Welcome!

Cloud Expo Authors: Roger Strukhoff, Pat Romanski, Gilad Parann-Nissany, Elizabeth White, Trevor Parsons

News Feed Item

Computer Programs and Systems, Inc. Announces Fourth Quarter and Year-End 2012 Results

Computer Programs and Systems, Inc. (NASDAQ: CPSI):

Highlights:

  • 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

December 31,

Year Ended

December 31,

2012   2011 2012   2011
Sales revenues:
System sales $ 20,089 $ 15,445 $ 72,553 $ 70,644
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:
System sales 12,912 11,107 49,019 47,603
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
Gross profit 21,240 18,642 80,661 79,411
 
Operating expenses:
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
 
Operating income 12,362 10,527 41,277 41,295
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
Net income $ 9,139 $ 6,555 $ 29,973 $ 25,833
 
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:
Basic 11,074 11,063 11,066 11,034
Diluted 11,074 11,063 11,066 11,034

       

COMPUTER PROGRAMS AND SYSTEMS, INC.

Condensed Balance Sheets

(in thousands)

 
Dec. 31,

2012

Dec. 31,

2011

(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,913 $ 6,664
Investments 10,675 16,487

Accounts receivable, net of allowance for doubtful accounts of $1,124 and $1,276, respectively

19,705 21,521
Financing receivables, current portion (net) 4,618 3,781
Inventory 1,682 1,839
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
Accumulated depreciation   (7,498 )   (13,326 )
Total assets $ 77,840   $ 75,645  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 2,980 $ 2,469
Deferred revenue 7,453 5,590
Accrued vacation 3,506 3,212
Other accrued liabilities   4,522     5,400  
Total current liabilities 18,461 16,671
 
Deferred tax liabilities 2,177 1,590
 
Stockholders’ equity:
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
Retained earnings   24,315     25,784  
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

(In thousands)

 

The following table summarizes cash flow and free cash flow for the Company:

 

Three Months Ended
December 31,

Year Ended

December 31,

2012   2011 2012   2011
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

 

4,952 (9,867 ) 1,482 (14,025 )
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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Cloud Expo Breaking News
File sync and share. Endpoint protection. Both are massive opportunities for today’s enterprise thanks to their business benefits and widespread user appeal. But one size does not fit all, especially user-adopted consumer technologies. Organizations must apply the right enterprise-ready tool for the job in order to properly manage and protect endpoint data. In his session at 14th Cloud Expo, Michael Bachman, Senior Enterprise Systems Architect at Code42, he will discuss how the synergy of an enterprise platform – where sync/share and endpoint protection converge – delivers incredible value for the business.
Simply defined the SDDC promises that you’ll be able to treat “all” of your IT infrastructure as if it’s completely malleable. That there are no restrictions to how you can use and assign everything from border controls to VM size as long as you stay within the technical capabilities of the devices. The promise is great, but the reality is still a dream for the majority of enterprises. In his session at 14th Cloud Expo, Mark Thiele, EVP, Data Center Tech, at SUPERNAP, will cover where and how a business might benefit from SDDC and also why they should or shouldn’t attempt to adopt today.
Today, developers and business units are leading the charge to cloud computing. The primary driver: faster access to computing resources by using the cloud's automated infrastructure provisioning. However, fast access to infrastructure exposes the next friction point: creating, delivering, and operating applications much faster. In his session at 14th Cloud Expo, Bernard Golden, VP of Strategy at ActiveState, will discuss why solving the next friction point is critical for true cloud computing success and how developers and business units can leverage service catalogs, frameworks, and DevOps to achieve the true goal of IT: delivering increased business value through applications.
APIs came about to help companies create and manage their digital ecosystem, enabling them not only to reach more customers through more devices, but also create a large supporting ecosystem of developers and partners. While Facebook, Twitter and Netflix were the early adopters of APIs, large enterprises have been quick to embrace the concept of APIs and have been leveraging APIs as a connective tissue that powers all interactions between their customers, partners and employees. As enterprises embrace APIs, some very specific Enterprise API Adoption patterns and best practices have started emerging. In his session at 14th Cloud Expo, Sachin Agarwal, VP of Product Marketing and Strategy at SOA Software, will talk about the most common enterprise API patterns and will discuss how enterprises can successfully launch an API program.
MapDB is an Apache-licensed open source database specifically designed for Java developers. The library uses the standard Java Collections API, making it totally natural for Java developers to use and adopt, while scaling database size from GBs to TBs. MapDB is very fast and supports an agile approach to data, allowing developers to construct flexible schemas to exactly match application needs and tune performance, durability and caching for specific requirements.
The social media expansion has shown just how people are eager to share their experiences with the rest of the world. Cloud technology is the perfect platform to satisfy this need given its great flexibility and readiness. At Cynny, we aim to revolutionize how people share and organize their digital life through a brand new cloud service, starting from infrastructure to the users’ interface. A revolution that began from inventing and designing our very own infrastructure: we have created the first server network powered solely by ARM CPU. The microservers have “organism-like” features, differentiating them from any of the current technologies. Benefits include low consumption of energy, making Cynny the ecologically friendly alternative for storage as well as cheaper infrastructure, lower running costs, etc.
Next-Gen Cloud. Whatever you call it, there’s a higher calling for cloud computing that requires providers to change their spots and move from a commodity mindset to a premium one. Businesses can no longer maintain the status quo that today’s service providers offer. Yes, the continuity, speed, mobility, data access and connectivity are staples of the cloud and always will be. But cloud providers that plan to not only exist tomorrow – but to lead – know that security must be the top priority for the cloud and are delivering it now. In his session at 14th Cloud Expo, Kurt Hagerman, Chief Information Security Officer at FireHost, will detail why and how you can have both infrastructure performance and enterprise-grade security – and what tomorrow's cloud provider will look like.
Web conferencing in a public cloud has the same risks as any other cloud service. If you have ever had concerns over the types of data being shared in your employees’ web conferences, such as IP, financials or customer data, then it’s time to look at web conferencing in a private cloud. In her session at 14th Cloud Expo, Courtney Behrens, Senior Marketing Manager at Brother International, will discuss how issues that had previously been out of your control, like performance, advanced administration and compliance, can now be put back behind your firewall.
More and more enterprises today are doing business by opening up their data and applications through APIs. Though forward-thinking and strategic, exposing APIs also increases the surface area for potential attack by hackers. To benefit from APIs while staying secure, enterprises and security architects need to continue to develop a deep understanding about API security and how it differs from traditional web application security or mobile application security. In his session at 14th Cloud Expo, Sachin Agarwal, VP of Product Marketing and Strategy at SOA Software, will walk you through the various aspects of how an API could be potentially exploited. He will discuss the necessary best practices to secure your data and enterprise applications while continue continuing to support your business’s digital initiatives.
The revolution that happened in the server universe over the past 15 years has resulted in an eco-system that is more open, more democratically innovative and produced better results in technically challenging dimensions like scale. The underpinnings of the revolution were common hardware, standards based APIs (ex. POSIX) and a strict adherence to layering and isolation between applications, daemons and kernel drivers/modules which allowed multiple types of development happen in parallel without hindering others. Put simply, today's server model is built on a consistent x86 platform with few surprises in its core components. A kernel abstracts away the platform, so that applications and daemons are decoupled from the hardware. In contrast, networking equipment is still stuck in the mainframe era. Today, networking equipment is a single appliance, including hardware, OS, applications and user interface come as a monolithic entity from a single vendor. Switching between different vendor'...
Cloud backup and recovery services are critical to safeguarding an organization’s data and ensuring business continuity when technical failures and outages occur. With so many choices, how do you find the right provider for your specific needs? In his session at 14th Cloud Expo, Daniel Jacobson, Technology Manager at BUMI, will outline the key factors including backup configurations, proactive monitoring, data restoration, disaster recovery drills, security, compliance and data center resources. Aside from the technical considerations, the secret sauce in identifying the best vendor is the level of focus, expertise and specialization of their engineering team and support group, and how they monitor your day-to-day backups, provide recommendations, and guide you through restores when necessary.
Cloud scalability and performance should be at the heart of every successful Internet venture. The infrastructure needs to be resilient, flexible, and fast – it’s best not to get caught thinking about architecture until the middle of an emergency, when it's too late. In his interactive, no-holds-barred session at 14th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will dive into how to design and build-out the right cloud infrastructure.
You use an agile process; your goal is to make your organization more agile. What about your data infrastructure? The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver on new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for application developers and slow performance for end users. Further, as data sizes grow into the Big Data realm, this problem is exacerbated and becomes even more difficult to address. A seemingly simple schema change can take hours (or more) to perform, and as requirements evolve the disconnect between existing data structures and actual needs diverge.
SYS-CON Events announced today that SherWeb, a long-time leading provider of cloud services and Microsoft's 2013 World Hosting Partner of the Year, will exhibit at SYS-CON's 14th International Cloud Expo®, which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. A worldwide hosted services leader ranking in the prestigious North American Deloitte Technology Fast 500TM, and Microsoft's 2013 World Hosting Partner of the Year, SherWeb provides competitive cloud solutions to businesses and partners around the world. Founded in 1998, SherWeb is a privately owned company headquartered in Quebec, Canada. Its service portfolio includes Microsoft Exchange, SharePoint, Lync, Dynamics CRM and more.
The world of cloud and application development is not just for the hardened developer these days. In their session at 14th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, and Harold Hannon, Sr. Software Architect at SoftLayer, will pull back the curtain of the architecture of a fun demo application purpose-built for the cloud. They will focus on demonstrating how they leveraged compute, storage, messaging, and other cloud elements hosted at SoftLayer to lower the effort and difficulty of putting together a useful application. This will be an active demonstration and review of simple command-line tools and resources, so don’t be afraid if you are not a seasoned developer.