TruBridge (TBRG) 8-K Computer Programs and Systems, Inc. Announces Fourth Quarter and Year-End 2010 Results

Exhibit 99.1

Computer Programs and Systems, Inc. Announces Fourth Quarter and Year-End 2010 Results

Company Declares Regular Quarterly Dividend of $0.36 Per Share

MOBILE, Ala.--(BUSINESS WIRE)--January 27, 2011--Computer Programs and Systems, Inc. (NASDAQ: CPSI):

Highlights:

• Revenues of $43.1 million for the fourth quarter and $153.2 million for the year;
• 12-month backlog of $126.0 million;
• Earnings per diluted share of $0.61 for the fourth quarter and $1.71 for the year ($0.03 of which is attributable to tax credits renewed retroactively during the fourth quarter);
• Cash provided by operations of $5.7 million for the fourth quarter and $19.6 million for the year; and
• Quarterly dividend of $0.36 per share.

Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider of healthcare information solutions, today announced results for the fourth quarter and year ended December 31, 2010.

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.36 (thirty-six cents) per share, payable on February 25, 2011, to stockholders of record as of the close of business on February 10, 2011.

Total revenues for the fourth quarter ended December 31, 2010, increased 27.6% to $43.1 million, compared with total revenues of $33.8 million for the prior-year period. Net income for the quarter ended December 31, 2010, increased 85.3% to $6.7 million, or $0.61 per diluted share, compared with $3.6 million, or $0.33 per diluted share, for the quarter ended December 31, 2009. Cash provided by operations for the fourth quarter of 2010 was $5.7 million, compared with $3.4 million of cash provided by operations for the prior-year period.

Total revenues for the year ended December 31, 2010, increased 20.0% to $153.2 million, compared with total revenues of $127.7 million for the prior-year period. Net income for the year ended December 31, 2010, increased 23.4% to $18.7 million, or $1.71 per diluted share, compared with $15.2 million, or $1.39 per diluted share, for the year ended December 31, 2009. Cash provided by operations for 2010 was $19.6 million, compared with $8.8 million for the prior-year period.

For the first quarter of 2011, the Company anticipates total revenues of $38 million to $41 million and net income of approximately $4.6 million to $5.0 million, or $0.42 to $0.46 per diluted share. CPSI’s 12-month backlog as of December 31, 2010, was $126.0 million, consisting of $33.6 million in non-recurring system purchases and $92.4 million in recurring payments for support, Business Management Services, ASP and ISP contracts.

A listen-only simulcast and replay of CPSI’s fourth quarter and year-end 2010 conference call will be available on-line at www.cpsinet.com and www.earnings.com on January 28, 2011, 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 46 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. CPSI’s staff of over 1,000 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 December 31,				Year Ended December 31,
	2010		2009		2010		2009
Sales revenues:
System sales	$	19,204	$	11,540	$	61,253	$	42,455
Support and maintenance		15,604		14,273		59,259		55,885
Business management services		8,271		7,938		32,735		29,402
Total sales revenues		43,079		33,751		153,247		127,742
Cost of sales:
System sales		13,023		10,105		46,801		35,822
Support and maintenance		6,303		5,712		23,923		21,628
Business management services		4,220		4,422		18,139		17,033
Total cost of sales		23,546		20,239		88,863		74,483
Gross profit		19,533		13,512		64,384		53,259
Operating expenses:
Sales and marketing		3,291		2,456		11,605		9,081
General and administrative		6,036		5,416		23,682		20,809
Total operating expenses		9,327		7,872		35,287		29,890
Operating income		10,206		5,640		29,097		23,369
Interest income, net		160		37		674		727
Income before taxes		10,366		5,677		29,771		24,096
Provision for income taxes		3,701		2,081		11,033		8,913
Net income	$	6,665	$	3,596	$	18,738	$	15,183
Basic earnings per share	$	0.61	$	0.33	$	1.71	$	1.39
Diluted earnings per share	$	0.61	$	0.33	$	1.71	$	1.39
Weighted average shares outstanding:
Basic		10,963		10,973		10,963		10,954
Diluted		10,963		10,973		10,963		10,955

COMPUTER PROGRAMS AND SYSTEMS, INC.
Condensed Balance Sheets
(in thousands, except per share data)
	Dec. 31, 2010			Dec. 31, 2009
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,940		$	4,387
Investments		13,402			13,243
Accounts receivable, net of allowance for doubtful accounts of $969 and $759, respectively		25,473			19,473
Financing receivables, current portion		3,114			3,767
Inventory		1,783			1,704
Deferred tax assets		2,244			1,527
Prepaid income taxes		102			868
Prepaid expenses		562			705
Total current assets		49,620			45,674
Financing receivables, long-term		4,432			3,761
Property and equipment		19,576			14,055
Accumulated depreciation		(10,893	)		(9,039	)
Total assets	$	62,735		$	54,451
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,617		$	2,212
Deferred revenue		4,469			3,583
Accrued vacation		2,952			2,606
Other accrued liabilities		4,447			2,847
Total current liabilities		14,485			11,248
Deferred tax liabilities		1,786			512
Stockholders’ equity:
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		30,549			29,679
Accumulated other comprehensive income		59			100
Retained earnings		15,845			12,901
Total stockholders’ equity		46,464			42,691
Total liabilities and stockholders’ equity	$	62,735		$	54,451

COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Other Supplemental Information
(In thousands)
The following table summarizes free cash flow for the Company:
	Three Months Ended Dec. 31, 2010			Year Ended Dec. 31, 2010
Net cash provided by operating activities	$	5,746		$	19,642
Purchases of property and equipment		(522	)		(5,092	)
Free cash flow	$	5,224		$	14,550
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.

CONTACT:
Computer Programs and Systems, Inc.
Boyd Douglas
President and Chief Executive Officer
251-639-8100