CHICAGO, April 30 /PRNewswire-FirstCall/ — Allscripts, the leading
provider of clinical software, connectivity and information solutions that
physicians use to improve healthcare, today announced results for the three
months ended March 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061005/ALLSCRIPTSLOGO-b)
Total revenue for the three months ended March 31, 2008 was $72.1 million,
compared to $65.0 million for the same period last year, increasing by 11%.
Revenue from software and related services for the three months ended March
31, 2008 was $58.6 million, compared to $51.2 million for the same period last
year, increasing by approximately 14%.
Gross margin percentage was 50.0% for the first quarter of 2008, compared
to 49.6% during the first quarter of 2007.
Net income for the three months ended March 31, 2008 was $0.1 million, or
$0.00 per diluted share, compared to net income of $4.5 million, or $0.08 per
diluted share, for the same period last year. Non-GAAP adjusted earnings for
the three months ended March 31, 2008 were $5.0 million, or $0.09 per diluted
share, compared to non-GAAP adjusted earnings of $6.4 million, or $0.11 per
diluted share for the same period last year. Non-GAAP adjusted earnings for
the three months ended March 31, 2008 and 2007 are comprised of net income
giving effect to the add-back of acquisition-related amortization of
$2.1 million and $1.5 million, respectively, or $0.04 and $0.02 per diluted
share, respectively, net of tax, and total stock-based compensation expense of
$1.2 million and $0.4 million, respectively, or $0.02 and $0.01 per diluted
share, respectively, net of tax. Non-GAAP adjusted earnings for the three
months ended March 31, 2008 also give effect to the add-back of
transaction-related expenses of $1.6 million, or $0.03 per diluted share, net
of tax. Please see “Explanation of Non-GAAP Financial Measures” below for a
discussion of non-GAAP adjusted earnings and earnings per share.
As of March 31, 2008, the Company had cash and marketable securities of
$61.4 million.
“Allscripts delivered a solid sales performance during the first quarter
of 2008 and we continue to make progress in deploying our TouchWorks
electronic health record,” said Glen Tullman, Chief Executive Officer of
Allscripts. “When you consider that the first quarter is traditionally the
slowest of the year, our sales performance demonstrates the strength of the
market, the strength of the Allscripts brand, and the confidence our clients
and prospects have in our company and our commitment to improving healthcare.”
Explanation of Non-GAAP Financial Measures
Allscripts reports its financial results in accordance with generally
accepted accounting principles, or GAAP. To supplement this information,
Allscripts presents in this press release non-GAAP net income (and related per
share amounts), which is a non-GAAP financial measure under Section 101 of
Regulation G under the Securities Exchange Act of 1934, as amended. Non-GAAP
net income consists of GAAP net income, excluding acquisition-related
amortization, stock-based compensation expense under SFAS No. 123R, and
transaction-related expenses, in each case net of any related tax benefit.
-- Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising from the acquisition of intangible assets in connection with acquisitions or investments. Allscripts excludes acquisition-related amortization expense from 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 as a result 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 should also note that such 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 awards to employees. Allscripts excludes stock-based compensation expense from 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 as a result of the timing 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 should also note that such expense will recur in future periods. -- Transaction-Related Expenses. Transaction-related expenses are fees and expenses, including legal, investment banking and accounting fees, incurred in connection with announced transactions. Allscripts excludes transaction-related expenses from 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.
Management also believes that non-GAAP net income (and related per share
amounts) provides useful supplemental information to management and investors
regarding the underlying performance of the Company’s business operations and
facilitates comparisons to our historical operating results. Management also
uses this information internally for forecasting and budgeting as it believes
that the measure is indicative of the Company’s core operating results. Note
however, that non-GAAP net income is a performance measure only, and it does
not provide any measure of the Company’s cash flow or liquidity. 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 reconciliation
of non-GAAP financial measures with GAAP financial measures contained within
the attached condensed consolidated financial statements.
Allscripts will conduct a conference call on Wednesday, April 30, 2008 at
4:30 PM Eastern Time. The conference call can be accessed by dialing
(800) 374-1376 and requesting the Allscripts earnings call, or via the
Internet at https://www.allscripts.com. A recording of the conference call
will be available for two weeks following the call at
https://www.allscripts.com or by calling (800) 642-1687, ID # 44636385.
About Allscripts
Allscripts (Nasdaq: MDRX) is the leading provider of clinical software,
connectivity and information solutions that physicians use to improve
healthcare. The company’s unique solutions inform, connect and transform
healthcare, delivering improved care at lower cost. More than 40,000
physicians and thousands of other healthcare professionals in clinics,
hospitals and extended care facilities nationwide utilize Allscripts to
automate everyday tasks such as writing prescriptions, documenting patient
care, managing billing and scheduling, and safely discharging patients, as
well as to connect with key information and stakeholders in the healthcare
system. To learn more, visit Allscripts at https://www.allscripts.com.
This news release may contain forward-looking statements within the
meaning of the federal securities laws. Statements regarding future events,
developments, the Company’s future performance, as well as management’s
expectations, beliefs, intentions, plans, estimates or projections relating to
the future are forward-looking statements within the meaning of these laws.
These forward-looking statements are subject to a number of risks and
uncertainties, some of which are outlined below. As a result, actual results
may vary materially from those anticipated by the forward-looking statements.
Among the important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements are: the
volume and timing of systems sales and installations; length of sales cycles
and the installation process; the possibility that products will not achieve
or sustain market acceptance; the timing, cost and success or failure of new
product and service introductions, development and product upgrade releases;
competitive pressures including product offerings, pricing and promotional
activities; our ability to establish and maintain strategic relationships;
undetected errors or similar problems in our software products; compliance
with existing laws, regulations and industry initiatives and future changes in
laws or regulations in the healthcare industry; possible regulation of the
Company’s software by the U.S. Food and Drug Administration; the possibility
of product-related liabilities; our ability to attract and retain qualified
personnel; our ability to identify and complete acquisitions, manage our
growth and integrate acquisitions; maintaining our intellectual property
rights and litigation involving intellectual property rights; risks related to
third-party suppliers; our ability to obtain, use or successfully integrate
third-party licensed technology; breach of our security by third parties; and
the risk factors detailed from time to time in our reports filed with the
Securities and Exchange Commission, including our 2007 Annual Report on Form
10-K available through the Web site maintained by the Securities and Exchange
Commission at http://www.sec.gov. The Company undertakes no obligation to
update publicly any forward-looking statement, whether as a result of new
information, future events or otherwise.
Allscripts Healthcare Solutions, Inc. Condensed Consolidated Balance Sheets (amounts in thousands) (Unaudited) March 31, December 31, Assets 2008 2007 Current assets: Cash and cash equivalents $43,721 $43,785 Marketable securities 10,196 5,759 Accounts receivable, net 80,997 81,351 Deferred taxes, net 17,700 16,650 Inventories 6,300 4,178 Prepaid expenses and other current assets 19,534 17,401 Total current assets 178,448 169,124 Long-term marketable securities 7,464 13,459 Fixed assets, net 21,209 18,238 Software development costs, net 25,509 24,115 Intangible assets, net 104,070 107,503 Goodwill 240,545 240,452 Other assets 4,498 5,252 Total assets $581,743 $578,143 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $14,284 $15,911 Accrued liabilities 23,615 22,707 Accrued acquisition obligation - 8,946 Deferred revenue 55,589 45,940 Current portion of long-term debt 285 279 Other current liabilities - 274 Total current liabilities 93,773 94,057 Long-term debt 135,089 135,162 Deferred income taxes 8,236 6,179 Other liabilities 2,198 2,105 Total liabilities 239,296 237,503 Stockholders' equity 342,447 340,640 Total liabilities and stockholders' equity $581,743 $578,143 Allscripts Healthcare Solutions, Inc. Condensed Consolidated Statements of Operations (amounts in thousands, except per-share amounts) (Unaudited) Three Months Ended March 31, 2008 2007 Revenue: Software and related services $58,618 $51,240 Prepackaged medications 9,595 10,229 Information services 3,876 3,553 Total revenue 72,089 65,022 Cost of revenue: Software and related services 25,919 22,382 Prepackaged medications 7,613 8,308 Information services 2,516 2,059 Total cost of revenue (a) 36,048 32,749 Gross profit 36,041 32,273 Operating expenses: Selling, general and administrative expenses (b) 31,393 22,374 Amortization of intangibles 3,439 2,576 Income from operations 1,209 7,323 Interest expense (1,644) (933) Interest income 570 1,049 Other expense, net (5) (12) Income before income taxes 130 7,427 Income taxes (50) (2,960) Net income $80 $4,467 Net income per share - basic $0.00 $0.08 Net income per share - diluted $0.00 $0.08 Weighted average shares of common stock outstanding used in computing basic net income per share 56,503 54,639 Weighted average shares of common stock outstanding used in computing diluted net income per share (c) 57,503 64,462 (a) Includes stock-based compensation of $347 and $82 for the three months ended March 31, 2008 and 2007, respectively. (b) Includes stock-based compensation of $1,612 and $574 for the three months ended March 31, 2008 and 2007, respectively. (c) Weighted average diluted shares for the three months ended March 31, 2007 include 7,329 common shares related to the Company's 3.5% Senior Convertible Notes. Such shares were antidilutive for the three months ended March 31, 2008. Interest expense, net of tax, totaling $522 has been added back to net income for the net income per diluted share calculation for the three months ended March 31, 2007. Allscripts Healthcare Solutions, Inc. Reconciliation of Non-GAAP Adjusted Earnings and Non-GAAP Adjusted Earnings Per Share (amounts in thousands, except per-share amounts) (Unaudited) Three Months Ended March 31, 2008 2007 Net Income $80 $4,467 Stock compensation expense (tax effected at 39% for 2008 and 40% for 2007) 1,195 393 Deal-related amortization (tax effected at 39% for 2008 and 40% for 2007) 2,098 1,545 Transaction-related expenses (tax effected at 39% for 2008) 1,621 - Non-GAAP Adjusted Earnings $4,994 $6,405 Weighted average shares of common stock outstanding used in computing diluted non-GAAP adjusted earnings per share (a) 57,503 64,462 Non-GAAP Adjusted Earnings Per Share - diluted $0.09 $0.11 (a) Weighted average diluted shares for the three months ended March 31, 2007 include 7,329 common shares related to the Company's 3.5% Senior Convertible Notes. Such shares were antidilutive for the three months ended March 31, 2008. Interest expense, net of tax, totaling $522 has been added back to net income for the net income per diluted share calculation for the three months ended March 31, 2007.
SOURCE Allscripts Healthcare Solutions, Inc. -0- 04/30/2008 /CONTACT: Dan Michelson, Chief Marketing Officer, +1-312-506-1217, dan.michelson@allscripts.com, or Bill Davis, Chief Financial Officer, +1-312-506-1211, bill.davis@allscripts.com, or Todd Stein, Senior Manager-Public Relations, +1-312-506-1216, todd.stein@allscripts.com, all of Allscripts/ /Photo: http://www.newscom.com/cgi-bin/prnh/20061005/ALLSCRIPTSLOGO-b AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com/ /Web site: https://www.allscripts.com / (MDRX) CO: Allscripts Healthcare Solutions, Inc. ST: Illinois IN: HEA MTC STW NET ITE MLM SU: ERN CCA GB-AE -- AQW529 -- 5043 04/30/2008 16:03 EDT http://www.prnewswire.com