Allscripts Announces Second Quarter of 2022 Results
Allscripts Healthcare Solutions (MDRX) reported a 10% increase in year-to-date bookings, totaling $172 million. The second quarter of 2022 saw revenues of $151 million, up from $141 million in 2021. Veradigm's revenue rose to $145 million, a gain from $133 million YoY. Despite a GAAP loss from operations of $5 million, adjusted EBITDA improved to $39 million. The company affirms its financial outlook for 2022, projecting 6-7% revenue growth and free cash flow between $110-120 million. Stock repurchases amounted to $94 million in Q2.
- Year-to-date bookings increased by 10%, reaching $172 million.
- Second quarter revenue rose to $151 million, a year-over-year increase.
- Veradigm revenue improved to $145 million from $133 million YoY.
- Adjusted EBITDA of Allscripts rose to $39 million from $35 million YoY.
- Stock repurchases totaled $94 million in Q2.
- GAAP loss from operations amounted to $5 million compared to income of $17 million in Q2 2021.
- Consolidated GAAP net loss totaled $64 million, a significant decrease from income of $22 million in Q2 2021.
- GAAP diluted loss per share was $0.54, compared to earnings per share of $0.15 in the same quarter last year.
- Non-GAAP net income declined to $22 million from $26 million YoY.
-
Second quarter bookings of
$107 million $172 million 10% from the first half of 2021 -
Generated
$42 million
Second quarter 2022 Veradigm revenue was
In the second quarter,
On a GAAP basis, Veradigm income from operations was
Veradigm Adjusted EBITDA totaled
Consolidated GAAP net loss in the second quarter of 2022 totaled
Consolidated GAAP diluted loss per share in the second quarter of 2022 was
Stock repurchases totaled
“Allscripts saw continued success in the second quarter, once again reporting year-over-year growth in revenue, gross profit, and Adjusted EBITDA. Our results allowed us to continue investing in our platforms while also returning significant capital to our shareholders,” said
2022 Financial Outlook(1)
-
Veradigm revenue growth year-over-year between
6% to7% -
Veradigm Adjusted EBITDA growth year-over-year between
10% to15% -
Free cash flow from continuing operations between
$110 million $120 million
Conference Call
A replay of the call will be available approximately two hours after the conclusion of the call, for a period of four weeks, on the Allscripts Investor Relations website.
Supplemental and non-GAAP financial information is also available at http://investor.allscripts.com.
Footnote |
|
(1) |
In providing financial guidance, the company does not reconcile Adjusted EBITDA and free cash flow to the corresponding GAAP financial measures. |
NOTE: All percentage changes described within this press release are calculated from full dollar amounts as illustrated in the accompanying financial statements posted on the Investor Relations website. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body compared to full dollar amounts in the tables.
About
© 2022
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our 2022 outlook, the disposition of Hospitals and Large Physician Practices Business, our profitability initiatives, our strategic priorities and our client outcomes. These forward-looking statements are based on the current beliefs and expectations of
Certain factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to: our ability to achieve the margin targets associated with our margin improvement initiatives within the contemplated time periods, if at all; the magnitude, severity and duration of the COVID-19 pandemic, including the impacts of the pandemic, along with the impacts of our responses and the responses by governments and other businesses to the pandemic, on our business, our employees, our clients and our suppliers; security breaches resulting in unauthorized access to our or our clients’ computer systems or data, including denial-of-services, ransomware or other Internet-based attacks; the failure by Practice Fusion to comply with the terms of the settlement agreements with the
| Table 1 | ||||
| Condensed Consolidated Balance Sheets | ||||
| (In millions) | ||||
| (Unaudited) | ||||
2022 |
2021 |
|||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents |
|
|
||
| Restricted cash | 1.3 |
1.3 |
||
| Accounts receivable, net | 166.8 |
171.6 |
||
| Contract assets | 49.0 |
63.5 |
||
| Prepaid expenses and other current assets | 91.5 |
60.5 |
||
| Current assets attributable to discontinued operations | 20.0 |
331.9 |
||
| Total current assets |
|
|
||
| Fixed assets, net | 15.0 |
9.8 |
||
| Software development costs, net | 82.5 |
74.7 |
||
| Intangible assets, net | 149.2 |
149.7 |
||
524.1 |
506.6 |
|||
| Contract assets - long-term | 19.4 |
28.2 |
||
| Right-of-use assets - operating leases | 15.9 |
18.3 |
||
| Other assets | 79.3 |
83.4 |
||
| Long-term assets attributable to discontinued operations |
|
|
||
| Total assets |
|
|
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable |
|
|
||
| Accrued expenses | 83.0 |
54.5 |
||
| Accrued compensation and benefits | 34.0 |
31.1 |
||
| Deferred revenue | 84.8 |
120.7 |
||
| Current operating lease liabilities | 6.1 |
6.1 |
||
| Current liabilities attributable to discontinued operations | 30.4 |
329.4 |
||
| Total current liabilities | 256.3 |
547.1 |
||
| Long-term debt | 199.9 |
350.1 |
||
| Deferred revenue | 2.0 |
1.8 |
||
| Deferred taxes, net | 10.9 |
16.6 |
||
| Long-term operating lease liabilities | 13.9 |
16.8 |
||
| Other liabilities | 34.9 |
33.8 |
||
| Long-term liabilities attributable to discontinued operations | 0.0 |
50.9 |
||
| Total liabilities |
|
|
||
| Total stockholders’ equity |
|
|
||
| Total liabilities and stockholders’ equity |
|
|
||
| Table 2 | ||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||
| (In millions, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| Revenue: | ||||||||||||
| Provider |
|
|
|
|
|
|
|
|
||||
| Payer & Life Sciences | 32.0 |
|
25.3 |
|
56.0 |
|
47.8 |
|
||||
| Total Revenue | 150.9 |
|
141.2 |
|
293.6 |
|
274.9 |
|
||||
| Cost of revenue: | ||||||||||||
| Provider | 58.3 |
|
60.3 |
|
115.3 |
|
119.0 |
|
||||
| Payer & Life Sciences | 13.1 |
|
12.5 |
|
25.3 |
|
24.6 |
|
||||
| Total cost of revenue | 71.4 |
|
72.8 |
|
140.6 |
|
143.6 |
|
||||
| Gross profit | 79.5 |
|
68.4 |
|
153.0 |
|
131.3 |
|
||||
| Selling, general and administrative expenses | 59.9 |
|
28.1 |
|
101.2 |
|
60.3 |
|
||||
| Research and development | 22.8 |
|
20.9 |
|
46.2 |
|
41.5 |
|
||||
| Asset impairment charges | 0.0 |
|
0.2 |
|
0.0 |
|
0.2 |
|
||||
| Amortization of intangible and acquisition-related assets | 2.2 |
|
2.4 |
|
4.4 |
|
4.8 |
|
||||
| Income (loss) from operations | (5.4 |
) |
16.8 |
|
1.2 |
|
24.5 |
|
||||
| Interest expense, net (a) | (1.8 |
) |
(2.9 |
) |
(3.9 |
) |
(6.0 |
) |
||||
| Other | 1.8 |
|
16.4 |
|
1.4 |
|
17.2 |
|
||||
| Income (loss) before income taxes | (5.4 |
) |
30.3 |
|
(1.3 |
) |
35.7 |
|
||||
| Income tax (provision) benefit | 8.6 |
|
(4.2 |
) |
23.0 |
|
(5.3 |
) |
||||
| Income (loss) from continuing operations, net of tax | 3.2 |
|
26.1 |
|
21.7 |
|
30.4 |
|
||||
| Income (loss) from discontinued operations | (3.9 |
) |
(6.2 |
) |
(8.9 |
) |
(0.3 |
) |
||||
| Gain (loss) on sale of discontinued operations | 2.8 |
|
0.0 |
|
2.8 |
|
0.6 |
|
||||
| Income tax (provision) from discontinued operations | (66.2 |
) |
2.0 |
|
(56.8 |
) |
0.3 |
|
||||
| Income (loss) from discontinued operations, net of tax | (67.3 |
) |
(4.2 |
) |
(62.9 |
) |
0.6 |
|
||||
| Net Income (loss) attributable to |
( |
) |
|
|
( |
) |
|
|
||||
| Diluted earnings per Common Share: | ||||||||||||
| Income (loss) from continuing operations, net of tax |
|
|
|
|
|
|
|
|
||||
| Plus: Interest expense, net of tax, associated with |
|
|
|
|
|
|
|
|
||||
| Income (loss) from continuing operations, net of tax after the effect of assumed conversions | 3.7 |
|
26.1 |
|
22.7 |
|
30.4 |
|
||||
| Income (loss) from discontinued operations, net of tax | (67.3 |
) |
(4.2 |
) |
(62.9 |
) |
0.6 |
|
||||
| Adjusted Net Income (loss) earnings per Common Share |
( |
) |
|
|
( |
) |
|
|
||||
| Income (loss) from continuing operations per share - basic |
|
|
|
|
|
|
|
|
||||
| Income (loss) from discontinued operations per share - basic |
( |
) |
( |
) |
( |
) |
|
|
||||
| Income (loss) per share - basic |
( |
) |
|
|
( |
) |
|
|
||||
| Adjusted Income (loss) from continuing operations per share - diluted |
|
|
|
|
|
|
|
|
||||
| Income (loss) from discontinued operations per share - diluted |
( |
) |
( |
) |
( |
) |
|
|
||||
| Adjusted Income (loss) per share - diluted |
( |
) |
|
|
( |
) |
|
|
||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 114.3 |
|
136.6 |
|
115.1 |
|
138.4 |
|
||||
| Diluted | 118.7 |
|
145.3 |
|
136.7 |
|
147.2 |
|
||||
| Three Months Ended |
Six Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| (a) Interest expense, net is comprised of the following for the periods presented: | ||||||||||||
| Interest expense | (1.1 |
) |
(1.0 |
) |
(2.6 |
) |
(2.3 |
) |
||||
| Interest income | 0.1 |
|
0.0 |
|
0.1 |
|
0.1 |
|
||||
| Non-cash charges to interest expense | (0.8 |
) |
(1.9 |
) |
(1.4 |
) |
(3.8 |
) |
||||
| Interest expense, net |
( |
) |
( |
) |
( |
) |
( |
) |
||||
| Table 3 | ||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income (loss) |
( |
) |
|
|
( |
) |
|
|
||||
| Less: Income(loss) from discontinued operations | (67.3 |
) |
(4.2 |
) |
(62.9 |
) |
0.6 |
|
||||
| Income (loss) from continuing operations |
|
|
|
|
|
|
|
|
||||
| Non-cash adjustments to net income (loss): | ||||||||||||
| Depreciation and amortization | 14.4 |
|
16.7 |
|
28.5 |
|
32.9 |
|
||||
| Non-cash lease expense, net | (2.0 |
) |
(3.8 |
) |
(5.2 |
) |
(5.6 |
) |
||||
| Stock-based compensation expense | 9.0 |
|
2.0 |
|
15.3 |
|
4.8 |
|
||||
| Deferred Taxes | 16.5 |
|
1.1 |
|
(0.5 |
) |
5.8 |
|
||||
| Impairment of assets and long-term investments | 0.0 |
|
0.2 |
|
0.0 |
|
0.2 |
|
||||
| Other (income) loss, net | (1.3 |
) |
(0.6 |
) |
(0.7 |
) |
0.1 |
|
||||
| Total non-cash adjustments to net income (loss) | 36.6 |
|
15.6 |
|
37.4 |
|
38.2 |
|
||||
| Cash impact of changes in operating assets and liabilities: | ||||||||||||
| Assets | 7.4 |
|
(16.9 |
) |
39.0 |
|
7.3 |
|
||||
| Liabilities | (5.1 |
) |
48.3 |
|
(21.5 |
) |
12.3 |
|
||||
| Total cash impact of changes on operating assets and liabilities | 2.3 |
|
31.4 |
|
17.5 |
|
19.6 |
|
||||
| Net cash provided by (used in) operating activities - continuing operations | 42.1 |
|
73.1 |
|
76.6 |
|
88.2 |
|
||||
| Net cash provided by (used in) operating activities - discontinued operations | (43.8 |
) |
(274.0 |
) |
(9.0 |
) |
(284.6 |
) |
||||
| Net cash provided by (used in) operating activities | (1.7 |
) |
(200.9 |
) |
67.6 |
|
(196.4 |
) |
||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (1.2 |
) |
0.0 |
|
(1.6 |
) |
(0.2 |
) |
||||
| Capitalized software | (8.7 |
) |
(8.6 |
) |
(18.3 |
) |
(16.7 |
) |
||||
| Cash paid for business acquisitions, net of cash acquired | 0.0 |
|
0.0 |
|
(24.1 |
) |
0.0 |
|
||||
| Sale of businesses and other investments, net of cash divested and distributions received | 671.4 |
|
2.5 |
|
672.5 |
|
4.2 |
|
||||
| Purchases of equity securities, other investments and related intangible assets, net | (0.3 |
) |
0.0 |
|
(0.3 |
) |
(0.2 |
) |
||||
| Cash provided by (used in) investing activities - continuing operations | 661.2 |
|
(6.1 |
) |
628.2 |
|
(12.9 |
) |
||||
| Cash provided by (used in) investing activities - discontinued operations | (4.0 |
) |
(9.4 |
) |
(15.2 |
) |
(21.6 |
) |
||||
| Net cash provided by (used in) investing activities | 657.2 |
|
(15.5 |
) |
613.0 |
|
(34.5 |
) |
||||
| Cash flows from financing activities: | ||||||||||||
| Taxes paid related to net share settlement of equity awards | (14.6 |
) |
(7.9 |
) |
(27.9 |
) |
(12.6 |
) |
||||
| Credit facility payments | (175.0 |
) |
0.0 |
|
(200.0 |
) |
0.0 |
|
||||
| Credit facility borrowings, net of issuance costs | (2.7 |
) |
250.0 |
|
22.3 |
|
250.0 |
|
||||
| Repurchase of common stock | (93.7 |
) |
(309.0 |
) |
(143.4 |
) |
(309.0 |
) |
||||
| Intercompany to/from parent/subsidiaries | 0.0 |
|
(23.3 |
) |
11.7 |
|
5.0 |
|
||||
| Payment of acquisition and other financing obligations | 0.1 |
|
(0.9 |
) |
0.1 |
|
(2.4 |
) |
||||
| Net cash provided by (used in) financing activities - continuing operations | (285.9 |
) |
(91.1 |
) |
(337.2 |
) |
(69.0 |
) |
||||
| Net cash provided by (used in) financing activities - discontinued operations | 0.0 |
|
23.3 |
|
(11.7 |
) |
(6.3 |
) |
||||
| Net cash provided by (used in) financing activities | (285.9 |
) |
(67.8 |
) |
(348.9 |
) |
(75.3 |
) |
||||
| Effect of exchange rate changes on cash and cash equivalents | (0.7 |
) |
0.1 |
|
(0.7 |
) |
0.1 |
|
||||
| Net increase (decrease) in cash and cash equivalents | 368.9 |
|
(284.1 |
) |
331.0 |
|
(306.1 |
) |
||||
| Cash, cash equivalents and restricted cash, beginning of period | 152.6 |
|
515.5 |
|
190.5 |
|
537.5 |
|
||||
| Cash, cash equivalents and restricted cash, end of period |
|
|
|
|
|
|
|
|
||||
| Less: Cash and cash equivalents attributable to discontinued operations |
( |
) |
( |
) |
( |
) |
( |
) |
||||
| Cash, cash equivalents and restricted cash, end of period, excluding discontinued operations |
|
|
|
|
|
|
|
|
||||
| Table 4 | ||||||||||||
| Condensed Non-GAAP Financial Information | ||||||||||||
| (In millions, except per share amounts and percentages) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| Gross profit, as reported |
|
|
|
|
|
|
|
|
||||
| Acquisition-related amortization | 1.7 |
|
1.8 |
|
3.3 |
|
3.6 |
|
||||
| Stock-based compensation expense | 0.3 |
|
0.3 |
|
0.6 |
|
0.6 |
|
||||
| Total non-GAAP gross profit |
|
|
|
|
|
|
|
|
||||
| Income (loss) from operations, as reported |
( |
) |
|
|
|
|
|
|
||||
| Acquisition-related amortization | 4.0 |
|
4.2 |
|
7.8 |
|
8.4 |
|
||||
| Stock-based compensation expense | 9.2 |
|
3.4 |
|
16.1 |
|
7.4 |
|
||||
| Transaction and other | 21.3 |
|
0.0 |
|
27.9 |
|
0.0 |
|
||||
| Total non-GAAP income from operations |
|
|
|
|
|
|
|
|
||||
| Adjusted Net Income (loss) earnings per Common Share |
( |
) |
|
|
( |
) |
|
|
||||
| Loss (income) from discontinued operations | 3.9 |
|
6.2 |
|
8.9 |
|
0.3 |
|
||||
| (Gain) on sale of business, net from discontinued operations | (2.8 |
) |
0.0 |
|
(2.8 |
) |
(0.6 |
) |
||||
| Income tax provision from discontinued operations | 66.2 |
|
(2.0 |
) |
56.8 |
|
(0.3 |
) |
||||
| Income (loss) from continuing operations, net of tax after the effect of assumed conversions |
|
|
|
|
|
|
|
|
||||
| Less: Interest expense, net of tax, associated with |
(0.5 |
) |
0.0 |
|
(1.0 |
) |
0.0 |
|
||||
| Income (loss) from continuing operations, net of tax |
|
|
|
|
|
|
|
|
||||
| Acquisition-related amortization | 4.0 |
|
4.1 |
|
7.8 |
|
8.4 |
|
||||
| Stock-based compensation expense | 9.2 |
|
3.5 |
|
16.1 |
|
7.4 |
|
||||
| Transaction and other | 21.4 |
|
0.0 |
|
27.9 |
|
0.0 |
|
||||
| Non-cash charges to interest expense and other | 0.0 |
|
(3.7 |
) |
0.0 |
|
(2.4 |
) |
||||
| Tax rate alignment | (15.7 |
) |
(3.9 |
) |
(35.2 |
) |
(6.5 |
) |
||||
| Non-GAAP net income attributable to |
|
|
|
|
|
|
|
|
||||
| Non-GAAP effective tax rate | 24 |
% |
24 |
% |
24 |
% |
24 |
% |
||||
| Weighted shares outstanding - basic | 114.3 |
|
136.6 |
|
115.1 |
|
138.4 |
|
||||
| Weighted shares outstanding - diluted | 118.7 |
|
145.3 |
|
136.7 |
|
147.2 |
|
||||
| Less the net effect of convertible notes and note hedges | 0.9 |
|
(1.0 |
) |
(14.1 |
) |
(2.9 |
) |
||||
| Non-GAAP Weighted shares outstanding - diluted | 119.6 |
|
144.3 |
|
122.6 |
|
144.3 |
|
||||
| GAAP Adjusted Income (loss) from continuing operations per share - diluted |
( |
) |
|
|
( |
) |
|
|
||||
| Non-GAAP Income (loss) per share - diluted |
|
|
|
|
|
|
|
|
||||
| Table 5 | ||||||||||||
| Non-GAAP Financial Information - Adjusted EBITDA | ||||||||||||
| (In millions, except percentages) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| Income (loss) from operations, as reported |
( |
) |
|
|
|
|
|
|
||||
| Plus: | ||||||||||||
| Depreciation and amortization | 13.5 |
|
14.9 |
|
27.1 |
|
29.3 |
|
||||
| Asset impairment charges | 0.0 |
|
0.2 |
|
0.0 |
|
0.2 |
|
||||
| Stock-based compensation expense | 9.2 |
|
3.4 |
|
16.1 |
|
7.4 |
|
||||
| Transaction and other | 21.3 |
|
0.0 |
|
27.9 |
|
0.0 |
|
||||
| Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||
| Adjusted EBITDA margin (a) | 25.6 |
% |
25.0 |
% |
24.6 |
% |
22.3 |
% |
||||
| (a) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue. | ||||||||||||
| Table 6 | ||||||||||||
| Non-GAAP Financial Information - Free Cash Flow | ||||||||||||
| (In millions) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| Net cash provided by (used in) operating activities - continuing operations |
|
|
|
|
|
|
|
|
||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (1.2 |
) |
0.0 |
|
(1.6 |
) |
(0.2 |
) |
||||
| Capitalized software | (8.7 |
) |
(8.6 |
) |
(18.3 |
) |
(16.7 |
) |
||||
| Free cash flow |
|
|
|
|
|
|
|
|
||||
| Table 7 | |||||||||
| Non-GAAP Financial Information from Continuing Operations - Segment Details | |||||||||
| (In millions) | |||||||||
| (unaudited) | |||||||||
2021 |
2022 |
||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | ||
| Total Veradigm, Non-GAAP | |||||||||
| Revenue | 126.4 |
133.4 |
137.2 |
155.2 |
552.2 |
|
136.3 |
144.6 |
280.9 |
| Gross profit | 60.7 |
65.7 |
67.7 |
86.7 |
280.8 |
|
71.1 |
77.4 |
148.5 |
| Gross margin |
|
|
|
|
|
|
|
|
|
| Income from operations | 19.0 |
25.2 |
24.2 |
42.4 |
110.8 |
|
25.5 |
30.3 |
55.8 |
| Adjusted EBITDA | 28.4 |
35.3 |
34.5 |
51.9 |
150.1 |
|
35.2 |
39.8 |
75.0 |
| Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
| Unallocated, Non-GAAP |
|
|
|
|
|
|
|
|
|
| Revenue | 7.3 |
7.8 |
7.5 |
6.0 |
28.6 |
|
6.4 |
6.3 |
12.7 |
| Gross Profit | 4.3 |
4.8 |
3.9 |
3.3 |
16.3 |
|
4.3 |
4.1 |
8.4 |
| Gross margin |
|
|
|
|
|
|
|
|
|
| Income from operations | (3.1) |
(0.8) |
1.4 |
6.3 |
3.8 |
|
(1.6) |
(1.2) |
(2.8) |
| Adjusted EBITDA | (2.2) |
0.0 |
1.7 |
6.3 |
5.8 |
|
(1.5) |
(1.2) |
(2.7) |
| Total Allscripts Consolidated, Non-GAAP |
|
|
|
|
|
|
|
|
|
| Revenue | 133.7 |
141.2 |
144.7 |
161.2 |
580.8 |
|
142.7 |
150.9 |
293.6 |
| Gross profit | 65.0 |
70.5 |
71.6 |
90.0 |
297.1 |
|
75.4 |
81.5 |
156.9 |
| Gross margin |
|
|
|
|
|
|
|
|
|
| Income from operations | 15.9 |
24.4 |
25.6 |
48.7 |
114.6 |
|
23.9 |
29.1 |
53.0 |
| Adjusted EBITDA | 26.2 |
35.3 |
36.2 |
58.2 |
155.9 |
|
33.7 |
38.6 |
72.3 |
| Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|||||||
Q1 |
Q2 |
Q3 |
Q4 |
Total |
|
Q1 |
Q2 |
Total |
|
| Allscripts Consolidated Bookings, Non-GAAP |
|
|
|
|
|
|
|
|
|
| Total contract value | 70.4 |
85.4 |
61.6 |
83.5 |
300.9 |
|
64.8 |
106.8 |
171.6 |
| First year contract value | 33.8 |
38.3 |
31.9 |
41.9 |
145.9 |
|
28.9 |
48.7 |
77.6 |
| Table 8 | |||||||||
| Non-GAAP Financial Information Reconciliation - Segment Details | |||||||||
| (In millions) | |||||||||
| (unaudited) | |||||||||
2021 |
2022 |
||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | ||
| Total Veradigm | |||||||||
| Revenue, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit, GAAP |
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 1.8 |
1.8 |
1.7 |
1.8 |
7.1 |
|
1.6 |
1.7 |
3.3 |
| Stock-based compensation expense | 0.3 |
0.3 |
0.3 |
0.3 |
1.2 |
|
0.3 |
0.3 |
0.6 |
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from operations, GAAP |
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 4.2 |
4.2 |
4.1 |
3.9 |
16.4 |
|
3.8 |
4.0 |
7.8 |
| Stock-based compensation expense | 3.4 |
3.1 |
3.2 |
3.3 |
13.0 |
|
3.6 |
2.3 |
5.9 |
| Transaction and other | 0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
0.0 |
0.0 |
0.0 |
| Non-GAAP Income (loss) from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Impairment Charges | 0.0 |
0.2 |
0.6 |
0.0 |
0.8 |
|
0.0 |
0.0 |
0.0 |
| Depreciation and amortization | 9.4 |
9.9 |
9.7 |
9.5 |
38.5 |
|
9.7 |
9.5 |
19.2 |
| Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from operations, GAAP |
( |
( |
|
|
|
|
( |
( |
( |
| Stock-based compensation expense | 0.6 |
0.3 |
(0.1) |
(0.1) |
0.9 |
|
3.3 |
6.9 |
10.2 |
| Transaction and other | 0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
6.6 |
21.3 |
27.9 |
| Non-GAAP Income (loss) from operations |
( |
( |
|
|
|
|
( |
( |
( |
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization | 0.9 |
0.8 |
0.3 |
0.0 |
2.0 |
|
0.1 |
0.0 |
0.1 |
| Adjusted EBITDA |
( |
|
|
|
|
|
( |
( |
( |
| Table 9 | ||||||||||
| Non-GAAP Financial Information from Continuing Operations - Revenue and Gross Profit Details | ||||||||||
| (In millions) | ||||||||||
| (unaudited) | ||||||||||
2021 |
2022 |
|||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | |||
| Veradigm Provider, Non-GAAP | ||||||||||
| Revenue | 103.9 |
108.1 |
110.8 |
126.3 |
449.0 |
|
112.3 |
112.6 |
224.9 |
|
| Gross profit | 49.8 |
52.4 |
54.2 |
70.6 |
227.0 |
|
58.8 |
58.0 |
116.8 |
|
| Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Veradigm Payer & Life Sciences, Non-GAAP |
|
|
|
|
|
|
|
|
|
|
| Revenue | 22.5 |
25.3 |
26.5 |
28.9 |
103.2 |
|
24.0 |
32.0 |
56.0 |
|
| Gross Profit | 10.9 |
13.3 |
13.5 |
16.1 |
53.8 |
|
12.3 |
19.4 |
31.7 |
|
| Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total Veradigm, Non-GAAP |
|
|
|
|
|
|
|
|
|
|
| Revenue | 126.4 |
133.4 |
137.3 |
155.2 |
552.2 |
|
136.3 |
144.6 |
280.9 |
|
| Gross profit | 60.7 |
65.7 |
67.7 |
86.7 |
280.8 |
|
71.1 |
77.4 |
148.5 |
|
| Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Allscripts Consolidated Provider, Non-GAAP |
|
|
|
|
|
|
|
|
|
|
| Revenue | 111.2 |
115.9 |
118.3 |
132.3 |
477.6 |
|
118.7 |
118.9 |
237.6 |
|
| Gross profit | 54.1 |
57.2 |
58.1 |
73.9 |
243.3 |
|
63.1 |
62.1 |
125.2 |
|
| Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Allscripts Consolidated Payer & Life Sciences, Non-GAAP |
|
|
|
|
|
|
|
|
|
|
| Revenue | 22.5 |
25.3 |
26.5 |
28.9 |
103.2 |
|
24.0 |
32.0 |
56.0 |
|
| Gross Profit | 10.9 |
13.3 |
13.5 |
16.1 |
53.8 |
|
12.3 |
19.4 |
31.7 |
|
| Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total Allscripts Consolidated, Non-GAAP |
|
|
|
|
|
|
|
|
|
|
| Revenue | 133.7 |
141.2 |
144.8 |
161.2 |
580.8 |
|
142.7 |
150.9 |
293.6 |
|
| Gross profit | 65.0 |
70.5 |
71.6 |
90.0 |
297.1 |
|
75.4 |
81.5 |
156.9 |
|
| Gross margin |
|
|
|
|
|
|
|
|
|
|
| Table 10 | ||||||||||
| Non-GAAP Financial Information Reconciliation - Revenue and Gross Profit Details | ||||||||||
| (In millions) | ||||||||||
| (unaudited) | ||||||||||
2021 |
2022 |
|||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | |||
| Veradigm Provider | ||||||||||
| Gross profit, as reported |
|
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 1.3 |
1.3 |
1.3 |
1.3 |
5.2 |
|
1.1 |
1.2 |
2.3 |
|
| Stock-based compensation expense | 0.3 |
0.3 |
0.3 |
0.3 |
1.2 |
|
0.3 |
0.3 |
0.6 |
|
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Veradigm Payer & Life Sciences |
|
|
|
|
|
|
|
|
|
|
| Gross profit, as reported |
|
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 0.5 |
0.5 |
0.4 |
0.5 |
1.9 |
|
0.5 |
0.5 |
1.0 |
|
| Stock-based compensation expense | 0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
0.0 |
0.0 |
0.0 |
|
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total Veradigm |
|
|
|
|
|
|
|
|
|
|
| Gross profit, as reported |
|
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 1.8 |
1.8 |
1.7 |
1.8 |
7.1 |
|
1.6 |
1.7 |
3.3 |
|
| Stock-based compensation expense | 0.3 |
0.3 |
0.3 |
0.3 |
1.2 |
|
0.3 |
0.3 |
0.6 |
|
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Allscripts Consolidated Provider |
|
|
|
|
|
|
|
|
|
|
| Gross profit, as reported |
|
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 1.3 |
1.3 |
1.3 |
1.3 |
5.2 |
|
1.1 |
1.2 |
2.3 |
|
| Stock-based compensation expense | 0.3 |
0.3 |
0.3 |
0.3 |
1.2 |
|
0.3 |
0.3 |
0.6 |
|
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Allscripts Consolidated Payer & Life Sciences |
|
|
|
|
|
|
|
|
|
|
| Gross profit, as reported |
|
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 0.5 |
0.5 |
0.4 |
0.5 |
1.9 |
|
0.5 |
0.5 |
1.0 |
|
| Stock-based compensation expense | 0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
0.0 |
0.0 |
0.0 |
|
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Total Allscripts Consolidated |
|
|
|
|
|
|
|
|
|
|
| Gross profit, as reported |
|
|
|
|
|
|
|
|
|
|
| Acquisition-related amortization | 1.8 |
1.8 |
1.7 |
1.8 |
7.1 |
|
1.6 |
1.7 |
3.3 |
|
| Stock-based compensation expense | 0.3 |
0.3 |
0.3 |
0.3 |
1.2 |
|
0.3 |
0.3 |
0.6 |
|
| Non-GAAP Gross profit |
|
|
|
|
|
|
|
|
|
|
Explanation of Non-GAAP Financial Measures
- Non-GAAP bookings consists of total contract value which reflects the value of executed contracts for software, hardware, maintenance, and other client services on a continuing operations basis. First year contract value, a subset of total contract value, reflects the anticipated revenue to be recognized in 12 months following new contract activation on a continuing operations basis.
- Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related amortization and; stock-based compensation expense. Non-GAAP gross margin consists of non-GAAP gross profit as a percentage of revenue in the applicable period. Reconciliations to GAAP gross profit are found in Tables 4, 8 and 10 within this press release.
- Non-GAAP income from operations consists of GAAP income (loss) from operations, as reported, and excludes acquisition-related amortization; stock-based compensation expense; and transaction and other costs. Reconciliations to GAAP income (loss) from operations are found in Tables 4 and 8 within this press release.
- Adjusted EBITDA is a non-GAAP measure and consists of GAAP income/(loss) from operations, as reported, and adjusts for: depreciation and amortization; asset impairment charges; stock-based compensation expense; and transaction and other costs. Reconciliations to GAAP income/(loss) from operations are found in Tables 5 and 8 within this press release.
- Adjusted EBITDA margin is a non-GAAP measure that is calculated by dividing Adjusted EBITDA by revenue. See the reconciliations in Tables 5 and 8 within this press release with respect to Adjusted EBITDA.
-
Non-GAAP effective income tax rate is based on non-GAAP pre-tax earnings and consists of the statutory federal income tax rate,
Allscripts effective state income tax rate and adjustments for permanent differences.
-
Non-GAAP net income attributable to
Allscripts Healthcare Solutions, Inc. consists of GAAP net income/(loss) from continuing operations, as reported, and adds back acquisition-related amortization; stock-based compensation expense; transaction and other costs; and non-cash charges to interest expense and other. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income/(loss) attributable toAllscripts Healthcare Solutions, Inc. are found in Table 4 within this press release.
-
Non-GAAP diluted weighted shares outstanding consists of diluted weighted shares outstanding, as reported, less the dilutive impact of
0.875% convertible notes due to the intent to settle the principal in cash and shares to be delivered at settlement by the convertible note hedge.
- Non-GAAP diluted earnings per share consist of non-GAAP net income, as defined above, divided by non-GAAP diluted weighted shares outstanding, as defined above, during the applicable period.
- Free cash flow consists of GAAP cash flows from continuing operations in the applicable period, net of capital expenditures and capitalized software costs. Reconciliations to GAAP cash flows from continuing operations are found in Table 6 within this press release.
Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments.
Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards.
Transaction and Other Costs. Transaction and other costs relate to certain legal proceedings and investigations, consulting, severance, incentive compensation and other charges incurred in connection with activities that are considered not reflective of our core business. Other costs also include non-cash impairment charges based on management’s assessment of the likelihood of near-term recovery of the investments’ value.
Asset Impairment Charges. Asset impairment charges reflect non-cash charges related to the write-offs of deferred costs related to our private cloud hosting operations.
Non-Cash Charges to Interest Expense and Other. Non-cash charges to interest expense include the amortization of the fair value of the conversion option embedded in the
Tax Rate Alignment. Tax rate alignment aligns the applicable period’s effective tax rate to the expected annual non-GAAP effective tax rate.
Management also believes that non-GAAP gross profit, income from operations, effective income tax rate, net income, diluted earnings per share, Adjusted EBITDA, Adjusted EBITDA margin and free cash flow provide useful supplemental information to management and investors regarding the underlying performance of
Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use non-GAAP gross profit, operating income, net income, diluted earnings per share, Adjusted EBITDA and/or Adjusted EBITDA margin to measure achievement under
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005988/en/
Investors:
312-506-1237
jenny.gelinas@allscripts.com
Media:
312-447-2466
Concetta.rasiarmos@allscripts.com
Source:
FAQ
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