UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 17, 2005
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-32085 | 36-4392754 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 222 Merchandise Mart Plaza, Suite 2024, Chicago, IL 60654 |
||||
Registrant’s telephone number, including area code (312) 506-1200.
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On February 17, 2005, the registrant announced its earnings for the quarter and year ended December 31, 2004. Further details are described in the press release issued by the registrant on February 17, 2005, and furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press release issued February 17, 2005 | |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. | ||||
| Date: February 17, 2005 |
By: |
/s/ William J. Davis | ||
| William J. Davis | ||||
| Chief Financial Officer | ||||
INDEX TO EXHIBITS
| Exhibit Number |
Description | |
| 99.1 | Press Release issued February 17, 2005 |
Exhibit 99.1
| Allscripts Healthcare Solutions Contact: Dan Michelson Chief Marketing Officer 312-506-1217 dan.michelson@allscripts.com |
Bill Davis Chief Financial Officer 312-506-1211 bill.davis@allscripts.com |
FOR IMMEDIATE RELEASE
Allscripts Reports Record Results for 2004
Clinical Software Sales Exceed $25 Million in Fourth Quarter
CHICAGO, IL – February 17, 2005 – Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX), the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare, announced its results for the three months and year ended December 31, 2004.
Total revenue for the three months ended December 31, 2004, was $26.3 million, compared to $23.7 million for the three months ended December 31, 2003. Revenue from clinical software and information services for the three months ended December 31, 2004, was $17.0 million, increasing 44% over the comparable period last year.
Net income for the three months ended December 31, 2004, of $1.4 million or $0.03 per diluted share, compares to a net income of $0.1 million or $0.00 per share, for the same period last year.
As of December 31, 2004, the Company had cash and marketable securities of $128.2 million.
“2004 was an exceptional year for Allscripts,” commented Glen Tullman, Chief Executive Officer of Allscripts. “Providing physicians with the information they need and connectivity to key healthcare stakeholders offers an opportunity to transform the way healthcare is delivered. The demand for our products has never been stronger.”
Total revenue for the twelve months ended December 31, 2004, was $100.8 million, compared to $85.8 million for the twelve months ended December 31, 2003. Revenue from clinical software and information services for the twelve months ended December 31, 2004, was $56.0 million, increasing 41% over the comparable period last year.
Net income for the year ended December 31, 2004, of $3.1 million or $0.07 per diluted share, compares to a net loss of $5.0 million or $0.13 loss per share, for the year ended December 31, 2003.
Allscripts will conduct a conference call on Thursday, February 17, 2005, at 4:30 PM eastern time. The conference call can be accessed by dialing 1-800-374-0526, or via the Internet at www.allscripts.com. A recording of the conference call will be available for review through March 3, 2005, at www.allscripts.com or by calling 1-800-642-1687, ID # 3686443.
About Allscripts Healthcare Solutions
Allscripts Healthcare Solutions (Allscripts) is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The Company’s business groups provide unique solutions that inform, connect, and transform healthcare. The Clinical Solutions Group’s award-winning clinical software applications include electronic health record (EHR), e-prescribing and document imaging solutions. Additionally, Allscripts provides healthcare product education and connectivity solutions for physicians and patients through its Physicians Interactive™ Group and medication fulfillment services through its Medication Services Group. Visit Allscripts on the Web at www.allscripts.com.
This announcement may contain forward-looking statements about Allscripts Healthcare Solutions that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts beliefs and assumptions. Forward-looking statements do not guarantee future performance. Because Allscripts cannot predict all of the risks and uncertainties that may affect it, or control the ones it does predict, Allscripts’ actual results may be materially different from the results expressed in its forward-looking statements. For a more complete discussion of the risks, uncertainties and assumptions that may affect Allscripts, see the Company’s 2003 Annual Report on Form 10-K, available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov.
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(Unaudited)
| Assets | December 31, 2004 |
December 31, 2003 | ||||
| Current assets |
||||||
| Cash and cash equivalents |
$ | 16,972 | $ | 13,336 | ||
| Marketable securities |
22,796 | 3,435 | ||||
| Accounts receivable, net |
21,382 | 18,219 | ||||
| Other receivables |
627 | 237 | ||||
| Inventories |
2,372 | 3,249 | ||||
| Prepaid expenses and other current assets |
3,571 | 3,863 | ||||
| Total current assets |
67,720 | 42,339 | ||||
| Long-term marketable securities |
88,471 | 34,538 | ||||
| Software development costs, net |
6,270 | 4,040 | ||||
| Fixed assets, net |
2,366 | 2,237 | ||||
| Intangible assets, net |
24,546 | 26,359 | ||||
| Other assets |
4,804 | 879 | ||||
| Total assets |
$ | 194,177 | $ | 110,392 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities |
||||||
| Accounts payable |
$ | 5,981 | $ | 6,082 | ||
| Accrued expenses |
12,218 | 7,906 | ||||
| Deferred revenue |
14,607 | 10,959 | ||||
| Total current liabilities |
32,806 | 24,947 | ||||
| Long-term debt |
82,500 | — | ||||
| Other liabilities |
178 | 2,055 | ||||
| Total liabilities |
115,484 | 27,002 | ||||
| Stockholders’ equity |
78,693 | 83,390 | ||||
| Total liabilities and stockholders’ equity |
$ | 194,177 | $ | 110,392 | ||
Stockholders’ equity includes ($11,250) of treasury shares as of December 31, 2004 and $0 as of December 31, 2003.
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
| Three Months Ended December 31, |
For the Year Ended December 31, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Revenue: |
||||||||||||||||
| Prepackaged medications |
$ | 9,342 | $ | 11,894 | $ | 44,733 | $ | 46,172 | ||||||||
| Software and related services |
14,306 | 8,318 | 44,121 | 28,366 | ||||||||||||
| Information services |
2,665 | 3,441 | 11,916 | 11,303 | ||||||||||||
| Total revenue |
26,313 | 23,653 | 100,770 | 85,841 | ||||||||||||
| Cost of revenue: |
||||||||||||||||
| Prepackaged medications |
7,317 | 9,460 | 35,744 | 36,303 | ||||||||||||
| Software and related services |
5,154 | 3,264 | 15,858 | 14,050 | ||||||||||||
| Information services |
1,506 | 1,617 | 6,520 | 4,816 | ||||||||||||
| Total cost of revenue |
13,977 | 14,341 | 58,122 | 55,169 | ||||||||||||
| Gross profit |
12,336 | 9,312 | 42,648 | 30,672 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Selling, general and administrative expenses |
10,337 | 9,084 | 37,653 | 36,058 | ||||||||||||
| Amortization of intangibles |
441 | 388 | 1,752 | 951 | ||||||||||||
| Income (loss) from operations |
1,558 | (160 | ) | 3,243 | (6,337 | ) | ||||||||||
| Interest expense |
(884 | ) | — | (1,717 | ) | — | ||||||||||
| Interest income |
802 | 241 | 1,675 | 1,384 | ||||||||||||
| Other income (expense), net |
(73 | ) | 35 | (93 | ) | (26 | ) | |||||||||
| Income (loss) before income taxes |
1,403 | 116 | 3,108 | (4,979 | ) | |||||||||||
| Income taxes |
— | — | — | — | ||||||||||||
| Net income (loss) |
$ | 1,403 | $ | 116 | $ | 3,108 | ($ | 4,979 | ) | |||||||
| Net income (loss) per share—basic |
$ | 0.04 | $ | 0.00 | $ | 0.08 | ($ | 0.13 | ) | |||||||
| Net income (loss) per share—diluted |
$ | 0.03 | $ | 0.00 | $ | 0.07 | ($ | 0.13 | ) | |||||||
| Weighted average shares of common stock outstanding used in computing basic net income (loss) per share |
38,484 | 38,956 | 38,979 | 38,621 | ||||||||||||
| Weighted average shares of common stock outstanding used in computing diluted net income (loss) per share |
41,439 | 40,700 | 41,592 | 38,621 | ||||||||||||