| MOBILE, Ala.--(BUSINESS WIRE)--July 28, 2004--In BW5885 issued July 22,
2004: The press release issued by Computer Programs and Systems, Inc.
(NASDAQ/NM: CPSI) on July 22, 2004, contained an error in the calculation
of the provision for income taxes for the quarter ended June 30, 2004.
The Company's provision for income taxes for the quarter was $1.0 million
instead of $0.8 million as initially reported. This change affects the
Company's reported net income for the quarter, which was $1.5 million
instead of $1.7 million as initially reported; the percent reduction in
net income compared with the quarter ended June 30, 2003, which was 31.3%
instead of 20.8% as initially reported; and the net income per diluted
share, which was $0.14 per diluted share instead of $0.16 as initially
reported. Corresponding corrections have also been made to the financial
information presented for the sixth months ended June 30, 2004, as well
as to the Company's Unaudited Condensed Balance Sheet. The Company
reaffirms its initial guidance that, for the third quarter of 2004, the
Company anticipates total revenues of $20.0 to $21.0 million and net
income of approximately $1.8 to $2.0 million, or $0.17 to $0.19 per
diluted share. The corrected press release appears in its entirety below:
COMPUTER PROGRAMS AND SYSTEMS, INC. ANNOUNCES SECOND QUARTER RESULTS
Highlights:
-- Signed 13 new system installation contracts;
-- Average new system installation contract size increased 44%
over last quarter;
-- Signed one full and five partial business office outsourcing
contracts; and
-- Declares regular quarterly dividend of $0.12 per share.
Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading
provider of healthcare information solutions, today announced results
for the second quarter and six months ended June 30, 2004.
The Company also announced that its Board of Directors has
declared a regular quarterly cash dividend of $0.12 (twelve cents) per
share, payable August 27, 2004, to shareholders of record as of the
close of business on August 6, 2004.
David Dye, chief executive officer and president of CPSI, stated,
"Based on the number and quality of our new hospital installation
contracts signed in the second quarter, we believe that the quarter
marked the beginning of a trend whereby community hospitals will be
increasingly investing in CPSI's integrated information technology
solutions in order to improve efficiency and provide their caregivers
with a complete electronic patient record. As we began to observe in
the first quarter, the number of hospitals in our sales pipeline that
are actively pursuing the purchase of a new information technology
system continues to increase."
Total revenues for the second quarter ended June 30, 2004,
decreased 4.5% to $19.0 million compared with total revenues of $19.9
million for the prior year period. Net income for the quarter ended
June 30, 2004, decreased 31.3% to $1.5 million, or $0.14 per diluted
share, compared with $2.1 million, or $0.20 per diluted share, for the
quarter ended June 30, 2003. Cash provided from operations for the
second quarter was $1.3 million compared with $2.6 million for the same
period last year.
Total revenues for the six months ended June 30, 2004, decreased
6.9% to $37.2 million compared with total revenues of $40.0 million for
the prior year period. Net income for the first half of 2004 decreased
47.3% to $2.2 million, or $0.21 per diluted share, compared with $4.2
million, or $0.40 per diluted share, for the first half of 2003. Cash
provided from operations for the six months ended June 30, 2004, was
$4.6 million compared with $4.2 million for the same period last year.
For the third quarter of 2004, the Company anticipates total
revenues of $20.0 to $21.0 million and net income of approximately
$1.8 to $2.0 million, or $0.17 to $0.19 per diluted share. CPSI's
12-month backlog as of June 30, 2004, was $64.9 million, consisting of
$16.9 million in non-recurring system purchases and $48.0 million in
recurring payments for support, outsourcing, ASP and ISP contracts.
Mr. Dye continued, "We are excited about the prospects for growth
in our outsourcing services revenue for the remainder of this year
based on our contract signings in the first half of 2004. In
particular, CPSI's business office outsourcing solutions continue to
be well received, as evidenced by feedback we have received from
several clients whom we have assisted in greatly reducing their days
in accounts receivable."
In closing, Mr. Dye added, "During the second quarter, we signed
contracts with 13 new client hospitals, and, in doing so, our company
achieved the significant milestone of adding its 500th hospital
client. With an improving healthcare reimbursement environment and an
ever increasing realization among politicians and providers that
investment in information technology can improve the quality of
patient care, we believe that CPSI remains well positioned to continue
to increase its customer base and capitalize on our industry's growth
trends for the remainder of 2004 and into 2005."
A listen-only simulcast and replay of CPSI's second quarter
conference call will be available on-line at www.cpsinet.com and
www.fulldisclosure.com on July 23, 2004, 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 500 client hospitals in 45 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 650 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; 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 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 Six Months Ended
June 30, June 30,
----------------- -----------------
2004 2003 2004 2003
------- ------- ------- -------
Sales revenues:
System sales $7,686 $9,638 $14,790 $19,740
Support and maintenance 9,309 8,451 18,564 16,749
Outsourcing 2,019 1,819 3,872 3,494
------- ------- ------- -------
Total sales revenues 19,014 19,908 37,226 39,983
Cost of sales:
System sales 6,146 6,501 12,579 13,634
Support and maintenance 4,113 4,017 8,257 7,928
Outsourcing 1,213 1,070 2,352 2,064
------- ------- ------- -------
Total cost of sales 11,472 11,588 23,188 23,626
------- ------- ------- -------
Gross profit 7,542 8,320 14,038 16,357
Operating expenses:
Sales and marketing 1,445 1,668 2,729 3,036
General and administrative 3,744 3,344 7,817 6,788
------- ------- ------- -------
Total operating expenses 5,189 5,012 10,546 9,824
------- ------- ------- -------
Operating income 2,353 3,308 3,492 6,533
Interest income, net 56 48 118 93
Other 70 18 79 57
------- ------- ------- -------
Income before taxes 2,479 3,374 3,689 6,683
Provision for income taxes 1,029 1,262 1,484 2,500
------- ------- ------- -------
Net income $1,450 $2,112 $2,205 $4,183
======= ======= ======= =======
Basic earnings per share $0.14 $0.20 $0.21 $0.40
======= ======= ======= =======
Diluted earnings per share $0.14 $0.20 $0.21 $0.40
======= ======= ======= =======
Weighted average
shares outstanding:
Basic 10,490 10,488 10,490 10,488
Diluted 10,532 10,544 10,529 10,556
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Balance Sheets
(in thousands)
June 30, Dec. 31,
2004 2003
------- -------
ASSETS
Current assets:
Cash and cash equivalents $10,972 $9,473
Accounts receivable, net of allowance for doubtful
accounts of $1,025 and $904 respectively 10,552 11,917
Financing receivables, current portion 987 1,113
Inventory 1,233 1,102
Deferred tax assets 1,181 973
Prepaid expenses 274 364
Prepaid income taxes -- 120
------- -------
Total current assets 25,199 25,062
Financing receivables, long-term 1,132 794
Property and equipment 10,440 9,909
Accumulated depreciation (5,275) (4,561)
------- -------
Total assets $31,496 $31,204
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,078 $1,126
Deferred revenue 1,620 1,634
Accrued vacation 1,651 1,562
Other accrued liabilities 931 1,130
Income taxes payable 420 --
------- -------
Total current liabilities 5,700 5,452
Deferred tax liabilities 329 --
Stockholders' equity:
Common stock, par value $0.001 per share,
30,000,000 shares authorized, 10,489,849
shares issued and outstanding 10 10
Additional paid-in capital 17,292 17,290
Deferred compensation (148) (174)
Retained earnings 8,313 8,626
------- -------
Total stockholders' equity 25,467 25,752
------- -------
Total liabilities and stockholders' equity $31,496 $31,204
======= =======
CONTACT: Computer Programs and Systems Inc., Mobile
M. Stephen Walker, 251-639-8100
SOURCE: Computer Programs and Systems Inc.
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