Company Posts Record Revenue and Earnings Per Share
CHICAGO, Aug. 7 /PRNewswire-FirstCall/ — 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 and six months ended June 30, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061005/ALLSCRIPTSLOGO-b)
Total revenue for the three months ended June 30, 2007 was a record
$70.0 million, compared to $60.0 million for the same period last year.
Revenue from software and related services for the three months ended June 30,
2007 was $54.7 million, compared to $46.7 million for the same period last
year, increasing by 17%. Gross margin percentage was 51% for the second
quarter of 2007, compared to 52% during the second quarter of 2006.
Net income for the three months ended June 30, 2007 was $6.0 million, or
$0.10 per diluted share, compared to net income of $2.8 million, or $0.05 per
diluted share, for the same period last year. Non-GAAP adjusted earnings for
the three months ended June 30, 2007 were $7.9 million, or $0.13 per diluted
share — a new record for the Company — compared to non-GAAP adjusted
earnings of $5.1 million, or $0.09 per diluted share for the same period last
year. Non-GAAP adjusted earnings for the three months ended June 30, 2007 and
2006 are comprised of net income giving effect to the add-back of acquisition-
related amortization of $1.5 million and $2.0 million, respectively, or
$0.02 and $0.04 per diluted share, respectively, net of tax, and total
stock-based compensation expense of $0.4 million and $0.3 million,
respectively, or $0.01 and $0.00 per diluted share, respectively, 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 June 30, 2007, the Company had cash and marketable securities of
$87.1 million.
“Allscripts delivered record results in the second quarter and substantial
progress towards our goal of making 2007 our strongest year ever,” said Glen
Tullman, Chief Executive Officer of Allscripts. “Having invested in new
technology and hired aggressively for future growth, we are in position to
capitalize on the significant market opportunity during the second half of the
year, which is traditionally the industry’s strongest sales period. We have a
clear vision for integrating software, connectivity and information to
transform healthcare, and we continue to demonstrate our ability to deliver on
that vision.”
Total revenue for the six months ended June 30, 2007 was $135.1 million,
compared to $102.2 million for the six months ended June 30, 2006. Revenue
from software and related services for the six months ended June 30, 2007 was
$105.9 million, compared to $75.1 million for the same period last year,
increasing by 41%. Gross margin percentage was consistent at 50% for the six
months ended June 30, 2007 and 2006.
Net income for the six months ended June 30, 2007 was $10.5 million, or
$0.18 per diluted share, compared to net income of $4.2 million, or $0.08 per
diluted share, for the same period last year. Non-GAAP adjusted earnings for
the six months ended June 30, 2007 were $14.4 million, or $0.24 per diluted
share, compared to non-GAAP adjusted earnings of $7.5 million, or $0.15 per
diluted share for the same period last year. Non-GAAP adjusted earnings for
the six months ended June 30, 2007 and 2006 are comprised of net income giving
effect to the add-back of acquisition-related amortization of $3.1 million and
$2.9 million, respectively, or $0.05 and $0.06 per diluted share,
respectively, net of tax, and total stock-based compensation expense of
$0.8 million and $0.5 million, respectively, or $0.01 per diluted share for
both reported periods, net of tax.
Allscripts will conduct a conference call on Tuesday, August 7, 2007 at
4:30 PM Eastern Time. The conference call can be accessed by dialing
1-888-644-5594 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 a period of two weeks following the call at
https://www.allscripts.com or by calling 1-800-642-1687, ID # 7223232.
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 adjusted earnings (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 adjusted earnings 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 adjusted earnings 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
adjusted earnings 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 adjusted earnings (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 adjusted earnings 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.
About Allscripts
Allscripts is the leading provider of clinical software, connectivity and
information solutions that physicians use to improve healthcare. The Company’s
business units provide unique solutions that inform, connect and transform
healthcare. Allscripts award-winning software applications include Electronic
Health Records, practice management, e-prescribing, document imaging,
emergency department, and care management solutions, all offered through the
Company’s Clinical Solutions units. Additionally, Allscripts provides clinical
product education and connectivity solutions for physicians and patients
through its Physicians Interactive(TM) unit, and medication fulfillment
services through its Medication Services unit. To learn more, visit Allscripts
on the Web at https://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 2006 Annual Report on Form 10-K, available through the Web site
maintained by the Securities and Exchange Commission at http://www.sec.gov.
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(Unaudited)
June 30, December 31
Assets 2007 2006
Current assets:
Cash and cash equivalents $40,376 $42,461
Marketable securities 26,992 14,553
Accounts receivable, net 69,610 55,579
Deferred taxes, net 26,716 27,437
Inventories 4,012 3,247
Prepaid expenses and other
current assets 15,021 10,620
Total current assets 182,727 153,897
Long-term marketable securities 19,734 26,024
Fixed assets, net 17,111 14,094
Software development costs, net 18,540 12,285
Intangible assets, net 72,927 78,050
Goodwill 184,124 188,261
Other assets 4,308 4,999
Total assets $499,471 $477,610
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $12,267 $9,294
Accrued liabilities 21,701 26,546
Deferred revenue 38,613 35,549
Current portion of long-term debt 268 258
Total current liabilities 72,849 71,647
Long-term debt 85,304 85,441
Deferred income taxes 3,294 3,915
Other liabilities 2,022 357
Total liabilities 163,469 161,360
Stockholders' equity 336,002 316,250
Total liabilities and
stockholders' equity $499,471 $477,610
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,
2007 2006 2007 2006
Revenue:
Software and related services $54,681 $46,745 $105,921 $75,059
Prepackaged medications 10,939 10,508 21,168 22,018
Information services 4,421 2,761 7,974 5,141
Total revenue 70,041 60,014 135,063 102,218
Cost of revenue:
Software and related services 22,797 18,504 45,179 29,985
Prepackaged medications 9,141 8,716 17,449 18,042
Information services 2,632 1,522 4,691 2,794
Total cost of revenue 34,570 28,742 67,319 50,821
Gross profit 35,471 31,272 67,744 51,397
Operating expenses:
Selling, general and
administrative expenses 25,425 23,122 47,799 39,930
Amortization of intangibles 2,576 3,281 5,152 4,651
Income from operations 7,470 4,869 14,793 6,816
Interest expense (930) (940) (1,863) (1,835)
Interest income and other, net 1,106 631 2,143 1,712
Gain on sale of equity investment 2,392 -- 2,392 --
Income before income taxes 10,038 4,560 17,465 6,693
Income taxes (4,010) (1,733) (6,970) (2,543)
Net income $6,028 $2,827 $10,495 $4,150
Net income per share - basic $0.11 $0.05 $0.19 $0.09
Net income per share - diluted $0.10 $0.05 $0.18 $0.08
Weighted average shares of common
stock outstanding used in computing
basic net income per share 55,648 52,202 55,146 48,573
Weighted average shares of common
stock outstanding used in computing
diluted net income per share 64,802 55,282 64,327 51,665
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 Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Net Income $6,028 $2,827 $10,495 $4,150
Acquisition-Related Amortization
(tax effected at 38% for 2006
and 40% for 2007) 1,546 2,034 3,091 2,884
Stock-Based Compensation Expense
(tax effected at 38% for 2006
and 40% for 2007) 374 258 767 510
Non-GAAP Adjusted Earnings $7,948 $5,119 $14,353 $7,544
Weighted average shares of
common stock outstanding used
in computing diluted non-GAAP
adjusted earnings per share 64,802 55,282 64,327 51,665
Non-GAAP Adjusted Earnings per
share - diluted $0.13 $0.09 $0.24 $0.15
SOURCE Allscripts Healthcare Solutions, Inc.
-0- 08/07/2007
/CONTACT: Dan Michelson, Chief Marketing Officer, +1-312-506-1217,
dan.michelson@allscripts.com, or Todd Stein, Senior Manager-Public 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
Healthcare Solutions, Inc./
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/Web site: https://www.allscripts.com /
(MDRX)
CO: Allscripts Healthcare Solutions, Inc.
ST: Illinois
IN: CPR HEA STW
SU: ERN CCA
RM-AE
-- AQTU208 --
2619 08/07/2007 16:00 EDT http://www.prnewswire.com