CPSI Announces Fourth Quarter and Year-End 2018 Results
MOBILE, Ala.–(BUSINESS WIRE)–February 15, 2019–CPSI (NASDAQ: CPSI):
Highlights for Fourth Quarter 2018:
- Revenues of $72.3 million;
- TruBridge bookings of $7.8 million;
- Backlog of $257 million;
- Total bookings of $23.6 million;
- GAAP net income of $7.6 million and non-GAAP net income of $10.7 million;
- Adjusted EBITDA of $15.3 million;
- Cash provided by operations of $9.1 million;
- GAAP earnings per diluted share of $ 0.54 and non-GAAP earnings per diluted share of $0.78; and
- Quarterly dividend of $0.10 per share.
CPSI (NASDAQ: CPSI), a community healthcare solutions company, today announced results for the fourth quarter and twelve months ended December 31, 2018.
The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share, payable on March 18, 2019, to stockholders of record as of the close of business on March 1, 2019.
Total revenues for the fourth quarter ended December 31, 2018, were $72.3 million, compared with total revenues of $78.1 million for the prior-year fourth quarter. GAAP net income for the quarter ended December 31, 2018, was $7.6 million, or $0.54 per diluted share, compared with a net loss of $21.5 million, or $1.57 per diluted share, for the quarter ended December 31, 2017. The fourth quarter of 2017 included a $28.0 million non-cash goodwill impairment charge related to the Company’s post-acute care business. Cash provided by operations for the fourth quarter of 2018 was $9.1 million, compared with $5.3 million for the prior-year period.
“CPSI closed out 2018 with a solid performance in the fourth quarter,” said Boyd Douglas, president and chief executive officer of CPSI. “We are especially pleased with the greater than 40% increase in fourth quarter bookings for our services business, TruBridge. The healthy installation schedule for our acute care electronic health record (EHR) systems, decent add-on sales and stable net new bookings this quarter all contributed to a strong finish for 2018.”
Commenting on the Company’s financial performance for the quarter, Matt Chambless, chief financial officer of CPSI, stated, “The fourth quarter was one of milestones for CPSI, with nearly all profitability metrics at or near their highest points since bringing Healthland and AHT into our family of companies. Strength in cash flows allowed for aggressive de-leveraging, resulting in a final leverage ratio that was effectively at our target. Looking forward, we are committed to continuing to deliver value to our EHR clients, harvesting additional growth opportunities with TruBridge, and using the flexibility of our improved leverage profile to pursue more opportunistic uses of capital, all while continuing to ensure that we are making the best use of our resources.”
CPSI will hold a live webcast to discuss fourth quarter and year-end 2018 results today, Friday, February 15, 2019, at 9:30 a.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.
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 three companies – Evident, LLC, American HealthTech, Inc. and TruBridge, LLC. 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 EHR solutions for community hospitals and their affiliated clinics. American HealthTech is one of the nation’s largest providers of 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. For more information, visit www.cpsi.com.
Chief Marketing Officer
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, leverage ratio, margins, costs, expenditures, cash flows, growth rates, the Company’s level of recurring and non-recurring revenue and backlog, the Company’s shareholder returns 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, including the potential effects of the federal healthcare reform legislation enacted in 2010, and implementing regulations, on the businesses of our hospital customers; government regulation of our products and services and the healthcare and health insurance industries, including changes in healthcare policy affecting Medicare and Medicaid reimbursement rates and qualifying technological standards; changes in customer purchasing priorities, capital expenditures and demand for information technology systems; saturation of our target market and hospital consolidations; 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; our substantial indebtedness, and our ability to incur additional indebtedness in the future; our potential inability to generate sufficient cash in order to meet our debt service obligations; restrictions on our current and future operations because of the terms of our senior secured credit facilities; market risks related to interest rate changes; competition with companies that have greater financial, technical and marketing resources than we have; failure to develop new or enhance current technology and products in response to market demands; failure of our products to function properly resulting in claims for 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 or enhancements free of undetected errors or problems; interruptions in our power supply and/or telecommunications capabilities, including those caused by natural disaster; our ability to attract and retain qualified customer service and support personnel; failure to properly manage growth in new markets we may enter; misappropriation of our intellectual property rights and potential intellectual property claims and litigation against us; changes in accounting principles generally accepted in the United States; fluctuations in quarterly financial performance due to, among other factors, timing of customer installations; 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.