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NextGen Healthcare Reports Fiscal 2022 Third Quarter Results
January 25, 2022 at 4:05 PM EST

Raises Fiscal 2022 Financial Guidance

ATLANTA--(BUSINESS WIRE)--Jan. 25, 2022-- NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of ambulatory-focused technology solutions, today announced its operating results for the fiscal third quarter ended December 31, 2021.

Fiscal 2022 Third Quarter Highlights

  • Total revenue for the fiscal 2022 third quarter was $149.7 million compared to $141.8 million for the same period a year ago, or 6 percent growth.
  • Recurring revenue accounted for 90 percent of total revenue, or $134.5 million, growing 5 percent over the year ago period.
  • Subscription services revenue in the fiscal third quarter generated $41.2 million, or 8 percent growth over the prior year period, driven by demand for NGE SaaS and Virtual Visit solutions.
  • Fiscal 2022 third quarter bookings, which reflects annual contract value, was $37.7 million.
  • Fully diluted net income per share in the fiscal 2022 third quarter was $0.08 compared to net income of $0.01 per share the same period a year ago.
  • On a non-GAAP basis, fully diluted earnings per share for the fiscal 2022 third quarter was $0.24 compared to $0.26 for the same period a year ago.
  • In October, the Board approved a $60 million share repurchase program.

“This is an exciting time at NextGen Healthcare. Fiscal third quarter reflects more than record revenue driven by the strength and breadth of our tailored offering. NextGen has a refreshed board of directors with deep executive and diverse healthcare and technology experience. We have attracted top talent at key positions in the executive team to enhance an already strong group. And as a unit, we initiated actions to accelerate performance on our strategic growth objectives,” said David Sides, President and Chief Executive Officer of NextGen Healthcare. “In my first four months on the job, I have prioritized listening to our clients and shareholders and have come away from these discussions, enthused about the overall independent ambulatory market and NextGen’s ability to lead its transformation. I look forward to leveraging our strong foundation to accelerate profitable growth and long-term shareholder value.”

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

  • Increase revenue to between $591 and $595 million, from between $584 and $590 million prior
  • Increase non-GAAP earnings per share range to between $0.96 and $1.00 from between $0.90 and $0.96 prior

Conference Call Information

NextGen Healthcare will host a conference call to discuss its fiscal year 2022 third 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 866-831-8713 or 203-518-9822 for international callers and referencing participant code NXGNQ322 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, share repurchases, 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 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, net of insurance, 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

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

$

134,496

 

 

$

128,243

 

 

$

402,486

 

 

$

373,456

 

Software, hardware, and other non-recurring

 

15,225

 

 

 

13,509

 

 

 

42,605

 

 

 

39,177

 

Total revenues

 

149,721

 

 

 

141,752

 

 

 

445,091

 

 

 

412,633

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

58,033

 

 

 

54,204

 

 

 

172,312

 

 

 

157,539

 

Software, hardware, and other non-recurring

 

7,978

 

 

 

6,800

 

 

 

23,085

 

 

 

18,924

 

Amortization of capitalized software costs and acquired intangible assets

 

8,193

 

 

 

9,320

 

 

 

24,246

 

 

 

29,180

 

Total cost of revenue

 

74,204

 

 

 

70,324

 

 

 

219,643

 

 

 

205,643

 

Gross profit

 

75,517

 

 

 

71,428

 

 

 

225,448

 

 

 

206,990

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

47,238

 

 

 

48,972

 

 

 

159,615

 

 

 

131,659

 

Research and development costs, net

 

19,390

 

 

 

18,197

 

 

 

57,229

 

 

 

54,111

 

Amortization of acquired intangible assets

 

881

 

 

 

1,112

 

 

 

2,643

 

 

 

3,336

 

Impairment of assets

 

 

 

 

2,215

 

 

 

1,577

 

 

 

2,215

 

Restructuring costs

 

 

 

 

 

 

 

539

 

 

 

2,562

 

Total operating expenses

 

67,509

 

 

 

70,496

 

 

 

221,603

 

 

 

193,883

 

Income from operations

 

8,008

 

 

 

932

 

 

 

3,845

 

 

 

13,107

 

Interest income

 

50

 

 

 

9

 

 

 

79

 

 

 

27

 

Interest expense

 

(321

)

 

 

(631

)

 

 

(958

)

 

 

(2,873

)

Other expense, net

 

(9

)

 

 

(15

)

 

 

(43

)

 

 

(17

)

Income before provision for (benefit of) income taxes

 

7,728

 

 

 

295

 

 

 

2,923

 

 

 

10,244

 

Provision for (benefit of) income taxes

 

2,535

 

 

 

(169

)

 

 

1,653

 

 

 

149

 

Net income:

$

5,193

 

 

$

464

 

 

$

1,270

 

 

$

10,095

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.08

 

 

$

0.01

 

 

$

0.02

 

 

$

0.15

 

Diluted

$

0.08

 

 

$

0.01

 

 

$

0.02

 

 

$

0.15

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

67,958

 

 

66,943

 

 

 

67,514

 

 

 

66,644

Diluted

 

68,167

 

 

67,140

 

 

67,851

 

 

66,649

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

December 31, 2021

 

March 31, 2021

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

49,429

 

 

$

73,295

 

Restricted cash and cash equivalents

 

 

4,921

 

 

 

5,280

 

Accounts receivable, net

 

 

70,080

 

 

 

77,541

 

Contract assets

 

 

24,246

 

 

 

19,481

 

Income taxes receivable

 

 

6,966

 

 

 

765

 

Prepaid expenses and other current assets

 

 

30,098

 

 

 

31,282

 

Total current assets

 

 

185,740

 

 

 

207,644

 

Equipment and improvements, net

 

 

10,818

 

 

 

14,539

 

Capitalized software costs, net

 

 

41,719

 

 

 

41,474

 

Operating lease assets

 

 

13,047

 

 

 

18,446

 

Deferred income taxes, net

 

 

19,439

 

 

 

19,474

 

Contract assets, net of current

 

 

1,997

 

 

 

1,976

 

Intangibles, net

 

 

27,402

 

 

 

36,700

 

Goodwill

 

 

267,212

 

 

 

267,212

 

Other assets

 

 

37,960

 

 

 

37,021

 

Total assets

 

$

605,334

 

 

$

644,486

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

15,232

 

 

$

11,378

 

Contract liabilities

 

 

54,879

 

 

 

52,863

 

Accrued compensation and related benefits

 

 

42,019

 

 

 

50,374

 

Income taxes payable

 

 

405

 

 

 

584

 

Operating lease liabilities

 

 

8,437

 

 

 

12,735

 

Other current liabilities

 

 

49,436

 

 

 

52,699

 

Total current liabilities

 

 

170,408

 

 

 

180,633

 

Deferred compensation

 

 

7,671

 

 

 

6,620

 

Operating lease liabilities, net of current

 

 

12,781

 

 

 

18,453

 

Other noncurrent liabilities

 

 

3,331

 

 

 

7,136

 

Total liabilities

 

 

194,191

 

 

 

212,842

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value; authorized 100,000 shares; issued and outstanding 66,865 and 67,069 shares at December 31, 2021 and March 31, 2021, respectively

 

 

690

 

 

 

671

 

Treasury stock, at cost, 2,170 shares at December 31, 2021

 

 

(35,874

)

 

 

 

Additional paid-in capital

 

 

318,356

 

 

 

304,263

 

Accumulated other comprehensive loss

 

 

(1,933

)

 

 

(1,924

)

Retained earnings

 

 

129,904

 

 

 

128,634

 

Total shareholders' equity

 

 

411,143

 

 

 

431,644

 

Total liabilities and shareholders' equity

$

605,334

 

$

644,486

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

5,193

 

 

$

464

 

 

$

1,270

 

 

$

10,095

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of capitalized software costs

 

5,975

 

 

 

4,975

 

 

 

17,592

 

 

 

14,828

 

Amortization of debt issuance costs

 

127

 

 

 

177

 

 

 

381

 

 

 

532

 

Amortization of other intangibles

 

3,100

 

 

 

5,456

 

 

 

9,298

 

 

 

17,688

 

Change in fair value of contingent consideration

 

7

 

 

 

25

 

 

 

7

 

 

 

75

 

Deferred income taxes

 

6

 

 

 

(15

)

 

 

35

 

 

 

(42

)

Depreciation

 

1,625

 

 

 

2,151

 

 

 

5,406

 

 

 

6,088

 

Excess tax deficiency from share-based compensation

 

194

 

 

 

(71

)

 

 

834

 

 

 

870

 

Impairment of assets

 

 

 

 

2,215

 

 

 

1,577

 

 

 

2,215

 

Loss on disposal of equipment and improvements

 

 

 

 

27

 

 

 

77

 

 

 

27

 

Non-cash operating lease costs

 

1,368

 

 

 

1,732

 

 

 

4,455

 

 

 

5,153

 

Provision for bad debts

 

463

 

 

 

645

 

 

 

1,142

 

 

 

2,044

 

Share-based compensation

 

7,050

 

 

 

5,933

 

 

 

18,685

 

 

 

16,763

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

1,445

 

 

 

(2,284

)

 

 

6,319

 

 

 

1,221

 

Contract assets

 

(3,731

)

 

 

(1,577

)

 

 

(4,786

)

 

 

(4,058

)

Accounts payable

 

2,484

 

 

 

961

 

 

 

3,592

 

 

 

(2,795

)

Contract liabilities

 

1,373

 

 

 

213

 

 

 

2,016

 

 

 

(8,131

)

Accrued compensation and related benefits

 

7,966

 

 

 

7,862

 

 

 

(8,355

)

 

 

16,210

 

Income taxes

 

2,110

 

 

 

(1,411

)

 

 

(7,214

)

 

 

(3,494

)

Deferred compensation

 

396

 

 

 

484

 

 

 

1,051

 

 

 

1,324

 

Operating lease liabilities

 

(4,702

)

 

 

(4,819

)

 

 

(10,062

)

 

 

(10,043

)

Other assets and liabilities

 

(16,292

)

 

 

4,803

 

 

 

(6,684

)

 

 

9,408

 

Net cash provided by operating activities

 

16,157

 

 

 

27,946

 

 

 

36,636

 

 

 

75,978

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to capitalized software costs

 

(6,124

)

 

 

(6,831

)

 

 

(17,837

)

 

 

(18,914

)

Additions to equipment and improvements

 

(352

)

 

 

(782

)

 

 

(2,037

)

 

 

(1,546

)

Acquisition related working capital adjustment payments

 

 

 

 

 

 

 

 

 

 

(206

)

Net cash used in investing activities

 

(6,476

)

 

 

(7,613

)

 

 

(19,874

)

 

 

(20,666

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

 

 

 

 

 

 

 

 

50,000

 

Repayments on line of credit

 

 

 

 

(35,000

)

 

 

 

 

 

(150,000

)

Payment of contingent consideration related to acquisitions

 

(540

)

 

 

 

 

 

(540

)

 

 

 

Proceeds from issuance of shares under employee plans

 

(232

)

 

 

1,199

 

 

 

877

 

 

 

1,997

 

Repurchase of common stock

 

(35,874

)

 

 

 

 

 

(35,874

)

 

 

 

Payments for taxes related to net share settlement of equity awards

 

(249

)

 

 

(1,646

)

 

 

(5,450

)

 

 

(3,897

)

Net cash used in financing activities

 

(36,895

)

 

 

(35,447

)

 

 

(40,987

)

 

 

(101,900

)

Net decrease in cash, cash equivalents, and restricted cash

 

(27,214

)

 

 

(15,114

)

 

 

(24,225

)

 

 

(46,588

)

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

 

81,564

 

 

 

108,845

 

 

 

78,575

 

 

 

140,319

 

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

$

54,350

 

$

93,731

 

$

54,350

 

$

93,731

 

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
December 31,

 

Nine Months Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription services

$

41,158

 

 

$

37,958

 

 

$

120,581

 

 

$

110,185

 

Support and maintenance

 

38,246

 

 

 

37,914

 

 

 

115,736

 

 

 

114,537

 

Managed services

 

28,861

 

 

 

27,395

 

 

 

87,798

 

 

 

76,106

 

Electronic data interchange and data services

 

26,231

 

 

 

24,976

 

 

 

78,371

 

 

 

72,628

 

Total recurring revenues

 

134,496

 

 

 

128,243

 

 

 

402,486

 

 

 

373,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software, hardware, and other non-recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software license and hardware

 

8,920

 

 

 

7,908

 

 

 

24,202

 

 

 

20,662

 

Other non-recurring services

 

6,305

 

 

 

5,601

 

 

 

18,403

 

 

 

18,515

 

Total software, hardware and other non-recurring revenues

 

15,225

 

 

 

13,509

 

 

 

42,605

 

 

 

39,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

149,721

 

 

$

141,752

 

 

$

445,091

 

 

$

412,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring revenues as a percentage of total revenues

 

89.8

%

 

90.5

%

 

90.4

%

 

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
December 31,

 

Nine Months Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Income before provision for income taxes - GAAP

$

7,728

 

 

$

295

 

 

$

2,923

 

 

$

10,244

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs, net

 

 

 

 

118

 

 

 

 

 

 

380

 

Amortization of acquired intangible assets

 

3,099

 

 

 

5,456

 

 

 

9,298

 

 

 

17,688

 

Amortization of deferred debt issuance costs

 

127

 

 

 

177

 

 

 

381

 

 

 

532

 

Impairment of assets

 

 

 

 

2,215

 

 

 

1,577

 

 

 

2,215

 

Restructuring costs

 

 

 

 

 

 

 

539

 

 

 

2,562

 

Shareholder disputes and related costs, net of insurance

 

2,224

 

 

 

5,955

 

 

 

29,216

 

 

 

10,214

 

Share-based compensation

 

7,050

 

 

 

5,933

 

 

 

18,685

 

 

 

16,763

 

Other non-run-rate expenses*

 

351

 

 

 

1,669

 

 

 

4,379

 

 

 

4,134

 

Total adjustments to GAAP income before provision for income taxes:

 

12,851

 

 

 

21,523

 

 

 

64,075

 

 

 

54,488

 

Income before provision for income taxes - Non-GAAP

 

20,579

 

 

 

21,818

 

 

 

66,998

 

 

 

64,732

 

Provision for income taxes

 

4,116

 

 

 

4,363

 

 

 

13,400

 

 

 

12,946

 

Net income - Non-GAAP

$

16,463

 

 

$

17,455

 

 

$

53,598

 

 

$

51,786

 

Diluted net income per share - Non-GAAP

$

0.24

 

 

$

0.26

 

 

$

0.79

 

 

$

0.78

 

Weighted-average shares outstanding (diluted):

 

68,167

 

 

 

67,140

 

 

 

67,851

 

 

 

66,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Other non-run-rate expenses for the three months ended December 31, 2021 consist primarily of $312 excess lease-related expense for vacated facilities and other costs and $39 of professional services costs not related to core operations.

 

Other non-run-rate expenses for the three months ended December 31, 2020 consist primarily of $1,204 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 $465 of professional services costs not related to core operations.

 

Other non-run-rate expenses for the nine months ended December 31, 2021 consist primarily of $1,135 excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses, related to the restructuring plan and $2,707 of executive transition costs, including severance and other costs related to the departure of the CEO, $498 of incremental costs and penalties primarily due to the cancellation of certain events directly associated with the COVID-19 pandemic, and $39 of professional services costs not related to core operations.

 

Other non-run-rate expenses for the nine months ended December 31, 2020 consist primarily of $2,631 excess lease-related expense for vacated facilities, lease termination costs, and other costs, including retention bonuses and severance expense, related to the restructuring plan, $1,404 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
December 31,

 

Nine Months Ended
December 31,

 

2021

 

2020

 

2021

 

2020

Net cash provided by operating activities

$

16,157

 

 

$

27,946

 

 

$

36,636

 

 

$

75,978

 

Additions to capitalized software costs

 

(6,124

)

 

 

(6,831

)

 

 

(17,837

)

 

 

(18,914

)

Additions to equipment and improvements

 

(352

)

 

 

(782

)

 

 

(2,037

)

 

 

(1,546

)

Free cash flow

$

9,681

 

 

$

20,333

 

 

$

16,762

 

 

$

55,518

 

 

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.