Exhibit 99.1
For Further Information, Contact: | ||
Quality Systems, Inc. | Susan J. Lewis | |
18111 Von Karman Avenue, Suite 700 | Phone: (303) 804-0494 | |
Irvine, CA 92612 | slewis@qsii.com | |
Phone: (949) 255-2600 | ||
Paul Holt, CFO,pholt@qsii.com |
FOR IMMEDIATE RELEASE
MAY 17, 2012
QUALITY SYSTEMS, INC. REPORTS FISCAL 2012
FOURTH QUARTER AND YEAR-END RESULTS
IRVINE, Calif. … May 17, 2012…Quality Systems, Inc. (NASDAQ:QSII) announced today results for its fiscal year and fourth quarter ended March 31, 2012.
The Company reported revenues of $429.8 million for the fiscal year ended March 31, 2012, an increase of 22 percent compared to $353.4 million for the fiscal year ended March 31, 2011. Net income for fiscal 2012 was $75.7 million, a 23 percent increase versus net income of $61.6 million for the year ago period. Fully diluted earnings per share for the fiscal year ended 2012 was $1.28, a 21 percent increase from $1.06 for fiscal 2011.
Revenues for the fiscal 2012 fourth quarter were $109.0 million, up 12 percent compared to $97.1 million in the year ago period. Net income for the fiscal 2012 fourth quarter was $15.1 million compared to $18.6 million in the same period a year ago. Fully diluted earnings per share was $0.25 in the fourth quarter of fiscal 2012 versus $0.32 for the fiscal 2011 fourth quarter.
“We are pleased with the results for fiscal 2012, which demonstrate strong growth in both revenues and profits compared with the previous fiscal year. Our performance for the fiscal 2012 fourth quarter was impacted by delays in the closing of several fourth quarter opportunities as well as recognition of revenue related to a large customer implementation program,” said Steven T. Plochocki, chief executive officer. “Looking ahead, we remain confident about the growth opportunities, as evidenced by our recent guidance for the 2013 fiscal year. We have stated that we expect revenues to increase 20 - 24 percent and earnings per share to grow 20 - 25 percent.”
Quality Systems will host a conference call to discuss its year-end and fiscal 2012 fourth quarter results on Thursday, May 17, 2012 at 10:00 AM ET (7:00 AM PT). All participants should dial 877-941-8609 at least ten minutes prior to the start of the call. International callers should dial 480-629-9692. To hear a live Web simulcast or to listen to the archived webcast following completion of the call, please visit the Company’s website atwww.qsii.com, click on the “Investors” tab, then select “Conference Calls,” to access the link to the call. To listen to a telephone replay of the conference call, please dial 800-406-7325 or 303-590-3030 and enter reservation identification number 4539176. The replay will be available from approximately 12:00 PM ET on Thursday, May 17, 2012, through 11:59 PM ET on Thursday, May 24, 2012.
A transcript of the conference call will be made available on the Company’s website atwww.qsii.com.
About Quality Systems, Inc.
Irvine, Calif.-basedQuality Systems, Inc. and itsNextGen Healthcare subsidiary develop and market computer-based practice management, electronic health records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices and small hospitals. Visitwww.qsii.com andwww.nextgen.com for additional information.
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements within the meaning of the federal securities laws, including but not limited to, statements regarding future events, developments, the Company’s future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue, net income and earnings per share). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements are set forth in Part I, Item A of our most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2011, including but not limited to: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company’s ability or inability to attract and retain qualified personnel; possible regulation of the Company’s software by the U.S. Food and Drug Administration; changes of accounting estimates and assumptions used to prepare the prior periods’ financial statements; and general economic conditions. A significant portion of the Company’s quarterly sales of software product licenses and computer hardware is concluded in the last month of a fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company’s revenues and operating results are very difficult to forecast. A major portion of the Company’s costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company’s period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
FINANCIAL TABLES ATTACHED
QUALITY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, 2012 | March 31, 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 134,444 | $ | 116,617 | ||||
Restricted cash | 1,962 | 3,787 | ||||||
Marketable securities | 4,987 | 1,120 | ||||||
Accounts receivable, net | 145,756 | 139,772 | ||||||
Inventories | 3,715 | 1,933 | ||||||
Income taxes receivable | 2,628 | — | ||||||
Deferred income tax assets, net | 10,127 | 10,397 | ||||||
Other current assets | 9,090 | 8,768 | ||||||
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Total current assets | 312,709 | 282,394 | ||||||
Equipment and improvements, net | 17,841 | 12,599 | ||||||
Capitalized software costs, net | 19,994 | 15,150 | ||||||
Intangibles, net | 23,259 | 16,890 | ||||||
Goodwill | 60,776 | 46,721 | ||||||
Other assets | 5,773 | 4,932 | ||||||
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Total assets | $ | 440,352 | $ | 378,686 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,532 | $ | 6,686 | ||||
Deferred revenue | 83,108 | 76,695 | ||||||
Accrued compensation and related benefits | 11,870 | 10,247 | ||||||
Income taxes payable | — | 3,530 | ||||||
Dividends payable | 10,354 | 10,162 | ||||||
Other current liabilities | 19,568 | 29,316 | ||||||
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Total current liabilities | 129,432 | 136,636 | ||||||
Deferred revenue, net of current | 1,293 | 1,099 | ||||||
Deferred income tax liabilities, net | 5,351 | 11,384 | ||||||
Deferred compensation | 3,497 | 2,488 | ||||||
Other noncurrent liabilities | 5,602 | 2,409 | ||||||
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Total liabilities | 145,175 | 154,016 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Common stock | ||||||||
$0.01 par value; authorized 100,000 shares; issued and outstanding 59,180 and 58,068 shares at March 31, 2012 and March 31, 2011, respectively | 592 | 580 | ||||||
Additional paid-in capital | 168,988 | 132,969 | ||||||
Retained earnings | 125,597 | 91,121 | ||||||
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Total shareholders’ equity | 295,177 | 224,670 | ||||||
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Total liabilities and shareholders’ equity | $ | 440,352 | $ | 378,686 | ||||
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QUALITY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: | ||||||||||||||||
Software, hardware and supplies | $ | 26,562 | $ | 31,708 | $ | 122,407 | $ | 106,514 | ||||||||
Implementation and training services | 8,270 | 4,946 | 26,391 | 18,015 | ||||||||||||
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System sales | 34,832 | 36,654 | 148,798 | 124,529 | ||||||||||||
Maintenance | 35,871 | 29,046 | 138,832 | 110,019 | ||||||||||||
Electronic data interchange services | 13,081 | 10,756 | 49,259 | 41,022 | ||||||||||||
Revenue cycle management and related services | 11,402 | 11,622 | 45,572 | 45,065 | ||||||||||||
Other services | 13,808 | 9,030 | 47,374 | 32,728 | ||||||||||||
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Maintenance, EDI, RCM and other services | 74,162 | 60,454 | 281,037 | 228,834 | ||||||||||||
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Total revenues | 108,994 | 97,108 | 429,835 | 353,363 | ||||||||||||
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Cost of revenue: | ||||||||||||||||
Software, hardware and supplies | 4,976 | 3,204 | 18,399 | 19,779 | ||||||||||||
Implementation and training services | 6,179 | 4,868 | 21,298 | 15,010 | ||||||||||||
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Total cost of system sales | 11,155 | 8,072 | 39,697 | 34,789 | ||||||||||||
Maintenance | 4,844 | 2,875 | 17,104 | 12,948 | ||||||||||||
Electronic data interchange services | 8,606 | 7,321 | 32,422 | 27,711 | ||||||||||||
Revenue cycle management and related services | 8,608 | 8,733 | 34,295 | 33,815 | ||||||||||||
Other services | 8,728 | 6,165 | 27,705 | 18,219 | ||||||||||||
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Total cost of maintenance, EDI, RCM and other services | 30,786 | 25,094 | 111,526 | 92,693 | ||||||||||||
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Total cost of revenue | 41,941 | 33,166 | 151,223 | 127,482 | ||||||||||||
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Gross profit | 67,053 | 63,942 | 278,612 | 225,881 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 34,195 | 29,285 | 128,846 | 108,310 | ||||||||||||
Research and development costs | 8,907 | 5,751 | 31,369 | 21,797 | ||||||||||||
Amortization of acquired intangible assets | 653 | 445 | 2,198 | 1,682 | ||||||||||||
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Total operating expenses | 43,755 | 35,481 | 162,413 | 131,789 | ||||||||||||
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Income from operations | 23,298 | 28,461 | 116,199 | 94,092 | ||||||||||||
Interest income | 35 | 19 | 247 | 263 | ||||||||||||
Other income (expense), net | 261 | 2 | (139 | ) | 61 | |||||||||||
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Income before provision for income taxes | 23,594 | 28,482 | 116,307 | 94,416 | ||||||||||||
Provision for income taxes | 8,521 | 9,929 | 40,650 | 32,810 | ||||||||||||
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Net income | $ | 15,073 | $ | 18,553 | $ | 75,657 | $ | 61,606 | ||||||||
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Net income per share: | ||||||||||||||||
Basic | $ | 0.26 | $ | 0.32 | $ | 1.29 | $ | 1.06 | ||||||||
Diluted | $ | 0.25 | $ | 0.32 | $ | 1.28 | $ | 1.06 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 59,048 | 58,010 | 58,729 | 57,894 | ||||||||||||
Diluted | 59,232 | 58,404 | 59,049 | 58,236 | ||||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 | $ | 0.700 | $ | 0.625 |