Veradigm (MDRX)

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Veradigm (MDRX) - 2021 Q2 - Quarterly Report
2021-08-05 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35547 ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 36-4392754 (State or Other Jurisdiction of Incorporation or Organi ...
Veradigm (MDRX) - 2021 Q1 - Quarterly Report
2021-04-29 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35547 ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 36-4392754 (State or Other Jurisdiction of Incorporation or Organ ...
Veradigm (MDRX) - 2020 Q4 - Earnings Call Transcript
2021-02-26 03:27
Financial Data and Key Metrics Changes - The fourth quarter of 2020 was the best quarterly performance in years, with total non-GAAP revenue of $415 million, up from $402 million in the third quarter [31] - Adjusted EBITDA margin for the quarter was 23.4%, reflecting nearly a 1,000 basis point improvement from the first quarter of 2020 and a 700 basis point improvement year-over-year [32] - Free cash flow from continuing operations was $30 million during the fourth quarter, with operating cash flow of $56 million, excluding a $58 million payment to the DOJ [35][36] Business Line Data and Key Metrics Changes - The Veradigm business unit saw strong momentum, returning to growth with significant new bookings and larger deals, particularly in clinical research and data exchange [18] - The ambulatory enterprise added 35 new logos in the TouchWorks Professional solutions, indicating strong demand for end-to-end clinical and financial solutions [17] - The core clinical and financial solutions segment showed significant EBITDA margin expansion, although it is expected to be influenced by seasonal patterns [75] Market Data and Key Metrics Changes - The backlog increased to $4.1 billion at year-end, reflecting a considerable level of client renewals secured during the year [30] - The company noted that the US EHR market is largely a replacement market, with opportunities for growth in both domestic and international markets [66] Company Strategy and Development Direction - The company is focused on migrating clients to cloud solutions, which is expected to lower total cost of ownership and improve EHR experiences [14] - Allscripts completed the sale of EPSi and CarePort Health to unlock value from its solutions portfolio and reduce leverage [20] - The company aims to leverage its strong balance sheet and sustainable cost structure to drive long-term value creation [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage costs and drive year-over-year margin improvement, with a revenue outlook for 2021 set at $1.5 billion [39][40] - The management team highlighted the importance of community-based coordinated care in response to the pandemic, emphasizing the need for integrated health solutions [12][13] - The company expects to see continued growth in the Veradigm business and anticipates a stable operating environment compared to the previous year [66] Other Important Information - Allscripts was recognized as the most trusted partner in community hospitals, reflecting its commitment to client success and collaboration [22] - The company published its first corporate responsibility report, highlighting its positive impact on communities during a challenging year [24] Q&A Session Summary Question: Impact of the new Truvada Organization on Veradigm - Management does not foresee any direct impact on Veradigm's outlook from the new organization [45] Question: Migration of Sunrise to the cloud - The migration process has not been delayed by the pandemic and is expected to proceed with careful planning [46] Question: Drivers of performance in the life sciences business - The growth in Veradigm is attributed to a large market share and extensive data rights, leading to increased recognition of its value [50] Question: Adjusted EBITDA margins performance - The margin improvement was driven by a combination of better revenue mix and continued cost reductions [52] Question: Future growth opportunities - Future growth is expected from replacement market opportunities, international expansion, and new use cases in the US [66] Question: Capital deployment and share buyback - The company plans to continue share repurchases and may consider small acquisitions, depending on opportunities [60] Question: Retention performance in the core segment - Retention rates improved in 2020, with low attrition numbers indicating a positive trend for 2021 [90] Question: Feedback on Sunrise 20.0 - The response to Sunrise 20.0 has been positive, with clients eager to participate in the new features and capabilities [88]
Veradigm (MDRX) - 2020 Q4 - Annual Report
2021-02-25 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35547 Title of Each Class: Trading Symbol Name of Each Exchange on which Registered ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. (Exact name of registrant as specified in its charter) ( ...
Allscripts Healthcare Solutions (MDRX) Presents at J.P. Morgan Healthcare Conference 2021 - Slideshow
2021-01-19 21:43
Financial Performance & Strategy - Allscripts reset its priorities in 2020, focusing on client needs, cost base, portfolio, and balance sheet/capital structure[3] - The company expects approximately 730 basis points of Adjusted EBITDA margin improvement since 1Q20[5] - Allscripts is targeting $90 million to $100 million of Free Cash Flow in 2021[13] - The company aims for a long-term leverage ratio of approximately 1.5x Adjusted EBITDA[7] Portfolio Restructuring - Allscripts sold CarePort for $1.35 billion, which is over 13x trailing revenue and approximately 21x trailing Adjusted EBITDA[6] - The company also sold EPSi for $365 million, about 7.5x trailing revenue and roughly 18.5x trailing Adjusted EBITDA[6] - The after-tax proceeds from these sales are approximately $1.25 billion[6] Veradigm Growth Platform - Veradigm's unique data assets, analytics, and connectivity provide a competitive advantage[12] - Veradigm has a profitable and scalable foundation with opportunities for margin improvement and efficiencies, primarily through recurring, subscription, and transactional revenue[12] Capital Allocation - Allscripts repurchased $280 million of stock in 2020 through open market and accelerated programs and expects to repurchase a significant amount in 2021[7] COVID-19 Response - Allscripts supported clients through COVID-19 response and recovery, according to Reaction Data[5]
Veradigm (MDRX) - 2020 Q3 - Quarterly Report
2020-10-30 20:29
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35547 ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 36-4392754 (State or Other Jurisdiction of Incorporation or O ...
Veradigm (MDRX) - 2020 Q3 - Earnings Call Transcript
2020-10-30 01:54
Allscripts Healthcare Solutions, Inc. (OTC:MDRX) Q3 2020 Earnings Conference Call October 29, 2020 4:30 PM ET Company Participants Stephen Shulstein - Vice President of Investor Relations Paul Black - Chief Executive Officer Rick Poulton - President and Chief Financial Officer Conference Call Participants Michael Cherny - Bank of America Eric Percher - Nephron Research Jeff Garro - William Blair Donald Hooker - KeyBanc Capital Markets Charles Rhyee - Cowen & Company Stephanie Davis - SVB Leerink George Hill ...
Veradigm (MDRX) - 2020 Q2 - Earnings Call Transcript
2020-08-02 06:50
Financial Data and Key Metrics Changes - The company generated $188 million in new bookings during Q2 2020, demonstrating resilience despite the pandemic's impact on the global economy [6][26] - Revenue for the quarter was $406 million, down $11 million from Q1, primarily due to COVID-19's effect on patient volumes [26] - Non-GAAP earnings per share for the quarter were $0.18, exceeding last year's second quarter despite a $39 million year-over-year revenue decline [30] - Consolidated non-GAAP gross margins increased by 150 basis points sequentially, and adjusted EBITDA margins increased by 530 basis points sequentially [28] Business Line Data and Key Metrics Changes - The core clinical and financial solutions segment, which includes EHR software and services, comprises about 77% of total revenue [32] - The data, analytics, and care coordination segment accounts for 21% of total revenue, focusing on higher-margin growth opportunities [32][35] - Recurring revenue remained at 82% of total revenue, consistent with Q1 2020 [27] Market Data and Key Metrics Changes - Patient volumes and elective surgeries rebounded strongly in June and July, reaching 80% to 90% of pre-COVID levels [16] - Claim volumes in the Payerpath ambulatory claims clearinghouse business dropped to 60% of normal in April but recovered to approximately 80% in June [28] Company Strategy and Development Direction - The company is focused on assisting clients during uncertain times, leveraging a diversified portfolio to capture new opportunities [22] - A strategic partnership with Microsoft was extended for five years to enhance cloud-based solutions, aiming to improve cybersecurity and organizational effectiveness [19][20] - The company is actively pursuing international growth opportunities, viewing the core business outside the U.S. as a growth area [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of client operations and the stabilization of financial situations due to government relief programs [17][18] - The company is positioned to benefit from increased investments in solutions that improve clinical outcomes and financial performance as clients recover [18] - Management highlighted the importance of adapting to new sales processes during the pandemic, including virtual demonstrations of products [70] Other Important Information - The company recorded a restructuring charge of $28 million in Q2, primarily related to severance costs as part of a margin improvement plan [29] - The EPSi business unit was sold for $365 million, representing a significant strategic move to strengthen liquidity [33] Q&A Session Summary Question: What changes have occurred regarding cost reductions and margin improvement? - Management noted substantial improvements in EBITDA margins and highlighted ongoing initiatives to enhance cost efficiency across various operational areas [46] Question: How does the company view growth in the new segments post-COVID? - Management indicated that different growth drivers exist in the core clinical and financial solutions segment compared to the data analytics and care coordination segment, with the latter expected to have more significant growth opportunities [50][55] Question: What is the strategic rationale behind the EPSi sale? - The decision to sell EPSi was based on a portfolio review, assessing strategic importance and competitive positioning, alongside capital and liquidity needs [66] Question: How is the company adapting its sales process during COVID? - Management emphasized the shift to virtual sales processes and the effectiveness of remote product demonstrations, which have become a common practice across the industry [70]
Veradigm (MDRX) - 2020 Q2 - Quarterly Report
2020-07-31 20:20
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Allscripts reported a net loss on decreased revenue for H1 2020, with total assets of $3.19 billion, positive operating cash flow, and a new credit loss standard adoption [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets slightly decreased to $3.19 billion, while total liabilities increased to $1.95 billion, leading to a decrease in stockholders' equity Consolidated Balance Sheet Highlights (In thousands) | (In thousands) | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $869,801 | $841,262 | | **Total assets** | **$3,188,838** | **$3,205,739** | | **Total current liabilities** | $1,111,282 | $1,210,690 | | **Total liabilities** | **$1,945,909** | **$1,920,551** | | **Total stockholders' equity** | **$1,242,929** | **$1,285,188** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2020, total revenue decreased to $406.2 million, resulting in a net loss of $7.6 million, a significant improvement from the prior year's larger loss Consolidated Statements of Operations Highlights (In thousands) | (In thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $406,223 | $444,460 | $822,936 | $876,509 | | **Gross profit** | $164,484 | $184,122 | $321,445 | $358,217 | | **(Loss) income from operations** | $(4,746) | $4,743 | $(13,946) | $7,388 | | **Net loss** | $(7,605) | $(149,930) | $(27,959) | $(157,907) | | **Net loss per share - Diluted** | $(0.05) | $(0.90) | $(0.17) | $(0.94) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $18.9 million for H1 2020, with decreased cash used in investing and increased cash provided by financing activities Consolidated Statements of Cash Flows Highlights (In thousands) | (In thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $18,938 | $(1,910) | | **Net cash used in investing activities** | $(40,706) | $(77,519) | | **Net cash provided by financing activities** | $89,765 | $42,630 | | **Net increase (decrease) in cash and cash equivalents** | $67,659 | $(36,656) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the adoption of a new credit loss standard, $4.4 billion in contract backlog, debt structure, and significant subsequent events including a business sale - The company adopted ASU 2016-13 for credit losses on January 1, 2020, recording a debit to retained earnings of **$5.3 million** for contract assets and **$12.6 million** for trade accounts receivable[29](index=29&type=chunk)[43](index=43&type=chunk)[48](index=48&type=chunk) - Total contract backlog was **$4.4 billion** as of June 30, 2020, with approximately **33%** expected to be recognized as revenue over the next 12 months[38](index=38&type=chunk) - On July 30, 2020, the company signed an agreement to sell its EPSiTM business to Strata Decision Technology LLC for **$365.0 million**[131](index=131&type=chunk) - On July 1, 2020, the **1.25%** Cash Convertible Senior Notes matured, and the company borrowed **$345.0 million** from its senior secured revolving credit facility to repay them in full[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the COVID-19 pandemic's negative impact on Q2 2020 revenue, leading to cost reductions, while maintaining stable contract backlog and strong liquidity [Overview](index=27&type=section&id=Overview) The company, a healthcare IT solutions provider, faced negative revenue impacts from the COVID-19 pandemic, leading to cost-saving measures, while navigating regulatory changes - The COVID-19 pandemic negatively impacted revenue for the three and six months ended June 30, 2020, causing delays in deals with upfront software revenue and professional services implementations[155](index=155&type=chunk) - In April 2020, the company implemented cost actions that included headcount reductions and temporary salary measures to navigate the uncertain environment caused by the pandemic[155](index=155&type=chunk) - Regulatory drivers such as the 21st Century Cures Act, MACRA, and new ONC rules on interoperability and information blocking continue to shape the healthcare IT market and influence product demand[137](index=137&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q2 2020 saw an **8.6%** decrease in total revenue to **$406.2 million**, a contracted gross margin, and a shift from operating income to a **$4.7 million** operating loss Key Financial Results (In thousands) | (In thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | % Change | | :--- | :--- | :--- | :--- | | **Total revenue** | $406,223 | $444,460 | (8.6%) | | **Gross profit** | $164,484 | $184,122 | (10.7%) | | **(Loss) income from operations** | $(4,746) | $4,743 | NM | - Non-recurring revenue decreased by **24.6%** in Q2 2020 compared to Q2 2019, primarily due to lower upfront software revenues and project delays impacting client services[164](index=164&type=chunk)[167](index=167&type=chunk) - Research and development expenses decreased by **23.9%** in Q2 2020 YoY, primarily due to the impact of cost reduction initiatives[171](index=171&type=chunk)[172](index=172&type=chunk) - Selling, general and administrative expenses increased by **8.6%** in Q2 2020 YoY, mainly due to higher severance costs related to cost reduction initiatives[170](index=170&type=chunk) [Segment Operations](index=35&type=section&id=Segment%20Operations) In Q2 2020, Core Clinical and Financial Solutions revenue declined **10.5%** with a widened operating loss, while Data, Analytics and Care Coordination revenue decreased **3.2%** with reduced operating income Segment Performance (In thousands) | (In thousands) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | | :--- | :--- | :--- | | **Revenue** | | | | Core Clinical and Financial Solutions | $311,099 | $347,782 | | Data, Analytics and Care Coordination | $85,161 | $87,985 | | **(Loss) income from operations** | | | | Core Clinical and Financial Solutions | $(16,033) | $(11,734) | | Data, Analytics and Care Coordination | $7,267 | $12,534 | - Core Clinical and Financial Solutions revenue decreased primarily due to lower upfront software revenues, attrition, and project delays[186](index=186&type=chunk) - Data, Analytics and Care Coordination gross profit and margin decreased due to higher costs incurred to support the growth of the segment[192](index=192&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2020, the company maintained strong liquidity with **$205 million** in cash and **$689 million** available credit, supported by **$18.9 million** in operating cash flow - As of June 30, 2020, liquidity consisted of **$205 million** in cash and cash equivalents and **$689 million** available borrowing capacity under the revolving credit facility[198](index=198&type=chunk) - The company increased credit facility borrowings during the first half of 2020 to enhance financial flexibility in response to potential uncertainties from the COVID-19 pandemic[198](index=198&type=chunk)[205](index=205&type=chunk) Cash Flow Summary (In thousands) | (In thousands) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $18,938 | $(1,910) | | **Net cash used in investing activities** | $(40,706) | $(77,519) | | **Net cash provided by financing activities** | $89,765 | $42,630 | [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported for the six months ended June 30, 2020, from those in the prior annual report - Market risk disclosures have not changed materially during the six months ended June 30, 2020, from those previously disclosed in the Form 10-K[212](index=212&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of June 30, 2020, with new internal controls implemented for the credit loss accounting standard - The company's disclosure controls and procedures were evaluated and found to be effective as of June 30, 2020[213](index=213&type=chunk) - Internal controls related to the new credit loss accounting standard were implemented, but no other changes have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[214](index=214&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference Note 14 of the financial statements for details on contingencies and legal proceedings, including the Practice Fusion settlement - The company incorporates by reference Note 14, "Contingencies," of the Notes to Consolidated Financial Statements for information regarding legal proceedings[217](index=217&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic is identified as a significant risk factor, adversely impacting business operations, revenue, and financial condition due to deal and implementation delays - The COVID-19 pandemic is identified as a significant risk factor that has materially and adversely impacted the business, results of operations, and financial condition[218](index=218&type=chunk) - The pandemic has caused delays in deals with upfront software revenue and professional services implementations as healthcare clients prioritize resources, and the continuing magnitude of this effect is unpredictable[219](index=219&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On June 29, 2020, the company issued **89,690** shares of common stock to a commercial partner in an unregistered sale under a commercial agreement - On June 29, 2020, the Company issued **89,690** shares of common stock to a commercial partner in an unregistered sale pursuant to a commercial agreement[221](index=221&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments, certifications, and XBRL data files
Veradigm (MDRX) - 2020 Q2 - Earnings Call Presentation
2020-07-31 15:43
& Allscripts / All possible Allscripts Healthcare Solutions July 30, 2020 Supplemental Investor Presentation Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including targeted Adjusted EBITDA margins and other information regarding future performance included in this presentation, are based on the current beliefs and expectations of Allscripts management, only speak as of the date t ...