- First quarter 2020 bookings of $205 million, above high end
of outlook range
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX)
(Allscripts) announced its financial results for the three months
ended March 31, 2020.
Bookings(1) were $205 million in the first quarter of 2020. This
result compares with $286 million in the first quarter of 2019.
Contract revenue backlog totaled $4.5 billion as of March 31,
2020.
First quarter 2020 revenue was $417 million compared with $432
million in the first quarter of 2019.
On a GAAP basis in the first quarter of 2020 total operating
expenses were $166 million compared with $171 million in the first
quarter of 2019. Non-GAAP operating expenses in the first quarter
of 2020 and 2019 both totaled $145 million.
GAAP net loss in the first quarter of 2020 totaled $20 million
compared with net loss of $8 million in the first quarter of 2019.
Non-GAAP net income in the first quarter of 2020 totaled $15
million compared with $27 million in the first quarter of 2019.
GAAP loss per share in the first quarter of 2020 was $0.13
compared with loss per share of $0.04 in the first quarter of 2019.
Non-GAAP diluted earnings per share in the first quarter of 2020
were $0.09 compared with $0.16 in the first quarter of 2019.
“Our first quarter results show continued strength in new
bookings, which reflects the confidence our clients have in our
solutions,” commented Paul M. Black, Allscripts Chief Executive
Officer. “The COVID-19 pandemic has created challenges for our
clients and thus for our business. The pandemic accentuates the
importance of mission-critical EMR solutions, and the value of
actionable real time data and analytics to better care for a new
cohort of critically ill patients. I am extremely proud of the work
we are doing to provide excellent support for our clients and
implement new and innovative solutions, addressing this pandemic
around the globe. Looking ahead, we believe Allscripts will likely
be impacted as our clients focus on responding to the pandemic and
caring for their patients. However, we believe Allscripts’ agility
and prior strategic platform investments prepare us to handle the
challenges resulting from this global uncertainty. We fully intend
to align with existing and new clients to capitalize on
opportunities to deploy value-added solutions. Allscripts has
multiple competitive advantages, including a robust solutions
portfolio, a diversified global client base and high recurring
revenues, positioning us well as we chart the path back to a more
normalized operating environment.”
2020 Financial Outlook
Given the current uncertainty presented by the COVID-19
pandemic, Allscripts is withdrawing its prior financial outlook for
the full-year 2020.
Conference Call
Allscripts will conduct a conference call today, Thursday, May
7th, 2020, 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
(201) 689-7817 (international) and requesting Conference ID #
13701343.
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 +1 (877)
660-6853 or +1 (201) 612-7415 - Conference ID # 13701343.
Supplemental and non-GAAP financial information is also
available at http://investor.allscripts.com.
Footnotes
(1)
Bookings have been determined on a
continuing operations basis and reflect the value of executed
contracts for software, hardware, client services, private cloud
hosting services, outsourcing and other subscription-based
services.
NOTE: All percentage changes described within this press release
are calculated from full dollar amounts as illustrated in the
accompanying financial statements and Allscripts Supplemental
Financial Data Workbook, 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, Twitter, YouTube and It
Takes A Community: The Allscripts Blog.
© 2020 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 under “2020 Financial Outlook”. 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 significantly 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 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; the failure by Practice Fusion to comply with the
terms of its 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; the expected financial
results of businesses acquired by us; the successful integration of
businesses recently 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 EIS business; 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; 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; 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; the performance of our products; our ability to
protect its 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; our ability to
maintain or expand our business with existing customers; risks
related to international operations; changes in tax rates or laws;
business disruptions; our ability to maintain proper and effective
internal controls; and asset and long-term investment impairment
charges. 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 Allscripts
Annual Report on Form 10-K and subsequent Quarterly Reports on 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.
Table 1 Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets (In millions)
(Unaudited)
March 31,
December 31,
2020
2019
ASSETS Current assets: Cash and cash equivalents
$204.3
$129.6
Restricted cash
7.8
7.9
Accounts receivable, net
471.2
459.8
Contract assets
98.2
96.0
Prepaid expenses and other current assets
125.7
148.0
Total current assets
907.2
841.3
Fixed assets, net
81.8
88.3
Software development costs, net
250.4
243.9
Intangible assets, net
358.3
374.1
Goodwill
1,361.1
1,362.0
Deferred taxes, net
5.5
5.7
Contract assets - long-term
54.5
67.6
Right-of-use assets - operating leases
110.5
98.0
Other assets
123.6
124.8
Total assets
$3,252.9
$3,205.7
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable
$79.2
$104.0
Accrued expenses
217.3
270.7
Accrued compensation and benefits
67.6
68.6
Deferred revenue
401.5
379.8
Current maturities of long-term debt
370.8
364.5
Current operating lease liabilities
21.9
23.1
Total current liabilities
1,158.3
1,210.7
Long-term debt
680.4
551.0
Deferred revenue
12.4
12.3
Deferred taxes, net
18.5
21.0
Long-term operating lease liabilities
108.1
95.2
Other liabilities
33.4
30.3
Total liabilities
2,011.1
1,920.5
Total stockholders’ equity
1,241.8
1,285.2
Total liabilities and stockholders’ equity
$3,252.9
$3,205.7
Table 2 Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations (In
millions, except per share amounts) (Unaudited)
Three
Months Ended March 31,
2020
2019
Revenue: Software delivery, support and maintenance
$263.6
$275.5
Client services
153.1
156.5
Total revenue
416.7
432.0
Cost of revenue: Software delivery, support and maintenance
76.3
81.0
Client services
152.8
148.7
Amortization of software development and acquisition-related assets
(a)
30.6
28.2
Total cost of revenue
259.7
257.9
Gross profit
157.0
174.1
Selling, general and administrative expenses
97.3
100.2
Research and development
62.2
64.3
Impairments
0.0
0.1
Amortization of intangible and acquisition-related assets
6.7
6.8
Income (loss) from operations
(9.2
)
2.7
Interest expense and other, net (b)
(11.7
)
(9.7
)
Recovery (impairment) on long-term investments
0.0
1.0
Equity in net income (loss) of unconsolidated investments
0.2
(0.1
)
Income (loss) before income taxes
(20.7
)
(6.1
)
Income tax (provision) benefit
0.3
(1.9
)
Net income (loss)
(20.4
)
(8.0
)
Net (income) loss attributable to non-controlling interest
0.0
0.4
Net Income (loss) attributable to Allscripts Healthcare Solutions,
Inc. stockholders
($20.4
)
($7.6
)
Income (loss) earnings per share - basic
($0.13
)
($0.04
)
Income (loss) earnings per share - diluted
($0.13
)
($0.04
)
Weighted average common shares outstanding: Basic
162.5
170.0
Diluted
162.5
170.0
Three Months Ended March 31,
2020
2019
(a) Amortization of software development and
acquisition-related assets includes: Amortization of capitalized
software development costs
$22.0
$19.2
Amortization of acquisition-related intangible assets
8.6
9.0
Total amortization of software development and acquisition-related
assets
$30.6
$28.2
(b) Interest expense and other, net are comprised of the
following for the periods presented: Non-cash charges to
interest expense
$4.8
$3.3
Interest expense
6.5
6.2
Amortization of discounts and debt issuance costs
0.9
0.7
Other (income) loss, net
(0.5
)
(0.5
)
Total interest expense and other, net
$11.7
$9.7
Table 3 Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows (In
millions) (Unaudited)
Three Months Ended March 31,
2020
2019
Cash flows from operating activities: Net income (loss)
($20.4
)
($8.0
)
Non-cash adjustments to net income (loss): Depreciation and
amortization
52.1
50.1
Operating right-to-use asset amortization
5.6
5.3
Stock-based compensation expense
10.0
11.7
Deferred Taxes
(2.1
)
0.0
Asset impairment charges
0.0
0.1
Impairment (recovery) of long-term investments
0.0
(1.0
)
Other loss (income), net
0.3
0.2
Total non-cash adjustments to net income (loss)
65.9
66.4
Cash impact of changes in operating assets and liabilities: Assets
25.3
36.0
Liabilities
(17.2
)
(58.6
)
Accrued DOJ settlement
(57.3
)
0.0
Total cash impact of changes on operating assets and liabilities
(49.2
)
(22.6
)
Net cash provided by (used in) operating activities - continuing
operations
(3.7
)
35.8
Net cash provided by (used in) operating activities - discontinued
operations
0.0
(30.0
)
Net cash provide by (used in) operating activities
(3.7
)
5.8
Cash flows from investing activities: Capital expenditures
(2.8
)
(4.8
)
Capitalized software
(28.6
)
(28.6
)
(Purchases) sales of equity securities in partner entities,
businessacquisitions, net of cash acquired and other investments
(3.0
)
0.0
Other proceeds from investing activities
0.0
0.0
Net cash provided by (used in) investing activities
(34.4
)
(33.4
)
Cash flows from financing activities: Taxes paid related to net
share settlement of equity awards
(3.2
)
(5.3
)
Proceeds from issuance of 0.875% Convertible Senior Notes
(0.8
)
0.0
Credit facility payments
(80.0
)
(5.0
)
Credit facility borrowings, net of issuance costs
210.0
120.0
Repurchase of common stock
(9.7
)
(65.1
)
Payment of acquisition and other financing obligations
(2.9
)
(0.1
)
Purchases of subsidiary shares owned by non-controlling interest
0.0
(54.0
)
Net cash provided by (used in) financing activities
113.4
(9.5
)
Effect of exchange rate changes on cash and cash equivalents
(0.7
)
0.2
Net increase (decrease) in cash and cash equivalents
74.6
(36.9
)
Cash and cash equivalents, beginning of period
137.5
184.8
Cash and cash equivalents, end of period
$212.1
$147.9
Table 4 Allscripts Healthcare Solutions, Inc.
Condensed Non-GAAP Financial Information (In millions,
except per share amounts and percentages) (Unaudited)
Three Months Ended March
31,
2020
2019
Total revenue, as reported
$416.7
$432.0
Acquisition-related deferred revenue adjustments
0.0
0.6
Total non-GAAP revenue
$416.7
$432.6
Gross profit, as reported
$157.0
$174.1
Acquisition-related deferred revenue adjustments
0.0
0.6
Acquisition-related amortization
8.6
9.0
Stock-based compensation expense
1.7
1.6
Restructuring and other
4.1
1.2
Total non-GAAP gross profit
$171.4
$186.5
Income (loss) from operations, as reported
($9.2
)
$2.7
Acquisition-related deferred revenue adjustments
0.0
0.6
Acquisition-related amortization
15.3
15.8
Stock-based compensation expense
11.1
12.8
Impairments
0.0
0.1
Restructuring and other
9.1
9.7
Total non-GAAP operating income
$26.3
$41.7
Net income (loss) attributable to Allscripts Healthcare
Solutions, Inc. stockholders, as reported
($20.4
)
($8.0
)
Net (income) loss attributable to non-controlling interest
0.0
0.4
Income (loss), net of tax
($20.4
)
($7.6
)
Acquisition-related deferred revenue adjustments
0.0
0.6
Acquisition-related amortization
15.3
15.8
Stock-based compensation expense
11.1
12.8
Restructuring and other
9.1
9.7
Non-cash charges to interest expense and other
5.7
3.3
Impairments
0.0
0.1
Impairment of long-term investments
0.0
(1.0
)
Equity in net loss (income) of unconsolidated investments
(0.2
)
0.1
Tax rate alignment
(5.2
)
(6.6
)
Non-GAAP net (income)/loss attributable to non-controlling interest
0.0
(0.3
)
Non-GAAP net income attributable to Allscripts Healthcare
Solutions, Inc.
$15.4
$26.9
Non-GAAP effective tax rate
24
%
24
%
Weighted shares outstanding - basic
162.5
170.0
Weighted shares outstanding - diluted
163.7
171.8
GAAP Income (loss) earnings per share - diluted
($0.13
)
($0.04
)
Non-GAAP Income (loss) earnings per share - diluted
$0.09
$0.16
Table 5 Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information - Adjusted EBITDA (In
millions, except percentages) (Unaudited)
Three Months
Ended March 31,
2020
2019
Net income (loss), as reported
($20.4
)
($8.0
)
Plus: Interest expense and other, net (a)
5.8
5.7
Depreciation and amortization
52.1
50.1
Equity in net (income) loss of unconsolidated investments
(0.2
)
0.1
Tax provision/(benefit)
(0.3
)
1.9
EBITDA
$37.0
$49.8
Plus: Acquisition-related deferred revenue adjustments
0.0
0.6
Stock-based compensation expense
11.1
12.8
Restructuring and other
9.1
9.7
Impairments
0.0
0.1
(Recovery) impairment on long-term investments
0.0
(1.0
)
Adjusted EBITDA
$57.2
$72.0
Adjusted EBITDA margin (b)
14
%
17
%
(a) Interest expense and other, net has been adjusted from the
amounts presented in the statements of operations in order to
remove the amortization of the fair value of the cash conversion
option embedded in the 1.25% and .875% Cash Convertible Notes and
deferred debt issuance costs from interest expense since such
amortization is also included in depreciation and amortization.
(b) Adjusted EBITDA margin is calculated by dividing
adjusted EBITDA by non-GAAP revenue.
Explanation of Non-GAAP Financial Measures
Allscripts reports its financial results in accordance with U.S.
generally accepted accounting principles, or GAAP. To supplement
this information, Allscripts presents non-GAAP revenue, gross
profit, gross margin, operating expense, income from operations,
Adjusted EBITDA, effective income tax rate, net income, diluted
earnings per share and free cash flow, which are considered
non-GAAP financial measures under Section 101 of Regulation G under
the Securities Exchange Act of 1934, as amended. The definitions of
non-GAAP financial measures are presented below:
- Non-GAAP revenue consists of GAAP revenue, as reported, and
adds back recognized deferred revenue from the EIS business,
Practice Fusion, HealthGrid, NantHealth’s provider/patient
solutions business and non-material consolidated affiliates that is
eliminated for GAAP purposes due to purchase accounting
adjustments. Reconciliations to GAAP revenue are found in Table 4
within this press release.
- Non-GAAP gross profit consists of GAAP gross profit, as
reported, and excludes acquisition-related deferred revenue
adjustments, acquisition-related amortization, stock-based
compensation expense and restructuring and other costs. Non-GAAP
gross margin consists of non-GAAP gross profit as a percentage of
non-GAAP revenue in the applicable period. Reconciliations to GAAP
gross profit are found in Table 4 within this press release.
- Non-GAAP operating expense consists of GAAP selling, general
and administrative expenses (SG&A) and research and development
expense (R&D), as reported, and excludes restructuring and
other costs and stock-based compensation expense recorded to
SG&A and R&D. Reconciliations to GAAP operating expense are
found in Table 4 within this press release.
- Non-GAAP income from operations consists of GAAP income from
operations, as reported, and excludes acquisition-related deferred
revenue adjustments, acquisition-related amortization, stock-based
compensation expense, impairment charges and restructuring and
other costs. Reconciliations to GAAP income from operations are
found in Table 4 within this press release.
- 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; restructuring and other costs;
non-cash long-term investment impairment charges; goodwill
impairment charges; gain on sale of businesses, net; interest
expense and other, net; equity in net earnings of unconsolidated
investments; and tax provision (benefit). Reconciliations to GAAP
net income/(loss) are found in Table 5 within this press
release.
- 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 consists of GAAP net income/(loss), as
reported, and adds back acquisition-related deferred revenue
adjustments; acquisition-related amortization; stock-based
compensation expense; restructuring and other costs; non-cash
long-term investment impairment charges; non-cash charges to
interest expense and other; impairment charges and equity in net
earnings of unconsolidated investments. Non-GAAP net income also
includes a GAAP to non-GAAP tax rate alignment adjustment.
Reconciliations to GAAP net income/(loss) are found in Table 4
within this press release.
- Non-GAAP net income attributable to Allscripts Healthcare
Solutions, Inc. is a non-GAAP measure and consists of non-GAAP net
income, as described above, with an adjustment to reduce non-GAAP
net income for the percentage of non-controlling interest outside
Allscripts ownership position.
- Non-GAAP diluted earnings per share consist of non-GAAP net
income, as defined above, divided by weighted shares outstanding –
diluted during the applicable period.
- Free cash flow consists of GAAP cash flows provided by
operating activities in the applicable period, net of capital
expenditures and capitalized software costs, including those
incurred by businesses presented as discontinued operations.
Acquisition-Related Deferred Revenue Adjustments.
Deferred revenue adjustments include acquisition-related deferred
revenue adjustments, which reflect the fair value adjustments to
deferred revenue acquired in a business acquisition. The fair value
of acquired deferred revenue represents an amount equivalent to the
estimated cost plus an appropriate profit margin, to perform
services related to the acquiree's software and product support,
which assumes a legal obligation to do so, based on the deferred
revenue balances as of the acquisition date. Allscripts adds back
acquisition-related deferred revenue adjustments for its non-GAAP
financial measures because it believes the inclusion of this amount
directly correlates to the underlying performance of Allscripts
operations.
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. Allscripts excludes
acquisition-related amortization expense from non-GAAP gross
profit, non-GAAP operating income, and non-GAAP net income because
it believes (i) the amount of such expenses in any specific period
may not directly correlate to the underlying performance of
Allscripts business operations and (ii) such expenses can vary
significantly between periods because of new acquisitions and full
amortization of previously acquired intangible assets. Investors
should note that the use of these intangible assets contributed to
revenue in the periods presented and will contribute to future
revenue generation, and the related amortization expense will recur
in future periods.
Stock-Based Compensation Expense. Stock-based
compensation expense is a non-cash expense arising from the grant
of stock-based awards. Allscripts excludes stock-based compensation
expense from non-GAAP gross profit, non-GAAP operating income,
non-GAAP operating expense, non-GAAP net income and Adjusted EBITDA
because it believes (i) the amount of such expenses in any specific
period may not directly correlate to the underlying performance of
Allscripts business operations and (ii) such expenses can vary
significantly between periods as a result of the timing and
valuation of grants of new stock-based awards, including grants in
connection with acquisitions. Investors should note that
stock-based compensation is a key incentive offered to employees
whose efforts contributed to the operating results in the periods
presented and are expected to contribute to operating results in
future periods, and such expense will recur in future periods.
Impairments. Impairment charges reflect the write-off of
the book value of certain fixed assets that resulted from
consolidating business functions and data centers.
Restructuring and Other Costs. Restructuring 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.
Allscripts excludes restructuring and other costs, in whole or
in part, from non-GAAP gross profit, non-GAAP operating income,
non-GAAP operating expense, non-GAAP net income and Adjusted EBITDA
because it believes (i) the amount of such expenses in any specific
period may not directly correlate to the underlying performance of
Allscripts business operations and (ii) such expenses can vary
significantly between periods.
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 1.25 percent Cash
Convertible Notes and 0.875 percent Convertible Notes issued by
Allscripts during the second quarter of 2013 and fourth quarter of
2019, respectively.
Impairment of Long-Term Investments. Impairment of
long-term investments relates to other-than-temporary non-cash
impairment charges associated with such investments based on
management’s assessment of the likelihood of near-term recovery of
the investments’ value.
Equity in Net loss (income) of Unconsolidated
Investments. Equity in net loss (income) of unconsolidated
investments represents Allscripts share of the equity earnings of
our investments in third parties accounted for under the equity
method, including the amortization of cost basis adjustments.
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 revenue, gross profit,
gross margin, operating expense, income from operations, effective
income tax rate, net income, diluted earnings per share, Adjusted
EBITDA, and free cash flow 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
gross profit, operating expense, operating income, net income,
earnings per share and/or Adjusted EBITDA to measure achievement
under Allscripts stock and cash incentive compensation plans. Note,
however, that non-GAAP gross profit, operating income, net income,
diluted earnings per share and Adjusted EBITDA are performance
measures only, and they do not provide any measure of cash flow or
liquidity. Allscripts considers free cash flow to be a liquidity
measure that provides useful information to management and
investors about the amount of cash generated by the business after
capital expenditures and capitalized software costs. Free cash flow
provides management and investors a valuable measure to determine
the quantity of capital generated that can be deployed to create
additional shareholder value by a variety of means. 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. Investors and
potential investors are encouraged to review the definitions and
reconciliations of non-GAAP financial measures with GAAP financial
measures contained within the attached condensed consolidated
financial statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200507006068/en/
Investors: Stephen Shulstein
312-386-6735 stephen.shulstein@allscripts.com
Media: Concetta Rasiarmos
312-447-2466 concetta.rasiarmos@allscripts.com
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