Allscripts Announces First Quarter 2015 Results
Bookings total $236 million, 6% year-over-year growth
Recurring revenue increases to 77 from 73 % of total revenue year-over-year
Cash flow from operations totals $59 million
CHICAGO,IL – May 7, 2015 (GLOBE NEWSWIRE) — Allscripts Healthcare Solutions, Inc. (Nasdaq:MDRX) (Allscripts) announced its financial results for the three months ended March 31, 2015.
First Quarter Bookings Highlights:
Bookings(1) in the first quarter of 2015 were a record $236 million compared with $223 million in the first quarter of 2014, a 6 percent increase. First quarter 2015 bookings reflect sales growth of SunriseTM Acute Care as well as significant contributions from population health management and Allscripts payer life sciences solutions.
Approximately 63 percent of first quarter bookings related to software delivery and recurring transactions, while the remaining 37 percent were derived from sales of client services solutions. This compares with 54 and 46 percent of bookings attributable to these revenue categories, respectively, in the first quarter of 2014.
Contract revenue backlog as of March 31, 2015, totaled $3.5 billion, which was flat compared with the prior-year amount.
Paul M. Black, President and Chief Executive Officer of Allscripts, stated: “We are pleased with first quarter bookings growth of 6 percent year-over-year. Sunrise bookings growth reflects both net new client sales and additional sales to existing clients, as they increase investments in the platform. Enhancements in Sunrise functionality, increasing client satisfaction and recent, positive industry recognition are driving growing interest in Allscripts globally.
“While total revenue declined in the quarter, higher margin recurring revenue continues to grow year-over-year and constituted 77 percent of total revenue. We also maintained a disciplined focus on operating expenses, which helped drive a significant year-over-year increase in operating and free cash flows.” Mr. Black continued, “Looking ahead, Allscripts strategic position is solid. We are focused on continually enhancing core solutions, growing population health and international markets and offering new value-added services. Together, these opportunities provide a foundation for improving financial performance and value creation going forward.”
First Quarter 2015 Highlights:
Revenue totaled $335 million, a decline of 2 percent, compared with $340 million in the first quarter of 2014.
Software delivery, support & maintenance revenue totaled $228 million in the first quarter of 2015, flat compared with the first quarter of 2014. Software delivery, support & maintenance revenue consists of all software, hardware, and transaction-related revenue as well as support & maintenance.
Client services revenue totaled $107 million in the first quarter of 2015, down 5 percent compared with the first quarter of 2014. Client services revenue consists of both managed IT services as well as other client services.
On a non-GAAP basis, recurring revenue, consisting of subscriptions, recurring transactions, support, maintenance, and recurring managed services, increased $7 million compared with the first quarter of 2014; representing growth of 3 percent year-over-year. Non-recurring revenue, consisting of systems sales and other client services revenue, declined $18 million or 19 percent, compared with the first quarter of 2014.
First quarter 2015 gross margin was 42.3 percent on a non-GAAP basis and 38.8 percent on a GAAP basis, compared with 44.9 percent and 40.6 percent, respectively, in the first quarter of 2014.
Operating expenses, consisting of SG&A and R&D expense, declined 12 percent on a non-GAAP basis and 9 percent on a GAAP basis in the first quarter of 2015 compared with the first quarter of 2014. The decline in operating expenses reflects initiatives to decrease corporate SG&A expenses, streamline business functions, and leverage investments in research and development. GAAP operating expenses in the first quarter of 2015 included severance expense of approximately $6 million.
Reflecting lower operating expenses, Adjusted EBITDA increased 4 percent to $50 million in the first quarter of 2015, compared with $48 million in the first quarter of 2014.
On a non-GAAP basis, Allscripts effective tax rate was 35 percent in the first quarter of both 2015 and 2014. On a GAAP basis, Allscripts recorded an income tax benefit of approximately $1.0 million in the first quarter of 2015, compared with an income tax provision of $1.5 million in the first quarter of 2014.
First quarter 2015 non-GAAP net income totaled $15 million compared with $12 million in the first quarter of 2014. First quarter 2015 GAAP net loss totaled $10 million compared with a net loss of $21 million in the first quarter of 2014.
First quarter 2015 non-GAAP earnings per share were $0.08 compared with $0.07 in the first quarter of 2014. First quarter 2015 GAAP loss per share was $0.06 compared with a loss per share of $0.12 in the first quarter of 2014.
Allscripts first quarter 2015 cash flow from operations totaled $59 million compared with $21 million in the first quarter of 2014. Free cash flow totaled $43 million compared with $0.2 million in the first quarter of 2014.
Allscripts is confirming its full year Adjusted EBITDA and non-GAAP earnings per diluted share that the Company introduced earlier this year. The Company is modifying its full year revenue guidance to a range between $1.40B and $1.43B.
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.