Company provides initial outlook for 2017 of
double-digit non-GAAP revenue and earnings growth; Management to
present at 35th Annual J.P. Morgan Healthcare Conference;Announces
fourth quarter earnings call date and New York Investor Day
Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) today announced
preliminary financial results for the fourth quarter
ended Dec. 31, 2016.
Preliminary Fourth Quarter 2016 Financial Results and
2017 Financial Guidance
The company anticipates consolidated
bookings(1) for the fourth quarter of 2016 to exceed $400
million, a fourth-quarter record. This result implies annual
bookings growth of over 17 percent.
Allscripts also affirmed its financial guidance
for the fourth quarter of 2016, originally provided on November 3,
2016. Additionally, the company provided initial financial guidance
for 2017 consisting of non-GAAP revenue of between $1.71 to $1.74
billion; consolidated Adjusted EBITDA of $345 to $365 million; and
Non-GAAP EPS growth of 10 to 15 percent(2).
"I am proud of the strong financial and
operational results we achieved in 2016,” said Paul M. Black,
Allscripts Chief Executive Officer. “Our investments in our
solutions continue to increase our competitiveness, reflected in
signed agreements which added the largest number of new Sunrise
facilities in our history. Our initial outlook for 2017 illustrates
confidence this growth momentum will continue this year across
Allscripts comprehensive offerings to payers and providers
globally."
The preliminary financial information presented
in this press release is based on expectations and may be adjusted
as a result of, among other things, completion of customary
quarterly review and audit procedures.
Period-over-period comparability is affected by
the inclusion of Netsmart in consolidated results beginning April
19, 2016.
For the purpose of providing financial guidance,
the company does not reconcile non-GAAP revenue, non-GAAP earnings,
Adjusted net EBITDA or non-GAAP earnings per share guidance to the
corresponding GAAP financial measures. Allscripts does not provide
guidance for the various reconciling items since certain items that
impact GAAP revenue and net income are either outside of its
control and/or cannot be reasonably predicted.
Management to Present at 35th Annual
J.P. Morgan Healthcare Conference
Mr. Black, Melinda Whittington, Allscripts Chief
Financial Officer, and Rick Poulton, Allscripts President, will
conduct a presentation for investors tomorrow, Jan. 10, 2017, at
2:30 p.m. PT during the 35th Annual J.P. Morgan Healthcare
Conference in San Francisco. A webcast link to this event and a
presentation will be available at Allscripts investor relations
website.
Fourth Quarter and Full-Year 2016
Financial Results Call
Allscripts will report its financial results for
the three months and year ended Dec. 31, 2016, after the close of
regular stock market hours on Thursday, Feb. 16, 2017. The
announcement will be available at Allscripts investor relations
website. Allscripts management plans to host a conference call and
webcast to discuss the company's earnings at 4:30 p.m. ET that
day.
To listen to the conference call, participants
may log onto the Allscripts Investor Relations website.
Participants also may access the conference call by dialing (877)
269-7756 or 201-689-7817 (international) and requesting Conference
ID # 13652687.
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
or by calling (877) 660-6853 or (201) 612-7415, Conference ID #
13652687.
Upcoming Investor Event
Members of Allscripts management team will host
an Investor Day for the financial community, to be held Tuesday,
March 21, 2017, in New York City. The event is scheduled to
begin at approximately 8:00 a.m. ET and will conclude after
lunch. Additional details and invitations will be available
soon.
This event will also be live webcasted and
presentation materials will be available at Allscripts investor
relations website.
About AllscriptsAllscripts
(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, Twitter,
YouTube and It Takes A Community: The
Allscripts Blog.
© 2017 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.
Footnotes(1) Bookings
reflect the value of executed contracts for software, hardware,
other client services, remote hosting, outsourcing and
subscription-based services.
(2) Non-GAAP revenue consists of GAAP revenue
and adds back recognized deferred revenue from the Netsmart
transaction that is eliminated for GAAP purposes due to purchase
accounting adjustments.
Adjusted EBITDA is a non-GAAP measure and
consists of GAAP net income (loss) as reported and adjusts for:
acquisition-related deferred revenue adjustments; depreciation and
amortization; stock-based compensation expense; non-recurring
expenses and transaction-related costs; non-cash asset impairment
charges; interest expense and other, net; equity in net earnings of
unconsolidated investments; and tax provision (benefit).
Adjusted net EBITDA, net of non-controlling interest, is a non-GAAP
measure and consists of Adjusted EBITDA as described above, with an
adjustment to reduce Adjusted EBITDA for the percentage of
non-controlling interest in consolidated subsidiaries. For this
presentation, Netsmart preferred stock is treated as if it was
converted to common stock.
Non-GAAP net income consists of GAAP net
income/(loss) as reported, and adds back acquisition-related
deferred revenue adjustments, acquisition-related amortization,
stock-based compensation expense, non-recurring expenses and
transaction-related costs, non-cash charges to interest expense and
other, non-cash asset impairment charges, and equity in net
earnings of unconsolidated investments and the related tax effect
of the aforementioned adjustments. Non-GAAP net income also
includes a tax rate alignment adjustment. Non-GAAP earnings
per share consists of non-GAAP net income, as defined above,
divided by weighted shares outstanding – diluted in the applicable
period.
Management believes that these non-GAAP measures
provide useful supplemental information to management and investors
regarding the underlying performance of Allscripts business
operations. Acquisition accounting adjustments made in accordance
with GAAP can make it difficult to make meaningful comparisons of
the underlying operations of the business without considering the
non-GAAP adjustments provided and discussed herein. 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 net income and/or
Adjusted EBITDA to measure achievement under Allscripts stock and
cash incentive compensation plans. Note, however, that non-GAAP net
income and non-GAAP net income on a per share basis and Adjusted
EBITDA are performance measures only, and they do not provide any
measure of cash flow or liquidity. Non-GAAP financial measures are
not in accordance with, or an alternative for, measures of
financial performance prepared in accordance with GAAP and may be
different from non-GAAP measures used by other companies. Non-GAAP
measures have limitations in that they do not reflect all of the
amounts associated with Allscripts results of operations as
determined in accordance with GAAP.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
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,” and similar terms. Actual results could
differ from those set forth in the forward-looking statements, and
reported results should not be considered an indication of future
performance. Certain factors that could cause Allscripts actual
results to differ materially from those described in the
forward-looking statements include, but are not limited to: the
response of customers and competitors to the Netsmart joint
business entity; the expected financial contribution and results of
the Netsmart joint business entity, including consolidation for
financial reporting purposes; Allscripts failure to compete
successfully; consolidation in Allscripts industry; current and
future laws, regulations and industry initiatives; increased
government involvement in Allscripts industry; the failure of
markets in which Allscripts operates to develop as quickly as
expected; Allscripts or its customers’ failure to see the benefits
of government programs; changes in interoperability or other
regulatory standards; the effects of the realignment of Allscripts
sales, services and support organizations; market acceptance of
Allscripts products and services; the unpredictability of the sales
and implementation cycles for Allscripts products and services;
Allscripts ability to manage future growth; Allscripts ability to
introduce new products and services; Allscripts ability to
establish and maintain strategic relationships; risks related to
the acquisition of new companies or technologies; the performance
of Allscripts products; Allscripts ability to protect its
intellectual property rights; the outcome of legal proceedings
involving Allscripts; Allscripts ability to hire, retain and
motivate key personnel; performance by Allscripts content and
service providers; liability for use of content; security breaches;
price reductions; Allscripts ability to license and integrate third
party technologies; Allscripts ability to maintain or expand its
business with existing customers; risks related to international
operations; changes in tax rates or laws; business disruptions;
Allscripts ability to maintain proper and effective internal
controls; and asset impairment charges. Additional information
about these and other risks, uncertainties and factors affecting
Allscripts business is contained in Allscripts filings with the
Securities and Exchange Commission, including under the caption
“Risk Factors” in the most recent Allscripts Annual Report on Form
10-K and subsequent Form 10-Qs. Allscripts does 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 its
business, financial condition or operating results over time.
For more information contact:
Investors:
Seth Frank
312-506-1213
seth.frank@allscripts.com
Media:
Concetta DiFranco
312-447-2466
concetta.difranco@allscripts.com
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