Computer Programs and Systems, Inc. Announces Third Quarter 2013 Results
Press Release, News
Computer Programs and Systems, Inc. (CPSI):
- Revenues of $46.8 million;
- 12-month backlog of $163.4 million;
- Earnings per diluted share of $0.66;
- Cash provided by operations of $7.5 million; and
- Quarterly dividend of $0.51 per share.
Computer Programs and Systems, Inc. (CPSI), a leading provider of healthcare information solutions, today announced results for the third quarter and nine months ended September 30, 2013.
The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.51 (fifty-one cents) per share, payable on November 22, 2013, to stockholders of record as of the close of business on November 8, 2013.
Total revenues for the third quarter ended September 30, 2013, increased 4% to $46.8 million, compared with total revenues of $45.2 million for the prior-year third quarter. Net income for the quarter ended September 30, 2013, increased 5% to $7.3 million, or $0.66 per diluted share, compared with $6.9 million, or $0.63 per diluted share, for the quarter ended September 30, 2012. Cash provided by operations for the third quarter of 2013 was $7.5 million, compared with $6.4 million for the prior-year third quarter. Cash collections for the third quarter ended September 30, 2013, were $44.2 million, compared with cash collections of $42.7 million for the prior-year third quarter.
Total revenues for the nine months ended September 30, 2013, increased 10% to $149.6 million, compared with total revenues of $135.4 million for the prior-year period. Net income for the nine months ended September 30, 2013, increased 9% to $22.7 million, or $2.05 per diluted share, compared with $20.8 million, or $1.88 per diluted share, for the nine months ended September 30, 2012. Cash provided by operations for the first nine months of 2013 was $14.3 million, compared with $18.0 million for the prior-year period. Cash collections for the first nine months of 2013 were $133.3 million, compared with cash collections of $130.8 million for the prior-year period.
During 2012, the Company installed systems under contracts for which a portion of the consideration was to be received and revenue recognized in subsequent periods upon hospitals successfully achieving Meaningful Use designation. Although the related system installations were substantially completed during 2012, the total remaining accumulated unrecognized revenue related to such contracts as of September 30, 2013, was approximately $3.7 million.
For the first nine months of 2013, current financing receivables increased $24.3 million as a result of extended payment terms for new system installations during that period. Under the extended payment terms, payment consideration is deferred until the earlier of the customer successfully achieving Meaningful Use designation or over a 12-month period beginning two years from the date of installation. Based on its experience with similar installations, the Company anticipates the average payment term of these receivables will be nine months from the date of installation. Revenue for these installations is recognized when the installation is complete.
CPSI's 12-month backlog as of September 30, 2013, was $163.4 million, consisting of $48.1 million in non-recurring system purchases and $115.3 million in recurring payments for support, Business Management Services and SAAS contracts. The backlog amounts exclude amounts to be recognized in subsequent periods upon hospitals successfully achieving Meaningful Use designation.
A listen-only simulcast and replay of CPSI's third quarter 2013 conference call will be available on-line at the Company's website, www.cpsi.com, on November 1, 2013, beginning at 9:00 a.m. Eastern Time.
About Computer Programs and Systems, Inc.
CPSI is a leading provider of electronic health records systems for more than 650 community, rural and critical access hospitals and their 12,000 providers. Founded in 1979, the Company is dedicated to meeting the ever-changing needs of health IT, while optimizing the quality of care for communities in 45 states and the District of Columbia. CPSI provides a complete information and patient care system from business office to bedside combined with comprehensive implementation, training and ongoing support from our staff of more than 1,400 healthcare and business professionals. CPSI's wholly owned subsidiary, TruBridge, focuses exclusively on providing business office, consulting and managed IT services to rural and community healthcare organizations, regardless of their IT vendor. To join the conversation with CPSI, connect with us on Facebook, Twitter (@cpsiehr) and on the CPSI blog. For more information, visit www.cpsi.com or www.trubridge.net.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as "expects," "anticipates," "estimates," "believes," "predicts," "intends," "plans," "potential," "may," "continue," "should," "will" and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and future financial results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: overall business and economic conditions affecting the healthcare industry; government regulation of the healthcare and health insurance industries; government regulation of our products and customers, including changes in healthcare policy affecting Medicare and Medicaid reimbursement rates and qualifying technological standards; the potential effects of the federal healthcare reform legislation enacted in 2010, and implementing regulations, on the businesses of our hospital customers; the funding uncertainties associated with and potential expenditures required by the American Recovery and Reinvestment Act of 2009 in connection with the adoption of electronic health records; saturation of our target market and hospital consolidations; changes in customer purchasing priorities, capital expenditures and demand for information technology systems; competition with companies that have greater financial, technical and marketing resources than we have; failure to develop new technology and products in response to market demands; fluctuations in quarterly financial performance due to, among other factors, timing of customer installations; failure of our products to function properly resulting in claims for medical losses; changes in accounting principles generally accepted in the United States; breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; potential intellectual property claims against us; general economic conditions, including changes in the financial and credit markets that may affect the availability and cost of credit to us or our customers; interruptions in our power supply and/or telecommunications capabilities and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended
Nine Months Ended
|Support and maintenance (1)||17,997||16,782||53,412||50,327|
Business management, consulting and managed IT services (1)
|Total sales revenues||46,780||45,174||149,590||135,394|
|Cost of sales:|
|Support and maintenance (1)||7,134||7,110||21,547||20,637|
|Business management, consulting and managed IT services (1)||7,750||6,521||22,217||19,230|
|Total cost of sales||26,126||25,159||81,340||75,973|
|Sales and marketing||3,286||3,379||10,997||10,661|
|General and administrative||6,342||6,645||22,970||19,845|
|Total operating expenses||9,628||10,024||33,967||30,506|
|Income before taxes||11,139||10,253||34,670||29,526|
|Provision for income taxes||3,870||3,328||11,971||8,691|
|Basic earnings per share||$||0.66||$||0.63||$||2.05||$||1.88|
|Diluted earnings per share||$||0.66||$||0.63||$||2.05||$||1.88|
|Weighted average shares outstanding:|
(1) Prior year amounts have been reclassified to reflect the current presentation.
SOURCE: BUSINESS WIRE