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Quarterly Financial Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Financial Information

The following tables contain a summary of our unaudited quarterly consolidated results of operations for our last eight fiscal quarters.

 

 

Quarter Ended

 

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

(In thousands, except per share amounts)

 

2017 (1)

 

 

2017 (1)

 

 

2017

 

 

2017

 

 

Revenue

 

$

517,334

 

 

$

449,442

 

 

$

426,091

 

 

$

413,475

 

 

Cost of revenue

 

 

303,235

 

 

 

247,523

 

 

 

238,600

 

 

 

234,823

 

 

Gross profit

 

 

214,099

 

 

 

201,919

 

 

 

187,491

 

 

 

178,652

 

 

Selling, general and administrative expenses

 

 

146,037

 

 

 

117,352

 

 

 

112,037

 

 

 

110,845

 

 

Research and development

 

 

73,471

 

 

 

51,057

 

 

 

46,459

 

 

 

49,232

 

 

Asset impairment charges

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

Amortization of intangible and acquisition-related

  assets

 

 

10,414

 

 

 

8,137

 

 

 

7,891

 

 

 

7,312

 

 

Income from operations

 

 

(15,823

)

 

 

25,373

 

 

 

21,104

 

 

 

11,263

 

 

Interest expense

 

 

(24,757

)

 

 

(22,252

)

 

 

(20,290

)

 

 

(20,180

)

 

Other income (expense), net

 

 

958

 

 

 

(570

)

 

 

(214

)

 

 

239

 

 

Impairment of and losses on long-term investments

 

 

0

 

 

 

(20,700

)

 

 

(144,590

)

 

 

0

 

 

Equity in net income (loss) of unconsolidated

   investments

 

 

115

 

 

 

449

 

 

 

(28

)

 

 

285

 

 

Loss from continuing operations before income taxes

 

 

(39,507

)

 

 

(17,700

)

 

 

(144,018

)

 

 

(8,393

)

 

Income tax benefit (provision)

 

 

49,694

 

(2)

 

238

 

 

 

1,007

 

 

 

(172

)

 

Income (loss) from continuing operations, net of tax

 

 

10,187

 

 

 

(17,462

)

 

 

(143,011

)

 

 

(8,565

)

 

Income from discontinued operations, net of tax

 

 

4,676

 

 

 

0

 

 

 

0

 

 

 

0

 

 

Net income (loss)

 

 

14,863

 

 

 

(17,462

)

 

 

(143,011

)

 

 

(8,565

)

 

Less: Net loss (income) attributable to non-controlling

   interest

 

 

1,918

 

 

 

(163

)

 

 

264

 

 

 

(453

)

 

Less: Accretion of redemption preference on redeemable convertible non-controlling interest - Netsmart

 

 

(10,963

)

 

 

(10,962

)

 

 

(10,963

)

 

 

(10,962

)

 

Net income (loss) attributable to Allscripts

   Healthcare Solutions, Inc. stockholders

 

$

5,818

 

 

$

(28,587

)

 

$

(153,710

)

 

$

(19,980

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.00

 

 

$

(0.16

)

 

$

(0.85

)

 

$

(0.11

)

 

Discontinued operations

 

$

0.03

 

 

$

0.00

 

 

$

0.00

 

 

$

0.00

 

 

Net income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders per share

 

$

0.03

 

 

$

(0.16

)

 

$

(0.85

)

 

$

(0.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.00

 

 

$

(0.16

)

 

$

(0.85

)

 

$

(0.11

)

 

Discontinued opererations

 

$

0.03

 

 

$

0.00

 

 

$

0.00

 

 

$

0.00

 

 

Net income (loss) attributable to Allscripts Healthcare Solutions, Inc. stockholders per share

 

$

0.03

 

 

$

(0.16

)

 

$

(0.85

)

 

$

(0.11

)

 

 

 

 

 

Quarter Ended

 

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

(In thousands, except per share amounts)

 

2016 (3)

 

 

2016 (3)

 

 

2016 (3)

 

 

2016

 

 

Revenue

 

$

425,436

 

 

$

392,384

 

 

$

386,521

 

 

$

345,558

 

 

Cost of revenue

 

 

239,138

 

 

 

226,225

 

 

 

219,837

 

 

 

193,660

 

 

Gross profit

 

 

186,298

 

 

 

166,159

 

 

 

166,684

 

 

 

151,898

 

 

Selling, general and administrative expenses

 

 

115,132

 

 

 

98,778

 

 

 

94,802

 

 

 

84,153

 

 

Research and development

 

 

47,836

 

 

 

45,142

 

 

 

47,891

 

 

 

47,037

 

 

Asset impairment charges

 

 

0

 

 

 

0

 

 

 

0

 

 

 

4,650

 

 

Amortization of intangible and acquisition-related

  assets

 

 

10,903

 

 

 

5,365

 

 

 

5,417

 

 

 

4,162

 

 

Income from operations

 

 

12,427

 

 

 

16,874

 

 

 

18,574

 

 

 

11,896

 

 

Interest expense

 

 

(25,384

)

(5)

 

(19,367

)

 

 

(16,421

)

 

 

(6,969

)

 

Other income (expense), net

 

 

621

 

 

 

(6

)

 

 

106

 

 

 

366

 

 

Equity in net loss of unconsolidated

   investments

 

 

0

 

 

 

0

 

 

 

(4,898

)

 

 

(2,603

)

 

(Loss) income before income taxes

 

 

(12,336

)

 

 

(2,499

)

 

 

(2,639

)

 

 

2,690

 

 

Income tax benefit (provision)

 

 

15,218

 

(4)

 

2,656

 

(4)

 

503

 

(4)

 

(563

)

(4)

Net income (loss)

 

 

2,882

 

 

 

157

 

 

 

(2,136

)

 

 

2,127

 

 

Less: Net (income) loss attributable to non-controlling

   interest

 

 

(4

)

 

 

(151

)

 

 

87

 

 

 

(78

)

 

Less: Accretion of redemption preference on redeemable convertible non-controlling interest - Netsmart

 

 

(10,192

)

 

 

(10,191

)

 

 

(8,153

)

 

 

0

 

 

Net (loss) income attributable to Allscripts

   Healthcare Solutions, Inc. stockholders

 

$

(7,314

)

 

$

(10,185

)

 

$

(10,202

)

 

$

2,049

 

 

(Loss) earnings per share - basic and diluted attributable

   to Allscripts Healthcare Solutions, Inc. stockholders

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.05

)

 

$

0.01

 

 

 

 

 

(1)

Results of operations for the quarter include the results of operations of (i) DeVero since July 17, 2017, (ii) the provider and patient engagement business of NantHealth since August 25, 2017 and (iii) the results of operations of the EIS Business since October 2, 2017.

 

(2)

Income tax benefit (provision) for the quarter ended December 31, 2017, reflects the estimated impact of the United States Tax Cuts and Jobs Act which was enacted on December 22, 2017 and introduced significant changes to the income tax law in the United States.

 

(3)

Results of operations for the quarter include the results of operations of (i) Netsmart since April 19, 2016, (ii) HealthMEDX since October 27, 2016, and (iii) the results of operations of three third parties in which we acquired a controlling interest during the quarters ended September 30th December 31st, 2016 from the date of each acquisition.

(4)

Income tax benefit (provision) reflects the recognition (release) of a valuation allowance of ($14.3) million, ($3.3) million, $0.9 million and ($0.9) million for federal credit carryforwards, and foreign and state net operating loss carryforwards in the quarters ended December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.  

(5)

Interest expense includes the write-off of $5.2 million deferred debt issuance costs in connection with Netsmart’s amendment of its First Lien Credit Agreement during the quarter ended December 31, 2016 and the write-off of $1.4 million of deferred debt issuance costs in connection with amending the Senior Secured Credit Facility during the quarter ended September 30, 2015.