Allscripts Healthcare Solutions posted $406.2 million in revenue for this year's second quarter, down 8.6% from the year-ago period.
The revenue drop was largely a result of lower patient volumes linked with the COVID-19 pandemic, said Rick Poulton, Allscripts' president and CFO, on a call with investment analysts Thursday. Dwindling patient volumes affected revenue in the company's revenue cycle management service and payment clearinghouse, among other services.
Collectively, those services comprise about 10% of the company's recurring revenue each quarter, Poulton said. Recurring revenue accounted for 82% of Allscripts' quarterly revenue.
Poulton said patient volumes have been recovering since June.
Allscripts in May had withdrawn its full-year 2020 financial outlook due to uncertainty from the pandemic.
The company reported $188 million in bookings for the second quarter, compared to $276 million posted in the second quarter of 2019.
"Given the macro environment during the quarter, we were pleased with the $188 million of bookings," Poulton said.
The company posted an operating loss of $4.7 million, down from a reported $4.7 million in operating income in the year-ago quarter.
That included roughly $28 million in restructuring charges—mainly severance costs—related to a "margin improvement plan," Poulton said. He said Allscripts doesn't expect the company to surpass more than $10 million in additional restructuring charges for the rest of the year, which would be split between the third and fourth quarters.
Allscripts announced its margin improvement plan last year. The company in March hired advisory firm AlixPartners to review its operations as part of the plan.
"My biggest focus is the corporate overhead," Poulton said, noting he wants to focus on making selling, general and administrative expenses more efficient.
The company's adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, margin was 19% for the quarter, compared to 16.9% in the same period last year.
Allscripts on Thursday also entered into an agreement to sell EPSi, a business unit focused on financial decision support, to Strata Decision Technology for $365 million.
Allscripts and Strata Decision Technology expect to complete the transaction in the third quarter.
"The after-tax proceeds will be used to de-lever and further strengthen our liquidity position," Poulton said.
Allscripts has owned EPSi since it acquired Eclipsys in 2010.
Poulton said it's possible Allscripts could divest more business units.
"Many of (the) businesses in the data analytics and care coordination segment are businesses that do more business outside the Allscripts EHR customer base than they do inside and are very capable of standing on their own," he said. "We're not predicting or foreshadowing anything, but they certainly are possibilities."
