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): October 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)
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Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit Number Exhibit
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99.1 Press Release dated October 22, 2003
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Item 12. Results of Operations and Financial Condition.
On October 22, 2003, Computer Programs and Systems, Inc. ("CPSI") issued a press release announcing financial information for its fiscal third quarter ended September 30, 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.
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: October 22, 2003
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INDEX TO EXHIBITS
Exhibit Number Exhibit -------------- ------- 99.1 Press Release dated October 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 Third Quarter Results
MOBILE, Ala.--(BUSINESS WIRE)--Oct. 22, 2003--Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI):
Highlights:
-- Revenues increased 3.7% to $19.6 million;
-- Cash collections of $20.7 million;
-- Positive free cash flow of $2.4 million;
-- PACS rollout slated for fourth quarter; and
-- Signed nine new contracts.
Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading
provider of healthcare information solutions, today announced results
for the third quarter and nine months ended September 30, 2003.
According to David Dye, chief executive officer and president of
CPSI, "Our third quarter revenue and income results, which were in
line with our guidance, reflect the fact that the community hospital
marketplace is in the midst of a difficult reimbursement environment.
While we do not know when this trend will improve, our company remains
confident of its future prospects. CPSI continues to generate profits
and positive cash flow while maintaining no debt. We also sense an
increasing realization among hospital management that investment in
integrated information technology solutions will become imperative in
the future in order to remain competitive."
Total revenues for the third quarter ended September 30, 2003,
increased 3.7% to $19.6 million compared with total revenues of $18.9
million for the prior year. Net income for the quarter ended September
30, 2003, was $1.5 million, or $0.14 per diluted share, compared with
net income of $2.1 million, or $0.20 per diluted share, for the prior
year, representing decreases of 29.7% and 30.0%, respectively.
Total revenues for the nine months ended September 30, 2003,
increased 11.7% to $59.6 million compared with total revenues of $53.3
million for the prior year. Net income for the nine-month period was
$5.6 million, or $0.54 per diluted share, compared with pro forma net
income of $5.7 million, or $0.57 per diluted share, for the prior
year. 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 nine months ended September 30, 2002 and 2003, was $9.0
million.
Mr. Dye continued, "During the third quarter, we added nine new
facilities to our client base, bringing the total number of clients
added during the first nine months of 2003 to 36 and increasing our
customer base to 479 clients as of the end of the third quarter. Our
twelve-month backlog as of September 30, 2003, was $60.4 million,
consisting of $16.8 million in non-recurring system purchases and
$43.6 million in recurring payments in support, outsourcing, ASP and
ISP contracts. For the fourth quarter of 2003, we anticipate total
revenues of $21 to $22 million and net income of approximately $2.1 to
$2.3 million, or $0.20 to $0.22 per diluted share."
In closing, Mr. Dye said, "We are particularly excited about the
anticipated installation of our Picture Archiving and Communication
System (PACS) solution, Imagelink, at up to three facilities in the
fourth quarter. With the addition of Imagelink to CPSI's other
clinical, financial and patient accounting applications, we firmly
believe that our company continues to provide community hospitals with
the most comprehensive integrated hospital information system in the
industry."
A listen-only simulcast and replay of CPSI's third quarter
conference call will be available on-line at www.cpsinet.com and
www.fulldisclosure.com on October 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 with approximately 480 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 provide 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 Nine Months Ended
September 30, September 30,
---------------- -----------------
2003 2002 2003 2002
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Sales revenues:
System sales $9,082 $9,936 $28,822 $27,650
Support and maintenance 8,718 7,617 25,467 22,084
Outsourcing 1,791 1,344 5,285 3,595
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Total sales revenues 19,591 18,897 59,574 53,329
Cost of sales:
System sales 7,171 6,545 20,804 18,905
Support and maintenance 4,010 3,578 11,939 10,085
Outsourcing 1,091 868 3,155 2,216
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Total cost of sales 12,272 10,991 35,898 31,206
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Gross profit 7,319 7,906 23,676 22,123
Operating expenses:
Sales and marketing 1,480 1,660 4,516 4,333
General and administrative 3,561 3,204 10,349 9,187
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Total operating expenses 5,041 4,864 14,865 13,520
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Operating income 2,278 3,042 8,811 8,603
Interest income, net 60 64 153 134
Other 3 117 60 226
------- ------- ------- -------
Net income before taxes 2,341 3,223 9,024 8,963
Provision for income taxes 880 1,146 3,380 698
------- ------- ------- -------
Net income $1,461 $2,077 $5,644 $8,265
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Basic earnings per share $0.14 $0.20 $0.54 $0.84
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Diluted earnings per share $0.14 $0.20 $0.54 $0.83
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Pro Forma Income Data:
Net income before taxes as reported $8,963
Pro forma provision for income taxes 3,304
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Pro forma net income $5,659
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Pro forma basic earnings per share $0.57
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Pro forma diluted earnings per share $0.57
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Weighted average shares outstanding:
Basic 10,488 10,488 10,488 9,868
Diluted 10,525 10,589 10,546 9,907
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COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
2003 2002
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ASSETS
Current assets:
Cash and cash equivalents $9,930 $6,352
Accounts receivable, net of allowance for doubtful
accounts of $788 and $768 respectively 10,387 12,599
Financing receivables, current portion 1,040 1,341
Inventory 1,460 1,615
Deferred tax assets 934 1,006
Prepaid expenses 496 328
Prepaid income taxes 184 --
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Total current assets 24,431 23,241
Financing receivables, long-term 847 841
Property and equipment 9,570 8,216
Accumulated depreciation (4,099) (3,389)
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Total assets $30,749 $28,909
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,122 $2,094
Deferred revenue 2,583 2,348
Sales and use taxes payable 139 1,258
Accrued vacation 1,618 1,317
Other accrued liabilities 909 1,219
Income taxes payable -- 194
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Total current liabilities 6,371 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
Additional paid-in capital 17,259 17,259
Deferred compensation (187) (225)
Retained earnings 7,296 3,435
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Total stockholders' equity 24,378 20,479
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Total liabilities and stockholders' equity $30,749 $28,909
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CONTACT: Computer Programs and Systems, Inc., Mobile M. Stephen Walker, 251-639-8100