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Business Wire
23-06-2025
- Business
- Business Wire
Veradigm Provides 2025 Financial & Business Update
CHICAGO--(BUSINESS WIRE)-- Veradigm ® (OTCMKTS: MDRX), a leading provider of healthcare data and technology solutions, is providing an update on commercial activity and estimated financial performance for the first quarter of 2025 compared to the prior year, details about its recent financing, and reaffirmation of its outlook for the 2025 fiscal year. 'The year started on a positive note by closing deals with over $30 million in annual contract value in the first quarter of 2025, a 25 percent increase over the same period in 2024.' said Tom Langan, Interim Chief Executive Officer. 'We remain focused on building upon this momentum throughout the remainder of 2025 while also working toward becoming current in our SEC financial filings, which we expect to occur in 2026.' Management currently estimates the following preliminary estimated unaudited financial results: Revenue on a GAAP basis is between $145 million and $147 million for the quarter ending March 31, 2025. Cash and equivalents of approximately $272 million as of March 31, 2025. Cash and equivalents decreased by approximately $23 million from Cash and equivalents as of December 31, 2024 of $295 million, reflecting approximately $13 million of outflows for prior acquisitions, approximately $6 million of outflows for capital expenditures, and approximately $4 million of net outflows for operating activities, including interest income, working capital, taxes, and $15 million of Transaction and other expenses (1). Debt (2) of approximately $208 million as of March 31, 2025 that consisted solely of the principal amount of the Company's 0.875% Convertible Senior Notes due 2027 (the '2019 convertible notes') and did not change from preliminary estimated Debt (2) as of December 31, 2024. We recently completed a debt financing, strengthening our liquidity. Borrowing amount: The borrowing amount is up to $100 million, $75 million of which was drawn at closing on June 18, 2025. An additional $25 million, currently undrawn, is accessible at Veradigm's option until December 18, 2026. Pricing: The loan is senior secured and will bear interest at a rate of SOFR + 750 basis points, with interest payable in cash or in kind through June 30, 2027 and interest payable in cash thereafter. No warrants or equity derivatives are attached to the borrowing. Term: The loan matures in five years and includes early termination provisions. JPMorgan Chase Bank, N.A., acted as sole lead arranger on the loan financing. For additional details concerning the loan, please refer to the Company's Form 8-K filed with the SEC on June 20, 2025. The Company expects Debt (2) as of June 30, 2025 will be $283 million, consisting of the $75 million in new borrowings described above and $208 million consisting solely of the principal amount of the Company's 2019 convertible notes. If all holders of the 2019 convertible notes execute their repurchase option for cash on July 1, 2025, the required repayment to noteholders would include an additional $20 million, for a total of $228 million payable to convertible noteholders. As of June 10, 2025, the Company had 108.6 million shares of common stock outstanding and 10.9 million unvested restricted stock units outstanding. The Company is working toward becoming current in its SEC filings, which the Company expects to occur during 2026, and plans to subsequently seek to relist its common stock. Financial Outlook Veradigm is affirming the following expectations for fiscal year 2025: Revenue on a GAAP basis is expected to be approximately flat compared to 2024, which the Company continues to estimate to be between $583 million and $588 million. Net cash (3) is expected to remain positive. Transaction and other revenue and expenses relate to certain favorable and unfavorable legal settlements, severance, investigations, internal reviews, restatement-related accounting advisory services and legal services and other charges incurred in connection with activities that are considered not reflective of our core business. Debt with respect to the 2019 convertible notes is calculated as $208 million, consisting solely of the principal amount of the 2019 convertible notes and excluding the repurchase price payable to holders of the 2019 convertible notes upon repurchase pursuant to the First Supplemental Indenture, dated February 5, 2024. If all holders of the Company's 2019 convertible notes were to execute their repurchase options for cash on July 1, 2025, the required repayment to holders of the 2019 convertible notes would include an additional $20 million, for a total of $228 million payable to repurchase the 2019 convertible notes. Calculated as Cash and equivalents less Debt, as defined in note (2) above. Investor Conference Call and Webcast As previously disclosed, Veradigm management plans to host an investor conference call and webcast to discuss the Company's update at 8:00 a.m. Eastern Time on June 24, 2025. To listen to the conference call, participants may log onto the Veradigm investor relations website. Participants also may access the conference call by dialing 877-405-1224 or 201-389-0848 and requesting Access ID # 13754301. A replay of the call will be available for a period of one year on the Veradigm investor relations website. About Veradigm® Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions for the healthcare provider, payer, and biopharma markets. For more information about how Veradigm is fulfilling its mission of Transforming Health, Insightfully, visit or find Veradigm on LinkedIn, Facebook, Twitter, Instagram, and YouTube. © 2025 Veradigm LLC and/or its affiliates. All rights reserved. Cited marks are the property of Veradigm LLC and/or its affiliates. All other product or company names are the property of their respective holders, all rights reserved. Disclaimer and Forward-Looking Statement Information The estimated financial results contained in this press release are preliminary, and final results for the first quarter of 2024, fiscal year 2024 and the first quarter of 2025 may change. These preliminary results are based on our estimates and are subject to completion of our financial closing audit and financial statements. In addition, these preliminary results have not been audited by our independent registered public accounting firm. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the Company's financial guidance for the second quarter of 2025 and fiscal year 2025 and the Company's plans for becoming current in its SEC filings and seeking to relist its shares of common stock. These forward-looking statements are based on the current beliefs and expectations of the Company's management with respect to future events, only speak as of the date that they are made, and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as 'future,' 'anticipates,' 'believes,' 'estimates,' 'expects,' 'intends,' 'plans,' 'predicts,' 'will,' 'would,' 'could,' 'continue,' 'can,' 'may,' 'look forward,' 'aims,' 'hopes,' and 'seeks' and similar terms, although not all forward-looking statements contain such words or expressions. Actual results could differ significantly from those set forth in the forward-looking statements. Important factors that may cause actual results to differ materially from those in the forward-looking statements include, among others: risks relating to the Company's common stock not trading on a national securities exchange and deregistration from Section 12(b) of the Securities Exchange Act of 1934, as amended; a further material delay in the Company's financial reporting or ability to hold an annual meeting of stockholders; an inability of the Company to timely prepare its delinquent financial statements; unanticipated factors or factors that the Company currently believes will not cause delay, including on the Company's remediation efforts and preparation of financial statements or other factors that could cause additional delay or adjustments; the possibility that ongoing remediation work or the audit of the Company's financial statements for the fiscal year ended December 31, 2023 or the fiscal year ended December 31, 2024 may identify additional errors and material weaknesses or other deficiencies in the Company's accounting practices; the likelihood that the control deficiencies identified or that may be identified in the future will result in additional material weaknesses in the Company's internal control over financial reporting; risks relating to the Company's voluntary disclosure to the SEC of certain information relating to the investigation by the Audit Committee of the Company's Board of Directors, the SEC's investigation, and the additional information the Company has continued to provide to the SEC based on discussions with the SEC; risks relating to the putative securities class action lawsuit filed against the Company, the putative stockholder derivative action filed against the Company, commercial litigation relating to the Company's representations regarding its financial statements and any other future litigation or investigation relating to the Company's internal control failures, the completed investigation, and reviews or related matters; changes in the financial condition of the markets that the Company serves; the Company's ability to hire qualified individuals to serve in senior leadership roles on a permanent basis, including a chief executive officer and a chief financial officer; risks associated with the Company's incurrence of additional debt and the terms and conditions of the Company's new financing arrangement; and other factors contained in the 'Risk Factors' section and elsewhere in the Company's filings with the SEC from time to time, including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The Company does not undertake to update any forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes over time, except as required by law.
Yahoo
24-04-2025
- Business
- Yahoo
Veradigm interim CEO to leave company
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Veradigm's interim CEO will leave the company after a little more than a year in the chief executive role, the health IT company said in a securities filing Tuesday. Tom Langan will step down on July 31. The company has begun a search to find a permanent CEO, and Langan declined to participate as a candidate in the process, Veradigm said in the filing. The health IT firm also extended its employment agreement with interim CFO Lee Westerfield through the end of the year. Langan has been a company leader at Veradigm, formerly named Allscripts, since 2018. He also served as the firm's president and chief commercial officer. Langan will receive $1.4 million, his base salary for the year plus a target annual bonus, as well as $406,000 based on performance and reimbursement of attorneys' fees for negotiating the separation agreement, according to the securities filing. A Veradigm spokesperson declined to comment on why Langan is leaving the company, or if there's an estimate as to when the CEO search process could be complete. Langan's departure serves as another leadership shakeup for Veradigm. He started as interim CEO in June last year, about six months after the board asked for and received resignations from the company's previous chief executive and chief financial officers. At that time, the company had been struggling for months to file financial reports due to 'internal control failures,' which eventually led to Veradigm being delisted from Nasdaq in early 2024. After the company was removed from the stock exchange, the firm explored strategic alternatives like a sale or a merger, but Veradigm ended its review early this year without a deal. However, the health IT company has recently made progress on its delayed financial reports. Last month, Veradigm issued its full year report for 2022, as well as restated filings for 2020, 2021 and the first three quarters of 2022. Before the release, Veradigm hadn't reported its annual or quarterly financials to regulators since November 2022. The health IT vendor also released unaudited financial ranges for 2023 and 2024, and guidance for 2025 in March. However, executives said last month Veradigm likely won't be current on its financial reporting until sometime in 2026. Recommended Reading Veradigm releases long-awaited financial results Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Syracuse Orthopedic Specialists Selects Veradigm to Achieve Exceptional Financial Health and Operational Efficiency
Veradigm to provide a comprehensive solution set to optimize revenue cycle and coding processes CHICAGO, April 02, 2025--(BUSINESS WIRE)--Veradigm® (OTCMKTS: MDRX), a leading provider of healthcare data and technology solutions, announced today that Syracuse Orthopedic Specialists has selected elements from the Veradigm solution suite, Veradigm Revenue Cycle Services and Coding Services designed to support growth, improve cash flow and reduce costs. Syracuse Orthopedic Specialists, located near Syracuse, NY, provides total orthopedic care to the surrounding regions, and is currently utilizing Veradigm Revenue Analytics, Veradigm Practice Management and Veradigm Payerpath. Veradigm Revenue Cycle Services provides a robust suite of solutions designed to enhance healthcare revenue cycle management (RCM). This EHR-agnostic healthcare RCM service empowers healthcare providers to lower accounts receivable (AR) days, reduce claim errors, and generate fewer denials. Veradigm Coding Services seamlessly integrates with a practice's electronic health record (EHR) system, identifying deficiencies, optimizing coding and claims workflow. Veradigm works collaboratively with practices to manage complex exceptions, increase first-pass claims, and expedite revenue generation. "Veradigm has been a trusted partner throughout the years, so it really made sense for us to extend our agreement and adopt its turn-key revenue cycle management solution to complement our existing platform," said Mike Humphrey, Chief Executive Officer of Syracuse Orthopedic Specialists. "When we sought a partner to help streamline our business, we knew we could count on Veradigm's expertise to handle billing, reduce staff burden and increase revenue." "Today's healthcare provider practices are facing staff and practice operations challenges that can make navigating the end-to-end revenue cycle more difficult than ever," said Tom Langan, Interim Chief Executive Officer of Veradigm. "Our revenue cycle management solution will streamline workflow and free up time and resources for Syracuse Orthopedic Specialists. We are excited to extend our relationship with the Syracuse Orthopedic Specialist team." About Veradigm® Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions for the healthcare provider, payer, and biopharma markets. For more information about how Veradigm is fulfilling its mission of Transforming Health, Insightfully, visit or find Veradigm on LinkedIn, Facebook, Twitter, Instagram, and YouTube. © 2025 Veradigm LLC and/or its affiliates. All rights reserved. Cited marks are the property of Veradigm LLC and/or its affiliates. All other product or company names are the property of their respective holders, all rights reserved. View source version on Contacts Investors:Jenny Media:Amanda
Yahoo
18-03-2025
- Business
- Yahoo
Veradigm Files Fiscal 2022 Form 10-K and Restated Financial Statements
CHICAGO, March 18, 2025--(BUSINESS WIRE)--Veradigm® (OTCMKTS: MDRX), a leading provider of healthcare data and technology solutions, announced today that it filed its comprehensive Annual Report on Form 10-K for the year ended December 31, 2022, which also contains certain restated financial statements for periods in fiscal year 2022, 2021 and 2020 (the "2022 Form 10-K"), with the Securities and Exchange Commission ("SEC"). "This filing represents an important step toward regaining compliance with our financial reporting obligations," said Tom Langan, Interim Chief Executive Officer of Veradigm. "We remain focused on remediating our material weaknesses and other internal control deficiencies, becoming current in our financial reporting, executing against our growth strategy to deliver end-to-end solutions for our clients, and relisting our common stock. I would like to recognize our Veradigm employees for the dedication and work to earn our customers' business every day." "We are pleased to have filed the 2022 Form 10-K as part of a comprehensive undertaking that involved a detailed and thorough examination of our financial statements, as well as our accounting policies and processes," said Lee Westerfield, Interim Chief Financial Officer of Veradigm. The adjustments to the Company's revenue from continuing operations in the 2022 Form 10-K are consistent with the amounts that were estimated in the Form 12b-25 filed by the Company on March 4, 2025. For further information regarding the circumstances that led to the financial statement restatements and the Company's remediation efforts, please see the sections entitled "Explanatory Note" and Item 9A, "Controls and Procedures", in the 2022 Form 10-K. About Veradigm® Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions for the healthcare provider, payer, and biopharma markets. For more information about how Veradigm is fulfilling its mission of Transforming Health, Insightfully, visit or find Veradigm on LinkedIn, Facebook, Twitter, Instagram, and YouTube. © 2025 Veradigm LLC and/or its affiliates. All rights reserved. Cited marks are the property of Veradigm LLC and/or its affiliates. All other product or company names are the property of their respective holders, all rights reserved. Table 1 Veradigm Inc. Condensed Consolidated Balance Sheets (In millions) (Unaudited) (As Restated) (As Restated) December 31, December 31, December 31, 2022 2021 2020 ASSETS Current assets: Cash and cash equivalents $446.6 $133.7 $472.8 Restricted cash 1.3 1.3 5.5 Accounts receivable, net 119.1 119.7 122.5 Contract assets 56.6 65.2 63.2 Income tax receivable 0.0 0.0 25.4 Prepaid expenses and other current assets 56.0 51.8 47.7 Current assets attributable to discontinued operations 0.0 277.6 349.2 Total current assets $679.6 $649.3 $1,086.3 Fixed assets, net 9.5 17.7 29.2 Software development costs, net 75.1 81.2 81.6 Intangible assets, net 89.3 149.7 166.0 Goodwill 532.6 498.4 498.6 Deferred taxes, net 37.2 0.0 0.0 Contract assets - long-term 0.0 0.0 0.0 Right-of-use assets - operating leases 12.0 18.3 27.1 Other assets 69.4 79.7 65.2 Long-term assets attributable to discontinued operations 0.0 816.8 909.5 Total assets $1,504.7 $2,311.1 $2,863.5 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $30.9 $2.2 $12.8 Accrued expenses 66.8 62.9 68.3 Accrued compensation and benefits 35.9 30.3 41.8 Deferred revenue 90.1 87.9 115.3 Current operating lease liabilities 6.6 6.1 6.6 Current liabilities attributable to discontinued operations 0.0 299.0 697.3 Total current liabilities 230.3 488.4 942.1 Long-term debt 200.4 350.1 167.6 Deferred revenue 0.0 0.2 0.1 Deferred taxes, net 0.0 18.7 18.2 Long-term operating lease liabilities 12.4 16.8 22.9 Other liabilities 44.1 33.8 32.5 Long-term liabilities attributable to discontinued operations 0.0 42.7 66.7 Total liabilities $487.2 $950.7 $1,250.1 Total stockholders' equity $1,017.5 $1,360.4 $1,613.4 Total liabilities and stockholders' equity $1,504.7 $2,311.1 $2,863.5 Table 2 Veradigm Inc. Condensed Consolidated Statements of Operations (In millions, except per share amounts) (Unaudited) Twelve Months Ended December 31, (As Restated) (As Restated) 2022 2021 2020 Revenue: Provider $465.9 $478.4 $463.0 Payer & Life Science 122.1 99.0 93.1 Total Revenue 588.0 577.4 556.1 Cost of revenue: Provider 232.8 244.2 247.8 Payer & Life Science 46.8 50.8 44.1 Total cost of revenue 279.6 295.0 291.9 Gross profit 308.4 282.4 264.2 Selling, general and administrative expenses 169.2 111.8 155.7 Research and development 97.9 84.1 78.6 Asset impairment charges 7.5 0.5 10.2 Amortization of intangible and acquisition-related assets 60.9 9.3 11.9 Income (loss) from operations (27.1 ) 76.7 7.8 Interest income (expense), net (a) (1.7 ) (12.7 ) (33.8 ) Other income (expense) (35.0 ) 93.7 13.3 Income (loss) before income taxes (63.8 ) 157.7 (12.7 ) Income tax (provision) benefit 43.8 (29.9 ) (15.0 ) Income (loss) from continuing operations, net of tax (20.0 ) 127.8 (27.7 ) Income (loss) from discontinued operations (7.1 ) 15.8 (70.9 ) Gain (loss) on sale of discontinued operations (10.3 ) 0.6 1,156.8 Income tax (provision) benefit from discontinued operations (49.0 ) (4.5 ) (362.2 ) Income (loss) from discontinued operations, net of tax (66.4 ) 11.9 723.7 Net Income (loss) ($86.4 ) $139.7 $696.0 Diluted earnings per Common Share: Income (loss) from continuing operations, net of tax ($20.0 ) $127.8 ($27.7 ) Plus: Interest expense, net of tax1 $0.0 $0.0 $0.0 Income (loss) from continuing operations2 (20.0 ) 127.8 (27.7 ) Income (loss) from discontinued operations, net of tax (66.4 ) 11.9 723.7 Net Income (loss)2 ($86.4 ) $139.7 $696.0 Income (loss) from continuing operations per share - basic ($0.18 ) $0.98 ($0.17 ) Income (loss) from discontinued operations per share - basic ($0.59 ) $0.09 $4.54 Income (loss) per share - basic ($0.77 ) $1.07 $4.37 Income (loss) from continuing operations per share - diluted2 ($0.18 ) $0.92 ($0.17 ) Income (loss) from discontinued operations per share - diluted ($0.59 ) $0.09 $4.54 Income (loss) per share - diluted2 ($0.77 ) $1.01 $4.37 Weighted average common shares outstanding: Basic 112.1 130.1 159.3 Diluted 112.1 138.7 159.3 Twelve Months Ended December 31, Restated Restated 2022 2021 2020 (a) Interest income (expense), net Interest expense (4.1 ) (5.4 ) (18.3 ) Interest income 4.7 0.2 0.5 Non-cash charges to interest expense (2.3 ) (7.5 ) (16.0 ) Interest income (expense), net ($1.7 ) ($12.7 ) ($33.8 ) 1Associated with 0.875% Convertible Senior Notes 2Net of tax after the effect of assumed conversions of convertible notes Table 3 Veradigm Inc. Condensed Non-GAAP Financial Information (In millions, except per share amounts and percentages) (Unaudited) Twelve Months Ended December 31, (AsRestated) (AsRestated) 2022 2021 2020 Revenue, GAAP $588.0 $577.4 $556.1 Gross profit, GAAP $308.4 $282.4 $264.2 Depreciation and amortization 37.0 37.5 33.6 Acquisition-related amortization 6.8 7.1 9.9 Stock-based compensation expense 1.3 1.1 1.7 Total non-GAAP gross profit $353.5 $328.1 $309.4 Non-GAAP Gross margin 1 60.1 % 56.8 % 55.6 % Net Income ($86.4 ) $139.7 $696.0 Less: Loss (income) from discontinued operations $7.1 ($15.8 ) $70.9 Loss (gain) on sale of business, net from discontinued operations $10.3 ($0.6 ) ($1,156.8 ) Income tax provision (benefit) from discontinued operations $49.0 $4.5 $362.2 Income (loss) from continuing operations, net of tax, GAAP ($20.0 ) $127.8 ($27.7 ) Plus: Interest (income) expense, net 1.7 12.7 33.8 Other (income) expense 35.0 (93.7 ) (13.3 ) Depreciation and amortization 113.5 65.3 71.2 Income tax (benefit) provision (43.8 ) 29.9 15.0 Stock-based compensation expense 29.6 13.6 13.5 Asset impairment charges 7.5 0.5 10.2 Transaction and other 17.9 12.6 19.6 Adjusted EBITDA $141.4 $168.7 $122.3 Adjusted EBITDA margin 2 24.0 % 29.2 % 22.0 % Net Income ($86.4 ) $139.7 $696.0 Plus: Interest expense, net of tax4 0.0 0.0 0.0 Net Income (loss)3 ($86.4 ) $139.7 $696.0 Loss (income) from discontinued operations 7.1 (15.8 ) 70.9 (Gain) on sale of business, net from discontinued operations 10.3 (0.6 ) (1,156.8 ) Income tax provision (benefit) from discontinued operations 49.0 4.5 362.2 Income (loss) from continuing operations3 ($20.0 ) $127.8 ($27.7 ) Less: Interest expense, net of tax4 0.0 0.0 0.0 Income (loss) from continuing operations, net of tax ($20.0 ) $127.8 ($27.7 ) Acquisition-related amortization 67.7 16.3 21.7 Stock-based compensation expense 29.6 13.6 13.5 Transaction and other 17.9 12.6 19.6 Other non-operating (income) expense 16.0 0.3 16.5 Asset impairment charges 7.5 0.0 10.2 Tax rate alignment (61.8 ) (18.2 ) (1.6 ) Non-GAAP net income $56.9 $152.4 $52.2 GAAP effective tax rate 69 % 19 % -120 % Non-GAAP effective tax rate 24 % 24 % 24 % Weighted shares outstanding - basic 112.1 130.1 159.3 Weighted shares outstanding - diluted 112.1 138.7 159.3 The net effect of convertible notes and note hedges 5.0 (2.8 ) 2.7 Non-GAAP Weighted shares outstanding - diluted 117.1 135.9 162.0 Income (loss) from continuing operations per share - diluted3 ($0.18 ) $0.92 ($0.17 ) Income (loss) from discontinued operations per share - diluted ($0.59 ) $0.09 $4.54 Income (loss) per share - diluted3 ($0.77 ) $1.01 $4.37 Non-GAAP Income (loss) per share - diluted $0.49 $1.12 $0.32 1 Non-GAAP Gross margin is calculated by dividing Non-GAAP Gross profit by revenue. 2 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue. 3 Net of tax after the effect of assumed conversions of convertible notes 4 Associated with 0.875% Convertible Senior Notes Table 4 Veradigm Inc. Supplemental Condensed Non-GAAP Financial Information (In millions, except per share amounts) (unaudited) 2020 2021 2022 (As Restated) (As Restated) (As Restated) (As Restated) (As Restated) Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Provider Revenue $463.0 $113.2 $117.3 $118.7 $129.2 $478.4 $113.4 $114.1 $116.0 $122.4 $465.9 Gross profit, Non-GAAP $254.6 $63.3 $65.7 $64.4 $77.5 $270.9 $64.6 $63.0 $66.6 $73.2 $267.4 Gross margin, Non-GAAP 1 55.0 % 55.9 % 56.0 % 54.3 % 60.0 % 56.6 % 57.0 % 55.2 % 57.4 % 59.8 % 57.4 % Payer & Life Science Revenue $93.1 $21.6 $23.7 $25.7 $28.0 $99.0 $23.5 $34.4 $30.4 $33.8 $122.1 Gross profit, Non-GAAP $54.8 $11.9 $13.6 $14.8 $16.9 $57.2 $14.8 $24.7 $21.5 $25.1 $86.1 Gross margin, Non-GAAP 1 58.9 % 55.1 % 57.4 % 57.6 % 60.4 % 57.8 % 63.0 % 71.8 % 70.7 % 74.3 % 70.5 % Total Veradigm Revenue $556.1 $134.8 $141.0 $144.4 $157.2 $577.4 $136.9 $148.5 $146.4 $156.2 $588.0 Gross profit, Non-GAAP $309.4 $75.2 $79.3 $79.2 $94.4 $328.1 $79.4 $87.7 $88.1 $98.3 $353.5 Gross margin, Non-GAAP 1 55.6 % 55.8 % 56.2 % 54.8 % 60.1 % 56.8 % 58.0 % 59.1 % 60.2 % 62.9 % 60.1 % Adjusted EBITDA $122.3 $32.4 $38.9 $36.8 $60.6 $168.7 $27.7 $37.5 $33.9 $42.3 $141.4 Adjusted EBITDA margin2 22.0 % 24.0 % 27.6 % 25.5 % 38.5 % 29.2 % 20.2 % 25.3 % 23.2 % 27.1 % 24.0 % Net Income, Non-GAAP $52.2 $14.8 $28.8 $27.2 $81.6 $152.4 $10.5 $6.6 $15.7 $24.0 $56.9 Non-GAAP Weighted shares outstanding - diluted 162.0 146.5 142.0 128.6 125.3 135.9 125.1 119.6 113.3 111.1 117.1 Non-GAAP Income (loss) per share - diluted $0.32 $0.10 $0.20 $0.21 $0.65 $1.12 $0.08 $0.06 $0.14 $0.22 $0.49 1 Non-GAAP Gross margin is calculated by dividing Non-GAAP Gross profit by revenue. 2 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue. Table 5 Veradigm Inc. Supplemental Non-GAAP Financial Information Reconciliation - Financial Trend Details (In millions) (unaudited) 2020 2021 2022 (As Restated) (As Restated) (As Restated) (As Restated) (As Restated) Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Provider Revenue $463.0 $113.2 $117.3 $118.7 $129.2 $478.4 $113.4 $114.1 $116.0 $122.4 $465.9 Gross profit, GAAP $215.2 $54.2 $56.4 $55.2 $68.4 $234.2 $55.9 $54.7 $58.3 $64.2 $233.1 Depreciation and amortization 29.8 7.7 7.9 7.8 7.1 30.5 7.2 6.9 6.8 7.5 28.4 Acquisition-related amortization 8.1 1.3 1.3 1.3 1.4 5.3 1.1 1.1 1.1 1.4 4.7 Stock-based compensation expense 1.5 0.1 0.1 0.1 0.6 0.9 0.4 0.3 0.4 0.1 1.2 Gross profit, Non-GAAP $254.6 $63.3 $65.7 $64.4 $77.5 $270.9 $64.6 $63.0 $66.6 $73.2 $267.4 Payer & Life Science Revenue $93.1 $21.6 $23.7 $25.7 $28.0 $99.0 $23.5 $34.4 $30.4 $33.8 $122.1 Gross profit, GAAP $49.0 $9.6 $11.3 $12.4 $14.9 $48.2 $12.1 $21.9 $18.7 $22.6 $75.3 Depreciation and amortization 3.8 1.7 1.7 1.8 1.8 7.0 2.2 2.2 2.2 2.0 8.6 Acquisition-related amortization 1.8 0.5 0.5 0.5 0.3 1.8 0.5 0.6 0.6 0.4 2.1 Stock-based compensation expense 0.2 0.1 0.1 0.1 (0.1 ) 0.2 0.0 0.0 0.0 0.1 0.1 Gross profit, Non-GAAP $54.8 $11.9 $13.6 $14.8 $16.9 $57.2 $14.8 $24.7 $21.5 $25.1 $86.1 Table 6 Veradigm Inc. Supplemental Non-GAAP Financial Information Reconciliation - Financial Trend Details (In millions, except per share amounts) (unaudited) 2020 2021 2022 (As Restated) (As Restated) (As Restated) (As Restated) (As Restated) Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Veradigm Revenue $556.1 $134.8 $141.0 $144.4 $157.2 $577.4 $136.9 $148.5 $146.4 $156.2 $588.0 Gross profit, GAAP $264.2 $63.8 $67.7 $67.6 $83.3 $282.4 $68.0 $76.6 $77.0 $86.8 $308.4 Depreciation and amortization 33.6 9.4 9.6 9.6 8.9 37.5 9.4 9.1 9.0 9.5 37.0 Acquisition-related amortization 9.9 1.8 1.8 1.8 1.7 7.1 1.6 1.7 1.7 1.8 6.8 Stock-based compensation expense 1.7 0.2 0.2 0.2 0.5 1.1 0.4 0.3 0.4 0.2 1.3 Gross profit, Non-GAAP $309.4 $75.2 $79.3 $79.2 $94.4 $328.1 $79.4 $87.7 $88.1 $98.3 $353.5 Net Income (loss) $696.0 $20.3 $31.4 $14.3 $73.7 $139.7 $23.6 ($83.0 ) ($0.4 ) ($26.6 ) ($86.4 ) Interest expense, net of tax2 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 Net Income (loss)1 $696.0 $20.3 $31.4 $14.3 $73.7 $139.7 $24.1 ($83.0 ) ($0.4 ) ($26.6 ) ($86.4 ) Loss (income) from discontinued operations 70.9 (19.0 ) (3.2 ) 6.8 (0.4 ) (15.8 ) 4.3 3.0 0.5 (0.7 ) 7.1 Loss (gain) on sale of business, net from discontinued operations (1,156.8 ) (0.6 ) 0.0 0.0 0.0 (0.6 ) 0.0 10.3 0.0 0.0 10.3 Income tax provision (benefit) from discontinued operations 362.2 5.1 0.2 (2.0 ) 1.2 4.5 (9.8 ) 61.4 (3.0 ) 0.4 49.0 Income (loss) from continuing operations1 ($27.7 ) $5.8 $28.4 $19.1 $74.5 $127.8 $18.6 ($8.3 ) ($2.9 ) ($26.9 ) ($20.0 ) Interest expense, net of tax2 0.0 0.0 0.0 0.0 0.0 0.0 (0.5 ) 0.0 0.0 0.0 0.0 Net Income (loss) from continuing operations, GAAP ($27.7 ) $5.8 $28.4 $19.1 $74.5 $127.8 $18.1 ($8.3 ) ($2.9 ) ($26.9 ) ($20.0 ) Interest (income) expense, net 33.8 2.8 2.9 3.6 3.4 12.7 2.1 1.8 (0.4 ) (1.8 ) 1.7 Other (income) expense (13.3 ) (1.2 ) (18.3 ) (14.0 ) (60.2 ) (93.7 ) (0.1 ) 30.0 3.9 1.2 35.0 Depreciation and amortization 71.2 16.7 16.7 16.5 15.4 65.3 15.7 28.4 34.6 34.8 113.5 Income tax (benefit) provision 15.0 2.9 3.6 5.9 17.5 29.9 (23.7 ) (28.0 ) (10.0 ) 17.9 (43.8 ) Stock-based compensation expense 13.5 3.6 3.5 3.2 3.3 13.6 6.9 10.5 5.7 6.5 29.6 Asset impairment charges 10.2 0.0 0.2 0.4 (0.1 ) 0.5 2.0 0.4 1.2 3.9 7.5 Transaction and other 19.6 1.8 1.9 2.1 6.8 12.6 6.7 2.7 1.8 6.7 17.9 Adjusted EBITDA $122.3 $32.4 $38.9 $36.8 $60.6 $168.7 $27.7 $37.5 $33.9 $42.3 $141.4 Income (loss) from continuing operations, net of tax, as reported ($27.7 ) $5.8 $28.4 $19.1 $74.5 $127.8 $18.1 ($8.3 ) ($2.9 ) ($26.9 ) ($20.0 ) Acquisition-related amortization 21.7 4.1 4.1 4.1 4.0 16.3 3.8 17.0 23.5 23.4 67.7 Stock-based compensation expense 13.5 3.6 3.5 3.2 3.3 13.6 6.9 10.5 5.7 6.5 29.6 Transaction and other 19.6 1.8 1.9 2.1 6.8 12.6 6.7 2.7 1.8 6.7 17.9 Other non-operating (income) expense 16.5 1.3 (3.6 ) 1.3 1.3 0.3 0.0 14.4 1.4 0.2 16.0 (Gain) loss on business transactions 0.0 0.0 0.0 (0.0 ) 0.0 (0.0 ) 0.0 0.0 0.0 (0.0 ) (0.0 ) Asset impairment charges 10.2 0.0 0.0 0.0 0.0 0.0 2.0 0.4 1.2 3.9 7.5 Tax rate alignment (1.6 ) (1.8 ) (5.5 ) (2.6 ) (8.3 ) (18.2 ) (27.0 ) (30.1 ) (15.0 ) 10.2 (61.8 ) Non-GAAP net income $52.2 $14.8 $28.8 $27.2 $81.6 $152.4 $10.5 $6.6 $15.7 $24.0 $56.9 GAAP effective tax rate -120 % 34 % 11 % 24 % 19 % 19 % 425 % 77 % 77 % -201 % 69 % Non-GAAP effective tax rate 24 % 24 % 24 % 24 % 24 % 24 % 24 % 24 % 24 % 24 % 24 % Weighted shares outstanding - basic 159.3 140.2 136.6 123.9 120.1 130.1 115.9 114.3 110.2 108.1 112.1 Weighted shares outstanding - diluted 162.0 149.1 145.3 131.4 127.8 138.7 138.7 118.7 113.3 111.1 116.8 Less the net effect of convertible notes and note hedges 0.0 (2.6 ) (3.3 ) (2.8 ) (2.5 ) (2.8 ) (13.6 ) 0.9 0.0 0.0 0.3 Non-GAAP Weighted shares outstanding - diluted 162.0 146.5 142.0 128.6 125.3 135.9 125.1 119.6 113.3 111.1 117.1 Income (loss) from continuing operations per share - diluted2 ($0.17 ) $0.04 $0.20 $0.15 $0.58 $0.92 $0.13 ($0.07 ) ($0.03 ) ($0.25 ) ($0.18 ) Income (loss) from discontinued operations per share - diluted $4.54 $0.10 $0.02 ($0.04 ) ($0.01 ) $0.09 $0.04 ($0.65 ) $0.02 $0.00 ($0.59 ) Income (loss) per share - diluted2 $4.37 $0.14 $0.22 $0.11 $0.57 $1.01 $0.17 ($0.72 ) ($0.01 ) ($0.25 ) ($0.77 ) Non-GAAP Net Income (loss) per share - diluted $0.32 $0.10 $0.20 $0.21 $0.65 $1.12 $0.08 $0.06 $0.14 $0.22 $0.49 1Net of tax after the effect of assumed conversions of convertible notes 2Associated with 0.875% Convertible Senior Notes Explanation of Non-GAAP Financial Measures Veradigm reports its financial results in accordance with U.S. generally accepted accounting principles, or GAAP. To supplement this information, Veradigm presents non-GAAP gross profit, gross margin, Adjusted EBITDA, Adjusted EBITDA margin, effective income tax rate, net income (loss), diluted weighted shares outstanding and diluted income (loss) per share, which are considered non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. The definitions of non-GAAP financial measures are presented below: Non-GAAP gross profit consists of GAAP gross profit, as reported, and excludes acquisition-related amortization; stock-based compensation expense; and depreciation and amortization. Reconciliations to GAAP gross profit are found in Tables 3, 5, and 6 within this press release. Non-GAAP gross margin is a non-GAAP measure that is calculated by dividing non-GAAP gross profit by revenue. Adjusted EBITDA is a non-GAAP financial measure and consists of GAAP net income/(loss) from continuing operations and adjusts for: interest (income)/expense, net; other (income)/expense; depreciation and amortization; income tax (benefit)/provision; stock-based compensation expense; asset impairment charges; and transaction and other revenue and expenses. Reconciliations to GAAP net income/(loss) are found in Tables 3 and 6 within this press release. Adjusted EBITDA margin is a non-GAAP measure that is calculated by dividing Adjusted EBITDA by revenue. See the reconciliations in Tables 3 and 6 within this press release with respect to Adjusted EBITDA. Non-GAAP effective income tax rate is based on non-GAAP pre-tax earnings and consists of the statutory federal income tax rate, Veradigm effective state income tax rate and adjustments for permanent differences. Non-GAAP net income (loss) consists of GAAP net income/(loss), as reported, less discontinued operations and adds back acquisition-related amortization; stock-based compensation expense; asset impairment charges; transaction and other revenue and expenses; and non-cash charges to interest expense and other. Non-GAAP net income also includes a GAAP to non-GAAP tax rate alignment adjustment. Reconciliations to GAAP net income (loss) are found in Tables 3 and 6 within this press release. Non-GAAP diluted weighted shares outstanding consists of diluted weighted shares outstanding, as reported, less the dilutive impact of the Company's 0.875% convertible notes (the "convertible notes") due to the intent to settle the principal in cash and shares to be delivered at settlement by the convertible note hedge. Non-GAAP diluted income (loss) per share consists of non-GAAP net income, as defined above, divided by non-GAAP diluted weighted shares outstanding, as defined above, during the applicable period. Management believes that non-GAAP gross profit, gross margin, Adjusted EBITDA, Adjusted EBITDA margin, effective income tax rate, net income (loss), diluted weighted shares outstanding and diluted income (loss) per share provide useful supplemental information to management and investors regarding the underlying performance of Veradigm business operations. Acquisition accounting adjustments and transaction and other revenue and expenses recorded in accordance with GAAP can make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP adjustments provided and discussed herein. Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use non-GAAP diluted income (loss) per share and Adjusted EBITDA to measure achievement under Veradigm's stock and cash incentive compensation plans. Note, however, that non-GAAP diluted income (loss) per share and Adjusted EBITDA are performance measures only, and they do not provide any measure of cash flow or liquidity. Non-GAAP financial measures are not in accordance with, or an alternative for, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Veradigm's results of operations as determined in accordance with GAAP. Investors and potential investors are encouraged to review the definitions and reconciliations of non-GAAP financial measures with GAAP financial measures contained within this press release. Acquisition-Related Amortization. Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. Veradigm excludes acquisition-related amortization expense from non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income, Adjusted EBITDA and Adjusted EBITDA margin because it believes (i) the amount of such expenses in any specific period may not directly correlate with the underlying performance of Veradigm's business operations and (ii) such expenses can vary significantly between periods because of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods. Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. Veradigm excludes stock-based compensation expense from non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income (loss) and Adjusted EBITDA because it believes (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of Veradigm business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods. Asset impairment charges. Asset impairment charges, which are excluded from Adjusted EBITDA, Adjusted EBITDA margin and Non-GAAP net income (loss), reflect non-cash charges related to the abandonment of certain leased spaces and write-offs based on management's assessment of the likelihood of near-term recovery of certain investments' value. Depreciation and Amortization. Depreciation and amortization, which are excluded from non-GAAP gross profit, non-GAAP gross margin, Adjusted EBITDA and Adjusted EBITDA margin, are non-cash expenses arising from allocating the cost of fixed assets, intangibles and capitalized software over time. Transaction and Other. Transaction and other revenue and expenses relate to certain favorable and unfavorable legal settlements, severance, investigations, internal reviews, restatement-related accounting and legal advisory services and other charges incurred in connection with activities that are considered not reflective of our core business. Veradigm excludes transaction and other revenue and expenses from non-GAAP net income (loss), Adjusted EBITDA and Adjusted EBITDA margin because it believes (i) the amount of such revenue or expenses in any specific period may not directly correlate to the underlying performance of Veradigm business operations and (ii) such revenue or expenses can vary significantly between periods. Non-Cash Charges to Interest Expense and Other. Non-cash charges to interest expense include the amortization of the discount and debt issuance costs associated with the convertible notes. Other includes certain other income and expense and impairments on long-term investments and gains and losses on business transactions and certain asset disposals. Tax Rate Alignment. Tax rate alignment aligns the applicable period's effective tax rate to the expected annual non-GAAP effective tax rate. View source version on Contacts Investors: Jenny Media: Amanda Sign in to access your portfolio
