Computer Programs and Systems, Inc. Announces Fourth Quarter and Year-End 2011 Results
Company Announces Increase in Quarterly Dividend to $0.46 Per Share, an Increase of $0.10 Per Share
MOBILE, Ala.--(BUSINESS WIRE)-- Computer Programs and Systems, Inc. (CPSI):
- Revenues of $42.2 million for the fourth quarter and $173.5 million for the year;
- 12-month backlog of $138 million;
- Earnings per diluted share of $0.59 for the fourth quarter and $2.34 for the year;
- Cash provided by operations of $9.3 million for the fourth quarter and $33.5 million for the year; and
- Quarterly dividend of $0.46 per share, an increase of $0.10 per share.
Computer Programs and Systems, Inc., a leading provider of healthcare information solutions, today announced results for the fourth quarter and year ended December 31, 2011.
The Company also announced that its Board of Directors has declared a $0.10 per share increase in the regular quarterly cash dividend to $0.46 (forty-six cents) per share, payable on February 24, 2012, to stockholders of record as of the close of business on February 9, 2012.
Total revenues for the fourth quarter ended December 31, 2011, decreased 2.0% to $42.2 million, compared with total revenues of $43.1 million for the prior-year quarter. Net income for the quarter ended December 31, 2011, decreased 1.7% to $6.6 million, or $0.59 per diluted share, compared with $6.7 million, or $0.61 per diluted share, for the quarter ended December 31, 2010. Cash provided by operations for the fourth quarter of 2011 was $9.3 million, compared with $5.7 million for the prior-year quarter.
Total revenues for the year ended December 31, 2011, increased 13.2% to $173.5 million, compared with total revenues of $153.2 million for the prior year. Net income for the year ended December 31, 2011, increased 37.9% to $25.8 million, or $2.34 per diluted share, compared with $18.7 million, or $1.71 per diluted share, for the year ended December 31, 2010. Cash provided by operations for 2011 was $33.5 million, compared with $19.6 million for the prior year.
For 2012, the Company anticipates total revenues of $187 million to $199 million and net income of approximately $28.5 million to $30.5 million, or $2.59 to $2.75 per diluted share. CPSIs 12-month backlog as of December 31, 2011, was $138 million, consisting of $35 million in non-recurring system purchases and $103 million in recurring payments for support, Business Management Services and SAAS contracts.
A listen-only simulcast and replay of CPSIs fourth quarter and year-end 2011 conference call will be available on-line at www.cpsinet.com and www.earnings.com on January 27, 2012, 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 over 650 client hospitals in 45 states and the District of Columbia. 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. CPSIs staff of over 1,200 technical, healthcare, medical and business 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, capital expenditures 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, including the effects of the healthcare reform legislation enacted in 2010 and changes in healthcare policy affecting Medicare and Medicaid reimbursement rates; changes in accounting principles generally accepted in the United States; general economic conditions, including changes in the financial markets that may affect the availability and cost of credit to us or our 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 most recent 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
|Support and maintenance||17,994||15,604||67,557||59,259|
|Business management services||8,773||8,271||35,275||32,735|
|Total sales revenues||42,212||43,079||173,476||153,247|
|Cost of sales:|
|Support and maintenance||7,489||6,303||27,239||23,923|
|Business management services||4,974||4,220||19,223||18,139|
|Total cost of sales||23,570||23,546||94,065||88,863|
|Sales and marketing||3,041||3,291||13,413||11,605|
|General and administrative||5,074||6,036||24,703||23,682|
|Total operating expenses||8,115||9,327||38,116||35,287|
|Interest income, net||175||160||667||674|
|Income before taxes||10,702||10,366||41,962||29,771|
|Provision for income taxes||4,147||3,701||16,129||11,033|
|Basic earnings per share||$||0.59||$||0.61||$||2.34||$||1.71|
|Diluted earnings per share||$||0.59||$||0.61||$||2.34||$||1.71|
|Weighted average shares outstanding:|
|COMPUTER PROGRAMS AND SYSTEMS, INC.|
|Condensed Balance Sheets|
|Cash and cash equivalents||$||6,664||$||2,940|
Accounts receivable, net of allowance for doubtful accounts of $1,276 and $969, respectively
|Financing receivables, current portion (net)||3,781||3,114|
|Deferred tax assets||2,544||2,244|
|Prepaid income taxes||835||102|
|Total current assets||54,169||49,620|
|Financing receivables, long-term (net)||4,057||4,432|
|Property and equipment||30,745||19,576|
|LIABILITIES AND STOCKHOLDERS EQUITY|
|Other accrued liabilities||5,400||4,447|
|Total current liabilities||16,671||14,485|
|Deferred tax liabilities||1,590||1,786|
|Common stock, par value $0.001 per share, 30,000 shares authorized, 10,963 and 10,973 shares issued and outstanding||11||11|
|Additional paid-in capital||31,582||30,549|
|Accumulated other comprehensive income||7||59|
|Total stockholders equity||57,384||46,464|
|Total liabilities and stockholders equity||$||75,645||$||62,735|
|COMPUTER PROGRAMS AND SYSTEMS, INC.|
|Unaudited Other Supplemental Information|
The following table summarizes free cash flow for the Company:
|Net cash provided by operating activities||$||9,341||$||33,540|
|Purchases of property and equipment*||(9,840||)||(10,847||)|
|Free cash flow||$||(499||)||$||22,693|
* Includes $9,500 for the acquisition of the Companys corporate headquarters and campus facility in December 2011.
Free cash flow is a non-GAAP financial measure which CPSI defines as net cash provided by operating activities less purchases of property and equipment. 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.
Computer Programs and Systems, Inc.
Boyd Douglas, 251-639-8100
President and Chief Executive Officer
Source: Computer Programs and Systems, Inc.Copyright Business Wire 2012