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) May 8, 2007
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 1-866-358-6869
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 May 8, 2007, the registrant announced its earnings for the three months ended March 31, 2007. Further details are described in the press release issued by the registrant on May 8, 2007, 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 May 8, 2007 | |
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: May 8, 2007 |
By: |
/s/ William J. Davis | ||
| William J. Davis | ||||
| Chief Financial Officer | ||||
INDEX TO EXHIBITS
| Exhibit Number |
Description | |
| 99.1 | Press release issued May 8, 2007 |
Exhibit 99.1
| Allscripts Contacts: |
||
| Dan Michelson |
Bill Davis | |
| Chief Marketing Officer |
Chief Financial Officer | |
| 312-506-1217 |
312-506-1211 | |
| dan.michelson@allscripts.com |
bill.davis@allscripts.com | |
| Todd Stein Senior Manager/Public Relations 312-506-1216 todd.stein@allscripts.com |
||
FOR IMMEDIATE RELEASE
Allscripts Reports First-Quarter 2007 Results
Revenue From Software and Related Services Up 81% Over Prior Year
CHICAGO, IL – May 8, 2007 – Allscripts (Nasdaq: MDRX), the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare, today announced results for the three months ended March 31, 2007.
Total revenue for the three months ended March 31, 2007 was $65.0 million, compared to $42.2 million for the same period last year. Revenue from software and related services for the three months ended March 31, 2007 was $51.2 million, compared to $28.3 million for the same period last year, increasing by approximately 81.0%.
Gross margin percentage was 49.6% for the first quarter of 2007, compared to 47.7% during the first quarter of 2006.
Net income for the three-months ended March 31, 2007 was $4.5 million, or $0.08 per diluted share, compared to net income of $1.3 million, or $0.03 per diluted share, for the same period last year. Reported net income for the three months ended March 31, 2007 and 2006 reflects deal-related amortization of $1.5 million and $0.8 million, respectively, or $0.02 per share for both reported periods, net of tax, and total stock-based compensation of $0.4 million and $0.2 million, respectively, or $0.01 per share for both reported periods, net of tax.
As of March 31, 2007, the Company had cash and marketable securities of $90.0 million.
“Allscripts continued to demonstrate our leadership in the most important segments of the healthcare market, helping our clients to streamline and revitalize their clinical and financial operations and transform healthcare across their communities,” said Glen Tullman, Chief Executive Officer of Allscripts. “Our revenue growth, visibility to sales opportunities and solid bottom-line performance give us confidence in our ability to deliver during the remainder of 2007.”
Allscripts will conduct a conference call on Tuesday, May 8, 2007 at 4:30 PM Eastern Time. The conference call can be accessed by dialing 1-888-644-5594 and requesting the Allscripts earnings call, or
via the Internet at www.allscripts.com. A recording of the conference call will be available for a period of two weeks following the call at www.allscripts.com or by calling 1-800-642-1687, ID # 5830038.
About Allscripts
Allscripts is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The Company’s business units provide unique solutions that inform, connect and transform healthcare. Allscripts award-winning software applications include electronic health records, practice management, e-prescribing, document imaging, emergency department, and care management solutions, all offered through the Company’s Clinical Solutions units. Additionally, Allscripts provides clinical product education and connectivity solutions for physicians and patients through its Physicians Interactive™ unit, and medication fulfillment services through its Medication Services unit. 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 2006 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)
| March 31, 2007 |
December 31, 2006 | |||||
| Assets |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 44,221 | $ | 42,461 | ||
| Marketable securities |
20,653 | 14,553 | ||||
| Accounts receivable, net |
57,380 | 55,579 | ||||
| Deferred taxes, net |
29,884 | 27,437 | ||||
| Inventories |
4,257 | 3,247 | ||||
| Prepaid expenses and other current assets |
12,980 | 10,620 | ||||
| Total current assets |
169,375 | 153,897 | ||||
| Long-term marketable securities |
25,142 | 26,024 | ||||
| Fixed assets, net |
15,129 | 14,094 | ||||
| Software development costs, net |
15,871 | 12,285 | ||||
| Intangible assets, net |
75,488 | 78,050 | ||||
| Goodwill |
186,846 | 188,261 | ||||
| Other assets |
4,889 | 4,999 | ||||
| Total assets |
$ | 492,740 | $ | 477,610 | ||
| Liabilities and Stockholders’ Equity |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ | 7,585 | $ | 9,294 | ||
| Accrued liabilities |
24,049 | 26,546 | ||||
| Deferred revenue |
43,562 | 35,549 | ||||
| Current portion of long-term debt |
263 | 258 | ||||
| Total current liabilities |
75,459 | 71,647 | ||||
| Long-term debt |
85,373 | 85,441 | ||||
| Deferred income taxes |
3,297 | 3,915 | ||||
| Other liabilities |
4,729 | 357 | ||||
| Total liabilities |
168,858 | 161,360 | ||||
| Stockholders’ equity |
323,882 | 316,250 | ||||
| Total liabilities and stockholders’ equity |
$ | 492,740 | $ | 477,610 | ||
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
| Three Months Ended March 31, |
||||||||
| 2007 | 2006 | |||||||
| Revenue: |
||||||||
| Software and related services |
$ | 51,240 | $ | 28,314 | ||||
| Prepackaged medications |
10,229 | 11,510 | ||||||
| Information services |
3,553 | 2,380 | ||||||
| Total revenue |
65,022 | 42,204 | ||||||
| Cost of revenue: |
||||||||
| Software and related services |
22,382 | 11,481 | ||||||
| Prepackaged medications |
8,308 | 9,326 | ||||||
| Information services |
2,059 | 1,272 | ||||||
| Total cost of revenue (a) |
32,749 | 22,079 | ||||||
| Gross profit |
32,273 | 20,125 | ||||||
| Operating expenses: |
||||||||
| Selling, general and administrative expenses (b) |
22,374 | 16,808 | ||||||
| Amortization of intangibles |
2,576 | 1,370 | ||||||
| Income from operations |
7,323 | 1,947 | ||||||
| Interest expense |
(933 | ) | (895 | ) | ||||
| Interest income and other, net |
1,037 | 1,081 | ||||||
| Income before income taxes |
7,427 | 2,133 | ||||||
| Income taxes |
(2,960 | ) | (810 | ) | ||||
| Net income |
$ | 4,467 | $ | 1,323 | ||||
| Net income per share – basic |
$ | 0.08 | $ | 0.03 | ||||
| Net income per share – diluted |
$ | 0.08 | $ | 0.03 | ||||
| Weighted average shares of common stock outstanding used in computing basic net income per share |
54,639 | 44,903 | ||||||
| Weighted average shares of common stock outstanding used in computing diluted net income per share (c) |
64,462 | 47,974 | ||||||
| (a) | Includes stock-based compensation of $82 and $0 for the three months ended March 31, 2007 and 2006, respectively. |
| (b) | Includes stock-based compensation of $574 and $407 for the three months ended March 31, 2007 and 2006, respectively. |
| (c) | Weighted average diluted shares for the three months ended March 31, 2007 include 7,329 common shares related to the Company’s 3.5% Senior Convertible Notes. Such shares were antidilutive for the three months ended March 31, 2006. Interest expense, net of tax, totaling $523 has been added back to net income for the net income per diluted share calculation for the three months ended March 31, 2007. |