NextGen Healthcare Reports Fiscal 2021 Fourth Quarter and Full Year Results

5/26/2021

ATLANTA--(BUSINESS WIRE)--May 26, 2021-- NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of ambulatory-focused technology solutions, today announced its operating results for the fiscal fourth quarter and full year 2021 ended March 31, 2021.

Fiscal 2021 Fourth Quarter and Full Year Highlights

  • Total revenue for the fiscal 2021 fourth quarter was $144.2 million compared to $136.4 million for the same period a year ago. Revenue for the fiscal year ended March 31, 2021 was $556.8 million compared to $540.2 million a year ago.
  • Subscription services revenue in the fiscal fourth quarter generated $38.2 million, or 16 percent growth over the prior year period, driven by demand for patient experience-related solutions.
  • Fiscal 2021 fourth quarter bookings, which reflects annual contract value, was $35.1 million, 13 percent higher than the prior year period.
  • Net loss for the fiscal 2021 fourth quarter was ($0.6) million compared to net loss of ($4.2) million for the same period a year ago. Net income for fiscal year 2021 was $9.5 million compared with net income of $7.5 million a year ago.
  • On a GAAP basis, fully diluted net loss per share in the fiscal 2021 fourth quarter was $0.01 compared to a net loss of $0.06 per share the same period a year ago. On a GAAP basis, fully diluted net income per share for fiscal year 2021 was $0.14 compared to $0.11 per share a year ago.
  • On a non-GAAP basis, fully diluted earnings per share for the fiscal 2021 fourth quarter was $0.21 compared to $0.20 for the same period a year ago. On a non-GAAP basis, fully diluted earnings per share for fiscal year 2021 was $0.98 compared to $0.83 reported a year ago.
  • Cash flow from operations for the fiscal 2021 fourth quarter was $22.5 million compared to $21.2 million for the same period a year ago. Free cash flow for the fiscal 2021 fourth quarter was $14.7 million compared to $16.1 million for the same period a year ago. Cash flow from operations for fiscal year 2021 was $98.5 million compared to $85.6 million for the same period a year ago. Free cash flow for fiscal year 2021 was $70.2 million compared to $58.7 million for the same period a year ago.
  • Entered into a $300 million second amended and restated revolving credit agreement facility, that includes a $150 million “accordion” feature, which could accommodate borrowing up to $450 million in the aggregate.

“NextGen Healthcare’s achievements, during this unprecedented year, are outstanding,” said President and CEO Rusty Frantz. “We were decisive and kept focused on employee safety and meeting the needs of our clients in this challenging and transformational time. We leveraged our solid financial position, award winning platform solution and a resilient and well-equipped employee base to deepen our client relationships and gain new ones.”

Frantz continued, “We delivered excellent fiscal Q4 financial results, led by an increasing number of large wins and strong ongoing demand for our full platform offering. This momentum provides a great launch pad for Spring ’21 major platform release. This release brings forward exciting advancements, including our NextGen® Patient Experience Platform and much more as we detailed at our March investor event. In summary, we enter fiscal year 2022 with positive momentum, a major platform launch, and are well positioned to achieve both our corporate growth goals and increasing shareholder value.”

Fiscal Year 2022 Financial Outlook

The Company’s outlook for fiscal year 2022:

  • Revenue between $574 and $584 million, and
  • Non-GAAP earnings per share range between $0.89 and $0.95

Conference Call Information

NextGen Healthcare will host a conference call to discuss its fiscal year 2021 and fourth quarter operating results today at 5:00 p.m. Eastern time. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 866-750-8947 or 720-405-1352 for international callers and referencing participant code 8675815 approximately 15 minutes prior to the call. A recording of the live webcast will be available on investor.nextgen.com after the call. It will be archived for 90 days until August 26, 2021.

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; the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; uncertainties related to the future impact of U.S. tax reform; the impact of governmental and regulatory agency investigations; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; changing economic, political or regulatory influences in the healthcare 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

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

The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each quarter of fiscal year 2021 was 20.0%. The normalized non-GAAP tax rate expected to be applied to each quarter of fiscal year 2022 is 20.0%. The determination of this rate is based on the consideration of both historic and projected financial results. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

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

About NextGen Healthcare, Inc. 

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

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Recurring

$

129,363

 

 

$

124,490

 

 

$

502,819

 

 

$

489,313

 

Software, hardware, and other non-recurring

 

14,825

 

 

 

11,892

 

 

 

54,002

 

 

 

50,926

 

Total revenues

 

144,188

 

 

 

136,382

 

 

 

556,821

 

 

 

540,239

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

54,660

 

 

 

51,992

 

 

 

212,199

 

 

 

205,057

 

Software, hardware, and other non-recurring

 

7,533

 

 

 

7,088

 

 

 

26,457

 

 

 

26,904

 

Amortization of capitalized software costs and acquired intangible assets

 

7,588

 

 

 

9,259

 

 

 

36,768

 

 

 

35,478

 

Total cost of revenue

 

69,781

 

 

 

68,339

 

 

 

275,424

 

 

 

267,439

 

Gross profit

 

74,407

 

 

 

68,043

 

 

 

281,397

 

 

 

272,800

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

48,870

 

 

 

43,159

 

 

 

180,529

 

 

 

165,174

 

Research and development costs, net

 

21,390

 

 

 

21,429

 

 

 

75,501

 

 

 

83,295

 

Amortization of acquired intangible assets

 

1,113

 

 

 

1,449

 

 

 

4,449

 

 

 

4,143

 

Impairment of assets

 

3,324

 

 

 

8,218

 

 

 

5,539

 

 

 

12,571

 

Restructuring costs

 

—

 

 

 

77

 

 

 

2,562

 

 

 

2,505

 

Total operating expenses

 

74,697

 

 

 

74,332

 

 

 

268,580

 

 

 

267,688

 

Income (loss) from operations

 

(290

)

 

 

(6,289

)

 

 

12,817

 

 

 

5,112

 

Interest income

 

11

 

 

 

111

 

 

 

38

 

 

 

256

 

Interest expense

 

(643

)

 

 

(661

)

 

 

(3,516

)

 

 

(1,955

)

Other income (expense), net

 

(47

)

 

 

632

 

 

 

(64

)

 

 

846

 

Income (loss) before benefit of income taxes

 

(969

)

 

 

(6,207

)

 

 

9,275

 

 

 

4,259

 

Benefit of income taxes

 

(389

)

 

 

(1,965

)

 

 

(240

)

 

 

(3,239

)

Net income (loss)

$

(580

)

 

$

(4,242

)

 

$

9,515

 

 

$

7,498

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.01

)

 

$

(0.06

)

 

$

0.14

 

 

$

0.11

 

Diluted

$

(0.01

)

 

$

(0.06

)

 

$

0.14

 

 

$

0.11

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

67,029

 

 

 

65,988

 

 

 

66,739

 

 

 

65,474

 

Diluted

 

67,919

 

 

65,988

 

 

66,885

 

65,612

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

March 31, 2021

 

March 31, 2020

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

73,295

 

 

$

138,012

 

Restricted cash and cash equivalents

 

 

5,280

 

 

 

2,307

 

Accounts receivable, net

 

 

77,541

 

 

 

80,006

 

Contract assets

 

 

19,481

 

 

 

12,529

 

Income taxes receivable

 

 

765

 

 

 

856

 

Prepaid expenses and other current assets

 

 

31,282

 

 

 

26,305

 

Total current assets

 

 

207,644

 

 

 

260,015

 

Equipment and improvements, net

 

 

14,539

 

 

 

19,836

 

Capitalized software costs, net

 

 

41,474

 

 

 

37,004

 

Operating lease assets

 

 

18,446

 

 

 

31,004

 

Deferred income taxes, net

 

 

19,474

 

 

 

10,620

 

Contract assets, net of current

 

 

1,976

 

 

 

3,007

 

Intangibles, net

 

 

36,700

 

 

 

57,809

 

Goodwill

 

 

267,212

 

 

 

267,165

 

Other assets

 

 

37,021

 

 

 

33,656

 

Total assets

 

$

644,486

 

 

$

720,116

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

11,378

 

 

$

10,521

 

Contract liabilities

 

 

52,863

 

 

 

56,786

 

Accrued compensation and related benefits

 

 

50,374

 

 

 

23,792

 

Income taxes payable

 

 

584

 

 

 

148

 

Operating lease liabilities

 

 

12,735

 

 

 

10,619

 

Other current liabilities

 

 

52,699

 

 

 

41,352

 

Total current liabilities

 

 

180,633

 

 

 

143,218

 

Deferred compensation

 

 

6,620

 

 

 

5,300

 

Line of credit

 

 

—

 

 

 

129,000

 

Operating lease liabilities, net of current

 

 

18,453

 

 

 

38,823

 

Other noncurrent liabilities

 

 

7,136

 

 

 

3,281

 

Total liabilities

 

 

212,842

 

 

 

319,622

 

Commitments and contingencies

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

$0.01 par value; authorized 100,000 shares; issued and outstanding 67,069 and 66,134 shares at March 31, 2021 and March 31, 2020, respectively

 

 

671

 

 

 

661

 

Additional paid-in capital

 

 

304,263

 

 

 

282,857

 

Accumulated other comprehensive loss

 

 

(1,924

)

 

 

(2,143

)

Retained earnings

 

 

128,634

 

 

 

119,119

 

Total shareholders' equity

 

 

431,644

 

 

 

400,494

 

Total liabilities and shareholders' equity

 

$

644,486

 

 

$

720,116

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(580

)

 

$

(4,242

)

 

$

9,515

 

 

$

7,498

 

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

 

 

 

 

 

 

 

 

 

 

 

Amortization of capitalized software costs

 

5,280

 

 

 

4,123

 

 

 

20,108

 

 

 

17,085

 

Amortization and write-off of debt issuance costs

 

494

 

 

 

178

 

 

 

1,026

 

 

 

710

 

Amortization of other intangibles

 

3,421

 

 

 

6,585

 

 

 

21,109

 

 

 

22,536

 

Change in fair value of contingent consideration

 

(1,442

)

 

 

(1,375

)

 

 

(1,367

)

 

 

(950

)

Deferred income taxes

 

(8,812

)

 

 

(5,417

)

 

 

(8,854

)

 

 

(5,379

)

Depreciation

 

1,909

 

 

 

1,719

 

 

 

7,997

 

 

 

8,172

 

Excess tax deficiency (benefit) from share-based compensation

 

(72

)

 

 

(7

)

 

 

798

 

 

 

(53

)

Impairment of assets

 

3,324

 

 

 

8,218

 

 

 

5,539

 

 

 

12,571

 

Loss (gain) on disposal of equipment and improvements

 

(15

)

 

 

—

 

 

 

12

 

 

 

41

 

Non-cash operating lease costs

 

1,633

 

 

 

1,854

 

 

 

6,786

 

 

 

8,108

 

Provision for bad debts

 

790

 

 

 

941

 

 

 

2,834

 

 

 

3,367

 

Recovery of inventory obsolescence

 

—

 

 

 

(6

)

 

 

—

 

 

 

—

 

Restructuring costs, net of amounts paid

 

—

 

 

 

(257

)

 

 

—

 

 

 

—

 

Share-based compensation

 

5,947

 

 

 

5,866

 

 

 

22,710

 

 

 

19,694

 

Changes in assets and liabilities, net of amounts acquired:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(1,590

)

 

 

(1,247

)

 

 

(369

)

 

 

4,937

 

Contract assets

 

(1,863

)

 

 

377

 

 

 

(5,921

)

 

 

1,458

 

Accounts payable

 

3,410

 

 

 

1,007

 

 

 

615

 

 

 

3,330

 

Contract liabilities

 

4,208

 

 

 

3,881

 

 

 

(3,923

)

 

 

(133

)

Accrued compensation and related benefits

 

10,372

 

 

 

(1,260

)

 

 

26,582

 

 

 

(2,419

)

Income taxes

 

5,109

 

 

 

4,275

 

 

 

1,615

 

 

 

2,454

 

Deferred compensation

 

(4

)

 

 

(898

)

 

 

1,320

 

 

 

(605

)

Operating lease liabilities

 

(6,693

)

 

 

(2,542

)

 

 

(16,736

)

 

 

(9,684

)

Other assets and liabilities

 

(2,286

)

 

 

(543

)

 

 

7,122

 

 

 

(7,137

)

Net cash provided by operating activities

 

22,540

 

 

 

21,230

 

 

 

98,518

 

 

 

85,601

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Additions to capitalized software costs

 

(5,664

)

 

 

(4,647

)

 

 

(24,578

)

 

 

(19,432

)

Additions to equipment and improvements

 

(2,215

)

 

 

(498

)

 

 

(3,761

)

 

 

(7,449

)

Acquisition related working capital adjustment payments

 

—

 

 

 

—

 

 

 

(206

)

 

 

—

 

Payments for acquisitions, net of cash acquired

 

—

 

 

 

(86

)

 

 

—

 

 

 

(71,691

)

Proceeds from over-funded corporate-owned life insurance policies

 

—

 

 

 

—

 

 

 

—

 

 

 

2,500

 

Net cash used in investing activities

 

(7,879

)

 

 

(5,231

)

 

 

(28,545

)

 

 

(96,072

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

—

 

 

 

100,000

 

 

 

50,000

 

 

 

137,000

 

Repayments on line of credit

 

(29,000

)

 

 

(8,000

)

 

 

(179,000

)

 

 

(19,000

)

Payment of debt issuance costs

 

(1,423

)

 

 

—

 

 

 

(1,423

)

 

 

—

 

Proceeds from issuance of shares under employee plans

 

1,482

 

 

 

333

 

 

 

3,479

 

 

 

2,409

 

Payments for taxes related to net share settlement of equity awards

 

(876

)

 

 

(499

)

 

 

(4,773

)

 

 

(4,141

)

Net cash provided by (used in) financing activities

 

(29,817

)

 

 

91,834

 

 

 

(131,717

)

 

 

116,268

 

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

 

(15,156

)

 

 

107,833

 

 

 

(61,744

)

 

 

105,797

 

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

 

93,731

 

 

 

32,486

 

 

 

140,319

 

 

 

34,522

 

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

$

78,575

 

 

$

140,319

 

 

$

78,575

 

 

$

140,319

 

NEXTGEN HEALTHCARE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands)

 

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

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

2021

 

2020

 

2021

 

2020

Recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

Subscription services

$

38,218

 

 

$

32,884

 

 

$

148,403

 

 

$

127,602

 

Support and maintenance

 

38,419

 

 

 

39,671

 

 

 

152,956

 

 

 

158,619

 

Managed services

 

27,032

 

 

 

26,819

 

 

 

103,138

 

 

 

104,549

 

Electronic data interchange and data services

 

25,694

 

 

 

25,116

 

 

 

98,322

 

 

 

98,543

 

Total recurring revenues

 

129,363

 

 

 

124,490

 

 

 

502,819

 

 

 

489,313

 

 

 

 

 

 

 

 

 

 

 

 

 

Software, hardware, and other non-recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

Software license and hardware

 

8,163

 

 

 

4,707

 

 

 

28,825

 

 

 

27,270

 

Other non-recurring services

 

6,662

 

 

 

7,185

 

 

 

25,177

 

 

 

23,656

 

Total software, hardware and other non-recurring revenues

 

14,825

 

 

 

11,892

 

 

 

54,002

 

 

 

50,926

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

144,188

 

 

$

136,382

 

 

$

556,821

 

 

$

540,239

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring revenues as a percentage of total revenues

 

89.7

%

 

 

91.3

%

 

 

90.3

%

 

 

90.6

%

NEXTGEN HEALTHCARE, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

 

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE

 

 

Three Months Ended March 31,

 

Fiscal Year Ended March 31,

 

2021

 

2020

 

2021

 

2020

Income (loss) before benefit of income taxes - GAAP

$

(969

)

 

$

(6,207

)

 

$

9,275

 

 

$

4,259

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs, net

 

(1,409

)

 

 

(263

)

 

 

(1,029

)

 

 

2,112

 

Amortization of acquired intangible assets

 

3,421

 

 

 

6,585

 

 

 

21,109

 

 

 

22,536

 

Amortization of deferred debt issuance costs

 

494

 

 

 

178

 

 

 

1,026

 

 

 

710

 

Impairment of assets

 

3,324

 

 

 

8,218

 

 

 

5,539

 

 

 

12,571

 

Restructuring costs

 

—

 

 

 

77

 

 

 

2,562

 

 

 

2,505

 

Securities litigation defense costs, net of insurance

 

6,060

 

 

 

1,333

 

 

 

16,274

 

 

 

2,426

 

Share-based compensation

 

5,947

 

 

 

5,866

 

 

 

22,710

 

 

 

19,694

 

Other non-run-rate expenses*

 

620

 

 

 

1,522

 

 

 

4,754

 

 

 

3,226

 

Total adjustments to GAAP income before provision for income taxes:

 

18,457

 

 

 

23,516

 

 

 

72,945

 

 

 

65,780

 

Income before provision for income taxes - Non-GAAP

 

17,488

 

 

 

17,309

 

 

 

82,220

 

 

 

70,039

 

Provision for income taxes

 

3,498

 

 

 

3,808

 

 

 

16,444

 

 

 

15,409

 

Net income - Non-GAAP

$

13,990

 

 

$

13,501

 

 

$

65,776

 

 

$

54,630

 

Diluted net income per share - Non-GAAP

$

0.21

 

 

$

0.20

 

 

$

0.98

 

 

$

0.83

 

Weighted-average shares outstanding (diluted):

 

67,919

 

 

 

65,988

 

 

 

66,885

 

 

 

65,612

 

 

 

 

 

 

 

 

 

 

 

 

 

* Other non-run-rate expenses for the three months ended March 31, 2021 consist primarily of $552 excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses and severance expense, related to the restructuring plan and $68 of professional services costs not related to core operations. Other non-run-rate expenses for the year ended March 31, 2021 consist primarily of $3,183 excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses and severance expense, related to the restructuring plan, $1,472 of professional services costs not related to core operations, and $99 of 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 March 31, 2020 consist primarily of $787 excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $474 of professional services costs not related to core operations, and $261 of 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 year ended March 31, 2020 consist primarily of $2,411 excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $554 of professional services costs not related to core operations, and $261 of 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 March 31,

 

Fiscal Year Ended March 31,

 

2021

 

2020

 

2021

 

2020

Net cash provided by operating activities

$

22,540

 

 

$

21,230

 

 

$

98,518

 

 

$

85,601

 

Additions to capitalized software costs

 

(5,664

)

 

 

(4,647

)

 

 

(24,578

)

 

 

(19,432

)

Additions to equipment and improvements

 

(2,215

)

 

 

(498

)

 

 

(3,761

)

 

 

(7,449

)

Free cash flow

$

14,661

 

 

$

16,085

 

 

$

70,179

 

 

$

58,720

 

 

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

Source: NextGen Healthcare, Inc.