Exhibit 99.1
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Allscripts Contacts: | | | | |
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Dan Michelson | | | | Bill Davis |
Chief Marketing Officer | | | | Chief Financial Officer |
312-506-1217 | | | | 312-506-1211 |
dan.michelson@allscripts.com | | | | bill.davis@allscripts.com |
FOR IMMEDIATE RELEASE
Allscripts Reports Record Results
Software and Related Services Revenue Increase 98% Over Prior Year
CHICAGO, IL – May 2, 2006 –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, 2006.
Total revenue for the three months ended March 31, 2006 was a record $42.2 million, compared to $26.2 million for the same period last year. Revenue from software and related services for the three months ended March 31, 2006 was a record $28.3 million, compared to $14.3 million for the same period last year, increasing by approximately 98%.
Gross margin percentage was 47.7% for the first quarter of 2006, compared to 46.4% during the first quarter of 2005.
On March 2, 2006, Allscripts finalized the acquisition of A4 Health Systems, Inc. The Company’s results for the three months ended March 31, 2006 include A4’s results for March.
Cash earnings for the period ended March 31, 2006 was $6.4 million, or $0.13 per diluted share, compared to $2.9 million, or $0.07 per diluted share, for the same period last year, an increase of approximately 117%. Cash earnings are comprised of operating income giving effect to the add-back of depreciation and amortization, stock-based compensation, one-time A4 integration costs, and net interest income or expense. A reconciliation of cash earnings and cash earnings per diluted share to GAAP earnings and GAAP earnings per diluted share is included as part of this press release.
Net income for the three-months ended March 31, 2006 was $1.3 million, or $0.03 per diluted share, compared to net income of $1.3 million, or $0.03 per diluted share, for the same period last year.
As of March 31, 2006, the Company had cash and marketable securities of $66.8 million. This amount reflects $141 million of net proceeds received in February 2006 related to the issuance of 8.4 million shares of Allscripts common stock, a total of approximately $231 million paid in connection with the acquisition of A4, and $21.1 million paid to IDX Investment Corporation, a wholly owned subsidiary of GE, to repurchase 1.25 million shares of Allscripts common stock.
“Our first quarter results confirm the continuing momentum for our solutions in the market,” said Glen Tullman, Chief Executive Officer of Allscripts. “In addition, our acquisition of A4 Health Systems,
which we announced and completed during the quarter, adds substantially to our market position, supplements our sales, accelerates earnings, and doubles the size of our sales force, while broadening our product portfolio and opening up new markets for us. The bottom line is that our leadership position in the market has never been more solid and our ability to deliver has never been more promising.”
Allscripts will conduct a conference call on Tuesday, May 2, 2006 at 4:30 PM eastern time. The conference call can be accessed by dialing 1-888-644-5594, or via the Internet atwww.allscripts.com. A recording of the conference call will be available for review through May 16, 2006, atwww.allscripts.com or by calling 1-800-642-1687, ID # 8102313.
About Allscripts
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 software applications include electronic health record, practice management, e-prescribing, document imaging, emergency department and care management solutions. Additionally, Allscripts provides clinical product education and connectivity solutions for physicians and patients through its Physicians Interactive™ Group and medication fulfillment services through its Medication Services Group. To learn more, visit Allscripts 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 2005 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)
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| | March 31, 2006 | | December 31, 2005 |
Assets | | | | |
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Current assets: | | | | |
Cash and cash equivalents | | $35,225 | | $60,905 |
Marketable securities | | 13,726 | | 54,408 |
Accounts receivable, net | | 43,366 | | 29,244 |
Other receivables | | 162 | | 502 |
Deferred taxes, net | | 7,200 | | — |
Inventories | | 4,063 | | 2,174 |
Prepaid expenses and other current assets | | 6,877 | | 5,811 |
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Total current assets | | 110,619 | | 153,044 |
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Long-term marketable securities | | 17,812 | | 30,750 |
Fixed assets, net | | 12,182 | | 2,753 |
Software development costs, net | | 6,777 | | 6,409 |
Deferred taxes, net | | 28,232 | | — |
Intangible assets, net | | 86,907 | | 9,151 |
Goodwill | | 181,104 | | 13,760 |
Other assets | | 5,779 | | 5,097 |
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Total assets | | $449,412 | | $220,964 |
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Liabilities and Stockholders’ Equity | | | | |
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Current liabilities: | | | | |
Accounts payable | | $12,144 | | $8,630 |
Accrued liabilities | | 22,048 | | 13,791 |
Deferred revenue | | 37,459 | | 17,306 |
Current portion of long-term debt | | 243 | | — |
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Total current liabilities | | 71,894 | | 39,727 |
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Long-term debt | | 85,637 | | 82,500 |
Other liabilities | | 309 | | 318 |
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Total liabilities | | 157,840 | | 122,545 |
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Stockholders’ equity | | 291,572 | | 98,419 |
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Total liabilities and stockholders’ equity | | $449,412 | | $220,964 |
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Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
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| | Three Months Ended March 31, | |
| | 2006 | | | 2005 | |
Revenue: | | | | | | | | |
Software and related services | | $ | 28,314 | | | $ | 14,310 | |
Prepackaged medications | | | 11,510 | | | | 9,835 | |
Information services | | | 2,380 | | | | 2,050 | |
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Total revenue | | | 42,204 | | | | 26,195 | |
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Cost of revenue: | | | | | | | | |
Software and related services | | | 11,481 | | | | 5,124 | |
Prepackaged medications | | | 9,326 | | | | 7,723 | |
Information services | | | 1,272 | | | | 1,181 | |
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Total cost of revenue | | | 22,079 | | | | 14,028 | |
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Gross profit | | | 20,125 | | | | 12,167 | |
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Operating expenses: | | | | | | | | |
Selling, general and administrative expenses | | | 16,401 | | | | 10,357 | |
Stock-based compensation expense | | | 407 | | | | — | |
Amortization of intangibles | | | 1,370 | | | | 436 | |
| | | | | | | | |
Income from operations | | | 1,947 | | | | 1,374 | |
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Interest expense | | | (895 | ) | | | (907 | ) |
Interest income | | | 1,199 | | | | 877 | |
Other expense, net | | | (118 | ) | | | (10 | ) |
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Income before income taxes | | | 2,133 | | | | 1,334 | |
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Income taxes | | | 810 | | | | — | |
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Net income | | | $1,323 | | | | $1,334 | |
| | | | | | | | |
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Net income per share - basic | | | $0.03 | | | | $0.03 | |
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Net income per share - diluted | | | $0.03 | | | | $0.03 | |
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Weighted average shares of common stock outstanding used in computing basic net income per share | | | 44,903 | | | | 39,073 | |
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Weighted average shares of common stock outstanding used in computing diluted net income per share | | | 47,974 | | | | 42,171 | |
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Allscripts Healthcare Solutions, Inc.
Reconciliation of Non-GAAP Measure of Cash Earnings and Cash Earnings Per Share
(amounts in thousands, except per-share amounts)
(Unaudited)
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| | Three Months Ended March 31, | |
| | 2006 | | | 2005 | |
Net income | | $1,323 | | | $1,334 | |
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Add back: | | | | | | |
Income taxes | | 810 | | | — | |
Interest income (expense) and other, net | | (186 | ) | | 40 | |
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Operating income | | 1,947 | | | 1,374 | |
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Add back: | | | | | | |
Depreciation and amortization | | 2,703 | | | 1,600 | |
Stock-based compensation | | 407 | | | — | |
A4 Health Systems integration costs | | 1,021 | | | — | |
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Adjusted operating income | | $6,078 | | | $2,974 | |
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Interest income (expense), net | | 304 | | | (30 | ) |
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Cash earnings | | $6,382 | | | $2,944 | |
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Cash earnings per share - basic | | $0.14 | | | $0.08 | |
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Cash earnings per share - diluted | | $0.13 | | | $0.07 | |
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Weighted average shares of common stock outstanding used in computing basic cash earnings per share | | 44,903 | | | 39,073 | |
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Weighted average shares of common stock outstanding used in computing diluted cash earnings per share | | 47,974 | | | 42,171 | |
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