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NextGen Healthcare Reports Fiscal 2022 Second Quarter Results
October 28, 2021 at 4:05 PM EDT

Raises Fiscal 2022 Financial Guidance

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

Fiscal 2022 Second Quarter Highlights

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

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

NextGen Healthcare updates its fiscal year 2022 financial guidance as follows:

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

Conference Call Information

NextGen Healthcare will host a conference call to discuss its fiscal year 2022 second quarter operating results today at 5:00 p.m. Eastern time. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 877-876-9173 or 785-424-1667 for international callers and referencing participant code NXGNQ222 approximately 15 minutes prior to the call. A recording of the live webcast will be available on investor.nextgen.com after the call. It will be archived for 90 days.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements within the meaning of the federal securities laws, including but not limited to, statements regarding future events including but not limited to the COVID-19 pandemic, developments in the healthcare sector and regulatory framework, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue, net income, and earnings per share). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements and additional risks and uncertainties are set forth in Part I, Item A of our most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, including but not limited to: volatility and uncertainty in the global economy, financial markets and on our customers in light of the continuing COVID-19 pandemic, including the potential (i) slowdown or shutdown of preventive and elective medical procedures, (ii) delay in the contracting for additional products and services by our customers and (iii) delay in the sales cycle for new customers; a determination by the jury that the Company has liability in litigation advanced by a former director and shareholder; the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; uncertainties related to the future impact of U.S. 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 health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company's ability or inability to attract and retain qualified personnel; possible regulation of the Company's software by the U.S. Food and Drug Administration; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; disruptions caused by acquisitions of companies, products, or technologies; the extent to which the COVID-19 pandemic and measures taken in response thereto could adversely affect our financial condition and results of operations; and general economic conditions. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of a fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

USE OF NON-GAAP FINANCIAL MEASURES

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, shareholder disputes and related costs, which include net securities litigation defense, proxy contest, and related costs, share-based compensation, and other non-run-rate expenses from GAAP income before provision for income taxes.

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 expected to be applied to each quarter of fiscal year 2022 is 20.0%. The determination of this rate is based on the consideration of both historic and projected financial results. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

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

About NextGen Healthcare, Inc.

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

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

$

135,609

 

 

$

125,691

 

 

$

267,990

 

 

$

245,213

 

Software, hardware, and other non-recurring

 

13,677

 

 

 

14,311

 

 

 

27,380

 

 

 

25,668

 

Total revenues

 

149,286

 

 

 

140,002

 

 

 

295,370

 

 

 

270,881

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

57,119

 

 

 

52,906

 

 

 

114,279

 

 

 

103,335

 

Software, hardware, and other non-recurring

 

7,610

 

 

 

6,083

 

 

 

15,107

 

 

 

12,124

 

Amortization of capitalized software costs and acquired intangible assets

 

7,969

 

 

 

9,961

 

 

 

16,053

 

 

 

19,860

 

Total cost of revenue

 

72,698

 

 

 

68,950

 

 

 

145,439

 

 

 

135,319

 

Gross profit

 

76,588

 

 

 

71,052

 

 

 

149,931

 

 

 

135,562

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

63,891

 

 

 

41,950

 

 

 

112,377

 

 

 

82,687

 

Research and development costs, net

 

18,518

 

 

 

17,692

 

 

 

37,839

 

 

 

35,914

 

Amortization of acquired intangible assets

 

881

 

 

 

1,112

 

 

 

1,762

 

 

 

2,224

 

Impairment of assets

 

1,195

 

 

 

 

 

 

1,577

 

 

 

 

Restructuring costs

 

 

 

 

 

 

 

539

 

 

 

2,562

 

Total operating expenses

 

84,485

 

 

 

60,754

 

 

 

154,094

 

 

 

123,387

 

Income (loss) from operations

 

(7,897

)

 

 

10,298

 

 

 

(4,163

)

 

 

12,175

 

Interest income

 

17

 

 

 

12

 

 

 

29

 

 

 

18

 

Interest expense

 

(320

)

 

 

(1,135

)

 

 

(637

)

 

 

(2,242

)

Other expense, net

 

(12

)

 

 

(18

)

 

 

(34

)

 

 

(2

)

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

 

(8,212

)

 

 

9,157

 

 

 

(4,805

)

 

 

9,949

 

Provision for (benefit of) income taxes

 

(1,441

)

 

 

(1,298

)

 

 

(882

)

 

 

318

 

 Net income (loss)

$

(6,771

)

 

$

10,455

 

 

$

(3,923

)

 

$

9,631

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.10

)

 

$

0.16

 

 

$

(0.06

)

 

$

0.14

 

Diluted

$

(0.10

)

 

$

0.16

 

 

$

(0.06

)

 

$

0.14

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

67,406

 

 

 

66,688

 

 

 

67,291

 

 

 

66,493

 

Diluted

 

67,406

 

66,689

67,291

66,493

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

September 30, 2021

 

 

March 31, 2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

75,303

 

 

$

73,295

 

Restricted cash and cash equivalents

 

 

6,261

 

 

 

5,280

 

Accounts receivable, net

 

 

71,988

 

 

 

77,541

 

Contract assets

 

 

20,521

 

 

 

19,481

 

Income taxes receivable

 

 

9,066

 

 

 

765

 

Prepaid expenses and other current assets

 

 

27,574

 

 

 

31,282

 

Total current assets

 

 

210,713

 

 

 

207,644

 

Equipment and improvements, net

 

 

12,030

 

 

 

14,539

 

Capitalized software costs, net

 

 

41,570

 

 

 

41,474

 

Operating lease assets

 

 

14,431

 

 

 

18,446

 

Deferred income taxes, net

 

 

19,445

 

 

 

19,474

 

Contract assets, net of current

 

 

1,991

 

 

 

1,976

 

Intangibles, net

 

 

30,502

 

 

 

36,700

 

Goodwill

 

 

267,212

 

 

 

267,212

 

Other assets

 

 

37,628

 

 

 

37,021

 

Total assets

 

$

635,522

 

 

$

644,486

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

12,687

 

 

$

11,378

 

Contract liabilities

 

 

53,506

 

 

 

52,863

 

Accrued compensation and related benefits

 

 

34,053

 

 

 

50,374

 

Income taxes payable

 

 

201

 

 

 

584

 

Operating lease liabilities

 

 

11,290

 

 

 

12,735

 

Other current liabilities

 

 

59,440

 

 

 

52,699

 

Total current liabilities

 

 

171,177

 

 

 

180,633

 

Deferred compensation

 

 

7,275

 

 

 

6,620

 

Operating lease liabilities, net of current

 

 

14,646

 

 

 

18,453

 

Other noncurrent liabilities

 

 

7,148

 

 

 

7,136

 

Total liabilities

 

 

200,246

 

 

 

212,842

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

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

 

 

684

 

 

 

671

 

Additional paid-in capital

 

 

311,793

 

 

 

304,263

 

Accumulated other comprehensive loss

 

 

(1,912

)

 

 

(1,924

)

Retained earnings

 

 

124,711

 

 

 

128,634

 

Total shareholders' equity

 

 

435,276

 

 

 

431,644

 

Total liabilities and shareholders' equity

 

$

635,522

$

644,486

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(6,771

)

 

$

10,455

 

 

$

(3,923

)

 

$

9,631

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of capitalized software costs

 

5,751

 

 

 

5,090

 

 

 

11,617

 

 

 

9,853

 

Amortization of debt issuance costs

 

127

 

 

 

178

 

 

 

254

 

 

 

355

 

Amortization of other intangibles

 

3,099

 

 

 

5,984

 

 

 

6,198

 

 

 

12,232

 

Change in fair value of contingent consideration

 

 

 

 

25

 

 

 

 

 

 

50

 

Deferred income taxes

 

1

 

 

 

(43

)

 

 

29

 

 

 

(27

)

Depreciation

 

1,673

 

 

 

1,941

 

 

 

3,781

 

 

 

3,937

 

Excess tax deficiency from share-based compensation

 

816

 

 

 

74

 

 

 

640

 

 

 

941

 

Impairment of assets

 

1,195

 

 

 

 

 

 

1,577

 

 

 

 

Loss on disposal of equipment and improvements

 

39

 

 

 

 

 

 

77

 

 

 

 

Non-cash operating lease costs

 

1,459

 

 

 

1,738

 

 

 

3,087

 

 

 

3,421

 

Provision for bad debts

 

40

 

 

 

530

 

 

 

679

 

 

 

1,399

 

Share-based compensation

 

5,223

 

 

 

5,437

 

 

 

11,635

 

 

 

10,830

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

1,467

 

 

 

1,219

 

 

 

4,874

 

 

 

3,505

 

Contract assets

 

(136

)

 

 

(1,399

)

 

 

(1,055

)

 

 

(2,481

)

Accounts payable

 

5,442

 

 

 

(2,365

)

 

 

1,108

 

 

 

(3,756

)

Contract liabilities

 

1,225

 

 

 

(2,718

)

 

 

643

 

 

 

(8,344

)

Accrued compensation and related benefits

 

5,643

 

 

 

9,686

 

 

 

(16,321

)

 

 

8,348

 

Income taxes

 

(9,788

)

 

 

(2,718

)

 

 

(9,324

)

 

 

(2,083

)

Deferred compensation

 

(88

)

 

 

152

 

 

 

655

 

 

 

840

 

Operating lease liabilities

 

(2,684

)

 

 

(2,628

)

 

 

(5,360

)

 

 

(5,224

)

Other assets and liabilities

 

6,433

 

 

 

(278

)

 

 

9,608

 

 

 

4,605

 

Net cash provided by operating activities

 

20,166

 

 

 

30,360

 

 

 

20,479

 

 

 

48,032

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to capitalized software costs

 

(6,175

)

 

 

(6,471

)

 

 

(11,713

)

 

 

(12,083

)

Additions to equipment and improvements

 

(683

)

 

 

(148

)

 

 

(1,685

)

 

 

(764

)

Acquisition related working capital adjustment payments

 

 

 

 

(206

)

 

 

 

 

 

(206

)

Net cash used in investing activities

 

(6,858

)

 

 

(6,825

)

 

 

(13,398

)

 

 

(13,053

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

 

 

 

 

 

 

 

 

50,000

 

Repayments on line of credit

 

 

 

 

(115,000

)

 

 

 

 

 

(115,000

)

Proceeds from issuance of shares under employee plans

 

438

 

 

 

372

 

 

 

1,109

 

 

 

798

 

Payments for taxes related to net share settlement of equity awards

 

(2,232

)

 

 

(417

)

 

 

(5,201

)

 

 

(2,251

)

Net cash used in financing activities

 

(1,794

)

 

 

(115,045

)

 

 

(4,092

)

 

 

(66,453

)

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

 

11,514

 

 

 

(91,510

)

 

 

2,989

 

 

 

(31,474

)

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

 

70,050

 

 

 

200,355

 

 

 

78,575

 

 

 

140,319

 

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

$

81,564

$

108,845

$

81,564

$

108,845

 

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 September 30,

 

 

Six Months Ended September 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription services

$

41,139

 

 

$

36,867

 

 

$

79,423

 

 

$

72,227

 

Support and maintenance

 

39,004

 

 

 

38,076

 

 

 

77,490

 

 

 

76,623

 

Managed services

 

29,506

 

 

 

26,218

 

 

 

58,937

 

 

 

48,711

 

Electronic data interchange and data services

 

25,960

 

 

 

24,530

 

 

 

52,140

 

 

 

47,652

 

Total recurring revenues

 

135,609

 

 

 

125,691

 

 

 

267,990

 

 

 

245,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software, hardware, and other non-recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software license and hardware

 

8,068

 

 

 

8,014

 

 

 

15,282

 

 

 

12,754

 

Other non-recurring services

 

5,609

 

 

 

6,297

 

 

 

12,098

 

 

 

12,914

 

Total software, hardware and other non-recurring revenues

 

13,677

 

 

 

14,311

 

 

 

27,380

 

 

 

25,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

149,286

 

 

$

140,002

 

 

$

295,370

 

 

$

270,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring revenues as a percentage of total revenues

 

90.8

%

 

 

89.8

%

 

 

90.7

%

 

 

90.5

%

NEXTGEN HEALTHCARE, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

 

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE

 

 

Three Months Ended September 30,

 

 

Six Months Ended September 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Income (loss) before provision for income taxes - GAAP

$

(8,212

)

 

$

9,157

 

 

$

(4,805

)

 

$

9,949

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs, net

 

 

 

 

142

 

 

 

 

 

 

262

 

Amortization of acquired intangible assets

 

3,100

 

 

 

5,984

 

 

 

6,199

 

 

 

12,232

 

Amortization of deferred debt issuance costs

 

127

 

 

 

178

 

 

 

254

 

 

 

355

 

Impairment of assets

 

1,195

 

 

 

 

 

 

1,577

 

 

 

 

Restructuring costs

 

 

 

 

 

 

 

539

 

 

 

2,562

 

Shareholder disputes and related costs

 

22,134

 

 

 

3,233

 

 

 

26,992

 

 

 

4,259

 

Share-based compensation

 

5,223

 

 

 

5,437

 

 

 

11,635

 

 

 

10,830

 

Other non-run-rate expenses*

 

1,309

 

 

 

1,154

 

 

 

4,028

 

 

 

2,465

 

Total adjustments to GAAP income before provision for income taxes:

 

33,088

 

 

 

16,128

 

 

 

51,224

 

 

 

32,965

 

Income before provision for income taxes - Non-GAAP

 

24,876

 

 

 

25,285

 

 

 

46,419

 

 

 

42,914

 

Provision for income taxes

 

4,975

 

 

 

5,057

 

 

 

9,284

 

 

 

8,583

 

Net income - Non-GAAP

$

19,901

 

 

$

20,228

 

 

$

37,135

 

 

$

34,331

 

Diluted net income per share - Non-GAAP

$

0.29

 

 

$

0.30

 

 

$

0.55

 

 

$

0.52

 

Weighted-average shares outstanding (diluted):

 

67,699

 

 

 

66,689

 

 

 

67,734

 

 

 

66,493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Other non-run-rate expenses for the three months ended September 30, 2021 consist primarily of $353 excess lease-related expense for vacated facilities, lease termination costs, and other costs, $458 of executive transition costs, and $498 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 September 30, 2020 consist primarily of $664 excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $462 of professional services costs not related to core operations, and $28 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 six months ended September 30, 2021 consist primarily of $823 excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses, related to the restructuring plan, $2,707 of executive transition costs, including severance and other costs related to the departure of the CEO, and $498 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 six months ended September 30, 2020 consist primarily of $1,427 excess lease-related expense for vacated facilities and other costs, including retention bonuses, related to the restructuring plan, $939 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF FREE CASH FLOW

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Net cash provided by operating activities

$

20,166

 

 

$

30,360

 

 

$

20,479

 

 

$

48,032

 

Additions to capitalized software costs

 

(6,175

)

 

 

(6,471

)

 

 

(11,713

)

 

 

(12,083

)

Additions to equipment and improvements

 

(683

)

 

 

(148

)

 

 

(1,685

)

 

 

(764

)

Free cash flow

$

13,308

 

 

$

23,741

 

 

$

7,081

 

 

$

35,185

 

 

Media Relations Contact
Tami Stegmaier
(949) 237-6083
tstegmaier@nextgen.com

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

Source: NextGen Healthcare, Inc.