NextGen Healthcare Reports Fiscal 2022 Second Quarter Results

10/28/2021

Raises Fiscal 2022 Financial Guidance

ATLANTA--(BUSINESS WIRE)--Oct. 28, 2021-- NextGen Healthcare, Inc.(Nasdaq: NXGN), a leading provider of ambulatory-focused technology solutions, today announced its operating results for the fiscal second quarter ended September 30, 2021.

Fiscal 2022 Second Quarter Highlights

  • Total revenue for the fiscal 2022 second quarter was $149.3 millioncompared to $140.0 millionfor the same period a year ago, or 7 percent growth.
  • Recurring revenue accounted for 91 percent of total revenue, or $135.6 million, growing 8 percent over the year ago period.
  • Subscription services revenue in the fiscal second quarter generated $41.1 million或较上年同期增长12%,driven by demand for patient experience-related solutions.
  • Managed services, which includes revenue cycle management and cloud services, generated revenue of $29.5 million, a 13 percent growth over fiscal 2021 second quarter as patient volumes rebounded.
  • Fiscal 2022 quarter bookings, which reflects annual contract value, was $39.1 million, 25 percent higher than the prior year period.
  • Fully diluted net loss per share in the fiscal 2022 second quarter was $0.10compared to net income of $0.16per share the same period a year ago. Fiscal 2022 second quarter includes $22.1 millionrelated to the proxy contest and the Hussein litigation.
  • On a non-GAAP basis, fully diluted earnings per share for the fiscal 2022 second quarter was $0.29compared to $0.30for the same period a year ago.
  • Appointed David Sidesas President and Chief Executive Officer effective September 22, 2021.
  • At the annual shareholder meeting on Oct. 13,分享holders voted in favor of the Company’s proposed board of director slate, which includes three new members, and re-incorporation in Delaware.

“Our record fiscal second quarter revenue performance continues to demonstrate the overall strength of NextGen Healthcare’s brand in the market, the exceptional value its solutions offer clients, and the team’s ability to execute on operational and strategic objectives,” said David Sides, President and Chief Executive Officer of 188金宝搏手机app . “The recent annual shareholder meeting provided an excellent opportunity to engage our broad investor base and incorporate their feedback into our ongoing corporate governance activities. Investor engagement is important to 188金宝搏手机app and we are pleased with the outcome of the shareholder vote. I look forward to working side-by-side with every employee as we leverage our strong foundation to better serve our clients. In doing so, we will accelerate profitable growth, shareholder value and achieve new heights.”

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

  • Increase revenue to between $584and $590 million, from between $576and $586 millionprior
  • Increase non-GAAP earnings per share range to between $0.90and $0.96from between $0.89and $0.95prior

Conference Call Information

188金宝搏手机app will host a conference call to discuss its fiscal year 2022 second 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 877-876-9173 or 785-424-1667 for international callers and referencing participant code NXGNQ222 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.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements 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.税制改革;政府和regulat的影响ory 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; changes of accounting estimates and assumptions 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

本新闻稿中包含一些非公认会计原则(生ally 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, shareholder disputes and related costs, which include net securities litigation defense, proxy contest, and related costs, share-based compensation, and other non-run-rate expenses from GAAP income before provision for income taxes.

公司利用规范化税老鼠e 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, shareholder disputes and related costs, which include net securities litigation defense, proxy contest, and related 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.

188金宝搏手机app次世代医疗有限公司

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)

Three Months Ended
September 30,

Six Months Ended
September 30,

2021

2020

2021

2020

Revenues:

Recurring

$

135,609

$

125,691

$

267,990

$

245,213

Software, hardware, and other non-recurring

13,677

14,311

27,380

25,668

Total revenues

149,286

140,002

295,370

270,881

Cost of revenue:

Recurring

57,119

52,906

114,279

103,335

Software, hardware, and other non-recurring

7,610

6,083

15,107

12,124

Amortization of capitalized software costs and acquired intangible assets

7,969

9,961

16,053

19,860

Total cost of revenue

72,698

68,950

145,439

135,319

Gross profit

76,588

71,052

149,931

135,562

Operating expenses:

Selling, general and administrative

63,891

41,950

112,377

82,687

Research and development costs, net

18,518

17,692

37,839

35,914

Amortization of acquired intangible assets

881

1,112

1,762

2,224

Impairment of assets

1,195

—

1,577

—

Restructuring costs

—

—

539

2,562

Total operating expenses

84,485

60,754

154,094

123,387

Income (loss) from operations

(7,897

)

10,298

(4,163

)

12,175

Interest income

17

12

29

18

Interest expense

(320

)

(1,135

)

(637

)

(2,242

)

Other expense, net

(12

)

(18

)

(34

)

(2

)

Income (loss) before provision for (benefit of) income taxes

(8,212

)

9,157

(4,805

)

9,949

Provision for (benefit of) income taxes

(1,441

)

(1,298

)

(882

)

318

Net income (loss)

$

(6,771

)

$

10,455

$

(3,923

)

$

9,631

Net income (loss) per share:

Basic

$

(0.10

)

$

0.16

$

(0.06

)

$

0.14

Diluted

$

(0.10

)

$

0.16

$

(0.06

)

$

0.14

Weighted-average shares outstanding:

Basic

67,406

66,688

67,291

66,493

Diluted

67,406

66,689

67,291

66,493

188金宝搏手机app次世代医疗有限公司

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

September 30, 2021

March 31, 2021

ASSETS

Current assets:

Cash and cash equivalents

$

75,303

$

73,295

Restricted cash and cash equivalents

6,261

5,280

Accounts receivable, net

71,988

77,541

Contract assets

20,521

19,481

Income taxes receivable

9,066

765

Prepaid expenses and other current assets

27,574

31,282

Total current assets

210,713

207,644

Equipment and improvements, net

12,030

14,539

Capitalized software costs, net

41,570

41,474

Operating lease assets

14,431

18,446

Deferred income taxes, net

19,445

19,474

Contract assets, net of current

1,991

1,976

Intangibles, net

30,502

36,700

Goodwill

267,212

267,212

Other assets

37,628

37,021

Total assets

$

635,522

$

644,486

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

12,687

$

11,378

Contract liabilities

53,506

52,863

Accrued compensation and related benefits

34,053

50,374

Income taxes payable

201

584

Operating lease liabilities

11,290

12,735

Other current liabilities

59,440

52,699

Total current liabilities

171,177

180,633

Deferred compensation

7,275

6,620

Operating lease liabilities, net of current

14,646

18,453

Other noncurrent liabilities

7,148

7,136

Total liabilities

200,246

212,842

Commitments and contingencies

Shareholders' equity:

Common stock

$0.01par value; authorized 100,000 shares; issued and outstanding 68,394 and 67,069 shares at September 30, 2021and March 31, 2021, respectively

684

671

Additional paid-in capital

311,793

304,263

积累其他综合损失

(1,912

)

(1,924

)

Retained earnings

124,711

128,634

Total shareholders' equity

435,276

431,644

Total liabilities and shareholders' equity

$

635,522

$

644,486

188金宝搏手机app次世代医疗有限公司

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Three Months Ended September 30,

Six Months Ended September 30,

2021

2020

2021

2020

Cash flows from operating activities:

Net income (loss)

$

(6,771

)

$

10,455

$

(3,923

)

$

9,631

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

Amortization of capitalized software costs

5,751

5,090

11,617

9,853

Amortization of debt issuance costs

127

178

254

355

Amortization of other intangibles

3,099

5984年

6,198

12,232

Change in fair value of contingent consideration

—

25

—

50

Deferred income taxes

1

(43

)

29

(27

)

Depreciation

1,673

1,941

3,781

3,937

Excess tax deficiency from share-based compensation

816

74

640

941

Impairment of assets

1,195

—

1,577

—

Loss on disposal of equipment and improvements

39

—

77

—

Non-cash operating lease costs

1,459

1,738

3,087

3,421

Provision for bad debts

40

530

679

1,399

Share-based compensation

5,223

5,437

11,635

10,830

Changes in assets and liabilities:

Accounts receivable

1,467

1,219

4,874

3,505

Contract assets

(136

)

(1,399

)

(1,055

)

(2,481

)

Accounts payable

5,442

(2,365

)

1,108

(3,756

)

Contract liabilities

1,225

(2,718

)

643

(8,344

)

Accrued compensation and related benefits

5,643

9,686

(16,321

)

8,348

Income taxes

(9,788

)

(2,718

)

(9,324

)

(2,083

)

Deferred compensation

(88

)

152

655

840

Operating lease liabilities

(2,684

)

(2,628

)

(5,360

)

(5,224

)

Other assets and liabilities

6,433

(278

)

9,608

4,605

Net cash provided by operating activities

20,166

30,360

20,479

48,032

Cash flows from investing activities:

Additions to capitalized software costs

(6,175

)

(6,471

)

(11,713

)

(12,083

)

Additions to equipment and improvements

(683

)

(148

)

(1,685

)

(764

)

Acquisition related working capital adjustment payments

—

(206

)

—

(206

)

Net cash used in investing activities

(6,858

)

(6,825

)

(13,398

)

(13,053

)

Cash flows from financing activities:

Proceeds from line of credit

—

—

—

50,000

Repayments on line of credit

—

(115,000

)

—

(115,000

)

Proceeds from issuance of shares under employee plans

438

372

1,109

798

Payments for taxes related to net share settlement of equity awards

(2,232

)

(417

)

(5,201

)

(2,251

)

Net cash used in financing activities

(1,794

)

(115,045

)

(4,092

)

(66,453

)

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

11,514

(91,510

)

2,989

(31,474

)

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

70,050

200,355

78,575

140,319

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

$

81,564

$

108,845

$

81,564

$

108,845

188金宝搏手机app次世代医疗有限公司

SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands)

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

Three Months Ended September 30,

Six Months Ended September 30,

2021

2020

2021

2020

Recurring revenues:

Subscription services

$

41,139

$

36,867

$

79,423

$

72,227

Support and maintenance

39,004

38,076

77,490

76,623

Managed services

29,506

26,218

58,937

48,711

Electronic data interchange and data services

25,960

24,530

52,140

47,652

Total recurring revenues

135,609

125,691

267,990

245,213

Software, hardware, and other non-recurring revenues:

Software license and hardware

8,068

8,014

15,282

12,754

Other non-recurring services

5,609

6,297

12,098

12,914

Total software, hardware and other non-recurring revenues

13,677

14,311

27,380

25,668

Total revenues

$

149,286

$

140,002

$

295,370

$

270,881

Recurring revenues as a percentage of total revenues

90.8

%

89.8

%

90.7

%

90.5

%

188金宝搏手机app次世代医疗有限公司

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE

Three Months Ended September 30,

Six Months Ended September 30,

2021

2020

2021

2020

Income (loss) before provision for income taxes - GAAP

$

(8,212

)

$

9,157

$

(4,805

)

$

9,949

Non-GAAP adjustments:

Acquisition costs, net

—

142

—

262

Amortization of acquired intangible assets

3,100

5984年

6,199

12,232

Amortization of deferred debt issuance costs

127

178

254

355

Impairment of assets

1,195

—

1,577

—

Restructuring costs

—

—

539

2,562

Shareholder disputes and related costs

22,134

3,233

26,992

4,259

Share-based compensation

5,223

5,437

11,635

10,830

Other non-run-rate expenses*

1,309

1,154

4,028

2,465

Total adjustments to GAAP income before provision for income taxes:

33,088

16,128

51,224

32,965

Income before provision for income taxes - Non-GAAP

24,876

25,285

46,419

42,914

Provision for income taxes

4,975

5,057

9,284

8,583

Net income - Non-GAAP

$

19,901

$

20,228

$

37,135

$

34,331

Diluted net income per share - Non-GAAP

$

0.29

$

0.30

$

0.55

$

0.52

Weighted-average shares outstanding (diluted):

67,699

66,689

67,734

66,493

* Other non-run-rate expenses for the three months ended September 30, 2021consist primarily of $353excess lease-related expense for vacated facilities, lease termination costs, and other costs, $458of executive transition costs, and $498of incremental costs and penalties primarily due to the cancellation of certain events directly associated with the COVID-19 pandemic.

Other non-run-rate expenses for the three months ended September 30, 2020consist primarily of $664excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $462of professional services costs not related to core operations, and $28of incremental costs and penalties primarily due to the cancellation of certain events directly associated with the COVID-19 pandemic.

Other non-run-rate expenses for the six months ended September 30, 2021consist primarily of $823excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses, related to the restructuring plan, $2,707of executive transition costs, including severance and other costs related to the departure of the CEO, and $498of incremental costs and penalties primarily due to the cancellation of certain events directly associated with the COVID-19 pandemic.

Other non-run-rate expenses for the six months ended September 30, 2020consist primarily of $1,427excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $939of professional services costs not related to core operations, and $99of 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 September 30,

Six Months Ended September 30,

2021

2020

2021

2020

Net cash provided by operating activities

$

20,166

$

30,360

$

20,479

$

48,032

Additions to capitalized software costs

(6,175

)

(6,471

)

(11,713

)

(12,083

)

Additions to equipment and improvements

(683

)

(148

)

(1,685

)

(764

)

Free cash flow

$

13,308

$

23,741

$

7,081

$

35,185

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.