Company Quick10K Filing
Nextgen Healthcare
Price16.27 EPS0
Shares66 P/E66
MCap1,067 P/FCF18
Net Debt-50 EBIT21
TEV1,016 TEV/EBIT47
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-K 2020-03-31 Filed 2020-06-01
10-Q 2019-12-31 Filed 2020-01-24
10-Q 2019-09-30 Filed 2019-10-24
10-Q 2019-06-30 Filed 2019-07-25
10-K 2019-03-31 Filed 2019-05-29
10-Q 2018-12-31 Filed 2019-01-24
10-Q 2018-09-30 Filed 2018-10-31
10-Q 2018-06-30 Filed 2018-08-01
10-K 2018-03-31 Filed 2018-05-25
10-Q 2017-12-31 Filed 2018-01-26
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-08-01
10-K 2017-03-31 Filed 2017-05-19
10-Q 2016-12-31 Filed 2017-01-26
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-07-29
10-K 2016-03-31 Filed 2016-05-25
10-Q 2015-12-31 Filed 2016-01-29
10-Q 2015-09-30 Filed 2015-10-23
10-Q 2015-06-30 Filed 2015-07-23
10-K 2015-03-31 Filed 2015-05-26
10-Q 2014-12-31 Filed 2015-01-22
10-Q 2014-09-30 Filed 2014-10-28
10-Q 2014-06-30 Filed 2014-07-28
10-K 2014-03-31 Filed 2014-05-29
10-Q 2013-12-31 Filed 2014-01-28
10-Q 2013-09-30 Filed 2013-10-31
10-Q 2013-06-30 Filed 2013-07-31
10-K 2013-03-31 Filed 2013-05-30
10-Q 2012-12-31 Filed 2013-02-06
10-Q 2012-09-30 Filed 2012-11-05
10-Q 2012-06-30 Filed 2012-08-02
10-K 2012-03-31 Filed 2012-05-25
10-Q 2011-12-31 Filed 2012-02-03
10-Q 2011-09-30 Filed 2011-11-04
10-Q 2011-06-30 Filed 2011-08-05
10-K 2011-03-31 Filed 2011-05-27
10-Q 2010-12-31 Filed 2011-02-02
10-Q 2010-09-30 Filed 2010-11-04
10-Q 2010-06-30 Filed 2010-08-03
10-K 2010-03-31 Filed 2010-06-01
10-Q 2009-12-31 Filed 2010-02-02
8-K 2020-08-18 Shareholder Vote, Exhibits
8-K 2020-07-31
8-K 2020-07-30 Earnings, Exhibits
8-K 2020-05-29
8-K 2020-05-19
8-K 2020-05-04
8-K 2020-01-27
8-K 2020-01-23
8-K 2019-12-06
8-K 2019-11-12
8-K 2019-10-23
8-K 2019-08-15
8-K 2019-07-24
8-K 2019-05-22
8-K 2019-01-21
8-K 2018-10-30
8-K 2018-10-29
8-K 2018-09-12
8-K 2018-09-06
8-K 2018-08-14
8-K 2018-07-31
8-K 2018-05-23
8-K 2018-03-29
8-K 2018-01-25

NXGN 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 nxgn-ex311_6.htm
EX-31.2 nxgn-ex312_8.htm
EX-32.1 nxgn-ex321_7.htm

Nextgen Healthcare Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
0.60.50.40.20.10.02012201420172020
Assets, Equity
0.20.10.10.0-0.0-0.12012201420172020
Rev, G Profit, Net Income
0.10.0-0.0-0.1-0.1-0.22012201420172020
Ops, Inv, Fin

nxgn-10q_20200630.htm
0000708818 false Q1 --03-31 Large Accelerated Filer true true true true P4Y P3Y P4Y8M12D P2Y10M24D P4Y6M P4Y6M P4Y2M12D 0000708818 2020-04-01 2020-06-30 xbrli:shares 0000708818 2020-07-28 iso4217:USD 0000708818 2020-06-30 0000708818 2020-03-31 iso4217:USD xbrli:shares 0000708818 nxgn:RecurringRevenueMember 2020-04-01 2020-06-30 0000708818 nxgn:RecurringRevenueMember 2019-04-01 2019-06-30 0000708818 nxgn:SoftwareHardwareAndOtherNonRecurringMember 2020-04-01 2020-06-30 0000708818 nxgn:SoftwareHardwareAndOtherNonRecurringMember 2019-04-01 2019-06-30 0000708818 2019-04-01 2019-06-30 0000708818 us-gaap:CommonStockMember 2020-03-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000708818 us-gaap:RetainedEarningsMember 2020-03-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000708818 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000708818 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000708818 us-gaap:CommonStockMember 2020-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000708818 us-gaap:RetainedEarningsMember 2020-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000708818 us-gaap:CommonStockMember 2019-03-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000708818 us-gaap:RetainedEarningsMember 2019-03-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000708818 2019-03-31 0000708818 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000708818 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000708818 us-gaap:CommonStockMember 2019-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000708818 us-gaap:RetainedEarningsMember 2019-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000708818 2019-06-30 0000708818 us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0000708818 us-gaap:CostOfSalesMember 2019-04-01 2019-06-30 0000708818 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0000708818 us-gaap:ResearchAndDevelopmentExpenseMember 2019-04-01 2019-06-30 0000708818 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0000708818 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-04-01 2019-06-30 0000708818 us-gaap:AccountingStandardsUpdate201815Member 2020-06-30 0000708818 us-gaap:AccountingStandardsUpdate201813Member 2020-06-30 0000708818 us-gaap:AccountingStandardsUpdate201704Member 2020-06-30 0000708818 us-gaap:AccountingStandardsUpdate201613Member 2020-06-30 0000708818 nxgn:SubscriptionServicesMember 2020-04-01 2020-06-30 0000708818 nxgn:SubscriptionServicesMember 2019-04-01 2019-06-30 0000708818 nxgn:SupportAndMaintenanceMember 2020-04-01 2020-06-30 0000708818 nxgn:SupportAndMaintenanceMember 2019-04-01 2019-06-30 0000708818 nxgn:ManagedServicesMember 2020-04-01 2020-06-30 0000708818 nxgn:ManagedServicesMember 2019-04-01 2019-06-30 0000708818 nxgn:ElectronicDataInterchangeAndDataServicesMember 2020-04-01 2020-06-30 0000708818 nxgn:ElectronicDataInterchangeAndDataServicesMember 2019-04-01 2019-06-30 0000708818 nxgn:SoftwareLicenseAndHardwareMember 2020-04-01 2020-06-30 0000708818 nxgn:SoftwareLicenseAndHardwareMember 2019-04-01 2019-06-30 0000708818 nxgn:OtherNonRecurringServicesMember 2020-04-01 2020-06-30 0000708818 nxgn:OtherNonRecurringServicesMember 2019-04-01 2019-06-30 xbrli:pure 0000708818 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-04-01 2020-06-30 0000708818 us-gaap:OtherNoncurrentAssetsMember 2020-04-01 2020-06-30 0000708818 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-06-30 0000708818 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-06-30 0000708818 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-06-30 0000708818 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-06-30 0000708818 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000708818 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000708818 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000708818 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000708818 nxgn:TopazInformationSystemsLimitedLiabilityCompanyMember us-gaap:OtherNoncurrentLiabilitiesMember 2020-04-01 2020-06-30 0000708818 srt:MinimumMember 2020-04-01 2020-06-30 0000708818 srt:MaximumMember 2020-04-01 2020-06-30 0000708818 nxgn:TopazInformationLLCMember 2020-04-01 2020-06-30 0000708818 nxgn:MedfusionIncorporationMember 2020-04-01 2020-06-30 0000708818 nxgn:OTTOHealthMember 2020-04-01 2020-06-30 0000708818 nxgn:TopazInformationLLCMember 2019-10-04 2019-10-04 0000708818 nxgn:MedfusionIncorporationMember 2019-12-06 2019-12-06 0000708818 nxgn:OTTOHealthMember 2019-12-17 2019-12-17 0000708818 nxgn:TopazInformationLLCMember 2019-10-04 0000708818 nxgn:MedfusionIncorporationMember 2019-12-06 0000708818 nxgn:OTTOHealthMember 2019-12-17 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember nxgn:TopazInformationLLCMember 2019-10-04 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember nxgn:MedfusionIncorporationMember 2019-12-06 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember nxgn:OTTOHealthMember 2019-12-17 0000708818 us-gaap:CustomerRelationshipsMember nxgn:MedfusionIncorporationMember 2019-12-06 0000708818 us-gaap:TradeNamesMember nxgn:MedfusionIncorporationMember 2019-12-06 0000708818 nxgn:TopazInformationLLCMember 2020-06-30 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember nxgn:TopazInformationLLCMember 2019-10-04 2019-10-04 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember nxgn:MedfusionIncorporationMember 2019-12-06 2019-12-06 0000708818 us-gaap:CustomerRelationshipsMember nxgn:MedfusionIncorporationMember 2019-12-06 2019-12-06 0000708818 us-gaap:TradeNamesMember nxgn:MedfusionIncorporationMember 2019-12-06 2019-12-06 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember nxgn:OTTOHealthMember 2019-12-17 2019-12-17 nxgn:segment 0000708818 us-gaap:CustomerRelationshipsMember 2020-06-30 0000708818 us-gaap:TradeNamesMember 2020-06-30 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember 2020-06-30 0000708818 us-gaap:CustomerRelationshipsMember 2020-03-31 0000708818 us-gaap:TradeNamesMember 2020-03-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember 2020-03-31 0000708818 nxgn:CustomerRelationshipsAndTradeNamesMember us-gaap:OperatingExpenseMember 2020-04-01 2020-06-30 0000708818 nxgn:CustomerRelationshipsAndTradeNamesMember us-gaap:OperatingExpenseMember 2019-04-01 2019-06-30 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:CostOfSalesMember 2019-04-01 2019-06-30 0000708818 us-gaap:OperatingExpenseMember 2020-06-30 0000708818 us-gaap:CostOfSalesMember 2020-06-30 0000708818 nxgn:CapitalizedSoftwareCostsMember 2020-06-30 0000708818 us-gaap:RevolvingCreditFacilityMember 2018-03-29 0000708818 us-gaap:RevolvingCreditFacilityMember 2016-01-04 0000708818 us-gaap:RevolvingCreditFacilityMember 2020-06-30 0000708818 us-gaap:RevolvingCreditFacilityMember 2018-03-28 2018-03-29 0000708818 us-gaap:RevolvingCreditFacilityMember 2016-01-03 2016-01-04 0000708818 us-gaap:LetterOfCreditMember 2016-01-04 0000708818 nxgn:SwingLineLoansMember 2016-01-04 0000708818 us-gaap:RevolvingCreditFacilityMember 2020-04-01 2020-06-30 0000708818 us-gaap:ComputerEquipmentMember 2020-06-30 0000708818 us-gaap:ComputerEquipmentMember 2020-03-31 0000708818 us-gaap:SoftwareDevelopmentMember 2020-06-30 0000708818 us-gaap:SoftwareDevelopmentMember 2020-03-31 0000708818 us-gaap:FurnitureAndFixturesMember 2020-06-30 0000708818 us-gaap:FurnitureAndFixturesMember 2020-03-31 0000708818 us-gaap:LeaseholdImprovementsMember 2020-06-30 0000708818 us-gaap:LeaseholdImprovementsMember 2020-03-31 0000708818 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0000708818 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0000708818 nxgn:TwoThousandFiveEmployeeStockOptionAndIncentivePlanMember 2005-10-31 0000708818 nxgn:TwoThousandFiveEmployeeStockOptionAndIncentivePlanMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0000708818 nxgn:TwoThousandFiveEmployeeStockOptionAndIncentivePlanMember 2020-06-30 0000708818 nxgn:TwoThousandFifteenPlanMember 2015-08-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2017-08-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2019-08-31 0000708818 us-gaap:EmployeeStockOptionMember nxgn:TwoThousandFifteenPlanMember 2020-04-01 2020-06-30 0000708818 us-gaap:EmployeeStockOptionMember 2020-06-30 0000708818 us-gaap:RestrictedStockUnitsRSUMember 2020-06-30 0000708818 us-gaap:PerformanceSharesMember nxgn:TwoThousandFifteenPlanMember 2020-06-30 0000708818 nxgn:TwoThousandFifteenPlanMember 2020-06-30 0000708818 2019-04-01 2020-03-31 0000708818 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0000708818 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0000708818 us-gaap:RestrictedStockMember 2020-03-31 0000708818 us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0000708818 us-gaap:RestrictedStockMember 2020-06-30 0000708818 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0000708818 srt:MinimumMember us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0000708818 us-gaap:RestrictedStockMember srt:MaximumMember 2020-04-01 2020-06-30 0000708818 nxgn:PerformanceStockAwardsMember nxgn:AwardsGrantedOnDecemberTwoThousandSixteenMember 2016-12-29 2016-12-29 0000708818 nxgn:PerformanceStockAwardsMember nxgn:AwardsGrantedOnDecemberTwoThousandSixteenMember 2020-04-01 2020-06-30 0000708818 nxgn:PerformanceStockAwardsMember nxgn:AwardsGrantedOnDecemberTwoThousandSixteenMember 2019-04-01 2019-06-30 0000708818 nxgn:PerformanceStockAwardsMember nxgn:TwoThousandFifteenPlanMember nxgn:AwardsGrantedOnDecemberTwoThousandSixteenMember 2020-06-30 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2018-10-23 2018-10-23 0000708818 2018-10-23 2018-10-23 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2020-04-01 2020-06-30 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2019-04-01 2019-06-30 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2019-12-26 2020-01-27 0000708818 2019-12-26 2020-01-27 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2020-04-01 2020-06-30 0000708818 nxgn:EmployeeSharePurchasePlanMember 2014-08-11 0000708818 nxgn:EmployeeSharePurchasePlanMember 2020-06-30 0000708818 nxgn:EmployeeSharePurchasePlanMember 2014-08-10 2014-08-11 0000708818 nxgn:EmployeeSharePurchasePlanMember 2020-04-01 2020-06-30 0000708818 nxgn:EmployeeSharePurchasePlanMember 2019-04-01 2019-06-30 0000708818 nxgn:COVID19PandemicMember 2020-05-31 2020-05-31 0000708818 nxgn:LeaseRightOfUseAssetsAndPropertyPlantAndEquipmentMember 2019-04-01 2019-06-30 0000708818 us-gaap:SubsequentEventMember 2020-07-01 2020-07-30 0000708818 us-gaap:SubsequentEventMember 2020-07-30

 

UNITED STATES

SECURITIES and EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2020

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 001-12537

NEXTGEN HEALTHCARE, INC.

(Exact name of registrant as specified in its charter)

 

California

(State or other jurisdiction of incorporation or organization)

95-2888568

(IRS Employer Identification No.)

 

 

18111 Von Karman Avenue, Suite 800, Irvine, California

(Address of principal executive offices)

92612

(Zip Code)

 

(949) 255-2600

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 Par Value

NXGN

NASDAQ Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes    No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Small reporting company

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No

The number of outstanding shares of the Registrant’s common stock as of July 28, 2020 was 66,669,360 shares.

 

 

 


 

NEXTGEN HEALTHCARE, INC.

TABLE OF CONTENTS

FORM 10-Q

FOR THE THREE MONTHS ENDED JUNE 30, 2020

 

 

 

Item

 

Page

 

 

PART I.  FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements.

 

3

 

 

Unaudited Condensed Consolidated Balance Sheets as of June 30, 2020 and March 31, 2020

 

3

 

 

Unaudited Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) for the three months ended June 31, 2020 and 2019

 

4

 

 

Unaudited Statements of Condensed Consolidated Stockholders’ Equity for the three months ended June 30, 2020 and 2019

 

5

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2020 and 2019

 

6

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

8

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

25

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk.

 

36

Item 4.

 

Controls and Procedures.

 

36

 

 

PART II.  OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings.

 

37

Item 1A.

 

Risk Factors.

 

38

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds.

 

38

Item 3.

 

Defaults Upon Senior Securities.

 

38

Item 4.

 

Mine Safety Disclosure.

 

38

Item 5.

 

Other Information.

 

38

Item 6.

 

Exhibits.

 

39

 

 

Signatures

 

40

 

2


 

PART I.  FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

June 30, 2020

 

 

March 31, 2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

192,323

 

 

$

138,012

 

Restricted cash and cash equivalents

 

 

8,032

 

 

 

2,307

 

Accounts receivable, net

 

 

76,851

 

 

 

80,006

 

Contract assets

 

 

13,740

 

 

 

12,529

 

Income taxes receivable

 

 

579

 

 

 

856

 

Prepaid expenses and other current assets

 

 

25,899

 

 

 

26,305

 

Total current assets

 

 

317,424

 

 

 

260,015

 

Equipment and improvements, net

 

 

18,525

 

 

 

19,836

 

Capitalized software costs, net

 

 

37,853

 

 

 

37,004

 

Operating lease assets

 

 

29,280

 

 

 

31,004

 

Deferred income taxes, net

 

 

10,604

 

 

 

10,620

 

Contract assets, net of current

 

 

2,878

 

 

 

3,007

 

Intangibles, net

 

 

51,561

 

 

 

57,809

 

Goodwill

 

 

267,165

 

 

 

267,165

 

Other assets

 

 

34,516

 

 

 

33,656

 

Total assets

 

$

769,806

 

 

$

720,116

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,199

 

 

$

10,521

 

Contract liabilities

 

 

51,160

 

 

 

56,786

 

Accrued compensation and related benefits

 

 

22,454

 

 

 

23,792

 

Income taxes payable

 

 

1,373

 

 

 

148

 

Operating lease liabilities

 

 

10,669

 

 

 

10,619

 

Other current liabilities

 

 

43,616

 

 

 

41,352

 

Total current liabilities

 

 

138,471

 

 

 

143,218

 

Deferred compensation

 

 

5,988

 

 

 

5,300

 

Line of credit

 

 

179,000

 

 

 

129,000

 

Operating lease liabilities, net of current

 

 

36,135

 

 

 

38,823

 

Other noncurrent liabilities

 

 

6,570

 

 

 

3,281

 

Total liabilities

 

 

366,164

 

 

 

319,622

 

Commitments and contingencies (Note 16)

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

$0.01 par value; authorized 100,000 shares; issued and outstanding 66,669 and 66,134 shares at June 30, 2020 and March 31, 2020, respectively

 

 

667

 

 

 

661

 

Additional paid-in capital

 

 

286,836

 

 

 

282,857

 

Accumulated other comprehensive loss

 

 

(2,156

)

 

 

(2,143

)

Retained earnings

 

 

118,295

 

 

 

119,119

 

Total shareholders' equity

 

 

403,642

 

 

 

400,494

 

Total liabilities and shareholders' equity

 

$

769,806

 

 

$

720,116

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

Recurring

$

119,522

 

 

$

119,447

 

Software, hardware, and other non-recurring

 

11,357

 

 

 

12,414

 

Total revenues

 

130,879

 

 

 

131,861

 

Cost of revenue:

 

 

 

 

 

 

 

Recurring

 

50,429

 

 

 

50,540

 

Software, hardware, and other non-recurring

 

6,041

 

 

 

6,278

 

Amortization of capitalized software costs and acquired intangible assets

 

9,899

 

 

 

8,413

 

Total cost of revenue

 

66,369

 

 

 

65,231

 

Gross profit

 

64,510

 

 

 

66,630

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

 

40,737

 

 

 

40,128

 

Research and development costs, net

 

18,222

 

 

 

22,051

 

Amortization of acquired intangible assets

 

1,112

 

 

 

865

 

Impairment of assets

 

 

 

 

489

 

Restructuring costs

 

2,562

 

 

 

1,707

 

Total operating expenses

 

62,633

 

 

 

65,240

 

Income from operations

 

1,877

 

 

 

1,390

 

Interest income

 

6

 

 

 

79

 

Interest expense

 

(1,107

)

 

 

(472

)

Other income (expense), net

 

16

 

 

 

(133

)

Income before provision for (benefit of) income taxes

 

792

 

 

 

864

 

Provision for (benefit of) income taxes

 

1,616

 

 

 

(380

)

Net income (loss)

$

(824

)

 

$

1,244

 

Other comprehensive income:

 

 

 

 

 

 

 

Foreign currency translation, net of tax

 

(13

)

 

 

54

 

Comprehensive income (loss)

$

(837

)

 

$

1,298

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

(0.01

)

 

$

0.02

 

Diluted

$

(0.01

)

 

$

0.02

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

 

66,296

 

 

 

65,015

 

Diluted

 

66,296

 

 

 

65,353

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

NEXTGEN HEALTHCARE, INC.

STATEMENTS OF CONDENSED CONSOLIDATED STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

 

Three Months Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Accumulated Other

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

Balance, March 31, 2020

 

 

66,134

 

 

 

661

 

 

 

282,857

 

 

 

119,119

 

 

 

(2,143

)

 

 

400,494

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

535

 

 

 

6

 

 

 

(1,414

)

 

 

 

 

 

 

 

 

(1,408

)

Stock-based compensation

 

 

 

 

 

 

 

 

5,393

 

 

 

 

 

 

 

 

 

5,393

 

Components of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

(13

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

(824

)

 

 

 

 

 

(824

)

Balance, June 30, 2020

 

 

66,669

 

 

 

667

 

 

 

286,836

 

 

 

118,295

 

 

 

(2,156

)

 

 

403,642

 

 

 

 

 

Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Accumulated Other

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

Balance, March 31, 2019

 

 

64,838

 

 

 

648

 

 

 

264,908

 

 

 

111,621

 

 

 

(1,231

)

 

 

375,946

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

545

 

 

 

6

 

 

 

(1,311

)

 

 

 

 

 

 

 

 

(1,305

)

Stock-based compensation

 

 

 

 

 

 

 

 

4,891

 

 

 

 

 

 

 

 

 

4,891

 

Components of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54

 

 

 

54

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

1,244

 

 

 

 

 

 

1,244

 

Balance, June 30, 2019

 

 

65,383

 

 

 

654

 

 

 

268,488

 

 

 

112,865

 

 

 

(1,177

)

 

 

380,830

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(824

)

 

$

1,244

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Amortization of capitalized software costs

 

 

4,763

 

 

 

4,125

 

Amortization of debt issuance costs

 

 

177

 

 

 

177

 

Amortization of other intangibles

 

 

6,248

 

 

 

5,153

 

Change in fair value of contingent consideration

 

 

25

 

 

 

 

Deferred income taxes

 

 

16

 

 

 

(13

)

Depreciation

 

 

1,996

 

 

 

2,092

 

Excess tax deficiency (benefit) from share-based compensation

 

 

867

 

 

 

(189

)

Impairment of assets

 

 

 

 

 

489

 

Loss on disposal of equipment and improvements

 

 

 

 

 

41

 

Non-cash operating lease costs

 

 

1,683

 

 

 

1,815

 

Provision for bad debts

 

 

869

 

 

 

606

 

Restructuring costs, net of amounts paid

 

 

 

 

 

1,707

 

Share-based compensation

 

 

5,393

 

 

 

4,891

 

Changes in assets and liabilities, net of amounts acquired:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,286

 

 

 

5,105

 

Contract assets

 

 

(1,082

)

 

 

1,396

 

Accounts payable

 

 

(1,391

)

 

 

416

 

Contract liabilities

 

 

(5,626

)

 

 

(2,046

)

Accrued compensation and related benefits

 

 

(1,338

)

 

 

(9,994

)

Income taxes

 

 

635

 

 

 

982

 

Deferred compensation

 

 

688

 

 

 

141

 

Operating lease liabilities

 

 

(2,596

)

 

 

(2,286

)

Other assets and liabilities

 

 

4,883

 

 

 

1,145

 

Net cash provided by operating activities

 

 

17,672

 

 

 

16,997

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Additions to capitalized software costs

 

 

(5,612

)

 

 

(4,735

)

Additions to equipment and improvements

 

 

(616

)

 

 

(3,689

)

Net cash used in investing activities

 

 

(6,228

)

 

 

(8,424

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

50,000

 

 

 

 

Repayments on line of credit

 

 

 

 

 

(5,000

)

Proceeds from issuance of shares under employee plans

 

 

426

 

 

 

1,096

 

Payments for taxes related to net share settlement of equity awards

 

 

(1,834

)

 

 

(2,401

)

Net cash provided by (used in) financing activities

 

 

48,592

 

 

 

(6,305

)

Net increase in cash, cash equivalents, and restricted cash

 

 

60,036

 

 

 

2,268

 

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

 

 

140,319

 

 

 

34,522

 

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

 

$

200,355

 

 

$

36,790

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

206

 

 

$

257

 

Cash refunds from income taxes

 

 

91

 

 

 

1,430

 

Cash paid for interest

 

 

947

 

 

 

275

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

 

3,133

 

 

 

2,617

 

Operating lease assets obtained in exchange for operating lease liabilities

 

 

 

 

 

5,324

 

Accrued purchases of equipment and improvements

 

 

69

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

6


 

NEXTGEN HEALTHCARE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTES INDEX

 

Note

 

 

 

Page

 

 

 

 

 

Note 1

 

Summary of Significant Accounting Policies

 

8

Note 2

 

Revenue from Contracts with Customers

 

9

Note 3

 

Accounts Receivable

 

12

Note 4

 

Fair Value Measurements

 

12

Note 5

 

Leases

 

13

Note 6

 

Business Combinations

 

14

Note 7

 

Goodwill

 

16

Note 8

 

Intangible Assets

 

16

Note 9

 

Capitalized Software Costs

 

17

Note 10

 

Line of Credit

 

17

Note 11

 

Composition of Certain Financial Statement Captions

 

18

Note 12

 

Income Taxes

 

19

Note 13

 

Earnings Per Share

 

20

Note 14

 

Share-Based Awards

 

20

Note 15

 

Concentration of Credit Risk

 

22

Note 16

 

Commitments, Guarantees and Contingencies

 

22

Note 17

 

Restructuring Plan

 

24

Note 18

 

Subsequent Events

 

24

 

7


 

NEXTGEN HEALTHCARE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except shares and per share data)

(Unaudited)

1. Summary of Significant Accounting Policies

Principles of Consolidation. The condensed consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated.

Basis of Presentation.  The accompanying unaudited condensed consolidated financial statements as of June 30, 2020 and for the three months ended June 30, 2020 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments which are necessary for a fair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year.

References to amounts in the condensed consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified.

Use of Estimates.  In late 2019, the emergence of a novel coronavirus, or COVID-19, was reported and in January 2020, the World Health Organization (“WHO”), declared it a Public Health Emergency of International Concern. In March 2020, the WHO escalated COVID-19 as a pandemic. The extent to which COVID-19 impacts our business and financial results will depend on numerous evolving factors including, but not limited to, the magnitude and duration of COVID-19; the impact on our employees; the extent to which it will impact worldwide macroeconomic conditions, including interest rates, employment rates, and health insurance coverage; the speed of the anticipated recovery; and governmental and business reactions to the pandemic. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 at June 30, 2020 and through the date of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, our allowances for doubtful accounts and the carrying value of goodwill and other long-lived assets. While there was not a material impact to our consolidated financial statements at and for the quarter ended June 30, 2020, our future assessment of the magnitude and duration of COVID-19, as well as other factors could result in material impacts to our consolidated financial statements in future reporting periods.

Share-Based Compensation. The following table summarizes total share-based compensation expense included in the condensed consolidated statements of net income (loss) and comprehensive income (loss) for the three months ended June 30, 2020 and 2019:

 

 

Three Months Ended June 30,

 

 

2020

 

 

2019

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

$

424

 

 

$

463

 

Research and development costs

 

917

 

 

 

1,028

 

Selling, general and administrative

 

4,052

 

 

 

3,400

 

Total share-based compensation

 

5,393

 

 

 

4,891

 

Income tax benefit

 

(1,264

)

 

 

(1,215

)

Decrease in net income

$

4,129

 

 

$

3,676

 

 

Recently Adopted Accounting Pronouncements.  Recently adopted accounting pronouncements are discussed below or in the notes, where applicable.

In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. The adoption of ASU 2018-15 on April 1, 2020 did not have a material impact on our condensed consolidated financial statements.

8


 

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies certain disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. ASU 2018-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. The adoption of ASU 2018-13 on April 1, 2020 did not have a material impact on our condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of Step two of the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective prospectively for annual and interim periods beginning after December 15, 2019, and early adoption is permitted on goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 on April 1, 2020 did not have a material impact on our condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 provides new guidance regarding the measurement and recognition of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The adoption of ASU 2016-13 using the modified retrospective transition approach on April 1, 2020 did not have a material impact on our condensed consolidated financial statements. Refer to Note 3 for additional details.

Recent Accounting Standards Not Yet Adopted.   Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 may be applied prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 may have on our contracts that reference LIBOR, such as our amended and restated revolving credit agreement (see Note 10). We have not elected to apply any of the provisions of ASU 2020-04, and we are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. ASU 2019-12 is effective for us in the first quarter of fiscal 2022. We are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements.

We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our condensed consolidated financial statements.

2. Revenue from Contracts with Customers

Revenue Recognition and Performance Obligations

We generate revenue from sales of licensing rights and subscriptions to our software solutions, hardware and third-party software products, support and maintenance, managed services, EDI, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations.

The total transaction price is allocated to each performance obligation within a contract based on estimated standalone selling prices. We generally determine standalone selling prices based on the prices charged to customers, except for certain software licenses that are based on the residual approach because their standalone selling prices are highly variable and certain maintenance customers that are based on substantive renewal rates. In instances where standalone selling price is not sufficiently observable, such as RCM services and software licenses included in our RCM arrangements, we estimate standalone selling price utilizing an expected cost plus a margin approach. When standalone selling prices are not observable, significant judgment is required in estimating the standalone selling price for each performance obligation.

Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services.

9


 

We exclude sales tax from the measurement of the transaction price and record revenue net of taxes collected from customers and subsequently remitted to governmental authorities.

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

 

 

 

Three Months Ended June 30,

 

 

 

2020

 

 

2019

 

Recurring revenues: