FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 22, 2003
COMPUTER PROGRAMS AND SYSTEMS, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 000-49796 74-3032373
(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
6600 Wall Street, 36695
Mobile, Alabama (Zip Code)
(Address of Principal Executive Offices)
(251) 639-8100
(Registrant's telephone number, including area code)
|
N/A
(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit Number Exhibit
99.1 Press Release dated April 22, 2003
|
Item 9. Regulation FD Disclosure/Results of Operations and Financial Condition.
On April 22, 2003, Computer Programs and Systems, Inc. ("CPSI") issued a press release announcing financial information for its fiscal first quarter ended March 31, 2003. The press release is attached as Exhibit 99.1 to this Form 8-K and is furnished to, but not filed with, the Commission. This information is provided under Item 12 of Form 8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COMPUTER PROGRAMS AND
SYSTEMS, INC.
By: /s/ David A. Dye
------------------
David A. Dye
President and Chief Executive Officer
Dated: April 22, 2003
|
INDEX TO EXHIBITS
Exhibit Number Exhibit -------------- ------- 99.1 Press Release dated April 22, 2003 * |
* This exhibit is furnished to, but not filed with, the Commission by inclusion herein.
Exhibit 99.1
Computer Programs and Systems, Inc. Announces First Quarter Results; Company Announces Initial Cash Dividend of $0.085 Per Share
MOBILE, Ala.--(BUSINESS WIRE)--April 22, 2003--Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI):
First Quarter Highlights:
-- Board of Directors Declares Cash Dividend
-- Revenue Increased 18.6%
-- Third Consecutive Quarter of Record Cash Collections
-- Release of Computerized Physician Order Entry (CPOE)
Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading
provider of healthcare information solutions, today announced results
for the first quarter ended March 31, 2003. In addition, the Board of
Directors has approved the commencement of a quarterly dividend and
declared a first quarter cash dividend of $0.085 (eight and one-half
cents) per share, payable May 26, 2003, to shareholders of record as
of the close of business on May 9, 2003.
Commenting on the results, David Dye, chief executive officer and
president of CPSI, said, "We are pleased with our strong financial
results and the continued demand from community hospitals for our
integrated information system solution and complementary services."
Total revenues for the first quarter ended March 31, 2003,
increased 18.6% to $20.1 million compared with total revenues of $16.9
million for the prior year. Net income for the quarter ended March 31,
2003, totaled $2.1 million, or $0.20 per diluted share, compared with
pro forma net income of $1.8 million, or $0.19 per diluted share, for
the prior year, representing increases of 15.7% and 5.3%,
respectively.
Pro forma adjustments reflect the provision for income taxes as if
the Company had been taxed as a C corporation for all periods
presented. Excluding pro forma adjustments, net income before taxes
for the first quarter ended March 31, 2003, was $3.3 million compared
with net income before taxes of $2.9 million for the prior year.
Commenting on CPSI's decision to begin paying dividends, Mr. Dye
continued, "Our management believes that the payment of cash dividends
is the best way to use our excess cash to enhance stockholder value.
CPSI has no debt, and we expect to continue to generate positive free
cash flow going forward. As a result, we believe that CPSI will have
adequate cash available to fund the continued growth of our business.
We are also in the process of evaluating the implementation of a
dividend reinvestment plan as part of our intent to declare dividends
going forward."
The Company reported that future dividend declarations are
expected, but will be made at the discretion of the Board of Directors
based on the Company's earnings, financial condition, cash
requirements and other factors.
In closing, Mr. Dye added, "We are excited about our ongoing
software development efforts, as we recently released our Computerized
Physician Order Entry component, and we continue with field clinical
trials of our Picture Archiving and Communication System, scheduled
for release by the end of 2003. Additionally, our future prospects
remain strong, evidenced by the fact that our active sales pipeline
continues to steadily increase. However, we have seen a slight
lengthening in the sales cycle, as hospitals in general are taking
more time to evaluate information technology decisions. Our backlog as
of March 31, 2003, was $57.6 million, comprised of approximately $16.9
million relating to non-recurring system purchases and approximately
$40.7 million related to recurring payments under support,
outsourcing, ASP and ISP contracts. Currently, we anticipate reporting
total revenues in the range of $19.5 to $20.5 million and net income
of approximately $2.1 to $2.3 million, or $0.20 to $0.22 per diluted
share, for the second quarter of 2003."
A listen-only simulcast and replay of CPSI's third quarter
conference call will be available on-line at www.cpsinet.com and
www.companyboardroom.com on April 23, 2003, 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
and has more than 450 hospital clients 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. The Company's 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
March 31,
2003 2002
------- -------
Sales revenues:
Systems sales $10,103 $ 8,800
Support and maintenance 8,298 7,090
Outsourcing 1,674 1,031
------- -------
Total sales revenues 20,075 16,921
Cost of sales:
Systems sales 7,133 6,047
Support and maintenance 3,911 3,231
Outsourcing 995 624
------- -------
Total cost of sales 12,039 9,902
------- -------
Gross profit 8,036 7,019
Operating expenses:
Sales and marketing 1,368 1,346
General and administrative 3,444 2,874
------- -------
Total operating expenses 4,812 4,220
------- -------
Operating income 3,224 2,799
Interest income, net 45 28
Other 40 45
------- -------
Net income before taxes 3,309 2,872
Provision for income taxes 1,238 --
------- -------
Net income $ 2,071 $ 2,872
======= =======
Basic earnings per share $ 0.20
=======
Diluted earnings per share $ 0.20
=======
Pro Forma Income Data:
Net income before taxes as reported $ 2,872
Pro forma provision for income taxes 1,082
-------
Pro forma net income $ 1,790
=======
Pro forma basic earnings per share $ 0.19
=======
Pro forma diluted earnings per share $ 0.19
=======
Weighted average shares outstanding:
Basic 10,488 9,288
Diluted 10,569 9,288
|
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Balance Sheets
(in thousands)
March 31, Dec. 31,
2003 2002
------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 7,347 $ 6,352
Accounts receivable, net of allowance for
doubtful accounts of $792 and $768 respectively 12,490 12,599
Financing receivables, current portion 1,120 1,341
Inventory 1,434 1,615
Deferred tax asset 1,048 1,006
Prepaid expenses 200 328
------- -------
Total current assets 23,639 23,241
Financing receivables, long-term 728 841
Property and equipment 8,801 8,216
Accumulated depreciation (3,698) (3,389)
------- -------
Total assets $29,470 $28,909
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,272 $ 2,094
Deferred revenue 1,551 2,348
Sales and use tax payable 1,000 1,258
Accrued vacation 1,396 1,317
Accrued stockholders' distribution 250 250
Other accrued liabilities 429 969
Income taxes payable 1,009 194
------- -------
Total current liabilities 6,907 8,430
Stockholders' equity:
Common stock, par value $0.001 per share,
30,000,000 shares authorized, 10,488,000
shares issued and outstanding 10 10
Paid-in capital 17,259 17,259
Deferred compensation (212) (225)
Retained earnings 5,506 3,435
------- -------
Total stockholders' equity 22,563 20,479
------- -------
Total liabilities and stockholders' equity $29,470 $28,909
======= =======
CONTACT: Computer Programs and Systems, Inc.
M. Stephen Walker, 251/639-8100
|