These decisions build on a multi-year evolution of the Company’s capital allocation strategy that is now prioritizing flexibility to allow for more opportunistic uses of capital. By successfully reducing the Company’s leverage and refinancing its credit facility to achieve more favorable terms, the targeted flexibility has now been achieved. Coupled with operations that, even in the midst of the COVID-19 pandemic, continue to generate significant levels of cash flow, the Company is well-positioned to deploy capital in a manner aimed at maximizing long-term stockholder value.
Commenting on the announcement,
Douglas continued, “We are unwavering in our confidence in the potential long-term growth for CPSI, a confidence rooted in the continued progress towards converting our EHR revenue to a subscription model, a greater than
To facilitate repurchases of the Company’s common stock pursuant to the above mentioned stock repurchase program, the Board also authorized management to enter into a trading plan with
Repurchases not made pursuant to the Rule 10b5-1 Plan may be made at management’s discretion, subject to the securities laws and blackout periods imposed by the Company's insider trading policy, at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of shares of common stock, general market conditions, the trading price of the common stock, alternative uses for capital, the Company’s financial performance and other factors. Open market purchases will be conducted in a manner intended to satisfy the requirements of, and in accordance with the limitations set forth in, Rule 10b-18 under the Exchange Act and other applicable legal requirements.
The Company expects to finance any repurchases from a combination of cash on hand and cash provided by operating activities, with the Company’s remaining borrowing capacity under its revolving credit facility providing ample opportunity to pursue M&A activity to further enhance its product and service offerings. The stock repurchase program does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time. Information regarding stock repurchases will be available in the Company’s periodic reports filed with the
CPSI is a leading provider of healthcare solutions and services for community hospitals, their clinics and post-acute care facilities. Founded in 1979, CPSI is the parent of four companies –
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 the Company’s strategy and outlook, including the number of shares of common stock to be repurchased by the Company, if any, and that the Company’s repurchase of its shares of common stock and pursuit of more opportunistic uses of capital will benefit the Company and its stockholders, 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: the Company’s ability to successfully execute its stock repurchase program, including the availability of financing for such repurchases; the Company’s ability to successfully pursue mergers and acquisitions that strengthen the Company’s market position and enhance the Company’s product and service offerings, including the availability of financing for such M&A activity; the impact of COVID-19 and related economic disruptions which have materially affected the Company’s revenue and could materially affect the Company’s gross margin and income, as well as the Company’s financial position and/or liquidity; actions to be taken by the Company in response to the pandemic; the legal, regulatory and administrative developments that occur at the federal, state and local levels; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of the Company’s or its partners’ information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information or inability to provide patient care because of system unavailability; changes in revenues due to declining hospital demand and deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients); potential increased expenses related to labor or other expenditures; and the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms or at all, as well as risks associated with disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact us from a financial perspective. Numerous other risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. Such factors include risk factors described from time to time in CPSI’s public releases and reports filed with the
Chief Marketing Officer