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) October 26, 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 October 26, 2005, the registrant announced its earnings for the three and nine months ended September 30, 2005. Further details are described in the press release issued by the registrant on October 26, 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 October 26, 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: October 26, 2005 |
By: |
/s/ William J. Davis | ||
| William J. Davis | ||||
| Chief Financial Officer | ||||
INDEX TO EXHIBITS
| Exhibit Number |
Description | |
| 99.1 | Press Release issued October 26, 2005 |
Exhibit 99.1
| Allscripts Contacts: 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 Third Quarter 2005 Results
Company Posts Record Earnings and 50% Increase in
Software-Related Revenue Over Prior Year
CHICAGO, IL – October 26, 2005 – Allscripts (Nasdaq: MDRX), the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare, announced results for the three and nine months ended September 30, 2005.
Total revenue for the three months ended September 30, 2005 was $30.6 million, compared to $25.7 million for the same period last year. Revenue from software and related services for the three months ended September 30, 2005 was $16.5 million, compared to $11.0 million for the same period last year, increasing by 50%.
Gross margin percentage was 43.3% for the third quarter of 2005, compared to 43.1% during the third quarter of 2004.
Net income for the three months ended September 30, 2005 was $2.9 million, or $0.07 per diluted share, compared to net income of $0.7 million, or $0.02 per diluted share, for the same period last year, a net income increase of 296% and a new record for the Company.
As of September 30, 2005, the Company had cash and marketable securities of $136.1 million.
“Electronic health records are the key ingredient for transforming healthcare in the United States and Allscripts is perfectly positioned to benefit as physicians embrace clinical software to care for their patients,” commented Glen Tullman, Chief Executive Officer of Allscripts. “I am pleased with our third quarter results, and look forward to the fourth quarter, which traditionally represents the strongest sales quarter in our industry.”
Total revenue for the nine months ended September 30, 2005 was $86.4 million, compared to $74.5 million for the same period last year. Revenue from software and related services for the nine months ended September 30, 2005 was $46.9 million, compared to $29.8 million for the same period last year, increasing by 57%.
Total gross margin percentage was 45.5% for the nine months ended September 30, 2005, compared to 40.7% for the nine months ended September 30, 2004.
Net income for the nine months ended September 30, 2005 was $6.3 million, or $0.15 per diluted share, compared to net income of $1.7 million, or $0.04 per diluted share, for the same period last year.
Allscripts will conduct a conference call on Wednesday, October 26, 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 November 9, 2005, at www.allscripts.com or by calling 1-800-642-1687, ID # 1251811.
About Allscripts
Allscripts is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The Company provides unique solutions that inform, connect, and transform healthcare. The Clinical Solutions Group’s award-winning clinical software applications include electronic health record, e-prescribing and document imaging solutions. Allscripts’ Physicians Interactive Group provides clinical product education and connectivity solutions for physicians and patients. The Company’s Medication Services Group provides medication fulfillment services. To learn more, 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 2004 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)
| September 30, 2005 |
December 31, 2004 | |||
| (Unaudited) | ||||
| Assets |
||||
| Current Assets |
||||
| Cash and cash equivalents |
$37,719 | $16,972 | ||
| Marketable securities |
56,907 | 22,796 | ||
| Accounts receivable, net |
26,765 | 21,382 | ||
| Other receivables |
565 | 627 | ||
| Inventories |
1,935 | 2,372 | ||
| Prepaid expenses and other current assets |
4,889 | 3,571 | ||
| Total current assets |
128,780 | 67,720 | ||
| Long-term marketable securities |
41,447 | 88,471 | ||
| Software development costs, net |
6,423 | 6,270 | ||
| Fixed assets, net |
2,597 | 2,366 | ||
| Intangible assets, net |
23,332 | 24,546 | ||
| Other assets |
5,307 | 4,804 | ||
| Total assets |
$207,886 | $194,177 | ||
| Liabilities and Stockholders’ Equity |
||||
| Current liabilities |
||||
| Accounts payable |
$4,915 | $5,981 | ||
| Accrued expenses |
11,154 | 12,218 | ||
| Deferred revenue |
15,103 | 14,607 | ||
| Total current liabilities |
31,172 | 32,806 | ||
| Other liabilities |
359 | 178 | ||
| Long-term debt |
82,500 | 82,500 | ||
| Total liabilities |
114,031 | 115,484 | ||
| Stockholders’ equity |
93,855 | 78,693 | ||
| Total liabilities and stockholders’ equity |
$207,886 | $194,177 | ||
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2005 |
2004 |
2005 |
2004 |
|||||||||||||
| Revenue: |
||||||||||||||||
| Prepackaged medications |
$ | 11,496 | $ | 11,811 | $ | 32,820 | $ | 35,391 | ||||||||
| Software and related services |
16,462 | 10,986 | 46,917 | 29,815 | ||||||||||||
| Information services |
2,680 | 2,897 | 6,630 | 9,251 | ||||||||||||
| Total revenue |
30,638 | 25,694 | 86,367 | 74,457 | ||||||||||||
| Cost of revenue: |
||||||||||||||||
| Prepackaged medications |
9,753 | 9,621 | 27,173 | 28,427 | ||||||||||||
| Software and related services |
6,114 | 3,581 | 16,599 | 10,704 | ||||||||||||
| Information services |
1,511 | 1,415 | 3,287 | 5,014 | ||||||||||||
| Total cost of revenue |
17,378 | 14,617 | 47,059 | 44,145 | ||||||||||||
| Gross profit |
13,260 | 11,077 | 39,308 | 30,312 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Selling, general and administrative expenses |
10,025 | 9,453 | 31,840 | 27,316 | ||||||||||||
| Amortization of intangibles |
436 | 437 | 1,308 | 1,311 | ||||||||||||
| Income from operations |
2,799 | 1,187 | 6,160 | 1,685 | ||||||||||||
| Interest expense |
(880 | ) | (833 | ) | (2,636 | ) | (833 | ) | ||||||||
| Interest income |
1,064 | 436 | 2,898 | 873 | ||||||||||||
| Other income (expense), net |
(43 | ) | (48 | ) | (115 | ) | (20 | ) | ||||||||
| Income before income taxes |
2,940 | 742 | 6,307 | 1,705 | ||||||||||||
| Income taxes |
— | — | — | — | ||||||||||||
| Net income |
$2,940 | $742 | $6,307 | $1,705 | ||||||||||||
| Net income per share—basic |
$0.07 | $0.02 | $0.16 | $0.04 | ||||||||||||
| Net income per share—diluted |
$0.07 | $0.02 | $0.15 | $0.04 | ||||||||||||
| Weighted average shares of common stock outstanding used in computing basic net income per share |
40,895 | 38,803 | 39,938 | 39,146 | ||||||||||||
| Weighted average shares of common stock outstanding used in computing diluted net income per share |
44,223 | 41,164 | 43,003 | 41,760 | ||||||||||||