Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
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 | |
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 | |
Title of 12(b) Security | Common Stock, par value $.001 per share | |
Trading Symbol | CPSI | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0001169445 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 14,512,105 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 4,280 | $ 7,357 |
Accounts receivable (net of allowance for expected credit losses of $2,064 and $2,078, respectively) | 38,241 | 38,819 |
Financing receivables, current portion, net (net of allowance for expected credit losses of $165 and $165, respectively) | 12,175 | 12,032 |
Inventories | 1,365 | 1,426 |
Prepaid income taxes | 1,208 | 1,337 |
Prepaid expenses and other | 6,606 | 5,861 |
Total current assets | 63,875 | 66,832 |
Property and equipment, net | 13,294 | 11,593 |
Software development costs, net | 883 | 0 |
Operating lease assets | 7,522 | 7,800 |
Financing receivables, net of current portion (net of allowance for expected credit losses of $3,140 and $2,806, respectively) | 17,794 | 18,267 |
Other assets, net of current portion | 2,105 | 1,771 |
Intangible assets, net | 80,244 | 83,110 |
Goodwill | 150,216 | 150,216 |
Total assets | 335,933 | 339,589 |
Current liabilities: | ||
Accounts payable | 9,010 | 8,804 |
Current portion of long-term debt | 8,430 | 8,430 |
Deferred revenue | 7,807 | 8,628 |
Accrued vacation | 4,649 | 4,301 |
Other accrued liabilities | 8,714 | 11,767 |
Total current liabilities | 38,610 | 41,930 |
Long-term debt, net of current portion | 93,325 | 99,433 |
Operating lease liabilities, net of current portion | 5,950 | 6,256 |
Deferred tax liabilities | 8,688 | 7,623 |
Total liabilities | 146,573 | 155,242 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 30,000 shares authorized; 14,512 and 14,356 shares issued and outstanding, respectively | 15 | 14 |
Additional paid-in capital | 176,975 | 174,618 |
Retained earnings | 12,370 | 9,715 |
Total stockholders’ equity | 189,360 | 184,347 |
Total liabilities and stockholders’ equity | $ 335,933 | $ 339,589 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 2,064 | $ 2,078 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 14,512,000 | 14,356,000 |
Common stock, shares outstanding (in shares) | 14,512,000 | 14,356,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales revenues: | ||
Total sales revenues | $ 69,757 | $ 69,141 |
Costs of sales: | ||
Total costs of sales | 33,644 | 32,026 |
Gross profit | 36,113 | 37,115 |
Operating expenses: | ||
Product development | 8,271 | 9,228 |
Sales and marketing | 6,997 | 7,492 |
General and administrative | 11,847 | 11,824 |
Amortization of acquisition-related intangibles | 2,866 | 2,523 |
Total operating expenses | 29,981 | 31,067 |
Operating income | 6,132 | 6,048 |
Other income (expense): | ||
Other income | 362 | 248 |
Interest expense | (1,179) | (1,804) |
Total other income (expense) | (817) | (1,556) |
Income before taxes | 5,315 | 4,492 |
Provision for income taxes | 1,225 | 1,048 |
Net income | $ 4,090 | $ 3,444 |
Net income (loss) per common share-basic (in dollars per share) | $ 0.28 | $ 0.24 |
Net income (loss) per common share-diluted (in dollars per share) | $ 0.28 | $ 0.24 |
Weighted average shares outstanding used in per common share computations: | ||
Basic (in shares) | 13,904 | 13,656 |
Diluted (in shares) | 13,904 | 13,656 |
Dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 |
System sales and support | ||
Sales revenues: | ||
Total sales revenues | $ 41,186 | $ 43,247 |
Costs of sales: | ||
Total costs of sales | 18,587 | 18,337 |
TruBridge | ||
Sales revenues: | ||
Total sales revenues | 28,571 | 25,894 |
Costs of sales: | ||
Total costs of sales | $ 15,057 | $ 13,689 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) |
Beginning Balance (in shares) at Dec. 31, 2018 | 14,083 | |||
Beginning Balance at Dec. 31, 2018 | $ 159,783 | $ 14 | $ 164,793 | $ (5,024) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 3,444 | 3,444 | ||
Issuance of restricted stock (in shares) | 273 | |||
Issuance of restricted stock | 0 | |||
Stock-based compensation | 2,436 | 2,436 | ||
Dividends | (1,422) | (1,422) | ||
Ending Balance (in shares) at Mar. 31, 2019 | 14,356 | |||
Ending Balance at Mar. 31, 2019 | 164,241 | $ 14 | 167,229 | (3,002) |
Beginning Balance (in shares) at Dec. 31, 2019 | 14,356 | |||
Beginning Balance at Dec. 31, 2019 | 184,347 | $ 14 | 174,618 | 9,715 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 4,090 | 4,090 | ||
Issuance of restricted stock (in shares) | 156 | |||
Issuance of restricted stock | 0 | $ 1 | (1) | |
Stock-based compensation | 2,358 | 2,358 | ||
Dividends | (1,435) | (1,435) | ||
Ending Balance (in shares) at Mar. 31, 2020 | 14,512 | |||
Ending Balance at Mar. 31, 2020 | $ 189,360 | $ 15 | $ 176,975 | $ 12,370 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities: | ||
Net income | $ 4,090 | $ 3,444 |
Adjustments to net income: | ||
Provision for bad debt | 999 | 1,207 |
Deferred taxes | 1,065 | 854 |
Stock-based compensation | 2,358 | 2,436 |
Depreciation | 420 | 361 |
Amortization of acquisition-related intangibles | 2,866 | 2,523 |
Amortization of software development costs | 38 | 0 |
Amortization of deferred finance costs | 86 | 86 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (88) | (156) |
Financing receivables | (4) | 183 |
Inventories | 62 | (251) |
Prepaid expenses and other | (1,079) | (772) |
Accounts payable | 206 | 1,239 |
Deferred revenue | (821) | 698 |
Other liabilities | (2,732) | (3,808) |
Prepaid income taxes/income taxes payable | 128 | (156) |
Net cash provided by operating activities | 7,594 | 7,888 |
Investing Activities: | ||
Investment in software development | (921) | 0 |
Purchase of property and equipment | (2,120) | (473) |
Net cash used in investing activities | (3,041) | (473) |
Financing Activities: | ||
Dividends paid | (1,435) | (1,422) |
Payments of long-term debt principal | (2,195) | (7,110) |
Payments of contingent consideration | 0 | (206) |
Payments of revolving line of credit | (4,000) | 0 |
Net cash used in financing activities | (7,630) | (8,738) |
Decrease in cash and cash equivalents | (3,077) | (1,323) |
Cash and cash equivalents at beginning of period | 7,357 | 5,732 |
Cash and cash equivalents at end of period | 4,280 | 4,409 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,093 | 1,289 |
Cash paid for income taxes, net of refund | $ 31 | $ 350 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are considered of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results. Certain footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated balance sheet at that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of Computer Programs and Systems, Inc. ("CPSI" or the "Company") for the year ended December 31, 2019 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Principles of Consolidation The condensed consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge"), Evident, LLC ("Evident"), Healthland Holding Inc. ("HHI"), and iNetXperts, Corp. d/b/a Get Real Health ("Get Real Health"), 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. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Adopted in 2020 In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses , which requires 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. We adopted this guidance as of January 1, 2020. Adoption of the standard did not have a material impact on our consolidated financial statements. New Accounting Standards Yet to be Adopted 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. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
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 Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , 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, training, hardware and software application support and hardware maintenance services to acute care and post-acute care community hospitals. Non-recurring Revenues • Perpetual software licenses, installation, conversion, and related training 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, installation, conversion, and related training 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 11 - 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 on 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. 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 • 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. 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 - Segment Reporting, 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 three months ended March 31, 2020 and 2019, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ 8,628 $ 10,201 Deferred revenue recorded 6,194 6,530 Less deferred revenue recognized as revenue (7,015) (5,832) Ending balance $ 7,807 $ 10,899 The deferred revenue recorded during the three months ended March 31, 2020 is comprised primarily of the annual renewals of certain software subscriptions billed during the first quarter of each year and deposits collected for future EHR installations. The deferred revenue recognized as revenue during the three months ended March 31, 2020 and 2019 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 licensing agreements, 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 of services performed, are capitalized and amortized over the prepayment period. Costs to obtain a contract are expensed within sales and marketing expenses in the accompanying condensed consolidated statements of income. 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." 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 condensed consolidated balance sheets. The following table details costs to obtain and fulfill contracts with customers for the three months ended March 31, 2020 and 2019, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ 4,440 $ 3,017 Costs to obtain and fulfill contracts capitalized 1,888 1,922 Less costs to obtain and fulfill contracts recognized as expense (1,285) (1,134) Ending balance $ 5,043 $ 3,805 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. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 3 Months Ended |
Mar. 31, 2020 | |
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 was 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 was based on management's judgment after evaluating several factors, including a valuation assessment. The allocation of the purchase price paid for Get Real Health 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 16 - 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. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Land $ 2,848 $ 2,848 Buildings and improvements 8,039 8,039 Computer equipment 6,131 4,011 Leasehold improvements 1,712 1,712 Office furniture and fixtures 2,018 2,018 Automobiles 18 18 Property and equipment, gross 20,766 18,646 Less: accumulated depreciation (7,472) (7,053) Property and equipment, net $ 13,294 $ 11,593 |
SOFTWARE DEVELOPMENT
SOFTWARE DEVELOPMENT | 3 Months Ended |
Mar. 31, 2020 | |
Research and Development [Abstract] | |
SOFTWARE DEVELOPMENT | SOFTWARE DEVELOPMENT Software development costs are accounted for in accordance with ASC 350-40, Internal-Use Software. We capitalize incurred labor costs for software development from the time the preliminary project phase is completed until the software is available for general release. Research and development costs and other computer software maintenance costs related to software development are expensed as incurred. We estimate the useful life of our capitalized software and amortize its value on a straight-line basis over that estimated life, which is estimated to be five years. If the actual life is shorter than our estimated useful life, we will amortize the remaining book value over the remaining useful life or the asset may be deemed to be impaired and, accordingly, a write-down of the value of the asset may be recorded as a charge to earnings. Upon the software's availability for general release, we commence amortization of the capitalized software costs on a module-by-module basis. Software development, net was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Software development costs $ 921 $ — Less: accumulated amortization (38) — Software development costs, net $ 883 $ — |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES Other accrued liabilities was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Salaries and benefits $ 4,052 $ 6,946 Severance 128 329 Commissions 1,153 1,037 Self-insurance reserves 1,214 1,382 Other 595 529 Operating lease liabilities, current portion 1,572 1,544 Other accrued liabilities $ 8,714 $ 11,767 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
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 10) are considered participating securities under FASB Codification topic, Earnings Per Share , because they entitle holders to non-forfeitable rights to dividends until the awards vest or are forfeited. When a company has a security that qualifies as a "participating security," the Codification requires the use of the two-class method when computing basic EPS. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net income to allocate to common stockholders, income is allocated to both common stock and participating securities based on their respective weighted average shares outstanding for the period, with net income attributable to common stockholders ultimately equaling net income less net income attributable to participating securities. Diluted EPS for the Company's common stock is computed using the more dilutive of the two-class method or the treasury stock method. The following is a calculation of the basic and diluted EPS for the Company's common stock, including a reconciliation between net income and net income attributable to common stockholders: Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Net income $ 4,090 $ 3,444 Less: Net income attributable to participating securities (134) (130) Net income attributable to common stockholders $ 3,956 $ 3,314 Weighted average shares outstanding used in basic per common share computations 13,904 13,656 Add: Dilutive potential common shares — — Weighted average shares outstanding used in diluted per common share computations 13,904 13,656 Basic EPS $ 0.28 $ 0.24 Diluted EPS $ 0.28 $ 0.24 During 2018, 2019 and 2020, performance share awards were granted to certain executive officers and key employees of the Company that will result in the issuance of time-vesting restricted stock if the predefined performance criteria are met. The awards provide for an aggregate target of 252,852 shares, none of which have been included in the calculation of diluted EPS for the three months ended March 31, 2020 because the related threshold award performance levels have not been achieved as of March 31, 2020. See Note 10 - Stock-Based Compensation for more information. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company determines the tax provision for interim periods using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our effective tax rate for the three months ended March 31, 2020 and 2019, was a tax expense of 23%. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATIONStock-based compensation expense is measured at the grant date based on the fair value of the award, and is recognized as an expense over the employee's or non-employee director's requisite service period. The following table details total stock-based compensation expense for the three months ended March 31, 2020 and 2019, included in the condensed consolidated statements of income: Three Months Ended March 31, (In thousands) 2020 2019 Costs of sales $ 528 $ 531 Operating expenses 1,830 1,905 Pre-tax stock-based compensation expense 2,358 2,436 Less: income tax effect (519) (536) Net stock-based compensation expense $ 1,839 $ 1,900 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"). As of March 31, 2020, th ere was $13.6 million of unrecognized compensation expense related to unvested stock-based compensation arrangements granted under the Plans, which is expected to be recognized over a weighted-average period of 2.0 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 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 three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Shares Weighted-Average Shares Weighted-Average Unvested restricted stock outstanding at beginning of period 525,859 $ 30.51 475,132 $ 32.00 Granted 136,771 26.16 133,936 30.89 Performance share awards settled through the issuance of restricted stock 19,678 30.15 138,566 29.80 Vested (202,468) 30.20 (143,945) 33.81 Unvested restricted stock outstanding at end of period 479,840 $ 29.39 603,689 $ 30.82 Performance Share Awards The Company granted 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 a one-year or three-year performance period, based on the Company's achievement of performance goals predetermined by the Compensation Committee of the Board of Directors at the time of grant. The three-year performance share awards include a modifier to the total number of shares earned based on the Company's total shareholder return ("TSR") compared to an industry index. If certain levels of the performance objective are met, the award results in the issuance of shares of restricted stock or common stock corresponding to such level. One-year performance share awards are then subject to time-based vesting pursuant to which the shares of restricted stock vest in equal annual installments over the applicable vesting period, which is generally three years. Three-year performance share awards that result in the issuance of shares of common stock are not subject to time-based vesting at the conclusion of the three-year performance period. In the event that the Company's financial performance meets the predetermined targets for the performance objectives of the one-year and three-year performance share awards, the Company will issue each award recipient the number of shares of restricted stock or common stock, as applicable, equal to the target award specified in the individual's underlying performance share award agreement. In the event the financial results of the Company exceed the predetermined targets, additional shares up to the maximum award may be issued. In the event the financial results of the Company fall below the predetermined targets, a reduced number of shares may be issued. If the financial results of the Company fall below the threshold performance levels, no shares will be issued. The total number of shares issued for the three-year performance share award may be increased, decreased, or unchanged based on the TSR modifier described above. 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 and three-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 during the three months ended March 31, 2020 and 2019 is as follows, based on the target award amounts set forth in the performance share award agreements: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Shares Weighted-Average Shares Weighted-Average Performance share awards outstanding at beginning of period 200,709 $ 30.75 184,776 $ 30.15 Granted 107,298 26.96 — — Adjusted for actual performance, net of forfeitures (35,477) 30.15 46,176 29.80 Performance share awards settled through the issuance of restricted stock (19,678) 30.15 (138,566) 29.80 Performance share awards outstanding at end of period 252,852 $ 29.27 92,386 $ 30.50 |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | FINANCING RECEIVABLES Short-Term Payment Plans The Company provides fixed monthly payment arrangements ("short-term payment plans") over terms ranging from three (In thousands) March 31, 2020 December 31, 2019 Short-term payment plans, gross $ 2,356 $ 2,361 Less: allowance for losses (165) (165) Short-term payment plans, net $ 2,191 $ 2,196 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 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 condensed consolidated statements of income. These receivables typically have terms from two The components of these receivables were as follows at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Long-term financing arrangements, gross $ 34,328 $ 34,483 Less: allowance for expected credit losses (3,140) (2,806) Less: unearned income (3,410) (3,574) Long-term financing arrangements, net $ 27,778 $ 28,103 Future minimum payments to be received subsequent to March 31, 2020 are as follows: (In thousands) Years Ending December 31, 2020 $ 9,427 2021 10,806 2022 6,896 2023 4,038 2024 2,403 Thereafter 758 Total minimum payments to be received 34,328 Less: allowance for expected credit losses (3,140) Less: unearned income (3,410) Receivables, net $ 27,778 Credit Quality of Financing Receivables and Allowance for Expected Credit Losses The following table is a roll-forward of the allowance for expected credit losses for the three months ended March 31, 2020 and year ended December 31, 2019: (In thousands) Balance at Beginning of Period Provision Charge-offs Recoveries Balance at End of Period March 31, 2020 $ 2,971 $ 334 $ — $ — $ 3,305 December 31, 2019 $ 2,567 $ 970 $ (566) $ — $ 2,971 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, current and future 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 expected 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 condensed consolidated balance sheets. The following is an analysis of the age of financing receivables amounts (excluding short-term payment plans) that have been reclassified to trade accounts receivable and were past due as of March 31, 2020 and December 31, 2019: (In thousands) 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due March 31, 2020 $ 1,401 $ 352 $ 257 $ 2,010 December 31, 2019 $ 1,480 $ 150 $ 207 $ 1,837 From time to time, the Company may agree to alternative payment terms outside of the terms of the original financing receivable agreement due to customer difficulties in achieving the original terms. In general, such alternative payment arrangements do not result in a re-aging of the related receivables. Rather, payments pursuant to any alternative payment arrangements are applied to the already outstanding invoices beginning with the oldest outstanding invoices as the payments are received. Because amounts are reclassified to trade accounts receivable when they become due, there are no past due amounts included within financing receivables, current portion, net or financing receivables, net of current portion in the accompanying condensed consolidated balance sheets. The Company utilizes an aging of trade accounts receivable as the primary credit quality indicator for its financing receivables, which is facilitated by the reclassification of customer payment amounts to trade accounts receivable when they become due. The table below categorizes customer financing receivable balances (excluding short-term payment plans) based on the age of the oldest payment outstanding that has been reclassified to trade accounts receivable: (In thousands) March 31, 2020 December 31, 2019 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 $ 15,705 $ 18,015 Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due 2,893 2,136 Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due 3,455 1,972 Total uninvoiced client financing receivables balances of clients with a trade accounts receivable $ 22,053 $ 22,123 Total uninvoiced client financing receivables of clients with no related trade accounts receivable 8,865 8,786 Total financing receivables with contractual maturities of one year or less 2,356 2,361 Less: allowance for expected credit losses (3,305) (2,971) Total financing receivables $ 29,969 $ 30,299 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILLOur purchased definite-lived intangible assets as of March 31, 2020 and December 31, 2019 are summarized as follows: (In thousands) Customer Relationships Trademark Developed Technology Total Gross carrying amount as of December 31, 2018 $ 82,300 $ 10,900 $ 24,100 $ 117,300 Intangible assets acquired for year ended December 31, 2019 2,070 220 5,600 7,890 Accumulated amortization as of December 31, 2019 (26,456) (3,449) (12,175) (42,080) Net intangible assets as of December 31, 2019 $ 57,914 $ 7,671 $ 17,525 $ 83,110 Gross carrying amount as of March 31, 2020 $ 84,370 $ 11,120 $ 29,700 $ 125,190 Net intangible assets as of December 31, 2019 57,914 7,671 17,525 83,110 Amortization expenses as of March 31, 2020 (1,800) (212) (854) (2,866) Net intangible assets as of March 31, 2020 $ 56,114 $ 7,459 $ 16,671 $ 80,244 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 March 31, 2020: (In thousands) For the year ended December 31, 2020 $ 8,555 2021 11,003 2022 10,904 2022 10,904 2024 9,681 Thereafter 29,197 Total $ 80,244 The following table sets forth the change in the carrying amount of goodwill by segment for the three months ended March 31, 2020: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2019 $ 97,095 $ 29,570 $ 23,551 $ 150,216 Balance as of March 31, 2020 $ 97,095 $ 29,570 $ 23,551 $ 150,216 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Term loan facility $ 86,630 $ 88,823 Revolving credit facility 16,000 20,000 Debt obligations 102,630 108,823 Less: unamortized debt issuance costs (875) (960) Debt obligation, net 101,755 107,863 Less: current portion (8,430) (8,430) Long-term debt $ 93,325 $ 99,433 As of March 31, 2020, the carrying value of debt approximated the fair value due to the variable interest rate, which reflected the market rate. 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 to the credit agreement that increased the aggregate principal amount of our credit facilities from $162 million to $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 and revolving credit facility are as follows as of March 31, 2020: (In thousands) 2020 $ 6,581 2021 9,506 2022 86,543 2023 — 2024 — Thereafter — $ 102,630 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. The credit agreement, as amended by the Third Amendment, provides incremental facility capacity of $50 million, subject to certain conditions. The credit agreement includes a number of restrictive covenants that, among other things and in each case subject to certain exceptions and baskets, impose operating and financial restrictions on the Company and the Subsidiary Guarantors, including the ability to incur additional debt; incur liens and encumbrances; make certain restricted payments, including paying dividends on the Company's equity securities or payments to redeem, repurchase or retire the Company's equity securities (which are subject to our compliance, on a pro forma basis to give effect to the restricted payment, with the fixed charge coverage ratio and consolidated leverage ratio described below); enter into certain restrictive agreements; make investments, loans and acquisitions; merge or consolidate with any other person; dispose of assets; enter into sale and leaseback transactions; engage in transactions with affiliates; and materially alter the business we conduct. The credit agreement requires the Company to maintain a minimum fixed charge coverage ratio of 1.25:1.00 throughout the duration of such agreement. Under the credit agreement, the Company is required to comply with a maximum consolidated leverage ratio of 3.50:1.00. The credit agreement also contains customary representations and warranties, affirmative covenants and events of default. We believe that we were in compliance with the covenants contained in the credit agreement as of March 31, 2020. |
OPERATING LEASES
OPERATING LEASES | 3 Months Ended |
Mar. 31, 2020 | |
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 was as follows: (In thousands) March 31, 2020 Operating lease assets: Operating lease assets $ 7,522 Operating lease liabilities: Other accrued liabilities $ 1,572 Operating lease liabilities, net of current portion 5,950 Total operating lease liabilities $ 7,522 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 March 31, 2020 are as follows: (In thousands) 2020 $ 1,177 2021 1,518 2022 1,436 2023 1,363 2024 980 Thereafter 2,383 Total lease payments 8,857 Less imputed interest (1,335) Total $ 7,522 Total rent expense for the three months ended March 31, 2020 and 2019 was $0.4 million and $0.6 million, respectively. Total cash paid for amounts included in the measurement of lease liabilities within operating cash flows from operating leases for the three months ended March 31, 2020 was $0.4 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE FASB Codification topic, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and expands financial statement disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Codification does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. The Codification requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. As of March 31, 2020 and December 31, 2019, we did not have any instruments that require fair value measurement. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2020 | |
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 cost 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 and gross profits of our three operating segments for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (In thousands) 2020 2019 Revenues: Acute Care EHR Recurring revenue $ 26,438 $ 27,389 Non-recurring revenue 10,077 10,059 Total Acute Care EHR revenue 36,515 37,448 Post-acute Care EHR Recurring revenue 4,134 4,478 Non-recurring revenue 537 1,321 Total Post-acute Care EHR revenue 4,671 5,799 TruBridge 28,571 25,894 Total revenues $ 69,757 $ 69,141 Cost of sales: Acute Care EHR $ 17,259 $ 17,066 Post-acute Care EHR 1,328 1,271 TruBridge 15,057 13,689 Total cost of sales $ 33,644 $ 32,026 Gross profit: Acute Care EHR $ 19,256 $ 20,382 Post-acute Care EHR 3,343 4,528 TruBridge 13,514 12,205 Total gross profit $ 36,113 $ 37,115 Corporate operating expenses $ (29,981) $ (31,067) Other income 362 248 Interest expense (1,179) (1,804) Income before taxes $ 5,315 $ 4,492 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSDividendsOn May 5, 2020, the Company announced a dividend for the second quarter of 2020 in the amount of $0.10 per share, payable on May 29, 2020, to stockholders of record as of the close of business on May 15, 2020. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are considered of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results. Certain footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated balance sheet at that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of Computer Programs and Systems, Inc. ("CPSI" or the "Company") for the year ended December 31, 2019 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge"), Evident, LLC ("Evident"), Healthland Holding Inc. ("HHI"), and iNetXperts, Corp. d/b/a Get Real Health ("Get Real Health"), 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. |
Recent Account Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Adopted in 2020 In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses , which requires 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. We adopted this guidance as of January 1, 2020. Adoption of the standard did not have a material impact on our consolidated financial statements. New Accounting Standards Yet to be Adopted 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. |
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 Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , 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, training, hardware and software application support and hardware maintenance services to acute care and post-acute care community hospitals. Non-recurring Revenues • Perpetual software licenses, installation, conversion, and related training 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, installation, conversion, and related training 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 11 - 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 on 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. 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 • 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. 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 - Segment Reporting, 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 three months ended March 31, 2020 and 2019, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ 8,628 $ 10,201 Deferred revenue recorded 6,194 6,530 Less deferred revenue recognized as revenue (7,015) (5,832) Ending balance $ 7,807 $ 10,899 The deferred revenue recorded during the three months ended March 31, 2020 is comprised primarily of the annual renewals of certain software subscriptions billed during the first quarter of each year and deposits collected for future EHR installations. The deferred revenue recognized as revenue during the three months ended March 31, 2020 and 2019 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 licensing agreements, 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 of services performed, are capitalized and amortized over the prepayment period. Costs to obtain a contract are expensed within sales and marketing expenses in the accompanying condensed consolidated statements of income. 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." 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 condensed consolidated balance sheets. The following table details costs to obtain and fulfill contracts with customers for the three months ended March 31, 2020 and 2019, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ 4,440 $ 3,017 Costs to obtain and fulfill contracts capitalized 1,888 1,922 Less costs to obtain and fulfill contracts recognized as expense (1,285) (1,134) Ending balance $ 5,043 $ 3,805 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. |
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 10) 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. |
Income Taxes | The Company determines the tax provision for interim periods using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. |
Stock-Based Compensation | STOCK-BASED COMPENSATIONStock-based compensation expense 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. |
Fair Value | FASB Codification topic, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and expands financial statement disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Codification does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. The Codification requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following table details deferred revenue for the three months ended March 31, 2020 and 2019, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ 8,628 $ 10,201 Deferred revenue recorded 6,194 6,530 Less deferred revenue recognized as revenue (7,015) (5,832) Ending balance $ 7,807 $ 10,899 |
Schedule of 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 condensed consolidated balance sheets. The following table details costs to obtain and fulfill contracts with customers for the three months ended March 31, 2020 and 2019, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ 4,440 $ 3,017 Costs to obtain and fulfill contracts capitalized 1,888 1,922 Less costs to obtain and fulfill contracts recognized as expense (1,285) (1,134) Ending balance $ 5,043 $ 3,805 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price paid for Get Real Health 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 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Land $ 2,848 $ 2,848 Buildings and improvements 8,039 8,039 Computer equipment 6,131 4,011 Leasehold improvements 1,712 1,712 Office furniture and fixtures 2,018 2,018 Automobiles 18 18 Property and equipment, gross 20,766 18,646 Less: accumulated depreciation (7,472) (7,053) Property and equipment, net $ 13,294 $ 11,593 |
SOFTWARE DEVELOPMENT (Tables)
SOFTWARE DEVELOPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Research and Development [Abstract] | |
Schedule of software development, net | Software development, net was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Software development costs $ 921 $ — Less: accumulated amortization (38) — Software development costs, net $ 883 $ — |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Salaries and benefits $ 4,052 $ 6,946 Severance 128 329 Commissions 1,153 1,037 Self-insurance reserves 1,214 1,382 Other 595 529 Operating lease liabilities, current portion 1,572 1,544 Other accrued liabilities $ 8,714 $ 11,767 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a calculation of the basic and diluted EPS for the Company's common stock, including a reconciliation between net income and net income attributable to common stockholders: Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Net income $ 4,090 $ 3,444 Less: Net income attributable to participating securities (134) (130) Net income attributable to common stockholders $ 3,956 $ 3,314 Weighted average shares outstanding used in basic per common share computations 13,904 13,656 Add: Dilutive potential common shares — — Weighted average shares outstanding used in diluted per common share computations 13,904 13,656 Basic EPS $ 0.28 $ 0.24 Diluted EPS $ 0.28 $ 0.24 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Total Stock-Based Compensation Expense | The following table details total stock-based compensation expense for the three months ended March 31, 2020 and 2019, included in the condensed consolidated statements of income: Three Months Ended March 31, (In thousands) 2020 2019 Costs of sales $ 528 $ 531 Operating expenses 1,830 1,905 Pre-tax stock-based compensation expense 2,358 2,436 Less: income tax effect (519) (536) Net stock-based compensation expense $ 1,839 $ 1,900 |
Summary of Restricted Stock Activity | A summary of restricted stock activity (including shares of restricted stock issued pursuant to the settlement of performance share awards) under the Plans during the three months ended March 31, 2020 and 2019 is as follows: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Shares Weighted-Average Shares Weighted-Average Unvested restricted stock outstanding at beginning of period 525,859 $ 30.51 475,132 $ 32.00 Granted 136,771 26.16 133,936 30.89 Performance share awards settled through the issuance of restricted stock 19,678 30.15 138,566 29.80 Vested (202,468) 30.20 (143,945) 33.81 Unvested restricted stock outstanding at end of period 479,840 $ 29.39 603,689 $ 30.82 |
Summary of Performance Share Award Activity | A summary of performance share award activity under the Plans during the three months ended March 31, 2020 and 2019 is as follows, based on the target award amounts set forth in the performance share award agreements: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Shares Weighted-Average Shares Weighted-Average Performance share awards outstanding at beginning of period 200,709 $ 30.75 184,776 $ 30.15 Granted 107,298 26.96 — — Adjusted for actual performance, net of forfeitures (35,477) 30.15 46,176 29.80 Performance share awards settled through the issuance of restricted stock (19,678) 30.15 (138,566) 29.80 Performance share awards outstanding at end of period 252,852 $ 29.27 92,386 $ 30.50 |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Components of Short Term Payment Plans | These receivables, included in the current portion of financing receivables, were comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Short-term payment plans, gross $ 2,356 $ 2,361 Less: allowance for losses (165) (165) Short-term payment plans, net $ 2,191 $ 2,196 |
Components of Lease Receivables | The components of these receivables were as follows at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Long-term financing arrangements, gross $ 34,328 $ 34,483 Less: allowance for expected credit losses (3,140) (2,806) Less: unearned income (3,410) (3,574) Long-term financing arrangements, net $ 27,778 $ 28,103 |
Future Minimum Lease Payments to be Received | Future minimum payments to be received subsequent to March 31, 2020 are as follows: (In thousands) Years Ending December 31, 2020 $ 9,427 2021 10,806 2022 6,896 2023 4,038 2024 2,403 Thereafter 758 Total minimum payments to be received 34,328 Less: allowance for expected credit losses (3,140) Less: unearned income (3,410) Receivables, net $ 27,778 |
Allowance for Financing Credit Losses | The following table is a roll-forward of the allowance for expected credit losses for the three months ended March 31, 2020 and year ended December 31, 2019: (In thousands) Balance at Beginning of Period Provision Charge-offs Recoveries Balance at End of Period March 31, 2020 $ 2,971 $ 334 $ — $ — $ 3,305 December 31, 2019 $ 2,567 $ 970 $ (566) $ — $ 2,971 |
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 March 31, 2020 and December 31, 2019: (In thousands) 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due March 31, 2020 $ 1,401 $ 352 $ 257 $ 2,010 December 31, 2019 $ 1,480 $ 150 $ 207 $ 1,837 |
Schedule of Financing Receivable Credit Quality Indicators | The table below categorizes customer financing receivable balances (excluding short-term payment plans) based on the age of the oldest payment outstanding that has been reclassified to trade accounts receivable: (In thousands) March 31, 2020 December 31, 2019 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 $ 15,705 $ 18,015 Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due 2,893 2,136 Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due 3,455 1,972 Total uninvoiced client financing receivables balances of clients with a trade accounts receivable $ 22,053 $ 22,123 Total uninvoiced client financing receivables of clients with no related trade accounts receivable 8,865 8,786 Total financing receivables with contractual maturities of one year or less 2,356 2,361 Less: allowance for expected credit losses (3,305) (2,971) Total financing receivables $ 29,969 $ 30,299 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Definite-lived Intangible Assets | Our purchased definite-lived intangible assets as of March 31, 2020 and December 31, 2019 are summarized as follows: (In thousands) Customer Relationships Trademark Developed Technology Total Gross carrying amount as of December 31, 2018 $ 82,300 $ 10,900 $ 24,100 $ 117,300 Intangible assets acquired for year ended December 31, 2019 2,070 220 5,600 7,890 Accumulated amortization as of December 31, 2019 (26,456) (3,449) (12,175) (42,080) Net intangible assets as of December 31, 2019 $ 57,914 $ 7,671 $ 17,525 $ 83,110 Gross carrying amount as of March 31, 2020 $ 84,370 $ 11,120 $ 29,700 $ 125,190 Net intangible assets as of December 31, 2019 57,914 7,671 17,525 83,110 Amortization expenses as of March 31, 2020 (1,800) (212) (854) (2,866) Net intangible assets as of March 31, 2020 $ 56,114 $ 7,459 $ 16,671 $ 80,244 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 March 31, 2020: (In thousands) For the year ended December 31, 2020 $ 8,555 2021 11,003 2022 10,904 2022 10,904 2024 9,681 Thereafter 29,197 Total $ 80,244 |
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 three months ended March 31, 2020: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2019 $ 97,095 $ 29,570 $ 23,551 $ 150,216 Balance as of March 31, 2020 $ 97,095 $ 29,570 $ 23,551 $ 150,216 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt was comprised of the following at March 31, 2020 and December 31, 2019: (In thousands) March 31, 2020 December 31, 2019 Term loan facility $ 86,630 $ 88,823 Revolving credit facility 16,000 20,000 Debt obligations 102,630 108,823 Less: unamortized debt issuance costs (875) (960) Debt obligation, net 101,755 107,863 Less: current portion (8,430) (8,430) Long-term debt $ 93,325 $ 99,433 |
Schedule of Annual Future Maturities of the Term Loan Facility and Revolving Credit Facility | Anticipated annual future maturities of the term loan facility and revolving credit facility are as follows as of March 31, 2020: (In thousands) 2020 $ 6,581 2021 9,506 2022 86,543 2023 — 2024 — Thereafter — $ 102,630 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease, Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating leases was as follows: (In thousands) March 31, 2020 Operating lease assets: Operating lease assets $ 7,522 Operating lease liabilities: Other accrued liabilities $ 1,572 Operating lease liabilities, net of current portion 5,950 Total operating lease liabilities $ 7,522 Weighted average remaining lease term in years 7 Weighted average discount rate 5.1% |
Schedule of Operating Lease, Liability, Maturity | The future minimum lease payments payable under these operating leases subsequent to March 31, 2020 are as follows: (In thousands) 2020 $ 1,177 2021 1,518 2022 1,436 2023 1,363 2024 980 Thereafter 2,383 Total lease payments 8,857 Less imputed interest (1,335) Total $ 7,522 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents a summary of the revenues and gross profits of our three operating segments for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (In thousands) 2020 2019 Revenues: Acute Care EHR Recurring revenue $ 26,438 $ 27,389 Non-recurring revenue 10,077 10,059 Total Acute Care EHR revenue 36,515 37,448 Post-acute Care EHR Recurring revenue 4,134 4,478 Non-recurring revenue 537 1,321 Total Post-acute Care EHR revenue 4,671 5,799 TruBridge 28,571 25,894 Total revenues $ 69,757 $ 69,141 Cost of sales: Acute Care EHR $ 17,259 $ 17,066 Post-acute Care EHR 1,328 1,271 TruBridge 15,057 13,689 Total cost of sales $ 33,644 $ 32,026 Gross profit: Acute Care EHR $ 19,256 $ 20,382 Post-acute Care EHR 3,343 4,528 TruBridge 13,514 12,205 Total gross profit $ 36,113 $ 37,115 Corporate operating expenses $ (29,981) $ (31,067) Other income 362 248 Interest expense (1,179) (1,804) Income before taxes $ 5,315 $ 4,492 |
REVENUE RECOGNITION (Detail)
REVENUE RECOGNITION (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Minimum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Maintenance contract term | 3 years |
Maximum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Maintenance contract term | 5 years |
REVENUE RECOGNITION Deferred Re
REVENUE RECOGNITION Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 8,628 | $ 10,201 |
Deferred revenue recorded | 6,194 | 6,530 |
Less deferred revenue recognized as revenue | (7,015) | (5,832) |
Ending balance | $ 7,807 | $ 10,899 |
REVENUE RECOGNITION Costs to ob
REVENUE RECOGNITION Costs to obtain and fulfill contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning balance | $ 4,440 | $ 3,017 |
Costs to obtain and fulfill contracts capitalized | 1,888 | 1,922 |
Less costs to obtain and fulfill contracts recognized as expense | (1,285) | (1,134) |
Ending balance | $ 5,043 | $ 3,805 |
BUSINESS COMBINATION - Prelimin
BUSINESS COMBINATION - Preliminary allocation of the purchase price paid (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | May 03, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 150,216 | $ 150,216 | |
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) | ||
Net assets acquired | $ 10,892 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - iNetXperts, Corp. - USD ($) $ in Millions | May 03, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Consideration transferred | $ 10.8 | |
Contingent consideration earnout payment | $ 14 | |
Gain on contingent consideration | $ 5 | |
Acquisition related costs | $ 0.6 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,766 | $ 18,646 |
Less: accumulated depreciation | (7,472) | (7,053) |
Property and equipment, net | 13,294 | 11,593 |
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 | 8,039 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,131 | 4,011 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,712 | 1,712 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,018 | 2,018 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18 | $ 18 |
SOFTWARE DEVELOPMENT (Details)
SOFTWARE DEVELOPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Research and Development [Abstract] | ||
Software development costs | $ 921 | $ 0 |
Less: accumulated amortization | (38) | 0 |
Software development costs, net | $ 883 | $ 0 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries and benefits | $ 4,052 | $ 6,946 |
Severance | 128 | 329 |
Commissions | 1,153 | 1,037 |
Self-insurance reserves | 1,214 | 1,382 |
Other | 595 | 529 |
Operating lease liabilities, current portion | 1,572 | 1,544 |
Other accrued liabilities | $ 8,714 | $ 11,767 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income | $ 4,090 | $ 3,444 |
Less: Net income attributable to participating securities | (134) | (130) |
Net income attributable to common stockholders | $ 3,956 | $ 3,314 |
Weighted average shares outstanding used in basic per common share computations (in shares) | 13,904 | 13,656 |
Add: Dilutive potential common shares (in shares) | 0 | 0 |
Weighted average shares outstanding used in diluted per common share computations (in shares) | 13,904 | 13,656 |
Basic EPS (in dollars per share) | $ 0.28 | $ 0.24 |
Diluted EPS (in dollars per share) | $ 0.28 | $ 0.24 |
NET INCOME PER SHARE Narrative
NET INCOME PER SHARE Narrative (Details) | 3 Months Ended |
Mar. 31, 2020shares | |
Earnings Per Share [Abstract] | |
Aggregate target (in shares) | 252,852 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate percentage | 23.00% | 23.00% |
STOCK-BASED COMPENSATION - Tota
STOCK-BASED COMPENSATION - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $ 2,358 | $ 2,436 |
Less: income tax effect | (519) | (536) |
Net stock-based compensation expense | 1,839 | 1,900 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 13,600 | |
Period for recognition for which unrecognized compensation costs are expected to be recognized | 2 years | |
Costs of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $ 528 | 531 |
Operating expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $ 1,830 | $ 1,905 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shares | ||
Nonvested stock outstanding at beginning of period, shares | 525,859 | 475,132 |
Granted, shares | 136,771 | 133,936 |
Performance share awards settled through issuance of restricted stock, shares | 19,678 | 138,566 |
Vested, shares | (202,468) | (143,945) |
Nonvested stock outstanding at end of period, shares | 479,840 | 603,689 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested stock outstanding at beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 30.51 | $ 32 |
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 26.16 | 30.89 |
Settled, Weighted-Average Grant-Date Fair Value (in dollars per share) | 30.15 | 29.80 |
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 30.20 | 33.81 |
Nonvested stock outstanding at end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 29.39 | $ 30.82 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Performance Share Awards (Details) - Performance Shares - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Shares | ||
Nonvested stock outstanding at beginning of period, shares | 200,709 | 184,776 |
Granted, shares | 107,298 | 0 |
Adjusted for actual performance, net of forfeitures, shares | (35,477) | (46,176) |
Performance share awards settled through issuance of restricted stock, shares | (19,678) | (138,566) |
Nonvested stock outstanding at end of period, shares | 252,852 | 92,386 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested stock outstanding at beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 30.75 | $ 30.15 |
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 26.96 | 0 |
Forfeited or unearned, Weighted-Average Grant-Date Fair Value (in dollars per share) | 30.15 | 29.80 |
Settled, Weighted-Average Grant-Date Fair Value (in dollars per share) | 30.15 | 29.80 |
Nonvested stock outstanding at end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 29.27 | $ 30.50 |
FINANCING RECEIVABLES - Short t
FINANCING RECEIVABLES - Short term Payment Plans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Short-term payment plans, net | $ 12,175 | $ 12,032 |
Short-Term Payment Plans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Short-term payment plans, gross | 2,356 | 2,361 |
Less: allowance for losses | (165) | (165) |
Short-term payment plans, net | $ 2,191 | $ 2,196 |
FINANCING RECEIVABLES - Additio
FINANCING RECEIVABLES - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Financial receivable lease term | 2 years |
Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Financial receivable lease term | 7 years |
Fixed Periodic Payment Plans | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Current financing receivable terms | 3 months |
Fixed Periodic Payment Plans | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Current financing receivable terms | 12 months |
FINANCING RECEIVABLES - Compone
FINANCING RECEIVABLES - Components of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Less: allowance for expected credit losses | $ (3,305) | $ (2,971) | $ (2,567) |
Total financing receivables | 29,969 | 30,299 | |
Long-Term Financing Arrangement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Long-term financing arrangements, gross | 34,328 | 34,483 | |
Less: allowance for expected credit losses | (3,140) | (2,806) | |
Less: unearned income | (3,410) | (3,574) | |
Total financing receivables | $ 27,778 | $ 28,103 |
FINANCING RECEIVABLES - Future
FINANCING RECEIVABLES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Less: allowance for expected credit losses | $ (3,305) | $ (2,971) | $ (2,567) |
Total financing receivables | 29,969 | 30,299 | |
Long-Term Financing Arrangement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
2020 | 9,427 | ||
2021 | 10,806 | ||
2022 | 6,896 | ||
2023 | 4,038 | ||
2024 | 2,403 | ||
Thereafter | 758 | ||
Total minimum payments to be received | 34,328 | ||
Less: allowance for expected credit losses | (3,140) | (2,806) | |
Less: unearned income | (3,410) | (3,574) | |
Total financing receivables | $ 27,778 | $ 28,103 |
FINANCING RECEIVABLES - Allowan
FINANCING RECEIVABLES - Allowance for Financing Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Allowance for Credit Losses on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | $ 2,971 | $ 2,567 |
Provision | 334 | 970 |
Charge-offs | 0 | (566) |
Recoveries | 0 | $ 0 |
Balance at End of Period | $ 3,305 |
FINANCING RECEIVABLES - Analysi
FINANCING RECEIVABLES - Analysis of Age of Financing Receivables Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 2,010 | $ 1,837 |
1 to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,401 | 1,480 |
91 to 180 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 352 | 150 |
181 + Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 257 | $ 207 |
FINANCING RECEIVABLES - Summary
FINANCING RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 2,010 | $ 1,837 | |
Total uninvoiced client financing receivables of clients with no related trade accounts receivable | 8,865 | 8,786 | |
Total financing receivables with contractual maturities of one year or less | 2,356 | 2,361 | |
Less: allowance for expected credit losses | (3,305) | (2,971) | $ (2,567) |
Total financing receivables | 29,969 | 30,299 | |
Trade Accounts Receivable | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 22,053 | 22,123 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 1 to 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,401 | 1,480 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 1 to 90 Days Past Due | Trade Accounts Receivable | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 15,705 | 18,015 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 352 | 150 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due | Trade Accounts Receivable | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,893 | 2,136 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 257 | 207 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due | Trade Accounts Receivable | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 3,455 | $ 1,972 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Definited-lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount as of beginning period | $ 125,190 | $ 117,300 | |
Intangible assets acquired | 7,890 | ||
Accumulated amortization | $ (2,866) | (42,080) | |
Net intangible assets | $ 80,244 | 83,110 | |
Weighted average remaining years of useful life | 9 years | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount as of beginning period | 84,370 | 82,300 | |
Intangible assets acquired | 2,070 | ||
Accumulated amortization | $ (1,800) | (26,456) | |
Net intangible assets | $ 56,114 | 57,914 | |
Weighted average remaining years of useful life | 9 years | ||
Trademark | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount as of beginning period | 11,120 | 10,900 | |
Intangible assets acquired | 220 | ||
Accumulated amortization | $ (212) | (3,449) | |
Net intangible assets | $ 7,459 | 7,671 | |
Weighted average remaining years of useful life | 12 years | ||
Developed Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount as of beginning period | 29,700 | $ 24,100 | |
Intangible assets acquired | 5,600 | ||
Accumulated amortization | $ (854) | (12,175) | |
Net intangible assets | $ 16,671 | $ 17,525 | |
Weighted average remaining years of useful life | 5 years |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Remaining Amortization of Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 8,555 | |
2021 | 11,003 | |
2022 | 10,904 | |
2023 | 10,904 | |
2024 | 9,681 | |
Thereafter | 29,197 | |
Net intangible assets | $ 80,244 | $ 83,110 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 150,216 |
Goodwill, ending balance | 150,216 |
Operating Segments | Acute Care EHR | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 97,095 |
Goodwill, ending balance | 97,095 |
Operating Segments | Post-acute Care EHR | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 29,570 |
Goodwill, ending balance | 29,570 |
Operating Segments | TruBridge | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 23,551 |
Goodwill, ending balance | $ 23,551 |
LONG-TERM DEBT - Schedule of lo
LONG-TERM DEBT - Schedule of long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt obligations | $ 102,630 | $ 108,823 |
Less: unamortized debt issuance costs | (875) | (960) |
Debt obligation, net | 101,755 | 107,863 |
Less: current portion | (8,430) | (8,430) |
Long-term debt | 93,325 | 99,433 |
Line of credit | Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt obligations | 86,630 | 88,823 |
Line of credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt obligations | $ 16,000 | $ 20,000 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 21 Months Ended | 24 Months Ended | |||||
Jan. 31, 2016USD ($) | Mar. 31, 2020 | Sep. 30, 2019USD ($) | Dec. 31, 2017 | Sep. 30, 2022USD ($) | Dec. 31, 2017 | Sep. 30, 2019USD ($) | Sep. 30, 2021USD ($) | Feb. 08, 2018USD ($) | Oct. 13, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Amount of credit facility | $ 167,000,000 | $ 162,000,000 | ||||||||
Prepayment on Amended Term Loan | $ 7,000,000 | |||||||||
Line of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, incremental facility capacity | 50,000,000 | |||||||||
Fixed charge coverage ratio, minimum | 1.25 | |||||||||
Consolidated leverage ratio, maximum | 3.50 | |||||||||
Prepayment amount from excess cash flow, year two and thereafter, percentage | 50.00% | |||||||||
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 | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.00% | |||||||||
Line of credit | Revolving credit facility | Federal funds rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 50.00% | |||||||||
Line of credit | Term loan facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of credit facility | $ 125,000,000 | $ 117,000,000 | ||||||||
Periodic payment, principal | $ 1,500,000 | |||||||||
Minimum | Line of credit | Revolving credit facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.00% | |||||||||
Minimum | Line of credit | Revolving credit facility | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.00% | |||||||||
Maximum | Line of credit | Revolving credit facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 3.50% | |||||||||
Maximum | Line of credit | Revolving credit facility | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.50% | |||||||||
Scenario, Forecast | Line of credit | Term loan facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Periodic payment, principal | $ 2,900,000 | $ 2,200,000 |
LONG-TERM DEBT - Annual Future
LONG-TERM DEBT - Annual Future Maturities (Details) - Line of credit $ in Thousands | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 6,581 |
2021 | 9,506 |
2022 | 86,543 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Long-term Debt, Total | $ 102,630 |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Rent expense | $ 0.4 | $ 0.6 |
Operating lease, payments | $ 0.4 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 12 months |
OPERATING LEASES - Supplemental
OPERATING LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 7,522 | $ 7,800 |
Operating lease liabilities, current portion | 1,572 | 1,544 |
Operating lease liabilities, net of current portion | 5,950 | $ 6,256 |
Total operating lease liabilities | $ 7,522 | |
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 | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 1,177 |
2021 | 1,518 |
2022 | 1,436 |
2023 | 1,363 |
2024 | 980 |
Thereafter | 2,383 |
Total lease payments | 8,857 |
Less imputed interest | (1,335) |
Total | $ 7,522 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 3 | |
Total sales revenues | $ 69,757 | $ 69,141 |
Costs to obtain and fulfill contracts capitalized | 33,644 | 32,026 |
Total gross profit | 36,113 | 37,115 |
Corporate operating expenses | (29,981) | (31,067) |
Other income | 362 | 248 |
Interest expense | (1,179) | (1,804) |
Income before taxes | 5,315 | 4,492 |
Operating Segments | Acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 36,515 | 37,448 |
Costs to obtain and fulfill contracts capitalized | 17,259 | 17,066 |
Total gross profit | 19,256 | 20,382 |
Operating Segments | Post-acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 4,671 | 5,799 |
Costs to obtain and fulfill contracts capitalized | 1,328 | 1,271 |
Total gross profit | 3,343 | 4,528 |
Operating Segments | TruBridge | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 28,571 | 25,894 |
Costs to obtain and fulfill contracts capitalized | 15,057 | 13,689 |
Total gross profit | 13,514 | 12,205 |
Corporate operating expenses | ||
Segment Reporting Information [Line Items] | ||
Corporate operating expenses | (29,981) | (31,067) |
Recurring revenue | Operating Segments | Acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 26,438 | 27,389 |
Recurring revenue | Operating Segments | Post-acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 4,134 | 4,478 |
Non-recurring revenue | Operating Segments | Acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 10,077 | 10,059 |
Non-recurring revenue | Operating Segments | Post-acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | $ 537 | $ 1,321 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | May 05, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Subsequent Event [Line Items] | |||
Dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared per common share (in dollars per share) | $ 0.10 |