Company Announces Regular Quarterly Dividend of $0.51 Per Share
Computer Programs and Systems, Inc. Announces First Quarter 2013 Results
Computer Programs and Systems, Inc.Boyd Douglas, 251-639-8100President and Chief Executive Officer
Computer Programs and Systems, Inc. (NASDAQ: CPSI):
Highlights:
Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider of healthcare information solutions, today announced results for the first quarter ended March 31, 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 May 24, 2013, to stockholders of record as of the close of business on May 9, 2013.
Total revenues for the first quarter ended March 31, 2013, were $49.5 million, compared with total revenues of $44.5 million for the prior-year first quarter. Net income for the quarter ended March 31, 2013, increased 23% to $6.9 million, or $0.63 per diluted share, compared with $5.6 million, or $0.51 per diluted share, for the quarter ended March 31, 2012. Cash provided by operations for the first quarter of 2013 was $5.5 million, compared with $8.6 million for the prior-year first quarter. Cash collections for the first quarter ended March 31, 2013, were $43.1 million, compared with cash collections of $43.9 million for the prior-year first quarter.
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 March 31, 2013, was approximately $5.2 million.
For the first quarter of 2013, current financing receivables increased $10.5 million as a result of extended payment terms for new system installations during the first quarter. Under the extended payment terms, payment consideration is being deferred until the earlier of 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 March 31, 2013, was $157.7 million, consisting of $46.9 million in non-recurring system purchases and $110.8 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 first quarter 2013 conference call will be available on-line at and on April 26, 2013, beginning at 9:00 a.m. Eastern Time.
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 or .
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.