|By Business Wire||
|January 31, 2013 04:32 PM EST||
Computer Programs and Systems, Inc. (NASDAQ: CPSI):
- Revenues of $47.9 million for the fourth quarter and $183.3 million for the year;
- Record cash collections in the fourth quarter of $53.2 million, compared with previous record of $46.1 million in the third quarter of 2011;
- Earnings per diluted share of $0.83 for the fourth quarter and $2.71 for the year;
- Cash provided by operations of $14.3 million for the fourth quarter and $32.2 million for the year;
- Quarterly dividend of $0.51 per share, an increase of $0.05 per share; and
- Formation of TruBridge, LLC.
Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider of healthcare information solutions, today announced results for the fourth quarter and year ended December 31, 2012.
The Company also announced that its Board of Directors has approved an increase in the regular quarterly cash dividend of $0.05 to $0.51 (fifty-one cents) per share, payable on February 22, 2013, to stockholders of record as of the close of business on February 7, 2013.
Total revenues for the fourth quarter ended December 31, 2012, were $47.9 million, compared with total revenues of $42.2 million for the prior-year fourth quarter. Net income for the quarter ended December 31, 2012, increased 39% to $9.1 million, or $0.83 per diluted share, compared with $6.6 million, or $0.59 per diluted share, for the quarter ended December 31, 2011. Cash provided by operations for the fourth quarter of 2012 was $14.3 million, compared with $9.3 million for the prior-year fourth quarter. Cash collections for the fourth quarter ended December 31, 2012, were $53.2 million, compared with cash collections of $44.3 million for the prior-year fourth quarter.
During the fourth quarter of 2012, the Company recorded a tax benefit of $1.6 million for tax deductions not previously recognized for tax years 2005 through 2010 related to increased IRC Section 199 Domestic Production Activities Deductions.
Total revenues for the year ended December 31, 2012, were $183.3 million, compared with total revenues of $173.5 million for the prior year. Net income for the year ended December 31, 2012, increased 16% to $30.0 million, or $2.71 per diluted share, compared with $25.8 million, or $2.34 per diluted share, for the year ended December 31, 2011. Cash provided by operations for 2012 was $32.2 million, compared with $33.5 million for the prior year. Cash collections for 2012 were $184.0 million, compared with cash collections of $179.3 million for the prior year.
During 2012, the Company installed systems under contracts for which a portion of the consideration will be received and revenue recognized in subsequent periods upon hospitals successfully achieving Meaningful Use designation. The total accumulated unrecognized revenue related to such contracts as of December 31, 2012, was approximately $7.1 million.
For 2013, the Company anticipates total revenues of $194.0 million to $206.0 million and net income of approximately $31.0 million to $33.0 million, or $2.80 to $2.98 per diluted share. CPSI’s 12-month backlog as of December 31, 2012, was $149.3 million, consisting of $42.4 million in non-recurring system purchases and $106.9 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.
Earlier this week, the Company announced the formation of TruBridge, LLC, a wholly owned subsidiary of CPSI. TruBridge will provide business services, consulting services and managed information technology services targeted specifically at rural and community healthcare organizations. The new subsidiary will provide services to a broad healthcare market, regardless of the organization’s IT vendor. For more information, visit www.trubridge.net.
A listen-only simulcast and replay of CPSI’s fourth quarter and year-end 2012 conference call will be available on-line at www.cpsinet.com and www.earnings.com on February 1, 2013, beginning at 9:00 a.m. Eastern Time.
About Computer Programs and Systems, Inc.
CPSI is a leading provider of healthcare information solutions for community hospitals with over 650 client hospitals in 45 states and the District of Columbia. Founded in 1979, the Company is a single-source vendor providing comprehensive software and hardware products, complemented by complete installation services and extensive support. Its fully integrated, enterprise-wide system automates clinical and financial data management in each of the primary functional areas of a hospital. 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. CPSI’s staff of over 1,400 technical, healthcare, medical and business professionals provides system implementation and continuing support services as part of a comprehensive program designed to respond to clients’ information needs in a constantly changing healthcare environment. For more information, visit www.cpsinet.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, including with respect to CPSI’s expectations for growing TruBridge, LLC (“TruBridge”), a wholly owned subsidiary of CPSI, and successfully providing and expanding its service offerings. 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: the effectiveness of the strategy of moving CPSI’s business management services to TruBridge; overall business and economic conditions affecting the healthcare industry; 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; government regulation of our products and customers, including changes in healthcare policy affecting Medicare and Medicaid reimbursement rates; government regulation of the healthcare and health insurance industries; 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 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 Statements of Operations
(in thousands, except per share data)
Three Months Ended
|Support and maintenance||18,321||17,994||73,026||67,557|
|Business management services||9,505||8,773||37,730||35,275|
|Total sales revenues||47,915||42,212||183,309||173,476|
|Cost of sales:|
|Support and maintenance||8,036||7,489||31,119||27,239|
|Business management services||5,727||4,974||22,510||19,223|
|Total cost of sales||26,675||23,570||102,648||94,065|
|Sales and marketing||3,630||3,041||14,290||13,413|
|General and administrative||5,248||5,074||25,094||24,703|
|Total operating expenses||8,878||8,115||39,384||38,116|
|Other income, net||110||175||721||667|
|Income before taxes||12,472||10,702||41,998||41,962|
|Provision for income taxes||3,333||4,147||12,025||16,129|
|Basic earnings per share||$||0.83||$||0.59||$||2.71||$||2.34|
|Diluted earnings per share||$||0.83||$||0.59||$||2.71||$||2.34|
|Weighted average shares outstanding:|
COMPUTER PROGRAMS AND SYSTEMS, INC.
Condensed Balance Sheets
|Cash and cash equivalents||$||8,913||$||6,664|
Accounts receivable, net of allowance for doubtful accounts of $1,124 and $1,276, respectively
|Financing receivables, current portion (net)||4,618||3,781|
|Deferred tax assets||2,464||2,544|
|Prepaid income taxes||1,809||835|
|Prepaid expenses and other||1,081||498|
|Total current assets||50,947||54,169|
|Financing receivables, long-term (net)||7,863||4,057|
|Property and equipment||26,528||30,745|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Other accrued liabilities||4,522||5,400|
|Total current liabilities||18,461||16,671|
|Deferred tax liabilities||2,177||1,590|
|Common stock, par value $0.001 per share, 30,000 shares authorized, 11,078 and 11,063 shares issued and outstanding||11||11|
|Additional paid-in capital||32,848||31,582|
|Accumulated other comprehensive income||28||7|
|Total stockholders’ equity||57,202||57,384|
|Total liabilities and stockholders’ equity||$||77,840||$||75,645|
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Other Supplemental Information
The following table summarizes cash flow and free cash flow for the Company:
Three Months Ended
|Cash Flow Information|
|Net cash provided by operating activities||$||14,252||$||9,341||$||32,207||$||33,540|
Net cash provided by (used in) investing activities
|Net cash used in financing activities||(16,122||)||(3,969||)||(31,440||)||(15,790||)|
|Free Cash Flow|
|Net cash provided by operating activities||$||14,252||$||9,341||$||32,207||$||33,540|
|Less: Purchases of capital assets||(2,039||)||(9,840||)||(4,363||)||(10,847||)|
|Free cash flow||$||12,213||$||(499||)||$||27,844||$||22,693|
Free cash flow is a non-GAAP financial measure which CPSI defines as net cash provided by operating activities less purchases of capital assets. The most directly comparable GAAP financial measure is net cash provided by operating activities. The Company believes free cash flow is a useful measure of performance and uses this measure as an indication of the financial resources of the Company and its ability to generate cash.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
May. 23, 2015 09:00 PM EDT Reads: 5,190
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
May. 23, 2015 09:00 PM EDT Reads: 4,823
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
May. 23, 2015 08:00 PM EDT Reads: 2,125
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
May. 23, 2015 07:00 PM EDT Reads: 4,254
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
May. 23, 2015 07:00 PM EDT Reads: 1,734
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
May. 23, 2015 05:00 PM EDT Reads: 2,455
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
May. 23, 2015 04:00 PM EDT Reads: 4,776
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
May. 23, 2015 02:00 PM EDT Reads: 6,414
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
May. 23, 2015 02:00 PM EDT Reads: 4,342
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 23, 2015 01:00 PM EDT Reads: 6,975
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 23, 2015 01:00 PM EDT Reads: 1,550
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
May. 23, 2015 12:00 PM EDT Reads: 2,107
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
May. 23, 2015 12:00 PM EDT Reads: 1,925
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, will discuss IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sector...
May. 23, 2015 12:00 PM EDT Reads: 2,156
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 23, 2015 11:30 AM EDT Reads: 2,711
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
May. 23, 2015 11:15 AM EDT Reads: 2,135
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
May. 23, 2015 11:00 AM EDT Reads: 4,001
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
May. 23, 2015 11:00 AM EDT Reads: 5,639
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
May. 23, 2015 10:00 AM EDT Reads: 3,118
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
May. 23, 2015 10:00 AM EDT Reads: 2,187