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Computer Programs and Systems, Inc. Announces Fourth Quarter and Year-End 2012 Results
By: Business Wire
Jan. 31, 2013 04:32 PM
Computer Programs and Systems, Inc. (NASDAQ: CPSI):
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.
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