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): November 3, 2022

________________________

 
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)

Indicated 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 2.02          Results of Operations and Financial Condition.

On November 3, 2022, Allscripts Healthcare Solutions, Inc., a Delaware corporation (the “Company”) issued a press release regarding the Company’s financial results for the three and nine months ended September 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1.
 
The information furnished pursuant to this Item shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01          Financial Statements and Exhibits.
 
(d) Exhibits.

Exhibit Number
Exhibit Description
 
 
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: November 3, 2022
By:
/s/ Leah S. Jones
 
   
Leah S. Jones
 
   
Chief Financial Officer
 

Exhibit 99.1

Allscripts announces third quarter of 2022 results

  • Third quarter consolidated revenue of $152 million
  • Third quarter consolidated operating profit up over 30% year-over-year
  • Generated $42 million of cash flow from continuing operations in the quarter

CHICAGO--(BUSINESS WIRE)--November 3, 2022--Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) (Allscripts) announced its financial results for the three and nine months ended September 30, 2022.

Third quarter 2022 Veradigm revenue was $145 million compared with $137 million in the third quarter of 2021. On a consolidated Allscripts basis third quarter 2022 revenue was $152 million compared with $145 million in the third quarter of 2021.

On a GAAP basis, Veradigm income from operations was $28 million in the third quarter of 2022 compared with $17 million in the third quarter of 2021. Veradigm Non-GAAP income from operations in the third quarter of 2022 was $34 million compared with $24 million in the third quarter of 2021. On a consolidated basis in the third quarter of 2022, GAAP income from operations was $25 million compared with income from operations in the third quarter of 2021 of $18 million. Non-GAAP income from operations in the third quarter of 2022 was $34 million compared with $26 million in the third quarter of 2021.

Veradigm Adjusted EBITDA totaled $44 million in the third quarter of 2022 compared with $35 million in the third quarter of 2021. On a consolidated basis Allscripts Adjusted EBITDA totaled $43 million in the third quarter of 2022 compared with $36 million in the third quarter of 2021.

Consolidated GAAP net income in the third quarter of 2022 totaled $15 million compared with income of $16 million in the third quarter of 2021. Non-GAAP net income in the third quarter of 2022 was $26 million compared with $27 million in the third quarter of 2021. Net income in 2021 benefited from a $12 million pretax gain related to the sale of our 2bPrecise business as well as two of our non-controlling investments.

Consolidated GAAP diluted earnings per share in the third quarter of 2022 and 2021 was $0.12. Non-GAAP diluted earnings per share in the third quarter of 2022 were $0.23 compared with $0.21 in the third quarter of 2021.

Stock repurchases totaled $34 million in the third quarter of 2022.

“Our unique business continued to drive unique results as we once again reported strong year-over-year growth in revenue, gross profit, Adjusted EBITDA, and free cash flow. These results come from our team executing on our goal to drive better outcomes for patients by delivering insights and efficiencies for our customers,” said Rick Poulton, Allscripts Chief Executive Officer.

2022 Financial Outlook(1)

Allscripts is affirming its prior annual outlook and currently expects to achieve:

  • Veradigm revenue growth year-over-year between 6% to 7%
  • Veradigm Adjusted EBITDA growth year-over-year between 10% to 15%
  • Free cash flow from continuing operations between $110 million to $120 million.

Conference Call

Allscripts will conduct a conference call today, Thursday, November 3, 2022, at 4:30 PM Eastern Time to discuss its earnings release and other information. Participants may access the conference call via webcast at http://investor.allscripts.com. Participants also may access the conference call by dialing +1 (877) 269-7756 or +1 (210) 689-7817 (international) and requesting Conference ID # 13733727.

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. Allscripts does not provide guidance for the various reconciling items since certain items that impact GAAP operating income and operating cash flow such as depreciation and amortization expense, and transaction and other costs, any of which may be significant, are outside of its control and/or cannot be reasonably predicted. Please see the “Explanation of Non-GAAP Financial Measures” at the end of this press release for detailed information on calculating non-GAAP measures. For a reconciliation of other non-GAAP financial measures, see the non-GAAP financial reconciliation tables in this release (Tables 4 through 10).

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 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 to make better decisions and deliver better care for healthier populations. To learn more, visit www.allscripts.com, LinkedIn, and It Takes A Community: The Allscripts Blog.

© 2022 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.


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, our profitability initiatives, our strategic priorities and our client outcomes. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” “look forward,” “pipeline,” “aim” and similar terms. Actual results could differ significantly from those set forth in the forward-looking statements and reported results should not be considered an indication of future performance or events.

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 use of proceeds from the disposition of our Hospitals and Large Physician Practices Business; our ability to achieve the margin targets associated with our profitability initiatives within the contemplated time periods, if at all; the continued impact of the COVID-19 pandemic, including 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 U.S. Department of Justice (the “DOJ”); the costs and burdens of compliance by Practice Fusion with the terms of its settlement agreements with the DOJ; additional investigations and proceedings from governmental entities or third parties other than the DOJ related to the same or similar conduct underlying the DOJ’s investigations into Practice Fusion’s business practices; our ability to recover from third parties (including insurers) any amounts paid in connection with Practice Fusion’s settlement agreements with the DOJ and related inquiries; the expected financial results of businesses acquired by us; the successful integration of businesses acquired by us; the anticipated and unanticipated expenses and liabilities related to businesses acquired by us, including the civil investigation by the U.S. Attorney’s Office involving our Enterprise Information Solutions business; other risks associated with investments and acquisitions; risks associated with disposition of the Hospitals and Large Physicians Practices Business, our failure to compete successfully; consolidation in our industry; current and future laws, regulations and industry initiatives; increased government involvement in our industry; the failure of markets in which we operate to develop as quickly as expected; our or our customers’ failure to see the benefits of government programs; changes in interoperability or other regulatory standards; our ability to maintain and expand our business with existing clients or effectively transition clients to newer products; the effects of the realignment of our sales, services and support organizations; market acceptance of our products and services; the unpredictability of the sales and implementation cycles for our products and services; our ability to manage future growth; our ability to introduce new products and services; our ability to establish and maintain strategic relationships; risks associated with investments and acquisitions; the performance of our products; our ability to protect our intellectual property rights; the outcome of legal proceedings involving us; our ability to hire, retain and motivate key personnel; performance by our content and service providers; liability for use of content; price reductions; our ability to license and integrate third-party technologies; risks related to global operations; variability of our quarterly operating results; risks related to our outstanding indebtedness; changes in tax rates or laws; business disruptions; our ability to maintain proper and effective internal controls; asset and long-term investment impairment charges; and inflationary pressures and macroeconomic volatility. Additional information about these and other risks, uncertainties, and factors affecting our business is contained in our filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Qs. We do not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in our business, financial condition or operating results over time.


Table 1

Allscripts Healthcare Solutions, Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

 

 

 

 

 

 

 

September 30,

 

December 31,

 

2022

 

2021

ASSETS



Current assets:



Cash and cash equivalents

$492.6


$132.5

Restricted cash

1.3


1.3

Accounts receivable, net

169.0


171.6

Contract assets

65.5


63.5

Prepaid expenses and other current assets

74.4


60.5

Current assets attributable to discontinued operations

8.0


331.9

Total current assets

$810.8


$761.3

Fixed assets, net

11.7


9.8

Software development costs, net

78.1


74.7

Intangible assets, net

145.3


149.7

Goodwill

523.9


506.6

Contract assets - long-term

28.0


28.2

Right-of-use assets - operating leases

14.5


18.3

Other assets

78.4


83.4

Long-term assets attributable to discontinued operations

$0.0


$793.2

Total assets

$1,690.7


$2,425.2





 
LIABILITIES AND STOCKHOLDERS’ EQUITY



Current liabilities:



Accounts payable

$12.6


$5.3

Accrued expenses

82.9


54.5

Accrued compensation and benefits

33.9


31.1

Deferred revenue

98.9


120.7

Current operating lease liabilities

6.2


6.1

Current liabilities attributable to discontinued operations

18.6


329.4

Total current liabilities

253.1


547.1

Long-term debt

200.3


350.1

Deferred revenue

3.1


1.8

Deferred taxes, net

8.1


16.6

Long-term operating lease liabilities

12.3


16.8

Other liabilities

36.8


33.8

Long-term liabilities attributable to discontinued operations

0.0


50.9

Total liabilities

$513.7


$1,017.1

Total stockholders’ equity

$1,177.0


$1,408.1

Total liabilities and stockholders’ equity

$1,690.7


$2,425.2





 

Table 2
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)








 


Three Months Ended

September 30,

 

Nine Months Ended

September 30,



2022

 

2021

 

2022

 

2021

Revenue:







Provider

$122.8

 


$118.2

 


$360.4

 


$345.3

 

Payer & Life Sciences

29.1

 


26.5

 


85.1

 


74.3

 

Total Revenue

151.9

 


144.7

 


445.5

 


419.6

 

Cost of revenue:







Provider

57.3

 


61.7

 


172.6

 


180.7

 

Payer & Life Sciences

11.2

 


13.4

 


36.5

 


38.0

 

Total cost of revenue

68.5

 


75.1

 


209.1

 


218.7

 

Gross profit

83.4

 


69.6

 


236.4

 


200.9

 

Selling, general and administrative expenses

32.5

 


27.4

 


133.7

 


87.7

 

Research and development

23.6

 


21.0

 


69.8

 


62.5

 

Asset impairment charges

0.0

 


0.4

 


0.0

 


0.6

 

Amortization of intangible and acquisition-related assets

2.2

 


2.4

 


6.6

 


7.2

 

Income (loss) from operations

25.1

 


18.4

 


26.3

 


42.9

 

Interest income (expense), net (a)

0.4

 


(3.6

)


(3.5

)


(9.6

)

Other

(0.6

)


12.6

 


0.8

 


29.8

 

Income (loss) before income taxes

24.9

 


27.4

 


23.6

 


63.1

 

Income tax (provision) benefit

(13.9

)


(7.2

)


9.1

 


(12.5

)

Income (loss) from continuing operations, net of tax

11.0

 


20.2

 


32.7

 


50.6

 

Income (loss) from discontinued operations

(0.3

)


(6.2

)


(9.2

)


(6.5

)

Gain (loss) on sale of discontinued operations

5.1

 


0.0

 


7.9

 


0.6

 

Income tax (provision) from discontinued operations

(1.2

)


2.1

 


(58.0

)


2.4

 

Income (loss) from discontinued operations, net of tax

3.6

 


(4.1

)


(59.3

)


(3.5

)

Net Income (loss)

$14.6

 


$16.1

 


($26.6

)


$47.1

 









 
Diluted earnings per Common Share:







Income (loss) from continuing operations, net of tax

$11.0

 


$20.2

 


$32.7

 


$50.6

 

Plus: Interest expense, net of tax1

$0.5

 


$0.0

 


$1.5

 


$0.0

 

Income (loss) from continuing operations2

11.5

 


20.2

 


34.2

 


50.6

 

Income (loss) from discontinued operations, net of tax

3.6

 


(4.1

)


(59.3

)


(3.5

)

Net Income (loss)2

$15.1

 


$16.1

 


($25.1

)


$47.1

 









 
Income (loss) from continuing operations per share - basic

$0.10

 


$0.16

 


$0.29

 


$0.38

 

Income (loss) from discontinued operations per share - basic

$0.03

 


($0.03

)


($0.52

)


($0.03

)

Income (loss) per share - basic

$0.13

 


$0.13

 


($0.23

)


$0.35

 

Income (loss) from continuing operations per share - diluted2

$0.09

 


$0.15

 


$0.25

 


$0.36

 

Income (loss) from discontinued operations per share - diluted

$0.03

 


($0.03

)


($0.44

)


($0.03

)

Income (loss) per share - diluted2

$0.12

 


$0.12

 


($0.19

)


$0.33

 









 
Weighted average common shares outstanding:







Basic

110.2

 


123.9

 


113.4

 


133.5

 

Diluted

128.9

 


131.4

 


134.3

 


142.1

 









 


Three Months Ended

September 30,

 

Nine Months Ended

September 30,



2022

 

2021

 

2022

 

2021









 
(a) Interest expense, net







Interest expense

(0.9

)


(1.8

)


(3.5

)


(4.1

)

Interest income

1.7

 


0.1

 


1.8

 


0.2

 

Non-cash charges to interest expense

(0.4

)


(1.9

)


(1.8

)


(5.7

)

Interest expense, net

$0.4

 


($3.6

)


($3.5

)


($9.6

)









 
1Associated with 0.875% Convertible Senior Notes
2Net of tax after the effect of assumed conversions of convertible notes

Table 3
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)








 


Three Months Ended
September 30,

 

Nine Months Ended
September 30,



 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:







Net income (loss)

$

14.6

 


$

16.1

 


($

26.6

)


$

47.1

 

Less: Income(loss) from discontinued operations

 

3.6

 


 

(4.1

)


 

(59.3

)


 

(3.5

)

Income (loss) from continuing operations

$

11.0

 


$

20.2

 


$

32.7

 


$

50.6

 

Non-cash adjustments to net income (loss):







Depreciation and amortization

 

13.8

 


 

16.1

 


 

42.3

 


 

49.0

 

Non-cash lease expense, net

 

(0.1

)


 

(3.2

)


 

(5.3

)


 

(8.8

)

Stock-based compensation expense

 

4.6

 


 

4.0

 


 

19.9

 


 

8.8

 

Deferred Taxes

 

(2.5

)


 

(1.3

)


 

(3.0

)


 

4.5

 

Impairment of assets and long-term investments

 

0.0

 


 

0.3

 


 

0.0

 


 

0.5

 

Gain on sale of businesses, net

 

0.0

 


 

(8.4

)


 

0.0

 


 

(8.4

)

Other (income) loss, net

 

0.7

 


 

(4.1

)


 

0.0

 


 

(4.0

)

Total non-cash adjustments to net income (loss)

 

16.5

 


 

3.4

 


 

53.9

 


 

41.6

 

Cash impact of changes in operating assets and liabilities:







Assets

 

63.0

 


 

(30.0

)


 

102.0

 


 

(22.7

)

Liabilities

 

(48.1

)


 

16.7

 


 

(69.6

)


 

29.0

 

Total cash impact of changes on operating assets and liabilities

 

14.9

 


 

(13.3

)


 

32.4

 


 

6.3

 

Net cash provided by (used in) operating activities - continuing operations

 

42.4

 


 

10.3

 


 

119.0

 


 

98.5

 

Net cash provided by (used in) operating activities - discontinued operations

 

(14.2

)


 

45.6

 


 

(23.2

)


 

(239.0

)

Net cash provided by (used in) operating activities

 

28.2

 


 

55.9

 


 

95.8

 


 

(140.5

)

Cash flows from investing activities:







Capital expenditures

 

(0.3

)


 

(0.9

)


 

(1.9

)


 

(1.1

)

Capitalized software

 

(7.9

)


 

(9.9

)


 

(26.2

)


 

(26.6

)

Cash paid for business acquisitions, net of cash acquired

 

0.0

 


 

0.0

 


 

(24.1

)


 

0.0

 

Sale of businesses, other investments and distributions received1

 

0.0

 


 

1.2

 


 

672.5

 


 

5.4

 

Purchases of equity securities, other investments and intangible assets, net

 

(1.0

)


 

0.0

 


 

(1.3

)


 

(0.2

)

Cash provided by (used in) investing activities - continuing operations

 

(9.2

)


 

(9.6

)


 

619.0

 


 

(22.5

)

Cash provided by (used in) investing activities - discontinued operations

 

(0.1

)


 

(10.8

)


 

(15.3

)


 

(32.4

)

Net cash provided by (used in) investing activities

 

(9.3

)


 

(20.4

)


 

603.7

 


 

(54.9

)

Cash flows from financing activities:







Taxes paid related to net share settlement of equity awards

 

(4.8

)


 

(0.1

)


 

(32.7

)


 

(12.7

)

Credit facility payments

 

0.0

 


 

(50.0

)


 

(200.0

)


 

(50.0

)

Credit facility borrowings, net of issuance costs

 

0.0

 


 

0.0

 


 

22.3

 


 

250.0

 

Repurchase of common stock

 

(33.6

)


 

0.1

 


 

(177.0

)


 

(308.9

)

Intercompany to/from parent/subsidiaries

 

0.0

 


 

42.3

 


 

11.7

 


 

47.3

 

Payment of acquisition and other financing obligations

 

(0.1

)


 

0.0

 


 

0.0

 


 

(2.4

)

Net cash provided by (used in) financing activities - continuing operations

 

(38.5

)


 

(7.7

)


 

(375.7

)


 

(76.7

)

Net cash provided by (used in) financing activities - discontinued operations

 

0.0

 


 

(42.3

)


 

(11.7

)


 

(48.6

)

Net cash provided by (used in) financing activities

 

(38.5

)


 

(50.0

)


 

(387.4

)


 

(125.3

)

Effect of exchange rate changes on cash and cash equivalents

 

0.0

 


 

(0.6

)


 

(0.7

)


 

(0.5

)

Net increase (decrease) in cash and cash equivalents

 

(19.6

)


 

(15.1

)


 

311.4

 


 

(321.2

)

Cash, cash equivalents and restricted cash, beginning of period

 

521.5

 


 

231.4

 


 

190.5

 


 

537.5

 

Cash, cash equivalents and restricted cash, end of period

$

501.9

 


$

216.3

 


$

501.9

 


$

216.3

 

Less: Cash and cash equivalents attributable to discontinued operations

($

8.0

)


($

72.7

)


($

8.0

)


($

72.7

)

Cash, cash equivalents and restricted cash, end of period, continuing operations

$

493.9

 


$

143.6

 


$

493.9

 


$

143.6

 









 
1Other investments are net of cash divested

Table 4

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions, except per share amounts and percentages)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Gross profit, as reported

$83.4

 


$69.6

 


$236.4

 


$200.9

 

Acquisition-related amortization

1.8

 


1.7

 


5.1

 


5.3

 

Stock-based compensation expense

0.3

 


0.3

 


0.9

 


0.9

 

Total non-GAAP gross profit

$85.5

 


$71.6

 


$242.4

 


$207.1

 









 
Income (loss) from operations, as reported

$25.1

 


$18.4

 


$26.3

 


$42.9

 

Acquisition-related amortization

3.9

 


4.1

 


11.7

 


12.5

 

Stock-based compensation expense

4.7

 


3.1

 


20.8

 


10.5

 

Transaction and other

0.0

 


0.0

 


27.9

 


0.0

 

Total non-GAAP income from operations

$33.7

 


$25.6

 


$86.7

 


$65.9

 









 
Net Income (loss)1

$15.1

 


$16.1

 


($25.1

)


$47.1

 

Loss (income) from discontinued operations

0.3

 


6.2

 


9.2

 


6.5

 

(Gain) on sale of business, net from discontinued operations

(5.1

)


0.0

 


(7.9

)


(0.6

)

Income tax provision from discontinued operations

1.2

 


(2.1

)


58.0

 


(2.4

)

Income (loss) from continuing operations1

$11.5

 


$20.2

 


$34.2

 


$50.6

 

Less: Interest expense, net of tax2

(0.5

)


0.0

 


(1.5

)


0.0

 

Income (loss) from continuing operations, net of tax

$11.0

 


$20.2

 


$32.7

 


$50.6

 

Acquisition-related amortization

3.9

 


4.1

 


11.7

 


12.5

 

Stock-based compensation expense

4.7

 


3.2

 


20.8

 


10.5

 

Transaction and other

0.0

 


0.0

 


28.0

 


0.2

 

Non-cash charges to interest expense and other

0.0

 


1.3

 


0.0

 


(1.1

)

Tax rate alignment

5.9

 


(1.5

)


(29.4

)


(8.0

)

Non-GAAP net income

$25.5

 


$27.4

 


$63.8

 


$64.7

 









 
Non-GAAP effective tax rate

24

%


24

%


24

%


24

%









 
Weighted shares outstanding - basic

110.2

 


123.9

 


113.4

 


133.5

 

Weighted shares outstanding - diluted

128.9

 


131.4

 


134.3

 


142.1

 

Less the net effect of convertible notes and note hedges

(15.6

)


(2.8

)


(15.0

)


(2.9

)

Non-GAAP Weighted shares outstanding - diluted

113.3

 


128.6

 


119.3

 


139.2

 









 
Net Income (loss) from continuing operations per share - diluted1

$0.12

 


$0.12

 


($0.19

)


$0.33

 

Non-GAAP Net Income (loss) per share - diluted

$0.23

 


$0.21

 


$0.53

 


$0.46

 









 
1Net of tax after the effect of assumed conversions of convertible notes
2Associated with 0.875% Convertible Senior Notes

Table 5

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information - Adjusted EBITDA

(In millions, except percentages)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Income (loss) from operations, as reported

$25.1

 


$18.4

 


$26.3

 


$42.9

 

Plus:







Depreciation and amortization

13.4

 


14.3

 


40.5

 


43.6

 

Asset impairment charges

0.0

 


0.4

 


0.0

 


0.6

 

Stock-based compensation expense

4.7

 


3.1

 


20.8

 


10.5

 

Transaction and other

0.0

 


0.0

 


27.9

 


0.0

 

Adjusted EBITDA

$43.2

 


$36.2

 


$115.5

 


$97.6

 









 
Adjusted EBITDA margin (a)

28.4

%


25.0

%


25.9

%


23.3

%









 
(a) Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.

Table 6
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information - Free Cash Flow
(In millions)
(Unaudited)








 


Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net cash provided by (used in) operating activities - continuing operations

$

42.4

 


$

10.3

 


$

119.0

 


$

98.5

 

Cash flows from investing activities:







Capital expenditures

 

(0.3

)


 

(0.9

)


 

(1.9

)


 

(1.1

)

Capitalized software

 

(7.9

)


 

(9.9

)


 

(26.2

)


 

(26.6

)

Free cash flow

$

34.2

 


($

0.5

)


$

90.9

 


$

70.8

 









 

Table 7
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information from Continuing Operations - Segment Details
(In millions)
(unaudited)










 

2021

 

2022


Q1

Q2

Q3

Q4

Total

 

Q1

Q2

Q3

Total


 

 

 

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

126.4

133.4

137.2

155.2

552.2

 

136.3

144.6

145.4

426.3

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

77.4

80.8

229.3

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

53.5%

55.6%

53.8%

Income from operations

19.0

25.2

24.2

42.4

110.8

 

25.5

30.3

34.3

90.1

Adjusted EBITDA

28.4

35.3

34.5

51.9

150.1

 

35.2

39.8

43.7

118.7

Adjusted EBITDA margin

22.5%

26.5%

25.1%

33.4%

27.2%

 

25.8%

27.5%

30.1%

27.8%

Unallocated, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

7.3

7.8

7.5

6.0

28.6

 

6.4

6.3

6.5

19.2

Gross Profit

4.3

4.8

3.9

3.3

16.3

 

4.3

4.1

4.7

13.1

Gross margin

58.9%

61.5%

52.0%

55.0%

57.0%

 

67.2%

65.1%

72.3%

68.2%

Income from operations

(3.1)

(0.8)

1.4

6.3

3.8

 

(1.6)

(1.2)

(0.6)

(3.4)

Adjusted EBITDA

(2.2)

0.0

1.7

6.3

5.8

 

(1.5)

(1.2)

(0.5)

(3.2)

Total Allscripts Consolidated, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

133.7

141.2

144.7

161.2

580.8

 

142.7

150.9

151.9

445.5

Gross profit

65.0

70.5

71.6

90.0

297.1

 

75.4

81.5

85.5

242.4

Gross margin

48.6%

49.9%

49.5%

55.8%

51.2%

 

52.8%

54.0%

56.3%

54.4%

Income from operations

15.9

24.4

25.6

48.7

114.6

 

23.9

29.1

33.7

86.7

Adjusted EBITDA

26.2

35.3

36.2

58.2

155.9

 

33.7

38.6

43.2

115.5

Adjusted EBITDA margin

19.6%

25.0%

25.0%

36.1%

26.8%

 

23.6%

25.6%

28.4%

25.9%


 

 

 

 

 

 

 

 

 

 


2021

 

2022


Q1

Q2

Q3

Q4

Total

 

Q1

Q2

Q3

Total

Allscripts Consolidated Bookings, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Total contract value

70.4

85.4

61.6

83.5

300.9

 

64.8

106.8

58.0

229.6

First year contract value

33.8

38.3

31.9

41.9

145.9

 

28.9

48.7

32.0

109.6


Table 8
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information Reconciliation - Segment Details
(In millions)
(unaudited)










 

2021

 

2022


Q1

Q2

Q3

Q4

Total

 

Q1

Q2

Q3

Total

Total Veradigm

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

$126.4

$133.4

$137.2

$155.2

$552.2

 

$136.3

$144.6

$145.4

$426.3


 

 

 

 

 

 

 

 

 

 

Gross profit, GAAP

$58.6

$63.6

$65.7

$84.6

$272.5

 

$69.2

$75.4

$78.8

$223.4

Acquisition-related amortization

1.8

1.8

1.7

1.8

7.1

 

1.6

1.7

1.8

5.1

Stock-based compensation expense

0.3

0.3

0.3

0.3

1.2

 

0.3

0.3

0.2

0.8

Non-GAAP Gross profit

$60.7

$65.7

$67.7

$86.7

$280.8

 

$71.1

$77.4

$80.8

$229.3


 

 

 

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

$11.4

$17.9

$16.9

$35.2

$81.4

 

$18.1

$24.0

$27.7

$69.8

Acquisition-related amortization

4.2

4.2

4.1

3.9

16.4

 

3.8

4.0

3.9

11.7

Stock-based compensation expense

3.4

3.1

3.2

3.3

13.0

 

3.6

2.3

2.7

8.6

Transaction and other

0.0

0.0

0.0

0.0

0.0

 

0.0

0.0

0.0

0.0

Non-GAAP Income (loss) from operations

$19.0

$25.2

$24.2

$42.4

$110.8

 

$25.5

$30.3

$34.3

$90.1


 

 

 

 

 

 

 

 

 

 

Asset Impairment Charges

0.0

0.2

0.4

0.0

0.6

 

0.0

0.0

0.0

0.0

Depreciation and amortization

9.4

9.9

9.9

9.5

38.7

 

9.7

9.5

9.4

28.6

Adjusted EBITDA

$28.4

$35.3

$34.5

$51.9

$150.1

 

$35.2

$39.8

$43.7

$118.7


 

 

 

 

 

 

 

 

 

 

Unallocated

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

$7.3

$7.8

$7.5

$6.0

$28.6

 

$6.4

$6.3

$6.5

$19.2


 

 

 

 

 

 

 

 

 

 

Gross Profit, GAAP

$4.3

$4.8

$3.9

$3.3

$16.3

 

$4.3

$4.1

$4.6

$13.0

Stock-based compensation expense

0.0

0.0

0.0

0.0

0.0

 

0.0

0.0

0.1

0.1

Non-GAAP Gross Profit

$4.3

$4.8

$3.9

$3.3

$16.3

 

$4.3

$4.1

$4.7

$13.1


 

 

 

 

 

 

 

 

 

 

Income (loss) from operations, GAAP

($3.7)

($1.1)

$1.5

$6.4

$2.9

 

($11.5)

($29.4)

($2.6)

($43.5)

Stock-based compensation expense

0.6

0.3

(0.1)

(0.1)

0.9

 

3.3

6.9

2.0

12.2

Transaction and other

0.0

0.0

0.0

0.0

0.0

 

6.6

21.3

0.0

27.9

Non-GAAP Income (loss) from operations

($3.1)

($0.8)

$1.4

$6.3

$3.8

 

($1.6)

($1.2)

($0.6)

($3.4)


 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

0.9

0.8

0.3

0.0

2.0

 

0.1

0.0

0.1

0.2

Adjusted EBITDA

($2.2)

$0.0

$1.7

$6.3

$5.8

 

($1.5)

($1.2)

($0.5)

($3.2)


Table 9
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information from Continuing Operations - Revenue and Gross Profit Details
(In millions)
(unaudited)


 


2021

 

2022



Q1

Q2

Q3

Q4

Total

 

Q1

Q2

Q3

Total

Veradigm Provider, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

103.9

108.1

110.7

126.3

449.0

 

112.3

112.6

116.3

341.2

Gross profit

49.8

52.4

54.2

70.6

227.0

 

58.8

58.0

62.3

179.1

Gross margin

47.9%

48.5%

49.0%

55.9%

50.6%

 

52.4%

51.5%

53.6%

52.5%



 

 

 

 

 

 

 

 

 

 

Veradigm Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

22.5

25.3

26.5

28.9

103.2

 

24.0

32.0

29.1

85.1

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

19.4

18.5

50.2

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

60.6%

63.6%

59.0%



 

 

 

 

 

 

 

 

 

 

Total Veradigm, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

126.4

133.4

137.2

155.2

552.2

 

136.3

144.6

145.4

426.3

Gross profit

60.7

65.7

67.7

86.7

280.8

 

71.1

77.4

80.8

229.3

Gross margin

48.0%

49.3%

49.3%

55.9%

50.9%

 

52.2%

53.5%

55.6%

53.8%



 

 

 

 

 

 

 

 

 

 

Allscripts Consolidated Provider, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

111.2

115.9

118.2

132.3

477.6

 

118.7

118.9

122.8

360.4

Gross profit

54.1

57.2

58.1

73.9

243.3

 

63.1

62.1

67.0

192.2

Gross margin

48.7%

49.4%

49.2%

55.9%

50.9%

 

53.2%

52.2%

54.6%

53.3%



 

 

 

 

 

 

 

 

 

 

Allscripts Consolidated Payer & Life Sciences, Non-GAAP

 

 

 

 

 

 

 

 

 

 

Revenue, GAAP

22.5

25.3

26.5

28.9

103.2

 

24.0

32.0

29.1

85.1

Gross Profit

10.9

13.3

13.5

16.1

53.8

 

12.3

19.4

18.5

50.2

Gross Margin

48.4%

52.6%

50.9%

55.7%

52.1%

 

51.3%

60.6%

63.6%

59.0%