CHICAGO, Nov. 7, 2013 /PRNewswire/ — Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) (“Allscripts” or the “Company”) today announced financial results for the three and nine months ended September 30, 2013.
Third Quarter Highlights:
- Bookings(1) grew 10 percent over the second quarter of 2013. Year-to-date, Allscripts bookings grew 14 percent over the first nine months of 2012.
- Contract backlog continues to grow and totaled a record $3.3 billion as of September 30, 2013.
- Approximately 40 percent of third quarter bookings were derived from Allscripts industry-leading Population Health Management solutions(2). These offerings are sold within as well as outside the Allscripts core Electronic Health Record (EHR) client base.
- Allscripts cloud-based, EHR-agnostic solutions represented more than 25 percent of bookings and approximately 15 percent of revenue in the quarter.
- Renewed and expanded a number of partnerships with clients including PIH Health and HealthCare Partners. These agreements expanded the use of Allscripts core EHR solutions across both acute and ambulatory care settings. In addition several clients, including PIH and HealthCare Partners, chose Allscripts Population Health Management solutions, to enable accountable care initiatives.
- Successfully delivered on key client commitments, including ICD-10 readiness and complete EHR certification for every application required to attest for Meaningful Use 2, along with modular certifications for client flexibility.
“We accomplished several important objectives during the third quarter, including quarterly bookings growth of 46 percent over Q3 2012, as well as drove significant client renewals and agreement expansions,” said Paul M. Black, President and Chief Executive Officer of Allscripts. “We are delivering on client commitments and have substantial work underway for MU2 and ICD-10 upgrades.”
Mr. Black continued, “The Allscripts OPEN Connected Community platform provides us with competitive differentiation and has enabled us to take a leadership position within accountable care and population health management. Approximately 40 percent of third quarter bookings came from Population Health Management solutions demonstrating our clear industry leadership in this important, growing segment. Although our income statement continues to be negatively impacted by our shifting revenue model and significant investments, we remain focused on fundamental execution to ensure Allscripts success for the long term.”
Third Quarter Details:
- Bookings of $236 million. This compares with bookings of $162 million in the third quarter of 2012, and $214 million in the second quarter of 2013, or growth of 46 and 10 percent, respectively.
- GAAP revenue of $330 million and non-GAAP revenue of $334 million. This compares with GAAP and non-GAAP revenue of $361 million in the third quarter of 2012.
- GAAP gross profit for the three months ended September 30, 2013 was $126 million. This compares with GAAP gross profit of $157 million in the third quarter of 2012.
- Non-GAAP gross profit was $146 million for the three months ended September 30, 2013, or 44 percent of total non-GAAP revenue. This compares with $166 million or 46 percent of non-GAAP revenue for the prior year period.
- GAAP operating loss for the three months ended September 30, 2013, including certain non-recurring expenses and transaction-related costs, was $43 million. This compares with GAAP operating income of $9 million in the third quarter of 2012.
- Non-GAAP operating income, excluding certain non-recurring expenses and transaction-related costs, was $16 million for the three months ended September 30, 2013, or 5 percent of total non-GAAP revenue. This compares with $50 million or 14 percent of non-GAAP revenue for the prior year period.
- GAAP net loss for the three months ended September 30, 2013, including certain non-recurring expenses and transaction-related costs, was $49 million and GAAP loss per share was $0.27. This compares with net income of $9 million and diluted earnings per share of $0.05 in the third quarter of 2012.
- Non-GAAP net income, after adjustments for certain non-recurring expenses and transaction-related costs, for the three months ended September 30, 2013, was $9 million resulting in non-GAAP diluted earnings per share of $0.05. This compares with $39 million and $0.23, respectively, in the third quarter of 2012.
- Adjusted EBITDA was $39 million for the three months ended September 30, 2013. This compares with $71 million of Adjusted EBITDA in the third quarter of 2012.
- Third quarter 2013 GAAP results include the following items, all on a pre-tax basis:
- Deferred revenue and other adjustments of $4.0 million.
- Acquisition-related amortization of $19.4 million.
- Stock-based compensation expense of $9.7 million.
- Non-recurring expenses and transaction-related costs totaling $18.7 million.
- Non-cash asset impairment charges totaling $7.4 million.
- Non-cash charges to interest expense and other totaling $3.4 million ($2.7 million, net of tax).
Please refer to Table 4 “Condensed Non-GAAP Financial Information” for a complete reconciliation of the GAAP and non-GAAP financial measures discussed in this news release. In addition, see the “Explanation of Non-GAAP Financial Measures” section in this news release for further discussion of these items.
Liquidity and Debt
As of September 30, 2013, Allscripts had total liquidity of approximately $426 million comprised of cash, marketable securities and undrawn amounts under its revolving credit facility.
In addition, on September 30, 2013, Allscripts had approximately $627 million of principal debt obligations, consisting of $345 million of its 1.25% Cash Convertible Notes and $282 million outstanding under its Senior Secured Credit Facilities.
Allscripts will conduct a conference call today, Thursday, November 7, 2013, at 4:30 PM Eastern Standard Time to discuss its earnings and other information. Participants may access the conference call via the Internet at http://investor.allscripts.com. Participants also may access the conference call by dialing (877) 303-0543 (toll free in the US) or +1 (973) 935-8787 (international) and requesting Conference ID #75102043.
A replay of the call will be available approximately two hours after the conclusion of the call, for a period of two weeks, at http://www.allscripts.com or by calling (855) 859-2056 or +1 (404) 537-3406 – Conference ID #75102043.
Supplemental and non-GAAP financial information also will be available at http://investor.allscripts.com.
|(1)||Bookings reflect the value of executed contracts for software, hardware, professional services, remote hosting, outsourcing and SaaS.|
|(2)||Population Health Management Solutions are comprised of Allscripts Care Management, dbMotion, FollowMyHealth™ patient portal, Patient Flow, Care Director as well as Allscripts post-acute, decision support and clinical analytics solutions.|
Allscripts (NASDAQ: MDRX) delivers the insights that healthcare providers require to generate world-class outcomes. The company’s Electronic Health Record, practice management and other clinical, revenue cycle, connectivity and information solutions create a Connected Community of Health™ for physicians, hospitals and post-acute organizations. To learn more about Allscripts, please visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.