- First quarter GAAP EPS of $0.06; non-GAAP diluted EPS of
$0.19
- First quarter bookings of $194 million up 6% from the first
quarter of 2020
- Generated $56 million of cash flow from continuing
operations and $35 million of free cash flow in the first
quarter
Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX)
(Allscripts) announced its financial results for the three months
ended March 31, 2021.
Bookings(1) were $194 million in the first quarter of 2021. This
result compares with $183 million in the first quarter of 2020.
Contract revenue backlog totaled $4.0 billion as of March 31,
2021.
First quarter 2021 revenue was $368 million compared with $381
million in the first quarter of 2020.
On a GAAP basis in the first quarter of 2021, income from
operations was $13 million compared with a GAAP loss from
operations in the first quarter of 2020 of $27 million. Non-GAAP
income from operations in the first quarter of 2021 was $38 million
compared with $8 million in the first quarter of 2020.
GAAP net income in the first quarter of 2021 totaled $9 million
compared with net loss of $20 million in the first quarter of 2020.
Non-GAAP net income in the first quarter of 2021 was $28 million
compared with $3 million in the first quarter of 2020.
GAAP earnings per share in the first quarter of 2021 was $0.06
compared with loss per share of $0.20 in the first quarter of 2020.
Non-GAAP diluted earnings per share in the first quarter of 2021
was $0.19 compared with $0.02 in the first quarter of 2020.
Adjusted EBITDA totaled $67 million in the first quarter of
2021, compared with $37 million in the first quarter of 2020.
“Entering 2021, Allscripts continued to benefit from our
strategic investments in distinctive, relevant and comprehensive
solutions for our clients across the provider, payer and life
sciences end markets. While regional uncertainty remains regarding
the trajectory of COVID-19, we are optimistic as the pace of
vaccinations increases, patient volumes recover, and we see
expanded demand for closed loop connectivity to real world data,”
said Paul M. Black, Allscripts Chief Executive Officer. “We were
pleased with our strong first quarter results, as we gained from a
more robust selling environment and a determined discipline around
our cost structure. Looking forward expect a steady, purposeful
focus on improving margins, generating free cash flow and serving
our clients as they lead their organizations through the
pandemic.”
2021 Financial Outlook(2)
Allscripts is affirming its prior annual outlook and currently
expects to achieve:
- Revenue of $1.5 billion
- Adjusted EBITDA between $240 million and $260 million
- Free cash flow between $90 million and $100 million
Conference Call
Allscripts will conduct a conference call today, Thursday, April
29th, 2021, 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 #
13718264.
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 # 13718264.
Supplemental and non-GAAP financial information is also
available at http://investor.allscripts.com.
Footnotes
(1)
Bookings reflect the value of executed
contracts for software, hardware and other client services on a
continuing operations basis.
(2)
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 net income and operating cash flow such as
acquisition-related amortization, asset impairment charges and
restructuring 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, 5 and 6).
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.
© 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.
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 2021 outlook,
profitability initiatives and strategic priorities. 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” 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 Allscripts actual results
to differ materially from those described in the forward-looking
statements include, but are not limited to: our ability to achieve
the margin targets associated with our margin improvement
initiatives within the contemplated time periods, if at all; the
magnitude, severity and duration of the COVID-19 pandemic,
including the impacts of the pandemic, along with the impacts of
our responses and the responses by governments and other businesses
to the pandemic, on our business, our employees, our clients and
our suppliers; security breaches resulting in unauthorized access
to our or our clients’ computer systems or data, including
denial-of-services, ransomware or other Internet-based attacks; our
use of the proceeds from the sale of our EPSi and CarePort
businesses; 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; our ability to recover from third
parties (including insurers) any amounts required to be 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 (the “EIS 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 other 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; 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,
2021
2020
ASSETS Current assets: Cash and cash equivalents
$513.4
$531.1
Restricted cash
2.1
6.4
Accounts receivable, net
359.1
347.3
Contract assets
106.9
106.7
Income tax receivable
25.4
25.4
Prepaid expenses and other current assets
128.5
136.3
Total current assets
$1,135.4
$1,153.2
Fixed assets, net
67.4
72.2
Software development costs, net
188.7
193.2
Intangible assets, net
273.9
286.6
Goodwill
974.8
974.7
Deferred taxes, net
5.8
5.8
Contract assets - long-term
45.8
43.7
Right-of-use assets - operating leases
90.2
96.6
Other assets
89.4
91.6
Total assets
$2,871.4
$2,917.6
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable
$26.9
$35.9
Accrued expenses
93.5
100.2
Accrued compensation and benefits
84.1
118.8
Deferred revenue
380.4
334.8
Current operating lease liabilities
22.6
22.3
Current liabilities attributable to discontinued operations
272.9
322.8
Total current liabilities
880.4
934.8
Long-term debt
169.4
167.6
Deferred revenue
3.0
3.4
Deferred taxes, net
16.9
18.2
Long-term operating lease liabilities
87.7
93.5
Other liabilities
35.3
33.9
Total liabilities
$1,192.7
$1,251.4
Total stockholders’ equity
$1,678.7
$1,666.2
Total liabilities and stockholders’ equity
$2,871.4
$2,917.6
Table 2 Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations (In
millions, except per share amounts) (Unaudited)
Three
Months Ended March 31,
2021
2020
Revenue: Software delivery, support and maintenance
$222.7
$232.1
Client services
145.7
149.3
Total revenue
368.4
381.4
Cost of revenue: Software delivery, support and maintenance
70.7
73.1
Client services
118.1
148.2
Amortization of software development and acquisition-related assets
(a)
29.5
28.1
Total cost of revenue
218.3
249.4
Gross profit
150.1
132.0
Selling, general and administrative expenses
81.7
92.8
Research and development
49.2
59.4
Amortization of intangible and acquisition-related assets
5.8
6.7
Income (loss) from operations
13.4
(26.9
)
Interest expense, net (b)
(2.8
)
(10.1
)
Other
0.7
0.1
Income (loss) before income taxes
11.3
(36.9
)
Income tax (provision) benefit
(2.7
)
4.5
Income (loss) from continuing operations, net of tax
8.6
(32.4
)
Income (loss) from discontinued operations
0.0
16.2
Gain (loss) on sale of discontinued operations
0.6
0.0
Income tax (provision) from discontinued operations
(0.1
)
(4.2
)
Income (loss) from discontinued operations, net of tax
0.5
12.0
Net Income (loss) attributable to Allscripts Healthcare Solutions,
Inc. stockholders
$9.1
($20.4
)
Income (loss) from continuing operations per share - basic
$0.06
($0.20
)
Income (loss) from discontinued operations per share - basic
$0.00
$0.07
Income (loss) per share - basic
$0.06
($0.13
)
Income (loss) from continuing operations per share - diluted
$0.06
($0.20
)
Income (loss) from discontinued operations per share - diluted
$0.00
$0.07
Income (loss) per share - diluted
$0.06
($0.13
)
Weighted average common shares outstanding: Basic
140.2
162.5
Diluted
149.1
162.5
Three Months Ended March 31,
2021
2020
(a) Amortization of software development and
acquisition-related assets includes: Amortization of capitalized
software development costs
22.6
19.9
Amortization of acquisition-related intangible assets
6.9
8.2
Total amortization of software development and acquisition-related
assets
$29.5
$28.1
(b) Interest expense are comprised of the following for the
periods presented: Interest expense
(1.3
)
(4.8
)
Interest income
0.4
0.5
Non-cash charges to interest expense
(1.9
)
(5.8
)
Interest expense, net
($2.8
)
($10.1
)
Table 3 Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows (In
millions) (Unaudited)
Three Months Ended March 31,
2021
2020
Cash flows from operating activities: Net income (loss)
$9.1
($20.4
)
Less: Income(loss) from discontinued operations
0.5
12.0
Income (loss) from continuing operations
$8.6
($32.4
)
Non-cash adjustments to net income (loss): Depreciation and
amortization
44.0
49.5
Operating right-to-use asset amortization
5.0
5.5
Stock-based compensation expense
8.7
10.0
Deferred Taxes
(1.1
)
(2.2
)
Other (income) loss, net
1.7
(1.3
)
Total non-cash adjustments to net income (loss)
58.3
61.5
Cash impact of changes in operating assets and liabilities: Assets
41.7
24.4
Liabilities
(52.7
)
(15.5
)
Accrued DOJ settlement
0.0
(57.3
)
Total cash impact of changes on operating assets and liabilities
(11.0
)
(48.4
)
Net cash provided by (used in) operating activities - continuing
operations
55.9
(19.3
)
Net cash provided by (used in) operating activities - discontinued
operations
(51.4
)
15.6
Net cash provided by (used in) operating activities
4.5
(3.7
)
Cash flows from investing activities: Capital expenditures
(2.4
)
(2.8
)
Capitalized software
(18.1
)
(26.5
)
Sales (purchases) of equity securities, other investments and
related intangible assets, net
(0.2
)
(3.0
)
Sale of other investments
1.7
0.0
Cash provided by (used in) investing activities - Continuing
Operations
(19.0
)
(32.3
)
Cash provided by (used in) investing activities - Discontinued
Operations
0.0
(2.1
)
Net cash provided by (used in) investing activities
(19.0
)
(34.4
)
Cash flows from financing activities: Taxes paid related to net
share settlement of equity awards
(6.0
)
(3.2
)
Payments for issuance costs on 0.875% Convertible Senior Notes
0.0
(0.8
)
Credit facility payments
0.0
(80.0
)
Credit facility borrowings, net of issuance costs
0.0
210.0
Repurchase of common stock
0.0
(9.7
)
Payment of acquisition and other financing obligations
(1.5
)
(2.9
)
Net cash provided by (used in) financing activities
(7.5
)
113.4
Effect of exchange rate changes on cash and cash equivalents
0.0
(0.7
)
Net increase (decrease) in cash and cash equivalents
(22.0
)
74.6
Cash, cash equivalents and restricted cash, beginning of period
537.5
137.5
Cash, cash equivalents and restricted cash, end of period
$515.5
$212.1
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,
2021
2020
Gross profit, as reported
$150.1
$132.0
Acquisition-related amortization
6.9
8.2
Stock-based compensation expense
1.8
1.6
Restructuring and other
0.0
4.2
Total non-GAAP gross profit
$158.8
$146.0
Income (loss) from operations, as reported
$13.4
($26.9
)
Acquisition-related amortization
12.7
14.9
Stock-based compensation expense
11.8
10.9
Restructuring and other
0.0
9.0
Total non-GAAP income from operations
$37.9
$7.9
Net income (loss) attributable to Allscripts Healthcare
Solutions, Inc. stockholders, as reported
$9.1
($20.4
)
Loss (income) from discontinued operations
0.0
(16.2
)
(Gain) on sale of business, net
(0.6
)
0.0
Income tax provision from discontinued operations
0.1
4.2
Income (loss) from continuing operations, net of tax
$8.6
($32.4
)
Acquisition-related amortization
12.7
14.9
Stock-based compensation expense
11.8
10.9
Restructuring and other
0.0
9.0
Non-cash charges to interest expense and other
1.3
5.8
Tax rate alignment
(6.2
)
(5.5
)
Non-GAAP net income attributable to Allscripts Healthcare
Solutions, Inc.
$28.2
$2.7
Non-GAAP effective tax rate
24
%
24
%
Weighted shares outstanding - basic
140.2
162.5
Weighted shares outstanding - diluted
149.1
163.7
Less effect of convertible note hedges
(2.6
)
0.0
Non-GAAP Weighted shares outstanding - diluted
146.5
163.7
GAAP Income (loss) from continuing operations per share -
diluted
$0.06
($0.20
)
Non-GAAP Income (loss) per share - diluted
$0.19
$0.02
Table 5 Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information - Adjusted EBITDA (In
millions, except percentages) (Unaudited)
Three Months
Ended March 31,
2021
2020
Net income (loss) from continuing operations, as reported
$8.6
($32.4
)
Plus: Interest expense and other, net (a)
0.2
4.4
Depreciation and amortization
44.0
49.5
Equity in net (income) loss of unconsolidated investments
0.0
(0.2
)
Tax provision/(benefit)
2.7
(4.5
)
EBITDA
$55.5
$16.8
Plus: Stock-based compensation expense
11.8
10.9
Restructuring and other
0.0
9.0
Adjusted EBITDA
$67.3
$36.7
Adjusted EBITDA margin (b)
18.3
%
9.6
%
(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 0.875% 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 revenue.
Table 6 Allscripts Healthcare
Solutions, Inc. Non-GAAP Financial Information - Free Cash
Flow (In millions) (Unaudited)
Three Months Ended
March 31,
2021
2020
Net cash provided by (used in) operating activities - continuing
operations
$55.9
($19.3
)
Cash flows from investing activities: Capital expenditures
(2.4
)
(2.8
)
Capitalized software
(18.1
)
(26.5
)
Free cash flow
$35.4
($48.6
)
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 gross profit, gross
margin, income from operations, Adjusted EBITDA, Adjusted EBITDA
margin, 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 gross profit consists of GAAP gross profit, as
reported, and excludes 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 revenue in the applicable period. Reconciliations to
GAAP gross profit are found in Table 4 within this press
release.
- Non-GAAP income from operations consists of GAAP income (loss)
from operations, as reported, and excludes acquisition-related
amortization, stock-based compensation expense, and restructuring
and other costs. Reconciliations to GAAP income (loss) 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: depreciation and
amortization; stock-based compensation expense; restructuring and
other costs; 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.
- Adjusted EBITDA margin is a non-GAAP measure that is calculated
by dividing Adjusted EBITDA by revenue. See the reconciliations in
Table 5 within this press release with respect to Adjusted
EBITDA.
- Non-GAAP effective income tax rate is based on non-GAAP pre-tax
earnings and consists of the statutory federal income tax rate,
Allscripts effective state income tax rate and adjustments for
permanent differences.
- Non-GAAP net income attributable to Allscripts Healthcare
Solutions, Inc. consists of GAAP net income/(loss) from continuing
operations, as reported, and adds back acquisition-related
amortization; stock-based compensation expense; restructuring and
other costs; non-cash charges to interest expense and other.
Non-GAAP net income includes a GAAP to non-GAAP tax rate alignment
adjustment. Reconciliations to GAAP net income/(loss) attributable
to Allscripts Healthcare Solutions, Inc. are found in Table 4
within this press release.
- Non-GAAP diluted weighted shares outstanding consists of
diluted weighted shares outstanding, as reported, less the effect
of the capped call hedges related to the 0.875% Convertible
Notes.
- Non-GAAP diluted earnings per share consist of non-GAAP net
income, as defined above, divided by non-GAAP weighted shares
outstanding – diluted during the applicable period.
- Free cash flow consists of GAAP cash flows from continuing
operations in the applicable period, net of capital expenditures
and capitalized software costs. Reconciliations to GAAP cash flows
from continuing operations are found in Table 6 within this press
release.
Acquisition-Related Amortization. Acquisition-related
amortization expense is a non-cash expense arising primarily from
the acquisition of intangible assets in connection with
acquisitions or investments. 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 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.
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 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.
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 gross profit, gross
margin, income from operations, effective income tax rate, net
income, diluted earnings per share, Adjusted EBITDA, Adjusted
EBITDA margin and free cash flow provide useful supplemental
information to management and investors regarding the underlying
performance of Allscripts business operations. Acquisition
accounting adjustments and restructuring and other costs 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 income, net income, diluted earnings per
share, Adjusted EBITDA and/or Adjusted EBITDA margin 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, Adjusted EBITDA and
Adjusted EBITDA margin 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/20210429005963/en/
Investors: Stephen Shulstein
312-386-6735 stephen.shulstein@allscripts.com Media: Tom Lynch 312-386-6765
tom.lynch@allscripts.com
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