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

0.0

 

0.0

 

0.0

 

0.0

 

Net cash provided by (used in) financing activities

(1,190.0

)

16.9

 

(1,109.7

)

67.3

 

Effect of exchange rate changes on cash and cash equivalents

1.1

 

0.3

 

1.2

 

0.2

 

Net increase (decrease) in cash and cash equivalents

312.6

 

(1.2

)

400.0

 

(47.3

)

Cash, cash equivalents and restricted cash, beginning of period

224.9

 

138.7

 

137.5

 

184.8

 

Cash, cash equivalents and restricted cash, end of period

$537.5

 

$137.5

 

$537.5

 

$137.5

 

 
Note: The condensed consolidated statements of cash flows reflect the results of Careport Health and EPSi as discontinued operations in all periods presented.
Table 4
Allscripts Healthcare Solutions, Inc.
Condensed Non-GAAP Financial Information
(In millions, except per share amounts and percentages)
(Unaudited)
 
Three Months Ended December 31, Twelve Months Ended December 31,

2020

2019

2020

2019

Total revenue, as reported

$386.4

 

$414.3

 

$1,502.7

 

$1,632.6

 

Acquisition-related deferred revenue adjustments

0.0

 

0.5

 

0.0

 

2.0

 

Non-GAAP revenue related to businesses reported as discontinued operations

28.1

 

36.7

 

136.8

 

139.1

 

Total non-GAAP revenue

$414.5

 

$451.5

 

$1,639.5

 

$1,773.7

 

 
Gross profit, as reported

$161.0

 

$152.6

 

$565.7

 

$610.3

 

Acquisition-related deferred revenue adjustments

0.0

 

0.5

 

0.0

 

2.0

 

Acquisition-related amortization

7.5

 

8.9

 

32.1

 

35.0

 

Stock-based compensation expense

1.5

 

1.6

 

6.0

 

6.2

 

Restructuring and other

0.0

 

0.4

 

2.8

 

8.4

 

Non-GAAP gross profit related to businesses reported as discontinued operations

22.7

 

27.9

 

102.3

 

104.9

 

Total non-GAAP gross profit

$192.7

 

$191.9

 

$708.9

 

$766.8

 

 
Income (loss) from operations, as reported

($68.1

)

($55.1

)

($130.9

)

($99.6

)

Acquisition-related deferred revenue adjustments

0.0

 

0.5

 

0.0

 

2.0

 

Acquisition-related amortization

13.8

 

15.7

 

57.7

 

62.1

 

Stock-based compensation expense

9.5

 

10.1

 

38.4

 

42.5

 

Impairments (recovery)

74.7

 

32.5

 

75.0

 

36.5

 

Restructuring and other

16.8

 

19.5

 

66.2

 

53.9

 

Non-GAAP income from operations related to businesses reported as discontinued operations

19.1

 

20.7

 

79.5

 

77.1

 

Total non-GAAP income from operations

$65.8

 

$43.9

 

$185.9

 

$174.5

 

 
Net income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders, as reported

$727.8

 

($19.0

)

$700.4

 

($182.2

)

Loss (income) from discontinued operations

(16.8

)

(20.1

)

(71.4

)

(75.2

)

(Gain) on sale of business, net

(1,156.5

)

0.0

 

(1,156.5

)

0.0

 

Income tax provision from discontinued operations

380.8

 

5.2

 

394.9

 

19.4

 

Income (loss) from continuing operations, net of tax

($64.7

)

($33.9

)

($132.6

)

($238.0

)

Acquisition-related deferred revenue adjustments

0.0

 

0.5

 

0.0

 

2.0

 

Acquisition-related amortization

13.8

 

15.7

 

57.7

 

62.1

 

Stock-based compensation expense

9.5

 

10.1

 

38.4

 

42.5

 

Restructuring and other

16.8

 

20.3

 

66.2

 

200.1

 

Non-cash charges to interest expense and other

1.2

 

(1.1

)

14.4

 

8.8

 

Impairments

74.7

 

34.2

 

76.6

 

37.2

 

Equity in net loss (income) of unconsolidated investments and non-controlling interest

0.2

 

(0.1

)

(17.2

)

(0.9

)

Tax rate alignment

(19.9

)

(33.5

)

(37.5

)

(60.4

)

Non-GAAP net income related to businesses reported as discontinued operations

13.4

 

15.8

 

56.5

 

58.6

 

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

$45.0

 

$28.0

 

$122.5

 

$112.0

 

 
Non-GAAP effective tax rate

24%

24%

24%

24%

 
Weighted shares outstanding – basic

150.9

 

162.4

 

159.3

 

166.3

 

Weighted shares outstanding – diluted

155.9

 

164.9

 

162.0

 

168.1

 

 
GAAP Income (loss) from continuing operations per share – basic

($0.43

)

($0.21

)

($0.83

)

($1.43

)

Non-GAAP Income (loss) per share – diluted

$0.29

 

$0.17

 

$0.76

 

$0.67

 

Table 5
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Adjusted EBITDA
(In millions, except percentages)
(Unaudited)

 

 

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

 

2019

2020

 

2019

Net income (loss) from continuing operations, as reported

($64.7

)

 

($33.9

)

($132.6

)

 

($238.4

)

Plus:

 

 

Interest expense and other, net (a)

4.0

 

7.3

17.7

 

25.3

Depreciation and amortization

46.4

 

52.3

192.3

 

198.2

Equity in net (income) loss of unconsolidated investments

0.2

 

(0.2

)

(17.2

)

 

(0.7

)

Tax provision/(benefit)

(10.1

)

 

(29.7

)

(16.7

)

 

(43.3

)

EBITDA

($24.2

)

 

($4.2

)

$43.5

 

($58.9

)

Plus:

 

 

 

Acquisition-related deferred revenue adjustments

0.0

 

0.5

0.0

 

2.0

Stock-based compensation expense

9.5

 

10.1

38.4

 

42.6

Restructuring and other

16.8

 

10.4

66.2

 

187.9

Impairments (recovery)

74.7

 

34.2

76.6

 

37.2

Adjusted EBITDA from continuing operations

76.8

 

51.0

 

224.7

 

210.8

Adjusted EBITDA related to businesses reported as discontinued operations

20.0

 

22.8

87.2

 

84.3

Adjusted EBITDA

$96.8

 

$73.8

 

$311.9

 

$295.1

 

 

Adjusted EBITDA margin from continuing operations (b)

19.9

%

 

12.3

%

15.0

%

 

12.9

%

Adjusted EBITDA margin (c)

23.4

%

 

16.3

%

19.0

%

 

16.6

%

 

 

(a) Interest expense and other, net has been adjusted from the amounts presented in the statements of operations in order to remove the amortization of the fair value of the cash conversion option embedded in the 1.25% and 0.875% Cash Convertible Notes and deferred debt issuance costs from interest expense since such amortization is also included in depreciation and amortization.
 
(b) Adjusted EBITDA margin from continuing operations is calculated by dividing adjusted EBITDA from continuing operations by non-GAAP revenue from continuing operations.

 

 

(c) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue.

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 revenue, gross profit, gross margin, 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 revenue consists of GAAP revenue, as reported, and adds back recognized deferred revenue from Practice Fusion and NantHealth’s provider/patient solutions business and non-material consolidated affiliates that is eliminated for GAAP purposes due to purchase accounting adjustments as well as revenue from businesses reported as discontinued operations. Reconciliations to GAAP revenue are found in Table 4 within this press release.
  • Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related deferred revenue adjustments, acquisition-related amortization, stock-based compensation expense and restructuring and other costs. Non-GAAP gross profit includes results from businesses reported as discontinued operations. Non-GAAP gross margin consists of non-GAAP gross profit as a percentage of non-GAAP revenue in the applicable period. Reconciliations to GAAP gross profit are found in Table 4 within this press release.
  • Non-GAAP income from operations consists of GAAP income (loss) from operations, as reported, and excludes acquisition-related deferred revenue adjustments, acquisition-related amortization, stock-based compensation expense, impairment charges and restructuring and other costs. Non-GAAP income from operations includes results from businesses reported as discontinued operations. Reconciliations to GAAP income (loss) from operations are found in Table 4 within this press release.
  • Adjusted EBITDA is a non-GAAP measure and consists of GAAP net income/(loss), as reported, and adjusts for: acquisition-related deferred revenue adjustments; depreciation and amortization; stock-based compensation expense; restructuring and other costs; impairment charges; interest expense and other, net; equity in net earnings of unconsolidated investments; and tax provision (benefit). Adjusted EBITDA includes results from businesses reported as discontinued operations. Reconciliations to GAAP net income/(loss) are found in Table 5 within this press release.
  • Adjusted EBITDA margin is a non-GAAP measure that is calculated by dividing Adjusted EBITDA by non-GAAP revenue. See the reconciliations in Table 4 within this press release with respect to non-GAAP revenue and in Table 5 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 consists of GAAP net income/(loss), as reported, and adds back acquisition-related deferred revenue adjustments; acquisition-related amortization; stock-based compensation expense; restructuring and other costs; non-cash charges to interest expense and other; impairment charges and equity in net earnings of unconsolidated investments. Non-GAAP net income includes a GAAP to non-GAAP tax rate alignment adjustment. Non-GAAP net income also includes results from businesses reported as discontinued operations.
  • Non-GAAP net income attributable to Allscripts Healthcare Solutions, Inc. is a non-GAAP measure and consists of non-GAAP net income, as described above, with an adjustment to reduce non-GAAP net income for the percentage of non-controlling interest outside Allscripts ownership position. Reconciliations to GAAP net income/(loss) attributable to Allscripts Healthcare Solutions, Inc. are found in Table 4 within this press release.
  • Non-GAAP diluted earnings per share consist of non-GAAP net income, as defined above, divided by weighted shares outstanding – diluted during the applicable period.
  • Free cash flow consists of GAAP cash flows provided by operating activities in the applicable period, net of capital expenditures and capitalized software costs, including those incurred by businesses presented as discontinued operations.

Acquisition-Related Deferred Revenue Adjustments. Deferred revenue adjustments include acquisition-related deferred revenue adjustments, which reflect the fair value adjustments to deferred revenue acquired in a business acquisition. The fair value of acquired deferred revenue represents an amount equivalent to the estimated cost plus an appropriate profit margin, to perform services related to the acquiree’s software and product support, which assumes a legal obligation to do so, based on the deferred revenue balances as of the acquisition date. Allscripts adds back acquisition-related deferred revenue adjustments for its non-GAAP financial measures because it believes the inclusion of this amount directly correlates to the underlying performance of Allscripts operations.

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.

Impairments. Impairments reflect non-cash charges related to the retirement of hosting assets, the abandonment of a lease, our decision to discontinue several software development projects and the impairment of several intangible assets.

Restructuring and Other Costs. Restructuring 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.

Allscripts excludes restructuring 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 1.25 percent Cash Convertible Notes and 0.875 percent Convertible Notes issued by Allscripts during the second quarter of 2013 and fourth quarter of 2019, respectively.

Equity in Net loss (income) of Unconsolidated Investments. Equity in net loss (income) of unconsolidated investments represents Allscripts share of the equity earnings of our investments in third parties accounted for under the equity method, including the amortization of cost basis adjustments.

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

Results from Businesses Reported as Discontinued Operations. Results from businesses reported as discontinued operations reflect results from EPSi and CarePort Health which were both divested in the fourth quarter of 2020. These results are added back to GAAP results to provide more insight into how the company performed while these businesses were owned.

Management also believes that non-GAAP revenue, gross profit, gross margin, 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 and restructuring and other costs made 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:

Stephen Shulstein

312-386-6735

stephen.shulstein@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare, LLC

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