Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-49796 | ||
Entity Registrant Name | COMPUTER PROGRAMS AND SYSTEMS, INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 74-3032373 | ||
Entity Address, Address Line One | 6600 Wall Street | ||
Entity Address, City or Town | Mobile | ||
Entity Address, State or Province | AL | ||
Entity Address, Postal Zip Code | 36695 | ||
City Area Code | 251 | ||
Local Phone Number | 639-8100 | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | ||
Trading Symbol | CPSI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 298,301,584 | ||
Entity Common Stock, Shares Outstanding | 14,356,296 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this report to the extent described herein. | ||
Entity Central Index Key | 0001169445 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 7,357 | $ 5,732 |
Accounts receivable, net of allowance for doubtful accounts of $2,078 and $2,124, respectively | 38,819 | 40,474 |
Financing receivables, current portion, net | 12,032 | 15,059 |
Inventories | 1,426 | 1,498 |
Prepaid income taxes | 1,337 | 2,120 |
Prepaid expenses and other | 5,861 | 5,055 |
Total current assets | 66,832 | 69,938 |
Property and equipment, net | 11,593 | 10,875 |
Operating lease assets | 7,800 | |
Financing receivables, net of current portion | 18,267 | 19,263 |
Other assets, net of current portion | 1,771 | 995 |
Intangible assets, net | 83,110 | 86,226 |
Goodwill | 150,216 | 140,449 |
Total assets | 339,589 | 327,746 |
Current liabilities: | ||
Accounts payable | 8,804 | 5,668 |
Current portion of long-term debt | 8,430 | 6,486 |
Deferred revenue | 8,628 | 10,201 |
Accrued vacation | 4,301 | 3,929 |
Other accrued liabilities | 11,767 | 12,219 |
Total current liabilities | 41,930 | 38,503 |
Long-term debt, net of current portion | 99,433 | 124,583 |
Operating lease liabilities, net of current portion | 6,256 | |
Deferred tax liabilities | 7,623 | 4,877 |
Total liabilities | 155,242 | 167,963 |
Stockholders’ equity: | ||
Common stock, $0.001 par value per share; 30,000 shares authorized; 14,356 and 14,083 shares issued and outstanding | 14 | 14 |
Additional paid-in capital | 174,618 | 164,793 |
Retained earnings (accumulated deficit) | 9,715 | (5,024) |
Total stockholders’ equity | 184,347 | 159,783 |
Total liabilities and stockholders’ equity | $ 339,589 | $ 327,746 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,078 | $ 2,124 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 30,000 | 30,000 |
Common stock, shares issued (in shares) | 14,356 | 14,083 |
Common stock, shares outstanding (in shares) | 14,356 | 14,083 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales revenues: | |||
Sales revenues: | $ 274,634 | $ 280,411 | $ 276,927 |
Costs of sales (exclusive of amortization shown separately below): | |||
Total costs of sales | 130,489 | 130,683 | 129,654 |
Gross profit | 144,145 | 149,728 | 147,273 |
Operating expenses: | |||
Product development | 36,861 | 36,371 | 33,737 |
Sales and marketing | 27,774 | 30,713 | 33,021 |
General and administrative | 43,921 | 47,275 | 46,923 |
Amortization of acquisition-related intangibles | 11,006 | 10,487 | 10,406 |
Goodwill impairment | 0 | 0 | 28,000 |
Total operating expenses | 119,562 | 124,846 | 152,087 |
Operating income (loss) | 24,583 | 24,882 | (4,814) |
Other income (expense): | |||
Other income | 807 | 803 | 407 |
Gain on contingent consideration | 5,000 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | (1,340) |
Interest expense | (6,694) | (7,577) | (7,736) |
Total other income (expense) | (887) | (6,774) | (8,669) |
Income (loss) before taxes | 23,696 | 18,108 | (13,483) |
Provision for income taxes | 3,228 | 476 | 3,933 |
Net income (loss) | $ 20,468 | $ 17,632 | $ (17,416) |
Net income (loss) per share - basic (in dollars per share) | $ 1.43 | $ 1.26 | $ (1.27) |
Net income (loss) per share - diluted (in dollars per share) | $ 1.43 | $ 1.26 | $ (1.27) |
Weighted average shares outstanding used in per common share computations: | |||
Basic (in shares) | 13,778 | 13,561 | 13,419 |
Diluted (in shares) | 13,778 | 13,568 | 13,419 |
System sales and support | |||
Sales revenues: | |||
Sales revenues: | $ 165,352 | $ 180,164 | $ 188,261 |
Costs of sales (exclusive of amortization shown separately below): | |||
Total costs of sales | 73,872 | 75,984 | 80,018 |
TruBridge | |||
Sales revenues: | |||
Sales revenues: | 109,282 | 100,247 | 88,666 |
Costs of sales (exclusive of amortization shown separately below): | |||
Total costs of sales | $ 56,617 | $ 54,699 | $ 49,636 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Beginning balance (in shares) at Dec. 31, 2016 | 13,533 | |||
Beginning balance at Dec. 31, 2016 | $ 157,970 | $ 13 | $ 147,911 | $ 10,046 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (17,416) | (17,416) | ||
Issuance of restricted stock (in shares) | 226 | |||
Issuance of restricted stock | 1 | $ 1 | ||
Stock-based compensation | 7,166 | 7,166 | ||
Dividends | (11,636) | (11,636) | ||
Common stock issued upon exercise of stock options (in shares) | 1 | |||
Common stock issued upon exercise of stock options | 1 | 1 | ||
Ending balance (in shares) at Dec. 31, 2017 | 13,760 | |||
Ending balance at Dec. 31, 2017 | 136,086 | $ 14 | 155,078 | (19,006) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 17,632 | 17,632 | ||
Issuance of restricted stock (in shares) | 326 | |||
Issuance of restricted stock | 0 | |||
Forfeiture of common stock (in shares) | (3) | |||
Forfeiture of common stock | 0 | |||
Stock-based compensation | 9,715 | 9,715 | ||
Dividends | (5,620) | (5,620) | ||
Ending balance (in shares) at Dec. 31, 2018 | 14,083 | |||
Ending balance at Dec. 31, 2018 | 159,783 | $ 14 | 164,793 | (5,024) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 20,468 | 20,468 | ||
Issuance of restricted stock (in shares) | 272 | |||
Issuance of restricted stock | 0 | |||
Stock-based compensation | 9,822 | 9,822 | ||
Dividends | (5,729) | (5,729) | ||
Common stock issued upon exercise of stock options (in shares) | 1 | |||
Common stock issued upon exercise of stock options | 3 | 3 | ||
Ending balance (in shares) at Dec. 31, 2019 | 14,356 | |||
Ending balance at Dec. 31, 2019 | $ 184,347 | $ 14 | $ 174,618 | $ 9,715 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income (loss) | $ 20,468 | $ 17,632 | $ (17,416) |
Adjustments to net income (loss): | |||
Provision for bad debt | 2,348 | 3,176 | 3,421 |
Deferred taxes | 1,011 | (364) | 1,421 |
Stock based compensation | 9,822 | 9,715 | 7,166 |
Depreciation | 1,407 | 1,795 | 2,473 |
Amortization of acquisition-related intangibles | 11,006 | 10,487 | 10,406 |
Amortization of deferred finance costs | 345 | 345 | 645 |
Gain on contingent consideration | (5,000) | 0 | 0 |
Goodwill impairment | 0 | 0 | 28,000 |
Loss on extinguishment of debt | 0 | 0 | 1,340 |
Changes in operating assets and liabilities (net of acquired assets and liabilities): | |||
Accounts receivable | 641 | (3,898) | (7,847) |
Financing receivables | 3,053 | (9,473) | (17,308) |
Inventories | 72 | (81) | 280 |
Prepaid expenses and other | (1,475) | 549 | (30) |
Accounts payable | 2,542 | (1,952) | 779 |
Deferred revenue | (2,003) | 264 | 2,867 |
Other liabilities | (1,418) | (1,336) | 6,069 |
Prepaid income taxes/income taxes payable | 782 | (2,930) | 1,377 |
Net cash provided by operating activities | 43,601 | 23,929 | 23,643 |
Investing Activities | |||
Purchases of property and equipment | (1,760) | (978) | (726) |
Purchase of business, net of cash received | (10,733) | 0 | 0 |
Net cash used in investing activities | (12,493) | (978) | (726) |
Financing Activities | |||
Dividends paid | (5,729) | (5,620) | (11,636) |
Payments of long-term debt principal | (13,609) | (13,105) | (6,338) |
Proceeds from revolving line of credit | 11,000 | 7,300 | 777 |
Payments of revolving line of credit | (20,693) | (5,590) | (6,500) |
Payments on capital lease | (250) | (315) | (296) |
Payments of contingent consideration | (206) | (409) | (625) |
Proceeds from exercise of stock options | 3 | 0 | 1 |
Net cash used in financing activities | (29,484) | (17,739) | (24,617) |
Increase (decrease) in cash and cash equivalents | 1,624 | 5,212 | (1,700) |
Cash and cash equivalents at beginning of year | 5,732 | 520 | 2,220 |
Cash and cash equivalents at end of year | 7,356 | 5,732 | 520 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 6,342 | 7,138 | 6,953 |
Cash paid for income taxes, net of refund | 3,193 | 3,771 | 1,134 |
Supplemental disclosure of non-cash flow information: | |||
Write-off of fully depreciated assets | $ 0 | $ 8,244 | $ 6,049 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NATURE OF OPERATIONSComputer Programs and Systems, Inc. ("CPSI" or the "Company") is a healthcare information technology solutions provider which was formed and commenced operations in 1979. The Company provides, on an integrated basis, enterprise-wide clinical management, access management, patient financial management, health information management, strategic decision support, resource planning management and enterprise application integration solutions to healthcare organizations throughout the United States. Additionally, CPSI provides other information technology solutions, including business management services, remote hosting, networking technologies and other related services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge"), Evident, LLC ("Evident"), iNetXperts, Corp. d/b/a Get Real Health ("Get Real Health"), and Healthland Holding Inc. ("HHI"), all of which are wholly-owned subsidiaries of CPSI. The accounts of HHI include those of its wholly-owned subsidiaries, Healthland Inc. ("Healthland"), Rycan Technologies, Inc. ("Rycan"), and American HealthTech, Inc. ("AHT"). All significant intercompany balances and transactions have been eliminated. Cash and Cash Equivalents Cash and cash equivalents can include time deposits and certificates of deposit with original maturities of three months or less that are highly liquid and readily convertible to a known amount of cash. These assets are stated at cost, which approximates market value, due to their short duration or liquid nature. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company establishes a general allowance for doubtful accounts based on collections history. In the case of a bankruptcy filing or other similar event indicating the collectability of specific customer accounts is no longer probable, a specific allowance for doubtful accounts may be recorded to reduce the related receivable to the amount expected to be recovered. Financing Receivables Financing receivables are comprised of short-term payment plans and sales-type leases. Short-term payment plans are stated at the amount the Company expects to collect and do not bear interest. Sales-type leases are initially recorded at the present value of the related minimum lease payments, computed at the interest rate implicit in the lease, and are presented net of unearned income. Unearned income is amortized over the lease term to produce a constant periodic rate of return on the net investment in the lease (the interest method). An allowance for credit losses has been established for our financing receivables based on the historical level of customer defaults under such arrangements. In the case of a bankruptcy filing or other similar event indicating the collectability of specific customer accounts is no longer probable, a specific reserve may be recorded to reduce the related receivable to the amount expected to be recovered. Customer payments are considered past due if a scheduled payment is not received within contractually agreed upon terms, with amounts reclassified to accounts receivable when they become due. As a result, we evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of receivables and write-offs, customer collection experience, the customer’s financial condition and known risk characteristics impacting the respective customer base, as well as existing economic conditions, to determine if any further allowance is necessary. Amounts are specifically charged off once all available means of collection have been exhausted. Inventories Inventories are stated at lower of cost or net realizable value using the average cost method. The Company’s inventories are comprised of computer equipment, forms and supplies. Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation. Additions and improvements to property and equipment that materially increase productive capacity or extend the life of an asset are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. Upon retirement or other disposition of such assets, the related costs and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. Depreciation expense is computed using the straight-line method over the asset’s useful life, which is generally 5 years for computer equipment, furniture, and fixtures and 30 years for buildings. Leasehold improvements are depreciated over the shorter of the asset’s useful life or the remaining lease term. The Company reviews for the possible impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation expense is reported in the consolidated statements of operations as a component of costs of sales and operating expenses. Business Combinations We apply business combination accounting when we acquire a business. Business combinations are accounted for at fair value. The associated acquisition costs are expensed as incurred and recorded in general and administrative expenses; restructuring costs associated with a business combination are expenses; contingent consideration is measured at fair value at the acquisition date, with changes in fair value after the acquisition date affecting earnings; changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period affect income tax expense; and goodwill is determined as the excess of the fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired. The accounting for business combinations requires estimates and judgments as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair value for assets and liabilities acquired. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, are based on management's estimates and assumptions, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. The results of the acquired businesses' operations are included in the Consolidated Statements of Operations of the combined entity beginning on the date of the acquisition. We have applied this acquisition method to the transactions described in Note 3 - Business Combination. Goodwill Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the identifiable net tangible and intangible assets acquired. Goodwill is not amortized but is evaluated for impairment annually or more frequently if indicators of impairment are present or changes in circumstances suggest that impairment may exist. We test annually for impairment as of October 1. As part of our annual goodwill impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a quantitative goodwill impairment assessment. The first step of the quantitative goodwill impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. The Company early adopted Accounting Standards Update 2017-04 on January 1, 2017, which eliminates the second step of the goodwill impairment analysis. Therefore, if the carrying amount of the reporting unit exceeds its fair value in the first step of the goodwill impairment test, an impairment charge is recognized for the amount by which the carrying amount exceeds the total amount of goodwill allocated to that reporting unit. If the fair value of the reporting unit exceeds its carrying amount, the goodwill of the reporting unit is not considered to be impaired. We did not identify any events or circumstances that would require interim goodwill impairment testing prior to October 1, 2017. Based on our assessment as of October 1, 2017, we determined that there was no impairment of goodwill for our Acute Care EHR and TruBridge reporting units. We also determined as of October 1, 2017, that it was more likely than not that we did not have an impairment of our Post-acute Care EHR reporting unit. During the fourth quarter of 2017, the cumulation of events, including anticipated attrition of significant post-acute customer accounts and a product development acceleration plan for our post-acute EHR software, triggered management to re-assess future discounted cash flow projections incorporated in the October 1, 2017 annual assessment to include updated assumptions for the aforementioned fourth quarter events impacting the Post-acute Care EHR reporting unit. The result of our fair value assessment, which applied a combination of the income and market valuation approach, measured the reporting unit's fair value less than the reporting unit's carrying value. A goodwill impairment of $28.0 million was recorded against our Post-acute Care EHR reporting unit for the year ended December 31, 2017. We determined there was no impairment to goodwill for the years ended December 31, 2018 and 2019. Purchased Intangible Assets Purchased intangible assets are acquired in connection with a business acquisition, and are amortized over their estimated useful lives based on the pattern of economic benefit expected from each asset. We concluded for certain purchased intangible assets that the pattern of economic benefit approximated the straight-line method, and therefore, the use of the straight-line method was appropriate, as the majority of the cash flows will be recognized ratably over the estimated useful lives and there is no degradation of the cash flows over time. We assess the recoverability of intangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The carrying amount is not recoverable if it exceeds the undiscounted sum of cash flows expected to result from the use and eventual disposition of the asset. If the asset is not recoverable, the impairment loss is measured by the excess of the asset's carrying amount over its fair value. During the fourth quarter of 2017, the cumulation of events, including anticipated attrition of significant post-acute customer accounts and a product development acceleration investment plan in our Post-acute Care EHR software, triggered management to assess the recoverability of purchased intangible assets related to our Post-acute Care EHR asset group. We determined there was no impairment to purchased intangible assets as of December 31, 2019, 2018 or 2017. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to clients in an amount that reflects the consideration we expect to receive in exchange for those products and services. We enter into contracts that can include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. The Company employs the 5-step revenue recognition model under ASC 606 to: (1) identify the contract with the client, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue is recognized net of shipping charges and any taxes collected from clients, which are subsequently remitted to governmental authorities. • System Sales and Support The Company enters into contractual obligations to sell perpetual software licenses, installation, conversion, and related training services, hardware and software application support, and hardware maintenance services to acute care and post-acute care community hospitals. • Non-recurring Revenues • Perpetual software licenses and installation, conversion, and related training services are not considered separate and distinct performance obligations due to the proprietary nature of our software and are, therefore, accounted for as a single performance obligation on a module-by-module basis. Revenue is recognized as each module's implementation is completed based on the module's stand-alone selling price ("SSP"), net of discounts. Fees for licenses and installation, conversion, and related training services are typically due in three installments: (1) at placement of order, (2) upon installation of software and commencement of training, and (3) upon satisfactory completion of monthly accounting cycle or end-of-month operation by application and as applicable for each application. Often, short-term and/or long-term financing arrangements are provided for software implementations; refer to Note 10 - Financing Receivables for further information. Electronic health records ("EHR") implementations include a system warranty that terminates thirty days from the software go-live date, the date which the client begins using the system in a live environment. • Hardware revenue is recognized separately from software licenses at the point in time it is delivered to the client. The SSP of hardware is cost plus a reasonable margin and revenue is recognized on a gross basis. Payment is generally due upon delivery of the hardware to the client. Standard manufacturer warranties apply to hardware. • Recurring Revenues • Software application support and hardware maintenance services sold with software licenses and hardware are separate and distinct performance obligations. Revenue for support and maintenance services is recognized based on SSP, which is the renewal price, ratably over the life of the contract, which is generally three to five years. Payment is due monthly for support services provided. • Subscriptions to third-party content revenue is recognized as a separate performance obligation ratably over the subscription term based on SSP, which is cost plus a reasonable margin, and revenue is recognized on a gross basis. Payment is due monthly for subscriptions to third party content. • Software as a Service ("SaaS") arrangements for EHR software and related conversion and training services are considered a single performance obligation. Revenue is recognized on a monthly basis as the SaaS service is provided to the client over the contract term. Payment is due monthly for SaaS services provided. Refer to Note 17 for further information, including revenue by client base (acute care or post-acute care) bifurcated by recurring and non-recurring revenue. • TruBridge TruBridge provides an array of business processing services ("BPS") consisting of accounts receivable management, private pay services, insurance services, medical coding, electronic billing, statement processing, payroll processing, and contract management. Fees are recognized over the period of the client contractual relationship as the services are performed based on the SSP, net of discounts. Fees for many of these services are invoiced, and revenue recognized accordingly, based on the volume of transactions or a percentage of client accounts receivable collections. Payment is due monthly for BPS with certain amounts varying based on utilization and/or volumes. TruBridge also provides professional IT services. Revenue from professional IT services is recognized as the services are performed based on SSP. Payment is due monthly as services are performed. • Deferred Revenue Deferred revenue represents amounts invoiced to clients for which the services under contract have not been completed and revenue has not been recognized, including annual renewals of certain software subscriptions and customer deposits for implementations to be performed at a later date. Revenue is recognized ratably over the life of the software subscriptions as services are provided and at the point-in-time when implementations have been completed. The following table details deferred revenue for the years ended December 31, 2019 and 2018, included in the consolidated balance sheets: For years ended December 31, (In thousands) 2019 2018 Beginning balance $ 10,201 $ 9,937 Deferred revenue recorded 20,507 19,818 Deferred revenue acquired 430 — Less deferred revenue recognized as revenue (22,510) (19,554) Ending balance $ 8,628 8628000 $ 10,201 The deferred revenue recorded for years ended December 31, 2019 and 2018 is comprised primarily of the annual renewals of certain software subscriptions billed during during the first quarter of each year and deposits collected for future EHR installations. The deferred revenue acquired resulted from the May 2019 acquisition of Get Real Health. The deferred revenue recognized as revenue during the years ended December 31, 2019 and 2018 is comprised primarily of the periodic recognition of annual renewals that were deferred until earned and deposits for future EHR installations that were deferred until earned. • Costs to Obtain and Fulfill a Contract with a Customer Costs to obtain a contract include the commission costs related to SaaS arrangements, which are capitalized and amortized ratably over the expected life of the customer. As a practical expedient, we generally recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would have been one year or less, with the exception of commissions generated from TruBridge sales. TruBridge commissions, which are paid up to twelve months in advance, are capitalized and amortized over the prepayment period. Costs to obtain a contract are expensed within sales and marketing expenses in the accompanying consolidated statements of operations. Contract fulfillment costs related to the implementation of SaaS arrangements are capitalized and amortized ratably over the expected life of the customer. Costs to fulfill contracts consist of the payroll costs for the implementation of SaaS arrangements, including time for training, conversion, and installation that is necessary for the software to be utilized. Contract fulfillment costs are expensed within the caption "System sales and support - Cost of sales" in the accompanying consolidated statements of operations. Costs to obtain and fulfill contracts related to SaaS arrangements are included within the "Prepaid expenses and other" and "Other assets, net of current portion" line items on our consolidated balance sheets. The following table details costs to obtain and fulfill contracts with customers for the years ended December 31, 2019 and 2018, included in the consolidated balance sheets: For years ended December 31, (In thousands) 2019 2018 Beginning balance $ 3,017 $ 3,775 Costs to obtain and fulfill contracts capitalized 6,246 3,345 Less costs to obtain and fulfill contracts recognized as expense (4,824) (4,103) Ending balance $ 4,439 $ 3,017 • Significant Judgments Our contracts with clients often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine SSP for each distinct performance obligation. We use observable SSP for items that are sold on a stand-alone basis to similarly situated clients at unit prices within a sufficiently narrow range. For performance obligations that are sold to different clients for a broad range of amounts, or for performance obligations that are never sold on a stand-alone basis, the residual method in determining SSP is applied and requires significant judgment. Allocating the transaction price, including estimating SSP of promised goods and services for contracts with discounts or variable consideration, may require significant judgment. Due to the short time frame of the implementation cycle, discount allocation is immaterial as revenue is recognized net of discounts within the same reporting period. In scenarios where the Company enters into a contract that includes both a software license and BPS or other services that are charged based on volume of services rendered, the Company allocates variable amounts entirely to a distinct good or service. The terms of the variable payment relate specifically to the entity’s efforts to satisfy that performance obligation. Significant judgment is required in determining the expected life of a customer, which is the amortization period for costs to obtain and fulfill a contract that have been capitalized. The Company determined that the expected life of the customer is not materially different from the initial contract term based on the characteristics of the SaaS offering. • Remaining Performance Obligations Disclosures regarding remaining performance obligations are not considered material as the overwhelming majority of the Company's remaining performance obligations either (a) are related to contracts with an expected duration of one year or less, or (b) exhibit revenue recognition in the amount to which the Company has the right to invoice. Stock-Based Compensation The Company accounts for stock-based compensation according to the provisions of FASB Codification topic, Compensation – Stock Compensation, which establishes accounting for stock-based awards exchanged for employee services. Accordingly, 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. Product Development Costs Product development costs are expensed as incurred. Product development costs totaled approximately $36.9 million, $36.4 million, and $33.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Income Taxes We account for income taxes in accordance with FASB Codification topic, Income Taxes . Under this topic, deferred income taxes are determined utilizing the asset and liability approach. This method gives consideration to the future tax consequences associated with differences between financial accounting and tax bases of assets and liabilities. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize interest and penalties accrued related to unrecognized tax benefits in the consolidated statements of operations as a component of the provision for income taxes. We also make a provision for uncertain income tax positions in accordance with the Income Taxes Codification topic. These provisions require that a tax position taken in a tax return be recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement. The topic also requires that changes in judgment that result in subsequent recognition, derecognition, or change in a measurement date of a tax position taken in a prior annual period (including any related interest and penalties) be recognized as a discrete item in the interim period in which the change occurs. Valuation allowances are recorded when, in the opinion of management, it is more likely than not that all or a portion of the deferred tax assets will not be realized. These valuation allowances can be impacted by changes in tax laws, changes to statutory tax rates, and future taxable income, and are based on our judgment, estimates, and assumptions. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is evaluated by the chief operating decision maker, which we refer to as the CODM, or decision-making group in assessing performance and making decisions regarding resource allocation. The Company has prepared operating segment information based on the manner in which management disaggregates the Company's operations for making internal operating decisions. See Note 17. New Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new guidance requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. We adopted this guidance as of January 1, 2019 using the current period adjustment method. The impact on the financial statements of implementation of this standard was an increase in lease assets and lease liabilities of $4.9 million as of the adoption date, January 1, 2019. Adoption of the standard did not significantly impact our consolidated net earnings or cash flows. New Accounting Standards Yet to be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses , which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2019, which is effective for the Company as of the first quarter of our fiscal year ending December 31, 2020. The Company does not expect a material impact due to the implementation of this standard on its consolidated financial statements. We do not believe that any other recently issued but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination | BUSINESS COMBINATION Acquisition of Get Real Health On May 3, 2019, we acquired all of the assets and liabilities of iNetXperts, Corp., a Maryland corporation doing business as Get Real Health (“Get Real Health”), pursuant to a Stock Purchase Agreement dated April 23, 2019, as amended on May 2, 2019. Based in Rockville, Maryland, Get Real Health delivers technology solutions to improve patient outcomes and engagement strategies with care providers. Consideration for the acquisition included cash (net of cash of the acquired entity) of $10.8 million (inclusive of seller's transaction expenses), plus a contingent earnout payment of up to $14.0 million tied to Get Real Health's earnings before interest, tax, depreciation, and amortization ("EBITDA") (subject to certain pro-forma adjustments) for 2019. As of December 31, 2019, the $5.0 million contingent consideration estimated in the allocation of purchase price paid was fully reversed as Get Real Health's earnings did not achieve the required level for earnout payment. During 2019, we incurred approximately $0.6 million of pre-tax acquisition costs in connection with the acquisition of Get Real Health. Acquisition costs are included in general and administrative expenses in our consolidated statements of income. Our acquisition of Get Real Health will be treated as a purchase in accordance with ASC 805, Business Combinations , which requires allocation of the purchase price to the estimated fair values of assets and liabilities acquired in the transaction. Our allocation of the purchase price is based on management's judgment after evaluating several factors, including a preliminary valuation assessment. The allocation is preliminary and subject to changes, which could be significant, as additional information becomes available and appraisals of intangible assets and deferred tax positions are finalized. The allocation of the purchase price paid for Get Real Health as of December 31, 2019 was as follows: (In thousands) Purchase Price Allocation Acquired cash $ 159 Accounts receivable 364 Prepaid expenses 107 Property and equipment 365 Operating lease asset 1,285 Intangible assets 7,890 Goodwill 9,767 Accounts payable and accrued liabilities (594) Deferred taxes, net (1,736) Operating lease liability (1,285) Contingent consideration (5,000) Deferred revenue (430) Net assets acquired $ 10,892 The intangible assets in the table above are being amortized on a straight-line basis over their estimated useful lives. The amortization is included in amortization of acquisition-related intangibles in our condensed consolidated statements of income. The fair value measurements of tangible and intangible assets and liabilities were based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value measurement hierarchy (see Note 15 - Fair Value). Level 3 inputs included, among others, discount rates that we estimated would be used by a market participant in valuing these assets and liabilities, projections of revenues and cash flows, client attrition rates and market comparables. Our condensed consolidated statement of operations for the year ended December 31, 2019 includes revenues of approximately $3.4 million, and pre-tax loss of approximately $0.1 million, attributed to the acquired business since the May 3, 2019 acquisition date. The following unaudited pro forma revenue, net income and earnings per share amounts for the years ended December 31, 2019 and 2018 give effect to the Get Real Health acquisition as if it had been completed on January 1, 2018. The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the periods presented had the Get Real Health acquisition been completed during the periods presented. In addition, the unaudited pro forma financial information does not purport to project future operating results. The pro forma information does not fully reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the Get Real Health acquisition. Year Ended December 31, (In thousands, except per share data, unaudited) 2019 2018 Pro forma revenues $ 276,097 $ 283,994 Pro forma net income $ 19,077 $ 15,172 Pro forma diluted earnings per share $ 1.38 $ 1.12 Pro forma net income was calculated by adjusting the results for the applicable period to reflect (i) the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2018 and (ii) adjustments to amortized revenue during fiscal 2019 and 2018 as a result of the acquisition date valuation of assumed deferred revenue. The pro forma results for each period also reflect the pro forma adjustment to interest expense as a result of utilizing revolver debt to finance the acquisition. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment were comprised of the following at December 31, 2019 and 2018: (In thousands) 2019 2018 Land $ 2,848 $ 2,848 Buildings and improvements 8,039 7,752 Computer equipment 4,011 2,766 Leasehold improvements 1,712 1,198 Office furniture and fixtures 2,018 1,938 Automobiles 18 18 18,646 16,520 Less: accumulated depreciation (7,053) (5,645) Property and equipment, net $ 11,593 $ 10,875 |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES Other accrued liabilities were comprised of the following at December 31, 2019 and 2018: (In thousands) 2019 2018 Salaries and benefits $ 6,946 $ 8,722 Severance 329 992 Commissions 1,037 830 Self-insurance reserves 1,382 1,017 Contingent consideration — 206 Other 529 452 Operating lease liabilities, current portion 1,544 — Other accrued liabilities $ 11,767 $ 12,219 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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 (loss) and net income (loss) attributable to common stockholders for the years ended December 31, 2019, 2018, and 2017: (In thousands, except for per share data) 2019 2018 2017 Basic EPS Numerator Net income (loss) $ 20,468 $ 17,632 $ (17,416) Less: Net (income) loss attributable to participating securities (764) (595) 316 Net income (loss) attributable to common stockholders $ 19,704 $ 17,037 $ (17,100) Denominator Weighted average shares outstanding used in basic per common share computations 13,778 13,561 13,419 Basic EPS $ 1.43 $ 1.26 $ (1.27) Diluted EPS Numerator Net income (loss) attributable to common stockholders for diluted EPS $ 19,704 $ 17,037 $ (17,100) Denominator Weighted average shares outstanding used in basic per common share computations 13,778 13,561 13,419 Weighted average effect of dilutive securities: Performance share awards — 7 — Weighted average shares outstanding used in diluted per common share computations 13,778 13,568 13,419 Diluted EPS $ 1.43 $ 1.26 $ (1.27) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company accounts for income taxes in accordance with the FASB’s Codification topic, Income Taxes . These provisions require a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company did not have any unrecognized tax positions as of December 31, 2019 and 2018. The federal returns for tax years 2016 through 2018 remain open to examination, and the tax years 2015 through 2018 remain open to examination by certain other taxing jurisdictions to which the Company is subject. Additional years may be open to the extent attributes are being carried forward to an open year. 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 December 31, 2019 and 2018: (In thousands) 2019 2018 Deferred tax assets: Accounts receivable and financing receivables $ 1,221 $ 1,112 Accrued vacation 653 529 Stock-based compensation 2,886 2,264 Deferred revenue 257 250 Accrued severance 24 173 Fixed assets 1,347 — Credits 3,072 1,984 Net operating loss 7,770 10,347 Deferred tax assets 17,230 16,659 Less: Valuation allowance 801 456 Total deferred tax assets $ 16,429 $ 16,203 Deferred tax liabilities: Intangible assets $ 20,960 $ 19,957 Accrued liabilities and other 3,092 897 Fixed assets — 226 Total deferred tax liabilities $ 24,052 $ 21,080 Total net deferred tax liability $ (7,623) $ (4,877) Significant components of the income tax provision for the years ended December 31, 2019, 2018 and 2017 were as follows: (In thousands) 2019 2018 2017 Current provision: Federal $ 860 $ (594) $ 1,535 State 1,357 1,434 977 Deferred provision: Federal 951 649 1,070 State 60 (1,013) 351 Total income tax provision $ 3,228 $ 476 $ 3,933 The difference between income taxes at the U.S. federal statutory income tax rate of 21% for the years ended December 31, 2019 and 2018, and 35% for the year ended December 31, 2017, and those reported in the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 are as follows: (In thousands) 2019 2018 2017 Income taxes at U.S. federal statutory rate $ 4,976 $ 3,803 $ (4,584) Provision-to-return adjustments (66) (112) 433 State income tax, net of federal tax effect 978 1,109 458 Domestic production activities deduction — — (280) Tax credits (2,196) (3,428) (393) Contingent consideration (1,050) — — Goodwill impairment — — 9,520 Stock-based compensation 151 356 1,155 Deferred impact of tax reform — — (1,890) Change in valuation allowance 173 (1,149) (304) Other 262 (103) (182) Total income tax provision $ 3,228 $ 476 $ 3,933 Our effective tax rates for the years ended December 31, 2019, 2018 and 2017 were 14%, 3% and (29)%, respectively. Our effective tax rate for 2019 was significantly impacted by the non-taxable nature of our recorded gain on contingent consideration, which served to reduce the year's effective tax rate by over 4%. Our effective tax rate for 2018 was significantly impacted by our implementation of the ASC 730 Safe Harbor Directive, which significantly increased our estimated R&D tax credits for the 2017 and 2018 tax years. Our effective tax rate for 2017 was based on a then-statutory corporate tax rate of 35%, which was subsequently reduced to 21% pursuant to the Tax Cuts and Jobs Act, and significantly impacted by tax shortfalls related to stock-based compensation resulting from our adoption of ASU 2016-09, the non-deductible nature of our goodwill impairment charges, and the effect of recent tax reform legislation. These three factors combined for a net $8.8 million tax expense impact during 2017, affecting the period's effective tax rate by approximately 65%. We have federal net operating loss carryforwards related to the acquisition of HHI and Get Real Health of $53.9 million, $40.5 million, and $27.9 million for the years ending December 31, 2017, 2018, and 2019, respectively, which expire at various dates from 2026 to 2035. We have state net operating loss carryforwards related to the acquisition of HHI and Get Real Health of $37.1 million, $34.5 million, and $34.4 million for the years ending December 31, 2017, 2018, and 2019, respectively, which expire at various dates from 2023 to 2036. Realization of deferred tax assets associated with the state net operating loss carryforward is dependent upon generating sufficient taxable income prior to their expiration. We believe it is more likely than not that the benefit from certain state NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance on the deferred tax assets related to these state NOL carryforwards of $0.5 million after December 31, 2018 and $0.8 million after December 31, 2019. The change in valuation allowance was based on evidence supporting that certain state NOL carryforwards associated with the acquisition of Get Real Health may not be realized. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's stock-based compensation awards are in the form of restricted stock and performance share awards granted pursuant to the Company's 2012 Restricted Stock Plan for Non-Employee Directors, Amended and Restated 2014 Incentive Plan and 2019 Incentive Plan (the "Plans"). 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. As of December 31, 2019, there were a total o f 833,895 sh ar es of common stock reserved under the Plans for issuance under future share-based payment arrangements. The following table details total stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, included in the consolidated statements of operations: (In thousands) 2019 2018 2017 Costs of sales $ 2,040 $ 2,134 $ 1,750 Operating expenses 7,782 7,581 5,416 Pre-tax stock-based compensation expense 9,822 9,715 7,166 Less: income tax effect (2,063) (2,040) (2,795) Net (after tax) stock-based compensation expense $ 7,759 $ 7,675 $ 4,371 As of December 31, 2019, there was $9.6 million of unrecognized compensation cost related to unvested or unearned, as applicable, stock-based compensation arrangements granted under the Plans, which is expected to be recognized over a weighted-average period of 1.6 years. 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 three 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 during the years ended December 31, 2019, 2018 and 2017 is as follows: Shares Weighted-Average Grant-Date Fair Value Unvested stock outstanding at January 1, 2017 184,885 $ 54.63 Granted 225,954 32.79 Vested (101,644) 55.58 Unvested stock outstanding at December 31, 2017 309,195 $ 38.36 Granted 148,841 30.20 Performance share awards converted to restricted stock 177,395 29.94 Vested (156,988) 40.52 Forfeited (3,311) 30.20 Unvested stock outstanding at December 31, 2018 475,132 $ 32.00 Granted 133,936 30.89 Performance share awards converted to restricted stock 138,566 29.80 Vested (221,775) 33.48 Unvested stock outstanding at December 31, 2019 525,859 $ 30.51 Performance Share Awards The Company grants performance share awards to executive officers and certain key employees under the Amended and Restated 2014 Incentive Plan prior to 2019 and under the 2019 Incentive Plan beginning in 2019. The number of shares of common stock earned and issuable under each award is determined at the end of each one three three One Three In the event that the Company's financial performance meets the predetermined targets for the performance objectives of the one three 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 one-year performance share awards is the quoted market value of CPSI's common stock on the grant date less the present value of the expected dividends not received during the relevant period. The TSR modifier applicable to the three-year performance share awards is considered a market condition and therefore is reflected in the grant date fair value of the award. A Monte Carlo simulation has been used to account for this market condition in the grant date fair value of the award. Expense of one-year performance share awards 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. Expense of three-year performance share awards is recognized using ratable straight-line amortization over the three-year performance period. 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 Plans for the years ended December 31, 2019, 2018 and 2017, is as follows, based on the target award amounts set forth in the performance share award agreements: Shares Weighted-Average Grant-Date Fair Value Performance share awards outstanding at January 1, 2017 77,594 $ 49.64 Granted 189,325 29.94 Forfeited or unearned (77,594) 49.64 Performance share awards outstanding at December 31, 2017 189,325 $ 29.94 Granted 184,776 30.15 Forfeited or unearned (11,930) 29.94 Performance share awards converted to restricted stock (177,395) 29.94 Performance share awards outstanding at December 31, 2018 184,776 $ 30.15 Granted 110,310 30.95 Adjusted for actual perfromance, net of forfeitures 44,189 29.77 Performance share awards converted to restricted stock (138,566) 29.80 Performance share awards outstanding at December 31, 2019 200,709 $ 30.75 |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | CONCENTRATION OF CREDIT RISK Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of temporary cash investments and trade receivables (including financing receivables). The Company places its temporary cash investments with credit-worthy, high-quality financial institutions. The Company’s customer base is concentrated in the healthcare industry. Customers are located throughout the United States. The Company requires no collateral or other security to support customer trade receivables. An allowance for doubtful accounts and allowance for credit losses has been established for potential credit losses based on historical collection experience. The Company maintains its cash and cash equivalents in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Financing Receivables | FINANCING RECEIVABLES Total financing receivables were $30.3 million as of December 31, 2019, compared with $34.3 million as of December 31, 2018. Short-Term Payment Plans The Company provides fixed monthly payment arrangements ("short-term payment plans") over terms ranging from three to twelve months for meaningful use stage three and other add-on software installations. As a practical expedient, we do not adjust the amount of consideration recognized as revenue for the financing component as unearned income when we expect payment within one year or less. These receivables, included in the current portion of financing receivables, were comprised of the following on December 31, 2019 and 2018: (In thousands) 2019 2018 Short-term payment plans, gross $ 2,361 $ 5,773 Less: allowance for losses (165) (404) Short-term payment plans, net $ 2,196 $ 5,369 Long-Term Financing Arrangements Additionally, the Company provides financing for purchases of its information and patient care systems to certain healthcare providers under long-term financing arrangements expiring in various years through 2026. Under long-term financing arrangements, the transaction price is adjusted by a discount rate that reflects market conditions and that would be used for a separate financing transaction between the Company and licensee at contract inception, and takes into account the credit characteristics of the licensee and market interest rates as of the date of the agreement. As such, the amount of fixed fee revenue recognized at the beginning of the license term will be reduced by the calculated financing component. As payments are received from the licensee, the Company recognizes a portion of the financing component as interest income, reported as other income in the consolidated statements of operations. These receivables typically have terms from two to seven years. The components of these receivables were as follows on December 31: (In thousands) 2019 2018 Long-term financing arrangements, gross $ 34,483 $ 34,841 Less: allowance for losses (2,806) (2,163) Less: unearned income (3,574) (3,725) Long-term financing arrangements, net $ 28,103 $ 28,953 Future minimum payments to be received subsequent to December 31, 2019 are as follows: (In thousands) 2020 $ 12,085 2021 10,468 2022 6,435 2023 3,368 2024 1,709 Thereafter 418 Total minimum payments to be received 34,483 Less: allowance for losses (2,806) Less: unearned income (3,574) Receivables, net $ 28,103 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 years ended December 31, 2019 and 2018: (In thousands) Beginning Balance Provision Charge-offs Recoveries Ending Balance December 31, 2019 $ 2,567 $ 970 $ (566) $ — $ 2,971 December 31, 2018 $ 3,244 $ 1,691 $ (2,368) $ — $ 2,567 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 long-term financing arrangements within our target market of 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 community hospitals, the most notable of which relate to enacted and potential changes in Medicare and Medicaid reimbursement rates as 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. 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 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 December 31, 2019 and December 31, 2018: (In thousands) 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due December 31, 2019 $ 1,480 $ 150 $ 207 $ 1,837 December 31, 2018 $ 1,302 $ 210 $ 245 $ 1,757 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 the financing receivables or the financing receivables, current portion, net amounts in the accompanying 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, based on the age of the oldest payment outstanding that has been reclassified to trade accounts receivable: (In thousands) December 31, 2019 December 31, 2018 Stratification of uninvoiced client financing receivables based on aging of related trade accounts receivable: Uninvoiced client financing receivables related to trade accounts receivable that are 1 to 90 Days Past Due $ 18,015 $ 17,290 Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due 2,136 2,247 Uninvoiced client financing receivables related to trade accounts receivable that are 181+Days Past Due 1,972 885 Total uninvoiced client financing receivables balances of clients with a trade accounts receivable $ 22,123 $ 20,422 Total uninvoiced client financing receivables of clients with no related trade accounts receivable 8,786 10,694 Total financing receivables with contractual maturities of one year or less 2,361 5,773 Less: allowance for losses (2,971) (2,567) Total financing receivables $ 30,299 $ 34,322 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | INTANGIBLE ASSETS AND GOODWILL Our purchased definite-lived intangible assets as of December 31, 2019 and 2018 are summarized as follows: (In thousands) Customer Relationships Trademark Developed Technology Total Gross carrying amount as of December 31, 2017 and 2018 $ 82,300 $ 10,900 $ 24,100 $ 117,300 Accumulated amortization as of December 31, 2018 (19,476) (2,613) (8,985) (31,074) Net intangible assets as of December 31, 2018 62,824 8,287 15,115 86,226 Intangible assets acquired for year ended December 31, 2019 2,070 220 5,600 7,890 Amortization expenses for year ended December 31, 2019 (6,980) (836) (3,190) (11,006) Net intangible assets as of December 31, 2019 $ 57,914 $ 7,671 $ 17,525 $ 83,110 Weighted average remaining years of useful life 9 12 5 9 The following table represents the remaining amortization of definite-lived intangible assets as of December 31, 2019: (In thousands) For the year ended December 31, 2020 $ 11,421 2021 11,003 2022 10,904 2023 10,904 2024 9,681 Due thereafter 29,197 Total $ 83,110 The following table sets forth the change in the carrying amount of goodwill by segment for the years ended December 31, 2019, 2018, and 2017: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2016 $ 97,095 $ 57,570 $ 13,784 $ 168,449 Goodwill impairment — (28,000) — (28,000) Balance as of December 31, 2017 and 2018 97,095 29,570 13,784 140,449 Goodwill acquired — — 9,767 9,767 Balance as of December 31, 2019 $ 97,095 $ 29,570 $ 23,551 $ 150,216 During 2017, the result of our fair value assessment of the Post-acute Care EHR reporting unit, which applied a combination of the income and market valuation approach, measured the reporting unit's fair value less than the reporting unit's carrying value. A goodwill impairment of $28.0 million was recorded against our Post-acute Care EHR reporting unit as of December 31, 2017 as a result of anticipated attrition of significant post-acute customer accounts and a product development acceleration plan for our post-acute EHR software. We determined there was no impairment to goodwill as of December 31, 2019 or 2018. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt was comprised of the following at December 31, 2019 and 2018: (In thousands) December 31, 2019 December 31, 2018 Term loan facility $ 88,823 102,432 Revolving credit facility 20,000 29,693 Capital lease obligation — 250 Debt obligations 108,823 132,375 Less: debt issuance costs (960) (1,306) Debt obligation, net 107,863 131,069 Less: current portion (8,430) (6,486) Long-term debt $ 99,433 $ 124,583 As of December 31, 2019, the carrying value of debt approximates the fair value due to the variable interest rate which reflects market rates. Credit Agreement In conjunction with our acquisition of HHI in January 2016, we entered into a syndicated credit agreement with Regions Bank ("Regions") serving as administrative agent, which provided for a $125 million term loan facility and a $50 million revolving credit facility. On February 8, 2018, we entered into a Third Amendment that establishes the aggregate principal amount of our credit facilities of $167 million, which includes a $117 million term loan facility and a $50 million revolving credit facility. Each of our credit facilities continues to bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) the Adjusted LIBOR rate for the relevant interest period, (2) an alternate base rate determined by reference to the greater of (a) the prime lending rate of Regions, (b) the federal funds rate for the relevant interest period plus one half of one percent per annum and (c) the one month LIBOR rate plus one percent per annum, or (3) a combination of (1) and (2). The applicable margin range for LIBOR loans and the letter of credit fee ranges from 2.0% to 3.5%. The applicable margin range for base rate loans ranges from 1.0% to 2.5%, in each case based on the Company's consolidated leverage ratio. Principal payments with respect to the term loan facility are due on the last day of each fiscal quarter beginning December 31, 2017, with quarterly principal payments of approximately $1.5 million through September 30, 2019, approximately $2.2 million through September 30, 2021 and approximately $2.9 million through September 30, 2022, with maturity on October 13, 2022 or such earlier date as the obligations under the credit agreement become due and payable pursuant to the terms of the credit agreement. Any principal outstanding under the revolving credit facility is due and payable on the maturity date. Anticipated annual future maturities of the term loan facility, revolving credit facility, and capital lease obligation are as follows as of December 31, 2019: (In thousands) 2020 $ 8,775 2021 9,506 2022 90,542 2023 — Thereafter — $ 108,823 Our credit facilities are secured pursuant to a Pledge and Security Agreement, dated January 8, 2016, among the parties identified as obligors therein and Regions, as collateral agent, on a first priority basis by a security interest in substantially all of the tangible and intangible assets (subject to certain exceptions) of the Company and certain subsidiaries of the Company, as guarantors (collectively, the “Subsidiary Guarantors”), including certain registered intellectual property and the capital stock of certain of the Company’s direct and indirect subsidiaries. Our obligations under the credit agreement are also guaranteed by the Subsidiary Guarantors. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | BENEFIT PLANS In January 1994, the Company adopted the CPSI 401(k) Retirement Plan that covers all eligible employees of the Company who have completed one year of service. The plan allows eligible employees to contribute up to 60% of their pre-tax earnings up to the statutory limit prescribed by the Internal Revenue Service. The Company matches a discretionary amount determined by the Board of Directors. The Company contributed approximately $2.9 million, $2.6 million, and $2.6 million to the plan for the years ended December 31, 2019, 2018 and 2017, respectively. The Company provides certain health and medical benefits to eligible employees, their spouses and dependents pursuant to a benefit plan funded by the Company. Each participating employee contributes to the Company’s costs associated with such benefit plan. The Company’s obligation to fund this benefit plan and pay for these benefits is limited through the Company’s purchase of an insurance policy from a third-party insurer. The amount established as a reserve is intended to recognize the Company’s estimated obligations with respect to its payment of claims and claims incurred but not yet reported under the benefit plan. Management believes that the recorded liability for medical self-insurance at December 31, 2019 and 2018 is adequate to cover the losses and claims incurred, but these reserves are based on estimates and the amount ultimately paid may be more or less than such estimates. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | OPERATING LEASES The Company leases office space in various locations in Alabama, Louisiana, Pennsylvania, Minnesota, Maryland, and Mississippi. These leases have terms expiring from 2020 through 2030 but do contain optional extension terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Supplemental balance sheet information related to operating leases is as follows: (In thousands) December 31, 2019 Operating lease assets: Operating lease assets $ 7,800 Operating lease liabilities: Other accrued liabilities 1,544 Operating lease liabilities, net of current portion 6,256 Total operating lease liabilities $ 7,800 Weighted average remaining lease term in years 7 Weighted average discount rate 5.1% Because our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We used the incremental borrowing rate on January 1, 2019, for operating leases that commenced prior to that date. The future minimum lease payments payable under these operating leases subsequent to December 31, 2019 are as follows: (In thousands) 2020 $ 1,544 2021 1,518 2022 1,436 2023 1,363 2024 980 Thereafter 2,383 Total lease payments 9,224 Less imputed interest (1,424) Total $ 7,800 Total rent expense for the years ended December 31, 2019, 2018, and 2017 was $2.2 million, $2.6 million, and $2.6 million, respectively. Total cash paid for amounts included in the measurement of lease liabilities within operating cash flows from operating leases for the year ended December, 2019 was $1.6 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIESFrom 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 | 12 Months Ended |
Dec. 31, 2019 | |
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 topic 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 topic 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. As of December 31, 2019, we did not have any instruments that require fair value measurement. The accrued contingent consideration depicted below represents the potential earnout incentive for former Rycan shareholders, relating to the purchase of Rycan by HHI in 2015. We estimated the fair value of the contingent consideration based on the amount of revenue that was earned by Rycan for the year ended December 31, 2018 in accordance with the purchase agreement. The following table summarizes the carrying amount and the fair value of the contingent consideration at December 31, 2018: Fair Value at December 31, 2018 Using Quoted Prices in Carrying Active Markets for Significant Other Significant Amount at Identical Assets Observable Inputs Unobservable Inputs (In thousands) 12/31/2018 (Level 1) (Level 2) (Level 3) Description Contingent consideration $ 206 $ — $ — $ 206 Total $ 206 $ — $ — $ 206 The carrying amount of other financial instruments reported in the consolidated balance sheets for current assets and current liabilities approximates their fair values because of the short-term nature of these instruments. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING Our chief operating decision makers ("CODM") utilize three operating segments, "Acute Care EHR", "Post-acute Care EHR" and "TruBridge", based on our three distinct business units with unique market dynamics and opportunities. Revenues and costs of sales are primarily derived from the provision of services and sales of our proprietary software, and our CODM assess the performance of these three segments at the gross profit level. Operating expenses and items such as interest, income tax, capital expenditures and total assets are managed at a consolidated level and thus are not included in our operating segment disclosures. Our CODM group is comprised of the Chief Executive Officer, Chief Growth Officer, Chief Operating Officer, and Chief Financial Officer. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis. The following table presents a summary of the revenues, cost of sales, and gross profit of our three operating segments for the years ended December 31, 2019, 2018, and 2017: Year Ended December 31, (In thousands) 2019 2018 2017 Revenues: Acute Care EHR Recurring revenue $ 109,046 $ 111,936 $ 113,056 Non-recurring revenue 35,028 46,036 51,172 Total Acute Care EHR revenue 144,074 157,972 164,228 Post-acute Care EHR Recurring revenue 17,466 18,599 20,122 Non-recurring revenue 3,812 3,593 3,911 Total Post-acute Care EHR revenue 21,278 22,192 24,033 TruBridge 109,282 100,247 88,666 Total revenues 274,634 280,411 276,927 Cost of sales: Acute Care EHR 68,569 69,831 72,537 Post-acute Care EHR 5,303 6,153 7,481 TruBridge 56,617 54,699 49,636 Total cost of sales 130,489 130,683 129,654 Gross profit: Acute Care EHR 75,505 88,141 91,691 Post-acute Care EHR 15,975 16,039 16,552 TruBridge 52,665 45,548 39,030 Total gross profit 144,145 149,728 147,273 Corporate operating expenses (119,562) (124,846) (152,087) Other income 807 803 407 Gain on contingent consideration 5,000 — — Loss on extinguishment of debt — — (1,340) Interest expense (6,694) (7,577) (7,736) Income (loss) before taxes $ 23,696 $ 18,108 $ (13,483) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Declaration of Dividends On February 11, 2020, the Company announced a dividend for the first quarter of 2020 in the amount of $0.10 per share. The dividend was payable on March 6, 2020 to stockholders of record as of the close of business on February 21, 2020. |
Quarterly Financial Statements
Quarterly Financial Statements (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Statements (Unaudited) | QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) The following table presents a summary of our results of operations for our eight most recent quarters ended December 31, 2019. The information for each of these quarters is unaudited and has been prepared on a basis consistent with the audited financial statements. This information includes all adjustments, consisting only of normal recurring adjustments, we consider necessary for fair presentation of this information when read in conjunction with the audited financial statements and related notes. Our operating results have varied on a quarterly basis and may fluctuate significantly in the future. (In thousands, except for per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Ended December 31, 2019 Sales revenues $ 69,141 $ 66,156 $ 68,699 $ 70,638 Gross profit 37,115 34,535 35,915 36,580 Operating income 6,048 3,616 6,007 8,912 Net income 3,444 1,663 4,135 11,226 Net income per share Basic $ 0.24 $ 0.12 $ 0.29 $ 0.78 Diluted $ 0.24 $ 0.12 $ 0.29 $ 0.78 Year Ended December 31, 2018 Sales revenues $ 70,882 $ 67,905 $ 69,297 $ 72,327 Gross profit 39,085 34,846 36,113 39,684 Operating income 7,648 2,225 5,361 9,648 Net income 3,967 328 5,749 7,588 Net income per share Basic $ 0.29 $ 0.02 $ 0.41 $ 0.54 Diluted $ 0.29 $ 0.02 $ 0.41 $ 0.54 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at beginning of period Additions charged to cost and expenses (1) Deductions (2) Balance at end of period Allowance for doubtful accounts deducted from accounts receivable in the balance sheet 2017 $ 2,370 $ 1,598 $ (1,314) $ 2,654 2018 $ 2,654 $ 1,485 $ (2,015) $ 2,124 2019 $ 2,124 $ 1,378 $ (1,424) $ 2,078 (1) Adjustments to allowance for change in estimates. (2) Uncollectible accounts written off, net of recoveries. Description Balance at beginning of period Additions charged to cost and expenses (1) Deductions (2) Balance at end of period Allowance for credit losses deducted from financing receivables in the balance sheet 2017 $ 2,198 $ 1,823 $ (777) $ 3,244 2018 $ 3,244 $ 1,691 $ (2368) $ 2,567 2019 $ 2,567 $ 970 $ (566) $ 2,971 (1) Adjustments to allowance for change in estimates. (2) Uncollectible accounts written off, net of recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge"), Evident, LLC ("Evident"), iNetXperts, Corp. d/b/a Get Real Health ("Get Real Health"), and Healthland Holding Inc. ("HHI"), all of which are wholly-owned subsidiaries of CPSI. The accounts of HHI include those of its wholly-owned subsidiaries, Healthland Inc. ("Healthland"), Rycan Technologies, Inc. ("Rycan"), and American HealthTech, Inc. ("AHT"). All significant intercompany balances and transactions have been eliminated. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents can include time deposits and certificates of deposit with original maturities of three months or less that are highly liquid and readily convertible to a known amount of cash. These assets are stated at cost, which approximates market value, due to their short duration or liquid nature. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company establishes a general allowance for doubtful accounts based on collections history. In the case of a bankruptcy filing or other similar event indicating the collectability of specific customer accounts is no longer probable, a specific allowance for doubtful accounts may be recorded to reduce the related receivable to the amount expected to be recovered. |
Financing Receivables | Financing Receivables Financing receivables are comprised of short-term payment plans and sales-type leases. Short-term payment plans are stated at the amount the Company expects to collect and do not bear interest. Sales-type leases are initially recorded at the present value of the related minimum lease payments, computed at the interest rate implicit in the lease, and are presented net of unearned income. Unearned income is amortized over the lease term to produce a constant periodic rate of return on the net investment in the lease (the interest method). An allowance for credit losses has been established for our financing receivables based on the historical level of customer defaults under such arrangements. In the case of a bankruptcy filing or other similar event indicating the collectability of specific customer accounts is no longer probable, a specific reserve may be recorded to reduce the related receivable to the amount expected to be recovered. Customer payments are considered past due if a scheduled payment is not received within contractually agreed upon terms, with amounts reclassified to accounts receivable when they become due. As a result, we evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of receivables and write-offs, customer collection experience, the customer’s financial condition and known risk characteristics impacting the respective customer base, as well as existing economic conditions, to determine if any further allowance is necessary. Amounts are specifically charged off once all available means of collection have been exhausted. |
Inventories | InventoriesInventories are stated at lower of cost or net realizable value using the average cost method. The Company’s inventories are comprised of computer equipment, forms and supplies. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation. Additions and improvements to property and equipment that materially increase productive capacity or extend the life of an asset are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. Upon retirement or other disposition of such assets, the related costs and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. Depreciation expense is computed using the straight-line method over the asset’s useful life, which is generally 5 years for computer equipment, furniture, and fixtures and 30 years for buildings. Leasehold improvements are depreciated over the shorter of the asset’s useful life or the remaining lease term. The Company reviews for the possible impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation expense is reported in the consolidated statements of operations as a component of costs of sales and operating expenses. |
Business Combinations | Business CombinationsWe apply business combination accounting when we acquire a business. Business combinations are accounted for at fair value. The associated acquisition costs are expensed as incurred and recorded in general and administrative expenses; restructuring costs associated with a business combination are expenses; contingent consideration is measured at fair value at the acquisition date, with changes in fair value after the acquisition date affecting earnings; changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period affect income tax expense; and goodwill is determined as the excess of the fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired. The accounting for business combinations requires estimates and judgments as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair value for assets and liabilities acquired. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, are based on management's estimates and assumptions, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. The results of the acquired businesses' operations are included in the Consolidated Statements of Operations of the combined entity beginning on the date of the acquisition. |
Goodwill | Goodwill Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the identifiable net tangible and intangible assets acquired. Goodwill is not amortized but is evaluated for impairment annually or more frequently if indicators of impairment are present or changes in circumstances suggest that impairment may exist. We test annually for impairment as of October 1. As part of our annual goodwill impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a quantitative goodwill impairment assessment. The first step of the quantitative goodwill impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. The Company early adopted Accounting Standards Update 2017-04 on January 1, 2017, which eliminates the second step of the goodwill impairment analysis. Therefore, if the carrying amount of the reporting unit exceeds its fair value in the first step of the goodwill impairment test, an impairment charge is recognized for the amount by which the carrying amount exceeds the total amount of goodwill allocated to that reporting unit. If the fair value of the reporting unit exceeds its carrying amount, the goodwill of the reporting unit is not considered to be impaired. We did not identify any events or circumstances that would require interim goodwill impairment testing prior to October 1, 2017. Based on our assessment as of October 1, 2017, we determined that there was no impairment of goodwill for our Acute Care EHR and TruBridge reporting units. We also determined as of October 1, 2017, that it was more likely than not that we did not have an impairment of our Post-acute Care EHR reporting unit. During the fourth quarter of 2017, the cumulation of events, including anticipated attrition of significant post-acute customer accounts and a product development acceleration plan for our post-acute EHR software, triggered management to re-assess future discounted cash flow projections incorporated in the October 1, 2017 annual assessment to include updated assumptions for the aforementioned fourth quarter events impacting the Post-acute Care EHR reporting unit. The result of our fair value assessment, which |
Purchased Intangible Assets | Purchased Intangible Assets Purchased intangible assets are acquired in connection with a business acquisition, and are amortized over their estimated useful lives based on the pattern of economic benefit expected from each asset. We concluded for certain purchased intangible assets that the pattern of economic benefit approximated the straight-line method, and therefore, the use of the straight-line method was appropriate, as the majority of the cash flows will be recognized ratably over the estimated useful lives and there is no degradation of the cash flows over time. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to clients in an amount that reflects the consideration we expect to receive in exchange for those products and services. We enter into contracts that can include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. The Company employs the 5-step revenue recognition model under ASC 606 to: (1) identify the contract with the client, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue is recognized net of shipping charges and any taxes collected from clients, which are subsequently remitted to governmental authorities. • System Sales and Support The Company enters into contractual obligations to sell perpetual software licenses, installation, conversion, and related training services, hardware and software application support, and hardware maintenance services to acute care and post-acute care community hospitals. • Non-recurring Revenues • Perpetual software licenses and installation, conversion, and related training services are not considered separate and distinct performance obligations due to the proprietary nature of our software and are, therefore, accounted for as a single performance obligation on a module-by-module basis. Revenue is recognized as each module's implementation is completed based on the module's stand-alone selling price ("SSP"), net of discounts. Fees for licenses and installation, conversion, and related training services are typically due in three installments: (1) at placement of order, (2) upon installation of software and commencement of training, and (3) upon satisfactory completion of monthly accounting cycle or end-of-month operation by application and as applicable for each application. Often, short-term and/or long-term financing arrangements are provided for software implementations; refer to Note 10 - Financing Receivables for further information. Electronic health records ("EHR") implementations include a system warranty that terminates thirty days from the software go-live date, the date which the client begins using the system in a live environment. • Hardware revenue is recognized separately from software licenses at the point in time it is delivered to the client. The SSP of hardware is cost plus a reasonable margin and revenue is recognized on a gross basis. Payment is generally due upon delivery of the hardware to the client. Standard manufacturer warranties apply to hardware. • Recurring Revenues • Software application support and hardware maintenance services sold with software licenses and hardware are separate and distinct performance obligations. Revenue for support and maintenance services is recognized based on SSP, which is the renewal price, ratably over the life of the contract, which is generally three to five years. Payment is due monthly for support services provided. • Subscriptions to third-party content revenue is recognized as a separate performance obligation ratably over the subscription term based on SSP, which is cost plus a reasonable margin, and revenue is recognized on a gross basis. Payment is due monthly for subscriptions to third party content. • Software as a Service ("SaaS") arrangements for EHR software and related conversion and training services are considered a single performance obligation. Revenue is recognized on a monthly basis as the SaaS service is provided to the client over the contract term. Payment is due monthly for SaaS services provided. Refer to Note 17 for further information, including revenue by client base (acute care or post-acute care) bifurcated by recurring and non-recurring revenue. • TruBridge TruBridge provides an array of business processing services ("BPS") consisting of accounts receivable management, private pay services, insurance services, medical coding, electronic billing, statement processing, payroll processing, and contract management. Fees are recognized over the period of the client contractual relationship as the services are performed based on the SSP, net of discounts. Fees for many of these services are invoiced, and revenue recognized accordingly, based on the volume of transactions or a percentage of client accounts receivable collections. Payment is due monthly for BPS with certain amounts varying based on utilization and/or volumes. TruBridge also provides professional IT services. Revenue from professional IT services is recognized as the services are performed based on SSP. Payment is due monthly as services are performed. • Deferred Revenue Deferred revenue represents amounts invoiced to clients for which the services under contract have not been completed and revenue has not been recognized, including annual renewals of certain software subscriptions and customer deposits for implementations to be performed at a later date. Revenue is recognized ratably over the life of the software subscriptions as services are provided and at the point-in-time when implementations have been completed. The following table details deferred revenue for the years ended December 31, 2019 and 2018, included in the consolidated balance sheets: For years ended December 31, (In thousands) 2019 2018 Beginning balance $ 10,201 $ 9,937 Deferred revenue recorded 20,507 19,818 Deferred revenue acquired 430 — Less deferred revenue recognized as revenue (22,510) (19,554) Ending balance $ 8,628 8628000 $ 10,201 The deferred revenue recorded for years ended December 31, 2019 and 2018 is comprised primarily of the annual renewals of certain software subscriptions billed during during the first quarter of each year and deposits collected for future EHR installations. The deferred revenue acquired resulted from the May 2019 acquisition of Get Real Health. The deferred revenue recognized as revenue during the years ended December 31, 2019 and 2018 is comprised primarily of the periodic recognition of annual renewals that were deferred until earned and deposits for future EHR installations that were deferred until earned. • Costs to Obtain and Fulfill a Contract with a Customer Costs to obtain a contract include the commission costs related to SaaS arrangements, which are capitalized and amortized ratably over the expected life of the customer. As a practical expedient, we generally recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would have been one year or less, with the exception of commissions generated from TruBridge sales. TruBridge commissions, which are paid up to twelve months in advance, are capitalized and amortized over the prepayment period. Costs to obtain a contract are expensed within sales and marketing expenses in the accompanying consolidated statements of operations. Contract fulfillment costs related to the implementation of SaaS arrangements are capitalized and amortized ratably over the expected life of the customer. Costs to fulfill contracts consist of the payroll costs for the implementation of SaaS arrangements, including time for training, conversion, and installation that is necessary for the software to be utilized. Contract fulfillment costs are expensed within the caption "System sales and support - Cost of sales" in the accompanying consolidated statements of operations. Costs to obtain and fulfill contracts related to SaaS arrangements are included within the "Prepaid expenses and other" and "Other assets, net of current portion" line items on our consolidated balance sheets. The following table details costs to obtain and fulfill contracts with customers for the years ended December 31, 2019 and 2018, included in the consolidated balance sheets: For years ended December 31, (In thousands) 2019 2018 Beginning balance $ 3,017 $ 3,775 Costs to obtain and fulfill contracts capitalized 6,246 3,345 Less costs to obtain and fulfill contracts recognized as expense (4,824) (4,103) Ending balance $ 4,439 $ 3,017 • Significant Judgments Our contracts with clients often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine SSP for each distinct performance obligation. We use observable SSP for items that are sold on a stand-alone basis to similarly situated clients at unit prices within a sufficiently narrow range. For performance obligations that are sold to different clients for a broad range of amounts, or for performance obligations that are never sold on a stand-alone basis, the residual method in determining SSP is applied and requires significant judgment. Allocating the transaction price, including estimating SSP of promised goods and services for contracts with discounts or variable consideration, may require significant judgment. Due to the short time frame of the implementation cycle, discount allocation is immaterial as revenue is recognized net of discounts within the same reporting period. In scenarios where the Company enters into a contract that includes both a software license and BPS or other services that are charged based on volume of services rendered, the Company allocates variable amounts entirely to a distinct good or service. The terms of the variable payment relate specifically to the entity’s efforts to satisfy that performance obligation. Significant judgment is required in determining the expected life of a customer, which is the amortization period for costs to obtain and fulfill a contract that have been capitalized. The Company determined that the expected life of the customer is not materially different from the initial contract term based on the characteristics of the SaaS offering. • Remaining Performance Obligations Disclosures regarding remaining performance obligations are not considered material as the overwhelming majority of the Company's remaining performance obligations either (a) are related to contracts with an |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation according to the provisions of FASB Codification topic, Compensation – Stock Compensation, which establishes accounting for stock-based awards exchanged for employee services. Accordingly, 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. |
Product Development Costs | Product Development CostsProduct development costs are expensed as incurred. Product development costs totaled approximately $36.9 million, $36.4 million, and $33.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Income Taxes | Income Taxes We account for income taxes in accordance with FASB Codification topic, Income Taxes . Under this topic, deferred income taxes are determined utilizing the asset and liability approach. This method gives consideration to the future tax consequences associated with differences between financial accounting and tax bases of assets and liabilities. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize interest and penalties accrued related to unrecognized tax benefits in the consolidated statements of operations as a component of the provision for income taxes. We also make a provision for uncertain income tax positions in accordance with the Income Taxes Codification topic. These provisions require that a tax position taken in a tax return be recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement. The topic also requires that changes in judgment that result in subsequent recognition, derecognition, or change in a measurement date of a tax position taken in a prior annual period (including any related interest and penalties) be recognized as a discrete item in the interim period in which the change occurs. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Segment Reporting | Segment ReportingOperating segments are identified as components of an enterprise about which separate discrete financial information is evaluated by the chief operating decision maker, which we refer to as the CODM, or decision-making group in assessing performance and making decisions regarding resource allocation. The Company has prepared operating segment information based on the manner in which management disaggregates the Company's operations for making internal operating decisions. |
New Accounting Standards Adopted in 2019 | New Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new guidance requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. We adopted this guidance as of January 1, 2019 using the current period adjustment method. The impact on the financial statements of implementation of this standard was an increase in lease assets and lease liabilities of $4.9 million as of the adoption date, January 1, 2019. Adoption of the standard did not significantly impact our consolidated net earnings or cash flows. New Accounting Standards Yet to be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses , which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2019, which is effective for the Company as of the first quarter of our fiscal year ending December 31, 2020. The Company does not expect a material impact due to the implementation of this standard on its consolidated financial statements. We do not believe that any other recently issued but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
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. |
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 topic 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 topic 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | For years ended December 31, (In thousands) 2019 2018 Beginning balance $ 10,201 $ 9,937 Deferred revenue recorded 20,507 19,818 Deferred revenue acquired 430 — Less deferred revenue recognized as revenue (22,510) (19,554) Ending balance $ 8,628 8628000 $ 10,201 |
Schedule of Changes in Capitalized Contract Cost | Costs to obtain and fulfill contracts related to SaaS arrangements are included within the "Prepaid expenses and other" and "Other assets, net of current portion" line items on our consolidated balance sheets. The following table details costs to obtain and fulfill contracts with customers for the years ended December 31, 2019 and 2018, included in the consolidated balance sheets: For years ended December 31, (In thousands) 2019 2018 Beginning balance $ 3,017 $ 3,775 Costs to obtain and fulfill contracts capitalized 6,246 3,345 Less costs to obtain and fulfill contracts recognized as expense (4,824) (4,103) Ending balance $ 4,439 $ 3,017 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price paid for Get Real Health as of December 31, 2019 was as follows: (In thousands) Purchase Price Allocation Acquired cash $ 159 Accounts receivable 364 Prepaid expenses 107 Property and equipment 365 Operating lease asset 1,285 Intangible assets 7,890 Goodwill 9,767 Accounts payable and accrued liabilities (594) Deferred taxes, net (1,736) Operating lease liability (1,285) Contingent consideration (5,000) Deferred revenue (430) Net assets acquired $ 10,892 |
Pro Forma Results on Income | Year Ended December 31, (In thousands, except per share data, unaudited) 2019 2018 Pro forma revenues $ 276,097 $ 283,994 Pro forma net income $ 19,077 $ 15,172 Pro forma diluted earnings per share $ 1.38 $ 1.12 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment were comprised of the following at December 31, 2019 and 2018: (In thousands) 2019 2018 Land $ 2,848 $ 2,848 Buildings and improvements 8,039 7,752 Computer equipment 4,011 2,766 Leasehold improvements 1,712 1,198 Office furniture and fixtures 2,018 1,938 Automobiles 18 18 18,646 16,520 Less: accumulated depreciation (7,053) (5,645) Property and equipment, net $ 11,593 $ 10,875 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities were comprised of the following at December 31, 2019 and 2018: (In thousands) 2019 2018 Salaries and benefits $ 6,946 $ 8,722 Severance 329 992 Commissions 1,037 830 Self-insurance reserves 1,382 1,017 Contingent consideration — 206 Other 529 452 Operating lease liabilities, current portion 1,544 — Other accrued liabilities $ 11,767 $ 12,219 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (loss) and net income (loss) attributable to common stockholders for the years ended December 31, 2019, 2018, and 2017: (In thousands, except for per share data) 2019 2018 2017 Basic EPS Numerator Net income (loss) $ 20,468 $ 17,632 $ (17,416) Less: Net (income) loss attributable to participating securities (764) (595) 316 Net income (loss) attributable to common stockholders $ 19,704 $ 17,037 $ (17,100) Denominator Weighted average shares outstanding used in basic per common share computations 13,778 13,561 13,419 Basic EPS $ 1.43 $ 1.26 $ (1.27) Diluted EPS Numerator Net income (loss) attributable to common stockholders for diluted EPS $ 19,704 $ 17,037 $ (17,100) Denominator Weighted average shares outstanding used in basic per common share computations 13,778 13,561 13,419 Weighted average effect of dilutive securities: Performance share awards — 7 — Weighted average shares outstanding used in diluted per common share computations 13,778 13,568 13,419 Diluted EPS $ 1.43 $ 1.26 $ (1.27) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were comprised of the following at December 31, 2019 and 2018: (In thousands) 2019 2018 Deferred tax assets: Accounts receivable and financing receivables $ 1,221 $ 1,112 Accrued vacation 653 529 Stock-based compensation 2,886 2,264 Deferred revenue 257 250 Accrued severance 24 173 Fixed assets 1,347 — Credits 3,072 1,984 Net operating loss 7,770 10,347 Deferred tax assets 17,230 16,659 Less: Valuation allowance 801 456 Total deferred tax assets $ 16,429 $ 16,203 Deferred tax liabilities: Intangible assets $ 20,960 $ 19,957 Accrued liabilities and other 3,092 897 Fixed assets — 226 Total deferred tax liabilities $ 24,052 $ 21,080 Total net deferred tax liability $ (7,623) $ (4,877) |
Components of Income Tax Provision | Significant components of the income tax provision for the years ended December 31, 2019, 2018 and 2017 were as follows: (In thousands) 2019 2018 2017 Current provision: Federal $ 860 $ (594) $ 1,535 State 1,357 1,434 977 Deferred provision: Federal 951 649 1,070 State 60 (1,013) 351 Total income tax provision $ 3,228 $ 476 $ 3,933 |
Reconciliation to Federal Statutory Income Tax Rate | The difference between income taxes at the U.S. federal statutory income tax rate of 21% for the years ended December 31, 2019 and 2018, and 35% for the year ended December 31, 2017, and those reported in the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 are as follows: (In thousands) 2019 2018 2017 Income taxes at U.S. federal statutory rate $ 4,976 $ 3,803 $ (4,584) Provision-to-return adjustments (66) (112) 433 State income tax, net of federal tax effect 978 1,109 458 Domestic production activities deduction — — (280) Tax credits (2,196) (3,428) (393) Contingent consideration (1,050) — — Goodwill impairment — — 9,520 Stock-based compensation 151 356 1,155 Deferred impact of tax reform — — (1,890) Change in valuation allowance 173 (1,149) (304) Other 262 (103) (182) Total income tax provision $ 3,228 $ 476 $ 3,933 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock-Based Compensation Expense | The following table details total stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, included in the consolidated statements of operations: (In thousands) 2019 2018 2017 Costs of sales $ 2,040 $ 2,134 $ 1,750 Operating expenses 7,782 7,581 5,416 Pre-tax stock-based compensation expense 9,822 9,715 7,166 Less: income tax effect (2,063) (2,040) (2,795) Net (after tax) stock-based compensation expense $ 7,759 $ 7,675 $ 4,371 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Activity Under Restricted Stock Plans | A summary of restricted stock activity (including shares of restricted stock issued pursuant to the settlement of performance share awards) under the Plans during the years ended December 31, 2019, 2018 and 2017 is as follows: Shares Weighted-Average Grant-Date Fair Value Unvested stock outstanding at January 1, 2017 184,885 $ 54.63 Granted 225,954 32.79 Vested (101,644) 55.58 Unvested stock outstanding at December 31, 2017 309,195 $ 38.36 Granted 148,841 30.20 Performance share awards converted to restricted stock 177,395 29.94 Vested (156,988) 40.52 Forfeited (3,311) 30.20 Unvested stock outstanding at December 31, 2018 475,132 $ 32.00 Granted 133,936 30.89 Performance share awards converted to restricted stock 138,566 29.80 Vested (221,775) 33.48 Unvested stock outstanding at December 31, 2019 525,859 $ 30.51 |
Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Activity Under Restricted Stock Plans | A summary of performance share award activity under the Plans for the years ended December 31, 2019, 2018 and 2017, is as follows, based on the target award amounts set forth in the performance share award agreements: Shares Weighted-Average Grant-Date Fair Value Performance share awards outstanding at January 1, 2017 77,594 $ 49.64 Granted 189,325 29.94 Forfeited or unearned (77,594) 49.64 Performance share awards outstanding at December 31, 2017 189,325 $ 29.94 Granted 184,776 30.15 Forfeited or unearned (11,930) 29.94 Performance share awards converted to restricted stock (177,395) 29.94 Performance share awards outstanding at December 31, 2018 184,776 $ 30.15 Granted 110,310 30.95 Adjusted for actual perfromance, net of forfeitures 44,189 29.77 Performance share awards converted to restricted stock (138,566) 29.80 Performance share awards outstanding at December 31, 2019 200,709 $ 30.75 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Components of Short-Term Payment Plans | These receivables, included in the current portion of financing receivables, were comprised of the following on December 31, 2019 and 2018: (In thousands) 2019 2018 Short-term payment plans, gross $ 2,361 $ 5,773 Less: allowance for losses (165) (404) Short-term payment plans, net $ 2,196 $ 5,369 |
Components of Lease Receivables | The components of these receivables were as follows on December 31: (In thousands) 2019 2018 Long-term financing arrangements, gross $ 34,483 $ 34,841 Less: allowance for losses (2,806) (2,163) Less: unearned income (3,574) (3,725) Long-term financing arrangements, net $ 28,103 $ 28,953 |
Future Minimum Lease Payments to be Received | Future minimum payments to be received subsequent to December 31, 2019 are as follows: (In thousands) 2020 $ 12,085 2021 10,468 2022 6,435 2023 3,368 2024 1,709 Thereafter 418 Total minimum payments to be received 34,483 Less: allowance for losses (2,806) Less: unearned income (3,574) Receivables, net $ 28,103 |
Roll-Forward of Allowance for Financing Credit Losses | The following table is a roll-forward of the allowance for financing credit losses for the years ended December 31, 2019 and 2018: (In thousands) Beginning Balance Provision Charge-offs Recoveries Ending Balance December 31, 2019 $ 2,567 $ 970 $ (566) $ — $ 2,971 December 31, 2018 $ 3,244 $ 1,691 $ (2,368) $ — $ 2,567 |
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 December 31, 2019 and December 31, 2018: (In thousands) 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due December 31, 2019 $ 1,480 $ 150 $ 207 $ 1,837 December 31, 2018 $ 1,302 $ 210 $ 245 $ 1,757 |
Categories of Customer Financing Receivables | The table below categorizes customer financing receivable balances (excluding short term payment plans), none of which are considered past due, based on the age of the oldest payment outstanding that has been reclassified to trade accounts receivable: (In thousands) December 31, 2019 December 31, 2018 Stratification of uninvoiced client financing receivables based on aging of related trade accounts receivable: Uninvoiced client financing receivables related to trade accounts receivable that are 1 to 90 Days Past Due $ 18,015 $ 17,290 Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due 2,136 2,247 Uninvoiced client financing receivables related to trade accounts receivable that are 181+Days Past Due 1,972 885 Total uninvoiced client financing receivables balances of clients with a trade accounts receivable $ 22,123 $ 20,422 Total uninvoiced client financing receivables of clients with no related trade accounts receivable 8,786 10,694 Total financing receivables with contractual maturities of one year or less 2,361 5,773 Less: allowance for losses (2,971) (2,567) Total financing receivables $ 30,299 $ 34,322 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Definite-Lived Intangible Assets | Our purchased definite-lived intangible assets as of December 31, 2019 and 2018 are summarized as follows: (In thousands) Customer Relationships Trademark Developed Technology Total Gross carrying amount as of December 31, 2017 and 2018 $ 82,300 $ 10,900 $ 24,100 $ 117,300 Accumulated amortization as of December 31, 2018 (19,476) (2,613) (8,985) (31,074) Net intangible assets as of December 31, 2018 62,824 8,287 15,115 86,226 Intangible assets acquired for year ended December 31, 2019 2,070 220 5,600 7,890 Amortization expenses for year ended December 31, 2019 (6,980) (836) (3,190) (11,006) Net intangible assets as of December 31, 2019 $ 57,914 $ 7,671 $ 17,525 $ 83,110 Weighted average remaining years of useful life 9 12 5 9 |
Schedule of Remaining Amortization of Definite-Lived Intangible Assets | The following table represents the remaining amortization of definite-lived intangible assets as of December 31, 2019: (In thousands) For the year ended December 31, 2020 $ 11,421 2021 11,003 2022 10,904 2023 10,904 2024 9,681 Due thereafter 29,197 Total $ 83,110 |
Schedule of Changes in the Carrying Amount of Goodwill | The following table sets forth the change in the carrying amount of goodwill by segment for the years ended December 31, 2019, 2018, and 2017: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2016 $ 97,095 $ 57,570 $ 13,784 $ 168,449 Goodwill impairment — (28,000) — (28,000) Balance as of December 31, 2017 and 2018 97,095 29,570 13,784 140,449 Goodwill acquired — — 9,767 9,767 Balance as of December 31, 2019 $ 97,095 $ 29,570 $ 23,551 $ 150,216 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt was comprised of the following at December 31, 2019 and 2018: (In thousands) December 31, 2019 December 31, 2018 Term loan facility $ 88,823 102,432 Revolving credit facility 20,000 29,693 Capital lease obligation — 250 Debt obligations 108,823 132,375 Less: debt issuance costs (960) (1,306) Debt obligation, net 107,863 131,069 Less: current portion (8,430) (6,486) Long-term debt $ 99,433 $ 124,583 |
Schedule of Anticipated Annual Future Maturities | Anticipated annual future maturities of the term loan facility, revolving credit facility, and capital lease obligation are as follows as of December 31, 2019: (In thousands) 2020 $ 8,775 2021 9,506 2022 90,542 2023 — Thereafter — $ 108,823 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating leases is as follows: (In thousands) December 31, 2019 Operating lease assets: Operating lease assets $ 7,800 Operating lease liabilities: Other accrued liabilities 1,544 Operating lease liabilities, net of current portion 6,256 Total operating lease liabilities $ 7,800 Weighted average remaining lease term in years 7 Weighted average discount rate 5.1% |
Schedule of Future Minimum Lease Payments Payable Under Operating Leases | The future minimum lease payments payable under these operating leases subsequent to December 31, 2019 are as follows: (In thousands) 2020 $ 1,544 2021 1,518 2022 1,436 2023 1,363 2024 980 Thereafter 2,383 Total lease payments 9,224 Less imputed interest (1,424) Total $ 7,800 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | Fair Value at December 31, 2018 Using Quoted Prices in Carrying Active Markets for Significant Other Significant Amount at Identical Assets Observable Inputs Unobservable Inputs (In thousands) 12/31/2018 (Level 1) (Level 2) (Level 3) Description Contingent consideration $ 206 $ — $ — $ 206 Total $ 206 $ — $ — $ 206 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents a summary of the revenues, cost of sales, and gross profit of our three operating segments for the years ended December 31, 2019, 2018, and 2017: Year Ended December 31, (In thousands) 2019 2018 2017 Revenues: Acute Care EHR Recurring revenue $ 109,046 $ 111,936 $ 113,056 Non-recurring revenue 35,028 46,036 51,172 Total Acute Care EHR revenue 144,074 157,972 164,228 Post-acute Care EHR Recurring revenue 17,466 18,599 20,122 Non-recurring revenue 3,812 3,593 3,911 Total Post-acute Care EHR revenue 21,278 22,192 24,033 TruBridge 109,282 100,247 88,666 Total revenues 274,634 280,411 276,927 Cost of sales: Acute Care EHR 68,569 69,831 72,537 Post-acute Care EHR 5,303 6,153 7,481 TruBridge 56,617 54,699 49,636 Total cost of sales 130,489 130,683 129,654 Gross profit: Acute Care EHR 75,505 88,141 91,691 Post-acute Care EHR 15,975 16,039 16,552 TruBridge 52,665 45,548 39,030 Total gross profit 144,145 149,728 147,273 Corporate operating expenses (119,562) (124,846) (152,087) Other income 807 803 407 Gain on contingent consideration 5,000 — — Loss on extinguishment of debt — — (1,340) Interest expense (6,694) (7,577) (7,736) Income (loss) before taxes $ 23,696 $ 18,108 $ (13,483) |
Quarterly Financial Statement_2
Quarterly Financial Statements (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Statements | (In thousands, except for per share data) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Ended December 31, 2019 Sales revenues $ 69,141 $ 66,156 $ 68,699 $ 70,638 Gross profit 37,115 34,535 35,915 36,580 Operating income 6,048 3,616 6,007 8,912 Net income 3,444 1,663 4,135 11,226 Net income per share Basic $ 0.24 $ 0.12 $ 0.29 $ 0.78 Diluted $ 0.24 $ 0.12 $ 0.29 $ 0.78 Year Ended December 31, 2018 Sales revenues $ 70,882 $ 67,905 $ 69,297 $ 72,327 Gross profit 39,085 34,846 36,113 39,684 Operating income 7,648 2,225 5,361 9,648 Net income 3,967 328 5,749 7,588 Net income per share Basic $ 0.29 $ 0.02 $ 0.41 $ 0.54 Diluted $ 0.29 $ 0.02 $ 0.41 $ 0.54 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Office furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 30 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Revenue from External Customer [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 28,000,000 | |
Product development | 36,861,000 | 36,371,000 | 33,737,000 | |
Operating lease assets | 7,800,000 | |||
Operating lease liabilities | 7,800,000 | |||
ASU 2016-02 | ||||
Revenue from External Customer [Line Items] | ||||
Operating lease assets | $ 4,900,000 | |||
Operating lease liabilities | $ 4,900,000 | |||
Operating segments | ||||
Revenue from External Customer [Line Items] | ||||
Goodwill impairment | 0 | 0 | ||
Operating segments | Acute Care EHR and TruBridge | ||||
Revenue from External Customer [Line Items] | ||||
Goodwill impairment | 0 | |||
Operating segments | Post-acute Care EHR | ||||
Revenue from External Customer [Line Items] | ||||
Goodwill impairment | 0 | 0 | 28,000,000 | |
Impairment to purchased intangible assets | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 10,201 | $ 9,937 |
Deferred revenue recorded | 20,507 | 19,818 |
Deferred revenue acquired | 430 | 0 |
Less deferred revenue recognized as revenue | (22,510) | (19,554) |
Ending balance | $ 8,628 | $ 10,201 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Changes in Capitalized Contract Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 3,017 | $ 3,775 |
Costs to obtain and fulfill contracts capitalized | 6,246 | 3,345 |
Less costs to obtain and fulfill contracts recognized as expense | (4,824) | (4,103) |
Ending balance | $ 4,439 | $ 3,017 |
Business Combination - Prelimin
Business Combination - Preliminary allocation of the purchase price paid (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 150,216 | $ 140,449 | $ 140,449 | $ 168,449 |
iNetXperts, Corp. | ||||
Business Acquisition [Line Items] | ||||
Acquired cash | 159 | |||
Accounts receivable | 364 | |||
Prepaid expenses | 107 | |||
Property and equipment | 365 | |||
Operating lease asset | 1,285 | |||
Intangible assets | 7,890 | |||
Goodwill | 9,767 | |||
Accounts payable and accrued liabilities | (594) | |||
Deferred taxes, net | (1,736) | |||
Operating lease liability | (1,285) | |||
Contingent consideration | (5,000) | |||
Deferred revenue | (430) | |||
Deferred revenue | $ 10,892 |
Business Combination - Pro form
Business Combination - Pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Pro forma revenues | $ 276,097 | $ 283,994 |
Pro forma net income | $ 19,077 | $ 15,172 |
Pro forma diluted earnings per share (in dollars per share) | $ 1.38 | $ 1.12 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | May 03, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Gain on contingent consideration | $ 5,000 | $ 0 | $ 0 | |
iNetXperts, Corp. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | $ 10,800 | |||
Contingent consideration earnout payment | $ 14,000 | |||
Gain on contingent consideration | 5,000 | |||
Acquisition related costs | 600 | |||
Pro forma information, revenue | 3,400 | |||
Pro forma information, pre-tax loss | $ 100 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18,646 | $ 16,520 |
Less: accumulated depreciation | (7,053) | (5,645) |
Property and equipment, net | 11,593 | 10,875 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,848 | 2,848 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,039 | 7,752 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,011 | 2,766 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,712 | 1,198 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,018 | 1,938 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18 | $ 18 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Salaries and benefits | $ 6,946 | $ 8,722 |
Severance | 329 | 992 |
Commissions | 1,037 | 830 |
Self-insurance reserves | 1,382 | 1,017 |
Contingent consideration | 0 | 206 |
Other | 529 | 452 |
Operating lease liabilities, current portion | 1,544 | |
Other accrued liabilities | $ 11,767 | $ 12,219 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator | |||||||||||
Net income (loss) | $ 11,226 | $ 4,135 | $ 1,663 | $ 3,444 | $ 7,588 | $ 5,749 | $ 328 | $ 3,967 | $ 20,468 | $ 17,632 | $ (17,416) |
Less: Net (income) loss attributable to participating securities | (764) | (595) | 316 | ||||||||
Net income (loss) attributable to common stockholders | $ 19,704 | $ 17,037 | $ (17,100) | ||||||||
Denominator | |||||||||||
Weighted average shares outstanding used in basic per common share computations (in shares) | 13,778 | 13,561 | 13,419 | ||||||||
Basic EPS (in dollars per share) | $ 0.78 | $ 0.29 | $ 0.12 | $ 0.24 | $ 0.54 | $ 0.41 | $ 0.02 | $ 0.29 | $ 1.43 | $ 1.26 | $ (1.27) |
Numerator | |||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 19,704 | $ 17,037 | $ (17,100) | ||||||||
Denominator | |||||||||||
Weighted average shares outstanding used in basic per common share computations (in shares) | 13,778 | 13,561 | 13,419 | ||||||||
Weighted average effect of dilutive securities: | |||||||||||
Performance share awards (in shares) | 0 | 7 | 0 | ||||||||
Weighted average shares outstanding used in diluted per common share computations (in shares) | 13,778 | 13,568 | 13,419 | ||||||||
Diluted EPS (in dollars per share) | $ 0.78 | $ 0.29 | $ 0.12 | $ 0.24 | $ 0.54 | $ 0.41 | $ 0.02 | $ 0.29 | $ 1.43 | $ 1.26 | $ (1.27) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)event | Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Effective income tax rate | 14.00% | 3.00% | (29.00%) |
Number of factors impacting net expense impact (in events) | event | 3 | ||
Net income tax expense impact | $ 8,800 | ||
Impact to effective rate | 4.00% | 65.00% | |
Valuation allowance | $ 801 | 456 | |
Domestic tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Federal net operating loss carryforward | 27,900 | 40,500 | $ 53,900 |
State jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Federal net operating loss carryforward | $ 34,400 | $ 34,500 | $ 37,100 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accounts receivable and financing receivables | $ 1,221 | $ 1,112 |
Accrued vacation | 653 | 529 |
Stock-based compensation | 2,886 | 2,264 |
Deferred revenue | 257 | 250 |
Accrued severance | 24 | 173 |
Fixed assets | 1,347 | 0 |
Credits | 3,072 | 1,984 |
Net operating loss | 7,770 | 10,347 |
Deferred tax assets | 17,230 | 16,659 |
Less: Valuation allowance | 801 | 456 |
Total deferred tax assets | 16,429 | 16,203 |
Deferred tax liabilities: | ||
Intangible assets | 20,960 | 19,957 |
Accrued liabilities and other | 3,092 | 897 |
Fixed assets | 0 | 226 |
Total deferred tax liabilities | 24,052 | 21,080 |
Total net deferred tax liability | $ (7,623) | $ (4,877) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | |||
Federal | $ 860 | $ (594) | $ 1,535 |
State | 1,357 | 1,434 | 977 |
Deferred provision: | |||
Federal | 951 | 649 | 1,070 |
State | 60 | (1,013) | 351 |
Total income tax provision | $ 3,228 | $ 476 | $ 3,933 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at U.S. federal statutory rate | $ 4,976 | $ 3,803 | $ (4,584) |
Provision-to-return adjustments | (66) | (112) | 433 |
State income tax, net of federal tax effect | 978 | 1,109 | 458 |
Domestic production activities deduction | 0 | 0 | (280) |
Tax credits | (2,196) | (3,428) | (393) |
Transaction costs | (1,050) | 0 | 0 |
Goodwill impairment | 0 | 0 | 9,520 |
Stock-based compensation | 151 | 356 | 1,155 |
Deferred impact of tax reform | 0 | 0 | (1,890) |
Change in valuation allowance | 173 | (1,149) | (304) |
Other | 262 | (103) | (182) |
Total income tax provision | $ 3,228 | $ 476 | $ 3,933 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future issuance (in shares) | shares | 833,895 |
Unrecognized compensation cost related to non-vested share-based compensation | $ | $ 9.6 |
Unrecognized compensation cost related to non-vested share-based compensation period of recognition | 1 year 7 months 6 days |
Performance shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Performance shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | $ 9,822 | $ 9,715 | $ 7,166 |
Less: income tax effect | (2,063) | (2,040) | (2,795) |
Net (after tax) stock-based compensation expense | 7,759 | 7,675 | 4,371 |
Costs of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | 2,040 | 2,134 | 1,750 |
Operating expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Pre-tax stock-based compensation expense | $ 7,782 | $ 7,581 | $ 5,416 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity Under Restricted and Performance Stock Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock | |||
Shares | |||
Outstanding at beginning of period (in shares) | 475,132 | 309,195 | 184,885 |
Granted (in shares) | 133,936 | 148,841 | 225,954 |
Performance share awards converted to restricted stock | 138,566 | 177,395 | |
Vested (in shares) | (221,775) | (156,988) | (101,644) |
Forfeited (in shares) | (3,311) | ||
Outstanding at end of period (in shares) | 525,859 | 475,132 | 309,195 |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at beginning of the period (in dollars per share) | $ 32 | $ 38.36 | $ 54.63 |
Granted (in dollars per share) | 30.89 | 30.20 | 32.79 |
Performance share awards converted to restricted stock (in dollars per share) | 29.80 | 29.94 | |
Vested (in dollars per share) | 33.48 | 40.52 | 55.58 |
Forfeited (in dollars per share) | 30.20 | ||
Outstanding at end of the period in dollars per share) | $ 30.51 | $ 32 | $ 38.36 |
Performance shares | |||
Shares | |||
Outstanding at beginning of period (in shares) | 184,776 | 189,325 | 77,594 |
Granted (in shares) | 110,310 | 184,776 | 189,325 |
Performance share awards converted to restricted stock | (138,566) | (177,395) | |
Forfeited (in shares) | (11,930) | (77,594) | |
Adjusted for actual perfromance, net of forfeitures (in shares) | 44,189 | ||
Outstanding at end of period (in shares) | 200,709 | 184,776 | 189,325 |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at beginning of the period (in dollars per share) | $ 30.15 | $ 29.94 | $ 49.64 |
Granted (in dollars per share) | 30.95 | 30.15 | 29.94 |
Performance share awards converted to restricted stock (in dollars per share) | 29.80 | 29.94 | |
Forfeited (in dollars per share) | 29.94 | 49.64 | |
Adjusted for actual perfromance, net of forfeitures (in dollars per share) | 29.77 | ||
Outstanding at end of the period in dollars per share) | $ 30.75 | $ 30.15 | $ 29.94 |
Financing Receivables - Narrati
Financing Receivables - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Total financing receivables | $ 30,299 | $ 34,322 |
Financing Receivables - Short-T
Financing Receivables - Short-Term Payment Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Short-term payment plans, net | $ 12,032 | $ 15,059 |
Short-term payment plans, gross | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Short-term payment plans, gross | 2,361 | 5,773 |
Less: allowance for losses | (165) | (404) |
Short-term payment plans, net | $ 2,196 | $ 5,369 |
Financing Receivables - Compone
Financing Receivables - Components of Lease Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Sales-type leases, gross | $ 34,483 | $ 34,841 |
Less: allowance for losses | (2,806) | (2,163) |
Less: unearned income | (3,574) | (3,725) |
Sales-type leases, net | $ 28,103 | $ 28,953 |
Financing Receivables - Future
Financing Receivables - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
2020 | $ 12,085 | |
2021 | 10,468 | |
2022 | 6,435 | |
2023 | 3,368 | |
2024 | 1,709 | |
Thereafter | 418 | |
Total minimum payments to be received | 34,483 | |
Less: allowance for losses | (2,806) | $ (2,163) |
Less: unearned income | (3,574) | $ (3,725) |
Receivables, net | $ 28,103 |
Financing Receivables - Allowan
Financing Receivables - Allowance for Financing Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning Balance | $ 2,567 | $ 3,244 |
Provision | 970 | 1,691 |
Charge-offs | (566) | (2,368) |
Recoveries | 0 | 0 |
Ending Balance | $ 2,971 | $ 2,567 |
Financing Receivables - Analysi
Financing Receivables - Analysis of Age of Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
1 to 90 Days Past Due | $ 1,480 | $ 1,302 |
91 to 180 Days Past Due | 150 | 210 |
181 + Days Past Due | 207 | 245 |
Total Past Due | $ 1,837 | $ 1,757 |
Financing Receivables - Summary
Financing Receivables - Summary of Financing Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Customer balances with amounts reclassified to trade accounts receivable that are: | |||
1 to 90 Days Past Due | $ 18,015 | $ 17,290 | |
91 to 180 Days Past Due | 2,136 | 2,247 | |
181 Days Past Due | 1,972 | 885 | |
Total uninvoiced client financing receivables balances of clients with a trade accounts receivable | 22,123 | 20,422 | |
Total uninvoiced client financing receivables of clients with no related trade accounts receivable | 8,786 | 10,694 | |
Total financing receivables with contractual maturities of one year or less | 2,361 | 5,773 | |
Less: allowance for losses | (2,971) | (2,567) | $ (3,244) |
Total financing receivables | $ 30,299 | $ 34,322 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 117,300 | |
Accumulated amortization | $ (11,006) | (31,074) |
Intangible assets acquired | 7,890 | |
Net intangible assets | $ 83,110 | 86,226 |
Weighted average remaining years of useful life | 9 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 82,300 | |
Accumulated amortization | $ (6,980) | (19,476) |
Intangible assets acquired | 2,070 | |
Net intangible assets | $ 57,914 | 62,824 |
Weighted average remaining years of useful life | 9 years | |
Trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 10,900 | |
Accumulated amortization | $ (836) | (2,613) |
Intangible assets acquired | 220 | |
Net intangible assets | $ 7,671 | 8,287 |
Weighted average remaining years of useful life | 12 years | |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 24,100 | |
Accumulated amortization | $ (3,190) | (8,985) |
Intangible assets acquired | 5,600 | |
Net intangible assets | $ 17,525 | $ 15,115 |
Weighted average remaining years of useful life | 5 years |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 11,421 | |
2021 | 11,003 | |
2022 | 10,904 | |
2023 | 10,904 | |
2024 | 9,681 | |
Due thereafter | 29,197 | |
Net intangible assets | $ 83,110 | $ 86,226 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 140,449,000 | $ 140,449,000 | $ 168,449,000 |
Goodwill impairment | 0 | 0 | (28,000,000) |
Goodwill acquired | 9,767,000 | ||
Goodwill, ending balance | 150,216,000 | 140,449,000 | 140,449,000 |
Operating segments | |||
Goodwill [Roll Forward] | |||
Goodwill impairment | 0 | 0 | |
Operating segments | Acute Care EHR | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 97,095,000 | 97,095,000 | 97,095,000 |
Goodwill impairment | 0 | ||
Goodwill acquired | 0 | ||
Goodwill, ending balance | 97,095,000 | 97,095,000 | 97,095,000 |
Operating segments | Post-acute Care EHR | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 29,570,000 | 29,570,000 | 57,570,000 |
Goodwill impairment | 0 | 0 | (28,000,000) |
Goodwill acquired | 0 | ||
Goodwill, ending balance | 29,570,000 | 29,570,000 | 29,570,000 |
Operating segments | TruBridge | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 13,784,000 | 13,784,000 | 13,784,000 |
Goodwill impairment | 0 | ||
Goodwill acquired | 9,767,000 | ||
Goodwill, ending balance | $ 23,551,000 | $ 13,784,000 | $ 13,784,000 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 28,000,000 |
Operating segments | |||
Goodwill [Line Items] | |||
Goodwill impairment | 0 | 0 | |
Operating segments | Post-acute Care EHR | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 28,000,000 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 0 | |
Capital lease obligation | $ 250 | |
Less: debt issuance costs | (960) | (1,306) |
Debt obligation, net | 107,863 | 131,069 |
Less: current portion | (8,430) | (6,486) |
Long-term debt | 99,433 | 124,583 |
Line of credit | ||
Debt Instrument [Line Items] | ||
Debt obligations | 108,823 | 132,375 |
Debt obligation, net | 108,823 | |
Line of credit | Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt obligations | 88,823 | 102,432 |
Line of credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt obligations | $ 20,000 | $ 29,693 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Feb. 08, 2018USD ($) | Jan. 31, 2016USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2017 | Sep. 30, 2022USD ($) | Dec. 31, 2017 | Sep. 30, 2019USD ($) | Sep. 30, 2017 | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |||||||||
Amount of credit facility | $ 167,000,000 | ||||||||
Early repayments of lines of credit | $ 7,000,000 | ||||||||
Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, incremental facility capacity | 50,000,000 | ||||||||
Minimum fixed charge coverage ratio | 1.25 | ||||||||
Maximum consolidated leverage ratio | 3.50 | ||||||||
Prepayment amount from excess cash flow | 50.00% | ||||||||
Line of credit | Term loan facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of credit facility | 117,000,000 | $ 125,000,000 | |||||||
Quarterly principal payments | $ 1,500,000 | ||||||||
Line of credit | Term loan facility | Forecast | |||||||||
Debt Instrument [Line Items] | |||||||||
Quarterly principal payments | $ 2,900,000 | $ 2,200,000 | |||||||
Line of credit | Revolving credit facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of credit facility | $ 50,000,000 | $ 50,000,000 | |||||||
Line of credit | Revolving credit facility | Federal funds rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
Line of credit | Revolving credit facility | LIBOR rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
Line of credit | Revolving credit facility | LIBOR rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.00% | ||||||||
Line of credit | Revolving credit facility | LIBOR rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3.50% | ||||||||
Line of credit | Revolving credit facility | Base rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.00% | ||||||||
Line of credit | Revolving credit facility | Base rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.50% |
Long-Term Debt - Anticipated An
Long-Term Debt - Anticipated Annual Future Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt obligation, net | $ 107,863 | $ 131,069 |
Line of credit | ||
Debt Instrument [Line Items] | ||
2020 | 8,775 | |
2021 | 9,506 | |
2022 | 90,542 | |
2023 | 0 | |
Thereafter | 0 | |
Debt obligation, net | $ 108,823 |
Benefit Plans (Details)
Benefit Plans (Details) - CPSI 401(k) Retirement Plan - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 1994 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Requisite service period for employee eligibility | 1 year | |||
Employee contribution (up to) | 60.00% | |||
Employer contribution | $ 2.9 | $ 2.6 | $ 2.6 |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 2.2 | ||
Total rent expense | $ 2.6 | $ 2.6 | |
Operating lease payments | $ 1.6 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, term of contract | 12 months |
OPERATING LEASES - Supplemental
OPERATING LEASES - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 7,800 |
Other accrued liabilities | 1,544 |
Operating lease liabilities, net of current portion | 6,256 |
Total operating lease liabilities | $ 7,800 |
Weighted average remaining lease term in years | 7 years |
Weighted average discount rate | 5.10% |
OPERATING LEASES - Future Minim
OPERATING LEASES - Future Minimum Lease Payments Payable Under these Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,544 |
2021 | 1,518 |
2022 | 1,436 |
2023 | 1,363 |
2024 | 980 |
Thereafter | 2,383 |
Total lease payments | 9,224 |
Less imputed interest | (1,424) |
Operating lease liabilities | $ 7,800 |
Fair Value (Details)
Fair Value (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Carrying Amount | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration | $ 206 |
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] | |
Contingent consideration | 0 |
Fair Value | Significant Other Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration | 0 |
Fair Value | Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration | $ 206 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($)segment | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 3 | 3 | 3 | ||||||||
Sales revenues: | $ 70,638 | $ 68,699 | $ 66,156 | $ 69,141 | $ 72,327 | $ 69,297 | $ 67,905 | $ 70,882 | $ 274,634 | $ 280,411 | $ 276,927 |
Total costs of sales | 130,489 | 130,683 | 129,654 | ||||||||
Gross profit | $ 36,580 | $ 35,915 | $ 34,535 | $ 37,115 | $ 39,684 | $ 36,113 | $ 34,846 | $ 39,085 | 144,145 | 149,728 | 147,273 |
Corporate operating expenses | (119,562) | (124,846) | (152,087) | ||||||||
Other income | 807 | 803 | 407 | ||||||||
Gain on contingent consideration | 5,000 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | (1,340) | ||||||||
Interest expense | (6,694) | (7,577) | (7,736) | ||||||||
Income (loss) before taxes | 23,696 | 18,108 | (13,483) | ||||||||
Operating segments | Acute Care EHR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | 144,074 | 157,972 | 164,228 | ||||||||
Total costs of sales | 68,569 | 69,831 | 72,537 | ||||||||
Gross profit | 75,505 | 88,141 | 91,691 | ||||||||
Operating segments | Post-acute Care EHR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | 21,278 | 22,192 | 24,033 | ||||||||
Total costs of sales | 5,303 | 6,153 | 7,481 | ||||||||
Gross profit | 15,975 | 16,039 | 16,552 | ||||||||
Operating segments | TruBridge | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | 109,282 | 100,247 | 88,666 | ||||||||
Total costs of sales | 56,617 | 54,699 | 49,636 | ||||||||
Gross profit | 52,665 | 45,548 | 39,030 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate operating expenses | (119,562) | (124,846) | (152,087) | ||||||||
Recurring revenue | Operating segments | Acute Care EHR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | 109,046 | 111,936 | 113,056 | ||||||||
Recurring revenue | Operating segments | Post-acute Care EHR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | 17,466 | 18,599 | 20,122 | ||||||||
Non-recurring revenue | Operating segments | Acute Care EHR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | 35,028 | 46,036 | 51,172 | ||||||||
Non-recurring revenue | Operating segments | Post-acute Care EHR | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales revenues: | $ 3,812 | $ 3,593 | $ 3,911 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 11, 2020$ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Per share dividend announced by the company (in dollars per share) | $ 0.10 |
Quarterly Financial Statement_3
Quarterly Financial Statements (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales revenues: | $ 70,638 | $ 68,699 | $ 66,156 | $ 69,141 | $ 72,327 | $ 69,297 | $ 67,905 | $ 70,882 | $ 274,634 | $ 280,411 | $ 276,927 |
Gross profit | 36,580 | 35,915 | 34,535 | 37,115 | 39,684 | 36,113 | 34,846 | 39,085 | 144,145 | 149,728 | 147,273 |
Operating income (loss) | 8,912 | 6,007 | 3,616 | 6,048 | 9,648 | 5,361 | 2,225 | 7,648 | 24,583 | 24,882 | (4,814) |
Net income (loss) | $ 11,226 | $ 4,135 | $ 1,663 | $ 3,444 | $ 7,588 | $ 5,749 | $ 328 | $ 3,967 | $ 20,468 | $ 17,632 | $ (17,416) |
Net income (loss) per share | |||||||||||
Net income (loss) per share - basic (in dollars per share) | $ 0.78 | $ 0.29 | $ 0.12 | $ 0.24 | $ 0.54 | $ 0.41 | $ 0.02 | $ 0.29 | $ 1.43 | $ 1.26 | $ (1.27) |
Net income (loss) per share - diluted (in dollars per share) | $ 0.78 | $ 0.29 | $ 0.12 | $ 0.24 | $ 0.54 | $ 0.41 | $ 0.02 | $ 0.29 | $ 1.43 | $ 1.26 | $ (1.27) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts deducted from accounts receivable in the balance sheet - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 2,124 | $ 2,654 | $ 2,370 | |
Additions charged to cost and expenses | [1] | 1,378 | 1,485 | 1,598 |
Deductions | [2] | (1,424) | (2,015) | (1,314) |
Balance at end of period | $ 2,078 | $ 2,124 | $ 2,654 | |
[1] | Adjustments to allowance for change in estimates. | |||
[2] | Uncollectible accounts written off, net of recoveries. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Allowance for Credit Losses (Details) - Allowance for credit losses deducted from financing receivables in the balance sheet - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 2,567 | $ 3,244 | $ 2,198 | |
Additions charged to cost and expenses | [1] | 970 | 1,691 | 1,823 |
Deductions | [2] | (566) | (2,368) | (777) |
Balance at end of period | $ 2,971 | $ 2,567 | $ 3,244 | |
[1] | Adjustments to allowance for change in estimates. | |||
[2] | Uncollectible accounts written off, net of recoveries. |
Uncategorized Items - cpsi-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,970,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,970,000 |