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 3, 2019
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
(Exact name of Registrant as Specified in Its Charter)
|
Delaware |
001-35547 |
36-4392754 |
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
222 Merchandise Mart Plaza, Suite 2024,
Chicago, Illinois 60654
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: (800) 334-8534
Not Applicable
(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:
|
☐ |
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)) |
Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Securities registered pursuant to Section 12(b) of the Act:
|
Title of Each Class |
Trading Symbol |
Name of Each Exchange on which Registered |
|
Common Stock, par value $0.01 per share |
MDRX |
The Nasdaq Stock Market LLC (Nasdaq Global Select Market) |
Item 7.01.Regulation FD Disclosure.
On May 2, 2019, Allscripts announced that it changed the presentation of its reportable segments effective with the first quarter of 2019 to include a Provider segment, comprising of Allscripts’ core integrated clinical software applications, financial management and patient engagement solutions, and a Veradigm segment, which primarily focuses on payer and life sciences customers. Certain supplemental financial information related to Allscripts’ change in reportable segments is attached hereto as Exhibit 99.1. The supplemental financial information does not revise Allscripts’ previously reported consolidated financial information, nor does it reflect any subsequent information or events, other than as required to reflect the change in reportable segments.
The information furnished pursuant to this Item shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01.Financial Statements and Exhibits.
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(d) |
Exhibits. |
The following exhibit is furnished herewith:
|
Description |
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99.1 |
1
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.
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ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. |
|
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Date: May 3, 2019 |
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By: |
/s/ Dennis M. Olis |
|
|
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Dennis M. Olis Chief Financial Officer |
2
Exhibit 99.1
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Segment Supplemental Financial Data |
|
First Quarter 2019 |
|
May 3, 2019 |
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 in this supplemental package data related to its reportable segments non-GAAP revenue, gross profit and gross margin, 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 used throughout this document are presented below:
|
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• |
Non-GAAP revenue consists of GAAP revenue as reported and adds back recognized deferred revenue from the EIS business, Practice Fusion, HealthGrid, NantHealth's provider/patient solutions business and non-material consolidated affiliates that is eliminated for GAAP purposes due to purchase accounting adjustments. |
|
|
• |
Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related deferred revenue adjustments, acquisition-related amortization, stock-based compensation expense, non-cash impairment charges and transaction, legal and other costs. Non-GAAP gross margin consists of non-GAAP gross profit as a percentage of non-GAAP revenue in the applicable period. |
Management believes that non-GAAP revenue, gross profit and gross margin provide useful supplemental information to management and investors regarding the underlying performance of Allscripts business operations. Acquisition accounting adjustments made 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 non-GAAP gross profit to measure achievement under Allscripts stock and cash incentive compensation plans. Note, however, that non-GAAP gross profit is a performance measure only, and it does not provide any measure of cash flow or liquidity. 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 reconciliations of non-GAAP financial measures with GAAP financial measures contained within the company's press release dated May 2, 2019.
2
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Allscripts Healthcare Solutions, Inc. |
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Non-GAAP Financial Information |
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(In millions) |
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|||||||||||||||||||||||||||||||||||||||||||
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(unaudited) |
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2017 |
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2018 |
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2019 |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Total |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Total |
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Q1 |
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|||||||||||
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Provider, as reported |
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Revenue |
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$ |
318.7 |
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|
$ |
333.9 |
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|
$ |
340.5 |
|
|
$ |
440.5 |
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|
$ |
1,433.6 |
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|
$ |
410.4 |
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|
$ |
413.5 |
|
|
$ |
402.2 |
|
|
$ |
389.9 |
|
|
$ |
1,616.0 |
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|
$ |
392.6 |
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Gross Profit |
|
$ |
142.0 |
|
|
$ |
154.5 |
|
|
$ |
155.9 |
|
|
$ |
214.4 |
|
|
$ |
666.8 |
|
|
$ |
185.7 |
|
|
$ |
184.1 |
|
|
$ |
175.4 |
|
|
$ |
164.8 |
|
|
$ |
710.0 |
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|
$ |
165.8 |
|
|
Gross Margin |
|
|
44.6 |
% |
|
|
46.3 |
% |
|
|
45.8 |
% |
|
|
48.7 |
% |
|
|
46.5 |
% |
|
|
45.2 |
% |
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|
44.5 |
% |
|
|
43.6 |
% |
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|
42.3 |
% |
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|
43.9 |
% |
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|
42.2 |
% |
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Veradigm, as reported |
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Revenue |
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$ |
13.5 |
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|
$ |
12.7 |
|
|
$ |
23.5 |
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|
$ |
20.2 |
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|
$ |
69.9 |
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|
$ |
22.8 |
|
|
$ |
33.5 |
|
|
$ |
38.8 |
|
|
$ |
45.2 |
|
|
$ |
140.3 |
|
|
$ |
35.1 |
|
|
Gross Profit |
|
$ |
7.0 |
|
|
$ |
7.0 |
|
|
$ |
17.5 |
|
|
$ |
12.2 |
|
|
$ |
43.7 |
|
|
$ |
15.1 |
|
|
$ |
23.3 |
|
|
$ |
27.7 |
|
|
$ |
34.6 |
|
|
$ |
100.7 |
|
|
$ |
22.4 |
|
|
Gross Margin |
|
|
51.9 |
% |
|
|
55.1 |
% |
|
|
74.5 |
% |
|
|
60.4 |
% |
|
|
62.5 |
% |
|
|
66.2 |
% |
|
|
69.6 |
% |
|
|
71.4 |
% |
|
|
76.5 |
% |
|
|
71.8 |
% |
|
|
63.8 |
% |
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Corporate, non-GAAP |
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Revenue |
|
$ |
8.3 |
|
|
$ |
1.3 |
|
|
$ |
2.4 |
|
|
$ |
1.2 |
|
|
$ |
13.2 |
|
|
$ |
2.2 |
|
|
$ |
2.1 |
|
|
$ |
(1.2 |
) |
|
$ |
5.8 |
|
|
$ |
8.9 |
|
|
$ |
4.9 |
|
|
Gross Profit |
|
$ |
6.0 |
|
|
$ |
(0.7 |
) |
|
$ |
(2.4 |
) |
|
$ |
(10.5 |
) |
|
$ |
(7.6 |
) |
|
$ |
1.1 |
|
|
$ |
(1.0 |
) |
|
$ |
(3.4 |
) |
|
$ |
0.4 |
|
|
$ |
(2.9 |
) |
|
$ |
(1.7 |
) |
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|
Total Allscripts, non-GAAP |
|
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|
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|
|
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|
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|
|
|
|
|
|
Revenue |
|
$ |
340.5 |
|
|
$ |
347.9 |
|
|
$ |
366.4 |
|
|
$ |
461.9 |
|
|
$ |
1,516.7 |
|
|
$ |
435.4 |
|
|
$ |
449.1 |
|
|
$ |
439.8 |
|
|
$ |
440.9 |
|
|
$ |
1,765.2 |
|
|
$ |
432.6 |
|
|
Gross Profit |
|
$ |
155.0 |
|
|
$ |
160.8 |
|
|
$ |
171.0 |
|
|
$ |
216.1 |
|
|
$ |
702.9 |
|
|
$ |
201.9 |
|
|
$ |
206.4 |
|
|
$ |
199.7 |
|
|
$ |
199.8 |
|
|
$ |
807.8 |
|
|
$ |
186.5 |
|
|
Gross Margin |
|
|
45.5 |
% |
|
|
46.2 |
% |
|
|
46.7 |
% |
|
|
46.8 |
% |
|
|
46.3 |
% |
|
|
46.4 |
% |
|
|
46.0 |
% |
|
|
45.4 |
% |
|
|
45.3 |
% |
|
|
45.8 |
% |
|
|
43.1 |
% |
Note: Amortization of acquisition-related deferred revenue adjustments, amortization of intangible assets, stock-based compensation expense, asset impairment charges and transaction, legal and other costs are not included in our reportable segment results and are included in Corporate within our segment disclosure. This presentation matches our historical GAAP presentation of these types of expenses.
3
|
Allscripts Healthcare Solutions, Inc. |
|
|||||||||||||||||||||||||||||||||||||||||||
|
Non-GAAP Financial Information |
|
|||||||||||||||||||||||||||||||||||||||||||
|
(In millions) |
|
|||||||||||||||||||||||||||||||||||||||||||
|
(unaudited) |
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|
2017 |
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|
2018 |
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2019 |
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|||||||||||||||||||||||||||||||||||
|
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Total |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Total |
|
|
Q1 |
|
|||||||||||
|
Corporate |
|
|
|
|
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|
|
|
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|
|
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|
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|
|
|
|
|
|
|
Revenue, as reported |
|
$ |
10.9 |
|
|
$ |
3.5 |
|
|
$ |
4.1 |
|
|
$ |
(24.3 |
) |
|
$ |
(5.8 |
) |
|
$ |
0.6 |
|
|
$ |
(5.5 |
) |
|
$ |
(8.6 |
) |
|
$ |
7.2 |
|
|
$ |
(6.3 |
) |
|
$ |
4.3 |
|
|
Acquisition-related deferred revenue adjustments |
|
|
(2.6 |
) |
|
|
(2.2 |
) |
|
|
(1.7 |
) |
|
|
25.5 |
|
|
|
19.0 |
|
|
|
1.6 |
|
|
|
7.6 |
|
|
|
7.4 |
|
|
|
(1.4 |
) |
|
|
15.2 |
|
|
|
0.6 |
|
|
Non-GAAP Revenue |
|
$ |
8.3 |
|
|
$ |
1.3 |
|
|
$ |
2.4 |
|
|
$ |
1.2 |
|
|
$ |
13.2 |
|
|
$ |
2.2 |
|
|
$ |
2.1 |
|
|
$ |
(1.2 |
) |
|
$ |
5.8 |
|
|
$ |
8.1 |
|
|
$ |
4.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit, as reported |
|
$ |
(4.8 |
) |
|
$ |
(11.3 |
) |
|
$ |
(11.2 |
) |
|
$ |
(50.4 |
) |
|
$ |
(77.7 |
) |
|
$ |
(16.0 |
) |
|
$ |
(33.6 |
) |
|
$ |
(25.2 |
) |
|
$ |
(11.3 |
) |
|
$ |
(86.1 |
) |
|
$ |
(14.1 |
) |
|
Acquisition-related deferred revenue adjustments |
|
|
- |
|
|
|
0.3 |
|
|
|
0.6 |
|
|
|
28.6 |
|
|
|
29.5 |
|
|
|
3.9 |
|
|
|
9.9 |
|
|
|
9.6 |
|
|
|
0.9 |
|
|
|
24.3 |
|
|
|
0.6 |
|
|
Acquisition-related amortization |
|
|
7.9 |
|
|
|
8.3 |
|
|
|
7.1 |
|
|
|
9.8 |
|
|
|
33.1 |
|
|
|
10.2 |
|
|
|
9.3 |
|
|
|
9.5 |
|
|
|
9.5 |
|
|
|
38.5 |
|
|
|
9.0 |
|
|
Stock-based compensation expense |
|
|
2.9 |
|
|
|
2.0 |
|
|
|
1.1 |
|
|
|
1.4 |
|
|
|
7.4 |
|
|
|
2.0 |
|
|
|
1.6 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
6.2 |
|
|
|
1.6 |
|
|
Transaction, legal and other costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
1.0 |
|
|
|
11.8 |
|
|
|
1.2 |
|
|
|
0.2 |
|
|
|
14.2 |
|
|
|
1.2 |
|
|
Non-GAAP Gross Profit |
|
$ |
6.0 |
|
|
$ |
(0.7 |
) |
|
$ |
(2.4 |
) |
|
$ |
(10.5 |
) |
|
$ |
(7.6 |
) |
|
$ |
1.1 |
|
|
$ |
(1.0 |
) |
|
$ |
(3.4 |
) |
|
$ |
0.4 |
|
|
$ |
(2.3 |
) |
|
$ |
(1.7 |
) |
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
Total Allscripts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, as reported |
|
$ |
343.1 |
|
|
$ |
350.1 |
|
|
$ |
368.1 |
|
|
$ |
436.4 |
|
|
$ |
1,497.7 |
|
|
$ |
433.8 |
|
|
$ |
441.5 |
|
|
$ |
432.4 |
|
|
$ |
442.3 |
|
|
$ |
1,750.0 |
|
|
$ |
432.0 |
|
|
Acquisition-related deferred revenue adjustments |
|
|
(2.6 |
) |
|
|
(2.2 |
) |
|
|
(1.7 |
) |
|
|
25.5 |
|
|
|
19.0 |
|
|
|
1.6 |
|
|
|
7.6 |
|
|
|
7.4 |
|
|
|
(1.4 |
) |
|
|
15.2 |
|
|
|
0.6 |
|
|
Non-GAAP Revenue |
|
$ |
340.5 |
|
|
$ |
347.9 |
|
|
$ |
366.4 |
|
|
$ |
461.9 |
|
|
$ |
1,516.7 |
|
|
$ |
435.4 |
|
|
$ |
449.1 |
|
|
$ |
439.8 |
|
|
$ |
440.9 |
|
|
$ |
1,765.2 |
|
|
$ |
432.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit, as reported |
|
$ |
144.2 |
|
|
$ |
150.2 |
|
|
$ |
162.2 |
|
|
$ |
176.2 |
|
|
$ |
632.8 |
|
|
$ |
184.8 |
|
|
$ |
173.8 |
|
|
$ |
177.9 |
|
|
$ |
188.1 |
|
|
$ |
724.6 |
|
|
$ |
174.1 |
|
|
Acquisition-related deferred revenue adjustments |
|
|
- |
|
|
|
0.3 |
|
|
|
0.6 |
|
|
|
28.6 |
|
|
|
29.5 |
|
|
|
3.9 |
|
|
|
9.9 |
|
|
|
9.6 |
|
|
|
0.9 |
|
|
|
24.3 |
|
|
|
0.6 |
|
|
Acquisition-related amortization |
|
|
7.9 |
|
|
|
8.3 |
|
|
|
7.1 |
|
|
|
9.8 |
|
|
|
33.1 |
|
|
|
10.2 |
|
|
|
9.3 |
|
|
|
9.5 |
|
|
|
9.5 |
|
|
|
38.5 |
|
|
|
9.0 |
|
|
Stock-based compensation expense |
|
|
2.9 |
|
|
|
2.0 |
|
|
|
1.1 |
|
|
|
1.4 |
|
|
|
7.4 |
|
|
|
2.0 |
|
|
|
1.6 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
6.2 |
|
|
|
1.6 |
|
|
Transaction, legal and other costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
1.0 |
|
|
|
11.8 |
|
|
|
1.2 |
|
|
|
0.2 |
|
|
|
14.2 |
|
|
|
1.2 |
|
|
Non-GAAP Gross Profit |
|
$ |
155.0 |
|
|
$ |
160.8 |
|
|
$ |
171.0 |
|
|
$ |
216.1 |
|
|
$ |
702.9 |
|
|
$ |
201.9 |
|
|
$ |
206.4 |
|
|
$ |
199.7 |
|
|
$ |
199.8 |
|
|
$ |
807.8 |
|
|
$ |
186.5 |
|
4