mdrx-8k_20201231.htm
false 0001124804 0001124804 2020-12-31 2020-12-31

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): December 31, 2020

 

ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

 

Delaware

001-35547

36-4392754

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

222 Merchandise Mart Plaza, Suite 2024, Chicago, Illinois 60654

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (800) 334-8534

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol

Name of Each Exchange on which Registered

Common Stock, par value $0.01 per share

MDRX

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


 

 

Item 2.01Completion of Acquisition or Disposition of Assets.

 

On December 31, 2020, Allscripts Healthcare, LLC, a North Carolina limited liability company (“Allscripts Healthcare”) and subsidiary of Allscripts Healthcare Solutions, Inc., a Delaware corporation (the “Company”), completed the previously-announced divestiture of substantially all of the assets of Allscripts Healthcare’s business commonly referred to as its CarePort Health business (“CarePort Business”) to Carbonite Buyer, Inc., a Delaware corporation (“Carbonite”), pursuant to a Purchase Agreement dated October 12, 2020, for a purchase price of $1.35 billion (the “CarePort Divestiture”). The CarePort Divestiture was structured as a sale of assets primarily related to the CarePort Business (and the transfer of certain liabilities in connection therewith) by Allscripts Healthcare to Carbonite.

 

The CarePort Purchase Agreement was filed as Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on October 15, 2020 and is incorporated herein by reference.

 

 

Item 3.02Unregistered Sales of Equity Securities.

 

The Company completed the issuance of a warrant to a commercial partner on December 31, 2020, as part of a new and expanded commercial relationship, pursuant to which the warrant holder has the right to purchase 1.5 million shares of the Company’s common stock at an exercise price of $9.82 per share (the closing price of the Company’s common stock on the date definitive agreements with respect to the new and expanded commercial relationship were executed), subject to customary anti-dilution adjustments. The warrant vests in four equal annual installments of 375,000 shares beginning on December 31, 2020 with each additional installment vesting annually thereafter. The warrant expires on December 31, 2026 and becomes void if certain specified changes to the parties’ commercial relationship occur. The warrant was issued and sold in reliance upon an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), afforded by Section 4(a)(2) of the Securities Act and rules promulgated thereunder and corresponding provisions of state securities laws. The commercial partner is an “accredited investor” as defined in Rule 501(a) under the Securities Act.

Item 7.01Regulation FD Disclosure.

 

On January 4, 2021, the Company issued a press release announcing the completion of the CarePort Divestiture. A copy of the Company’s press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01Financial Statements and Exhibits.

 

(b) Pro Forma Financial Information

 

The unaudited pro forma consolidated financial information of the Company giving effect to the CarePort Divestiture is filed as Exhibit 99.2 hereto and is incorporated herein by reference.

 

(d) Exhibits.

 

 

 

 

 

Exhibit Number

 

 

Exhibit Description

 

 

 

 

 

 

99.1

 

 

Press release issued by Allscripts Healthcare Solutions, Inc. on January 4, 2021

 

 

 

 

 

 

99.2

 

 

Unaudited Pro Forma Consolidated Financial Information of the Company

 

 

 

 

 

 

104

 

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 


 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

 

 

 

 

Date: January 4, 2021

 

By:

/s/ Eric Jacobson

 

 

 

Eric Jacobson

 

 

 

Senior Vice President and Corporate Secretary

 

 

mdrx-ex991_7.htm

Exhibit 99.1

 

Allscripts closes previously announced sale of CarePort Health business

 

CHICAGO – January 4, 2021 – On December 31, 2020, Allscripts (NASDAQ: MDRX) closed the previously announced sale of its CarePort Health business to WellSky® Corporation for $1.35 billion. CarePort solutions assist hundreds of hospitals and thousands of post-acute care providers to efficiently coordinate and transition patients through different settings of care.

 

About Allscripts

Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers and consumers to make better decisions, delivering better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and The Allscripts Blog.

###

© 2021 Allscripts Healthcare, LLC and/or its affiliates. All Rights Reserved.

 

Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.

For more information contact:

Investors:

Stephen Shulstein

312-386-6735

Stephen.Shulstein@allscripts.com

 

Media:

Concetta Rasiarmos

312-447-2466

concetta.rasiarmos@allscripts.com

 

 

mdrx-ex992_10.htm

Exhibit 99.2

Allscripts Healthcare Solutions, Inc.

Summary of Unaudited Pro Forma Financial Information

(Dollars in thousands, except per share amounts)

Overview

On December 31, 2020, Allscripts Healthcare, LLC, a North Carolina limited liability company (“Allscripts Healthcare”) and subsidiary of Allscripts Healthcare Solutions, Inc., a Delaware corporation (the “Company”), completed the previously-announced divestiture of substantially all of the assets of Allscripts Healthcare’s business commonly referred to as its CarePort Health business (“CarePort Business”) to Carbonite Buyer, Inc., a Delaware corporation (“Carbonite”), pursuant to a Purchase Agreement dated October 12, 2020, for a purchase price of $1.35 billion (the “CarePort Divestiture”). The CarePort Divestiture was structured as a sale of assets primarily related to the CarePort Business (and the transfer of certain liabilities in connection therewith) by Allscripts Healthcare to Carbonite.

Basis of Presentation

The unaudited pro forma consolidated balance sheet as of September 30, 2020 provides the financial position of the Company giving effect to the disposition of the CarePort Business. The unaudited pro forma consolidated statements of operations for the nine months ended September 30, 2020 and the years ended December 31, 2019, 2018 and 2017 have been prepared to show the operating results of the Company giving effect to the disposition of the CarePort Business as if the transaction had occurred on January 1, 2017.

The unaudited financial information for the Company was derived from, and should be read in conjunction with, the Company’s unaudited interim consolidated financial statements included in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on October 30, 2020 and the audited consolidated financial statements for the years ended December 31, 2019, 2018 and 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2020.

The pro forma adjustments are described in the notes to the unaudited pro forma financial information. The unaudited pro forma financial information included herein is for informational purposes only and is not necessarily indicative of what the Company's financial performance and financial position would have been without the consolidation of the CarePort Business for the periods presented. Actual results may differ significantly from those reflected here in the unaudited pro forma consolidated financial statements for various reasons, including but not limited to, the differences between the assumptions used to prepare the unaudited pro forma condensed consolidated financial statements and actual results had the transaction actually occurred on January 1, 2017.

 

 

 

 

 

 

 

 

 

 

 


Financial Tables Follow

ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2020

 

(In thousands, except per share amounts)

 

Allscripts Historical (A)

 

 

Sale of CarePort

 

 

 

 

Pro Forma

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

218,701

 

 

$

404,862

 

 

(C)

 

$

623,563

 

Restricted cash

 

 

6,209

 

 

 

0

 

 

 

 

 

6,209

 

Accounts receivable, net of allowance of $37,025 as of September 30, 2020

 

 

381,888

 

 

 

(20,636

)

 

(D)

 

 

361,252

 

Contract assets, net of allowance of $1,068 as of September 30, 2020

 

 

101,333

 

 

 

(1,148

)

 

 

 

 

100,185

 

Prepaid expenses and other current assets

 

 

135,869

 

 

 

(2,142

)

 

 

 

 

133,727

 

Assets held for sale

 

 

104,782

 

 

 

0

 

 

 

 

 

104,782

 

Total current assets

 

 

948,782

 

 

 

380,936

 

 

 

 

 

1,329,718

 

Fixed assets, net

 

 

70,027

 

 

 

(61

)

 

 

 

 

69,966

 

Software development costs, net

 

 

241,656

 

 

 

(10,977

)

 

 

 

 

230,679

 

Intangible assets, net

 

 

329,011

 

 

 

(5,915

)

 

 

 

 

323,096

 

Goodwill

 

 

1,287,197

 

 

 

(313,243

)

 

 

 

 

973,954

 

Deferred taxes, net

 

 

5,881

 

 

 

(321

)

 

 

 

 

5,560

 

Contract assets - long-term, net of allowance of $4,273 as of September 30, 2020

 

 

42,805

 

 

 

(765

)

 

 

 

 

42,040

 

Right-of-use assets - operating leases

 

 

102,217

 

 

 

(822

)

 

 

 

 

101,395

 

Other assets

 

 

118,689

 

 

 

(1,196

)

 

 

 

 

117,493

 

Total assets

 

$

3,146,265

 

 

$

47,636

 

 

 

 

$

3,193,901

 

 



ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET (CONTINUED)

AS OF SEPTEMBER 30, 2020

 

(In thousands, except per share amounts)

 

Allscripts Historical (A)

 

 

Sale of CarePort

 

 

 

 

Pro Forma

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

53,627

 

 

$

327,954

 

 

(E)

 

$

381,581

 

Accrued expenses

 

 

166,180

 

 

 

(381

)

 

 

 

 

165,799

 

Accrued compensation and benefits

 

 

97,515

 

 

 

(1,349

)

 

 

 

 

96,166

 

Deferred revenue

 

 

339,239

 

 

 

(28,539

)

 

 

 

 

310,700

 

Current maturities of long-term debt

 

 

48,293

 

 

 

(48,293

)

 

(F)

 

 

0

 

Current operating lease liabilities

 

 

22,317

 

 

 

(320

)

 

 

 

 

21,997

 

Liabilities related to assets held for sale

 

 

17,479

 

 

 

0

 

 

 

 

 

17,479

 

Total current liabilities

 

 

744,650

 

 

 

249,072

 

 

 

 

 

993,722

 

Long-term debt

 

 

1,026,048

 

 

 

(816,707

)

 

(F)

 

 

209,341

 

Deferred revenue

 

 

11,570

 

 

 

(943

)

 

 

 

 

10,627

 

Deferred taxes, net

 

 

24,534

 

 

 

(4,498

)

 

 

 

 

20,036

 

Long-term operating lease liabilities

 

 

98,866

 

 

 

(552

)

 

 

 

 

98,314

 

Other liabilities

 

 

32,210

 

 

 

0

 

 

 

 

 

32,210

 

Total liabilities

 

 

1,937,878

 

 

 

(573,628

)

 

 

 

 

1,364,250

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock: $0.01 par value, 1,000 shares authorized, no shares issued and outstanding as of September 30, 2020

 

 

0

 

 

 

0

 

 

 

 

 

0

 

Common stock: $0.01 par value, 349,000 shares authorized as of September 30, 2020; 274,471 and 157,978 shares issued and outstanding as of September 30, 2020, respectively

 

 

2,744

 

 

 

0

 

 

 

 

 

2,744

 

Treasury stock: at cost, 116,493 shares as of September 30, 2020

 

 

(625,246

)

 

 

0

 

 

 

 

 

(625,246

)

Additional paid-in capital

 

 

1,929,396

 

 

 

0

 

 

 

 

 

1,929,396

 

Accumulated deficit

 

 

(94,706

)

 

 

621,264

 

 

(G)

 

 

526,558

 

Accumulated other comprehensive loss

 

 

(3,801

)

 

 

0

 

 

 

 

 

(3,801

)

Total stockholders’ equity

 

 

1,208,387

 

 

 

621,264

 

 

 

 

 

1,829,651

 

Total liabilities and stockholders’ equity

 

$

3,146,265

 

 

$

47,636

 

 

 

 

$

3,193,901

 

 



ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

 

(In thousands, except per share amounts)

 

Allscripts Historical (A)

 

 

CarePort Historical

 

 

 

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

$

770,180

 

 

$

(71,168

)

 

 

 

$

699,012

 

Client services

 

 

454,786

 

 

 

(4,146

)

 

 

 

 

450,640

 

Total revenue

 

 

1,224,966

 

 

 

(75,314

)

 

 

 

 

1,149,652

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

 

225,879

 

 

 

(5,253

)

 

 

 

 

220,626

 

Client services

 

 

420,185

 

 

 

(5,576

)

 

 

 

 

414,609

 

Amortization of software development and acquisition-related assets

 

 

95,860

 

 

 

(3,257

)

 

 

 

 

92,603

 

Total cost of revenue

 

 

741,924

 

 

 

(14,086

)

 

 

 

 

727,838

 

    Gross profit

 

 

483,042

 

 

 

(61,228

)

 

 

 

 

421,814

 

Selling, general and administrative expenses

 

 

309,139

 

 

 

(8,214

)

 

 

 

 

300,925

 

Research and development

 

 

158,913

 

 

 

(3,819

)

 

 

 

 

155,094

 

Asset impairment charges

 

 

210

 

 

 

0

 

 

 

 

 

210

 

Amortization of intangible and acquisition-related assets

 

 

19,347

 

 

 

0

 

 

 

 

 

19,347

 

Loss from operations

 

 

(4,567

)

 

 

(49,195

)

 

 

 

 

(53,762

)

Interest expense

 

 

(31,280

)

 

 

13,149

 

 

(H)

 

 

(18,131

)

Other income, net

 

 

45

 

 

 

0

 

 

 

 

 

45

 

Impairment of long-term investments

 

 

(1,575

)

 

 

0

 

 

 

 

 

(1,575

)

Equity in net income of unconsolidated investments

 

 

17,417

 

 

 

0

 

 

 

 

 

17,417

 

Loss before income taxes

 

 

(19,960

)

 

 

(36,046

)

 

 

 

 

(56,006

)

Income tax provision

 

 

(7,457

)

 

 

9,372

 

 

 

 

 

1,915

 

Net loss

 

 

(27,417

)

 

 

(26,674

)

 

 

 

 

(54,091

)

Net loss attributable to non-controlling interests

 

 

0

 

 

 

0

 

 

 

 

 

0

 

Net loss attributable to Allscripts Healthcare Solutions, Inc. stockholders

 

$

(27,417

)

 

$

(26,674

)

 

 

 

$

(54,091

)

Net loss attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share - Basic

 

$

(0.17

)

 

$

(0.16

)

 

 

 

$

(0.33

)

Net loss attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share - Diluted

 

$

(0.17

)

 

$

(0.16

)

 

 

 

$

(0.33

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

162,092

 

 

 

 

 

 

 

 

 

162,092

 

Diluted weighted average shares outstanding

 

 

162,092

 

 

 

 

 

 

 

 

 

162,092

 

 



ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2019

 

(In thousands, except per share amounts)

 

Allscripts Historical (B)

 

 

CarePort Historical

 

 

 

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

$

1,126,486

 

 

$

(85,819

)

 

 

 

$

1,040,667

 

Client services

 

 

645,191

 

 

 

(6,887

)

 

 

 

 

638,304

 

Total revenue

 

 

1,771,677

 

 

 

(92,706

)

 

 

 

 

1,678,971

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

 

358,946

 

 

 

(7,909

)

 

 

 

 

351,037

 

Client services

 

 

583,111

 

 

 

(4,998

)

 

 

 

 

578,113

 

Amortization of software development and acquisition-related assets

 

 

116,040

 

 

 

(2,861

)

 

 

 

 

113,179

 

Total cost of revenue

 

 

1,058,097

 

 

 

(15,768

)

 

 

 

 

1,042,329

 

    Gross profit

 

 

713,580

 

 

 

(76,938

)

 

 

 

 

636,642

 

Selling, general and administrative expenses

 

 

419,774

 

 

 

(12,607

)

 

 

 

 

407,167

 

Research and development

 

 

254,509

 

 

 

(4,879

)

 

 

 

 

249,630

 

Asset impairment charges

 

 

10,837

 

 

 

0

 

 

 

 

 

10,837

 

Goodwill impairment charge

 

 

25,700

 

 

 

0

 

 

 

 

 

25,700

 

Amortization of intangible and acquisition-related assets

 

 

27,216

 

 

 

0

 

 

 

 

 

27,216

 

Loss from operations

 

 

(24,456

)

 

 

(59,452

)

 

 

 

 

(83,908

)

Interest expense

 

 

(43,172

)

 

 

20,699

 

 

(H)

 

 

(22,473

)

Other loss, net

 

 

(138,902

)

 

 

0

 

 

 

 

 

(138,902

)

Impairment of long-term investments

 

 

(651

)

 

 

0

 

 

 

 

 

(651

)

Equity in net income of unconsolidated investments

 

 

665

 

 

 

0

 

 

 

 

 

665

 

Loss before income taxes

 

 

(206,516

)

 

 

(38,753

)

 

 

 

 

(245,269

)

Income tax benefit

 

 

23,914

 

 

 

10,076

 

 

 

 

 

33,990

 

Net loss

 

 

(182,602

)

 

 

(28,677

)

 

 

 

 

(211,279

)

Net loss attributable to non-controlling interests

 

 

424

 

 

 

0

 

 

 

 

 

424

 

Net loss attributable to Allscripts Healthcare Solutions, Inc. stockholders

 

$

(182,178

)

 

$

(28,677

)

 

 

 

$

(210,855

)

Net loss attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share - Basic

 

$

(1.10

)

 

$

(0.17

)

 

 

 

$

(1.27

)

Net loss attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share - Diluted

 

$

(1.10

)

 

$

(0.17

)

 

 

 

$

(1.27

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

166,306

 

 

 

 

 

 

 

 

 

166,306

 

Diluted weighted average shares outstanding

 

 

166,306

 

 

 

 

 

 

 

 

 

166,306

 

 



ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2018

 

(In thousands, except per share amounts)

 

Allscripts Historical (B)

 

 

CarePort Historical

 

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

$

1,128,263

 

 

$

(82,099

)

 

$

1,046,164

 

Client services

 

 

621,699

 

 

 

(7,167

)

 

 

614,532

 

Total revenue

 

 

1,749,962

 

 

 

(89,266

)

 

 

1,660,696

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

 

357,039

 

 

 

(6,492

)

 

 

350,547

 

Client services

 

 

565,504

 

 

 

(4,828

)

 

 

560,676

 

Amortization of software development and acquisition-related assets

 

 

102,876

 

 

 

(3,440

)

 

 

99,436

 

Total cost of revenue

 

 

1,025,419

 

 

 

(14,760

)

 

 

1,010,659

 

    Gross profit

 

 

724,543

 

 

 

(74,506

)

 

 

650,037

 

Selling, general and administrative expenses

 

 

450,967

 

 

 

(11,924

)

 

 

439,043

 

Research and development

 

 

268,409

 

 

 

(4,446

)

 

 

263,963

 

Asset impairment charges

 

 

58,166

 

 

 

0

 

 

 

58,166

 

Goodwill impairment charge

 

 

13,466

 

 

 

0

 

 

 

13,466

 

Amortization of intangible and acquisition-related assets

 

 

26,587

 

 

 

0

 

 

 

26,587

 

Loss from operations

 

 

(93,052

)

 

 

(58,136

)

 

 

(151,188

)

Interest expense

 

 

(50,914

)

 

 

0

 

 

 

(50,914

)

Other income, net

 

 

74

 

 

 

0

 

 

 

74

 

Gain on sale of businesses, net

 

 

172,258

 

 

 

0

 

 

 

172,258

 

Impairment of long-term investments

 

 

(15,487

)

 

 

0

 

 

 

(15,487

)

Equity in net income of unconsolidated investments

 

 

259

 

 

 

0

 

 

 

259

 

Income from continuing operations before income taxes

 

 

13,138

 

 

 

(58,136

)

 

 

(44,998

)

Income tax provision

 

 

(469

)

 

 

15,115

 

 

 

14,646

 

Income from continuing operations, net of tax

 

 

12,669

 

 

 

(43,021

)

 

 

(30,352

)

Loss from discontinued operations

 

 

(72,836

)

 

 

0

 

 

 

(72,836

)

Gain on sale of Netsmart

 

 

500,471

 

 

 

0

 

 

 

500,471

 

Income tax effect on discontinued operations

 

 

(32,497

)

 

 

0

 

 

 

(32,497

)

Income from discontinued operations, net of tax

 

 

395,138

 

 

 

0

 

 

 

395,138

 

Net income

 

 

407,807

 

 

 

(43,021

)

 

 

364,786

 

Net loss attributable to non-controlling interests

 

 

4,527

 

 

 

0

 

 

 

4,527

 

Accretion of redemption preference on redeemable convertible

   non-controlling interest - discontinued operations

 

 

(48,594

)

 

 

0

 

 

 

(48,594

)

Net income attributable to Allscripts Healthcare

   Solutions, Inc. stockholders

 

$

363,740

 

 

$

(43,021

)

 

$

320,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.10

 

 

$

(0.25

)

 

$

(0.15

)

Discontinued operations

 

 

1.97

 

 

 

0.00

 

 

 

1.97

 

Net income attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share

 

$

2.07

 

 

$

(0.25

)

 

$

1.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Diluted

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.10

 

 

$

(0.20

)

 

$

(0.10

)

Discontinued operations

 

 

1.94

 

 

 

0.00

 

 

 

1.94

 

Net loss attributable to Allscripts Healthcare

   Solutions, Inc. stockholders per share

 

$

2.04

 

 

$

(0.20

)

 

$

1.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

176,038

 

 

 

 

 

 

 

176,038

 

Diluted weighted average shares outstanding

 

 

178,529

 

 

 

 

 

 

 

178,529

 

 



ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2017

 

(In thousands, except per share amounts)

 

Allscripts Historical (B)

 

 

CarePort Historical

 

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

$

958,187

 

 

$

(84,694

)

 

$

873,493

 

Client services

 

 

539,521

 

 

 

(8,410

)

 

 

531,111

 

Total revenue

 

 

1,497,708

 

 

 

(93,104

)

 

 

1,404,604

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Software delivery, support and maintenance

 

 

295,593

 

 

 

(6,012

)

 

 

289,581

 

Client services

 

 

484,591

 

 

 

(4,765

)

 

 

479,826

 

Amortization of software development and acquisition-related assets

 

 

84,725

 

 

 

(3,532

)

 

 

81,193

 

Total cost of revenue

 

 

864,909

 

 

 

(14,309

)

 

 

850,600

 

    Gross profit

 

 

632,799

 

 

 

(78,795

)

 

 

554,004

 

Selling, general and administrative expenses

 

 

400,688

 

 

 

(5,940

)

 

 

394,748

 

Research and development

 

 

202,282

 

 

 

(3,055

)

 

 

199,227

 

Amortization of intangible and acquisition-related assets

 

 

17,345

 

 

 

0

 

 

 

17,345

 

Income from operations

 

 

12,484

 

 

 

(69,800

)

 

 

(57,316

)

Interest expense

 

 

(37,540

)

 

 

0

 

 

 

(37,540

)

Other income, net

 

 

(512

)

 

 

0

 

 

 

(512

)

Impairment of and losses on long-term investments

 

 

(165,290

)