PART I [Business](index=3&type=section&id=Item%201.%20Business) Allscripts provides healthcare IT solutions, divested CarePort and EPSi for over $1.7 billion in 2020, and maintained a $4.1 billion contract backlog - In 2020, Allscripts completed two major divestitures: selling its CarePort Health business to WellSky Corp. for **$1.35 billion** and its EPSi business to Strata Decision Technology for **$365 million**, both now reported as discontinued operations[15](index=15&type=chunk)[16](index=16&type=chunk) - The company extended its strategic alliance with Microsoft for five years, designating Microsoft as the cloud provider for its Sunrise™ EHR platform to co-develop cloud-based health IT solutions[17](index=17&type=chunk) - Allscripts operates through two primary reportable segments: Core Clinical and Financial Solutions (EHRs, financial management, managed services) and Data, Analytics and Care Coordination (payer and life sciences solutions via its Veradigm unit)[42](index=42&type=chunk)[44](index=44&type=chunk) Contract Backlog as of December 31, 2020 | Metric | Value | Note | | :--- | :--- | :--- | | **Total Contract Backlog** | $4.1 billion | Represents the value of executed contracts not yet recognized as revenue | | **Revenue Recognition in 2021** | ~35% | Estimated portion of the backlog to be recognized as revenue in the upcoming year | - As of December 31, 2020, the company had approximately **8,400 employees**, with the majority located in the United States (**58.9%**) and India (**36.4%**)[54](index=54&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company identifies significant risks including the COVID-19 pandemic's impact, intense industry competition, complex regulatory environment, potential product failures, security breaches, client reliance, and the Practice Fusion DOJ settlement - The COVID-19 pandemic has negatively impacted revenue by causing delays in software deals and professional services implementations, and by reducing patient volumes for its clients[70](index=70&type=chunk) - The company operates in a highly competitive market and faces pressure from industry consolidation, which may decrease the number of potential clients and increase pricing pressure[73](index=73&type=chunk)[76](index=76&type=chunk) - Significant risk is associated with the failure of its subsidiary, Practice Fusion, to comply with the terms of its settlement agreements with the U.S. Department of Justice (DOJ), which involved a criminal fine of **$25.3 million**, a forfeiture of **$959,700**, and a civil settlement of **$118.6 million**[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - The business model depends on maintaining relationships with existing clients, with one client accounting for **12% of revenue** for the year ended December 31, 2020[93](index=93&type=chunk) - The company is exposed to information security risks, including a ransomware attack in 2018 that impacted two data centers and a more recent incident involving unauthorized access to personally identifiable information[97](index=97&type=chunk) - The company's debt agreements contain restrictive covenants and require it to maintain specified financial ratios, a breach of which could result in an event of default and acceleration of debt[161](index=161&type=chunk) [Unresolved Staff Comments](index=32&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the U.S. Securities and Exchange Commission - None[177](index=177&type=chunk) [Properties](index=33&type=section&id=Item%202.%20Properties) Allscripts' corporate headquarters is in Chicago, Illinois, leasing approximately 1.1 million square feet of office space globally as of December 31, 2020 - As of December 31, 2020, the company leased **1.1 million square feet** of building space worldwide[178](index=178&type=chunk) [Legal Proceedings](index=33&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 22, "Contingencies," in the consolidated financial statements - Refer to Note 22, "Contingencies," to our consolidated financial statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K[179](index=179&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[180](index=180&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Allscripts' common stock trades on Nasdaq under "MDRX"; the Board approved a new $300 million stock repurchase program in November 2020, leading to 18.2 million shares repurchased in Q4, with no current intent to pay cash dividends - On November 18, 2020, the Board approved a new stock purchase program authorizing the repurchase of up to **$300 million** of common stock through December 31, 2021, replacing the 2018 program[184](index=184&type=chunk) - In November 2020, the company entered into Accelerated Share Repurchase (ASR) agreements for a total of **$200 million**, receiving an initial delivery of **11.7 million shares** in December 2020[185](index=185&type=chunk) Share Repurchases in Q4 2020 | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 2020 | 0 | $0.00 | | Nov 2020 | 6,535 | $12.16 | | Dec 2020 | 11,696 | N/A | | **Total Q4** | **18,231** | **$12.16** | - The company currently does not intend to declare or pay cash dividends on its common stock[191](index=191&type=chunk) [Selected Financial Data](index=37&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of key consolidated financial data, showing 2020 revenue of $1.50 billion, a net income of $700.4 million primarily from discontinued operations, and reduced long-term debt Selected Consolidated Statements of Operations Data (2018-2020) | (In thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Revenue** | $1,502,700 | $1,632,611 | $1,617,841 | | **Gross profit** | $565,695 | $610,287 | $621,391 | | **Loss from operations** | $(130,880) | $(99,689) | $(168,384) | | **Income from discontinued operations, net of tax** | $833,026 | $55,809 | $451,023 | | **Net income (loss)** | $700,407 | $(182,602) | $407,807 | | **Diluted EPS (Continuing ops)** | $(0.83) | $(1.43) | $(0.22) | | **Diluted EPS (Discontinued ops)** | $5.23 | $0.33 | $2.29 | Selected Consolidated Balance Sheet Data (as of Dec 31) | (In thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Cash, cash equivalents and marketable securities** | $537,465 | $137,539 | $184,795 | | **Total assets** | $2,917,618 | $3,205,739 | $3,181,484 | | **Long-term debt** | $167,587 | $551,004 | $647,539 | | **Total stockholders' equity** | $1,666,243 | $1,285,188 | $1,580,427 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 2020 financial performance, highlighting an 8% revenue decline due to COVID-19, a significant net income boost from divestitures, and a strong liquidity position with $538 million cash and a stable $4.1 billion contract backlog [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Total revenue decreased 8.0% to $1.50 billion in 2020 due to lower non-recurring revenue, while gross margin slightly improved, and a significant $833.0 million income from discontinued operations offset a loss from continuing operations Revenue Breakdown (2019 vs 2020) | Revenue Type | 2020 (in thousands) | 2019 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Recurring revenue | $1,222,731 | $1,278,456 | (4.4%) | | Non-recurring revenue | $279,969 | $354,155 | (20.9%) | | **Total revenue** | **$1,502,700** | **$1,632,611** | **(8.0%)** | Gross Profit and Margin (2019 vs 2020) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Gross Profit** | $565.7 M | $610.3 M | | **Gross Margin %** | 37.6% | 37.4% | - Asset impairment charges increased significantly to **$75.0 million** in 2020 from **$10.8 million** in 2019, primarily related to write-offs of a customer relationship intangible asset (**$23.1 million**), capitalized software (**$31.2 million**), and deferred private cloud hosting costs (**$34.3 million**)[274](index=274&type=chunk) - Income from discontinued operations was **$833.0 million** in 2020, including a **$1.157 billion** pre-tax gain on the sale of the CarePort and EPSi businesses[292](index=292&type=chunk) [Segment Operations](index=55&type=section&id=Segment%20Operations) In 2020, Core Clinical and Financial Solutions revenue decreased by 8.9% to $1.25 billion, increasing its operating loss, while Data, Analytics and Care Coordination revenue was flat, with an improved operating loss Core Clinical and Financial Solutions Performance (2019 vs 2020) | Metric (in thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,254,249 | $1,377,147 | (8.9%) | | **Gross Profit** | $434,288 | $473,033 | (8.2%) | | **Loss from Operations** | $(116,139) | $(80,465) | 44.3% | Data, Analytics and Care Coordination Performance (2019 vs 2020) | Metric (in thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $261,321 | $262,664 | (0.5%) | | **Gross Profit** | $131,407 | $137,254 | (4.3%) | | **Loss from Operations** | $(14,741) | $(19,224) | (23.3%) | [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2020, Allscripts had strong liquidity with $538 million cash and $899 million available credit, with operating cash flow impacted by a $147 million DOJ settlement payment, and investing activities boosted by $1.71 billion from divestitures - As of December 31, 2020, principal sources of liquidity consisted of **$538 million** in cash and cash equivalents and **$899 million** of available borrowing capacity under the Revolving Facility[316](index=316&type=chunk) Cash Flow Summary (2019 vs 2020) | (In thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(106,715) | $46,254 | | **Net cash provided by (used in) investing activities** | $1,615,188 | $(161,056) | | **Net cash (used in) provided by financing activities** | $(1,109,759) | $67,343 | - Operating cash flow in 2020 was negatively impacted by **$147 million** in payments related to the DOJ settlement for the Practice Fusion investigation[318](index=318&type=chunk) - Investing cash flow was primarily driven by **$1.71 billion** in cash received from the sales of the CarePort and EPSi businesses[322](index=322&type=chunk)[323](index=323&type=chunk) - Financing activities included significant debt repayments and share repurchases, including a **$200 million** accelerated share repurchase program[327](index=327&type=chunk)[328](index=328&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and foreign currency fluctuations, with minimal interest rate risk in 2020 and foreign currency risk mitigated by hedging Indian Rupee expenses - Interest rate risk was minimal as of year-end 2020, with no debt outstanding under the Senior Secured Credit Facility[343](index=343&type=chunk) - The company is exposed to foreign currency risk, particularly with the Indian Rupee (INR), and utilizes forward contracts to hedge a portion of forecasted INR-denominated expenses[344](index=344&type=chunk) [Financial Statements and Supplementary Data](index=63&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes audited consolidated financial statements for 2020, an unqualified auditor's opinion from Grant Thornton LLP, and details the significant impact of CarePort and EPSi divestitures presented as discontinued operations - The independent auditor, Grant Thornton LLP, issued an unqualified opinion on the financial statements and internal control over financial reporting[348](index=348&type=chunk)[360](index=360&type=chunk) - The auditor identified "Revenue Recognition - Determination of distinct performance obligations and application of stand-alone selling prices" as a critical audit matter due to the complexity and judgment required[354](index=354&type=chunk)[356](index=356&type=chunk) [Note 2. Revenue from Contracts with Customers](index=77&type=section&id=Note%202.%20Revenue%20from%20Contracts%20with%20Customers) Revenue is disaggregated into software delivery, support, maintenance, and client services, with a total contract backlog of $4.1 billion as of December 31, 2020, with 35% expected in 2021 Disaggregation of Revenue by Type | (In thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Recurring revenue** | $1,222,731 | $1,278,456 | $1,313,281 | | **Non-recurring revenue** | $279,969 | $354,155 | $304,560 | | **Total revenue** | **$1,502,700** | **$1,632,611** | **$1,617,841** | - The total contract backlog as of December 31, 2020, was **$4.1 billion**, with approximately **35%** expected to be recognized as revenue over the next 12 months[427](index=427&type=chunk) [Note 5. Business Combinations and Divestitures](index=84&type=section&id=Note%205.%20Business%20Combinations%20and%20Divestitures) In 2020, Allscripts completed the sales of CarePort for $1.35 billion (pre-tax gain $933.9 million) and EPSi for $365.0 million (pre-tax gain $222.6 million), both treated as discontinued operations - Completed the sale of the CarePort business on December 31, 2020, for **$1.35 billion**, resulting in a pre-tax gain of **$933.9 million**[459](index=459&type=chunk) - Completed the sale of the EPSi business on October 15, 2020, for **$365.0 million**, resulting in a pre-tax gain of **$222.6 million**[460](index=460&type=chunk) [Note 8. Goodwill and Intangible Assets](index=90&type=section&id=Note%208.%20Goodwill%20and%20Intangible%20Assets) As of December 31, 2020, the company had $974.7 million in goodwill and $286.6 million in net intangible assets, with no goodwill impairment in 2020, contrasting with a $25.7 million charge in 2019 Goodwill and Intangible Assets (Net) | (In thousands) | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Goodwill** | $974,729 | $974,110 | | **Intangible Assets, Net** | $286,602 | $367,128 | - The annual goodwill impairment test as of October 1, 2020, resulted in no impairment charges[489](index=489&type=chunk) - In 2019, a goodwill impairment charge of **$25.7 million** was recognized related to the Hospitals and Health Systems (HHS) reporting unit[490](index=490&type=chunk) [Note 10. Debt](index=93&type=section&id=Note%2010.%20Debt) As of December 31, 2020, total net debt significantly reduced to $167.6 million from $915.5 million in 2019, primarily due to repayments of the Senior Secured Credit Facility and 1.25% Notes, with no outstanding borrowings on the Revolving Facility Debt Outstanding (Net Carrying Amount) | (In thousands) | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | 0.875% Convertible Senior Notes | $167,587 | $173,245 | | 1.25% Cash Convertible Senior Notes | $0 | $337,448 | | Senior Secured Credit Facility | $0 | $404,776 | | **Total Long-Term Debt** | **$167,587** | **$551,004** | - The **1.25% Notes** with a principal of **$345.0 million** matured and were paid in full on July 1, 2020[388](index=388&type=chunk)[529](index=529&type=chunk) - As of December 31, 2020, there were no amounts outstanding under the Term Loan or the **$900 million** Revolving Facility, with **$898.9 million** of available borrowing capacity[523](index=523&type=chunk)[525](index=525&type=chunk) [Note 22. Contingencies](index=117&type=section&id=Note%2022.%20Contingencies) This note details legal matters including an EIS business civil investigative demand indemnified by McKesson and the Practice Fusion DOJ settlement for approximately $145 million, which has been fully paid - The acquired EIS Business is subject to a civil investigative demand related to EHR certification, for which Allscripts is indemnified by the seller, McKesson[617](index=617&type=chunk) - On January 27, 2020, the Practice Fusion subsidiary entered into settlement agreements with the DOJ, resolving investigations into violations of the Anti-Kickback Statute and False Claims Act, requiring payments of a **$25.3 million** criminal fine, a **$0.96 million** forfeiture, and a **$118.6 million** civil settlement, all of which have been paid[618](index=618&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=120&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[623](index=623&type=chunk) [Controls and Procedures](index=120&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2020, a conclusion audited by Grant Thornton LLP - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[625](index=625&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2020, which was audited by Grant Thornton LLP[627](index=627&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=121&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the company's 2021 Proxy Statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for its 2021 annual meeting of stockholders[631](index=631&type=chunk) [Executive Compensation](index=121&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation, including the Compensation Discussion and Analysis, is incorporated by reference from the company's 2021 Proxy Statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for its 2021 annual meeting of stockholders[632](index=632&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=121&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners, management, and equity compensation plans is incorporated by reference from the company's 2021 Proxy Statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for its 2021 annual meeting of stockholders[633](index=633&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=121&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the company's 2021 Proxy Statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for its 2021 annual meeting of stockholders[634](index=634&type=chunk) [Principal Accountant Fees and Services](index=121&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on fees paid to the principal accountant and audit committee pre-approval policies is incorporated by reference from the company's 2021 Proxy Statement - Information required by this item is incorporated by reference from the registrant's definitive proxy statement for its 2021 annual meeting of stockholders[635](index=635&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=122&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Annual Report on Form 10-K - This section contains the list of financial statements, financial statement schedules (Schedule II—Valuation and Qualifying Accounts), and all exhibits filed with the Form 10-K[637](index=637&type=chunk)[638](index=638&type=chunk)[641](index=641&type=chunk) [Form 10-K Summary](index=127&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that no Form 10-K summary is provided - None[646](index=646&type=chunk)

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]

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 ...

Financial Data and Key Metrics Changes - The company reported an 18% year-over-year increase in non-GAAP earnings per share, reaching $0.20 per share despite lower revenue [25][36] - Revenue for the quarter was $402 million, consistent with the previous quarter, with patient volume-linked revenue improvement offset by lower EPSI revenue [29] - Adjusted EBITDA margin improved by 110 basis points sequentially, totaling a 640 basis point improvement since the margin improvement program began [31][34] Business Line Data and Key Metrics Changes - The independent ambulatory practice market saw strong sales momentum, winning 10 new logos, bringing the total to nearly 30 for the year [26] - The Veradigm unit reported strong results for solutions targeted at life science companies and payers, contributing to larger contracts [27][28] - The core Clinical and Financial Solutions segment achieved an adjusted EBITDA margin of 15.9% [31] Market Data and Key Metrics Changes - The company noted a shift in the buying environment towards subscription models rather than upfront license revenue, impacting nonrecurring revenue [30] - The regulatory environment is evolving, with the company preparing for compliance with ONC's final rule on interoperability, which may separate it from competitors [21][22] Company Strategy and Development Direction - The company is focused on unlocking shareholder value through strategic divestitures, having sold CarePort and EPSI, which represented less than 10% of consolidated revenue [39][40] - Future capital will be allocated to reduce debt, invest in growth, and support share repurchases, with a target to stay below 1.5 turns of leverage [40][41] - The company aims to continue expanding internationally and leveraging its data and analytics capabilities through the Veradigm business [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by COVID-19, noting that clients have adapted and are focusing on strategic priorities [69] - The company anticipates modest revenue growth in Q4, despite headwinds from the sale of EPSI [30][66] - Management expects to convert 85% to 90% of non-GAAP net income into free cash flow going forward [63] Other Important Information - The company has seen a significant increase in telehealth visits by over 9,000% since the pandemic began, indicating a shift in client needs [19] - The Allscripts Client Experience event saw record attendance, highlighting the company's engagement with clients and industry leaders [16][17] Q&A Session Summary Question: What are the best growth opportunities over the next three years? - Management highlighted that growth opportunities are driven by scale and innovation, with a focus on new use cases and market share shifts [47][49] Question: How do you see margin expansion opportunities post-divestiture? - Management indicated that the core segment is not impacted by divestitures and expects continued progress on margin improvement [50][53] Question: Can you provide details on the largest contract and what drives larger contracts? - The uniqueness of the data assets and the need for life science companies to reimagine trial processes are driving larger contracts [56] Question: What is the outlook for free cash flow? - Management aims to convert a significant portion of non-GAAP net income into free cash flow, targeting 85% to 90% [63] Question: How should we model bookings performance in Q4? - Historically, Q4 is the strongest quarter for sales activity, and management expects moderate improvement in bookings [66] Question: How is the Veradigm business tied to the core EHR platform? - While data flows from EHRs, the Veradigm platform is expanding to include data from competitors, indicating a growth plan that is not solely dependent on the core EHR [72]

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]

[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

& 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 ...

Allscripts Healthcare Solutions, Inc. (OTC:MDRX) Q1 2020 Earnings Conference Call May 7, 2020 4:30 PM ET Company Participants Stephen Shulstein - VP, IR Paul Black - CEO Rick Poulton - President and CFO Conference Call Participants Michael Cherney - Bank of America Merrill Lynch Kevin Caliendo - UBS Robert Jones - Goldman Sachs Jamie Stockton - Wells Fargo Eric Percher - Nephron Research Donald Hooker - KeyBanc Capital Markets Stephanie Davis Demko - SVB Leerink Dave Windley - Jefferies Ricky Goldwasser - M ...

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, 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 Organ ...

Allscripts Healthcare Solutions, Inc. (OTC:MDRX) Q4 2019 Earnings Conference Call March 2, 2020 4:30 PM ET Company Participants Stephen Shulstein - VP of IR Paul Black - CEO Rick Poulton - President Conference Call Participants Jamie Stockton - Wells Fargo Kevin Caliendo - UBS Eric Percher - Nephron Research Jeffrey Garro - William Blair & Company George Hill - Deutsche Bank Matthew Gillmor - Robert W. Baird David Windley - Jefferies Eugene Mannheimer - Dougherty and Company Operator Greetings and welcome t ...