Computer Programs and Systems, Inc. Announces Special Dividend of $1.00 Per Share
MOBILE, Ala.--(BUSINESS WIRE)-- Computer Programs and Systems, Inc. (CPSI), a leading provider of healthcare information solutions, today announced that its Board of Directors has approved a special cash dividend of $1.00 per share, payable on December 14, 2012, to stockholders of record as of the close of business on November 29, 2012. The special dividend, which will total approximately $11.1 million based on the number of shares of common stock currently outstanding, is expected to be funded with available cash on hand. The special dividend is separate from and in addition to the Companys quarterly dividend of $0.46 per share previously announced on October 25, 2012.
Boyd Douglas, president and chief executive officer of CPSI, stated, In light of our strong balance sheet and our confidence in future cash flows, and in anticipation of potentially significant increases in tax rates on dividends beginning in 2013, we believe it is an opportune time to return value to shareholders through this one-time special dividend. This decision by our Board highlights our commitment to providing superior returns to our shareholders, while retaining the financial capability to reinvest in the Companys long-term growth and enhance shareholder value over the long term.
The special dividend is not expected to have an effect on the Companys operations or its plans to continue paying regular quarterly dividends in the future.
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 1,400 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, forward-looking statements include all statements other than those made solely with respect to historical fact, including statements with respect to the approved special dividend and the payment of quarterly dividends in the future. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. Such factors include: the impact of the special dividend; overall business and economic conditions affecting the healthcare industry; the potential effects of the federal healthcare reform legislation enacted in 2010, and implementing regulations, on the businesses of our hospital customers; the funding uncertainties associated with and potential expenditures required by the American Recovery and Reinvestment Act of 2009 in connection with the adoption of electronic health records; 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 changes in healthcare policy affecting Medicare and Medicaid reimbursement rates; government regulation of the healthcare and health insurance industries; changes in accounting principles generally accepted in the United States; breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; potential intellectual property claims against us; 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.
Boyd Douglas, President and Chief Executive Officer, 251-639-8100
Source: Computer Programs and Systems, Inc.Copyright Business Wire 2012