Greenway Reports Third-Quarter 2012 Results
Record Revenue of $32.9 Million Increased 52% YOY
Gross Margin of 55% for Quarter
Operating Income Margin of 7% for Quarter
Adjusted EBITDA Margin of 12% for Quarter
May 10, 2012, Carrollton, Ga. — Greenway Medical Technologies, Inc. (NYSE: GWAY), provider of the integrated electronic health record (EHR), practice management and interoperability solution PrimeSUITE®, today announced its financial results for the three and nine months ended March 31, 2012.
“We are very pleased with our third-quarter results. We believe these results demonstrate the significant momentum in the business, illustrate the leverage in our model and show the tangible results that revenue mix and our margin-improvement initiatives have on gross margins,” said Tee Green, Greenway® president and chief executive officer. “Our strategies for growth and innovation are expected to continue driving sustainable revenue, earnings and cash flow growth for 2012 and beyond.”
•Third-quarter and YTD total revenue was $32.9 million and $87.6 million respectively, representing increases of 52% and 45% over the respective year-ago periods.
•Third-quarter EPS of $0.06 per fully diluted share.
•Adjusted EBITDA was $4.0 million for the third quarter of FY2012. Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net loss below and is not a substitute for the GAAP equivalent.
Revenue for the three months ended March 31, 2012, was $32.9 million, a 52% increase as compared to revenue of $21.6 million for the three months ended March 31, 2011. For the nine months ended March 31, 2012, total revenue was $87.6 million, a 45% increase over revenue of $60.4 million for the year-ago period.
Gross profit for the three months ended March 31, 2012, was $18.0 million, compared to $11.6 million for the three months ended March 31, 2011. Gross profit for the nine months ended March 31, 2012, was $46.3 million, compared to $32.2 million for the year-ago period. Cost of goods sold in third-quarter 2012 included $826,000 increased amortization of acquired technology and software development costs as various projects are now available for market.
Operating income was $2.2 million and $1.3 million for the three and nine months ended March 31, 2012, respectively. This compares to operating losses of ($287,000) and ($548,000) for the comparable periods of the prior year.
Net income for the three months ended March 31, 2012, was $1.4 million, or $0.06 per diluted share. Net income for the quarter reflects an effective tax rate of 41% including the effect of expensing miscellaneous payments to various state jurisdictions applicable to previous years. The Company estimates its effective tax rate for FY2012 will be approximately 40%. Comparison to the year-ago quarter is not particularly meaningful for net income or earnings per share, since there was a reversal of the full valuation allowance previously provided on net deferred tax assets, resulting in a $31.0 million tax benefit for the period.
As of March 31, 2012, the Company had $36.4 million in cash and short-term investments and no outstanding indebtedness.
Adjusted EBITDA for the three months and nine months ended March 31, 2012 was $4.0 million and $6.2 million respectively, as compared to $444,000 and $1.4 million for the comparable periods of the prior year.
Non-GAAP adjusted net income for the three months ended March 31, 2012, was $1.8 million, or $0.08 per diluted share. For the nine months ended March 31, 2012, non-GAAP adjusted net income was $2.3 million or $0.14 per diluted share. Because of the effect of reversing the full valuation allowance on deferred tax assets in March 2011 and the effect of accretion on preferred stock, which is now converted to common, the Company believes non-GAAP adjusted net income for the comparable prior periods of FY11 would not be particularly meaningful to investors.
The GAAP financial measures most directly comparable to each non-GAAP financial measure used, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed financial statements. See the Investors section of Company’s website at www.greenwaymedical.com for earnings press releases containing such non-GAAP reconciliations.
Greenway will host a conference call today, Thursday, May 10, 2012 at 5 p.m. Eastern time to discuss the Company’s earnings and other information. The call can be accessed by dialing (866) 362-4831 or (617) 597-5347 for international calls; the participant code is 18819966. For listen-only mode, participants should go to the Investors section of www.greenwaymedical.com prior to the call to register and download the necessary audio software.
An audio replay will be posted following the call and will be available from approximately 7 p.m. Eastern on May 10 through 11:59 p.m. Eastern on May 17. The replay will be accessible through a link on www.greenwaymedical.com/investors or by calling (888) 286-8010 or internationally (617) 801-6888. Replay code is 84961425.
Greenway Medical Technologies, Inc. (NYSE: GWAY) delivers smarter solutions for smarter healthcare™. PrimeSUITE® — Greenway’s certified and fully integrated electronic health record, practice management and interoperability solution — helps improve care coordination, quality and cost-efficiency as part of a smarter, sustainable healthcare system. Thousands of providers across 30 specialties and sub-specialties use on-premise or cloud-based Greenway® solutions in physician practices, clinics and health systems. To learn more, go to greenwaymedical.com, Twitter, Facebook and YouTube, or email firstname.lastname@example.org.