Computer Programs and Systems, Inc. (NASDAQ: CPSI):
Highlights:
Revenues of $27.8 million for the second quarter;
Earnings per diluted share of $0.28;
Cash flow from operations of $5.2 million; and
Quarterly dividend of $0.36 per share.
Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider
of healthcare information solutions, today announced results for the
second quarter and six months ended June 30, 2008.
The Company also announced that its Board of Directors has declared a
regular quarterly cash dividend of $0.36 (thirty-six cents) per share,
payable on August 22, 2008, to stockholders of record as of the close of
business on August 7, 2008.
Total revenues for the second quarter ended June 30, 2008, decreased
0.8% to $27.8 million, compared with total revenues of $28.0 million for
the prior-year period. Net income for the quarter ended June 30, 2008,
decreased 9.4% to $3.0 million, or $0.28 per diluted share, compared
with $3.3 million, or $0.31 per diluted share, for the quarter ended
June 30, 2007. Cash flow from operations for the second quarter of 2008
was $5.2 million, compared with $5.2 million for the prior-year period.
Commenting on the results, Boyd Douglas, chief executive officer and
president of CPSI, stated, "We are pleased
with our strong performance this quarter, which we view as confirmation
of our optimistic outlook and expectations for a solid second half of
the year. During the second quarter, overall demand for our products and
services increased significantly. We are confident this momentum in our
marketplace will continue during the third quarter, and we are well
positioned to capitalize on this opportunity. Also, I am pleased to
report that second quarter cash collections were at a record level. We
are excited about these results and are grateful to our many customers
for their business and continued belief in our company.”
Total revenues for the six months ended June 30, 2008, increased 6.2% to
$57.3 million, compared with total revenues of $53.9 million for the
prior-year period. Net income for the six months ended June 30, 2008,
increased 10.8% to $6.5 million, or $0.60 per diluted share, compared
with $5.9 million, or $0.55 per diluted share, for the six months ended
June 30, 2007. Cash provided from operations for the first half of 2008
was $9.5 million, compared with $8.6 million for the same period last
year.
For the third quarter of 2008, the Company anticipates total revenues of
$30.0 million to $31.5 million and net income of approximately $3.9
million to $4.1 million, or $0.37 to $0.39 per diluted share. CPSI’s
12-month backlog as of June 30, 2008, was $94.3 million, consisting of
$20.2 million in non-recurring system purchases and $74.1 million in
recurring payments for support, outsourcing, ASP and ISP contracts.
A listen-only simulcast and replay of CPSI’s
second quarter 2008 conference call will be available on-line at www.cpsinet.com
and www.earnings.com on July 25,
2008, 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 600 client hospitals in 46 states. 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
staff of over 700 technical, healthcare and medical 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.
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;
saturation of our target market and hospital consolidations; changes in
customer purchasing priorities 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 reimbursement rates; 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 June 30,
Six Months Ended June 30, 2008
2007 2008
2007
Sales revenues:
System sales
$
8,458
$
10,266
$
19,114
$
18,582
Support and maintenance
13,133
12,368
26,219
24,908
Business management services
6,161
5,329
11,936
10,419
Total sales revenues
27,752
27,963
57,269
53,909
Cost of sales:
System sales
7,215
7,766
15,117
14,945
Support and maintenance
4,772
5,006
9,570
10,063
Business management services
3,640
3,295
7,225
6,353
Total cost of sales
15,627
16,067
31,912
31,361
Gross profit
12,125
11,896
25,357
22,548
Operating expenses:
Sales and marketing
2,129
2,306
4,389
4,382
General and administrative
5,287
4,765
10,761
9,657
Total operating expenses
7,416
7,071
15,150
14,039
Operating income
4,709
4,825
10,207
8,509
Interest income, net
230
272
495
549
Income before taxes
4,939
5,097
10,702
9,058
Provision for income taxes
1,948
1,795
4,205
3,197
Net income
$
2,991
$
3,302
$
6,497
$
5,861
Basic earnings per share
$
0.28
$
0.31
$
0.60
$
0.55
Diluted earnings per share
$
0.28
$
0.31
$
0.60
$
0.55
Weighted average shares outstanding:
Basic
10,753
10,683
10,749
10,673
Diluted
10,767
10,732
10,767
10,725
COMPUTER PROGRAMS AND SYSTEMS, INC. Condensed Balance Sheets (in thousands)
June 30, 2008
Dec. 31, 2007 (Unaudited) ASSETS
Current assets:
Cash and cash equivalents
$
12,851
$
11,806
Investments
11,595
11,352
Accounts receivable, net of allowance for doubtful accounts of
$797 and $949, respectively
13,179
14,334
Financing receivables, current portion
1,879
1,735
Inventory
1,624
1,450
Deferred tax assets
1,429
1,394
Prepaid expenses
419
506
Total current assets
42,976
42,577
Financing receivables, long-term
1,280
2,322
Property and equipment
12,708
12,130
Accumulated depreciation
(7,586
)
(6,621
)
Total assets
$
49,378
$
50,408
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,625
$
1,717
Deferred revenue
3,971
3,581
Accrued vacation
2,264
2,112
Income taxes payable
76
542
Other accrued liabilities
3,363
3,507
Total current liabilities
11,299
11,459
Deferred tax liabilities
367
571
Stockholders’ equity:
Common stock, par value $0.001 per share, 30,000 shares authorized,
10,833 and 10,807 shares issued and outstanding
11
11
Additional paid-in capital
25,298
24,658
Accumulated other comprehensive income
37
45
Retained earnings
12,366
13,664
Total stockholders’ equity
37,712
38,378
Total liabilities and stockholders’ equity
$
49,378
$
50,408
COMPUTER PROGRAMS AND SYSTEMS, INC. Unaudited Other Supplemental Information (In thousands)
The following table summarizes free
cash flow for the Company:
Three Months Ended June 30, 2008
Six Months Ended June 30, 2008
Net cash provided by operating activities
$
5,212
$
9,514
Purchases of property and equipment
(266
)
(577
)
Free cash flow
$
4,946
$
8,937
Free cash flow is a non-GAAP financial measure which CPSI defines as net
cash provided by operating activities less purchases of property and
equipment. 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.
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