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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 36-4392754 (I.R.S. Employer Identification No.) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-355 ...

® Allscripts® /All possible Allscripts Healthcare Solutions January 2020 J.P. Morgan Healthcare Conference Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including the preliminary financial information included in this presentation, are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant ...

[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) The unaudited consolidated financial statements for the period ended September 30, 2019, show a slight increase in total assets to **$3.23 billion**. Total revenue for the third quarter was **$444.2 million**, a **2.7%** increase year-over-year, but the company reported a net loss of **$5.7 million**. Key events include the adoption of the new lease accounting standard (ASU 2016-02), several small business acquisitions, and a significant **$145 million** accrual for an anticipated settlement with the Department of Justice regarding the Practice Fusion investigation [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2019, total assets increased to **$3.23 billion** from **$3.18 billion** at year-end 2018, primarily driven by an increase in goodwill and the addition of right-of-use assets from the new lease standard. Total liabilities rose to **$1.95 billion** from **$1.60 billion**, largely due to increased current and long-term debt and new operating lease liabilities. Consequently, total stockholders' equity decreased from **$1.58 billion** to **$1.28 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$3,229,941** | **$3,181,484** | | Cash and cash equivalents | $129,349 | $174,243 | | Goodwill | $1,387,088 | $1,373,744 | | Right-of-use assets - operating leases | $103,537 | $0 | | **Total Liabilities** | **$1,948,883** | **$1,601,057** | | Total current liabilities | $1,177,313 | $797,730 | | Long-term debt | $554,864 | $647,539 | | **Total Stockholders' Equity** | **$1,281,058** | **$1,580,427** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of 2019, total revenue increased by **2.7%** year-over-year to **$444.2 million**. However, the company reported a net loss of **$5.7 million**, an improvement from a **$23.8 million** net loss in Q3 2018. For the nine-month period, a significant net loss of **$163.6 million** was recorded, primarily due to a **$143.7 million** charge in 'Other income (loss), net', related to the anticipated DOJ settlement Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$444,184** | **$432,430** | **$1,320,693** | **$1,307,616** | | Gross Profit | $175,302 | $177,952 | $533,519 | $536,384 | | Income (loss) from operations | $3,182 | $186 | $10,570 | $(66,609) | | **Net (loss) income** | **$(5,725)** | **$(23,846)** | **$(163,632)** | **$21,911** | | Net loss attributable to Allscripts stockholders | $(5,725) | $(35,991) | $(163,208) | $(11,041) | | Diluted EPS | $(0.03) | $(0.20) | $(0.97) | $(0.06) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2019, net cash provided by operating activities was **$33.9 million**, a decrease from **$81.6 million** in the prior year period, impacted by a **$30 million** tax payment for discontinued operations. Net cash used in investing activities was **$130.3 million**, driven by capitalized software costs and business acquisitions. Net cash provided by financing activities was **$50.4 million**, reflecting net credit facility borrowings partially offset by common stock repurchases and the acquisition of non-controlling interests Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$33,944** | **$81,554** | | Net cash used in investing activities | $(130,285) | $(233,321) | | **Net cash provided by financing activities** | **$50,373** | **$109,388** | | Net decrease in cash and cash equivalents | $(46,071) | $(42,707) | - Key financing activities for the first nine months of 2019 included **$102.2 million** in common stock repurchases and **$54.1 million** for the purchase of subsidiary shares owned by non-controlling interest (Pulse8, Inc.)[21](index=21&type=chunk)[55](index=55&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Significant notes detail a change in reportable segments to Provider and Veradigm, the adoption of the new lease accounting standard, and revenue recognition practices. The company's contract backlog stood at **$3.9 billion**. Key events include several business acquisitions, a **$145 million** accrual for the Practice Fusion DOJ investigation, and the repurchase of **$102.2 million** of common stock in the first nine months of 2019 - In Q1 2019, the company changed its reportable segments to Provider and Veradigm to align with its strategic focus after the Netsmart divestiture[27](index=27&type=chunk)[115](index=115&type=chunk) - The company adopted the new lease accounting standard (ASU 2016-02) on January 1, 2019, resulting in the recognition of **$103.5 million** in right-of-use assets and corresponding lease liabilities[28](index=28&type=chunk)[43](index=43&type=chunk)[50](index=50&type=chunk) - Total contract backlog was **$3.9 billion** as of September 30, 2019, of which approximately **38%** is expected to be recognized as revenue over the next **12 months**[38](index=38&type=chunk) - Practice Fusion, an Allscripts subsidiary, reached an agreement in principle with the DOJ to resolve civil and criminal investigations for **$145.0 million**. This amount was accrued in Q3 2019[109](index=109&type=chunk) - The company repurchased **9.6 million shares** of common stock for **$102.2 million** during the first nine months of 2019 under its 2018 stock purchase program[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **2.7%** year-over-year revenue increase for Q3 2019 to **$444 million**, with bookings up **19%** to **$236 million**. Gross margin declined to **39.5%** from **41.2%** due to hosting migration costs and other expenses. The Veradigm segment showed strong revenue growth of **7.5%** in Q3, while the Provider segment saw a slight decline. A key event impacting results was the **$145 million** accrual for the Practice Fusion DOJ settlement. Liquidity remains adequate with **$139 million** in cash and **$649 million** available under the revolving credit facility [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenue for Q3 2019 increased **2.7%** to **$444.2 million**, driven by a **14.1%** rise in non-recurring revenue. Gross profit decreased slightly by **1.5%** to **$175.3 million**, with gross margin falling to **39.5%** from **41.2%** due to higher hosting costs. Operating expenses saw a **6.4%** decrease in SG&A, while R&D remained flat. The nine-month results were significantly impacted by a **$145 million** charge for the DOJ settlement, leading to a pre-tax loss of **$163.0 million**, compared to a **$53.2 million** income in the prior year, which had benefited from a **$172.3 million** gain on sale of businesses Revenue Breakdown (in thousands) | Revenue Type | Q3 2019 | Q3 2018 | % Change | | :--- | :--- | :--- | :--- | | Recurring revenue | $349,455 | $349,404 | 0.0% | | Non-recurring revenue | $94,729 | $83,026 | 14.1% | | **Total revenue** | **$444,184** | **$432,430** | **2.7%** | - Gross margin decreased to **39.5%** in Q3 2019 from **41.2%** in Q3 2018, primarily due to an increase in hosting migration costs, higher amortization, and recognition of previously deferred expenses[151](index=151&type=chunk) - SG&A expenses decreased by **6.4%** in Q3 2019 and **12.5%** in the nine-month period, mainly due to headcount reductions from the integration of prior acquisitions[153](index=153&type=chunk) - Other income (loss), net, for the nine months ended Sep 30, 2019, included a loss of **$145 million** related to the expected settlement with the DOJ for the Practice Fusion investigation[159](index=159&type=chunk) [Segment Operations](index=37&type=section&id=Segment%20Operations) In Q3 2019, the Provider segment's revenue decreased **1.4%** to **$396.7 million** due to known attrition, while its operating margin slightly compressed to **24.4%**. The Veradigm segment's revenue grew **7.5%** to **$41.7 million**, driven by organic sales, but its operating margin decreased to **21.5%** from **33.1%** due to increased hosting migration costs and investments in growth Segment Performance - Q3 2019 vs Q3 2018 (in thousands) | Segment | Revenue (Q3'19) | Revenue (Q3'18) | % Change | Income from Ops (Q3'19) | Income from Ops (Q3'18) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Provider | $396,679 | $402,213 | (1.4%) | $96,895 | $101,130 | (4.2%) | | Veradigm | $41,680 | $38,775 | 7.5% | $8,975 | $12,850 | (30.2%) | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2019, the company had **$139 million** in cash and cash equivalents and **$649 million** available under its revolving credit facility. Net cash from operations for the first nine months was **$33.9 million**, down from **$81.6 million** year-over-year. The decrease was mainly due to working capital changes and a **$30 million** tax payment related to the Netsmart sale. The company plans to fund the **$145 million** DOJ settlement through cash flows and draws on its credit facility - Principal sources of liquidity as of September 30, 2019, were **$139 million** in cash and cash equivalents and **$649 million** available borrowing capacity under the revolving credit facility[184](index=184&type=chunk) - Net cash provided by operating activities from continuing operations was **$63.9 million** for the nine months ended Sep 30, 2019, a slight decrease from **$65.3 million** in the prior year period[185](index=185&type=chunk) - The company plans to fund the expected **$145 million** settlement with the DOJ through future cash flows and draws on its Revolving Facility[193](index=193&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risk disclosures as set forth in its Annual Report on Form 10-K for the year ended December 31, 2018 - Market risk disclosures have not changed materially during the nine months ended September 30, 2019[199](index=199&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, under the direction of the CEO and CFO, evaluated disclosure controls and procedures and concluded they were effective as of September 30, 2019. The company noted the implementation of internal controls related to the new lease accounting standard adopted on January 1, 2019, but reported no other material changes to its internal control over financial reporting - The company's disclosure controls and procedures were deemed effective as of September 30, 2019[200](index=200&type=chunk) - Internal controls were implemented and refined related to the new lease accounting standard adopted in 2019. No other material changes to internal control over financial reporting occurred during the quarter[201](index=201&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company references Note 13 of the financial statements, highlighting the ongoing legal matters. The most significant proceeding is the investigation into Practice Fusion by the Department of Justice (DOJ), for which the company has reached an agreement in principle to pay **$145 million** to resolve all outstanding civil and criminal investigations - The company incorporates by reference Note 13, which details the agreement in principle with the DOJ to resolve investigations into Practice Fusion for **$145 million**[109](index=109&type=chunk)[203](index=203&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a new material risk factor related to the Practice Fusion investigation. This risk centers on the potential failure to finalize the agreement in principle with the DOJ, the significant costs and burdens of compliance if finalized, and the possibility of additional investigations or proceedings from other parties related to the same conduct - A new risk factor was added concerning the finalization of the agreement in principle with the DOJ regarding Practice Fusion[205](index=205&type=chunk) - Risks include the failure to reach a final settlement, the potential for substantial monetary penalties or exclusion from federal healthcare programs if the agreement is not complied with, and the possibility of follow-on litigation from other government entities or private parties[206](index=206&type=chunk)[207](index=207&type=chunk)[209](index=209&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activity under its **$250 million** program authorized through December 31, 2020. During the third quarter of 2019, the company repurchased **3.46 million shares** for a total of **$37.1 million**. As of September 30, 2019, approximately **$111.1 million** remained available for future repurchases under the program Stock Repurchase Activity (Q3 2019) | Period (Trade Date) | Total Shares Purchased (in thousands) | Average Price Paid Per Share | Approx. Dollar Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | Jul 2019 | 0 | $0.00 | $148,104 | | Aug 2019 | 0 | $0.00 | $148,104 | | Sep 2019 | 3,459 | $10.70 | $111,084 | | **Total Q3** | **3,459** | **$10.70** | **$111,084** | [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section provides a list of exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Lists the exhibits filed with the report, such as officer certifications (Rule 13a-14(a), Section 1350) and XBRL data files[212](index=212&type=chunk)

Allscripts Healthcare Solutions, Inc. (OTC:MDRX) Q3 2019 Earnings Conference Call November 4, 2019 4:30 PM ET Company Participants Stephen Shulstein - Vice President of Investor Relations Paul Black - Chief Executive Officer Rick Poulton - President Dennis Olis - Chief Financial Officer Conference Call Participants Michael Cherny - Bank of America Merrill Lynch Charles Rhyee - Cowen & Company Jack Rogoff - Goldman Sachs David Windley - Jefferies Donald Hooker - KeyBanc Capital Markets Eric Percher - Nephron ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited consolidated financial statements for Q2 2019 reveal a significant net loss due to a legal settlement and negative operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheets as of June 30, 2019, show total assets increased to **$3.24 billion**, with rising liabilities decreasing equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total current assets** | $804,051 | $858,965 | | **Total assets** | **$3,235,473** | **$3,181,484** | | **Total current liabilities** | $879,771 | $797,730 | | **Total liabilities** | **$1,919,266** | **$1,601,057** | | **Total stockholders' equity** | **$1,316,207** | **$1,580,427** | - The company adopted the new lease accounting standard (ASU 2016-02) on January 1, 2019, resulting in the recognition of **$96.1 million** in Right-of-use assets and corresponding operating lease liabilities[9](index=9&type=chunk)[11](index=11&type=chunk)[28](index=28&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q2 2019 revenue slightly increased, but a **$145.0 million** DOJ settlement resulted in a **$149.9 million** net loss, reversing prior-year income Q2 2019 vs Q2 2018 Statement of Operations (in thousands, except per share amounts) | Metric | Q2 2019 | Q2 2018 | | :--- | :--- | :--- | | Total revenue | $444,460 | $441,464 | | Gross profit | $184,122 | $173,767 | | Income (loss) from operations | $4,743 | ($60,094) | | Other loss, net | ($144,994) | ($13) | | Net (loss) income | ($149,930) | $74,272 | | Diluted (loss) income per share | ($0.90) | $0.36 | - The significant swing from net income to net loss is primarily attributable to a **$145.0 million** charge recorded in 'Other loss, net' for an agreement in principle with the DOJ[14](index=14&type=chunk)[108](index=108&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2019, operating cash flow turned negative at **$1.9 million** used, a significant decline from the prior year Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($1,910) | $66,540 | | Net cash used in investing activities | ($77,519) | ($20,518) | | Net cash provided by (used in) financing activities | $42,630 | ($67,453) | | **Net decrease in cash and cash equivalents** | **($36,656)** | **($21,722)** | - The company used **$65.1 million** for the repurchase of common stock and **$54.1 million** for the purchase of subsidiary shares owned by a non-controlling interest (Pulse8, Inc.) in the first six months of 2019[21](index=21&type=chunk)[54](index=54&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment changes, **$3.9 billion** contract backlog, debt facilities, and a **$145.0 million** DOJ settlement accrual - In Q1 2019, the company changed its reportable segments from Clinical and Financial Solutions and Population Health to Provider and Veradigm[27](index=27&type=chunk)[115](index=115&type=chunk) - Total contract backlog was **$3.9 billion** as of June 30, 2019, with **38%** expected to be recognized as revenue in the next 12 months[38](index=38&type=chunk) - Practice Fusion, an Allscripts subsidiary, reached an agreement in principle with the DOJ to resolve civil and criminal investigations for **$145.0 million**, which was accrued as a loss[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2019 financial results, including a **31%** increase in bookings, segment performance, and the impact of the **$145 million** DOJ settlement - Q2 2019 bookings totaled **$276 million**, a **31%** increase over the prior year period[148](index=148&type=chunk) - The company expects to fund the **$145 million** DOJ settlement through future cash flows and draws on its Revolving Facility[196](index=196&type=chunk) - Total non-GAAP R&D spending was **20.3%** of total revenue in Q2 2019, down from **23.9%** in Q2 2018[200](index=200&type=chunk) [Overview of Consolidated Results](index=33&type=section&id=Overview%20of%20Consolidated%20Results) Q2 2019 saw revenue growth of **0.7%** and improved gross margin, but a **$145.0 million** DOJ settlement led to a significant pre-tax loss Q2 2019 vs Q2 2018 Key Metrics (% Change) | Metric | Q2 2019 vs Q2 2018 % Change | | :--- | :--- | | Total revenue | 0.7% | | Gross profit | 6.0% | | Selling, general and administrative expenses | (14.1%) | | Research and development | (14.9%) | | Income (loss) from operations | (107.9%) | | Other loss, net | NM (>200%) | - The decrease in recurring revenue for Q2 2019 was primarily due to known attrition within the acquired EIS business, while non-recurring revenue increased due to higher perpetual software license sales[152](index=152&type=chunk) [Segment Operations](index=37&type=section&id=Segment%20Operations) Segment performance shows Provider revenue decreased **1.9%**, while Veradigm revenue grew **15.0%** with significant operating margin expansion Segment Revenue - Q2 2019 vs Q2 2018 (in thousands) | Segment | Q2 2019 | Q2 2018 | % Change | | :--- | :--- | :--- | :--- | | Provider | $405,690 | $413,467 | (1.9%) | | Veradigm | $38,521 | $33,497 | 15.0% | Segment Income from Operations - Q2 2019 vs Q2 2018 (in thousands) | Segment | Q2 2019 | Q2 2018 | % Change | | :--- | :--- | :--- | :--- | | Provider | $104,125 | $99,801 | 4.3% | | Veradigm | $12,231 | $8,281 | 47.7% | [Contract Backlog](index=39&type=section&id=Contract%20Backlog) Total contract backlog was **$3.885 billion** as of June 30, 2019, showing a slight increase from year-end 2018 but a decrease from prior-year quarter Contract Backlog by Category (in millions) | Category | June 30, 2019 | Dec 31, 2018 | June 30, 2018 | | :--- | :--- | :--- | :--- | | Software delivery, support and maintenance | $2,527 | $2,507 | $2,631 | | Client services | $1,358 | $1,350 | $1,689 | | **Total contract backlog** | **$3,885** | **$3,857** | **$4,320** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2019, liquidity included **$148 million** cash and **$719 million** credit facility, with operating cash flow turning negative for the first six months - Principal sources of liquidity as of June 30, 2019, include **$148 million** in cash and cash equivalents and **$719 million** available under the revolving credit facility[187](index=187&type=chunk) - Net cash used in operating activities for the first six months of 2019 was **$1.9 million**, compared to **$66.5 million** provided in the same period of 2018, primarily due to working capital changes and higher incentive compensation payments[188](index=188&type=chunk)[189](index=189&type=chunk) - The company amended its credit agreement on August 7, 2019, to provide financial flexibility for the **$145 million** DOJ settlement[196](index=196&type=chunk)[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk disclosures during the six months ended June 30, 2019 - There were no material changes in market risk disclosures during the six months ended June 30, 2019[202](index=202&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2019, with new internal controls implemented for lease accounting - Disclosure controls and procedures were deemed effective as of June 30, 2019[203](index=203&type=chunk) - Internal controls were implemented and refined related to the new leasing accounting standard adopted on January 1, 2019[204](index=204&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates Note 13 details, primarily the **$145.0 million** DOJ settlement agreement for Practice Fusion and other ongoing legal matters - The company refers to Note 13 for details on legal proceedings, the most significant of which is the **$145.0 million** settlement agreement in principle with the DOJ regarding Practice Fusion[206](index=206&type=chunk)[108](index=108&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) A new material risk factor addresses the DOJ's Practice Fusion investigation, warning of potential enforcement actions, substantial damages, and compliance costs - A new risk factor was disclosed regarding the finalization and compliance with the DOJ settlement for Practice Fusion[208](index=208&type=chunk) - Risks include failure to finalize the agreement, significant costs and burdens of compliance, potential for substantial monetary penalties, and possible exclusion of Practice Fusion from Medicare and Medicaid if terms are not met[209](index=209&type=chunk)[210](index=210&type=chunk) - The company may face additional investigations and legal proceedings from other governmental entities or third parties related to the same or similar conduct[208](index=208&type=chunk)[212](index=212&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On May 29, 2019, the company issued **61,448** unregistered common shares to a commercial partner under a ten-year agreement - The company issued **61,448** shares of common stock to a commercial partner on May 29, 2019, under a commercial agreement[213](index=213&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) On August 6, 2019, the company amended its credit agreement to modify the definition of EBITDA, providing flexibility for the DOJ settlement - The company amended its credit agreement on August 6, 2019, to adjust the definition of EBITDA, allowing for flexibility to absorb the impact of the DOJ settlement[214](index=214&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Credit Agreement amendment and certifications

Allscripts Healthcare Solutions, Inc. (OTC:MDRX) Q2 2019 Earnings Conference Call August 8, 2019 4:30 PM ET Company Participants Stephen Shulstein - VP, IR Paul Black - CEO Rick Poulton - President Dennis Olis - CFO Conference Call Participants Jamie Stockton - Wells Fargo Michael Cherny - Bank of America Merrill Lynch Robert Jones - Goldman Sachs Charles Rhyee - Cowen & Company Jeff Carol - William Blair & Company Stephanie Demko - Citi Donald Hooker - KeyBanc Capital Markets Eugene Mannheimer - Dougherty ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited financial statements and management's discussion and analysis for the first quarter of 2019 [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited consolidated financial statements for Q1 2019, including balance sheets, operations, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$3.24 billion** due to new lease accounting, while liabilities rose and equity decreased Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2019 (in thousands) | December 31, 2018 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $834,333 | $858,965 | | Goodwill | $1,373,996 | $1,373,744 | | **Total assets** | **$3,242,408** | **$3,181,484** | | **Total current liabilities** | $799,619 | $797,730 | | Long-term debt | $766,240 | $647,539 | | **Total liabilities** | **$1,786,291** | **$1,601,057** | | **Total stockholders' equity** | **$1,456,117** | **$1,580,427** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenue slightly decreased to **$432.0 million**, operating income improved, and net loss significantly narrowed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Q1 2019 (in thousands) | Q1 2018 (in thousands) | | :--- | :--- | :--- | | Total revenue | $432,049 | $433,722 | | Gross profit | $174,095 | $184,665 | | Income (loss) from operations | $2,645 | $(6,701) | | Loss from continuing operations, net of tax | $(7,977) | $(25,161) | | Net loss attributable to Allscripts stockholders | $(7,553) | $(39,874) | | Net loss per share (basic and diluted) | $(0.04) | $(0.22) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased to **$5.8 million** due to a tax payment, with cash used in investing and financing Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2019 (in thousands) | Q1 2018 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,816 | $58,308 | | Net cash used in investing activities | $(33,410) | $(149,812) | | Net cash (used in) provided by financing activities | $(9,516) | $72,713 | | **Net decrease in cash and cash equivalents** | **$(36,947)** | **$(18,726)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Details accounting policies, new lease standard adoption, segment changes, acquisitions, debt, and discontinued operations - The company changed its reportable segments to **Provider** and **Veradigm** in Q1 2019[29](index=29&type=chunk)[111](index=111&type=chunk) - Adoption of the new lease accounting standard (ASU 2016-02) on January 1, 2019, recognized **$97.4 million** in right-of-use assets[30](index=30&type=chunk)[44](index=44&type=chunk)[50](index=50&type=chunk) - Total contract backlog reached **$4.0 billion** as of March 31, 2019, with approximately **38%** expected within 12 months[40](index=40&type=chunk) - Acquired the remaining minority interest in Pulse8, Inc. for **$53.8 million** on March 1, 2019[53](index=53&type=chunk) - Repurchased **6.1 million shares** for **$64.9 million** during the quarter, with **$148.1 million** remaining for repurchase[66](index=66&type=chunk) - Discontinued operations reflect the sale of the Netsmart investment on December 31, 2018[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2019 financial performance, covering revenue, operating income, segment results, bookings, backlog, and liquidity [First Quarter 2019 Summary](index=31&type=section&id=First%20Quarter%202019%20Summary) Q1 2019 revenue slightly decreased to **$432 million**, while bookings increased **9%** and contract backlog reached **$4.0 billion** Q1 2019 Key Metrics | Metric | Q1 2019 | Q1 2018 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $432M | $433.7M | (0.4%) | | Bookings | $286M | $263M | 9% | | Contract Backlog | $4.0B | $4.3B | (7.0%) | [Overview of Consolidated Results](index=32&type=section&id=Overview%20of%20Consolidated%20Results) Total revenue slightly decreased to **$432.0 million**, gross margin declined, but operating income improved and net loss narrowed - Recurring revenue decreased **1.1%** to **$348.6 million**, mainly due to the OneContent business sale[147](index=147&type=chunk)[148](index=148&type=chunk) - Non-recurring revenue increased **2.9%** to **$83.4 million**, driven by higher perpetual software license sales[147](index=147&type=chunk)[148](index=148&type=chunk) - SG&A expenses decreased by **$19.7 million (16.4%)** due to lower severance, incentive compensation, and legal costs[152](index=152&type=chunk) - Recorded a **$1.0 million** recovery on a previously impaired investment, contrasting with a **$5.5 million** impairment charge in the prior year[160](index=160&type=chunk) [Segment Operations](index=36&type=section&id=Segment%20Operations) Segment realignment to Provider and Veradigm shows Provider revenue decline, while Veradigm revenue surged **54.0%** from acquisitions Segment Performance (in thousands) | Segment | Revenue Q1 2019 (in thousands) | Revenue Q1 2018 (in thousands) | % Change | Income from Ops Q1 2019 (in thousands) | Income from Ops Q1 2018 (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Provider | $392,607 | $410,424 | (4.3%) | $100,274 | $107,140 | (6.4%) | | Veradigm | $35,116 | $22,807 | 54.0% | $8,319 | $5,032 | 65.3% | - Provider segment revenue and profit declined primarily due to the sale of OneContent and Strategic Sourcing businesses, which contributed **$16 million** in Q1 2018 revenue[172](index=172&type=chunk) - Veradigm segment growth was driven by the **Practice Fusion acquisition** in Q2 2018 and organic growth[176](index=176&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents stood at **$148 million**, operating cash flow decreased due to a tax payment, but liquidity remains adequate Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2019 (in thousands) | Q1 2018 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,816 | $58,308 | | Net cash used in investing activities | $(33,410) | $(149,812) | | Net cash (used in) provided by financing activities | $(9,516) | $72,713 | - Net cash used in operating activities for discontinued operations was **$30.0 million**, primarily for an advance income tax payment on the Netsmart sale gain[187](index=187&type=chunk) - Financing activities included **$65.1 million** for stock repurchases and **$54.1 million** for the Pulse8 minority interest acquisition[191](index=191&type=chunk)[192](index=192&type=chunk) - Total non-GAAP R&D-related spending was **$92.9 million (21.5% of revenue)** in Q1 2019, an increase from Q1 2018[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported for Q1 2019 compared to the prior Annual Report on Form 10-K - Market risk disclosures remain materially unchanged from the Form 10-K for the year ended December 31, 2018[201](index=201&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2019, with new internal controls implemented for the lease accounting standard - Disclosure controls and procedures were deemed effective as of March 31, 2019[202](index=202&type=chunk) - Internal controls were updated for the new lease accounting standard (ASU 2016-02), with no other material changes reported[203](index=203&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Details legal contingencies, including investigations into EIS Business and Practice Fusion, and a ransomware class action lawsuit - Legal proceedings details are incorporated by reference from Note 13, "Contingencies"[206](index=206&type=chunk) - Key legal matters include investigations into the **EIS Business** and **Practice Fusion**, and a class action lawsuit from a ransomware attack[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) A material update to risk factors highlights a government investigation into Practice Fusion regarding EHR certification and compliance - A new risk factor concerns the government investigation into **Practice Fusion**, acquired in February 2018[208](index=208&type=chunk) - The investigation involves a grand jury subpoena (March 2019) related to **EHR certification**, **Anti-Kickback Statute**, and **HIPAA**, with potential material adverse effects[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchase activity, with **6.1 million shares** repurchased for **$64.9 million** in Q1 2019 under the authorized program Stock Repurchase Activity (Q1 2019) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | Total Cost (thousands) | | :--- | :--- | :--- | :--- | | Jan 2019 | 0 | $0.00 | $0 | | Feb 2019 | 500 | $10.73 | $5,365 | | Mar 2019 | 5,649 | $10.55 | $59,597 | | **Total Q1** | **6,149** | **$10.56** | **$64,962** | - As of March 31, 2019, **$148.1 million** remained available under the stock repurchase program, authorized through December 31, 2020[209](index=209&type=chunk)[210](index=210&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications, along with XBRL Interactive Data Files[211](index=211&type=chunk) [Signatures](index=44&type=section&id=SIGNATURES) The report is signed by the Chief Financial Officer - The report is signed by Dennis M. Olis, Chief Financial Officer, on May 3, 2019[215](index=215&type=chunk)