Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) (“Allscripts”) today announced its financial results for the three and nine months ended September 30, 2014.
Third Quarter 2014 Highlights:
Bookings(1) were $223 million, which compares to $236 million in the third quarter of 2013 and $234 million in the second quarter of 2014. The third quarter of 2013 included a significant agreement for expanded software, services and managed services with PIH Health. Excluding the impact of this agreement, bookings grew approximately 16 percent in the third quarter of 2014 on a year-over-year basis. For the first nine months of 2014, bookings totaled $680 million, an increase of approximately 8 percent over the first nine months of 2013.
New sales of Allscripts Sunrise™ electronic health record (EHR) platform in the U.S. and the United Kingdom helped drive bookings performance in the third quarter of 2014. The Company benefited from growth in ambulatory bookings, on both a year-over-year as well as quarter-over-quarter basis. In addition, a significant portion of Allscripts bookings were derived from the Company’s industry-leading population health management solutions(2) and managed information technology services offerings. Software as a service bookings (SaaS) were 39 percent of total bookings in the third quarter, compared with 40 percent in the third quarter of 2013.
Contract revenue backlog increased to $3.4 billion as of September 30, 2014.
“Allscripts third quarter results continued to show progress,” said Paul M. Black, President and Chief Executive Officer of Allscripts. “We achieved solid new sales results, reflecting new client bookings across our installed base, as well as the addition of new clients globally. Demand was healthy for our solutions in Allscripts primary end markets including health systems, post-acute care givers and physician practices around the globe.”
“Delivering results for our clients is driving stronger client relationships and an enhanced competitive position. With a solid foundation, Allscripts is focused on delivering exceptional value to clients and enabling their readiness for the challenges of value-based care.”
Third Quarter 2014 Business Highlights:
- Catholic Health Initiatives selected Allscripts to provide ambulatory hosting services nationwide.
- Robert Wood Johnson University Hospital extended Allscripts Sunrise and Allscripts TouchWorks® to help the organization create a single, electronic community-enabled health record platform.
- Saline Memorial Hospital selected Allscripts Sunrise for flexibility and strength of clinical solution.
- In the United Kingdom, Wrightington, Wigan and Leigh NHS Foundation Trust will implement Allscripts Sunrise EHR to help drive positive patient outcomes.
- Baylor Scott & White Health selected Allscripts dbMotion™ interoperability and population health management platform to integrate and harmonize data to improve care delivery and lower costs.
Financial Highlights:
Total revenue increased 4 percent on a non-GAAP basis and 5 percent on a GAAP basis to $348 million and $345 million, respectively, compared with $334 million and $330 million, respectively, in the third quarter of 2013.
Third quarter 2014 gross margin was 42.3 percent on a non-GAAP basis and 38.1 percent on a GAAP basis, compared with 43.6 percent and 38.0 percent, respectively, in the third quarter of 2013.
Total operating expenses declined 4 percent on a non-GAAP basis and 7 percent on a GAAP basis in the current quarter compared with the third quarter of 2013. The decline in operating expenses reflects initiatives to decrease corporate SG&A expenses as well as leverage from prior investments in research and development. SG&A expense declined to approximately $79 million on a non-GAAP basis and $97 million on a GAAP basis, representing decreases of 6 percent and 7 percent, respectively, compared with the third quarter of 2013. Adjusted EBITDA increased 16 percent to $46 million, compared with $40 million in the third quarter of 2013.
Additional Financial Detail:
On a non-GAAP basis, Allscripts effective tax rate was 35 percent in the third quarter of 2014 compared with 20 percent in the third quarter of 2013. On a GAAP basis, Allscripts recorded an income tax benefit of approximately $0.4 million in the third quarter of 2014, compared with an income tax benefit of $2 million in the third quarter of 2013.
Third quarter 2014 non-GAAP net income totaled $12 million, compared with $9 million in the third quarter of 2013. Third quarter 2014 GAAP net loss totaled $26 million compared with a net loss of $49 million in the third quarter of 2013.
Third quarter 2014 non-GAAP earnings per share were $0.06 compared with $0.05 in the third quarter of 2013. Third quarter 2014 GAAP loss per share was $0.15 compared with a loss per share of $0.27 in the third quarter of 2013.
Conference Call:
Allscripts will conduct a conference call today, Thursday, November 6, 2014, at 4:30 PM Eastern Standard 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 (855) 717-7811 or +1 (224) 357-2059 (international) and requesting Conference ID # 13887683.
A replay of the call will be available approximately two hours after the conclusion of the call, for a period of two weeks, on the Allscripts investor relations website or by calling (855) 859-2056 or +1 (404) 537-3406 – Conference ID # 13887683.
Supplemental and non-GAAP financial information also will be available at http://investor.allscripts.com.
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.
© 2014 Allscripts. All Rights Reserved.
Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts. Other company and product names featured herein may be the trademarks of their respective owners.
For more information contact:
Investors:
Seth Frank
312-506-1213
seth.frank@allscripts.com
Media:
Matthew Berglind
312-447-2425
matthew.berglind@allscripts.com
