Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) Q1 2016 Earnings Conference Call - Preliminary Transcript

May 05, 2016 • 04:30 pm ET


Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) Q1 2016 Earnings Conference Call - Preliminary Transcript


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Greetings and welcome to Allscripts' Q1 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference is being recorded. Today's conference call will be one hour in duration.

It is now my pleasure to turn the call over to your host Mr. Seth Frank, Vice President, Investor Relations. Thank you, you may begin.

Seth Frank

Thanks, Rob. Good afternoon. Our speakers today are Paul Black, Allscripts' Chief Executive Officer; Rick Poulton, Allscripts' President; and we welcome Melinda Whittington, our Chief Financial Officer. A number of forward-looking statements will be made during the presentation and the Q&A portion of the call. These statements are based on current expectations and involve a number of risks and uncertainties that could cause our actual results to differ materially.

We undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our earnings results and SEC filings for a more detailed descriptions of the risk factors that may affect our results. Also, as management reviews the first quarter details, please reference both our non-GAAP and GAAP financial statements, as well as the non-GAAP tables in our earnings release and supplemental data book that are available on the Investor Relations section of our website.

And now, I'd like to hand the call over to Rick Poulton.

Richard Poulton

Okay. Thanks, Seth, and thank you, everybody for joining us this afternoon. With Melinda joining us, we're going to change things up a little bit. I will cover the business highlights for the first quarter; Melinda will discuss the financials in detail; and then Paul will close by discussing our market positioning, his outlook on the regulatory front, as well as some of our other long-term initiatives of the company.

We're very pleased with the first quarter results and believe that the year has started on a strong footing. Bookings were $252 million, a record for the first quarter of the year and it's the fifth consecutive record bookings quarter for the company. Our bookings growth was 7% year-over-year and in addition, we had nice year-over-year growth across all financial metrics, including revenue, gross margins, EBITDA, net income and free cash flow.

The quarter was solid across all end-user segments including large health systems, community hospitals and physician groups in the U.S., as well as our global business. And I'd like to review a few highlights in each of these four areas. Beginning in health systems, the highlight of the first quarter was the agreement we signed with University Hospitals in Cleveland. UH Cleveland significantly expanded and extended its commitment to Allscripts through 2024 for both patient care and population health management.

UH is installing the full Sunrise platform into five new hospitals and they also added the CareInMotion population health management platform. Sunrise will display several other vendors in this move and we are most proud of this as UH had evaluated all commercial options before making this additional long-term commitment to Allscripts.