Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX)
(Allscripts) today announced preliminary financial results for the
three and twelve months ended December 31, 2021.
Revenue for the fourth quarter of 2021 is expected to be between
$390 million and $395 million.
For the full year 2021, the company expects GAAP operating
income to be between $70 million and $75 million and expects
Adjusted EBITDA(1) to be between $295 million and $300 million, an
increase from the prior outlook range of between $275 million and
$285 million.
The Company also expects full year 2021 cash flow from
continuing operations to be between $245 million and $250 million
and expects free cash flow(2) to be between $165 million and $170
million, an increase from the prior outlook range of between $145
million and $155 million.
The company also announced that its Board of Directors has
approved a new share repurchase program under which Allscripts may
purchase up to $250 million of its common stock. The new share
repurchase program does not have a termination date and replaces
the previous authorization to repurchase up to $350 million of
common stock. In the fourth quarter of 2021, Allscripts repurchased
$108 million of its common stock, and this fully utilized all
remaining authorization under the prior program.
The preliminary financial information presented in this press
release is based on current expectations and may be adjusted as a
result of, among other things, completion of customary quarterly
review and audit procedures and other developments that may occur
before the completion of those procedures.
The company will report its financial results for the three and
twelve months ended December 31, 2021 after the close of stock
market hours on Thursday, February 24, 2022. Allscripts management
plans to host a conference call and webcast to discuss the
company's earnings at 4:30 p.m. Eastern Time that same day.
Footnotes (1) Allscripts estimates the
preliminary Adjusted EBITDA range and reconciling items to be as
follows:
Twelve Months Ended December 31,
2021
2021
Expected Income (loss) from operations, as reported
$70
$75
Plus Expected: Depreciation and amortization
169
169
Asset impairment charges
12
12
Stock-based compensation expense
44
44
Expected Adjusted EBITDA
$295
$300
Adjusted EBITDA margin (a)
19.7%
19.9%
(a) Adjusted EBITDA margin is calculated by dividing
adjusted EBITDA by revenue.
Please see the “Explanation of Non-GAAP
Financial Measures” at the end of this press release for detailed
information on calculating non-GAAP financial measures.
(2) Allscripts estimates the preliminary free
cash flow range and reconciling items to be as follows:
Twelve Months Ended December 31,
2021
2021
Expected Net cash provided by (used in) operating activities -
continuing operations
$245
$250
Expected Cash flows from investing activities: Capital expenditures
(6)
(6)
Capitalized software
(74)
(74)
Expected Free cash flow
$165
$170
Please see the “Explanation of Non-GAAP
Financial Measures” at the end of this press release for detailed
information on calculating non-GAAP financial measures.
Fourth-Quarter and Full Year 2021 Financial Results Call
Details
The Allscripts earnings announcement will be distributed
immediately after the close of regular stock market hours on
Thursday, February 24, 2022. The announcement will also be
available at Allscripts investor relations website.
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 and
requesting Conference ID # 13726412.
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 # 13726412.
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.
© 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 preliminary fourth quarter
of 2021 and fiscal year 2021 financial results. 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” “preliminary” 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 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; the failure by Practice Fusion to
comply with the terms of the settlement agreements with the U.S.
Department of Justice (the “DOJ”), the associated costs and the
extent of third party indemnification or insurance coverage and the
possibility that additional investigations and proceedings may be
brought relating to Practice Fusion’s business practices; the
expected financial results and integration of, and liabilities
associated with, businesses acquired by us (including the civil
investigation by the U.S. Attorney’s Office involving our
Enterprise Information Solutions business) and risks associated
with our other investments and dispositions; our failure to compete
successfully in a highly competitive industry subject to rapid
technological change; consolidation in our industry; our ability to
maintain and expand our business with existing clients or
effectively transition clients to newer products; current and
future laws, regulations and industry initiatives; increased
government involvement in our industry; changes in interoperability
or other regulatory standards; the possibility that our products or
services could fail to perform due to errors or similar problems;
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; 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 as a result of
changes to the healthcare regulatory landscape; our ability to
license and integrate third-party technologies; business
disruptions as a result in IT system failures or other disruptions;
risks related to global operations; variability of our quarterly
operating results; risks related to our outstanding indebtedness;
changes in tax rates or laws; our ability to maintain proper and
effective internal controls; 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 Annual Report on Form 10-K and subsequent Quarterly Reports
on Form 10-Qs. In addition, there is no guarantee as to the exact
number of shares or value that will be repurchased under the share
repurchase program, and Allscripts may discontinue purchases at any
time. Whether Allscripts makes any repurchases will depend on many
factors, including but not limited to its business and financial
performance, the business and market conditions at the time,
including the price of Allscripts shares, and other factors that
management considers relevant. 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.
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 Adjusted EBITDA 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:
- Adjusted EBITDA is a non-GAAP measure and consists of GAAP
operating income/(loss), as reported, and adjusts for: depreciation
and amortization; asset impairment charges; and stock-based
compensation expense.
- Free cash flow consists of GAAP cash flows from continuing
operations in the applicable period, net of capital expenditures
and capitalized software costs.
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 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.
Management also believes that Adjusted EBITDA and free cash flow
provide useful supplemental information to management and investors
regarding the underlying performance of Allscripts business
operations. Restructuring and other costs recorded 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 Adjusted
EBITDA to measure achievement under Allscripts stock and cash
incentive compensation plans. Note, however, that Adjusted EBITDA
is a performance measure only, and it does 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 preliminary reconciliations of non-GAAP financial
measures with GAAP financial measures contained herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20220124005714/en/
Investors: Jenny Gelinas
312-506-1237 Jenny.Gelinas@allscripts.com
Media: Tom Lynch 312-386-6765
tom.lynch@allscripts.com
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