Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | COMPUTER PROGRAMS & SYSTEMS INC | |
Entity Central Index Key | 1,169,445 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Trading Symbol | CPSI | |
Entity Common Stock, Shares Outstanding | 11,302,688 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 26,248,693 | $ 23,791,748 |
Investments | 10,788,358 | 10,703,126 |
Accounts receivable, net of allowance for doubtful accounts of $1,153,000 and $1,253,000, respectively | 21,981,180 | 23,101,575 |
Financing receivables, current portion, net | 13,034,268 | 18,111,633 |
Inventories | 1,352,691 | 1,431,560 |
Deferred tax assets | 2,233,038 | 2,318,988 |
Prepaid income taxes | 2,529,288 | 1,120,487 |
Prepaid expenses and other | 2,016,090 | 936,915 |
Total current assets | 80,183,606 | 81,516,032 |
Property and equipment, net | 15,659,465 | 17,038,619 |
Financing receivables, net of current portion | 1,827,162 | 770,169 |
Deferred tax assets | 181,085 | 0 |
Total assets | 97,851,318 | 99,324,820 |
Current liabilities: | ||
Accounts payable | 4,867,733 | 3,990,368 |
Deferred revenue | 4,687,839 | 5,890,431 |
Accrued vacation | 4,060,210 | 3,930,778 |
Other accrued liabilities | 3,869,767 | 4,349,207 |
Total current liabilities | 17,485,549 | 18,160,784 |
Deferred tax liabilities | 0 | 383,050 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 30,000,000 shares authorized; 11,302,688 and 11,208,879 shares issued and outstanding | 11,303 | 11,209 |
Additional paid-in capital | 41,606,296 | 38,983,350 |
Accumulated other comprehensive income (loss) | 6,552 | (19,337) |
Retained earnings | 38,741,618 | 41,805,764 |
Total stockholders’ equity | 80,365,769 | 80,780,986 |
Total liabilities and stockholders’ equity | $ 97,851,318 | $ 99,324,820 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 1,153 | $ 1,253 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 11,302,688 | 11,208,879 |
Common stock, shares outstanding | 11,302,688 | 11,208,879 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Sales revenues: | ||||
System sales | $ 12,267,721 | $ 20,663,393 | $ 24,852,669 | $ 41,116,820 |
Support and maintenance | 18,542,477 | 18,454,030 | 37,074,189 | 36,699,151 |
Business management, consulting and managed IT services | 16,276,367 | 13,935,853 | 31,399,050 | 27,331,683 |
Total sales revenues | 47,086,565 | 53,053,276 | 93,325,908 | 105,147,654 |
Costs of sales: | ||||
System sales | 10,641,124 | 11,292,643 | 20,450,807 | 22,486,060 |
Support and maintenance | 6,842,388 | 7,127,197 | 14,002,099 | 14,501,149 |
Business management, consulting and managed IT services | 9,927,179 | 9,454,761 | 19,891,157 | 18,546,471 |
Total costs of sales | 27,410,691 | 27,874,601 | 54,344,063 | 55,533,680 |
Gross profit | 19,675,874 | 25,178,675 | 38,981,845 | 49,613,974 |
Operating expenses: | ||||
Sales and marketing | 3,270,669 | 3,633,891 | 6,304,027 | 7,598,058 |
General and administrative | 8,018,797 | 7,475,529 | 16,457,781 | 15,959,650 |
Total operating expenses | 11,289,466 | 11,109,420 | 22,761,808 | 23,557,708 |
Operating income | 8,386,408 | 14,069,255 | 16,220,037 | 26,056,266 |
Other income: | ||||
Other income | 114,820 | 66,630 | 198,186 | 25,720 |
Total other income | 114,820 | 66,630 | 198,186 | 25,720 |
Income before taxes | 8,501,228 | 14,135,885 | 16,418,223 | 26,081,986 |
Provision for income taxes | 2,597,595 | 5,029,498 | 5,006,682 | 9,260,542 |
Net income | $ 5,903,633 | $ 9,106,387 | $ 11,411,541 | $ 16,821,444 |
Net income per share-basic (in dollars per share) | $ 0.52 | $ 0.81 | $ 1.01 | $ 1.50 |
Net income per share-diluted (in dollars per share) | $ 0.52 | $ 0.81 | $ 1.01 | $ 1.50 |
Weighted average shares outstanding used in per common share computations: | ||||
Basic (shares) | 11,079,006 | 11,022,076 | 11,065,666 | 11,013,863 |
Diluted (in shares) | 11,079,006 | 11,022,076 | 11,065,666 | 11,013,863 |
Dividends declared per share (in dollars per share) | $ 0.64 | $ 0.57 | $ 1.28 | $ 1.14 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,903,633 | $ 9,106,387 | $ 11,411,541 | $ 16,821,444 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized (loss) gain on investments available for sale, net of tax | (61,006) | (22,123) | 25,889 | 24,224 |
Total other comprehensive (loss) income, net of tax | (61,006) | (22,123) | 25,889 | 24,224 |
Comprehensive income | $ 5,842,627 | $ 9,084,264 | $ 11,437,430 | $ 16,845,668 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning Balance (in shares) at Dec. 31, 2014 | 11,208,879 | ||||
Beginning Balance at Dec. 31, 2014 | $ 80,780,986 | $ 11,209 | $ 38,983,350 | $ (19,337) | $ 41,805,764 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,411,541 | 11,411,541 | |||
Unrealized gain on investments available for sale, net of tax | 25,889 | 25,889 | |||
Issuance of restricted stock (in shares) | 106,694 | ||||
Issuance of restricted stock | 0 | $ 107 | (107) | ||
Forfeiture of common stock (in shares) | (12,885) | ||||
Forfeiture of common stock | 0 | $ (13) | 13 | ||
Stock-based compensation | 2,614,977 | 2,614,977 | |||
Dividends | (14,475,687) | (14,475,687) | |||
Income tax benefit from restricted stock dividends | 121,218 | 121,218 | |||
Deficient tax benefit from restricted stock | (113,155) | (113,155) | |||
Ending Balance (in shares) at Jun. 30, 2015 | 11,302,688 | ||||
Ending Balance at Jun. 30, 2015 | $ 80,365,769 | $ 11,303 | $ 41,606,296 | $ 6,552 | $ 38,741,618 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities: | ||
Net income | $ 11,411,541 | $ 16,821,444 |
Adjustments to net income: | ||
Provision for bad debt | (338,886) | 726,609 |
Deferred taxes | (494,052) | (982,532) |
Stock-based compensation | 2,614,977 | 1,756,677 |
Deficient (excess) tax benefit from restricted stock | 113,155 | (9,991) |
Income tax benefit from restricted stock dividends | (121,218) | (69,739) |
Depreciation | 1,826,564 | 1,864,379 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,328,133 | (5,600,868) |
Financing receivables | 4,151,520 | 1,628,743 |
Inventories | 78,869 | 178,771 |
Prepaid expenses and other | (1,079,175) | (909,696) |
Accounts payable | 877,365 | (202,104) |
Deferred revenue | (1,202,592) | (647,197) |
Other liabilities | (350,008) | 220,759 |
Income taxes payable/prepaid income taxes | (1,400,738) | (302,105) |
Net cash provided by operating activities | 17,415,455 | 14,473,150 |
Investing Activities: | ||
Purchases of property and equipment | (447,410) | (256,406) |
Purchases of investments | (43,476) | 0 |
Sale of investments | 0 | 21,326 |
Net cash used in investing activities | (490,886) | (235,080) |
Financing Activities: | ||
Dividends paid | (14,475,687) | (12,752,513) |
(Deficient) excess tax benefit from restricted stock | (113,155) | 9,991 |
Income tax benefit from restricted stock dividends | 121,218 | 69,739 |
Net cash used in financing activities | (14,467,624) | (12,672,783) |
Increase in cash and cash equivalents | 2,456,945 | 1,565,287 |
Cash and cash equivalents at beginning of period | 23,791,748 | 11,729,185 |
Cash and cash equivalents at end of period | 26,248,693 | 13,294,472 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes, net of refund | $ 6,926,500 | $ 10,537,300 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are considered of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results. Certain footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2014 was derived from the audited consolidated balance sheet at that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of Computer Programs and Systems, Inc. ("CPSI" or the "Company") for the year ended December 31, 2014 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Principles of Consolidation The condensed consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge") and Evident, LLC ("Evident"), wholly-owned subsidiaries of CPSI. All significant intercompany balances and transactions have been eliminated. In April 2015, the Company announced the formation of Evident. Evident provides electronic health record solutions previously sold under the CPSI name as well as an expanded range of offerings targeted specifically at rural and community healthcare organizations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company recognizes revenue in accordance with accounting principles generally accepted in the United States of America, principally those required by the Software topic and Revenue Recognition subtopic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification") and those prescribed by the SEC. The Company's revenue is generated from three sources: • System Sales - the sale of information systems, which includes perpetual software licenses, conversion, installation and training services, hardware and peripherals; • Support and Maintenance - the provision of system support services, which includes software application support, hardware maintenance, continuing education, "Software as a Service" (or "SaaS") services, and forms and supplies; and • Business Management, Consulting and Managed IT Services - the provision of business management services, which includes electronic billing, statement processing, payroll processing, accounts receivable management, contract management and insurance services, as well as Internet service provider ("ISP") services and consulting and managed IT services (collectively, "other professional IT services"). System Sales, Software Application Support and Hardware Maintenance The Company enters into contractual obligations to sell perpetual software licenses, conversion, installation and training services, hardware and software application support and hardware maintenance services. On average, the Company is able to complete a system installation in three to four weeks. The methods employed by the Company to recognize revenue, which are discussed by element below, achieve results materially consistent with the provisions of Accounting Standards Update ("ASU") 2009-13, Multiple-Deliverable Revenue Arrangements , due to the relatively short period during which there are multiple undelivered elements, the relatively small amount of non-software related elements in the system sale arrangements, and the limited number of contracts in-process at the end of each reporting period. The Company recognizes revenue on the elements noted above as follows: • Perpetual software licenses and conversion, installation and training services – The selling price of perpetual software licenses and conversion, installation and training services is based on management’s best estimate of selling price. In determining management’s best estimate of selling price, we consider the following: (1) competitor pricing, (2) supply and demand of installation staff, (3) overall economic conditions, and (4) our pricing practices as they relate to discounts. With the exception of certain arrangements with extended payment terms that were entered into in 2012 and that are not comparable to our historical or current arrangements (see Note 9), the method of recognizing revenue for the perpetual license of the associated modules included in the arrangement, and the related conversion, installation and training services over the term the services are performed, is on a module by module basis as the related perpetual licenses are delivered and the respective conversion, installation and training for each specific module is completed, as this is representative of the pattern of provision of these services. • Hardware – We recognize revenue for hardware upon shipment. The selling price of hardware is based on management’s best estimate of selling price, which consists of cost plus a targeted margin. • Software application support and hardware maintenance – We have established vendor-specific objective evidence ("VSOE") of the fair value of our software application support and hardware maintenance services by reference to the price our customers are required to pay for the services when sold separately via renewals. Support and maintenance revenue is recognized on a straight-line basis over the term of the maintenance contract, which is generally three to five years. SaaS, ISP and Other Professional IT Services The Company accounts for SaaS arrangements in accordance with the requirements of the Hosting Arrangement section under the Software topic and Revenue Recognition subtopic of the Codification. The Codification states that the software elements of SaaS services should not be accounted for as a hosting arrangement "if the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software." Each SaaS contract entered into by the Company includes a system purchase and buyout clause, and this clause specifies the total amount of the system buyout. In addition, a clause is included in the contract which states that should the system be bought out by the customer, the customer would be required to enter into a general support agreement (for post-contract support services) for the remainder of the original SaaS term. Accordingly, the Company has concluded that SaaS customers do not have the right to take possession of the system without significant penalty (i.e., the purchase price of the system), resulting in the determination that these contracts are service contracts for which revenue is recognized when the services are performed. The Company will occasionally provide ISP and other professional IT services. Depending on the nature of the services provided, these services may be considered software elements or non-software elements. The selling price of services considered to be software elements is based on VSOE of the fair value of the services by reference to the price our customers are required to pay for the services when sold separately. The selling price of services considered to be non-software elements is based on third-party evidence of selling price of similar services. Revenue from these elements is recognized as the services are performed. Business Management Services Business management services consist of electronic billing, statement processing, payroll processing, accounts receivable management, contract management and insurance services. While business management service arrangements are contracts separate from the system sale and support and maintenance contracts, these contracts are often executed within a short time frame of each other. The amount of the total arrangement consideration allocated to these services is based on VSOE of fair value by reference to the rate at which our customers renew as well as the rate at which the services are sold to customers when the business management services agreement is not executed within a short time frame of the system sale and support and maintenance contracts. If VSOE of fair value does not exist for these services, we allocate arrangement consideration based on third-party evidence ("TPE") of selling price or, if neither VSOE nor TPE is available, estimated selling price. Because the pricing is transaction based (per unit pricing), customers are billed and revenue recognized as services are performed based on transaction levels. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Land $ 2,848,276 $ 2,848,276 Buildings and improvements 9,432,234 9,422,696 Maintenance equipment 1,230,714 1,230,714 Computer equipment 4,759,150 4,668,006 Leasehold improvements 4,753,386 4,680,233 Office furniture and fixtures 4,335,474 4,061,899 Automobiles 334,398 334,398 27,693,632 27,246,222 Less: accumulated depreciation (12,034,167 ) (10,207,603 ) Property and equipment, net $ 15,659,465 $ 17,038,619 |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES Other accrued liabilities were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Salaries and benefits $ 2,009,547 $ 2,782,862 Commissions 546,995 504,952 Self-insurance reserves 790,500 668,800 Other 522,725 392,593 $ 3,869,767 $ 4,349,207 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The Company accounts for investments in accordance with FASB Codification topic, Investments – Debt and Equity Securities . Accordingly, investments are classified as available-for-sale securities and are reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of stockholders’ equity. The Company’s management determines the appropriate classification of investments in fixed income securities at the time of acquisition and re-evaluates the classification at each balance sheet date. An average cost method is used for purposes of determining the cost of investments sold. Investments were comprised of the following at June 30, 2015 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments (money market funds and accrued income) $ 75,888 $ — $ — $ 75,888 Obligations of U.S. Treasury, U.S. government corporations and agencies 2,037,330 1,152 (3,513 ) 2,034,969 Mortgage-backed securities 60,550 2,071 — 62,621 Certificates of deposit 2,000,000 1,805 (120 ) 2,001,685 Corporate debt securities 6,604,022 29,464 (20,291 ) 6,613,195 $ 10,777,790 $ 34,492 $ (23,924 ) $ 10,788,358 Shown below are the amortized cost and fair value of available-for-sale securities with fixed maturities at June 30, 2015 , by contract maturity date. Actual maturities may differ from contractual maturities because issuers of certain debt securities retain early call or prepayment rights. Amortized Cost Fair Value Due in 2015 $ 825,290 $ 829,068 Due in 2016 1,515,510 1,521,518 Due in 2017 706,374 706,064 Due in 2018 3,026,785 3,036,779 Due thereafter 4,703,831 4,694,929 $ 10,777,790 $ 10,788,358 Investments were comprised of the following at December 31, 2014 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments (money market funds and accrued income) $ 94,595 $ — $ — $ 94,595 Obligations of U.S. Treasury, U.S. government corporations and agencies 2,017,250 3,885 (349 ) 2,020,786 Mortgage-backed securities 66,982 2,550 — 69,532 Certificates of deposit 2,000,000 — (24,755 ) 1,975,245 Corporate debt securities 6,555,485 8,826 (21,343 ) 6,542,968 $ 10,734,312 $ 15,261 $ (46,447 ) $ 10,703,126 The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at June 30, 2015 and December 31, 2014 , respectively: At June 30, 2015 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Treasury, U.S. government corporations and agencies $ 769,806 $ (3,513 ) $ — $ — $ 769,806 $ (3,513 ) Certificates of deposit 249,880 (120 ) — — 249,880 (120 ) Corporate debt securities 2,783,434 (19,787 ) 539,646 (504 ) 3,323,080 (20,291 ) $ 3,803,120 $ (23,420 ) $ 539,646 $ (504 ) $ 4,342,766 $ (23,924 ) At December 31, 2014 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Treasury, U.S. government corporations and agencies $ 904,083 $ (349 ) $ — $ — $ 904,083 $ (349 ) Certificates of deposit $ 1,975,245 $ (24,755 ) $ — $ — $ 1,975,245 $ (24,755 ) Corporate debt securities 3,975,432 (21,220 ) 149,838 (123 ) 4,125,270 (21,343 ) $ 6,854,760 $ (46,324 ) $ 149,838 $ (123 ) $ 7,004,598 $ (46,447 ) Our investment portfolio, including those securities in unrealized loss positions at June 30, 2015 , is comprised almost entirely of investment-grade corporate and government debt securities and certificates of deposits with large financial institutions. The Company does not intend to sell the investments that are in an unrealized loss position, and it is not likely that the Company will be required to sell any investments before recovery of their amortized cost basis. As a result, the Company has determined that the unrealized losses are deemed to be temporary impairments as of June 30, 2015 . The Company believes that the unrealized losses generally are caused by liquidity discounts and increases in risk premiums required by market participants rather than an adverse change in cash flows or a fundamental weakness in the credit quality of the issuer or underlying assets. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The Company presents basic and diluted earnings per share ("EPS") data for its common stock. Basic EPS is calculated by dividing the net income attributable to stockholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the net income attributable to stockholders of the Company and the weighted average number of shares of common stock outstanding during the period for the effects of all dilutive potential common shares, including awards under stock-based compensation arrangements. The Company's unvested restricted stock awards (see Note 8) are considered participating securities under FASB Codification topic, Earnings Per Share , because they entitle holders to non-forfeitable rights to dividends until the awards vest or are forfeited. When a company has a security that qualifies as a "participating security," the Codification requires the use of the two-class method when computing basic EPS. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net income to allocate to common stockholders, income is allocated to both common stock and participating securities based on their respective weighted average shares outstanding for the period, with net income attributable to common stockholders ultimately equaling net income less net income attributable to participating securities. Diluted EPS for the Company's common stock is computed using the more dilutive of the two-class method or the treasury stock method. The following is a calculation of the basic and diluted EPS for the Company's common stock, including a reconciliation between net income and net income attributable to common stockholders: Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Net income $ 5,903,633 $ 9,106,387 $ 11,411,541 $ 16,821,444 Less: Net income attributable to participating securities (119,977 ) (144,023 ) (253,645 ) (252,934 ) Net income attributable to common stockholders $ 5,783,656 $ 8,962,364 $ 11,157,896 $ 16,568,510 Weighted average shares outstanding used in basic per common share computations 11,079,006 11,022,076 11,065,666 11,013,863 Add: Dilutive potential common shares — — — — Weighted average shares outstanding used in diluted per common share computations 11,079,006 11,022,076 11,065,666 11,013,863 Basic EPS $ 0.52 $ 0.81 $ 1.01 $ 1.50 Diluted EPS $ 0.52 $ 0.81 $ 1.01 $ 1.50 During 2015, performance share awards were granted to certain executive officers and key employees of the Company which will result in the issuance of time-vesting restricted stock if the predefined performance criteria are met. The awards provide for an aggregate target of 49,471 shares (net of forfeitures), none of which have been included in the calculation of diluted EPS for the three and six months ended June 30, 2015 because the related threshold award performance level has not been achieved as of June 30, 2015 . See Note 8. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company accounts for income taxes in accordance with FASB Codification topic, Income Taxes . Deferred income taxes arise from the temporary differences in the recognition of income and expenses for tax purposes. A valuation allowance is established when the Company believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Deferred tax assets and liabilities were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Deferred tax assets: Accounts receivable and financing receivables $ 754,687 $ 879,094 Accrued vacation 1,209,243 1,158,764 Stock-based compensation 1,229,965 1,133,986 Deferred revenue 43,799 105,554 Accrued liabilities and other 225,308 175,575 Other comprehensive income — 11,851 Total deferred tax assets $ 3,463,002 $ 3,464,824 Deferred tax liabilities: Other comprehensive income $ 4,016 $ — Depreciation 1,044,863 1,528,886 Total deferred tax liabilities $ 1,048,879 $ 1,528,886 Significant components of the Company’s income tax provision in the Condensed Consolidated Statements of Income for the six months ended June 30 were as follows: 2015 2014 Current provision: Federal $ 4,537,226 $ 8,669,670 State 963,508 1,573,404 Deferred provision: Federal (443,380 ) (881,760 ) State (50,672 ) (100,772 ) Total income tax provision $ 5,006,682 $ 9,260,542 The difference between income taxes at the U.S. federal statutory income tax rate of 35% and those reported in the Condensed Consolidated Statements of Income for the six months ended June 30 was as follows: 2015 2014 Income taxes at U.S. Federal statutory rate $ 5,746,378 $ 9,128,695 State income taxes, net of U.S. Federal tax effect 591,876 921,940 Domestic production activities deduction (441,867 ) (853,269 ) Uncertain tax positions (883,245 ) 25,402 Other (6,460 ) 37,774 Total income tax provision $ 5,006,682 $ 9,260,542 Our effective tax rates for the three and six months ended June 30, 2015 decreased to 30.6% and 30.5% , respectively, from 35.6% and 35.5% for the three and six months ended June 30, 2014 , primarily due to beneficial adjustments recorded during the three and six months ended June 30, 2015 related to our reserves for uncertain tax positions. The federal returns for tax years 2004 through 2009 are currently under examination by the Internal Revenue Service ("IRS"), primarily in relation to research credits claimed on those returns. Interactions with the IRS during the first six months of 2015 regarding the examination of our federal returns for the tax years under examination resulted in enhanced clarity regarding the sustainability of our uncertain tax positions for all years, whether under examination or open to examination, prompting a beneficial change in our measurement of reserves for uncertain tax positions. The Company had unrecognized tax benefits of $572,626 related to uncertain tax positions as of June 30, 2015 under the provisions of FASB Codification topic, Income Taxes , which is recorded as a component of income taxes payable within the Condensed Consolidated Balance Sheets. As of June 30, 2015 , $51,108 of accrued interest related to such positions had been recorded. As stated previously, the federal returns for the tax years 2004 through 2009 are currently under examination by the IRS, primarily in relation to research credits claimed on those returns, as amended, by the Company. The federal returns for tax years 2011 through 2013 remain open to examination, and returns for tax years 2006 through 2013 remain open to examination by certain other taxing jurisdictions to which the Company is subject. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation cost is measured at the grant date based on the fair value of the award, and is recognized as an expense over the employee’s or non-employee director’s requisite service period. The following table shows total stock-based compensation expense for the three and six months ended June 30, 2015 and 2014 , included in the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Costs of sales $ 356,355 $ 405,620 $ 953,211 $ 670,869 Operating expenses 821,984 644,456 1,661,766 1,085,808 Pre-tax stock-based compensation expense 1,178,339 1,050,076 2,614,977 1,756,677 Less: income tax effect (459,552 ) (409,530 ) (1,019,841 ) (685,104 ) Net stock-based compensation expense $ 718,787 $ 640,546 $ 1,595,136 $ 1,071,573 The Company's stock-based compensation awards are in the form of restricted stock and performance share awards made pursuant to the Company's 2005 Restricted Stock Plan, 2012 Restricted Stock Plan for Non-Employee Directors, and 2014 Incentive Plan (the "Plans"). As of June 30, 2015 , there was $9,125,408 of unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plans. Restricted Stock The Company grants restricted stock to executive officers, certain key employees and non-employee directors under the Plans with the fair value of the awards representing the fair value of the common stock on the date the restricted stock is granted. Shares of restricted stock generally vest in equal annual installments over the applicable vesting period, which ranges from one to five years. The Company records expenses for these grants on a straight-line basis over the applicable vesting periods. Shares of restricted stock may also be issued pursuant to the settlement of performance share awards, for which the Company records expenses in the manner described in the "Performance Share Awards" section below. A summary of restricted stock activity (including shares of restricted stock issued pursuant to the settlement of performance share awards) under the Plans for the six months ended June 30, 2015 and 2014 is as follows: Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Nonvested restricted stock outstanding at beginning of period 160,216 $ 59.14 153,674 $ 58.15 Granted 60,850 51.85 49,737 61.63 Performance share awards settled through the issuance of restricted stock 45,844 60.28 — — Vested (41,525 ) 60.71 (20,980 ) 60.49 Forfeited (12,885 ) 58.06 — — Nonvested restricted stock outstanding at end of period 212,500 $ 57.09 182,431 $ 58.82 Performance Share Awards In 2014, the Company began to grant performance share awards to executive officers and certain key employees under the 2014 Incentive Plan. The number of shares of common stock earned and issuable under the award is determined at the end of each performance period, based on the Company's achievement of performance goals predetermined by the Compensation Committee of the Board of Directors at the time of grant. If certain levels of the performance objective are met, the award results in the issuance of shares of restricted stock corresponding to such level, which shares are then subject to time-based vesting pursuant to which the shares of restricted stock vest in equal annual installments over the applicable vesting period, which is three years for restricted stock issued pursuant to performance share awards. In the event that the Company's financial performance meets the predetermined target for the performance objective, the Company will issue each award recipient the number of restricted shares equal to the target award specified in the individual's underlying performance share award agreement. In the event the financial results of the Company exceed the predetermined target, additional shares up to the maximum award may be issued. In the event the financial results of the Company fall below the predetermined target, a reduced number of shares may be issued. If the financial results of the Company fall below the threshold performance level, no shares will be issued. The recipients of performance share awards do not receive dividends or possess voting rights during the performance period and, accordingly, the fair value of the performance share awards is the quoted market value of the Company's stock on the grant date less the present value of the expected dividends not received during the relevant period. Expense is recognized using the accelerated attribution (graded vesting) method over the period beginning on the date the Company determines that it is probable that the performance criteria will be achieved and ending on the last day of the vesting period for the restricted stock issued in satisfaction of such awards. In the event the Company determines it is no longer probable that the minimum performance level will be achieved, all previously recognized compensation expense related to the applicable awards is reversed in the period such a determination is made. A summary of performance share award activity under the 2014 Incentive Plan for the six months ended June 30, 2015 and 2014 is as follows, based on the target award amounts set forth in the performance share award agreements: Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Shares Weighted-Average Shares Weighted-Average Performance share awards outstanding at beginning of period 46,541 $ 60.28 — $ — Granted 52,364 49.29 46,541 60.28 Forfeited or unearned (3,590 ) 51.42 — — Performance share awards settled through the issuance of restricted stock (45,844 ) 60.28 — — Performance share awards outstanding at end of period 49,471 $ 49.29 46,541 $ 60.28 |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | FINANCING RECEIVABLES Short-Term Payment Plans The Company has sold information and patient care systems to certain healthcare providers under Second Generation Meaningful Use Installment Plans (see below) with maximum contractual terms of three years and expected terms of less than one year and other arrangements requiring fixed monthly payments over terms ranging from three to 12 months ("Fixed Periodic Payment Plans"). These receivables, collectively referred to as short-term payment plans and included in the current portion of financing receivables, were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Second Generation Meaningful Use Installment Plans, gross $ 11,344,918 $ 15,554,900 Fixed Periodic Payment Plans, gross 983,762 2,239,817 Short-term payment plans, gross 12,328,680 17,794,717 Less: allowance for losses (616,434 ) (889,736 ) Less: unearned income — — Short-term payment plans, net $ 11,712,246 $ 16,904,981 Sales-Type Leases Additionally, the Company leases its information and patient care systems to certain healthcare providers under sales-type leases expiring in various years through 2020 . These receivables typically have terms from two to five years, bear interest at various rates, and are usually collateralized by a security interest in the underlying assets. Since the Company has a history of successfully collecting amounts due under the original payment terms of these extended payment arrangements without making any concessions to its customers, the Company satisfies the requirement for revenue recognition. The Company’s history with these types of extended payment term arrangements supports management’s assertion that revenues are fixed and determinable and collection is probable. The components of these lease receivables were as follows at June 30, 2015 and December 31, 2014 : June 30, December 31, Sales-type leases, gross $ 3,615,909 $ 2,152,218 Less: allowance for losses (165,747 ) (111,450 ) Less: unearned income (300,978 ) (63,947 ) Sales-type leases, net $ 3,149,184 $ 1,976,821 Future minimum lease payments to be received subsequent to June 30, 2015 are as follows: 2015 $ 840,399 2016 1,300,473 2017 748,238 2018 327,357 2019 308,324 Thereafter 91,118 Total minimum lease payments to be received 3,615,909 Less: unearned income (300,978 ) Lease receivables, net $ 3,314,931 Credit Quality of Financing Receivables and Allowance for Credit Losses The following table is a roll-forward of the allowance for financing credit losses for the six months ended June 30, 2015 and year ended December 31, 2014 : Balance at Beginning of Period Provision Charge-offs Recoveries Balance at End of Period June 30, 2015 $ 1,001,186 $ (131,148 ) $ (87,857 ) $ — $ 782,181 December 31, 2014 $ 1,365,190 $ (349,280 ) $ (14,724 ) $ — $ 1,001,186 The Company’s financing receivables are comprised of a single portfolio segment, as the balances are all derived from short-term payment plan arrangements and sales-type leasing arrangements within our target market of rural and community hospitals. The Company evaluates the credit quality of its financing receivables based on a combination of factors, including, but not limited to, customer collection experience, economic conditions, the customer’s financial condition, and known risk characteristics impacting the respective customer base of rural and community hospitals, the most notable of which relate to enacted and potential changes in Medicare and Medicaid reimbursement rates as rural and community hospitals typically generate a significant portion of their revenues and related cash flows from beneficiaries of these programs. In addition to specific account identification, the Company utilizes historical collection experience to establish the allowance for credit losses. Financing receivables are written off only after the Company has exhausted all collection efforts. The Company has been successful in collecting its financing receivables and considers the credit quality of such arrangements to be good, especially as the underlying assets act as collateral for the receivables. Customer payments are considered past due if a scheduled payment is not received within contractually agreed upon terms. To facilitate customer collection and credit monitoring efforts, financing receivable amounts are invoiced and reclassified to trade accounts receivable when they become due, with all invoiced amounts placed on nonaccrual status. As a result, all past due amounts related to the Company’s financing receivables are included in trade accounts receivable in the accompanying Condensed Consolidated Balance Sheets. The following is an analysis of the age of financing receivables amounts (excluding short-term payment plans) that have been reclassified to trade accounts receivable and were past due as of June 30, 2015 and December 31, 2014 : 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due June 30, 2015 $ 207,947 $ 8,802 $ — $ 216,749 December 31, 2014 $ 161,160 $ 16,978 $ 10,072 $ 188,210 From time to time, the Company may agree to alternative payment terms outside of the terms of the original financing receivable agreement due to customer difficulties in achieving the original terms. In general, such alternative payment arrangements do not result in a re-aging of the related receivables. Rather, payments pursuant to any alternative payment arrangements are applied to the already outstanding invoices beginning with the oldest outstanding invoices as the payments are received. Because amounts are reclassified to trade accounts receivable when they become due, there are no past due amounts included within financing receivables in the accompanying Condensed Consolidated Balance Sheets. The Company utilizes an aging of trade accounts receivable as the primary credit quality indicator for its financing receivables, which is facilitated by the reclassification of customer payment amounts to trade accounts receivable when they become due. The table below categorizes customer financing receivable balances (excluding short-term payment plans), none of which are considered past due, according to the age of the oldest related payment outstanding within trade accounts receivable: June 30, December 31, Customer balances with amounts reclassified to trade accounts receivable that are: 1 to 90 Days Past Due $ 1,728,187 $ 361,303 91 to 180 Days Past Due 482,424 349,721 181 + Days Past Due 27,500 27,500 Total customer balances with past due amounts reclassified to trade accounts receivable $ 2,238,111 $ 738,524 Total customer balances with no past due amounts reclassified to trade accounts receivable 1,076,820 1,349,747 Total financing receivables with contractual maturities of one year or less 12,328,680 17,794,717 Less: allowance for losses (782,181 ) (1,001,186 ) Total financing receivables $ 14,861,430 $ 18,881,802 First Generation Meaningful Use Installment Plans During 2012, the Company entered into multiple customer license agreements with payment terms requiring the customer to remit to the Company incentive payments (not to exceed the remaining balance of the contract price) received under the American Recovery and Reinvestment Act of 2009 (the "ARRA") for adoption of qualifying electronic health records ("EHRs"), with only nominal payment amounts required until the customer’s receipt of such incentive payments ("First Generation Meaningful Use Installment Plans"). If no such incentive payments are received by the customer or if such payments are not sufficient to pay the remaining balance under the arrangement, payments continue at contracted nominal amounts until the balance of the contract price is paid in full. Because of the significant difference in the underlying economics of these arrangements compared to our historical financing receivables, management has determined that these arrangements are not comparable to historical arrangements. In accordance with the Software topic and Revenue Recognition subtopic of the Codification, the Company recognizes revenue related to these arrangements as the amounts become due. Anticipated future cash flows from these First Generation Meaningful Use Installment Plans are excluded from the Company’s financing receivables and deferred revenue in the accompanying Condensed Consolidated Balance Sheets. Second Generation Meaningful Use Installment Plans Beginning in the fourth quarter of 2012, we ceased offering First Generation Meaningful Use Installment Plans to our customers, opting instead for license agreements with payment terms that provide us with greater visibility into and control over the customer’s meaningful use attestation process and significantly reducing the maximum timeframe over which customers must satisfy their full payment obligations in purchasing our system (“Second Generation Meaningful Use Installment Plans”). As the overall payment period durations of the Second Generation Meaningful Use Installment Plans are consistent with that of our historical system sale financing arrangements, revenues under the Second Generation Meaningful Use Installment Plans are recognized upon installation of our EHR solution. Although these arrangements provide for a maximum payment term of three years, management has determined the expected term for these arrangements to be less than one year due to (a) historical collection patterns of required EHR incentive payment amounts and (b) the estimated significance of those amounts, the receipt of which is expected to result in minimal or no remaining balance for the related arrangements. As a result, all related amounts are included as a component of financing receivables, current portion, net in the accompanying Condensed Consolidated Balance Sheets and as a component of short-term payment plans within this Note 9. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. Management does not believe it is reasonably possible that such matters will have a material adverse effect on the Company’s financial statements. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE FASB Codification topic, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and expands financial statement disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Codification does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. The Codification requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The fair values of the Company’s available-for-sale securities are based on matrix pricing for the periods ended June 30, 2015 and December 31, 2014 , which uses observable market-based inputs (such as benchmark yields) in addition to quoted prices in active markets to derive fair values. As a result, these inputs are classified as Level 2 within the fair value hierarchy. We generally apply fair value techniques on a non-recurring basis associated with (1) valuing potential impairment loss related to financing receivables accounted for pursuant to Codification topic, Leases , and (2) valuing potential impairment loss related to long-lived assets accounted for pursuant to Codification topic, Property, Plant and Equipment , when events or circumstances indicate a possible impairment. The following tables summarize the carrying amounts and fair values of certain assets and liabilities at June 30, 2015 and December 31, 2014 : Fair Value at June 30, 2015 Using Quoted Prices in Carrying Active Markets for Significant Other Significant Amount at Identical Assets Observable Inputs Unobservable Inputs 6/30/2015 (Level 1) (Level 2) (Level 3) Description Available-for-sale securities Short-term investments (money market funds and accrued income) $ 75,888 $ — $ 75,888 $ — Obligations of U.S. Treasury, U.S. government corporations and agencies 2,034,969 — 2,034,969 — Mortgage-backed securities 62,621 — 62,621 — Certificates of deposit 2,001,685 — 2,001,685 — Corporate debt securities 6,613,195 — 6,613,195 — Total available-for-sale securities $ 10,788,358 $ — $ 10,788,358 $ — Fair Value at December 31, 2014 Using Quoted Prices in Carrying Active Markets for Significant Other Significant Amount at Identical Assets Observable Inputs Unobservable Inputs 12/31/2014 (Level 1) (Level 2) (Level 3) Description Available-for-sale securities Short-term investments (money market funds and accrued income) $ 94,595 $ — $ 94,595 $ — Obligations of U.S. Treasury, U.S. government corporations and agencies 2,020,786 — 2,020,786 — Mortgage-backed securities 69,532 — 69,532 — Certificates of deposit 1,975,245 — 1,975,245 — Corporate debt securities 6,542,968 — 6,542,968 — Total available-for-sale securities $ 10,703,126 $ — $ 10,703,126 $ — Accrued income in the above tables represents earnings due and payable to our investment portfolio at any point in time but not yet received. The carrying amounts of other financial instruments reported in the accompanying Condensed Consolidated Balance Sheets for current assets and current liabilities approximate their fair values because of the short-term nature of these instruments. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Adopted in 2015 There were no new standards required to be adopted during the six months ended June 30, 2015 that are expected to have a material impact on our financial statements. New Accounting Standards Yet to be Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , to clarify the principles for recognizing revenue and to develop a common revenue standard for generally accepted accounting principles ("GAAP") and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, which is effective for the Company as of the first quarter of our fiscal year ending December 31, 2018. The Company is currently evaluating the impact that the implementation of this standard will have on its financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 30, 2015 , the Company announced a dividend for the second quarter of 2015 in the amount of $0.64 per share, payable on August 28, 2015 , to stockholders of record as of the close of business on August 13, 2015 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are considered of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results. Certain footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2014 was derived from the audited consolidated balance sheet at that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of Computer Programs and Systems, Inc. ("CPSI" or the "Company") for the year ended December 31, 2014 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge") and Evident, LLC ("Evident"), wholly-owned subsidiaries of CPSI. All significant intercompany balances and transactions have been eliminated. |
Revenue Recognition | REVENUE RECOGNITION The Company recognizes revenue in accordance with accounting principles generally accepted in the United States of America, principally those required by the Software topic and Revenue Recognition subtopic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification") and those prescribed by the SEC. The Company's revenue is generated from three sources: • System Sales - the sale of information systems, which includes perpetual software licenses, conversion, installation and training services, hardware and peripherals; • Support and Maintenance - the provision of system support services, which includes software application support, hardware maintenance, continuing education, "Software as a Service" (or "SaaS") services, and forms and supplies; and • Business Management, Consulting and Managed IT Services - the provision of business management services, which includes electronic billing, statement processing, payroll processing, accounts receivable management, contract management and insurance services, as well as Internet service provider ("ISP") services and consulting and managed IT services (collectively, "other professional IT services"). System Sales, Software Application Support and Hardware Maintenance The Company enters into contractual obligations to sell perpetual software licenses, conversion, installation and training services, hardware and software application support and hardware maintenance services. On average, the Company is able to complete a system installation in three to four weeks. The methods employed by the Company to recognize revenue, which are discussed by element below, achieve results materially consistent with the provisions of Accounting Standards Update ("ASU") 2009-13, Multiple-Deliverable Revenue Arrangements , due to the relatively short period during which there are multiple undelivered elements, the relatively small amount of non-software related elements in the system sale arrangements, and the limited number of contracts in-process at the end of each reporting period. The Company recognizes revenue on the elements noted above as follows: • Perpetual software licenses and conversion, installation and training services – The selling price of perpetual software licenses and conversion, installation and training services is based on management’s best estimate of selling price. In determining management’s best estimate of selling price, we consider the following: (1) competitor pricing, (2) supply and demand of installation staff, (3) overall economic conditions, and (4) our pricing practices as they relate to discounts. With the exception of certain arrangements with extended payment terms that were entered into in 2012 and that are not comparable to our historical or current arrangements (see Note 9), the method of recognizing revenue for the perpetual license of the associated modules included in the arrangement, and the related conversion, installation and training services over the term the services are performed, is on a module by module basis as the related perpetual licenses are delivered and the respective conversion, installation and training for each specific module is completed, as this is representative of the pattern of provision of these services. • Hardware – We recognize revenue for hardware upon shipment. The selling price of hardware is based on management’s best estimate of selling price, which consists of cost plus a targeted margin. • Software application support and hardware maintenance – We have established vendor-specific objective evidence ("VSOE") of the fair value of our software application support and hardware maintenance services by reference to the price our customers are required to pay for the services when sold separately via renewals. Support and maintenance revenue is recognized on a straight-line basis over the term of the maintenance contract, which is generally three to five years. SaaS, ISP and Other Professional IT Services The Company accounts for SaaS arrangements in accordance with the requirements of the Hosting Arrangement section under the Software topic and Revenue Recognition subtopic of the Codification. The Codification states that the software elements of SaaS services should not be accounted for as a hosting arrangement "if the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software." Each SaaS contract entered into by the Company includes a system purchase and buyout clause, and this clause specifies the total amount of the system buyout. In addition, a clause is included in the contract which states that should the system be bought out by the customer, the customer would be required to enter into a general support agreement (for post-contract support services) for the remainder of the original SaaS term. Accordingly, the Company has concluded that SaaS customers do not have the right to take possession of the system without significant penalty (i.e., the purchase price of the system), resulting in the determination that these contracts are service contracts for which revenue is recognized when the services are performed. The Company will occasionally provide ISP and other professional IT services. Depending on the nature of the services provided, these services may be considered software elements or non-software elements. The selling price of services considered to be software elements is based on VSOE of the fair value of the services by reference to the price our customers are required to pay for the services when sold separately. The selling price of services considered to be non-software elements is based on third-party evidence of selling price of similar services. Revenue from these elements is recognized as the services are performed. Business Management Services Business management services consist of electronic billing, statement processing, payroll processing, accounts receivable management, contract management and insurance services. While business management service arrangements are contracts separate from the system sale and support and maintenance contracts, these contracts are often executed within a short time frame of each other. The amount of the total arrangement consideration allocated to these services is based on VSOE of fair value by reference to the rate at which our customers renew as well as the rate at which the services are sold to customers when the business management services agreement is not executed within a short time frame of the system sale and support and maintenance contracts. If VSOE of fair value does not exist for these services, we allocate arrangement consideration based on third-party evidence ("TPE") of selling price or, if neither VSOE nor TPE is available, estimated selling price. Because the pricing is transaction based (per unit pricing), customers are billed and revenue recognized as services are performed based on transaction levels. |
New Accounting Standards Yet to be Adopted | New Accounting Standards Yet to be Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , to clarify the principles for recognizing revenue and to develop a common revenue standard for generally accepted accounting principles ("GAAP") and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, which is effective for the Company as of the first quarter of our fiscal year ending December 31, 2018. The Company is currently evaluating the impact that the implementation of this standard will have on its financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Land $ 2,848,276 $ 2,848,276 Buildings and improvements 9,432,234 9,422,696 Maintenance equipment 1,230,714 1,230,714 Computer equipment 4,759,150 4,668,006 Leasehold improvements 4,753,386 4,680,233 Office furniture and fixtures 4,335,474 4,061,899 Automobiles 334,398 334,398 27,693,632 27,246,222 Less: accumulated depreciation (12,034,167 ) (10,207,603 ) Property and equipment, net $ 15,659,465 $ 17,038,619 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Salaries and benefits $ 2,009,547 $ 2,782,862 Commissions 546,995 504,952 Self-insurance reserves 790,500 668,800 Other 522,725 392,593 $ 3,869,767 $ 4,349,207 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments were comprised of the following at December 31, 2014 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments (money market funds and accrued income) $ 94,595 $ — $ — $ 94,595 Obligations of U.S. Treasury, U.S. government corporations and agencies 2,017,250 3,885 (349 ) 2,020,786 Mortgage-backed securities 66,982 2,550 — 69,532 Certificates of deposit 2,000,000 — (24,755 ) 1,975,245 Corporate debt securities 6,555,485 8,826 (21,343 ) 6,542,968 $ 10,734,312 $ 15,261 $ (46,447 ) $ 10,703,126 Investments were comprised of the following at June 30, 2015 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments (money market funds and accrued income) $ 75,888 $ — $ — $ 75,888 Obligations of U.S. Treasury, U.S. government corporations and agencies 2,037,330 1,152 (3,513 ) 2,034,969 Mortgage-backed securities 60,550 2,071 — 62,621 Certificates of deposit 2,000,000 1,805 (120 ) 2,001,685 Corporate debt securities 6,604,022 29,464 (20,291 ) 6,613,195 $ 10,777,790 $ 34,492 $ (23,924 ) $ 10,788,358 |
Amortized Cost and Estimated Fair Value of Securities With Fixed Maturities | Shown below are the amortized cost and fair value of available-for-sale securities with fixed maturities at June 30, 2015 , by contract maturity date. Actual maturities may differ from contractual maturities because issuers of certain debt securities retain early call or prepayment rights. Amortized Cost Fair Value Due in 2015 $ 825,290 $ 829,068 Due in 2016 1,515,510 1,521,518 Due in 2017 706,374 706,064 Due in 2018 3,026,785 3,036,779 Due thereafter 4,703,831 4,694,929 $ 10,777,790 $ 10,788,358 |
Company's Investments' Gross Unrealized Losses and Fair Value | The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at June 30, 2015 and December 31, 2014 , respectively: At June 30, 2015 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Treasury, U.S. government corporations and agencies $ 769,806 $ (3,513 ) $ — $ — $ 769,806 $ (3,513 ) Certificates of deposit 249,880 (120 ) — — 249,880 (120 ) Corporate debt securities 2,783,434 (19,787 ) 539,646 (504 ) 3,323,080 (20,291 ) $ 3,803,120 $ (23,420 ) $ 539,646 $ (504 ) $ 4,342,766 $ (23,924 ) At December 31, 2014 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Treasury, U.S. government corporations and agencies $ 904,083 $ (349 ) $ — $ — $ 904,083 $ (349 ) Certificates of deposit $ 1,975,245 $ (24,755 ) $ — $ — $ 1,975,245 $ (24,755 ) Corporate debt securities 3,975,432 (21,220 ) 149,838 (123 ) 4,125,270 (21,343 ) $ 6,854,760 $ (46,324 ) $ 149,838 $ (123 ) $ 7,004,598 $ (46,447 ) |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a calculation of the basic and diluted EPS for the Company's common stock, including a reconciliation between net income and net income attributable to common stockholders: Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Net income $ 5,903,633 $ 9,106,387 $ 11,411,541 $ 16,821,444 Less: Net income attributable to participating securities (119,977 ) (144,023 ) (253,645 ) (252,934 ) Net income attributable to common stockholders $ 5,783,656 $ 8,962,364 $ 11,157,896 $ 16,568,510 Weighted average shares outstanding used in basic per common share computations 11,079,006 11,022,076 11,065,666 11,013,863 Add: Dilutive potential common shares — — — — Weighted average shares outstanding used in diluted per common share computations 11,079,006 11,022,076 11,065,666 11,013,863 Basic EPS $ 0.52 $ 0.81 $ 1.01 $ 1.50 Diluted EPS $ 0.52 $ 0.81 $ 1.01 $ 1.50 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Deferred tax assets: Accounts receivable and financing receivables $ 754,687 $ 879,094 Accrued vacation 1,209,243 1,158,764 Stock-based compensation 1,229,965 1,133,986 Deferred revenue 43,799 105,554 Accrued liabilities and other 225,308 175,575 Other comprehensive income — 11,851 Total deferred tax assets $ 3,463,002 $ 3,464,824 Deferred tax liabilities: Other comprehensive income $ 4,016 $ — Depreciation 1,044,863 1,528,886 Total deferred tax liabilities $ 1,048,879 $ 1,528,886 |
Component of Income Tax Provision | Significant components of the Company’s income tax provision in the Condensed Consolidated Statements of Income for the six months ended June 30 were as follows: 2015 2014 Current provision: Federal $ 4,537,226 $ 8,669,670 State 963,508 1,573,404 Deferred provision: Federal (443,380 ) (881,760 ) State (50,672 ) (100,772 ) Total income tax provision $ 5,006,682 $ 9,260,542 |
Difference Between Income Taxes at U. S. Federal Statutory Income Tax Rate | The difference between income taxes at the U.S. federal statutory income tax rate of 35% and those reported in the Condensed Consolidated Statements of Income for the six months ended June 30 was as follows: 2015 2014 Income taxes at U.S. Federal statutory rate $ 5,746,378 $ 9,128,695 State income taxes, net of U.S. Federal tax effect 591,876 921,940 Domestic production activities deduction (441,867 ) (853,269 ) Uncertain tax positions (883,245 ) 25,402 Other (6,460 ) 37,774 Total income tax provision $ 5,006,682 $ 9,260,542 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total Stock-Based Compensation Expense | The following table shows total stock-based compensation expense for the three and six months ended June 30, 2015 and 2014 , included in the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Costs of sales $ 356,355 $ 405,620 $ 953,211 $ 670,869 Operating expenses 821,984 644,456 1,661,766 1,085,808 Pre-tax stock-based compensation expense 1,178,339 1,050,076 2,614,977 1,756,677 Less: income tax effect (459,552 ) (409,530 ) (1,019,841 ) (685,104 ) Net stock-based compensation expense $ 718,787 $ 640,546 $ 1,595,136 $ 1,071,573 |
Summary of Restricted Stock Activity | A summary of restricted stock activity (including shares of restricted stock issued pursuant to the settlement of performance share awards) under the Plans for the six months ended June 30, 2015 and 2014 is as follows: Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Nonvested restricted stock outstanding at beginning of period 160,216 $ 59.14 153,674 $ 58.15 Granted 60,850 51.85 49,737 61.63 Performance share awards settled through the issuance of restricted stock 45,844 60.28 — — Vested (41,525 ) 60.71 (20,980 ) 60.49 Forfeited (12,885 ) 58.06 — — Nonvested restricted stock outstanding at end of period 212,500 $ 57.09 182,431 $ 58.82 |
Summary of Performance Share Award Activity | A summary of performance share award activity under the 2014 Incentive Plan for the six months ended June 30, 2015 and 2014 is as follows, based on the target award amounts set forth in the performance share award agreements: Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Shares Weighted-Average Shares Weighted-Average Performance share awards outstanding at beginning of period 46,541 $ 60.28 — $ — Granted 52,364 49.29 46,541 60.28 Forfeited or unearned (3,590 ) 51.42 — — Performance share awards settled through the issuance of restricted stock (45,844 ) 60.28 — — Performance share awards outstanding at end of period 49,471 $ 49.29 46,541 $ 60.28 |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Components of Short Term Payment Plans | These receivables, collectively referred to as short-term payment plans and included in the current portion of financing receivables, were comprised of the following at June 30, 2015 and December 31, 2014 : June 30, December 31, Second Generation Meaningful Use Installment Plans, gross $ 11,344,918 $ 15,554,900 Fixed Periodic Payment Plans, gross 983,762 2,239,817 Short-term payment plans, gross 12,328,680 17,794,717 Less: allowance for losses (616,434 ) (889,736 ) Less: unearned income — — Short-term payment plans, net $ 11,712,246 $ 16,904,981 |
Components of Lease Receivables | The components of these lease receivables were as follows at June 30, 2015 and December 31, 2014 : June 30, December 31, Sales-type leases, gross $ 3,615,909 $ 2,152,218 Less: allowance for losses (165,747 ) (111,450 ) Less: unearned income (300,978 ) (63,947 ) Sales-type leases, net $ 3,149,184 $ 1,976,821 |
Future Minimum Lease Payments to be Received | Future minimum lease payments to be received subsequent to June 30, 2015 are as follows: 2015 $ 840,399 2016 1,300,473 2017 748,238 2018 327,357 2019 308,324 Thereafter 91,118 Total minimum lease payments to be received 3,615,909 Less: unearned income (300,978 ) Lease receivables, net $ 3,314,931 |
Allowance for Financing Credit Losses | The following table is a roll-forward of the allowance for financing credit losses for the six months ended June 30, 2015 and year ended December 31, 2014 : Balance at Beginning of Period Provision Charge-offs Recoveries Balance at End of Period June 30, 2015 $ 1,001,186 $ (131,148 ) $ (87,857 ) $ — $ 782,181 December 31, 2014 $ 1,365,190 $ (349,280 ) $ (14,724 ) $ — $ 1,001,186 |
Analysis of Age of Financing Receivables Amounts | The following is an analysis of the age of financing receivables amounts (excluding short-term payment plans) that have been reclassified to trade accounts receivable and were past due as of June 30, 2015 and December 31, 2014 : 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due June 30, 2015 $ 207,947 $ 8,802 $ — $ 216,749 December 31, 2014 $ 161,160 $ 16,978 $ 10,072 $ 188,210 |
Schedule of Financing Receivable Credit Quality Indicators | The table below categorizes customer financing receivable balances (excluding short-term payment plans), none of which are considered past due, according to the age of the oldest related payment outstanding within trade accounts receivable: June 30, December 31, Customer balances with amounts reclassified to trade accounts receivable that are: 1 to 90 Days Past Due $ 1,728,187 $ 361,303 91 to 180 Days Past Due 482,424 349,721 181 + Days Past Due 27,500 27,500 Total customer balances with past due amounts reclassified to trade accounts receivable $ 2,238,111 $ 738,524 Total customer balances with no past due amounts reclassified to trade accounts receivable 1,076,820 1,349,747 Total financing receivables with contractual maturities of one year or less 12,328,680 17,794,717 Less: allowance for losses (782,181 ) (1,001,186 ) Total financing receivables $ 14,861,430 $ 18,881,802 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets and Liabilities | The following tables summarize the carrying amounts and fair values of certain assets and liabilities at June 30, 2015 and December 31, 2014 : Fair Value at June 30, 2015 Using Quoted Prices in Carrying Active Markets for Significant Other Significant Amount at Identical Assets Observable Inputs Unobservable Inputs 6/30/2015 (Level 1) (Level 2) (Level 3) Description Available-for-sale securities Short-term investments (money market funds and accrued income) $ 75,888 $ — $ 75,888 $ — Obligations of U.S. Treasury, U.S. government corporations and agencies 2,034,969 — 2,034,969 — Mortgage-backed securities 62,621 — 62,621 — Certificates of deposit 2,001,685 — 2,001,685 — Corporate debt securities 6,613,195 — 6,613,195 — Total available-for-sale securities $ 10,788,358 $ — $ 10,788,358 $ — Fair Value at December 31, 2014 Using Quoted Prices in Carrying Active Markets for Significant Other Significant Amount at Identical Assets Observable Inputs Unobservable Inputs 12/31/2014 (Level 1) (Level 2) (Level 3) Description Available-for-sale securities Short-term investments (money market funds and accrued income) $ 94,595 $ — $ 94,595 $ — Obligations of U.S. Treasury, U.S. government corporations and agencies 2,020,786 — 2,020,786 — Mortgage-backed securities 69,532 — 69,532 — Certificates of deposit 1,975,245 — 1,975,245 — Corporate debt securities 6,542,968 — 6,542,968 — Total available-for-sale securities $ 10,703,126 $ — $ 10,703,126 $ — |
REVENUE RECOGNITION (Detail)
REVENUE RECOGNITION (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Minimum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
System installation period | 21 days |
Maintenance contract term | 3 years |
Maximum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
System installation period | 28 days |
Maintenance contract term | 5 years |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 27,693,632 | $ 27,246,222 |
Less: accumulated depreciation | (12,034,167) | (10,207,603) |
Property and equipment, net | 15,659,465 | 17,038,619 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,848,276 | 2,848,276 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,432,234 | 9,422,696 |
Maintenance equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,230,714 | 1,230,714 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,759,150 | 4,668,006 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,753,386 | 4,680,233 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,335,474 | 4,061,899 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 334,398 | $ 334,398 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Salaries and benefits | $ 2,009,547 | $ 2,782,862 |
Commissions | 546,995 | 504,952 |
Self-insurance reserves | 790,500 | 668,800 |
Other | 522,725 | 392,593 |
Other accrued liabilities | $ 3,869,767 | $ 4,349,207 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 10,777,790 | $ 10,734,312 |
Unrealized Gains | 34,492 | 15,261 |
Unrealized Losses | (23,924) | (46,447) |
Fair Value | 10,788,358 | 10,703,126 |
Short-term investments (money market funds and accrued income) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 75,888 | 94,595 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 75,888 | 94,595 |
Obligations of U.S. Treasury, U.S. government corporations and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,037,330 | 2,017,250 |
Unrealized Gains | 1,152 | 3,885 |
Unrealized Losses | (3,513) | (349) |
Fair Value | 2,034,969 | 2,020,786 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 60,550 | 66,982 |
Unrealized Gains | 2,071 | 2,550 |
Unrealized Losses | 0 | 0 |
Fair Value | 62,621 | 69,532 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,000,000 | 2,000,000 |
Unrealized Gains | 1,805 | 0 |
Unrealized Losses | (120) | (24,755) |
Fair Value | 2,001,685 | 1,975,245 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,604,022 | 6,555,485 |
Unrealized Gains | 29,464 | 8,826 |
Unrealized Losses | (20,291) | (21,343) |
Fair Value | $ 6,613,195 | $ 6,542,968 |
INVESTMENTS - Amortized Cost an
INVESTMENTS - Amortized Cost and Estimated Fair Value of Securities With Fixed Maturities (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in 2015, Amortized Cost | $ 825,290 | |
Due in 2016, Amortized Cost | 1,515,510 | |
Due in 2017, Amortized Cost | 706,374 | |
Due in 2018, Amortized Cost | 3,026,785 | |
Due thereafter, Amortized Cost | 4,703,831 | |
Amortized Cost | 10,777,790 | $ 10,734,312 |
Due in 2015, Fair Value | 829,068 | |
Due in 2016, Fair Value | 1,521,518 | |
Due in 2017, Fair Value | 706,064 | |
Due in 2018, Fair Value | 3,036,779 | |
Due thereafter, Fair Value | 4,694,929 | |
Fair Value | $ 10,788,358 | $ 10,703,126 |
INVESTMENTS - Company's Investm
INVESTMENTS - Company's Investments' Gross Unrealized Losses and Fair Value (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 3,803,120 | $ 6,854,760 |
12 Months or More, Fair Value | 539,646 | 149,838 |
Total, Fair Value | 4,342,766 | 7,004,598 |
Less than 12 months, Unrealized Losses | (23,420) | (46,324) |
12 Months or More, Unrealized Losses | (504) | (123) |
Total, Unrealized Losses | (23,924) | (46,447) |
Obligations of U.S. Treasury, U.S. government corporations and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 769,806 | 904,083 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 769,806 | 904,083 |
Less than 12 months, Unrealized Losses | (3,513) | (349) |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | (3,513) | (349) |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 249,880 | 1,975,245 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 249,880 | 1,975,245 |
Less than 12 months, Unrealized Losses | (120) | (24,755) |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | (120) | (24,755) |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 2,783,434 | 3,975,432 |
12 Months or More, Fair Value | 539,646 | 149,838 |
Total, Fair Value | 3,323,080 | 4,125,270 |
Less than 12 months, Unrealized Losses | (19,787) | (21,220) |
12 Months or More, Unrealized Losses | (504) | (123) |
Total, Unrealized Losses | $ (20,291) | $ (21,343) |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $ 5,903,633 | $ 9,106,387 | $ 11,411,541 | $ 16,821,444 |
Less: Net income attributable to participating securities | (119,977) | (144,023) | (253,645) | (252,934) |
Net income attributable to common stockholders | $ 5,783,656 | $ 8,962,364 | $ 11,157,896 | $ 16,568,510 |
Weighted average shares outstanding used in basic per common share computations | 11,079,006 | 11,022,076 | 11,065,666 | 11,013,863 |
Add: Dilutive potential common shares | 0 | 0 | 0 | 0 |
Weighted average shares outstanding used in diluted per common share computations | 11,079,006 | 11,022,076 | 11,065,666 | 11,013,863 |
Basic EPS (in dollars per share) | $ 0.52 | $ 0.81 | $ 1.01 | $ 1.50 |
Diluted EPS (in dollars per share) | $ 0.52 | $ 0.81 | $ 1.01 | $ 1.50 |
Performance Shares [Member] | ||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Securities excluded from computation of earnings per share (shares) | 49,471 | 49,471 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accounts receivable and financing receivables | $ 754,687 | $ 879,094 |
Accrued vacation | 1,209,243 | 1,158,764 |
Stock-based compensation | 1,229,965 | 1,133,986 |
Deferred revenue | 43,799 | 105,554 |
Accrued liabilities and other | 225,308 | 175,575 |
Other comprehensive income | 0 | 11,851 |
Total deferred tax assets | 3,463,002 | 3,464,824 |
Deferred tax liabilities: | ||
Other comprehensive income | 4,016 | 0 |
Depreciation | 1,044,863 | 1,528,886 |
Total deferred tax liabilities | $ 1,048,879 | $ 1,528,886 |
INCOME TAXES - Component of Inc
INCOME TAXES - Component of Income Tax Provision (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current provision: | ||||
Federal | $ 4,537,226 | $ 8,669,670 | ||
State | 963,508 | 1,573,404 | ||
Deferred provision: | ||||
Federal | (443,380) | (881,760) | ||
State | (50,672) | (100,772) | ||
Total income tax provision | $ 2,597,595 | $ 5,029,498 | $ 5,006,682 | $ 9,260,542 |
INCOME TAXES - Difference Betwe
INCOME TAXES - Difference Between Income Taxes at U.S. Federal Statutory Income Tax Rate (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes at U.S. Federal statutory rate | $ 5,746,378 | $ 9,128,695 | ||
State income taxes, net of U.S. Federal tax effect | 591,876 | 921,940 | ||
Domestic production activities deduction | (441,867) | (853,269) | ||
Uncertain tax positions | (883,245) | 25,402 | ||
Other | (6,460) | 37,774 | ||
Total income tax provision | $ 2,597,595 | $ 5,029,498 | $ 5,006,682 | $ 9,260,542 |
U. S. federal statutory income tax rate | 35.00% | 35.00% | ||
Effective tax rate | 30.60% | 35.60% | 30.50% | 35.50% |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) | Jun. 30, 2015USD ($) |
Income Tax Contingency [Line Items] | |
Accrued interest | $ 51,108 |
Income Taxes Payable | |
Income Tax Contingency [Line Items] | |
Unrecognized Tax Benefits | $ 572,626 |
STOCK-BASED COMPENSATION - Tota
STOCK-BASED COMPENSATION - Total Stock-Based Compensation Expense (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Pre-tax stock-based compensation expense | $ 1,178,339 | $ 1,050,076 | $ 2,614,977 | $ 1,756,677 |
Less: income tax effect | (459,552) | (409,530) | (1,019,841) | (685,104) |
Net stock-based compensation expense | 718,787 | 640,546 | 1,595,136 | 1,071,573 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 9,125,408 | 9,125,408 | ||
Costs of sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Pre-tax stock-based compensation expense | 356,355 | 405,620 | 953,211 | 670,869 |
Operating expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Pre-tax stock-based compensation expense | $ 821,984 | $ 644,456 | $ 1,661,766 | $ 1,085,808 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Restricted Stock Activity (Detail) - Restricted Stock - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Shares | ||
Nonvested stock outstanding at beginning of period, shares | 160,216 | 153,674 |
Granted, shares | 60,850 | 49,737 |
Performance share awards settled through the issuance of restricted stock, shares | 45,844 | 0 |
Vested, shares | (41,525) | (20,980) |
Forfeited, shares | (12,885) | 0 |
Nonvested stock outstanding at end of period, shares | 212,500 | 182,431 |
Weighted-Average Grant Date Fair Value | ||
Nonvested stock outstanding at beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 59.14 | $ 58.15 |
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 51.85 | 61.63 |
Performance share awards settled through the issuance of restricted stock, Weighted-Average Grant-Date Fair Value (in dollars per share) | 60.28 | 0 |
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 60.71 | 60.49 |
Forfeited, Weighted-Average Grant-Date Fair Value (in dollars per share) | 58.06 | 0 |
Nonvested stock outstanding at end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 57.09 | $ 58.82 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years |
STOCK-BASED COMPENSATION - Su43
STOCK-BASED COMPENSATION - Summary of Performance Share Awards (Details) - Performance Shares [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Shares | ||
Nonvested stock outstanding at beginning of period, shares | 46,541 | 0 |
Granted, shares | 52,364 | 46,541 |
Forfeited or unearned, shares | (3,590) | 0 |
Performance share awards settled through the issuance of restricted stock, shares | (45,844) | 0 |
Nonvested stock outstanding at end of period, shares | 49,471 | 46,541 |
Weighted-Average Grant Date Fair Value | ||
Nonvested stock outstanding at beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 60.28 | $ 0 |
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 49.29 | 60.28 |
Forfeited or unearned, Weighted-Average Grant-Date Fair Value (in dollars per share) | 51.42 | 0 |
Performance share awards settled through the issuance of restricted stock, Weighted-Average Grant-Date Fair Value (in dollars per share) | 60.28 | 0 |
Nonvested stock outstanding at end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 49.29 | $ 60.28 |
FINANCING RECEIVABLES - Additio
FINANCING RECEIVABLES - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Financing Receivables [Line Items] | |
Expiration period of sales type lease | |
Minimum | |
Financing Receivables [Line Items] | |
Financial receivable lease term (in years) | 2 years |
Maximum | |
Financing Receivables [Line Items] | |
Financial receivable lease term (in years) | 5 years |
Second Generation Meaningful Use Installment Plans | |
Financing Receivables [Line Items] | |
Maximum contractual term (in years) | 3 years |
Expected contractual term, less than (in years) | 1 year |
Fixed Periodic Payment Plans | Minimum | |
Financing Receivables [Line Items] | |
Current financing receivable terms (in months) | 3 months |
Fixed Periodic Payment Plans | Maximum | |
Financing Receivables [Line Items] | |
Current financing receivable terms (in months) | 12 months |
FINANCING RECEIVABLES - Short-T
FINANCING RECEIVABLES - Short-Term Payment Plans (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivables [Line Items] | ||
Financing receivables, current portion, net | $ 13,034,268 | $ 18,111,633 |
Second Generation Meaningful Use Installment Plans, gross | ||
Financing Receivables [Line Items] | ||
Short-term payment plans, gross | 11,344,918 | 15,554,900 |
Fixed Periodic Payment Plans, gross | ||
Financing Receivables [Line Items] | ||
Short-term payment plans, gross | 983,762 | 2,239,817 |
Short-term payment plans, gross | ||
Financing Receivables [Line Items] | ||
Short-term payment plans, gross | 12,328,680 | 17,794,717 |
Less: allowance for losses | (616,434) | (889,736) |
Less: unearned income | 0 | 0 |
Financing receivables, current portion, net | $ 11,712,246 | $ 16,904,981 |
FINANCING RECEIVABLES - Sales-T
FINANCING RECEIVABLES - Sales-Type Leases (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Sales-type leases, gross | $ 3,615,909 | $ 2,152,218 |
Less: allowance for losses | (165,747) | (111,450) |
Less: unearned income | (300,978) | (63,947) |
Sales-type leases, net | $ 3,149,184 | $ 1,976,821 |
FINANCING RECEIVABLES - Future
FINANCING RECEIVABLES - Future Minimum Lease Payments (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
2,015 | $ 840,399 | |
2,016 | 1,300,473 | |
2,017 | 748,238 | |
2,018 | 327,357 | |
2,019 | 308,324 | |
Thereafter | 91,118 | |
Total minimum lease payments to be received | 3,615,909 | $ 2,152,218 |
Less: unearned income | (300,978) | $ (63,947) |
Net leases receivables | $ 3,314,931 |
FINANCING RECEIVABLES - Allowan
FINANCING RECEIVABLES - Allowance for Financing Credit Losses (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Allowance for Credit Losses on Financing Receivables [Roll Forward] | ||
Beginning Balance | $ 1,001,186 | $ 1,365,190 |
Provision | (131,148) | (349,280) |
Charge-offs | (87,857) | (14,724) |
Recoveries | 0 | 0 |
Ending Balance | $ 782,181 | $ 1,001,186 |
FINANCING RECEIVABLES - Analysi
FINANCING RECEIVABLES - Analysis of Age of Financing Receivables Amounts (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
1 to 90 Days Past Due | $ 207,947 | $ 161,160 |
91 to 180 Days Past Due | 8,802 | 16,978 |
181 Days Past Due | 0 | 10,072 |
Total Past Due | $ 216,749 | $ 188,210 |
FINANCING RECEIVABLES - Summary
FINANCING RECEIVABLES - Summary of Financing Receivables (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Customer balances with amounts reclassified to trade accounts receivable that are: | |||
1 to 90 Days Past Due | $ 1,728,187 | $ 361,303 | |
91 to 180 Days Past Due | 482,424 | 349,721 | |
181 Days Past Due | 27,500 | 27,500 | |
Total customer balances with past due amounts reclassified to trade accounts receivable | 2,238,111 | 738,524 | |
Total customer balances with no past due amounts reclassified to trade accounts receivable | 1,076,820 | 1,349,747 | |
Total financing receivables with contractual maturities of one year or less | 12,328,680 | 17,794,717 | |
Less: allowance for losses | (782,181) | (1,001,186) | $ (1,365,190) |
Total financing receivables | $ 14,861,430 | $ 18,881,802 |
FAIR VALUE (Detail)
FAIR VALUE (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | $ 10,788,358 | $ 10,703,126 |
Carrying Amount | Short-term investments (money market funds and accrued income) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 75,888 | 94,595 |
Carrying Amount | Obligations of U.S. Treasury, U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 2,034,969 | 2,020,786 |
Carrying Amount | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 62,621 | 69,532 |
Carrying Amount | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 2,001,685 | 1,975,245 |
Carrying Amount | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 6,613,195 | 6,542,968 |
Estimate of Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments (money market funds and accrued income) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. Treasury, U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 10,788,358 | 10,703,126 |
Estimate of Fair Value | Significant Other Observable Inputs (Level 2) | Short-term investments (money market funds and accrued income) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 75,888 | 94,595 |
Estimate of Fair Value | Significant Other Observable Inputs (Level 2) | Obligations of U.S. Treasury, U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 2,034,969 | 2,020,786 |
Estimate of Fair Value | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 62,621 | 69,532 |
Estimate of Fair Value | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 2,001,685 | 1,975,245 |
Estimate of Fair Value | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 6,613,195 | 6,542,968 |
Estimate of Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Significant Unobservable Inputs (Level 3) | Short-term investments (money market funds and accrued income) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Treasury, U.S. government corporations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Estimate of Fair Value | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Detail)
SUBSEQUENT EVENTS (Detail) - $ / shares | Jul. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Subsequent Event [Line Items] | |||||
Dividends declared per share | $ 0.64 | $ 0.57 | $ 1.28 | $ 1.14 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share | $ 0.64 |