Increases Full-year Revenue Guidance, Reaffirms Earnings
REMOTE-FIRST COMPANY/NEW YORK–(BUSINESS WIRE)–NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of innovative, cloud-based healthcare technology solutions, today announced its operating results for the fiscal third quarter ended December 31, 2022.
Financial 2023: Highlights from the Third Quarter
- The total revenue reached $161.9million, a 8% increase over the $149.7 million recorded a year earlier.
- The recurrent revenue for this period was $148.7million, compared with $134.5million a year earlier. This is an 11% increase.
- The non-recurring revenue decreased by 14% to $13.2million from the previous year.
- The annual contract value, excluding renewals and bookings, was $44.8 Million. Six deals were greater than $1.0million.
- Fullly diluted net earnings per share were $0.12 as compared to $0.08 a year earlier.
- The fully diluted earnings per share on a non GAAP-based basis was $0.26, compared to $0.24 in the year prior.
- Convertible senior note of $275.0 Million with concurrent 40 million share purchase.
- Acquired TSI Healthcare – a partner of over 30 years that offers a rich clinical experience and differentiated client service.
“I’m pleased to report strong execution and solid results for the quarter. The team made great progress across multiple fronts, delivering revenue growth and demonstrating a disciplined approach to capital management,” said David Sides, president and chief executive officer of NextGen Healthcare. “We continue to make investments required for long-term profitability and remain confident in our ability to deliver durable growth in fiscal year 2024 and beyond.”
The company’s revised guidance for fiscal 2023, including the TSI acquisition and the convertible note issuance, is now as follows:
- The revenue range is $642million to $650million, which represents an increase over the prior guidance range (630 million to 640 million).
- As per prior guidance, adjusted EBITDA will be between $110 million and $115 million.
- Non-GAAP earnings for shares will be consistent with the prior guidance.
Conference Call Information
NextGen Healthcare is hosting a conference call today, at 5:00 pm EST, to discuss the operating results of its fiscal 2023 3rd quarter. Interessed participants and shareholders can access the live broadcast by calling 800-343-4849 (or 785-424-1699 internationally) and informing participant code NXGNQ323. The call will air approximately 15 minutes prior. Investor.nextgen.com will provide a replay of the live broadcast after the call. The recording will remain archived for 90-days.
A CAUTIONARY NOTICE REGARDING FORWARDLOOKING STATEMENTS
The press release includes forward-looking statements as defined by the Private Securities Litigation Reform Act 1995. These statements include statements regarding the outlook for fiscal year 2023, our operating results, strategic priorities, growth plans, capital expenditures, and other matters. These forward-looking statements are based on the current beliefs, expectations, and assumptions of the Company’s management relating to the future (including, without limitation, statements concerning revenue, net income, and earnings per share). The words “positioned,” “proposed,” “potential,” “project,” “expect,” “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “estimate, “strategy,” “expectations,” “future,” “likely,” “may,” “should,” “will,” variations thereof or similar expressions are intended to identify such forward-looking statements.
Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements, including but not limited to: changes in laws and regulations applicable to our business; changes in market conditions and receptivity to our services and offerings; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; our ability to maintain and expand our business with existing clients or effectively transition clients to newer products; our ability to attract new partners and successfully capture new opportunities; our ability to develop and grow partner relationships; our ability to attract and retain key employees; our ability to anticipate or respond quickly to market changes, execute our strategy and manage growth; the impact of litigation and governmental and regulatory agency investigations; 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; the impact of the COVID-19 pandemic on our operations and demand for our services; impact of breaches or failures of the Company’s information security measures or unauthorized access to a customer’s data; disruptions caused by acquisitions of companies, products, or technologies; and general economic conditions. These and other factors, as well as others, can be found in the SEC filings, which include our latest Annual Report on Form 10K, and subsequent Quarterly Reports on form 10-Q.
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 reflect only the current date. The Company disclaims any obligation to revise forward-looking statements in light of future information or other factors.
NON GAAP FINANCIAL MEASURES USE
The news release includes certain non-GAAP financial measures (Generally Accepted Accounting Principles), which are only provided as additional information. These non-GAAP financial measurements should be considered in combination with comparable GAAP measures. Non-GAAP financial measures do not replace U.S. GAAP and are therefore not compatible with them. The Company provided an reconciliation between non-GAAP financial measurements and the closest comparable financial measure as per Regulation G. NextGen Healthcare, Inc. may not calculate non-GAAP measurements the same way as NextGen Healthcare, Inc., which makes it difficult to compare 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. This non-GAAP financial information should not be taken as an independent entity or to replace or supersede financial information that has been prepared in accordance with GAAP.
Non-GAAP diluted Earnings per Share are calculated by the Company after excluding net acquisition cost, amortization and deferred debt issue costs, gain from disposition of Commercial Dental assets and impairment of assets and associated costs. Insurance is excluded, which includes net securities litigation defense and proxy contest and related costs.
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. Each quarter of fiscal 2023 will see a normalized non GAAP tax rate of 20.0%. This rate was determined by a combination of historical and projected financial performance. As additional information becomes available, the Company can adjust its non GAAP tax rate. This is in addition to any significant events that could materially impact this rate such as mergers and acquisitions, changes in business outlook or changes in tax expectations.
The company calculates its free cash flow by total cash from operating activities, less capital expenditures and cash for equipment and improvements. Net debt is the difference between cash and cash equivalents, less line of credit. Non-GAAP adjusted EBITDA is calculated by subtracting net acquisition costs, amortization and impairment of acquired intangibles, restructuring costs and associated costs, net insurance. This includes net securities litigation defense and proxy contest costs. Then, the Company adds back amortization and capitalized software cost as shown within condensed statements of cash flow. EBITDA margin non-GAAP is the sum of total revenues and adjusted EBITDA. Rule of 40 is the annual growth rate for revenue plus non-GAAP adjusted EBITDA.
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. These adjustments may however be affected by ongoing assumptions or judgments regarding the exclusions in non-GAAP adjusted income and adjusted earnings per share. These adjustments include net acquisition costs and impairment of assets as well as restructuring and shareholder disputes. Other costs such net securities litigation defense and proxy contest and any other costs that are non-run rate expenses may also be important. However, it is not possible to determine the exact amount or significance. Because of the historical variability and future expected volatility, it is difficult to predict or quantify these costs. This makes it impossible to compare non-GAAP guidance with the GAAP equivalents.
NextGen Healthcare, Inc.
NextGen Healthcare, Inc., Nasdaq:NXGN, is a leader in innovative healthcare technology solutions. With award-winning technology that enables high-performing practices and creates healthier communities, we are changing the way ambulatory care is delivered. In our quest to promote whole-person health and provide value-based healthcare, we partner with dental, mental and behavioral providers. The integrated, interoperable and intelligent systems we offer go far beyond EHR and practice management to improve patient care, enhance clinical productivity and financial performance. Our goal is to improve healthcare for everyone. Visit nextgen.com to learn more, or follow us on Facebook. TwitterLinkedIn, YouTube and Instagram.
|
NEXTGEN HEALTHCARE INC. CONDENSED CONSOLIDATED STATEMENTS INCOME (In thousands except for share data (Unaudited) |
|||||||||||||||
|
|
Three months ended 31 December |
|
|
The Nine-Month Ending 31 December |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Repeating |
$ |
148,720 |
|
|
$ |
134,496 |
|
|
$ |
431,982 |
|
|
$ |
402,486 |
|
|
Software, hardware, or other non-recurring items |
|
13,157 |
|
|
|
15,225 |
|
|
|
42,640 |
|
|
|
42,605 |
|
|
Reported total revenues |
|
161,877 |
|
|
|
149,721 |
|
|
|
474,622 |
|
|
|
445,091 |
|
|
Earnings cost: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Repeating |
|
67,047 |
|
|
|
58,033 |
|
|
|
194,330 |
|
|
|
172,312 |
|
|
Software, hardware, or other non-recurring items |
|
11,515 |
|
|
|
7,978 |
|
|
|
32,988 |
|
|
|
23,085 |
|
|
Capitalized software costs are amortized and acquired intangibles assets are amortized |
|
6,787 |
|
|
|
8,193 |
|
|
|
20,665 |
|
|
|
24,246 |
|
|
The total revenue cost |
|
85,349 |
|
|
|
74,204 |
|
|
|
247,983 |
|
|
|
219,643 |
|
|
Gross profit |
|
76,528 |
|
|
|
75,517 |
|
|
|
226,639 |
|
|
|
225,448 |
|
|
Operating costs: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling and general administrative |
|
46,177 |
|
|
|
47,238 |
|
|
|
140,097 |
|
|
|
159,615 |
|
|
Net research and development expenses |
|
19,621 |
|
|
|
19,390 |
|
|
|
62,273 |
|
|
|
57,229 |
|
|
Acquisition of intangible assets can be amortized |
|
919 |
|
|
|
881 |
|
|
|
2,329 |
|
|
|
2,643 |
|
|
Asset impairment |
|
247 |
|
|
|
— |
|
|
|
1,576 |
|
|
|
1,577 |
|
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
321 |
|
|
|
539 |
|
|
Operational expenses total |
|
66,964 |
|
|
|
67,509 |
|
|
|
206,596 |
|
|
|
221,603 |
|
|
Operation-related income |
|
9,564 |
|
|
|
8,008 |
|
|
|
20,043 |
|
|
|
3,845 |
|
|
Inflation income |
|
1,530 |
|
|
|
50 |
|
|
|
1,650 |
|
|
|
79 |
|
|
Interest expense |
|
(2,239 |
) |
|
|
(321 |
) |
|
|
(2,894 |
) |
|
|
(958 |
) |
|
Additional income, net (expenses). |
|
(21 |
) |
|
|
(9 |
) |
|
|
10,266 |
|
|
|
(43 |
) |
|
Before income tax, |
|
8,834 |
|
|
|
7,728 |
|
|
|
29,065 |
|
|
|
2,923 |
|
|
Provision for income tax |
|
1,019 |
|
|
|
2,535 |
|
|
|
6,479 |
|
|
|
1,653 |
|
|
Net income |
$ |
7,815 |
|
|
$ |
5,193 |
|
|
$ |
22,586 |
|
|
$ |
1,270 |
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
$ |
0.12 |
|
|
$ |
0.08 |
|
|
$ |
0.34 |
|
|
$ |
0.02 |
|
|
Do not mix |
$ |
0.12 |
|
|
$ |
0.08 |
|
|
$ |
0.33 |
|
|
$ |
0.02 |
|
|
Outstanding weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
66,561 |
|
|
|
67,958 |
|
|
|
67,317 |
|
|
|
67,514 |
|
|
Do not mix |
|
67,307 |
|
|
|
68,167 |
|
|
|
68,005 |
|
|
|
67,851 |
|
|
NEXTGEN HEALTHCARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In million, except that of share data (Unaudited) |
||||||||
|
|
|
December 31, 2022 |
|
|
March 31, 2022 |
|
||
|
ASSETS |
|
|
|
|
|
|
||
|
Actual assets |
|
|
|
|
|
|
||
|
You can also buy cash and equivalents. |
|
$ |
241,550 |
|
|
$ |
59,829 |
|
|
Restricted cash or cash equivalents |
|
|
7,920 |
|
|
|
6,918 |
|
|
Receivables net |
|
|
79,419 |
|
|
|
76,057 |
|
|
Contract assets |
|
|
19,594 |
|
|
|
25,157 |
|
|
Receivable income taxes |
|
|
6,897 |
|
|
|
6,507 |
|
|
Other current assets and prepaid expenses |
|
|
34,257 |
|
|
|
37,102 |
|
|
Current assets |
|
|
389,637 |
|
|
|
211,570 |
|
|
Equipment and improvement net |
|
|
7,230 |
|
|
|
9,120 |
|
|
Net capitalized software cost |
|
|
52,603 |
|
|
|
43,958 |
|
|
Leasing assets |
|
|
4,982 |
|
|
|
11,316 |
|
|
Net deferred income taxes |
|
|
19,970 |
|
|
|
19,259 |
|
|
Current assets net of contract assets |
|
|
4,280 |
|
|
|
1,910 |
|
|
Net, intangibles |
|
|
31,563 |
|
|
|
24,303 |
|
|
Goodwill |
|
|
321,284 |
|
|
|
267,212 |
|
|
Others assets |
|
|
39,474 |
|
|
|
39,026 |
|
|
Assets total |
|
$ |
871,023 |
|
|
$ |
627,674 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
|
||
|
Receivables |
|
$ |
14,509 |
|
|
$ |
9,125 |
|
|
Contract liabilities |
|
|
62,592 |
|
|
|
61,280 |
|
|
Receipt of compensation and other benefits |
|
|
25,818 |
|
|
|
48,736 |
|
|
Income taxes payable |
|
|
12 |
|
|
|
99 |
|
|
Leasing obligations |
|
|
4,312 |
|
|
|
8,089 |
|
|
Current liabilities |
|
|
46,955 |
|
|
|
53,533 |
|
|
Total current liabilities |
|
|
154,198 |
|
|
|
180,862 |
|
|
Net of current liabilities: Contract liabilities |
|
|
11,117 |
|
|
|
— |
|
|
Retarded compensation |
|
|
7,569 |
|
|
|
7,230 |
|
|
Convertible senior bonds, net, not current |
|
|
266,589 |
|
|
|
— |
|
|
Net of the current, operating lease liabilities |
|
|
4,992 |
|
|
|
11,934 |
|
|
Others noncurrent liabilities |
|
|
8,794 |
|
|
|
4,570 |
|
|
Total liabilities |
|
|
453,259 |
|
|
|
204,596 |
|
|
Contingencies and commitments |
|
|
|
|
|
|
||
|
Shareholders’ equity: |
|
|
|
|
|
|
||
|
Common stock at $0.01 par value. Issued 100,000 shares. 70.888 shares and 69.245 shares at December 31, 20,22 and March 31, 2020, respectively. There were 66.039 shares and 66.775 shares remaining at the end of December 31, 2022. |
|
|
709 |
|
|
|
692 |
|
|
Treasury stock: at cost 4,849 shares and 217 shares at December 31, 20,22 and March 31, 2020, respectively |
|
|
(85,752 |
) |
|
|
(35,874 |
) |
|
Additional capital paid in |
|
|
351,834 |
|
|
|
329,917 |
|
|
Other comprehensive losses accumulated |
|
|
(1,865 |
) |
|
|
(1,909 |
) |
|
Restricted earnings |
|
|
152,838 |
|
|
|
130,252 |
|
|
Total shareholders’ equity |
|
|
417,764 |
|
|
|
423,078 |
|
|
Total liabilities and shareholders’ equity |
$ |
871,023 |
$ |
627,674 |
||||
|
NEXTGEN HEALTHCARE INC. CONDENSED CONSOLIDATED STATEMENTS ABOUT CASH FLOWS (In thousands) (Unaudited) |
|||||||||||||||
|
|
Ends in Three Months 31 December |
|
|
The Nine-Month Ending 31 December |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Cash flow from operations: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income |
$ |
7,815 |
|
|
$ |
5,193 |
|
|
$ |
22,586 |
|
|
$ |
1,270 |
|
|
Corrections to balance net income with net cash received from operating activities |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capitalized software cost amortization |
|
5,678 |
|
|
|
5,975 |
|
|
|
16,403 |
|
|
|
17,592 |
|
|
Amortization costs of debt issuance |
|
199 |
|
|
|
127 |
|
|
|
453 |
|
|
|
381 |
|
|
Other intangibles are amortized |
|
2,026 |
|
|
|
3,100 |
|
|
|
6,590 |
|
|
|
9,298 |
|
|
Fair value change in contingent consideration |
|
(100 |
) |
|
|
7 |
|
|
|
(100 |
) |
|
|
7 |
|
|
Income taxes deferred |
|
463 |
|
|
|
6 |
|
|
|
463 |
|
|
|
35 |
|
|
Depreciation |
|
1,195 |
|
|
|
1,625 |
|
|
|
3,841 |
|
|
|
5,406 |
|
|
Exceeding tax deficiencies (benefits) of share-based compensatory compensation |
|
(244 |
) |
|
|
194 |
|
|
|
(678 |
) |
|
|
834 |
|
|
Commercial Dental Assets: Gain from their disposition |
|
— |
|
|
|
— |
|
|
|
(10,296 |
) |
|
|
— |
|
|
Asset impairment |
|
247 |
|
|
|
— |
|
|
|
1,576 |
|
|
|
1,577 |
|
|
Disposal of equipment or improvements can cause loss |
|
— |
|
|
|
— |
|
|
|
74 |
|
|
|
77 |
|
|
Foreign currency exchange rate losses |
|
(20 |
) |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
Lease costs that do not require cash |
|
510 |
|
|
|
1,368 |
|
|
|
2,192 |
|
|
|
4,455 |
|
|
Provision for bad debts |
|
500 |
|
|
|
463 |
|
|
|
1,100 |
|
|
|
1,142 |
|
|
Part-based payments |
|
9,063 |
|
|
|
7,050 |
|
|
|
26,516 |
|
|
|
18,685 |
|
|
Variations in assets or liabilities net of acquired amounts: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Recoverable accounts |
|
(1,098 |
) |
|
|
1,445 |
|
|
|
(2,625 |
) |
|
|
6,319 |
|
|
Contract assets |
|
7,191 |
|
|
|
(3,731 |
) |
|
|
7,189 |
|
|
|
(4,786 |
) |
|
Receivables |
|
964 |
|
|
|
2,484 |
|
|
|
4,117 |
|
|
|
3,592 |
|
|
Contract liabilities |
|
(6,680 |
) |
|
|
1,373 |
|
|
|
(4,941 |
) |
|
|
2,016 |
|
|
Receipt of compensation and other benefits |
|
(3,169 |
) |
|
|
7,966 |
|
|
|
(23,591 |
) |
|
|
(8,355 |
) |
|
Impôts on income |
|
(3,112 |
) |
|
|
2,110 |
|
|
|
822 |
|
|
|
(7,214 |
) |
|
Retarded compensation |
|
588 |
|
|
|
396 |
|
|
|
339 |
|
|
|
1,051 |
|
|
Leasing obligations |
|
(3,328 |
) |
|
|
(4,702 |
) |
|
|
(7,425 |
) |
|
|
(10,062 |
) |
|
Assets and liabilities |
|
(16,507 |
) |
|
|
(16,292 |
) |
|
|
(8,615 |
) |
|
|
(6,684 |
) |
|
Operative activities provide net cash |
|
2,181 |
|
|
|
16,157 |
|
|
|
35,977 |
|
|
|
36,636 |
|
|
Cash flow from investments: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capitalized software cost increases |
|
(8,490 |
) |
|
|
(6,124 |
) |
|
|
(26,906 |
) |
|
|
(17,837 |
) |
|
Equipment and equipment improvements are added |
|
(632 |
) |
|
|
(352 |
) |
|
|
(2,058 |
) |
|
|
(2,037 |
) |
|
Acquisition payments net of any cash received |
|
(47,451 |
) |
|
|
— |
|
|
|
(47,451 |
) |
|
|
— |
|
|
Commercial Dental Assets – Proceeds |
|
— |
|
|
|
— |
|
|
|
11,253 |
|
|
|
— |
|
|
Net cash can be used to invest in activities |
|
(56,573 |
) |
|
|
(6,476 |
) |
|
|
(65,162 |
) |
|
|
(19,874 |
) |
|
The financing of activities generates cash flows. |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Convertible senior notes yield proceeds |
|
275,000 |
|
|
|
— |
|
|
|
275,000 |
|
|
|
— |
|
|
Procedures from a line of credit |
|
50,000 |
|
|
|
— |
|
|
|
50,000 |
|
|
|
— |
|
|
Repayments from a line of credit |
|
(50,000 |
) |
|
|
— |
|
|
|
(50,000 |
) |
|
|
— |
|
|
Invoice payment for debt issuance fees |
|
(8,483 |
) |
|
|
— |
|
|
|
(8,483 |
) |
|
|
— |
|
|
Purchases – Payment of contingent consideration |
|
— |
|
|
|
(540 |
) |
|
|
— |
|
|
|
(540 |
) |
|
Produits from employee plan shares issuance |
|
2,820 |
|
|
|
(232 |
) |
|
|
5,395 |
|
|
|
877 |
|
|
Purchase of common stock |
|
(40,000 |
) |
|
|
(35,874 |
) |
|
|
(49,878 |
) |
|
|
(35,874 |
) |
|
Taxes related to equity award net settlement payments |
|
(3,853 |
) |
|
|
(249 |
) |
|
|
(9,977 |
) |
|
|
(5,450 |
) |
|
Cash provided (used for) financing activities |
|
225,484 |
|
|
|
(36,895 |
) |
|
|
212,057 |
|
|
|
(40,987 |
) |
|
Exchange rate fluctuations have an impact on cash and cash equivalents as well as restricted cash. |
|
70 |
|
|
|
— |
|
|
|
(149 |
) |
|
|
— |
|
|
Cash equivalents (cash equivalents), and restricted cash will see a net increase or decrease. |
|
171,162 |
|
|
|
(27,214 |
) |
|
|
182,723 |
|
|
|
(24,225 |
) |
|
At the beginning of the period, cash, cash equivalents and restricted cash |
|
78,308 |
|
|
|
81,564 |
|
|
|
66,747 |
|
|
|
78,575 |
|
|
Cash equivalents or restricted cash after the end of the applicable period |
$ |
249,470 |
|
|
$ |
54,350 |
|
|
$ |
249,470 |
|
|
$ |
54,350 |
|
|
NEXTGEN HEALTHCARE INC. SUPPLEMENTAL INFORMATION FINANCIAL (In thousands) |
|||||||||||||||
|
This table shows revenues, broken down by revenue category and occurrence. |
|||||||||||||||
|
|
Three months ended 31 December |
|
|
The Nine-Month Ending 31 December |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Revenues recurring: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Services by subscription |
$ |
45,850 |
|
|
$ |
41,158 |
|
|
$ |
132,025 |
|
|
$ |
120,581 |
|
|
Maintenance and support |
|
37,382 |
|
|
|
38,246 |
|
|
|
114,670 |
|
|
|
115,736 |
|
|
Managed Services |
|
32,963 |
|
|
|
27,521 |
|
|
|
94,663 |
|
|
|
83,636 |
|
|
Data and transactional services |
|
32,525 |
|
|
|
27,571 |
|
|
|
90,624 |
|
|
|
82,533 |
|
|
Total recurring revenues |
|
148,720 |
|
|
|
134,496 |
|
|
|
431,982 |
|
|
|
402,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Software, hardware and other revenue streams that are not recurring: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Software licensing and hardware |
|
5,258 |
|
|
|
8,920 |
|
|
|
19,373 |
|
|
|
24,202 |
|
|
Non-recurring Services |
|
7,899 |
|
|
|
6,305 |
|
|
|
23,267 |
|
|
|
18,403 |
|
|
Total Software, Hardware and Other Non-Recurring Revenues |
|
13,157 |
|
|
|
15,225 |
|
|
|
42,640 |
|
|
|
42,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Reported total revenues |
$ |
161,877 |
|
|
$ |
149,721 |
|
|
$ |
474,622 |
|
|
$ |
445,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Percentage of total revenue for recurring revenues |
|
91.9 |
% |
|
|
89.8 |
% |
|
|
91.0 |
% |
|
|
90.4 |
% |
|
NEXTGEN HEALTHCARE INC. MEASURES FINANCIAL NON GAAP (Except for data per share, in thousands) |
|||||||||||||||
|
CONCILIATION OF NONGAAP DILUTED EARNINGS P/SHARE |
|||||||||||||||
|
|
Three months ended 31 December |
|
|
The Nine-Month Ending 31 December |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Income before provision for income taxes – GAAP |
$ |
8,834 |
|
|
$ |
7,728 |
|
|
$ |
29,065 |
|
|
$ |
2,923 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net acquisition costs |
|
1,288 |
|
|
|
— |
|
|
|
1,513 |
|
|
|
— |
|
|
Acquisition of intangible assets can be amortized |
|
2,026 |
|
|
|
3,099 |
|
|
|
6,590 |
|
|
|
9,298 |
|
|
Costs of amortization for deferred debt issuance |
|
199 |
|
|
|
127 |
|
|
|
453 |
|
|
|
381 |
|
|
Commercial Dental Assets can be sold and resold for a profit |
|
— |
|
|
|
— |
|
|
|
(10,296 |
) |
|
|
— |
|
|
Asset impairment |
|
247 |
|
|
|
— |
|
|
|
1,576 |
|
|
|
1,577 |
|
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
321 |
|
|
|
539 |
|
|
Shareholder disputes and associated costs net of insurance |
|
142 |
|
|
|
2,224 |
|
|
|
487 |
|
|
|
29,216 |
|
|
Part-based payments |
|
9,063 |
|
|
|
7,050 |
|
|
|
26,516 |
|
|
|
18,685 |
|
|
Other non-run-rate expenses* |
|
167 |
|
|
|
351 |
|
|
|
779 |
|
|
|
4,379 |
|
|
Before income taxes, total adjustments of GAAP income |
|
13,132 |
|
|
|
12,851 |
|
|
|
27,939 |
|
|
|
64,075 |
|
|
Income before provision for income taxes – Non-GAAP |
|
21,966 |
|
|
|
20,579 |
|
|
|
57,004 |
|
|
|
66,998 |
|
|
Provision for income tax |
|
4,393 |
|
|
|
4,116 |
|
|
|
11,401 |
|
|
|
13,400 |
|
|
Net income – Non-GAAP |
$ |
17,573 |
|
|
$ |
16,463 |
|
|
$ |
45,603 |
|
|
$ |
53,598 |
|
|
Diluted net income per share – Non-GAAP |
$ |
0.26 |
|
|
$ |
0.24 |
|
|
$ |
0.67 |
|
|
$ |
0.79 |
|
|
Shares outstanding (dilutive): |
|
67,307 |
|
|
|
68,167 |
|
|
|
68,005 |
|
|
|
67,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
* Other non-run-rate expenses for the three months ended December 31, 2022 consist of $167 excess lease-related expense for vacated facilities. The non-run rate expenses of the three-month period ending December 31, 2021 include $312 extra lease-related expense to vacate facilities and other costs, and $39 professional service costs that are not directly related to core operations. Additional expenses that are not run-rate for the nine month ended December 31, 2022 include $629 extra lease-related expense on vacated buildings and $150 in professional services costs unrelated to core operations. The nine-month period ended December 31, 2021 saw additional non-run rate expenses. These included $1,135 extra lease-related expense to vacated buildings, lease termination costs, as well as other costs such retention bonuses. There were $2,707 in executive transition costs. This includes $498 in incremental costs and penalties, primarily because of cancellations of events related to COVID-19. |
|
||||||||||||||
Contacts
Contact Media Relations
Tami Andrade
(949) 237-6083
tandrade@nextgen.com
Contact Investor Relations
James Hammerschmidt
(949) 237-6112
jhammerschmidt@nextgen.com
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