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