MOBILE, Ala.–(BUSINESS WIRE)–CPSI (NASDAQ: CPSI), a healthcare solutions company, today announced results for the fourth quarter and year ended 31 Dicembre 2022. Highlights include:
- Fourth quarter 2022 TruBridge revenue cycle management (RCM) revenue grew by 29% compared to fourth quarter 2021, now representing 98% recurring revenue and 55% of CPSI’s total revenue
- Continued success in both winning new clients and cross-selling RCM solution
- Full year 2023 revenue guidance between $340 million and $350 million
“2022 was an important building year for CPSI as we worked to leverage the well-established organization to drive innovation and growth for the years ahead,” said Chris Fowler, chief executive officer of CPSI. “Our full year results were driven in large part by the success of our TruBridge RCM business as we converted existing customers and focused on adding new, small- and mid-sized hospitals looking to simplify their revenue cycle needs. We also focused on strengthening our customer relationships, which translated to continued stability in our retention rate of over 95%. During the second half of the year, we expanded our leadership team, deepening our expertise and ensuring we are best positioned to execute and seize the growth opportunities ahead of us.”
Fourth Quarter 2022
All comparisons are to the quarter ended 31 Dicembre 2021, unless otherwise noted.
- Bookings of $24.7 million compared to $15.6 million
-
Revenue of $83.2 million compared to $74.0 million
- TruBridge RCM revenue of $45.7 million represented 55% of CPSI’s total revenue, an increase of 29%
- GAAP net income of $2.5 million and non-GAAP net income of $8.7 million
- GAAP earnings per diluted share of $0.17 and non-GAAP earnings per diluted share of $0.61
- Adjusted EBITDA of $13.2 million compared to $14.3 million
Full Year 2022
All comparisons are to the year ended 31 Dicembre 2021, unless otherwise noted.
- Bookings of $89.4 million compared to $70.2 million
-
Revenue of $326.6 million compared to $280.6 million
- TruBridge RCM revenue of $179.9 million represented 55% of CPSI’s total revenue, an increase of 37%
- GAAP net income of $15.9 million and non-GAAP net income of $37.0 million
- GAAP earnings per diluted share of $1.08 and non-GAAP earnings per diluted share of $2.58
- Adjusted EBITDA of $55.9 million compared to $52.7 million
- Net debt of $132.6 million
2023 Outlook
For full year 2023, the Company is providing an initial outlook of:
- Revenue in the range of $340 million to $350 million
- GAAP net income in the range of $11 million to $15 million
- Adjusted EBITDA in the range of $59 million to $63 million
Conference Call Information
CPSI will hold a live webcast to discuss fourth quarter and full year 2022 results today, Tuesday, 14 Febbraio 2023, at 4:30 p.m. Eastern time. A 30-day online replay will be available approximately one hour following the conclusion of the live webcast. To listen to the live webcast or access the replay, visit the Company’s website, www.cpsi.com.
About CPSI
CPSI is a leading provider of healthcare solutions and services for community hospitals, their clinics and other healthcare systems. Founded in 1979, CPSI is the parent of six companies – Evident, LLC, American HealthTech, Inc., TruBridge, LLC, iNetXperts, Corp. d/b/a Get Real Health, TruCode LLC, and Healthcare Resource Group, Inc. Our combined companies are focused on helping improve the health of the communities we serve, connecting communities for a better patient care experience, and improving the financial operations of our customers. Evident provides comprehensive acute care EHR solutions for community hospitals and their affiliated clinics. American HealthTech is one of the nation’s largest providers of post-acute care EHR solutions and services for post-acute care facilities. TruBridge focuses on providing business, consulting and managed IT services, along with its complete RCM solution, for all care settings. Get Real Health focuses on solutions aimed at improving patient engagement for individuals and healthcare providers. TruCode provides medical coding software that enables complete and accurate code assignment for optimal reimbursement. HRG provides specialized RCM solutions for facilities of all sizes. For more information, visit www.cpsi.com.
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 the Company’s future financial and operational 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: the impact of the ongoing COVID-19 pandemic and related economic disruptions which have materially affected CPSI’s revenue and could materially affect CPSI’s gross margin and income, as well as CPSI’s financial position and/or liquidity; federal, state and local government actions to address and contain the impact of COVID-19 and their impact on us and our hospital clients; operational disruptions and heightened cybersecurity risks due to a significant percentage of our workforce working remotely; saturation of our target market and hospital consolidations; unfavorable economic or market conditions that may cause a decline in spending for information technology and services; significant legislative and regulatory uncertainty in the healthcare industry; exposure to liability for failure to comply with regulatory requirements; competition with companies that have greater financial, technical and marketing resources than we have; potential future acquisitions that may be expensive, time consuming, and subject to other inherent risks; our ability to attract and retain qualified client service and support personnel; disruption from periodic restructuring of our sales force; potential inability to properly manage growth in new markets we may enter; exposure to numerous and often conflicting laws, regulations, policies, standards or other requirements through our international business activities; potential litigation against us; our reliance on an international workforce which exposes us to various business disruptions; potential failure to develop new products or enhance current products that keep pace with market demands; failure to develop new technology and products in response to market demands; failure of our products to function properly resulting in claims for medical and other losses; breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; failure to maintain customer satisfaction through new product releases free of undetected errors or problems; failure to convince customers to migrate to current or future releases of our products; failure to maintain our margins and service rates; increase in the percentage of total revenues represented by service revenues, which have lower gross margins; exposure to liability in the event we provide inaccurate claims data to payors; exposure to liability claims arising out of the licensing of our software and provision of services; dependence on licenses of rights, products and services from third parties; misappropriation of our intellectual property rights and potential intellectual property claims and litigation against us; interruptions in our power supply and/or telecommunications capabilities, including those caused by natural disaster; general economic conditions, including changes in the financial and credit markets that may affect the availability and cost of credit to us or our customers; potential inability to secure additional financing on favorable terms to meet our future capital needs; our substantial indebtedness, and our ability to incur additional indebtedness in the future; pressures on cash flow to service our outstanding debt; restrictive terms of our credit agreement on our current and future operations; changes in and interpretations of financial accounting matters that govern the measurement of our performance; significant charges to earnings if our goodwill or intangible assets become impaired; fluctuations in quarterly financial performance due to, among other factors, timing of customer installations; volatility in our stock price; failure to maintain effective internal control over financial reporting; lack of employment or non-competition agreement with most of our key personnel; inherent limitations in our internal control over financial reporting; vulnerability to significant damage from natural disasters; market risks related to interest rate changes; 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 most recent Annual Report on Form 10-K. Relative to our dividend policy, the payment of cash dividends is subject to the discretion of our Board of Directors and will be determined in light of then-current conditions, including our earnings, our leverage, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our Board of Directors. In the future, our Board of Directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions. 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. |
|||||||||||||||
|
Condensed Consolidated Statements of Income |
|||||||||||||||
|
(In ‘000s, except per share data) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
| Sales revenues: | |||||||||||||||
| Revenue cycle |
$ |
45,670 |
|
$ |
35,491 |
|
$ |
179,870 |
|
$ |
131,242 |
|
|||
| Electronic health record |
|
35,968 |
|
|
35,217 |
|
|
139,823 |
|
|
143,109 |
|
|||
| Patient engagement |
|
1,586 |
|
|
3,293 |
|
|
6,955 |
|
|
6,278 |
|
|||
| Total sales revenues |
|
83,224 |
|
|
74,001 |
|
|
326,648 |
|
|
280,629 |
|
|||
| Costs of sales: | |||||||||||||||
| Revenue cycle |
|
25,941 |
|
|
17,907 |
|
|
97,010 |
|
|
66,015 |
|
|||
| Electronic health record |
|
19,069 |
|
|
18,415 |
|
|
71,347 |
|
|
70,664 |
|
|||
| Patient engagement |
|
1,062 |
|
|
827 |
|
|
3,856 |
|
|
3,068 |
|
|||
| Total costs of sales |
|
46,072 |
|
|
37,149 |
|
|
172,213 |
|
|
139,747 |
|
|||
| Gross profit |
|
37,152 |
|
|
36,852 |
|
|
154,435 |
|
|
140,882 |
|
|||
| Operating expenses: | |||||||||||||||
| Product development |
|
8,890 |
|
|
7,791 |
|
|
30,926 |
|
|
30,389 |
|
|||
| Sales and marketing |
|
4,552 |
|
|
6,164 |
|
|
27,131 |
|
|
21,978 |
|
|||
| General and administrative |
|
14,958 |
|
|
11,700 |
|
|
56,192 |
|
|
50,022 |
|
|||
| Amortization of acquisition-related intangibles |
|
4,486 |
|
|
3,672 |
|
|
17,403 |
|
|
13,786 |
|
|||
| Total operating expenses |
|
32,886 |
|
|
29,327 |
|
|
131,652 |
|
|
116,175 |
|
|||
| Operating income |
|
4,266 |
|
|
7,525 |
|
|
22,783 |
|
|
24,707 |
|
|||
| Other income (expense): | |||||||||||||||
| Other income |
|
264 |
|
|
368 |
|
|
1,178 |
|
|
1,529 |
|
|||
| (Loss) gain on contingent consideration |
|
(427 |
) |
|
– |
|
|
565 |
|
|
– |
|
|||
| Loss on extinguishment of debt |
|
– |
|
|
– |
|
|
(125 |
) |
|
– |
|
|||
| Interest expense |
|
(2,276 |
) |
|
(911 |
) |
|
(6,320 |
) |
|
(3,160 |
) |
|||
| Total other income (expense) |
|
(2,439 |
) |
|
(543 |
) |
|
(4,702 |
) |
|
(1,631 |
) |
|||
| Income before taxes |
|
1,827 |
|
|
6,982 |
|
|
18,081 |
|
|
23,076 |
|
|||
| Provision for income taxes |
|
(690 |
) |
|
1,581 |
|
|
2,214 |
|
|
4,646 |
|
|||
| Net income |
$ |
2,517 |
|
$ |
5,401 |
|
$ |
15,867 |
|
$ |
18,430 |
|
|||
| Net income per common share—basic |
$ |
0.17 |
|
$ |
0.37 |
|
$ |
1.08 |
|
$ |
1.26 |
|
|||
| Net income per common share—diluted |
$ |
0.17 |
|
$ |
0.37 |
|
$ |
1.08 |
|
$ |
1.26 |
|
|||
| Weighted average shares outstanding used in per common share computations: | |||||||||||||||
| Basic |
|
14,210 |
|
|
14,332 |
|
|
14,356 |
|
|
14,290 |
|
|||
| Diluted |
|
14,210 |
|
|
14,362 |
|
|
14,356 |
|
|
14,318 |
|
|||
|
Computer Programs and Systems, Inc. |
|||||||
|
Condensed Consolidated Balance Sheets |
|||||||
|
(In ‘000s, except per share data) |
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|
|
|
|
|
||||
|
|
31 Dicembre 2022 (unaudited) |
|
31 Dicembre 2021 (unaudited) |
||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents |
$ |
6,951 |
|
$ |
11,431 |
|
|
| Accounts receivable, net of allowance for doubtful accounts of $2,854 and $1,826, respectively |
|
51,311 |
|
|
34,431 |
|
|
| Financing receivables, current portion, net |
|
4,474 |
|
|
6,488 |
|
|
| Inventories |
|
784 |
|
|
855 |
|
|
| Prepaid income taxes |
|
701 |
|
|
4,599 |
|
|
| Prepaid expenses and other |
|
10,338 |
|
|
11,194 |
|
|
| Total current assets |
|
74,559 |
|
|
68,998 |
|
|
| Property & equipment, net |
|
9,884 |
|
|
11,590 |
|
|
| Software development costs, net |
|
27,257 |
|
|
11,644 |
|
|
| Operating lease assets |
|
7,567 |
|
|
7,097 |
|
|
| Financing receivables, net of current portion |
|
3,312 |
|
|
7,231 |
|
|
| Other assets, net of current portion |
|
8,131 |
|
|
3,874 |
|
|
| Intangible assets, net |
|
102,000 |
|
|
95,203 |
|
|
| Goodwill |
|
198,253 |
|
|
177,713 |
|
|
| Total assets |
$ |
430,963 |
|
$ |
383,350 |
|
|
| Liabilities & Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable |
$ |
7,035 |
|
$ |
8,079 |
|
|
| Current portion of long-term debt |
|
3,141 |
|
|
4,394 |
|
|
| Deferred revenue |
|
11,590 |
|
|
11,529 |
|
|
| Accrued vacation |
|
6,214 |
|
|
5,262 |
|
|
| Other accrued liabilities |
|
16,475 |
|
|
17,163 |
|
|
| Total current liabilities |
|
44,455 |
|
|
46,427 |
|
|
| Long-term debt, less current portion |
|
136,388 |
|
|
94,966 |
|
|
| Operating lease liabilities, net of current portion |
|
5,651 |
|
|
5,505 |
|
|
| Deferred tax liabilities |
|
12,758 |
|
|
13,880 |
|
|
| Total liabilities |
|
199,252 |
|
|
160,778 |
|
|
| Stockholders’ Equity | |||||||
| Common stock, $0.001 par value; 30,000 shares authorized; 14,913 and 14,734 shares issued |
|
15 |
|
|
15 |
|
|
| Treasury stock, 354 and 89 shares |
|
(14,500 |
) |
|
(2,576 |
) |
|
| Additional paid-in capital |
|
192,275 |
|
|
187,079 |
|
|
| Retained earnings |
|
53,921 |
|
|
38,054 |
|
|
| Total stockholders’ equity |
|
231,711 |
|
|
222,572 |
|
|
| Total liabilities and stockholders’ equity |
$ |
430,963 |
|
$ |
383,350 |
|
|
|
Computer Programs and Systems, Inc. |
|||||||
|
Condensed Consolidated Statements of Cash Flows |
|||||||
|
(In ‘000s) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
|
|
||||
|
|
Twelve Months Ended December 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
| Operating activities: | |||||||
| Net income |
$ |
15,867 |
|
$ |
18,430 |
|
|
| Adjustments to net income: | |||||||
| Provision for bad debt |
|
992 |
|
|
2,592 |
|
|
| Deferred taxes |
|
(6,688 |
) |
|
3,502 |
|
|
| Stock-based compensation |
|
5,173 |
|
|
5,457 |
|
|
| Depreciation |
|
2,443 |
|
|
2,156 |
|
|
| Loss on extinguishment of debt |
|
125 |
|
|
– |
|
|
| Amortization of acquisition-related intangibles |
|
17,403 |
|
|
13,786 |
|
|
| Amortization of software development costs |
|
3,484 |
|
|
931 |
|
|
| Amortization of deferred finance costs |
|
332 |
|
|
293 |
|
|
| Gain on contingent consideration |
|
(565 |
) |
|
– |
|
|
| Loss on disposal of PP&E |
|
– |
|
|
313 |
|
|
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable |
|
(12,428 |
) |
|
(3,204 |
) |
|
| Financing receivables |
|
6,144 |
|
|
8,098 |
|
|
| Inventories |
|
71 |
|
|
229 |
|
|
| Prepaid expenses and other |
|
(2,930 |
) |
|
(3,914 |
) |
|
| Accounts payable |
|
(1,429 |
) |
|
(615 |
) |
|
| Deferred revenue |
|
61 |
|
|
2,099 |
|
|
| Other liabilities |
|
422 |
|
|
401 |
|
|
| Prepaid income taxes |
|
3,898 |
|
|
(2,810 |
) |
|
| Net cash provided by operating activities |
|
32,375 |
|
|
47,744 |
|
|
| Investing activities: | |||||||
| Purchase of business, net of cash received |
|
(43,364 |
) |
|
(59,634 |
) |
|
| Investment in software development |
|
(19,097 |
) |
|
(9,365 |
) |
|
| Purchases of property and equipment |
|
(270 |
) |
|
(920 |
) |
|
| Net cash used in investing activities |
|
(62,731 |
) |
|
(69,919 |
) |
|
| Financing activities: | |||||||
| Treasury stock purchases |
|
(11,924 |
) |
|
(1,315 |
) |
|
| Proceeds from long-term debt |
|
575 |
|
|
– |
|
|
| Payments of long-term debt principal |
|
(3,563 |
) |
|
(3,750 |
) |
|
| Proceeds from revolving line of credit |
|
48,000 |
|
|
61,000 |
|
|
| Payments of revolving line of credit |
|
(5,300 |
) |
|
(35,000 |
) |
|
| Payments of contingent consideration |
|
(1,935 |
) |
|
– |
|
|
| Proceeds from exercise of stock options |
|
23 |
|
|
– |
|
|
| Net cash provided by (used in) financing activities |
|
25,876 |
|
|
20,935 |
|
|
| Net decrease in cash and cash equivalents |
|
(4,480 |
) |
|
(1,240 |
) |
|
| Cash and cash equivalents, beginning of period |
|
11,431 |
|
|
12,671 |
|
|
| Cash and cash equivalents, end of period |
$ |
6,951 |
|
$ |
11,431 |
|
|
|
Computer Programs and Systems, Inc. |
|||||||||||
|
Consolidated Bookings |
|||||||||||
|
(In ‘000s) |
|||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|||||||
|
|
In ‘000s |
12/31/2022 |
12/31/2021 |
|
12/31/2022 |
12/31/2021 |
|||||
| TruBridge(1) |
$ |
13,373 |
$ |
5,084 |
$ |
48,065 |
$ |
20,333 |
|||
| EHR(2) |
|
10,678 |
|
8,232 |
|
38,152 |
|
40,873 |
|||
| Patient Engagement(3) |
|
620 |
|
2,247 |
|
3,188 |
|
9,007 |
|||
| Total |
$ |
24,671 |
$ |
15,563 |
$ |
89,405 |
$ |
70,213 |
|||
|
(1) |
Generally calculated as the total contract price (for non-recurring, project-related amounts) and annualized contract value (for recurring amounts) | ||||||||||
|
(2) |
Generally calculated as the total contract price (for system sales) and annualized contract value (for support). | ||||||||||
|
(3) |
Generally calculated as the total contract value. | ||||||||||
| Computer Programs and Systems, Inc. | |||||||||||
| Bookings Composition | |||||||||||
| (In ‘000s, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||
| 12/31/2022 | 12/31/2021 | 12/31/2022 | 12/31/2021 | ||||||||
| Revenue cycle | |||||||||||
| Net new(1) |
$ |
5,173 |
$ |
681 |
$ |
14,830 |
$ |
6,959 |
|||
| Cross-sell(1) |
|
8,090 |
|
4,079 |
|
29,962 |
|
12,477 |
|||
| TruCode |
|
110 |
|
324 |
|
3,273 |
|
897 |
|||
| Electronic health record | |||||||||||
| Non-subscription sales(2) |
|
4,181 |
|
2,436 |
|
16,870 |
|
12,581 |
|||
| Subscription revenue(3) |
|
5,191 |
|
4,439 |
|
16,698 |
|
23,468 |
|||
| Other |
|
1,306 |
|
1,357 |
|
4,584 |
|
4,824 |
|||
| Patient Engagement |
|
620 |
|
2,247 |
|
3,188 |
|
9,007 |
|||
| Total |
$ |
24,671 |
$ |
15,563 |
$ |
89,405 |
$ |
70,213 |
|||
|
(1) |
“Net new” represents bookings from outside the Company’s core EHR client base, and “Cross-sell” represents bookings from existing EHR customers. In each case, generally comprised of recurring revenues to be recognized ratably over a one-year period and an average timeframe for commencement of bookings-to-revenue conversion of four to six months following contract execution. | ||||||||||
|
(2) |
Represents nonrecurring revenues that generally exhibit a timeframe for bookings-to-revenue conversion of five to six months following contract execution. | ||||||||||
|
(3) |
Represents recurring revenues to be recognized on a monthly basis over a weighted-average contract period of five years, with a start date in the next 12 months and an average timeframe for commencement of bookings-to-revenue conversion of five to six months following contract execution. | ||||||||||
Contacts
Tracey Schroeder
Chief Marketing Officer
Tracey.schroeder@cpsi.com
(251) 639-8100
