Greenway Reports Fiscal 2013 First-Quarter Results
Greenway Medical Technologies, Inc. (NYSE: GWAY), which delivers innovative software and business services solutions for ambulatory care providers through its PrimeSUITE® platform, today announced financial results for the three months ended September 30, 2012.
“We continue to achieve strong financial results from operations as we successfully pursue a strategy that capitalizes on increased electronification among ambulatory care providers, encourages consumer engagement in the healthcare system, and establishes the value of objective data as a powerful tool to improve population health,” said Tee Green, president and chief executive officer of Greenway®. “We’re reaching our growth objectives by maintaining our focus on the long-term value proposition we have established for our customers.”
- Total revenue grew by 28% for the 2013 first quarter, when compared with the year-ago period, and revenue from recurring sources, including support services and electronic data interchange and business services grew by 36% year over year.
- Gross profit increased by 34% with gross margin improving by 262 basis points, to 54.4% for the first quarter from the prior-year period.
- Adjusted EBITDA margin was 8% for the 2013 first quarter, a 434-basis point improvement from the prior-year period. Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net income below and is not a substitute for the GAAP equivalent.
Operating ResultsGreenway generated revenue of $32.8 million for the three months ended September 30, 2012, up 28% from $25.7 million for the comparable prior-year period. Revenue from recurring sources, particularly support services, grew by 36% as a result of a higher proportion of new customer installations on Greenway’s cloud-based solutions, as well as growth of other services. Gross profit for the three months ended September 30, 2012, was $17.8 million, which compares with $13.3 million for the three months ended September 30, 2011, a 34% increase. Gross profit margin improved by 262 basis points, to 54.4% for the fiscal 2013 first quarter, from 51.8% for the prior-year period, largely as a result of revenue growth as well as better margins for support services and electronic data interchange and business services, offset by a decline in system sales margins for the period. System sales margin for the quarter includes the absorption of increased amortization expense of approximately $1.2 million related to software development costs and acquired technology. Amortization commences as various projects become available for market.
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