NextGen Healthcare Reports Fiscal 2022 First Quarter Results

7/29/2021

Raises Fiscal 2022 Revenue Guidance

ATLANTA——(业务我们E)--Jul. 29, 2021-- NextGen Healthcare, Inc.(Nasdaq: NXGN), a leading provider of ambulatory-focused technology solutions, today announced its operating results for the fiscal first quarter ended June 30, 2021.

Fiscal 2022 First Quarter Highlights

  • Total revenue for the fiscal 2022 first quarter was $146.1 millioncompared to $130.9 millionfor the same period a year ago, or 12 percent growth.
  • Recurring revenue accounted for 91 percent of total revenue, or $132.4 million, growing 11 percent over the year ago period.
  • 订阅服务第一财政收入quarter generated $38.3 million, or 8 percent growth over the prior year period, driven by demand for patient experience-related solutions.
  • Managed services, which includes revenue cycle management and cloud services, generated revenue of $29.4 million, a 31 percent growth over fiscal 2021 first quarter as patient volumes rebounded.
  • Fiscal 2022 first quarter bookings, which reflects annual contract value, was $34.3 million, 34 percent higher than the prior year period.
  • Fully diluted net income per share in the fiscal 2022 first quarter was $0.04compared to a net loss of $0.01per share the same period a year ago.
  • On a non-GAAP basis, fully diluted earnings per share for the fiscal 2022 first quarter was $0.25compared to $0.21for the same period a year ago.

“NextGen Healthcare has started the fiscal year with strong momentum and is well positioned to execute its operational and strategic objectives. Making moderate but intentional incremental investments to drive sustainable growth at an increasing rate, while also maintaining operational excellence, continues to be the Company’s emphasis,” said Chairman, Jeff Margolis. “The Board looks forward to supporting our solid executive leadership team to execute on these plans and deliver significant value for our shareholders.”

“NextGen Healthcare delivered another quarter of strong financial performance reflecting growing demand for our expansive offerings,” said Executive Leadership Committee Member and Chief Financial Officer, Jamie Arnold. “We remain focused on the business and clinical success of our clients across a spectrum of primary care and focused medical specialties in ambulatory care. Notably, NextGen continues to gain new clients because of the advantages of our comprehensive and integrated offering and our leadership team is committed to advancing our long-term growth strategy by expanding the breadth of our product offering and enhancing our commercial capabilities. We are well positioned to achieve our corporate growth goals.”

188金宝搏手机app updates its fiscal year 2022 financial guidance as follows:

  • Increase revenue to between $576and $586 million, from between $574and $584 millionprior, and
  • Reaffirm non-GAAP earnings per share range between $0.89and $0.95

Conference Call Information

188金宝搏手机app will host a conference call to discuss its fiscal year 2022 first quarter operating results today at 5:00 p.m. Eastern time. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 866-342-8591 or 203-518-9713 for international callers and referencing participant code NXGNQ122 approximately 15 minutes prior to the call. A recording of the live webcast will be available oninvestor.www.orderpulsa.comafter the call. It will be archived for 90 days until October 30, 2021.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

本新闻稿中可能包含有远见的统计ements within the meaning of the federal securities laws, including but not limited to, statements regarding future events including but not limited to the COVID-19 pandemic, developments in the healthcare sector and regulatory framework, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue, net income, and earnings per share). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements and additional risks and uncertainties are set forth in Part I, Item A of our most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, including but not limited to: volatility and uncertainty in the global economy, financial markets and on our customers in light of the continuing COVID-19 pandemic, including the potential (i) slowdown or shutdown of preventive and elective medical procedures, (ii) delay in the contracting for additional products and services by our customers and (iii) delay in the sales cycle for new customers; a determination by the jury that the Company has liability in litigation advanced by a former director and shareholder; the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; uncertainties related to the future impact of U.S.tax reform; the impact of governmental and regulatory agency investigations; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company's ability or inability to attract and retain qualified personnel; possible regulation of the Company's software by the U.S. Food and Drug Administration;改变会计估计和假设used to prepare the prior periods' financial statements; disruptions caused by acquisitions of companies, products, or technologies; the extent to which the COVID-19 pandemic and measures taken in response thereto could adversely affect our financial condition and results of operations; and general economic conditions. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of a fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

USE OF NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S.GAAP. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying financial tables. Other companies may calculate non-GAAP measures differently than NextGen Healthcare, Inc., which limits comparability between companies. The Company believes that its presentation of non-GAAP diluted earnings per share provides useful supplemental information to investors and management regarding the Company's financial condition and results. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The Company calculates free cash flow by as total net cash provided by operating activities, net of cash used for the additions of capitalized software costs and equipment and improvements. The Company calculates net debt as line of credit less cash and cash equivalents. The Company calculates non-GAAP diluted earnings per share by excluding net acquisition costs, amortization of acquired intangible assets, amortization of deferred debt issuance costs, impairment of assets, restructuring costs, net securities litigation defense and related costs, share-based compensation, and other non-run-rate expenses from GAAP income before provision for income taxes.

The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate expected to be applied to each quarter of fiscal year 2022 is 20.0%. The determination of this rate is based on the consideration of both historic and projected financial results. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

The Company’s future period guidance in this release includes adjustments for items not indicative of the Company’s core operations. Such adjustments are generally expected to be of a nature similar to those adjustments applied to the Company’s historic GAAP financial results in the determination of the Company’s non-GAAP diluted earnings per share. Such adjustments, however, may be affected by changes in ongoing assumptions and judgments as to the items that are excluded in the calculation of non-GAAP adjusted net income and adjusted diluted earnings per share, as described in this release. The exact amount and probable significance of these adjustments, including net acquisition costs, impairment of assets, restructuring costs, net securities litigation defense costs, and other non-run-rate expenses, are not currently determinable without unreasonable efforts, but may be significant. These items cannot be reliably quantified or forecasted due to the combination of their historic and expected variability. It is therefore not practicable to reconcile this non-GAAP guidance to the most comparable GAAP measures.

About NextGen Healthcare, Inc.

NextGen Healthcare, Inc.(Nasdaq: NXGN) is a leading provider of ambulatory-focused technology solutions. We are empowering the transformation of ambulatory care—partnering with medical, behavioral and dental providers in their journey to value-based care to make healthcare better for everyone. We go beyond EHR and PM. Our integrated solutions help increase clinical productivity, enrich the patient experience, and ensure healthy financial outcomes. We believe in better. Learn more atwww.orderpulsa.com, and follow us onFacebook,Twitter,LinkedIn,YouTubeandInstagram.

NEXTGEN HEALTHCARE, INC.

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

Three Months Ended June 30,

2021

2020

Revenues:

Recurring

$

132,381

$

119,522

Software, hardware, and other non-recurring

13,703

11,357

Total revenues

146,084

130,879

Cost of revenue:

Recurring

57,160

50,429

Software, hardware, and other non-recurring

7,497

6,041

Amortization of capitalized software costs and acquired intangible assets

8,084

9,899

Total cost of revenue

72,741

66,369

Gross profit

73,343

64,510

Operating expenses:

Selling, general and administrative

48,486

40,737

Research and development costs, net

19,321

18,222

Amortization of acquired intangible assets

881

1,112

Impairment of assets

382

Restructuring costs

539

2,562

Total operating expenses

69,609

62,633

Income from operations

3,734

1,877

Interest income

12

6

Interest expense

(317

)

(1,107

)

Other income (expense), net

(22

)

16

Income before provision for income taxes

3,407

792

Provision for income taxes

559

1,616

Net income (loss)

$

2,848

$

(824

)

Net income (loss) per share:

Basic

$

0.04

$

(0.01

)

Diluted

$

0.04

$

(0.01

)

Weighted-average shares outstanding:

Basic

67,175

66,296

Diluted

67,799

66,296

NEXTGEN HEALTHCARE, INC.

PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

June 30, 2021

March 31, 2021

ASSETS

Current assets:

Cash and cash equivalents

$

63,002

$

73,295

Restricted cash and cash equivalents

7,048

5,280

Accounts receivable, net

73,495

77,541

Contract assets

20,446

19,481

Income taxes receivable

765

765

Prepaid expenses and other current assets

29,434

31,282

Total current assets

194,190

207,644

Equipment and improvements, net

13,476

14,539

Capitalized software costs, net

41,146

41,474

Operating lease assets

16,442

18,446

Deferred income taxes, net

19,446

19,474

Contract assets, net of current

1,930

1,976

Intangibles, net

33,601

36,700

Goodwill

267,212

267,212

Other assets

37,121

37,021

Total assets

$

624,564

$

644,486

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

7,213

$

11,378

Contract liabilities

52,281

52,863

Accrued compensation and related benefits

28,410

50,374

Income taxes payable

872

584

Operating lease liabilities

12,002

12,735

Other current liabilities

54,284

52,699

Total current liabilities

155,062

180,633

Deferred compensation

7,363

6,620

Operating lease liabilities, net of current

16,423

18,453

Other noncurrent liabilities

7,148

7,136

Total liabilities

185,996

212,842

Commitments and contingencies

Shareholders' equity:

Common stock

$0.01par value; authorized 100,000 shares; issued and outstanding 67,362 and 67,069 shares at June 30, 2021and March 31, 2021, respectively

674

671

Additional paid-in capital

308,374

304,263

积累其他综合损失

(1,962

)

(1,924

)

Retained earnings

131,482

128,634

Total shareholders' equity

438,568

431,644

Total liabilities and shareholders' equity

$

624,564

$

644,486

NEXTGEN HEALTHCARE, INC.

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Three Months Ended June 30,

2021

2020

Cash flows from operating activities:

Net income (loss)

$

2,848

$

(824

)

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of capitalized software costs

5,866

4,763

Amortization and write-off of debt issuance costs

127

177

Amortization of other intangibles

3,099

6,248

Change in fair value of contingent consideration

25

Deferred income taxes

28

16

Depreciation

2,108

1,996

Excess tax deficiency (benefit) from share-based compensation

(176

)

867

Impairment of assets

382

Loss on disposal of equipment and improvements

38

Non-cash operating lease costs

1,628

1,683

Provision for bad debts

639

869

Share-based compensation

6,412

5,393

Changes in assets and liabilities, net of amounts acquired:

Accounts receivable

3,407

2,286

Contract assets

(919

)

(1,082

)

Accounts payable

(4,334

)

(1,391

)

Contract liabilities

(582

)

(5,626

)

Accrued compensation and related benefits

(21,964

)

(1,338

)

Income taxes

464

635

Deferred compensation

743

688

Operating lease liabilities

(2,676

)

(2,596

)

Other assets and liabilities

3,175

4,883

Net cash provided by operating activities

313

17,672

Cash flows from investing activities:

Additions to capitalized software costs

(5,538

)

(5,612

)

Additions to equipment and improvements

(1,002

)

(616

)

Net cash used in investing activities

(6,540

)

(6,228

)

Cash flows from financing activities:

Proceeds from line of credit

50,000

Proceeds from issuance of shares under employee plans

671

426

Payments for taxes related to net share settlement of equity awards

(2,969

)

(1,834

)

Net cash provided by (used in) financing activities

(2,298

)

48,592

Net increase (decrease) in cash, cash equivalents, and restricted cash

(8,525

)

60,036

现金、现金等价物和限制现金在乞讨inning of period

78,575

140,319

Cash, cash equivalents, and restricted cash at end of period

$

70,050

$

200,355

NEXTGEN HEALTHCARE, INC.

PRELIMINARY SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands)

The following table presents our revenues disaggregated by our major revenue categories and by occurrence:

Three Months Ended June 30,

2021

2020

Recurring revenues:

Subscription services

$

38,284

$

35,360

Support and maintenance

38,486

38,547

Managed services

29,431

22,493

Electronic data interchange and data services

26,180

23,122

Total recurring revenues

132,381

119,522

Software, hardware, and other non-recurring revenues:

Software license and hardware

7,214

4,740

Other non-recurring services

6,489

6,617

Total software, hardware and other non-recurring revenues

13,703

11,357

Total revenues

$

146,084

$

130,879

Recurring revenues as a percentage of total revenues

90.6

%

91.3

%

NEXTGEN HEALTHCARE, INC.

PRELIMINARY NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE

Three Months Ended June 30,

2021

2020

Income before provision for income taxes - GAAP

$

3,407

$

792

Non-GAAP adjustments:

Acquisition costs, net

120

Amortization of acquired intangible assets

3,099

6,248

Amortization of deferred debt issuance costs

127

177

Impairment of assets

382

Restructuring costs

539

2,562

Securities litigation defense and related costs

4,858

1,026

Share-based compensation

6,412

5,393

Other non-run-rate expenses*

2,719

1,311

Total adjustments to GAAP income before provision for income taxes:

18,136

16,837

Income before provision for income taxes - Non-GAAP

21,543

17,629

Provision for income taxes

4,309

3,526

Net income - Non-GAAP

$

17,234

$

14,103

摊薄每股净收益——非公认会计原则

$

0.25

$

0.21

Weighted-average shares outstanding (diluted):

67,799

66,296

* Other non-run-rate expenses for the three months ended June 30, 2021consist primarily of $470excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses, related to the restructuring plan and $2,249of severance and other costs related to the departure of the Chief Executive Officer.

Other non-run-rate expenses for the three months ended June 30, 2020consist primarily of $762excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $478of professional services costs not related to core operations, and $71of incremental costs and penalties primarily due to the cancellation of certain events directly associated with the COVID-19 pandemic.

RECONCILIATION OF FREE CASH FLOW

Three Months Ended June 30,

2021

2020

Net cash provided by operating activities

$

313

$

17,672

Additions to capitalized software costs

(5,538

)

(5,612

)

Additions to equipment and improvements

(1,002

)

(616

)

Free cash flow

$

(6,227

)

$

11,444

Media Relations Contact
Tami Stegmaier
(949) 237-6083
tstegmaier@www.orderpulsa.com

Investor Relations Contact
Matthew Scalo
(415) 370-9202
mscalo@www.orderpulsa.com

Source: NextGen Healthcare, Inc.