Skip to content

Newsroom

06/29/2022

Veradigm Issued Patent for Risk Adjustment Method and Apparatus

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

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

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

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

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

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

About Veradigm®

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

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

About Allscripts

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Amanda Cohen

412-919-2417

Amanda.Cohen@veradigm.com

Source: Allscripts Healthcare Solutions

05/11/2022

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

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

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

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

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

Key data presentations at ISPOR 2022 include:

Covid-19

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

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

NASH

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

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

Diabetes

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

Artificial Intelligence (AI)

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

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

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

For more presentation information titles, please visit ISPOR 2022.

About Veradigm®

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

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

About Allscripts

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

05/05/2022

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

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

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

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

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

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

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

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

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

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

2022 Financial Outlook(1)

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

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

Conference Call

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

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

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

 

Footnote

 

(1)

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

 

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

About Allscripts

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

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

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

Forward-Looking Statements

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

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

 
 
 
 

Table 1

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2022

 

2021

ASSETS
Current assets:
Cash and cash equivalents

$82.8

$132.5

Restricted cash

1.3

1.3

Accounts receivable, net

170.5

171.6

Contract assets

55.1

63.5

Prepaid expenses and other current assets

56.2

60.5

Assets held for sale

1,174.7

1,125.1

Total current assets

$1,540.6

$1,554.5

Fixed assets, net

9.3

9.8

Software development costs, net

78.3

74.7

Intangible assets, net

158.3

149.7

Goodwill

520.2

506.6

Deferred taxes, net

6.1

0.0

Contract assets – long-term

19.2

28.2

Right-of-use assets – operating leases

16.8

18.3

Other assets 

81.4

83.4

Total assets

$2,430.2

$2,425.2

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$15.5

$5.3

Accrued expenses

61.8

54.5

Accrued compensation and benefits

18.0

31.1

Deferred revenue

106.5

120.7

Current operating lease liabilities

6.0

6.1

Liabilities related to assets held for sale

439.0

380.3

Total current liabilities

646.8

598.0

Long-term debt 

377.1

350.1

Deferred revenue

3.6

1.8

Deferred taxes, net

0.0

16.6

Long-term operating lease liabilities

15.2

16.8

Other liabilities

34.4

33.8

Total liabilities

$1,077.1

$1,017.1

Total stockholders’ equity

$1,353.1

$1,408.1

Total liabilities and stockholders’ equity

$2,430.2

$2,425.2

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

Three Months Ended March 31,

2022

 

2021

Revenue:
Provider

$118.7

 

$111.2

 

Payer & Life Sciences

24.0

 

22.5

 

Total Revenue

142.7

 

133.7

 

Cost of revenue:
Provider

57.0

 

58.7

 

Payer & Life Sciences

12.2

 

12.1

 

Total cost of revenue

69.2

 

70.8

 

Gross profit

73.5

 

62.9

 

Selling, general and administrative expenses 

41.3

 

32.2

 

Research and development

23.4

 

20.6

 

Amortization of intangible and acquisition-related assets

2.2

 

2.4

 

Income (loss) from operations

6.6

 

7.7

 

Interest expense, net (a)

(2.1

)

(3.1

)

Other

(0.4

)

0.8

 

Income (loss) before income taxes

4.1

 

5.4

 

Income tax (provision) benefit

14.4

 

(1.1

)

Income (loss) from continuing operations, net of tax

18.5

 

4.3

 

Income (loss) from discontinued operations

(5.0

)

5.9

 

Gain (loss) on sale of discontinued operations

0.0

 

0.6

 

Income tax (provision) from discontinued operations

9.4

 

(1.7

)

Income (loss) from discontinued operations, net of tax

4.4

 

4.8

 

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

$22.9

 

$9.1

 

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

$18.5

 

$4.3

 

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

$0.5

 

$0.0

 

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

19.0

 

4.3

 

Income (loss) from discontinued operations, net of tax

4.4

 

4.8

 

Adjusted Net Income (loss) earnings per Common Share

$23.4

 

$9.1

 

 
Income (loss) from continuing operations per share – basic

$0.16

 

$0.03

 

Income (loss) from discontinued operations per share – basic

$0.04

 

$0.03

 

Income (loss) per share – basic

$0.20

 

$0.06

 

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

$0.14

 

$0.03

 

Income (loss) from discontinued operations per share – diluted

$0.03

 

$0.03

 

Adjusted Income (loss) per share – diluted

$0.17

 

$0.06

 

 
Weighted average common shares outstanding:
Basic

115.9

 

140.2

 

Diluted

138.7

 

149.1

 

 

Three Months Ended March 31,

2022

 

2021

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

(1.5

)

(1.3

)

Interest income

0.1

 

0.1

 

Non-cash charges to interest expense

(0.6

)

(1.9

)

Interest expense, net

($2.1

)

($3.1

)

 
 
 
 
 

Table 3

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Cash flows from operating activities:
Net income (loss)

$22.9

 

$9.1

 

Less: Income(loss) from discontinued operations

4.4

 

4.8

 

Income (loss) from continuing operations

$18.5

 

$4.3

 

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

14.1

 

16.2

 

Non-cash lease expense, net

(3.2

)

(1.8

)

Stock-based compensation expense

6.3

 

2.8

 

Deferred Taxes

(17.0

)

4.7

 

Other (income) loss, net

0.6

 

0.7

 

Total non-cash adjustments to net income (loss)

0.8

 

22.6

 

Cash impact of changes in operating assets and liabilities:
Assets

31.6

 

24.2

 

Liabilities

(16.4

)

(36.0

)

Total cash impact of changes on operating assets and liabilities

15.2

 

(11.8

)

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

34.5

 

15.1

 

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

34.8

 

(10.6

)

Net cash provided by (used in) operating activities

69.3

 

4.5

 

Cash flows from investing activities:
Capital expenditures

(0.4

)

(0.2

)

Capitalized software

(9.6

)

(8.1

)

Cash paid for business acquisitions, net of cash acquired

(24.1

)

0.0

 

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

1.1

 

1.7

 

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

0.0

 

(0.2

)

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

(33.0

)

(6.8

)

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

(11.2

)

(12.2

)

Net cash provided by (used in) investing activities

(44.2

)

(19.0

)

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

(13.3

)

(4.7

)

Credit facility payments

(25.0

)

0.0

 

Credit facility borrowings, net of issuance costs

25.0

 

0.0

 

Repurchase of common stock

(49.7

)

0.0

 

Intercompany to/from parent/subsidiaries

11.7

 

28.3

 

Payment of acquisition and other financing obligations

0.0

 

(1.5

)

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

(51.3

)

22.1

 

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

(11.7

)

(29.6

)

Net cash provided by (used in) financing activities

(63.0

)

(7.5

)

Effect of exchange rate changes on cash and cash equivalents

0.0

 

0.0

 

Net increase (decrease) in cash and cash equivalents

(37.9

)

(22.0

)

Cash, cash equivalents and restricted cash, beginning of period

190.5

 

537.5

 

Cash, cash equivalents and restricted cash, end of period

$152.6

 

$515.5

 

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

($68.5

)

($60.4

)

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

$84.1

 

$455.1

 

 
 
 
 
 

Table 4

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions, except per share amounts and percentages)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Gross profit, as reported  

$73.5

 

$62.9

 

Acquisition-related amortization  

1.6

 

1.8

 

Stock-based compensation expense  

0.3

 

0.3

 

Total non-GAAP gross profit  

$75.4

 

$65.0

 

   
Income (loss) from operations, as reported  

$6.6

 

$7.7

 

Acquisition-related amortization  

3.8

 

4.2

 

Stock-based compensation expense   

6.9

 

4.0

 

Transaction and other  

6.6

 

0.0

 

Total non-GAAP income from operations  

$23.9

 

$15.9

 

   
Adjusted Net Income (loss) earnings per Common Share  

$23.4

 

$9.1

 

Loss (income) from discontinued operations  

5.0

 

(5.9

)

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

0.0

 

(0.6

)

Income tax provision from discontinued operations  

(9.4

)

1.7

 

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

$19.0

 

$4.3

 

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

(0.5

)

0.0

 

Income (loss) from continuing operations, net of tax  

$18.5

 

$4.3

 

Acquisition-related amortization  

3.8

 

4.2

 

Stock-based compensation expense   

6.9

 

4.0

 

Transaction and other  

6.6

 

0.0

 

Non-cash charges to interest expense and other  

0.0

 

1.3

 

Tax rate alignment  

(19.6

)

(2.6

)

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

$16.2

 

$11.2

 

   
Non-GAAP effective tax rate  

24

%

24

%

   
Weighted shares outstanding – basic  

115.9

 

140.2

 

Weighted shares outstanding – diluted  

138.7

 

149.1

 

Less the net effect of convertible notes and note hedges  

(13.6

)

(2.6

)

Non-GAAP Weighted shares outstanding – diluted  

125.1

 

146.5

 

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

$0.17

 

$0.06

 

Non-GAAP Income (loss) per share – diluted  

$0.13

 

$0.08

 

 
 
 
 
 

Table 5

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information – Adjusted EBITDA

(In millions, except percentages)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

Income (loss) from operations, as reported

$6.6

 

$7.7

 

Plus:
Depreciation and amortization

13.6

 

14.4

 

Stock-based compensation expense

6.9

 

4.0

 

Transaction and other

6.6

 

0.0

 

Adjusted EBITDA

$33.7

 

$26.1

 

 
Adjusted EBITDA margin (a)  

23.6

%

19.5

%

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

Table 6

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information – Free Cash Flow

(In millions)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2022

 

2021

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

$34.5

 

$15.1

 

Cash flows from investing activities:
Capital expenditures

(0.4

)

(0.2

)

Capitalized software

(9.6

)

(8.1

)

Free cash flow

$24.5

 

$6.8

 

 
 
 
 
 

Table 7

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information from Continuing Operations – Segment Details

(In millions)

(unaudited)

  

2021

 

2022 

Q1

Q2

Q3

Q4

Total

 

Q1

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

Revenue

126.4

133.4

137.2

155.2

552.2

 

136.3

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

Income from operations

19.0

25.2

24.2

42.4

110.8

 

25.5

Adjusted EBITDA

28.4

35.3

34.5

51.9

150.1

 

35.2

Adjusted EBITDA margin

22.5%

26.5%

25.1%

33.4%

27.2%

 

25.8%

Unallocated, Non-GAAP

 

 

 

 

 

 

 

Revenue

7.3

7.8

7.5

6.0

28.6

 

6.4

Gross Profit

4.3

4.8

3.9

3.3

16.3

 

4.3

Income from operations

(3.1)

(0.8)

1.4

6.3

3.8

 

(1.6)

Adjusted EBITDA

(2.2)

0.0

1.7

6.3

5.8

 

(1.5)

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

Revenue

133.7

141.2

144.7

161.2

580.8

 

142.7

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

Gross margin

48.6%

49.9%

49.5%

55.8%

51.2%

 

52.8%

Income from operations

15.9

24.4

25.6

48.7

114.6

 

23.9

Adjusted EBITDA

26.2

35.3

36.2

58.2

155.9

 

33.7

Adjusted EBITDA margin

19.6%

25.0%

25.0%

36.1%

26.8%

 

23.6%

 
 
 
 
 

Table 8

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information Reconciliation – Segment Details

(In millions)

(unaudited)

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Total Veradigm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

$126.4

$133.4

$137.2

$155.2

$552.2

 

$136.3

 

 

 

 

 

 

 

Gross profit, GAAP

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

$11.4

$17.9

$16.9

$35.2

$81.4

 

$18.1

Acquisition-related amortization

4.2

4.2

4.1

3.9

16.4

 

3.8

Stock-based compensation expense

3.4

3.1

3.2

3.3

13.0

 

3.6

Non-GAAP Income (loss) from operations

$19.0

$25.2

$24.2

$42.4

$110.8

 

$25.5

 

 

 

 

 

 

 

Asset Impairment Charges

0.0

0.2

0.6

0.0

0.8

 

0.0

Depreciation and amortization

9.4

9.9

9.7

9.5

38.5

 

9.7

Adjusted EBITDA

$28.4

$35.3

$34.5

$51.9

$150.1

 

$35.2

 

 

 

 

 

 

 

Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

$7.3

$7.8

$7.5

$6.0

$28.6

 

$6.4

 

 

 

 

 

 

 

Gross Profit, as reported

$4.3

$4.8

$3.9

$3.3

$16.3

 

$4.3

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

($3.7)

($1.1)

$1.5

$6.4

$2.9

 

($11.5)

Stock-based compensation expense

0.6

0.3

(0.1)

(0.1)

0.9

 

3.3

Transaction and other

0.0

0.0

0.0

0.0

0.0

 

6.6

Non-GAAP Income (loss) from operations

($3.1)

($0.8)

$1.4

$6.3

$3.8

 

($1.6)

 

 

 

 

 

 

 

Depreciation and amortization

0.9

0.8

0.3

0.0

2.0

 

0.1

Adjusted EBITDA

($2.2)

$0.0

$1.7

$6.3

$5.8

 

($1.5)

 
 
 
 
 

Table 9

Allscripts Healthcare Solutions, Inc.

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

(In millions)

(unaudited)

 

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Veradigm Provider, Non-GAAP

 

 

 

 

 

 

 

Revenue

103.9

108.1

110.8

126.3

449.0

 

112.3

Gross profit

49.8

52.4

54.2

70.6

227.0

 

58.8

Gross margin

47.9%

48.5%

48.9%

55.9%

50.6%

 

52.4%

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

Revenue

22.5

25.3

26.5

28.9

103.2

 

24.0

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

Revenue

126.4

133.4

137.3

155.2

552.2

 

136.3

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

 

 

 

 

 

 

 

Allscripts Consolidated Provider, Non-GAAP

 

 

 

 

 

 

 

Revenue

111.2

115.9

118.3

132.3

477.6

 

118.7

Gross profit

54.1

57.2

58.1

73.9

243.3

 

63.1

Gross margin

48.7%

49.4%

49.1%

55.9%

50.9%

 

53.2%

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

Revenue

22.5

25.3

26.5

28.9

103.2

 

24.0

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

 

 

 

 

 

 

 

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

Revenue

133.7

141.2

144.8

161.2

580.8

 

142.7

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

Gross margin

48.6%

49.9%

49.4%

55.8%

51.2%

 

52.8%

 
 
 
 
 

Table 10

Allscripts Healthcare Solutions, Inc.

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

(In millions)

(unaudited)

2021

 

2022

Q1

Q2

Q3

Q4

Total

 

Q1

Veradigm Provider

 

 

 

 

 

 

 

Gross profit, as reported 

$48.2

$50.8

$52.6

$69.0

$220.6

 

$57.4 

Acquisition-related amortization

1.3

1.3

1.3

1.3

5.2

 

1.1

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$49.8

$52.4

$54.2

$70.6

$227.0

 

$58.8 

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences

 

 

 

 

 

 

 

Gross profit, as reported 

$10.4

$12.8

$13.1

$15.6

$51.9

 

$11.8 

Acquisition-related amortization

0.5

0.5

0.4

0.5

1.9

 

0.5

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

Non-GAAP Gross profit 

$10.9

$13.3

$13.5

$16.1

$53.8

 

$12.3 

 

 

 

 

 

 

 

Total Veradigm

 

 

 

 

 

 

 

Gross profit, as reported 

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2 

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1 

 

 

 

 

 

 

 

Allscripts Consolidated Provider

 

 

 

 

 

 

 

Gross profit, as reported 

$52.5

$55.6

$56.5

$72.3

$236.9

 

$61.7 

Acquisition-related amortization

1.3

1.3

1.3

1.3

5.2

 

1.1

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$54.1

$57.2

$58.1

$73.9

$243.3

 

$63.1 

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences

 

 

 

 

 

 

 

Gross profit, as reported 

$10.4

$12.8

$13.1

$15.6

$51.9

 

$11.8 

Acquisition-related amortization

0.5

0.5

0.4

0.5

1.9

 

0.5

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

Non-GAAP Gross profit 

$10.9

$13.3

$13.5

$16.1

$53.8

 

$12.3 

 

 

 

 

 

 

 

Total Allscripts Consolidated

 

 

 

 

 

 

 

Gross profit, as reported 

$62.9

$68.4

$69.6

$87.9

$288.8

 

$73.5 

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

Non-GAAP Gross profit 

$65.0

$70.5

$71.6

$90.0

$297.1

 

$75.4 

 

Explanation of Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

05/02/2022

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

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

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

About Allscripts

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

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

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

04/21/2022

Allscripts to Release First-Quarter 2022 Financial Results May 5

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

First-Quarter 2022 Financial Results Call Details

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

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

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

About Allscripts

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

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

03/07/2022

Allscripts Introduces New App Expo to Showcase a Broader Range of Integrated Solutions

Formerly known as the Allscripts Application Store, the refreshed site includes global tags and dedicated pages to promote even more certified applications

CHICAGO–(BUSINESS WIRE)–Mar. 7, 2022–
Allscripts (NASDAQ: MDRX) announced today that its Application Store has been relaunched as the Allscripts App Expo The rebrand will ensure Allscripts clients have an engaging way to identify all applications that have been built and certified through the Allscripts Developer Program (ADP) using Allscripts proprietary and FHIR APIs, in addition to select third party solutions sold by Allscripts. Previously, only certain partner applications were searchable and featured on the company’s Application Store. With this expansion, Allscripts will provide the opportunity for all active developers with a certified solution to showcase their solutions online via the App Expo.

Allscripts, one of the world’s largest Health IT companies, first exposed APIs for third party connectivity in 2007 and launched a full developer program to support interoperability with Allscripts solutions and the industry’s first online application store in 2010. The company’s developer program enables developers to connect with multiple Allscripts electronic health records (EHR) and practice management solutions. Allscripts supports integration with on-premise, data-center-hosted and cloud-hosted environments across all specialties and for all sizes of physician offices and hospital organizations. Today there are hundreds of certified apps and devices available for Allscripts clients to choose from, with new certified solutions frequently added to the site.

“Over the past few years, we have seen an unprecedented increase in funding for health technology start-ups, with more organizations than ever looking to connect with Allscripts solutions via FHIR, our proprietary APIs and the other connectivity options we support through our Developer Program. Our program has continued to grow and expand to support this activity and foster innovation in our industry,” said Tina Joros, Vice President and General Manager of Allscripts. “The new App Expo is just the latest step toward making it easier for our clients to find solutions that will continue to help them improve their technology ecosystem and accomplish their practice and health system goals.”

On March 8 at 10 a.m. ET, Tina Joros will participate in a panel discussion during ViVE 2022 in Miami, FL, titled “Setting the Future on FHIR or Setting FHIR on Fire.” The panelists will discuss the continuum of data-sharing in healthcare, the ever-evolving world of interoperability and more. The Allscripts App Expo will also be on display in the Allscripts booth at ViVE (#450) and at the annual Health Information Management Systems Society (HIMSS) conference March 15-17 in Orlando, FL in booth 1279. You can visit the new site at https://expo.allscripts.com and search by keyword, Allscripts products or categories.

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 The Allscripts Blog.

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

03/02/2022

Allscripts to Sell the Net Assets of Its Hospitals & Large Physician Practices Business Segment to Constellation Software

CHICAGO–(BUSINESS WIRE)–Mar. 2, 2022–
Allscripts Healthcare Solutions (NASDAQ: MDRX) (“Allscripts”) announced today that it has reached an agreement with Constellation Software Inc. (TSX:CSU), through its wholly-owned subsidiary N. Harris Computer Corporation (“Harris”), to sell Harris the net assets of Allscripts Hospitals and Large Physician Practices business segment. The Hospitals and Large Physician Practices business segment includes the Sunrise™, Paragon®, Allscripts TouchWorks®, Allscripts® Opal, STAR™, HealthQuest™ and dbMotion™ solutions. The assets of Allscripts Veradigm business segment are not included in this transaction and will continue to be owned by Allscripts going forward.

“The medical industry we faithfully serve has gone through tremendous change and the needs of the customers in our different business segments continue to evolve in different ways. We think this transaction maximizes focus as well as future opportunity for our clients, our more than 7,500 associates and our shareholders,” said Paul M. Black, Allscripts Chief Executive Officer. “Harris has demonstrated excellence in software development, customer satisfaction and worldwide growth in healthcare. We are pleased that our solutions will be a key strategic component of Harris’ plans to become leaders in digital health. As the cornerstone of the Harris portfolio, we are proud that our customers will continue to benefit from a true platform of health.”

The purchase price consideration is up to $700 million cash, consisting of a fixed price of $670 million paid at closing, plus contingent consideration of up to $30 million based on performance of the business during the two years following transaction closing. The transaction is subject to regulatory approval and customary closing conditions, and is expected to close during the second quarter.

“We have been watching and admiring the hospitals and large physician practices franchise for many years,” said Harris CEO Jeff Bender. “We believe that we are the perfect forever home for the many talented employees and loyal customers that are the backbone of the franchise. We are excited to begin the next chapter in our Harris story, continuing to serve those who serve us in the communities where we live, by partnering with healthcare professionals to deliver care that improves lives.”

William Blair & Company served as advisor and provided a fairness opinion on the transaction to Allscripts Board of Directors. Additional details regarding the sale will be made available in a Form 8-K to be filed by Allscripts with the Securities and Exchange Commission.

Conference Call

Allscripts will conduct a conference call tomorrow, Thursday, March 3, 2022, at 8:30AM Eastern Time to discuss further details of the transaction and provide an updated outlook for 2022. 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 # 13727538.

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 The Allscripts Blog.

About Constellation Software Inc.

Constellation’s common shares are listed on the Toronto Stock Exchange under the symbol “CSU”. Constellation acquires, manages and builds vertical market software businesses.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the timing or ultimate completion of the sale of the Hospitals and Large Physician Practices business, as the transaction is subject to certain closing conditions as noted herein, our use of the proceeds from the contemplated sale of our Hospital and Large Physician Practices business, and potential benefits to our 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. Allscripts does not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in its business, financial condition or operating results over time.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Tom Lynch

312-386-6735

tom.lynch@allscripts.com

Source: Allscripts

03/01/2022

Social Security Administration (SSA) Selects Veradigm eChart Courier™ to Automate Medical Chart Retrieval

Secure web services connection between SSA and Veradigm to reduce patient health record retrieval time from weeks or days to just minutes for millions of patient-authorized requests.

CHICAGO–(BUSINESS WIRE)–Mar. 1, 2022–
Veradigm®, a leading provider of healthcare data and technology solutions and a business unit of Allscripts Healthcare Solutions (NASDAQ: MDRX), today announced an agreement with the United States Social Security Administration (SSA), an independent agency of the U.S. federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivor benefits.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220301005162/en/

SSA Disability Determination Services (DDS) processes millions of disability applications each year and makes millions of patient-authorized requests annually for health records from healthcare providers to support all levels of the disability adjudication process.

This agreement allows SSA to electronically request and receive electronic health records through the Veradigm Network solution, Veradigm eChart Courier™, thereby eliminating the need to allocate time and resources for manual medical record requests. Leveraging interoperability within the disability process also minimizes provider burden for record collection, accelerates adjudication timelines and allows for improved customer experience for SSA applicants and beneficiaries.

“Veradigm eChart Courier™ will enable SSA to leverage health information technology to automate the request and receipt of data to reduce patient health record retrieval time from weeks or days to just minutes,” says Jay Bhattacharyya, SVP & GM, Veradigm. “These types of efficiencies, at scale, can help transform the provision of healthcare in the United States.”

Establishing a direct web services connection between SSA and Veradigm will give more healthcare providers the capability to receive standardized electronic requests for health records, along with a patient’s authorization to release those records, and to respond automatically.

About Veradigm®

Veradigm® is a business unit of Allscripts, dedicated to simplifying the complicated healthcare system with next-generation healthcare solutions. An integrated clinical technology team combining data-driven clinical insights with actionable tools to help healthcare stakeholders improve the quality, efficiency, and the value of healthcare, Veradigm is helping transform healthcare for biopharma, health plans, healthcare providers, health technology partners, and most importantly, the patients they serve. To learn more, visit www.veradigm.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.

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

02/24/2022

Allscripts Announces Fourth Quarter and Fiscal Year 2021 Results
  • Fourth quarter GAAP diluted EPS of $0.68; non-GAAP diluted EPS of $0.79
  • Fourth quarter bookings of $219 million up 21% from the fourth quarter of 2020
  • Generated $66 million of cash flow from continuing operations in the quarter

CHICAGO–(BUSINESS WIRE)–Feb. 24, 2022–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three and twelve months ended December 31, 2021.

Bookings(1) were $219 million in the fourth quarter of 2021. This result compares with $181 million in the fourth quarter of 2020. Contract revenue backlog totaled $3.8 billion as of December 31, 2021.

Fourth quarter 2021 revenue was $392 million compared with $386 million in the fourth quarter of 2020.

On a GAAP basis in the fourth quarter of 2021, income from operations was $41 million compared with a loss from operations in the fourth quarter of 2020 of $68 million. Non-GAAP income from operations in the fourth quarter of 2021 was $65 million compared with $47 million in the fourth quarter of 2020.

GAAP net income in the fourth quarter of 2021 totaled $87 million compared with $728 million in the fourth quarter of 2020. GAAP net income in the fourth quarter of 2020 included the gain on sale from the divestiture of two businesses, which contributed a combined $793 million to net income. Non-GAAP net income in the fourth quarter of 2021 was $99 million compared with $31 million in the fourth quarter of 2020.

GAAP diluted earnings per share in the fourth quarter of 2021 were $0.68 compared with $4.82 in the fourth quarter of 2020. GAAP diluted earnings per share in the fourth quarter 2020 included the gain on sale from the divestiture of two businesses, which contributed a combined $5.25 to earnings per share. Non-GAAP diluted earnings per share in the fourth quarter of 2021 was $0.79 compared with $0.20 in the fourth quarter of 2020.

Adjusted EBITDA totaled $94 million in the fourth quarter of 2021, compared with $77 million in the fourth quarter of 2020. For the full year ended December 31, 2021, GAAP income from operations was $77 million compared to a loss of $131 million for 2020 and Adjusted EBITDA was $301 million compared to $225 million in 2020.

For the full year ended December 31, 2021, cash flow from continuing operations was $248 million compared with $12 million in 2020, and free cash flow for the full year 2021 was $170 million compared with ($93 million) in 2020.

Stock repurchases totaled $108 million in the fourth quarter. As previously announced, a new share repurchase program approved by the Board of Directors allows Allscripts to purchase up to $250 million of its common stock and does not have a termination date.

“Allscripts delivered another strong quarter, reporting significant year-over-year growth in bookings, operating income, Adjusted EBITDA, and free cash flow. 2021 was a year of forward momentum for our company, as we made considerable, positive gains winning with our clients, shareholders, and talent,” said Paul M. Black, Allscripts Chief Executive Officer. “As we look ahead, we will continue to drive meaningful outcomes for our clients, improved margins, and free cash flow generation.”

2022 Financial Outlook(2)

For the full year 2022, Allscripts currently expects to achieve:

  • Consolidated free cash flow from continuing operations between $165 million and $175 million
  • Consolidated revenue growth of 1% to 2%

Conference Call

Allscripts will conduct a conference call today, Thursday, February 24th, 2022, at 4:30 PM Eastern Time to discuss its earnings release and other information. Participants may access the conference call via webcast at http://investor.allscripts.com. Participants also may access the conference call by dialing +1 (877) 269-7756 or +1 (201) 689-7817 (international) and requesting Conference ID # 13726412.

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 # 13726412.

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 operating 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.

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

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

Forward-Looking Statements

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

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

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

2021

2020

ASSETS
Current assets:
Cash and cash equivalents

$188.3

$531.1

Restricted cash

2.2

6.4

Accounts receivable, net

327.1

347.3

Contract assets

124.8

106.7

Income tax receivable

0.0

25.4

Prepaid expenses and other current assets

118.9

136.3

Total current assets

$761.3

$1,153.2

Fixed assets, net

47.9

72.2

Software development costs, net

172.1

193.2

Intangible assets, net

235.9

286.6

Goodwill

974.5

974.7

Deferred taxes, net

6.6

5.8

Contract assets – long-term

56.8

43.7

Right-of-use assets – operating leases

68.9

96.6

Other assets

101.2

91.6

Total assets

$2,425.2

$2,917.6

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$16.9

$35.9

Accrued expenses

92.5

100.2

Accrued compensation and benefits

92.2

118.8

Deferred revenue

325.9

334.8

Current operating lease liabilities

19.6

22.3

Current liabilities attributable to discontinued operations

0.0

322.8

Total current liabilities

547.1

934.8

Long-term debt

350.1

167.6

Deferred revenue

4.4

3.4

Deferred taxes, net

16.6

18.2

Long-term operating lease liabilities

64.8

93.5

Other liabilities

34.1

33.9

Total liabilities

$1,017.1

$1,251.4

Total stockholders’ equity

$1,408.1

$1,666.2

Total liabilities and stockholders’ equity

$2,425.2

$2,917.6

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,

2021

2020

2021

2020

Revenue:
Software delivery, support and maintenance

$245.3

 

$243.6

 

$916.1

 

$923.7

 

Client services

146.4

 

142.8

 

586.9

 

579.0

 

Total revenue

391.7

 

386.4

 

1,503.0

 

1,502.7

 

Cost of revenue:
Software delivery, support and maintenance

69.9

 

71.3

 

278.4

 

288.1

 

Client services

123.5

 

123.9

 

486.3

 

530.5

 

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

29.3

 

30.2

 

118.7

 

118.4

 

Total cost of revenue

222.7

 

225.4

 

883.4

 

937.0

 

Gross profit

169.0

 

161.0

 

619.6

 

565.7

 

Selling, general and administrative expenses

74.2

 

93.8

 

313.8

 

389.9

 

Research and development

47.8

 

54.3

 

193.7

 

206.1

 

Asset impairment charges

0.0

 

74.7

 

11.8

 

75.0

 

Amortization of intangible and acquisition-related assets

5.6

 

6.3

 

23.1

 

25.6

 

Income (loss) from operations

41.4

 

(68.1

)

77.2

 

(130.9

)

Interest expense, net (b)

(3.2

)

(6.1

)

(12.1

)

(32.4

)

Other

67.0

 

(0.6

)

96.7

 

14.0

 

Income (loss) before income taxes

105.2

 

(74.8

)

161.8

 

(149.3

)

Income tax (provision) benefit

(17.9

)

10.1

 

(27.9

)

16.7

 

Income (loss) from continuing operations, net of tax

87.3

 

(64.7

)

133.9

 

(132.6

)

Income (loss) from discontinued operations

0.0

 

16.8

 

0.0

 

71.4

 

Gain (loss) on sale of discontinued operations

0.0

 

1,156.5

 

0.6

 

1,156.5

 

Income tax (provision) from discontinued operations

0.0

 

(380.8

)

(0.1

)

(394.9

)

Income (loss) from discontinued operations, net of tax

0.0

 

792.5

 

0.5

 

833.0

 

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

$87.3

 

$727.8

 

$134.4

 

$700.4

 

 
Income (loss) from continuing operations per share – basic

$0.73

 

($0.43

)

$1.03

 

($0.83

)

Income (loss) from discontinued operations per share – basic

$0.00

 

$5.25

 

$0.00

 

$5.23

 

Income (loss) per share – basic

$0.73

 

$4.82

 

$1.03

 

$4.40

 

Income (loss) from continuing operations per share – diluted

$0.68

 

($0.43

)

$0.97

 

($0.83

)

Income (loss) from discontinued operations per share – diluted

$0.00

 

$5.25

 

$0.00

 

$5.23

 

Income (loss) per share – diluted

$0.68

 

$4.82

 

$0.97

 

$4.40

 

 
Weighted average common shares outstanding:
Basic

120.1

 

150.9

 

130.1

 

159.3

 

Diluted

127.8

 

150.9

 

138.7

 

159.3

 

 
Three Months Ended December 31, Twelve Months Ended December 31,

2021

2020

2021

2020

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

22.5

 

22.7

 

91.3

 

86.3

 

Amortization of acquisition-related intangible assets

6.8

 

7.5

 

27.4

 

32.1

 

Total amortization of software development and acquisition-related assets

$29.3

 

$30.2

 

$118.7

 

$118.4

 

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

(1.6

)

(4.0

)

(5.7

)

(18.1

)

Interest income

0.3

 

0.3

 

1.1

 

1.7

 

Non-cash charges to interest expense

(1.9

)

(2.4

)

(7.5

)

(16.0

)

Interest expense, net

($3.2

)

($6.1

)

($12.1

)

($32.4

)

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,

2021

2020

2021

2020

Cash flows from operating activities:
Net income (loss)

$87.3

 

$727.8

 

$134.4

 

$700.4

 

Less: Income(loss) from discontinued operations

0.0

 

792.5

 

0.5

 

833.0

 

Income (loss) from continuing operations

$87.3

 

($64.7

)

$133.9

 

($132.6

)

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

43.1

 

46.4

 

176.1

 

192.3

 

Non-cash lease expense, net

(0.8

)

0.9

 

(3.8

)

1.4

 

Stock-based compensation expense

9.3

 

8.1

 

35.2

 

34.0

 

Deferred Taxes

(0.4

)

(6.2

)

(2.1

)

(3.3

)

Impairment of assets and long-term investments

0.0

 

74.7

 

11.8

 

76.6

 

Gain on sale of businesses, net

0.0

 

0.0

 

(8.4

)

0.0

 

Other (income) loss, net

(61.4

)

(4.9

)

(70.9

)

(23.1

)

Total non-cash adjustments to net income (loss)

(10.2

)

119.0

 

137.9

 

277.9

 

Cash impact of changes in operating assets and liabilities:
Assets

(0.3

)

(63.9

)

12.8

 

0.7

 

Liabilities

(10.5

)

65.2

 

(36.3

)

13.5

 

Accrued DOJ settlement

0.0

 

(58.4

)

0.0

 

(147.2

)

Total cash impact of changes on operating assets and liabilities

(10.8

)

(57.1

)

(23.5

)

(133.0

)

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

66.3

 

(2.8

)

248.3

 

12.3

 

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

(1.2

)

(175.8

)

(323.7

)

(119.0

)

Net cash provided by (used in) operating activities

65.1

 

(178.6

)

(75.4

)

(106.7

)

Cash flows from investing activities:
Capital expenditures

(0.7

)

(9.2

)

(5.3

)

(17.0

)

Capitalized software

(17.8

)

(16.3

)

(73.3

)

(88.0

)

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

61.2

 

1,710.0

 

68.8

 

1,734.9

 

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

0.0

 

(3.2

)

(2.4

)

(7.1

)

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

42.7

 

1,681.3

 

(12.2

)

1,622.8

 

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

0.0

 

(1.2

)

0.0

 

(7.6

)

Net cash provided by (used in) investing activities

42.7

 

1,680.1

 

(12.2

)

1,615.2

 

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

(0.1

)

(0.4

)

(14.0

)

(5.9

)

Payments for issuance costs on 0.875% Convertible Senior Notes

0.0

 

0.0

 

0.0

 

(0.8

)

Repayment of Convertible Senior Notes

0.0

 

0.0

 

0.0

 

(352.3

)

Credit facility payments

(25.0

)

(1,140.0

)

(75.0

)

(1,315.0

)

Credit facility borrowings, net of issuance costs

0.0

 

230.0

 

250.0

 

903.6

 

Repurchase of common stock

(108.5

)

(279.6

)

(417.5

)

(334.9

)

Payment of acquisition and other financing obligations

0.0

 

0.0

 

(2.4

)

(4.4

)

Net cash provided by (used in) financing activities

(133.6

)

(1,190.0

)

(258.9

)

(1,109.7

)

Effect of exchange rate changes on cash and cash equivalents

0.0

 

1.1

 

(0.5

)

1.2

 

Net increase (decrease) in cash and cash equivalents

(25.8

)

312.6

 

(347.0

)

400.0

 

Cash, cash equivalents and restricted cash, beginning of period

216.3

 

224.9

 

537.5

 

137.5

 

Cash, cash equivalents and restricted cash, end of period

$190.5

 

$537.5

 

$190.5

 

$537.5

 

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,

2021

2020

2021

2020

Gross profit, as reported

$169.0

 

$161.0

 

$619.6

 

$565.7

 

Acquisition-related amortization

6.8

 

7.5

 

27.4

 

32.1

 

Stock-based compensation expense

1.4

 

1.5

 

5.6

 

6.0

 

Restructuring and other

0.0

 

(0.1

)

0.0

 

2.8

 

Total non-GAAP gross profit

$177.2

 

$169.9

 

$652.6

 

$606.6

 

 
Income (loss) from operations, as reported

$41.4

 

($68.1

)

$77.2

 

($130.9

)

Acquisition-related amortization

12.5

 

13.8

 

50.6

 

57.8

 

Stock-based compensation expense

11.0

 

9.5

 

43.5

 

38.4

 

Restructuring and other

0.0

 

91.5

 

(0.0

)

141.2

 

Total non-GAAP income from operations

$64.9

 

$46.7

 

$171.3

 

$106.5

 

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

$87.3

 

$727.8

 

$134.4

 

$700.4

 

Loss (income) from discontinued operations

0.0

 

(16.8

)

0.0

 

(71.4

)

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

0.0

 

(1,156.5

)

(0.6

)

(1,156.5

)

Income tax provision from discontinued operations

0.0

 

380.8

 

0.1

 

394.9

 

Income (loss) from continuing operations, net of tax

$87.3

 

($64.7

)

$133.9

 

($132.6

)

Acquisition-related amortization

12.5

 

13.8

 

50.6

 

57.7

 

Stock-based compensation expense

11.0

 

9.5

 

43.5

 

38.4

 

Restructuring and other

0.0

 

91.5

 

(0.0

)

141.2

 

Non-cash charges to interest expense and other

1.4

 

1.2

 

0.2

 

16.1

 

Tax rate alignment

(13.3

)

(19.9

)

(33.6

)

(41.7

)

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

$98.9

 

$31.4

 

$194.6

 

$79.1

 

 
Non-GAAP effective tax rate

24

%

24

%

24

%

24

%

 
Weighted shares outstanding – basic

120.1

 

150.9

 

130.1

 

159.3

 

Weighted shares outstanding – diluted

127.8

 

155.9

 

138.7

 

162.0

 

Less effect of convertible note hedges

(2.5

)

0.0

 

(2.8

)

0.0

 

Non-GAAP Weighted shares outstanding – diluted

125.3

 

155.9

 

135.9

 

162.0

 

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

$0.68

 

($0.43

)

$0.97

 

($0.83

)

Non-GAAP Income (loss) per share – diluted

$0.79

 

$0.20

 

$1.43

 

$0.49

 

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,

2021

2020

2021

2020

Income (loss) from operations, as reported

$41.4

 

($68.1

)

$77.2

 

($130.9

)

Plus:
Depreciation and amortization

41.3

 

43.9

 

168.6

 

176.0

 

Asset impairment charges

0.0

 

0.0

 

11.8

 

0.0

 

Stock-based compensation expense

11.0

 

9.5

 

43.5

 

38.4

 

Restructuring and other

0.0

 

91.5

 

0.0

 

141.2

 

Adjusted EBITDA

$93.7

 

$76.8

 

$301.1

 

$224.7

 

 
Adjusted EBITDA margin (a)

23.9

%

19.9

%

20.0

%

15.0

%

 
(a) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.
Table 6
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information – Free Cash Flow
(In millions)
(Unaudited)
 
Three Months Ended December 31, Twelve Months Ended December 31,

2021

2020

2021

2020

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

$66.3

 

($2.8

)

$248.3

 

$12.3

 

Cash flows from investing activities:
Capital expenditures

(0.7

)

(9.2

)

(5.3

)

(17.0

)

Capitalized software

(17.8

)

(16.3

)

(73.3

)

(88.0

)

Free cash flow

$47.8

 

($28.3

)

$169.7

 

($92.7

)

Explanation of Non-GAAP Financial Measures

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

  • Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related amortization; 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 income/(loss) from operations, as reported, and adjusts for: depreciation and amortization; asset impairment charges; stock-based compensation expense; and restructuring and other costs. Reconciliations to GAAP income/(loss) from operations 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; and non-cash charges to interest expense and other. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income/(loss) attributable to Allscripts Healthcare Solutions, Inc. are found in Table 4 within this press release.
  • Non-GAAP diluted weighted shares outstanding consists of diluted weighted shares outstanding, as reported, less the 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 diluted weighted shares outstanding, as defined above, during the applicable period.
  • Free cash flow consists of GAAP cash flows from continuing operations in the applicable period, net of capital expenditures and capitalized software costs. Reconciliations to GAAP cash flows from continuing operations are found in Table 6 within this press release.

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

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

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. Other costs also include non-cash impairment charges based on management’s assessment of the likelihood of near-term recovery of the investments’ value.

Allscripts excludes 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.

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

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

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

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

01/24/2022

Allscripts Announces Preliminary Fourth Quarter and Fiscal Year 2021 Results and New Share Repurchase Program

CHICAGO–(BUSINESS WIRE)–Jan. 24, 2022–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) today announced preliminary financial results for the three and twelve months ended December 31, 2021.

Revenue for the fourth quarter of 2021 is expected to be between $390 million and $395 million.

For the full year 2021, the company expects GAAP operating income to be between $70 million and $75 million and expects Adjusted EBITDA(1) to be between $295 million and $300 million, an increase from the prior outlook range of between $275 million and $285 million.

The Company also expects full year 2021 cash flow from continuing operations to be between $245 million and $250 million and expects free cash flow(2) to be between $165 million and $170 million, an increase from the prior outlook range of between $145 million and $155 million.

The company also announced that its Board of Directors has approved a new share repurchase program under which Allscripts may purchase up to $250 million of its common stock. The new share repurchase program does not have a termination date and replaces the previous authorization to repurchase up to $350 million of common stock. In the fourth quarter of 2021, Allscripts repurchased $108 million of its common stock, and this fully utilized all remaining authorization under the prior program.

The preliminary financial information presented in this press release is based on current expectations and may be adjusted as a result of, among other things, completion of customary quarterly review and audit procedures and other developments that may occur before the completion of those procedures.

The company will report its financial results for the three and twelve months ended December 31, 2021 after the close of stock market hours on Thursday, February 24, 2022. Allscripts management plans to host a conference call and webcast to discuss the company’s earnings at 4:30 p.m. Eastern Time that same day.

Footnotes

(1) Allscripts estimates the preliminary Adjusted EBITDA range and reconciling items to be as follows:

Twelve Months Ended December 31,

2021

2021

Expected Income (loss) from operations, as reported

$70

$75

Plus Expected:
Depreciation and amortization

169

169

Asset impairment charges

12

12

Stock-based compensation expense

44

44

Expected Adjusted EBITDA

$295

$300

 
Adjusted EBITDA margin (a)

19.7%

19.9%

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

Please see the “Explanation of Non-GAAP Financial Measures” at the end of this press release for detailed information on calculating non-GAAP financial measures.

(2) Allscripts estimates the preliminary free cash flow range and reconciling items to be as follows:

Twelve Months Ended December 31,

2021

2021

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

$245

$250

Expected Cash flows from investing activities:
Capital expenditures

(6)

(6)

Capitalized software

(74)

(74)

Expected Free cash flow

$165

$170

 

Please see the “Explanation of Non-GAAP Financial Measures” at the end of this press release for detailed information on calculating non-GAAP financial measures.

Fourth-Quarter and Full Year 2021 Financial Results Call Details

The Allscripts earnings announcement will be distributed immediately after the close of regular stock market hours on Thursday, February 24, 2022. The announcement will also be available at Allscripts investor relations website.

To listen to the conference call, participants may log onto the Allscripts Investor Relations website. Participants also may access the conference call by dialing 877-269-7756 or 201-689-7817 and requesting Conference ID # 13726412.

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 # 13726412.

About Allscripts

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

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

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our preliminary fourth quarter of 2021 and fiscal year 2021 financial results. 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” “preliminary” and similar terms. Actual results could differ significantly from those set forth in the forward-looking statements, and reported results should not be considered an indication of future performance or events.

Certain factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to: our ability to achieve the margin targets associated with our margin improvement initiatives within the contemplated time periods, if at all; the magnitude, severity and duration of the COVID-19 pandemic, including the impacts of the pandemic, along with the impacts of our responses and the responses by governments and other businesses to the pandemic, on our business, our employees, our clients and our suppliers; security breaches resulting in unauthorized access to our or our clients’ computer systems or data, including denial-of-services, ransomware or other Internet-based attacks; the failure by Practice Fusion to comply with the terms of the settlement agreements with the U.S. Department of Justice (the “DOJ”), the associated costs and the extent of third party indemnification or insurance coverage and the possibility that additional investigations and proceedings may be brought relating to Practice Fusion’s business practices; the expected financial results and integration of, and liabilities associated with, businesses acquired by us (including the civil investigation by the U.S. Attorney’s Office involving our Enterprise Information Solutions business) and risks associated with our other investments and dispositions; our failure to compete successfully in a highly competitive industry subject to rapid technological change; consolidation in our industry; our ability to maintain and expand our business with existing clients or effectively transition clients to newer products; current and future laws, regulations and industry initiatives; increased government involvement in our industry; changes in interoperability or other regulatory standards; the possibility that our products or services could fail to perform due to errors or similar problems; 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; our ability to protect our intellectual property rights; the outcome of legal proceedings involving us; our ability to hire, retain and motivate key personnel; performance by our content and service providers; liability for use of content; price reductions as a result of changes to the healthcare regulatory landscape; our ability to license and integrate third-party technologies; business disruptions as a result in IT system failures or other disruptions; risks related to global operations; variability of our quarterly operating results; risks related to our outstanding indebtedness; changes in tax rates or laws; our ability to maintain proper and effective internal controls; asset and long-term investment impairment charges. Additional information about these and other risks, uncertainties, and factors affecting our business is contained in our filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Qs. In addition, there is no guarantee as to the exact number of shares or value that will be repurchased under the share 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. We do not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in our business, financial condition or operating results over time.

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 Adjusted EBITDA 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:

  • Adjusted EBITDA is a non-GAAP measure and consists of GAAP operating income/(loss), as reported, and adjusts for: depreciation and amortization; asset impairment charges; and stock-based compensation expense.
  • Free cash flow consists of GAAP cash flows from continuing operations in the applicable period, net of capital expenditures and capitalized software costs.

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 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.

Management also believes that Adjusted EBITDA and free cash flow provide useful supplemental information to management and investors regarding the underlying performance of Allscripts business operations. Restructuring and other costs recorded in accordance with GAAP can make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP adjustments provided and discussed herein.

Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use Adjusted EBITDA to measure achievement under Allscripts stock and cash incentive compensation plans. Note, however, that Adjusted EBITDA is a performance measure only, and it does 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 preliminary reconciliations of non-GAAP financial measures with GAAP financial measures contained herein.

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Tom Lynch

312-386-6765

tom.lynch@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

11/22/2021

Next Level Urgent Care Selects Allscripts to Help Drive Clinical, Financial and Operational Performance

Houston urgent care facilities to implement Allscripts electronic health record, financial management and patient engagement solutions, as well as Microsoft Azure hosting

CHICAGO–(BUSINESS WIRE)–Nov. 22, 2021–
Allscripts (NASDAQ: MDRX) announced today that Next Level Urgent Care has selected Allscripts to improve connectivity, provide better electronic health record (EHR) workflows and greatly advance analytics to all of its locations. All Next Level Urgent Care’s facilities will implement Allscripts Touchworks® platform as well as Microsoft Azure hosting and services.

Next Level Urgent Care provides walk-in care for non-life-threatening illnesses and injuries such as sprains, strains, fractures, lacerations, allergies, rashes, and congestion issues, with locations throughout the Houston area. As the first organization in Texas to achieve Urgent Care Center Accreditation through the American Academy of Urgent Care Medicine (AAUCM), a voluntary evaluation that measures the quality of services and performance against nationally recognized standards, Next Level Urgent Care clinics provide an alternative for the treatment of non-life-threatening health conditions.

TouchWorks EHR is a leading EHR platform for large, multi-specialty practices, management services organization (MSO) platforms, and academic and independent delivery networks (IDNs). With its open architecture and configurability, TouchWorks EHR can scale easily and integrate with existing solutions. The EHR provides the right solution for ambulatory practices, including teaching and research-oriented practices, to provide improved patient care and better facilitate population health initiatives.

“Allscripts will help us achieve a single, clinical, patient record and unified workflow for medical staff to better serve patients that are in search of high-quality, cost-effective, immediate medical care for non-life-threatening illnesses and injuries,” said Next Level Chief Executive Officer, Dr. Juliet Breeze. “Additionally, by implementing an enterprise patient engagement solution such as FollowMyHealth, we’re helping promote healthy patient populations and manage care quality within our communities.”

“We’re proud to partner with Next Level Urgent Care in its efforts to provide excellent healthcare to the city of Houston, all while achieving its business and operational goals,” said Allscripts Chief Executive Officer, Paul Black. “We look forward to supporting Next level Urgent Care’s vision of harnessing integrated clinical and financial solutions that drive improved outcomes for the organization and its patient 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:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

Source: Allscripts

11/04/2021

Allscripts Announces Third Quarter 2021 Results
  • Third quarter GAAP diluted EPS of $0.12; non-GAAP diluted EPS of $0.27, up 145% year-over-year
  • Generated $57 million of cash flow from continuing operations and $35 million of free cash flow in the third quarter
  • Increasing 2021 outlook for Adjusted EBITDA and free cash flow

CHICAGO–(BUSINESS WIRE)–Nov. 4, 2021–
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three and nine months ended September 30, 2021.

Bookings(1) were $166 million in the third quarter of 2021. This result compares with $160 million in the third quarter of 2020. Contract revenue backlog totaled $3.9 billion as of September 30, 2021.

Third quarter 2021 revenue was $369 million compared with $366 million in the third quarter of 2020.

On a GAAP basis in the third quarter of 2021, income from operations was $12 million compared with a loss from operations in the third quarter of 2020 of $11 million. Non-GAAP income from operations in the third quarter of 2021 was $35 million compared with $27 million in the third quarter of 2020.

GAAP net income in the third quarter of 2021 totaled $16 million compared with net income of $1 million in the third quarter of 2020. Non-GAAP net income in the third quarter of 2021 was $35 million compared with $17 million in the third quarter of 2020.

GAAP diluted earnings per share in the third quarter of 2021 was $0.12 compared with earnings per share of $0.00 in the third quarter of 2020. Non-GAAP diluted earnings per share in the third quarter of 2021 was $0.27 compared with $0.11 in the third quarter of 2020.

Adjusted EBITDA totaled $71 million in the third quarter of 2021, compared with $58 million in the third quarter of 2020.

“Allscripts saw continued success in the third quarter, once again reporting significant year-over-year growth in net income, Adjusted EBITDA, EPS and free cash flow. Our solid execution delivered these results, which enable us to both reinvest in the business and return substantial amounts of capital to shareholders,” said Paul M. Black, Allscripts Chief Executive Officer. “I am thankful that, despite us entering the twentieth month of a worldwide pandemic, the entire company has remained focused on our clients’ success while driving shareholder value. Looking forward, I continue to be optimistic about our performance in 2021 and beyond.”

2021 Financial Outlook(2)

Allscripts is revising the following expectations:

  • Adjusted EBITDA between $275 million and $285 million, an increase from the prior outlook of between $265 million and $275 million
  • Free cash flow between $145 million and $155 million, an increase from the prior outlook of between $115 million and $125 million

Allscripts is affirming the following expectations:

  • Revenue of $1.5 billion

Conference Call

Allscripts will conduct a conference call today, Thursday, November 4th, 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 (888) 428-7458 or +1 (862) 298-0702 (international) and requesting Conference ID # 13724096.

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 # 13724096.

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

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

2021

2020

ASSETS
Current assets:
Cash and cash equivalents

$214.2

$531.1

Restricted cash

2.1

6.4

Accounts receivable, net

340.9

347.3

Contract assets

123.3

106.7

Income tax receivable

0.0

25.4

Prepaid expenses and other current assets

124.5

136.3

Total current assets

$805.0

$1,153.2

Fixed assets, net

53.7

72.2

Software development costs, net

176.7

193.2

Intangible assets, net

248.4

286.6

Goodwill

974.4

974.7

Deferred taxes, net

6.1

5.8

Contract assets – long-term

51.1

43.7

Right-of-use assets – operating leases

70.3

96.6

Other assets

98.6

91.6

Total assets

$2,484.3

$2,917.6

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$21.8

$35.9

Accrued expenses

93.5

100.2

Accrued compensation and benefits

92.7

118.8

Deferred revenue

337.9

334.8

Current operating lease liabilities

19.3

22.3

Current liabilities attributable to discontinued operations

1.7

322.8

Total current liabilities

566.9

934.8

Long-term debt

373.2

167.6

Deferred revenue

4.5

3.4

Deferred taxes, net

16.5

18.2

Long-term operating lease liabilities

67.1

93.5

Other liabilities

37.5

33.9

Total liabilities

$1,065.7

$1,251.4

Total stockholders’ equity

$1,418.6

$1,666.2

Total liabilities and stockholders’ equity

$2,484.3

$2,917.6

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

2021

2020

2021

2020

Revenue:
Software delivery, support and maintenance

$222.7

 

$219.9

 

$670.8

 

$680.1

 

Client services

146.5

 

145.7

 

440.5

 

436.2

 

Total revenue

369.2

 

365.6

 

1,111.3

 

1,116.3

 

Cost of revenue:
Software delivery, support and maintenance

68.4

 

72.5

 

208.5

 

216.7

 

Client services

122.1

 

127.3

 

362.8

 

406.7

 

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

29.9

 

30.7

 

89.4

 

88.2

 

Total cost of revenue

220.4

 

230.5

 

660.7

 

711.6

 

Gross profit

148.8

 

135.1

 

450.6

 

404.7

 

Selling, general and administrative expenses

78.8

 

93.3

 

239.6

 

296.0

 

Research and development

45.5

 

46.4

 

145.9

 

151.8

 

Asset impairment charges

6.6

 

0.2

 

11.8

 

0.2

 

Amortization of intangible and acquisition-related assets

5.9

 

6.3

 

17.5

 

19.3

 

Income (loss) from operations

12.0

 

(11.1

)

35.8

 

(62.6

)

Interest expense, net (b)

(3.4

)

(6.0

)

(8.9

)

(26.2

)

Other

12.6

 

(0.8

)

29.7

 

14.5

 

Income (loss) before income taxes

21.2

 

(17.9

)

56.6

 

(74.3

)

Income tax (provision) benefit

(5.1

)

4.0

 

(10.0

)

6.5

 

Income (loss) from continuing operations, net of tax

16.1

 

(13.9

)

46.6

 

(67.8

)

Income (loss) from discontinued operations

0.0

 

19.4

 

0.0

 

54.5

 

Gain (loss) on sale of discontinued operations

0.0

 

0.0

 

0.6

 

0.0

 

Income tax (provision) from discontinued operations

0.0

 

(5.0

)

(0.1

)

(14.1

)

Income (loss) from discontinued operations, net of tax

0.0

 

14.4

 

0.5

 

40.4

 

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

$16.1

 

$0.5

 

$47.1

 

($27.4

)

 
Income (loss) from continuing operations per share – basic

$0.13

 

($0.09

)

$0.35

 

($0.42

)

Income (loss) from discontinued operations per share – basic

$0.00

 

$0.09

 

$0.00

 

$0.25

 

Income (loss) per share – basic

$0.13

 

$0.00

 

$0.35

 

($0.17

)

 
Income (loss) from continuing operations per share – diluted

$0.12

 

($0.09

)

$0.33

 

($0.42

)

Income (loss) from discontinued operations per share – diluted

$0.00

 

$0.09

 

$0.00

 

$0.25

 

Income (loss) per share – diluted

$0.12

 

$0.00

 

$0.33

 

($0.17

)

 
Weighted average common shares outstanding:
Basic

123.9

 

161.1

 

133.5

 

162.1

 

Diluted

131.4

 

161.1

 

142.1

 

162.1

 

 
Three Months Ended September 30, Nine Months Ended September 30,

2021

 

2020

 

2021

 

2020

 

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

23.0

 

22.5

 

68.8

 

63.6

 

Amortization of acquisition-related intangible assets

6.9

 

8.2

 

20.6

 

24.6

 

Total amortization of software development and acquisition-related assets

$29.9

 

$30.7

 

$89.4

 

$88.2

 

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

(1.7

)

(4.7

)

(4.1

)

(14.2

)

Interest income

0.1

 

0.6

 

0.8

 

1.4

 

Non-cash charges to interest expense

(1.8

)

(1.9

)

(5.6

)

(13.4

)

Interest expense, net

($3.4

)

($6.0

)

($8.9

)

($26.2

)

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

2021

 

2020

 

2021

 

2020

Cash flows from operating activities:
Net income (loss)

$16.1

 

$0.5

 

$47.1

 

($27.4

)

Less: Income(loss) from discontinued operations

0.0

 

14.4

 

0.5

 

40.4

 

Income (loss) from continuing operations

$16.1

 

($13.9

)

$46.6

 

($67.8

)

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

44.3

 

46.7

 

133.0

 

146.0

 

Non-cash lease expense, net

(0.5

)

0.3

 

(3.0

)

0.5

 

Stock-based compensation expense

8.8

 

8.8

 

25.9

 

25.9

 

Deferred Taxes

(1.6

)

(0.2

)

(1.7

)

2.9

 

Impairment of assets and long-term investments

6.6

 

1.2

 

11.8

 

1.8

 

Gain on sale of businesses, net

(8.4

)

0.0

 

(8.4

)

0.0

 

Other (income) loss, net

(1.9

)

(2.2

)

(9.5

)

(21.9

)

Total non-cash adjustments to net income (loss)

47.3

 

54.6

 

148.1

 

155.2

 

Cash impact of changes in operating assets and liabilities:
Assets

(8.8

)

33.0

 

13.1

 

64.7

 

Liabilities

2.3

 

(27.0

)

(25.8

)

(52.1

)

Accrued DOJ settlement

0.0

 

(15.7

)

0.0

 

(88.7

)

Total cash impact of changes on operating assets and liabilities

(6.5

)

(9.7

)

(12.7

)

(76.1

)

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

56.9

 

31.0

 

182.0

 

11.3

 

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

(1.0

)

21.9

 

(322.5

)

60.6

 

Net cash provided by (used in) operating activities

55.9

 

52.9

 

(140.5

)

71.9

 

Cash flows from investing activities:
Capital expenditures

(1.5

)

(3.0

)

(4.6

)

(7.8

)

Capitalized software

(20.0

)

(20.4

)

(55.5

)

(71.3

)

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

3.3

 

1.7

 

7.6

 

24.9

 

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

(2.2

)

(0.1

)

(2.4

)

(3.9

)

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

(20.4

)

(21.8

)

(54.9

)

(58.1

)

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

0.0

 

(2.3

)

0.0

 

(6.8

)

Net cash provided by (used in) investing activities

(20.4

)

(24.1

)

(54.9

)

(64.9

)

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

0.0

 

0.0

 

(13.9

)

(5.5

)

Repayment of Convertible Senior Notes

0.0

 

(345.0

)

0.0

 

(352.3

)

Credit facility payments

(50.0

)

(7.5

)

(50.0

)

(175.0

)

Credit facility borrowings, net of issuance costs

0.0

 

388.6

 

250.0

 

673.6

 

Repurchase of common stock

0.0

 

(45.6

)

(309.0

)

(55.3

)

Payment of acquisition and other financing obligations

0.0

 

0.0

 

(2.4

)

(5.2

)

Net cash provided by (used in) financing activities

(50.0

)

(9.5

)

(125.3

)

80.3

 

Effect of exchange rate changes on cash and cash equivalents

(0.6

)

0.4

 

(0.5

)

0.1

 

Net increase (decrease) in cash and cash equivalents

(15.1

)

19.7

 

(321.2

)

87.4

 

Cash, cash equivalents and restricted cash, beginning of period

231.4

 

205.2

 

537.5

 

137.5

 

Cash, cash equivalents and restricted cash, end of period

$216.3

 

$224.9

 

$216.3

 

$224.9

 

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

2021

 

2020

 

2021

 

2020

Gross profit, as reported

$148.8

 

$135.1

 

$450.6

 

$404.7

 

Acquisition-related amortization

6.8

 

8.2

 

20.6

 

24.6

 

Stock-based compensation expense

1.1

 

1.8

 

4.2

 

4.5

 

Restructuring and other

0.0

 

(0.1

)

0.0

 

2.9

 

Total non-GAAP gross profit

$156.7

 

$145.0

 

$475.4

 

$436.7

 

 
Income (loss) from operations, as reported

$12.0

 

($11.1

)

$35.8

 

($62.6

)

Acquisition-related amortization

12.7

 

14.5

 

38.1

 

43.9

 

Stock-based compensation expense

10.4

 

10.5

 

32.5

 

28.9

 

Restructuring and other

0.0

 

13.4

 

(0.0

)

49.6

 

Total non-GAAP income from operations

$35.1

 

$27.3

 

$106.4

 

$59.8

 

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

$16.1

 

$0.5

 

$47.1

 

($27.4

)

Loss (income) from discontinued operations

0.0

 

(19.4

)

0.0

 

(54.5

)

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

0.0

 

0.0

 

(0.6

)

0.0

 

Income tax provision from discontinued operations

0.0

 

5.0

 

0.1

 

14.1

 

Income (loss) from continuing operations, net of tax

$16.1

 

($13.9

)

$46.6

 

($67.8

)

Acquisition-related amortization

12.7

 

14.5

 

38.1

 

43.9

 

Stock-based compensation expense

10.4

 

10.5

 

32.5

 

28.9

 

Restructuring and other

0.0

 

13.4

 

0.0

 

49.7

 

Non-cash charges to interest expense and other

1.2

 

2.5

 

(1.2

)

14.9

 

Tax rate alignment

(5.9

)

(9.6

)

(20.3

)

(21.9

)

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

$34.5

 

$17.4

 

$95.7

 

$47.7

 

 
Non-GAAP effective tax rate

24

%

24

%

24

%

24

%

 
Weighted shares outstanding – basic

123.9

 

161.1

 

133.5

 

162.1

 

Weighted shares outstanding – diluted

131.4

 

163.3

 

142.1

 

163.7

 

Less effect of convertible note hedges

(2.8

)

0.0

 

(2.9

)

0.0

 

Non-GAAP Weighted shares outstanding – diluted

128.6

 

163.3

 

139.2

 

163.7

 

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

$0.12

 

($0.09

)

$0.33

 

($0.42

)

Non-GAAP Income (loss) per share – diluted

$0.27

 

$0.11

 

$0.69

 

$0.29

 

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

2021

 

2020

 

2021

 

2020

Net income (loss) from continuing operations, as reported

$16.1

 

($13.9

)

$46.6

 

($67.8

)

Plus:
Interest expense and other, net (a)

(11.4

)

5.3

 

(26.8

)

15.5

 

Depreciation and amortization

44.3

 

46.7

 

133.0

 

146.0

 

Asset impairment charges

6.6

 

0.0

 

11.8

 

0.0

 

Equity in net (income) loss of unconsolidated investments

0.2

 

(0.4

)

0.3

 

(17.4

)

Tax provision/(benefit)

5.1

 

(4.0

)

10.0

 

(6.5

)

EBITDA

$60.9

 

$33.7

 

$174.9

 

$69.8

 

Plus:
Stock-based compensation expense

10.4

 

10.5

 

32.5

 

28.9

 

Restructuring and other

0.0

 

13.4

 

0.0

 

49.7

 

Adjusted EBITDA

$71.3

 

$57.6

 

$207.4

 

$148.4

 

 
Adjusted EBITDA margin (b)

19.3

%

15.8

%

18.7

%

13.3

%

 
(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 September 30, Nine Months Ended September 30,

2021

 

2020

 

2021

 

2020

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

$56.9

 

$31.0

 

$182.0

 

$11.3

 

Cash flows from investing activities:
Capital expenditures

(1.5

)

(3.0

)

(4.6

)

(7.8

)

Capitalized software

(20.0

)

(20.4

)

(55.5

)

(71.3

)

Free cash flow

$35.4

 

$7.6

 

$121.9

 

($67.8

)

 
 

Explanation of Non-GAAP Financial Measures

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

  • Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related amortization; 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; asset impairment charges; stock-based compensation expense; restructuring and other costs; interest expense and other, net; equity in net (income) loss 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; and non-cash charges to interest expense and other. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income/(loss) attributable to Allscripts Healthcare Solutions, Inc. are found in Table 4 within this press release.
  • Non-GAAP diluted weighted shares outstanding consists of diluted weighted shares outstanding, as reported, less the 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 diluted weighted shares outstanding, as defined above, during the applicable period.
  • Free cash flow consists of GAAP cash flows from continuing operations in the applicable period, net of capital expenditures and capitalized software costs. Reconciliations to GAAP cash flows from continuing operations are found in Table 6 within this press release.

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

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

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. Other costs also include non-cash impairment charges based on management’s assessment of the likelihood of near-term recovery of the investments’ value.

Allscripts excludes 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 0.875% Convertible Notes issued by Allscripts during the fourth quarter of 2019. Other includes certain other income and expense and impairments on long-term investments.

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

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

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

Investors:

Jenny Gelinas

312-506-1237

Jenny.Gelinas@allscripts.com

Media:

Tom Lynch

312-386-6765

tom.lynch@allscripts.com

Source: Allscripts Healthcare Solutions, Inc.

Scroll To Top