CHICAGO–(BUSINESS WIRE)–Aug. 1, 2006–Allscripts (Nasdaq:MDRX),
the leading provider of clinical software, connectivity and
information solutions that physicians use to improve healthcare, today
announced its results for the three and six months ended June 30,
2006.
Total revenue for the three months ended June 30, 2006 was $60.0
million, compared to $29.5 million for the same period last year.
Revenue from software and related services for the three months ended
June 30, 2006 was a record $46.7 million, compared to $16.1 million
for the same period last year, increasing by approximately 190%.
Revenue from software and related services reflects the first full
quarter of integration with A4 Health Systems.
Gross margin percentage was approximately 52% for the second
quarter of 2006, compared to 47% during the second quarter of 2005.
Net income for the three months ended June 30, 2006 was $2.8
million, or $0.05 per diluted share, compared to net income of $2.0
million, or $0.05 per diluted share, for the same period last year.
Cash earnings for the three months ended June 30, 2006 was $9.8
million, or $0.18 per diluted share, compared to cash earnings of $3.6
million, or $0.08 per diluted share, for the same period last year.
Cash earnings are comprised of net income giving effect to the
add-back of income taxes, depreciation and amortization, stock-based
compensation and one-time A4 integration costs. Please see “Financial
Measures” below for a discussion of cash earnings and cash earnings
per share.
As of June 30, 2006 the Company had cash and marketable securities
of $65.8 million.
“The second quarter was the strongest in Allscripts history, with
record earnings and strong sales growth, confirming that we continue
to gain traction in the market by offering the right solutions at the
right time,” commented Glen Tullman, Chief Executive Officer of
Allscripts. “A4 contributed solid results in the first full quarter
since the acquisition, confirming Allscripts as the clear leader
across all segments of the ambulatory market, and demonstrating our
ability to grow quickly while also investing in the future.”
Total revenue for the six months ended June 30, 2006 was $102.2
million, compared to $55.7 million for the six months ended June 30,
2005. Revenue from software and related services for the six months
ended June 30, 2006 was $75.1 million, compared to $30.5 million for
the same period last year, increasing by approximately 146%. Total
revenue for the six months ended June 30, 2006 includes the results of
A4 Health Systems, Inc. from the acquisition date of March 2, 2006
through the end of the second quarter of 2006.
Gross margin percentage was approximately 50% for the six months
ended June 30, 2006 compared to 47% for the six months ended June 30,
2005.
Net income for the six months ended June 30, 2006 was $4.2
million, or $0.08 per diluted share, compared to net income of $3.4
million, or $0.08 per diluted share, for the same period last year.
Cash earnings for the six months ended June 30, 2006 was $16.2
million, or $0.31 per diluted share, compared to cash earnings of $6.5
million, or $0.15 per diluted share, for the same period last year.
Financial Measures
Allscripts reports its financial results in accordance with
generally accepted accounting principles (“GAAP”). In addition, the
Company reports on non-GAAP financial measures, such as cash earnings
and cash earnings per share. Management believes that these non-GAAP
measures, when viewed in addition to the Company’s reported GAAP
results, provide useful information to investors regarding its
performance and overall results of operations. Reconciliations to
comparable GAAP measures are included as part of this release.
Conference Call
Allscripts will conduct a conference call on Tuesday, August 1,
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 for a
period of two weeks at www.allscripts.com or by calling
1-800-642-1687, ID # 3303435.
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, electronic 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)
June 30, December 31,
Assets 2006 2005
------ ------------ ------------
Current assets:
Cash and cash equivalents $32,978 $60,905
Marketable securities 14,212 54,408
Accounts receivable, net 44,610 29,244
Other receivables 150 502
Deferred taxes, net 5,467 -
Inventories 5,124 2,174
Prepaid expenses and other current
assets 6,800 5,811
------------ ------------
Total current assets 109,341 153,044
Long-term marketable securities 18,626 30,750
Fixed assets, net 12,821 2,753
Software development costs, net 8,176 6,409
Deferred taxes, net 28,305 -
Intangible assets, net 83,641 9,151
Goodwill 182,801 13,760
Other assets 5,356 5,097
------------ ------------
Total assets $449,067 $220,964
============ ============
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Accounts payable $10,434 $8,630
Accrued liabilities 22,834 13,791
Deferred revenue 32,967 17,306
Current portion of long-term debt 248 0
------------ ------------
Total current liabilities 66,483 39,727
Long-term debt 85,573 82,500
Other liabilities 313 318
------------ ------------
Total liabilities 152,369 122,545
Stockholders' equity 296,698 98,419
------------ ------------
Total liabilities and
stockholders' equity $449,067 $220,964
============ ============
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2006 2005 2006 2005
--------- -------- -------- --------
Revenue:
Software and related
services $46,745 $16,145 $75,059 $30,455
Prepackaged medications 10,508 11,489 22,018 21,324
Information services 2,761 1,900 5,141 3,950
--------- -------- -------- --------
Total revenue 60,014 29,534 102,218 55,729
Cost of revenue:
Software and related
services 18,504 5,231 29,985 10,485
Prepackaged medications 8,716 9,697 18,042 17,420
Information services 1,522 725 2,794 1,776
--------- -------- -------- --------
Total cost of revenue 28,742 15,653 50,821 29,681
--------- -------- -------- --------
Gross profit 31,272 13,881 51,397 26,048
Operating expenses:
Selling, general and
administrative expenses 22,706 11,458 39,107 21,815
Stock-based compensation
expense 416 - 823 -
Amortization of intangibles 3,281 436 4,651 872
--------- -------- -------- --------
Income from operations 4,869 1,987 6,816 3,361
Interest expense (940) (881) (1,835) (1,758)
Interest income 639 957 1,838 1,834
Other expense, net (8) (30) (126) (70)
--------- -------- -------- --------
Income before income taxes 4,560 2,033 6,693 3,367
Income taxes 1,733 - 2,543 -
--------- -------- -------- --------
Net income $2,827 $2,033 $4,150 $3,367
========= ======== ======== ========
Net income per share - basic $0.05 $0.05 $0.09 $0.09
========= ======== ======== ========
Net income per share - diluted $0.05 $0.05 $0.08 $0.08
========= ======== ======== ========
Weighted average shares of common
stock outstanding used in
computing basic net income per
share 52,202 39,824 48,573 39,451
========= ======== ======== ========
Weighted average shares of common
stock outstanding used in
computing diluted net income
per share 55,282 43,144 51,665 42,585
========= ======== ======== ========
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 Six Months Ended
June 30, June 30,
------------------ -----------------
2006 2005 2006 2005
--------- -------- -------- --------
Net income, as reported $2,827 $2,033 $4,150 $3,367
Add back:
Income taxes 1,733 - 2,543 -
Depreciation and amortization 4,803 1,556 7,537 3,125
Stock-based compensation 416 - 823 -
Realized losses on marketable
securities (Note 1) - - 118 -
A4 Health Systems integration
costs - - 1,021 -
--------- -------- -------- --------
Cash earnings $9,779 $3,589 $16,192 $6,492
========= ======== ======== ========
Cash earnings per share - basic $0.19 $0.09 $0.33 $0.16
========= ======== ======== ========
Cash earnings per share - diluted $0.18 $0.08 $0.31 $0.15
========= ======== ======== ========
Weighted average shares of
common stock outstanding
used in computing basic cash
earnings per share 52,202 39,824 48,573 39,451
========= ======== ======== ========
Weighted average shares of
common stock outstanding
used in computing diluted cash
earnings per share 55,282 43,144 51,665 42,585
========= ======== ======== ========
Note 1 -- Realized losses incurred as a result of the early maturity
of marketable securites due to cash requirements related to the
acquisition of A4 Health Systems, Inc.
CONTACT: Allscripts
Dan Michelson, 312-506-1217
dan.michelson@allscripts.com
or
Bill Davis, 312-506-1211
bill.davis@allscripts.com
SOURCE: Allscripts