Company Posts Record Revenue and Earnings per Share for the Year
CHICAGO, Feb. 13 /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 and year ended December 31, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061005/ALLSCRIPTSLOGO-b)
Total revenue for the three months ended December 31, 2007 was $73.4
million, compared to $63.6 million for the same period last year. Revenue
from software and related services for the three months ended December 31,
2007 was $57.8 million, compared to $48.9 million for the same period last
year, increasing by 18.1%. Gross margin percentage was 48.9% for the fourth
quarter of 2007, compared to 53.5% during the fourth quarter of 2006.
Net income for the three months ended December 31, 2007 was $5.9 million,
or $0.10 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 December 31, 2007 were $8.5 million, or $0.14 per
diluted share, compared to non-GAAP adjusted earnings of $6.6 million, or
$0.11 per diluted share for the same period last year. Non-GAAP adjusted
earnings for the three months ended December 31, 2007 and 2006 are comprised
of net income giving effect to the add-back of acquisition-related
amortization of $1.6 million or $0.03 per diluted share for both reported
periods, net of tax, and total stock-based compensation expense of $0.9
million and $0.6 million, respectively, or $0.01 per diluted share for both
reported periods, 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 December 31, 2007 the Company had cash and marketable securities of
$63.0 million.
“2007 was a record year for Allscripts in earnings and revenue,
demonstrating the interest in and importance of automating our healthcare
system,” said Glen Tullman, Chief Executive Officer of Allscripts. “In 2008,
we will focus on taking advantage of our market-leading position across all
segments in which we compete, including leveraging our ECIN acquisition. Our
objective is to connect healthcare while continuing to help our clients
effectively implement and use all of our solutions to make a difference in the
lives of physicians and patients.”
Total revenue for the year ended December 31, 2007 was a record $281.9
million, compared to $228.0 million for 2006, an increase of 23.7%. Revenue
from software and related services for the year ended December 31, 2007 was
$222.7 million, compared to $173.5 million for 2006, increasing by 28.3%.
Total gross margin percentage was 49.8% for the year ended December 31,
2007, compared to 50.9% for the year ended December 31, 2006.
Net income for the year ended December 31, 2007 was $20.6 million, or
$0.35 per diluted share, compared to net income of $11.9 million, or $0.22 per
diluted share, for 2006. Non-GAAP adjusted earnings for the year ended
December 31, 2007 was $29.5 million, or $0.49 per diluted share, compared to
adjusted earnings of $19.7 million, or $0.37 per diluted share, for the same
period last year. Non-GAAP adjusted earnings for the year ended December 31,
2007 and 2006 are comprised of net income giving effect to the add-back of
acquisition-related amortization of $6.4 million for both reported periods, or
$0.10 and $0.12 per diluted share, respectively, net of tax, and total
stock-based compensation of $2.6 million and $1.4 million, respectively, or
$0.04 and $0.03 per diluted share, respectively, net of tax.
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 and stock-based compensation expense under SFAS No. 123R, 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.
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, February 13, 2008
at 4:30 PM Eastern Time. The conference call can be accessed by dialing
1-800-374-1376 and requesting the Allscripts earnings call, or at
https://www.allscripts.com. A recording of the conference call will be
available three hours after the conclusion of the call for a period of two
weeks at https://www.allscripts.com or by calling 1-800-642-1687, ID #30156822.
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 and
hospitals nationwide utilize Allscripts to automate and connect everyday tasks
such as writing prescriptions, documenting patient care, managing billing and
scheduling, and safely discharging patients. 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 2006 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)
December 31, December 31,
Assets 2007 2006
Current assets:
Cash and cash equivalents $43,785 $42,461
Marketable securities 5,759 14,553
Accounts receivable, net 81,351 55,579
Deferred taxes, net 16,658 27,437
Inventories 4,178 3,247
Prepaid expenses and other current assets 17,401 10,620
Total current assets 169,132 153,897
Long-term marketable securities 13,459 26,024
Fixed assets, net 19,384 14,094
Software development costs, net 22,969 12,285
Deferred taxes, net 7,850 -
Intangible assets, net 76,333 78,050
Goodwill 257,585 188,261
Other assets 5,252 4,999
Total assets $571,964 $477,610
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $15,911 $9,294
Accrued liabilities 22,707 26,546
Accrued acquisition obligation 8,946 -
Deferred revenue 45,940 35,549
Current portion of long-term debt 279 258
Other current liabilities 274 -
Total current liabilities 94,057 71,647
Long-term debt 135,162 85,441
Deferred taxes, net - 3,915
Other liabilities 2,105 357
Total liabilities 231,324 161,360
Stockholders' equity 340,640 316,250
Total liabilities and stockholders'
equity $571,964 $477,610
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
Revenue:
Software and related services $57,767 $48,910 $222,673 $173,503
Prepackaged medications 11,887 11,232 43,959 43,688
Information services 3,747 3,418 15,276 10,778
Total revenue 73,401 63,560 281,908 227,969
Cost of revenue:
Software and related services 24,670 18,704 94,866 70,351
Prepackaged medications 10,302 9,419 36,974 36,263
Information services 2,556 1,421 9,655 5,417
Total cost of revenue (a) 37,528 29,544 141,495 112,031
Gross profit 35,873 34,016 140,413 115,938
Operating expenses:
Selling, general and
administrative expenses (b) 26,694 23,952 101,666 85,798
Amortization of intangibles 2,727 2,576 10,636 10,272
Income from operations 6,452 7,488 28,111 19,868
Interest expense (925) (937) (3,715) (3,712)
Interest income and other, net 884 802 3,961 3,163
Gain on sale of equity investment - - 2,392 -
Income before income taxes 6,411 7,353 30,749 19,319
Income taxes (467) (2,870) (10,186) (7,424)
Net income $5,944 $4,483 $20,563 $11,895
Net income per share - basic $0.11 $0.08 $0.37 $0.23
Net income per share - diluted $0.10 $0.08 $0.35 $0.22
Weighted average shares of common
stock outstanding
used in computing basic net
income per share 56,339 53,958 55,712 51,058
Weighted average shares of common
stock outstanding used in
computing diluted net income
per share (c) 65,299 63,954 64,671 53,367
(a) Includes stock-based compensation of $329 and $0 for the three
months ended December 31, 2007 and 2006, respectively, and $761 and
$0 for the years ended December 31, 2007 and 2006, respectively.
(b) Includes stock-based compensation of $1,216 and $888 for the three
months ended December 31, 2007 and 2006, respectively, and $3,575
and $2,328 for the years ended December 31, 2007 and 2006,
respectively.
(c) Weighted average diluted shares for the three months ended December
31, 2007 and 2006 and for the year ended December 31, 2007 include
7,329 common shares related to the Company's 3.5% Senior Convertible
Notes. Such shares were antidilutive for the year ended December 31,
2006. Interest expense, net of tax, has been added back to net
income for the net income per diluted share calculation for the
three months ended December 31, 2006 and 2007 and the year ended
December 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 Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Net Income $5,944 $4,483 $20,563 $11,895
Stock compensation expense (tax
effected at 40% for 2007 and
38% for 2006) 928 551 2,602 1,443
Deal-related amortization (tax
effected at 40% for 2007 and
38% for 2006) 1,636 1,597 6,382 6,369
Non-GAAP Adjusted Earnings $8,508 $6,631 $29,547 $19,707
Weighted average shares of
common stock outstanding used
in computing diluted non-GAAP
adjusted earnings per share 65,299 63,954 64,671 53,367
Non-GAAP Adjusted Earnings Per
Share - diluted $0.14 $0.11 $0.49 $0.37
SOURCE Allscripts
-0- 02/13/2008
/CONTACT: Dan Michelson, Chief Marketing Officer, +1-312-506-1217,
dan.michelson@allscripts.com, or Todd Stein, Senior ManagerPublic Relations,
+1-312-506-1216, todd.stein@allscripts.com, or Bill Davis, Chief Financial
Officer, +1-312-506-1211, bill.davis@allscripts.com, all of Allscripts/
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/Web site: https://www.allscripts.com /
(MDRX)
CO: Allscripts
ST: Illinois
IN: HEA CPR STW
SU: ERN CCA
PD-AE
-- AQW140 --
4814 02/13/2008 16:00 EST http://www.prnewswire.com