Press Release
CPSI Announces Fourth Quarter and Year-End 2015 Results and 2016 Guidance
Highlights:
2015 Results:
- Revenues of $44.2 million for the fourth quarter and $182.2 million for the year;
- Earnings per diluted share of $0.30 for the quarter and $1.62 for the year;
- Cash provided by operations of $4.6 million for the quarter and $30.9 million for the year;
- Quarterly dividend of $0.64 per share; and
-
Announced agreement to acquire
Healthland Holding Inc. and its affiliates.
2016 Guidance:
-
Anticipated revenues of $307 million to
$322 million ; -
Anticipated adjusted EBITDA of
$86 million to $91 million ; and -
Anticipated non-GAAP earnings per share of
$3.47 to $3 .64 per diluted share.
The Company also announced a quarterly cash dividend of $0.64 per share,
payable on
Total revenues for the fourth quarter ended December 31, 2015,
were $44.2 million, compared with total revenues of $46.3 million for
the prior-year fourth quarter. Net income for the quarter ended December
31, 2015, was $3.4 million, or $0.30 per diluted share, compared
with $6.7 million, or $0.60 per diluted share, for the quarter ended
Total revenues for the year ended December 31, 2015, were $182.2
million, compared with total revenues of $204.7 million for the prior
year. Net income for the year ended December 31, 2015, was $18.3
million, or $1.62 per diluted share, compared with $32.9 million,
or $2.94 per diluted share, for the year ended December 31, 2014. Cash
provided by operations for 2015 was $30.9 million, compared
with $38.9 million for the prior year. Cash collections for 2015
were $187.2 million, compared with cash collections of $207.1
million for the prior year. In addition to the aforementioned
“We are pleased to have concluded our acquisition of Healthland and its
subsidiaries, American HealthTech and Rycan,” said
For 2016, the Company anticipates total revenues of $307 million to
“The recent acquisition of Healthland and its subsidiaries has broadened
our business, resulting in more diverse revenue opportunities and a more
complex cost and debt structure,” said
CPSI will hold a live webcast to discuss fourth quarter and year-end
2015 results today,
About CPSI
CPSI is a leading provider of healthcare IT solutions and services for
community hospitals and post-acute care facilities. Founded in 1979,
CPSI is the parent of five companies –
Forward-Looking Statements
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; our ability
to successfully integrate the businesses of Healthland, American
HealthTech and Rycan with our business; government regulation of the
healthcare and health insurance industries; government regulation of our
products and customers, including changes in healthcare policy affecting
COMPUTER PROGRAMS AND SYSTEMS, INC. | ||||||||||||||||||
Unaudited Condensed Consolidated Statements of Income | ||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Sales revenues: | ||||||||||||||||||
System sales | $ | 9,069 | $ | 13,226 | $ | 42,994 | $ | 75,099 | ||||||||||
Support and maintenance | 19,295 | 18,610 | 75,392 | 73,553 | ||||||||||||||
Business management, consulting and managed IT services |
15,866 | 14,431 | 63,788 | 56,090 | ||||||||||||||
Total sales revenues |
|
44,230 |
|
46,267 |
|
182,174 |
|
204,742 |
||||||||||
Cost of sales: | ||||||||||||||||||
System sales | 9,338 | 11,047 | 39,515 | 44,620 | ||||||||||||||
Support and maintenance | 6,558 | 7,125 | 27,214 | 29,080 | ||||||||||||||
Business management, consulting and managed IT services |
10,819 | 8,993 | 41,337 | 37,066 | ||||||||||||||
Total cost of sales | 26,715 | 27,165 | 108,066 | 110,766 | ||||||||||||||
Gross profit | 17,515 | 19,102 | 74,108 | 93,976 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Sales and marketing | 2,906 | 3,211 | 12,212 | 14,370 | ||||||||||||||
General and administrative | 10,004 | 6,549 | 36,810 | 30,019 | ||||||||||||||
Total operating expenses | 12,910 | 9,760 | 49,022 | 44,389 | ||||||||||||||
Operating income | 4,605 | 9,342 | 25,086 | 49,587 | ||||||||||||||
Other income | 70 | 71 | 405 | 152 | ||||||||||||||
Income before taxes | 4,675 | 9,413 | 25,491 | 49,739 | ||||||||||||||
Provision for income taxes | 1,282 | 2,669 | 7,148 | 16,819 | ||||||||||||||
Net income | 3,393 | 6,744 | 18,343 | 32,920 | ||||||||||||||
Less: Net income attributable to participating securities (unvested restricted stock) | (57 | ) | (96 | ) | (374 | ) | (499 | ) | ||||||||||
Net income attributable to common stockholders | $ | 3,336 | $ | 6,648 | $ | 17,969 | $ | 32,421 | ||||||||||
Basic and diluted earnings per share | $ | 0.30 | $ | 0.60 | $ | 1.62 | $ | 2.94 | ||||||||||
Weighted average shares outstanding used in basic per common share computations | 11,110 | 11,048 | 11,083 | 11,026 | ||||||||||||||
Weighted average shares outstanding used in diluted per common share computations | 11,169 | 11,050 | 11,136 | 11,026 | ||||||||||||||
COMPUTER PROGRAMS AND SYSTEMS, INC. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands, except per share data) |
||||||||||
Dec. 31,
2015 |
Dec. 31,
2014 |
|||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 24,951 | $ | 23,792 | ||||||
Investments | 10,824 | 10,703 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $1,216 and $1,253, respectively |
22,594 | 23,102 | ||||||||
Financing receivables, current portion, net | 10,576 | 18,112 | ||||||||
Inventories | 1,495 | 1,431 | ||||||||
Deferred tax assets | 2,335 | 2,319 | ||||||||
Prepaid income taxes | 427 | 1,120 | ||||||||
Prepaid expenses and other | 1,356 | 937 | ||||||||
Total current assets | 74,558 | 81,516 | ||||||||
Property and equipment, net | 14,351 | 17,039 | ||||||||
Financing receivables, net of current portion | 1,569 | 770 | ||||||||
Deferred tax assets | 2,310 | - | ||||||||
Total assets | $ | 92,788 | $ | 99,325 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 4,591 | $ | 3,990 | ||||||
Deferred revenue | 3,821 | 5,891 | ||||||||
Accrued vacation | 3,412 | 3,931 | ||||||||
Other accrued liabilities | 5,598 | 4,349 | ||||||||
Total current liabilities | 17,422 | 18,161 | ||||||||
Deferred tax liabilities | - | 383 | ||||||||
Stockholders’ equity: | ||||||||||
Common stock, par value $0.001 per share, 30,000 shares authorized, 11,303 and 11,209 shares issued and outstanding | 11 | 11 | ||||||||
Additional paid-in capital | 44,187 | 38,983 | ||||||||
Accumulated other comprehensive loss | (38 | ) | (19 | ) | ||||||
Retained earnings | 31,206 | 41,806 | ||||||||
Total stockholders’ equity | 75,366 | 80,781 | ||||||||
Total liabilities and stockholders’ equity | $ | 92,788 | $ | 99,325 | ||||||
COMPUTER PROGRAMS AND SYSTEMS, INC. | ||||||||||||||||||
Unaudited Other Supplemental Information | ||||||||||||||||||
(In thousands) |
||||||||||||||||||
The following table summarizes cash flow and free cash flow for the Company: |
||||||||||||||||||
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Cash Flow Information | ||||||||||||||||||
Net cash provided by operating activities | $ | 4,551 | $ | 12,880 | $ | 30,876 | $ | 38,949 | ||||||||||
Net cash used in investing activities | (33 | ) | (753 | ) | (598 | ) | (1,523 | ) | ||||||||||
Net cash used in financing activities | (7,199 | ) | (6,342 | ) | (29,119 | ) | (25,363 | ) | ||||||||||
Free Cash Flow | ||||||||||||||||||
Net cash provided by operating activities | $ | 4,551 | $ | 12,880 | $ | 30,876 | $ | 38,949 | ||||||||||
Less: Purchases of capital assets |
- |
(722 |
) |
(447 |
) |
(1,473 |
) | |||||||||||
Free cash flow | $ | 4,551 | $ | 12,158 | $ | 30,429 | $ | 37,476 | ||||||||||
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160128006418/en/
Source:
Computer Programs and Systems, Inc.
Boyd Douglas, 251-639-8100
President
and Chief Executive Officer