CPSI Announces Fourth Quarter and Year-End 2011 Results
January 26, 2012
Company Announces Increase in Quarterly Dividend to $0.46 Per Share,
an Increase of $0.10 Per Share
MOBILE, Ala.--(BUSINESS WIRE)--Jan. 26, 2012--
Computer Programs and Systems, Inc. (NASDAQ: CPSI):
Highlights:
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Revenues of $42.2 million for the fourth quarter and $173.5 million
for the year;
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12-month backlog of $138 million;
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Earnings per diluted share of $0.59 for the fourth quarter and $2.34
for the year;
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Cash provided by operations of $9.3 million for the fourth quarter and
$33.5 million for the year; and
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Quarterly dividend of $0.46 per share, an increase of $0.10 per share.
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, 2011.
The Company also announced that its Board of Directors has declared a
$0.10 per share increase in the regular quarterly cash dividend to $0.46
(forty-six cents) per share, payable on February 24, 2012, to
stockholders of record as of the close of business on February 9, 2012.
Total revenues for the fourth quarter ended December 31, 2011, decreased
2.0% to $42.2 million, compared with total revenues of $43.1 million for
the prior-year quarter. Net income for the quarter ended December 31,
2011, decreased 1.7% to $6.6 million, or $0.59 per diluted share,
compared with $6.7 million, or $0.61 per diluted share, for the quarter
ended December 31, 2010. Cash provided by operations for the fourth
quarter of 2011 was $9.3 million, compared with $5.7 million for the
prior-year quarter.
Total revenues for the year ended December 31, 2011, increased 13.2% to
$173.5 million, compared with total revenues of $153.2 million for the
prior year. Net income for the year ended December 31, 2011, increased
37.9% to $25.8 million, or $2.34 per diluted share, compared with $18.7
million, or $1.71 per diluted share, for the year ended December 31,
2010. Cash provided by operations for 2011 was $33.5 million, compared
with $19.6 million for the prior year.
For 2012, the Company anticipates total revenues of $187 million to
$199 million and net income of approximately $28.5 million to $30.5
million, or $2.59 to $2.75 per diluted share. CPSI’s 12-month backlog as
of December 31, 2011, was $138 million, consisting of $35 million in
non-recurring system purchases and $103 million in recurring payments
for support, Business Management Services and SAAS contracts.
A listen-only simulcast and replay of CPSI’s fourth quarter and year-end
2011 conference call will be available on-line at www.cpsinet.com
and www.earnings.com
on January 27, 2012, 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 staff of over 1,200 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.
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, 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 the effects of the healthcare reform legislation
enacted in 2010 and changes in healthcare policy affecting Medicare and
Medicaid reimbursement rates; changes in accounting principles generally
accepted in the United States; 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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COMPUTER PROGRAMS AND SYSTEMS, INC.
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Unaudited Condensed Statements of Operations
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(in thousands, except per share data)
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Three Months Ended
December 31,
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Year Ended
December 31,
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2011
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2010
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2011
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2010
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Sales revenues:
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System sales
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$
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15,445
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$
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19,204
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$
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70,644
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$
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61,253
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Support and maintenance
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17,994
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15,604
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67,557
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59,259
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Business management services
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8,773
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8,271
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35,275
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32,735
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Total sales revenues
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42,212
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43,079
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173,476
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153,247
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Cost of sales:
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System sales
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11,107
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13,023
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47,603
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46,801
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Support and maintenance
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7,489
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6,303
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27,239
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23,923
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Business management services
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4,974
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4,220
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19,223
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18,139
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Total cost of sales
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23,570
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23,546
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94,065
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88,863
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Gross profit
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18,642
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19,533
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79,411
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64,384
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Operating expenses:
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Sales and marketing
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3,041
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3,291
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13,413
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11,605
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General and administrative
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5,074
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6,036
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24,703
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23,682
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Total operating expenses
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8,115
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9,327
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38,116
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35,287
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Operating income
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10,527
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10,206
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41,295
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29,097
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Interest income, net
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175
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160
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667
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674
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Income before taxes
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10,702
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10,366
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41,962
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29,771
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Provision for income taxes
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4,147
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3,701
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16,129
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11,033
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Net income
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$
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6,555
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$
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6,665
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$
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25,833
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$
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18,738
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Basic earnings per share
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$
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0.59
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$
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0.61
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$
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2.34
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$
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1.71
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Diluted earnings per share
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$
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0.59
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$
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0.61
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$
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2.34
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$
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1.71
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Weighted average shares outstanding:
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Basic
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11,063
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10,963
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11,034
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10,963
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Diluted
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11,063
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10,963
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11,034
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10,963
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COMPUTER PROGRAMS AND SYSTEMS, INC.
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Condensed Balance Sheets
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(in thousands)
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Dec. 31,
2011
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Dec. 31,
2010
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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6,664
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$
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2,940
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Investments
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16,487
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13,402
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Accounts receivable, net of allowance for doubtful accounts of
$1,276 and $969, respectively
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21,521
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25,473
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Financing receivables, current portion (net)
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3,781
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3,114
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Inventory
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1,839
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1,783
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Deferred tax assets
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2,544
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2,244
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Prepaid income taxes
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835
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102
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Prepaid expenses
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498
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562
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Total current assets
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54,169
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49,620
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Financing receivables, long-term (net)
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4,057
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4,432
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Property and equipment
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30,745
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19,576
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Accumulated depreciation
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(13,326
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)
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(10,893
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Total assets
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$
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75,645
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$
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62,735
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$
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2,469
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$
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2,617
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Deferred revenue
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5,590
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4,469
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Accrued vacation
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3,212
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2,952
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Other accrued liabilities
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5,400
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4,447
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Total current liabilities
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16,671
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14,485
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Deferred tax liabilities
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1,590
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1,786
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Stockholders’ equity:
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Common stock, par value $0.001 per share, 30,000 shares authorized,
10,963 and 10,973 shares issued and outstanding
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11
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11
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Additional paid-in capital
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31,582
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30,549
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Accumulated other comprehensive income
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7
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59
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Retained earnings
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25,784
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15,845
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Total stockholders’ equity
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57,384
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46,464
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Total liabilities and stockholders’ equity
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$
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75,645
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$
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62,735
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COMPUTER PROGRAMS AND SYSTEMS, INC.
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Unaudited Other Supplemental Information
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(In thousands)
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The following table summarizes free cash
flow for the Company:
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Three
Months
Ended
Dec. 31,
2011
|
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Year
Ended
Dec. 31,
2011
|
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Net cash provided by operating activities
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$
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9,341
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$
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33,540
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Purchases of property and equipment*
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(9,840
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)
|
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(10,847
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)
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Free cash flow
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$
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(499
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)
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$
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22,693
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* Includes $9,500 for the acquisition of the Company’s corporate
headquarters and campus facility in December 2011.
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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.
Source: Computer Programs and Systems, Inc.
America's Mardi Gras celebrations originated in Mobile, Ala. in 1703. The throwing of Moon Pies during parades have been a Mobile Mardi Gras tradition since 1974. Be sure to come by CPSI's booth during HIMSS12 to get your own banana or chocolate Moon Pie.