CHICAGO, May 02, 2006 (BUSINESS WIRE) — Allscripts (Nasdaq:MDRX), 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, 2006.
Total revenue for the three months ended March 31, 2006 was a
record $42.2 million, compared to $26.2 million for the same period
last year. Revenue from software and related services for the three
months ended March 31, 2006 was a record $28.3 million, compared to
$14.3 million for the same period last year, increasing by
approximately 98%.
Gross margin percentage was 47.7% for the first quarter of 2006,
compared to 46.4% during the first quarter of 2005.
On March 2, 2006, Allscripts finalized the acquisition of A4
Health Systems, Inc. The Company’s results for the three months ended
March 31, 2006 include A4’s results for March.
Cash earnings for the period ended March 31, 2006 was $6.4
million, or $0.13 per diluted share, compared to $2.9 million, or
$0.07 per diluted share, for the same period last year, an increase of
approximately 117%. Cash earnings are comprised of operating income
giving effect to the add-back of depreciation and amortization,
stock-based compensation, one-time A4 integration costs, and net
interest income or expense. A reconciliation of cash earnings and cash
earnings per diluted share to GAAP earnings and GAAP earnings per
diluted share is included as part of this press release.
Net income for the three-months ended March 31, 2006 was $1.3
million, or $0.03 per diluted share, compared to net income of $1.3
million, or $0.03 per diluted share, for the same period last year.
As of March 31, 2006, the Company had cash and marketable
securities of $66.8 million. This amount reflects $141 million of net
proceeds received in February 2006 related to the issuance of 8.4
million shares of Allscripts common stock, a total of approximately
$231 million paid in connection with the acquisition of A4, and $21.1
million paid to IDX Investment Corporation, a wholly owned subsidiary
of GE, to repurchase 1.25 million shares of Allscripts common stock.
“Our first quarter results confirm the continuing momentum for our
solutions in the market,” said Glen Tullman, Chief Executive Officer
of Allscripts. “In addition, our acquisition of A4 Health Systems,
which we announced and completed during the quarter, adds
substantially to our market position, supplements our sales,
accelerates earnings, and doubles the size of our sales force, while
broadening our product portfolio and opening up new markets for us.
The bottom line is that our leadership position in the market has
never been more solid and our ability to deliver has never been more
promising.”
Allscripts will conduct a conference call on Tuesday, May 2, 2006
at 4:30 PM eastern time. The conference call can be accessed by
dialing 1-888-644-5594, or via the Internet at www.allscripts.com. A
recording of the conference call will be available for review through
May 16, 2006, at www.allscripts.com or by calling 1-800-642-1687, ID #
8102313.
About Allscripts
Allscripts is the leading provider of clinical software,
connectivity and information solutions that physicians use to improve
healthcare. The Company’s business groups provide unique solutions
that inform, connect and transform healthcare. The Clinical Solutions
Group’s award-winning software applications include electronic health
record, practice management, e-prescribing, document imaging,
emergency department and care management solutions. Additionally,
Allscripts provides clinical product education and connectivity
solutions for physicians and patients through its Physicians
Interactive(TM) Group and medication fulfillment services through its
Medication Services Group. To learn more, visit Allscripts at
www.allscripts.com.
This announcement may contain forward-looking statements about
Allscripts Healthcare Solutions that involve risks and uncertainties.
These statements are developed by combining currently available
information with Allscripts beliefs and assumptions. Forward-looking
statements do not guarantee future performance. Because Allscripts
cannot predict all of the risks and uncertainties that may affect it,
or control the ones it does predict, Allscripts’ actual results may be
materially different from the results expressed in its forward-looking
statements. For a more complete discussion of the risks, uncertainties
and assumptions that may affect Allscripts, see the Company’s 2005
Annual Report on Form 10-K, available through the Web site maintained
by the Securities and Exchange Commission at www.sec.gov.
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(Unaudited)
March 31, December 31,
Assets 2006 2005
--------- ------------ ------------
Current assets:
Cash and cash equivalents $35,225 $60,905
Marketable securities 13,726 54,408
Accounts receivable, net 43,366 29,244
Other receivables 162 502
Deferred taxes, net 7,200 -
Inventories 4,063 2,174
Prepaid expenses and other current
assets 6,877 5,811
------------ ------------
Total current assets 110,619 153,044
Long-term marketable securities 17,812 30,750
Fixed assets, net 12,182 2,753
Software development costs, net 6,777 6,409
Deferred taxes, net 28,232 -
Intangible assets, net 86,907 9,151
Goodwill 181,104 13,760
Other assets 5,779 5,097
------------ ------------
Total assets $449,412 $220,964
============ ============
Liabilities and Stockholders' Equity
-----------------------------------------
Current liabilities:
Accounts payable $12,144 $8,630
Accrued liabilities 22,048 13,791
Deferred revenue 37,459 17,306
Current portion of long-term debt 243 -
------------ ------------
Total current liabilities 71,894 39,727
Long-term debt 85,637 82,500
Other liabilities 309 318
------------ ------------
Total liabilities 157,840 122,545
Stockholders' equity 291,572 98,419
------------ ------------
Total liabilities and
stockholders' equity $449,412 $220,964
============ ============
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
Three Months Ended
March 31,
2006 2005
----------- -----------
Revenue:
Software and related services $28,314 $14,310
Prepackaged medications 11,510 9,835
Information services 2,380 2,050
----------- -----------
Total revenue 42,204 26,195
Cost of revenue:
Software and related services 11,481 5,124
Prepackaged medications 9,326 7,723
Information services 1,272 1,181
----------- -----------
Total cost of revenue 22,079 14,028
----------- -----------
Gross profit 20,125 12,167
Operating expenses:
Selling, general and
administrative expenses 16,401 10,357
Stock-based compensation expense 407 -
Amortization of intangibles 1,370 436
----------- -----------
Income from operations 1,947 1,374
Interest expense (895) (907)
Interest income 1,199 877
Other expense, net (118) (10)
----------- -----------
Income before income taxes 2,133 1,334
Income taxes 810 -
----------- -----------
Net income $1,323 $1,334
=========== ===========
Net income per share - basic $0.03 $0.03
============ ===========
Net income per share - diluted $0.03 $0.03
============ ===========
Weighted average shares of common
stock outstanding used in computing
basic net income per share 44,903 39,073
============ ===========
Weighted average shares of common stock
outstanding used in computing
diluted net income per share 47,974 42,171
============ ===========
Allscripts Healthcare Solutions, Inc.
Reconciliation of Non-GAAP Measure of Cash Earnings
and Cash Earnings Per Share
(amounts in thousands, except per-share amounts)
(Unaudited)
Three Months Ended
March 31,
2006 2005
----------- -----------
Net income $1,323 $1,334
Add back:
Income taxes 810 -
Interest income (expense) and other, net (186) 40
----------- -----------
Operting income 1,947 1,374
Add back:
Depreciation and amortization 2,703 1,600
Stock-based compensation 407 -
A4 Health Systems integration costs 1,021 -
----------- -----------
Adjusted operating income $6,078 $2,974
=========== ===========
Interest income (expense), net 304 (30)
------------------------
Cash earnings $6,382 $2,944
=========== ===========
Cash earnings per share - basic $0.14 $0.08
=========== ===========
Cash earnings per share - diluted $0.13 $0.07
=========== ===========
Weighted average shares of common stock
outstanding used in computing basic
cash earnings per share 44,903 39,073
=========== ===========
Weighted average shares of common stock
outstanding used in computing diluted
cash earnings per share 47,974 42,171
=========== ===========
SOURCE: Allscripts
Allscripts Dan Michelson, 312-506-1217 dan.michelson@allscripts.com or Bill Davis, 312-506-1211 bill.davis@allscripts.com