Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 09, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 54 St. Emanuel Street | |
Entity Address, City or Town | Mobile | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 36602 | |
City Area Code | 251 | |
Local Phone Number | 639-8100 | |
Title of 12(b) Security | Common Stock, par value $.001 per share | |
Trading Symbol | CPSI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,763,784 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001169445 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 15,981 | $ 11,431 |
Accounts receivable (net of allowance for expected credit losses of $2,699 and $1,826, respectively) | 41,483 | 34,431 |
Financing receivables, current portion, net (net of allowance for expected credit losses of $287 and $325, respectively) | 5,740 | 6,488 |
Inventories | 567 | 855 |
Prepaid income taxes | 4,115 | 4,599 |
Prepaid expenses and other | 12,911 | 11,194 |
Total current assets | 80,797 | 68,998 |
Property and equipment, net | 11,467 | 11,590 |
Software development costs, net | 15,409 | 11,644 |
Operating lease assets | 8,079 | 7,097 |
Financing receivables, net of current portion (net of allowance for expected credit losses of $592 and $397, respectively) | 6,012 | 7,231 |
Other assets, net of current portion | 4,952 | 3,874 |
Intangible assets, net | 115,731 | 95,203 |
Goodwill | 197,883 | 177,713 |
Total assets | 440,330 | 383,350 |
Current liabilities: | ||
Accounts payable | 7,240 | 8,079 |
Current portion of long-term debt | 4,863 | 4,394 |
Deferred revenue | 14,131 | 11,529 |
Accrued vacation | 5,478 | 5,262 |
Other accrued liabilities | 15,023 | 17,163 |
Total current liabilities | 46,735 | 46,427 |
Long-term debt, net of current portion | 136,633 | 94,966 |
Operating lease liabilities, net of current portion | 6,018 | 5,505 |
Deferred tax liabilities | 20,192 | 13,880 |
Total liabilities | 209,578 | 160,778 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 30,000 shares authorized; 14,906 and 14,734 shares issued and outstanding, respectively | 15 | 15 |
Additional paid-in capital | 188,796 | 187,079 |
Retained earnings | 46,167 | 38,054 |
Treasury stock, 140 shares and 89 shares, respectively | (4,226) | (2,576) |
Total stockholders’ equity | 230,752 | 222,572 |
Total liabilities and stockholders’ equity | $ 440,330 | $ 383,350 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 2,699 | $ 1,826 |
Financing receivable, allowance for credit loss, current | 287 | 325 |
Financing receivable, allowance for credit loss, noncurrent | $ 592 | $ 397 |
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) | 14,906,000 | 14,734,000 |
Common stock, shares outstanding (in shares) | 14,906,000 | 14,734,000 |
Treasury stock, shares (in shares) | 140,000 | 89,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Sales revenues: | ||
Total sales revenues | $ 77,871 | $ 68,005 |
Costs of sales: | ||
Total costs of sales | 38,056 | 33,155 |
Gross profit | 39,815 | 34,850 |
Operating expenses: | ||
Product development | 7,101 | 8,429 |
Sales and marketing | 7,042 | 5,301 |
General and administrative | 13,014 | 13,149 |
Amortization of acquisition-related intangibles | 3,672 | 3,057 |
Total operating expenses | 30,829 | 29,936 |
Operating income | 8,986 | 4,914 |
Other income (expense): | ||
Other income | 157 | 814 |
Gain on contingent consideration | 1,250 | 0 |
Interest expense | (917) | (627) |
Total other income | 490 | 187 |
Income before taxes | 9,476 | 5,101 |
Provision for income taxes | 1,363 | 957 |
Net income | $ 8,113 | $ 4,144 |
Net income per common share-basic (in dollars per share) | $ 0.55 | $ 0.29 |
Net income per common share-diluted (in dollars per share) | $ 0.55 | $ 0.28 |
Weighted average shares outstanding used in per common share computations: | ||
Basic (in shares) | 14,381 | 14,159 |
Diluted (in shares) | 14,381 | 14,221 |
Dividends declared per common share (in dollars per share) | $ 0 | $ 0 |
TruBridge | ||
Sales revenues: | ||
Total sales revenues | $ 43,108 | $ 31,639 |
Costs of sales: | ||
Total costs of sales | 21,373 | 15,779 |
System sales and support | ||
Sales revenues: | ||
Total sales revenues | 34,763 | 36,366 |
Costs of sales: | ||
Total costs of sales | $ 16,683 | $ 17,376 |
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 | Treasury Stock |
Beginning Balance (in shares) at Dec. 31, 2020 | 14,511 | ||||
Beginning Balance at Dec. 31, 2020 | $ 200,000 | $ 15 | $ 181,622 | $ 19,624 | $ (1,261) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,144 | 4,144 | |||
Issuance of restricted stock (in shares) | 210 | ||||
Issuance of restricted stock | 0 | ||||
Forfeiture of common stock (in shares) | (6) | ||||
Stock-based compensation | 1,034 | 1,034 | |||
Treasury stock acquired | (1,063) | (1,063) | |||
Ending Balance (in shares) at Mar. 31, 2021 | 14,715 | ||||
Ending Balance at Mar. 31, 2021 | 204,115 | $ 15 | 182,656 | 23,768 | (2,324) |
Beginning Balance (in shares) at Dec. 31, 2021 | 14,734 | ||||
Beginning Balance at Dec. 31, 2021 | 222,572 | $ 15 | 187,079 | 38,054 | (2,576) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,113 | 8,113 | |||
Issuance of restricted stock (in shares) | 172 | ||||
Issuance of restricted stock | 0 | ||||
Stock-based compensation | 1,717 | 1,717 | |||
Treasury stock acquired | (1,650) | (1,650) | |||
Ending Balance (in shares) at Mar. 31, 2022 | 14,906 | ||||
Ending Balance at Mar. 31, 2022 | $ 230,752 | $ 15 | $ 188,796 | $ 46,167 | $ (4,226) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities: | ||
Net income | $ 8,113 | $ 4,144 |
Adjustments to net income: | ||
Provision for credit losses | 734 | 938 |
Deferred taxes | 692 | 1,058 |
Stock-based compensation | 1,717 | 1,034 |
Depreciation | 578 | 553 |
Amortization of acquisition-related intangibles | 3,672 | 3,057 |
Amortization of software development costs | 526 | 73 |
Amortization of deferred finance costs | 73 | 73 |
Gain on contingent consideration | (1,250) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,020) | (2,183) |
Financing receivables | 1,810 | 1,994 |
Inventories | 288 | (258) |
Prepaid expenses and other | (2,316) | 321 |
Accounts payable | (1,140) | (974) |
Deferred revenue | 2,602 | 703 |
Other liabilities | (2,951) | 3,576 |
Prepaid income taxes | 689 | (399) |
Net cash provided by operating activities | 11,817 | 13,710 |
Investing Activities: | ||
Purchase of business, net of cash acquired | (43,362) | 0 |
Investment in software development | (4,291) | (872) |
Purchase of property and equipment | (27) | (493) |
Net cash used in investing activities | (47,680) | (1,365) |
Financing Activities: | ||
Payments of long-term debt principal | (937) | (937) |
Proceeds from revolving line of credit | 48,000 | 0 |
Payments of revolving line of credit | (5,000) | (5,000) |
Treasury stock purchases | (1,650) | (1,063) |
Net cash provided by (used in) financing activities | 40,413 | (7,000) |
Increase in cash and cash equivalents | 4,550 | 5,345 |
Cash and cash equivalents at beginning of period | 11,431 | 12,671 |
Cash and cash equivalents at end of period | 15,981 | 18,016 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 843 | 554 |
Cash paid for income taxes, net of refund | $ 48 | $ 298 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 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, 2021 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. During the second quarter of 2021, we elected to change our method of estimating the labor costs incurred in developing software assets requiring capitalization under Accounting Standards Codification ("ASC") 350-40, Internal Use Software. Prior to this change, we estimated the associated labor costs using an estimated time-equivalent for workload metrics commonly utilized within agile software development environments. With this change, we now estimate these labor costs using the distribution of these agile workload metrics between capitalizable and non-capitalizable units of work. We believe this change is preferable as the new methodology better estimates capitalizable labor costs and is consistent with industry best practices. We have determined that this change is a change in accounting estimate effected by a change in accounting principle and, as such, has been accounted for on a prospective basis. See Note 6, “Software Development,” for further information. Principles of Consolidation The condensed consolidated financial statements of CPSI include the accounts of TruBridge, LLC ("TruBridge"), Evident, LLC ("Evident"), Healthland Holding Inc. ("HHI"), iNetXperts, Corp. d/b/a Get Real Health ("Get Real Health"), TruCode LLC ("TruCode"), and Healthcare Resource Group, Inc. ("HRG"), 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, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Standards Adopted in 2022 There were no new accounting standards required to be adopted in 2022 that would 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, 2022 | |
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 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. 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 stand-alone selling price ("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. 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 community hospitals and post-acute care providers. 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 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. 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, 2022 and 2021, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Beginning balance $ 11,529 $ 8,130 Deferred revenue recorded 9,263 5,847 Less deferred revenue recognized as revenue (6,661) (5,144) Ending balance $ 14,131 $ 8,833 The deferred revenue recorded during the three months ended March 31, 2022 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, 2022 and 2021 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" in the accompanying condensed consolidated statements of income. 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, 2022 and 2021, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Beginning balance $ 7,312 $ 5,992 Costs to obtain and fulfill contracts capitalized 3,047 1,836 Less costs to obtain and fulfill contracts recognized as expense (1,799) (1,475) Ending balance $ 8,560 $ 6,353 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, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Acquisition of Healthcare Resource Group On March 1, 2022, we acquired all of the assets and liabilities of Healthcare Resource Group, Inc., a Washington corporation ("HRG"), pursuant to a Stock Purchase Agreement dated March 1, 2022. Based in Spokane, Washington, HRG is a leading provider of customized revenue cycle management ("RCM") solutions and consulting services that enable hospitals and clinics to improve efficiency, profitability, and patient satisfaction. Consideration for the acquisition included cash (net of cash of the acquired entity) of $43.4 million (inclusive of seller's transaction expenses). During 2022, we have incurred approximately $0.5 million of pre-tax acquisition costs in connection with the acquisition of HRG. Acquisition costs are included in general and administrative expenses in our consolidated statements of income. Our acquisition of HRG will be treated as a purchase in accordance with ASC 805, Business Combinations , which requires allocation of the purchase price to the estimated fair values of assets and liabilities acquired in the transaction. Our allocation of the purchase price is based on management's judgment after evaluating several factors, including a preliminary valuation assessment. The allocation is preliminary and subject to changes, which could be significant, as additional information becomes available and appraisals of intangible assets and deferred tax positions are finalized. The preliminary allocation of the purchase price paid for HRG as of March 31, 2022 was as follows: (In thousands) Purchase Price Allocation Acquired cash 3,989 Accounts receivable 5,609 Prepaid expenses 406 Property and equipment 428 Other assets 73 Intangible assets 24,200 Operating lease assets 1,315 Goodwill 20,380 Accounts payable and accrued liabilities (2,543) Deferred taxes, net (5,193) Operating lease liability (1,315) Net assets acquired $ 47,349 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. Our condensed consolidated statement of operations for the three months ended March 31, 2022 includes revenues of approximately $3.8 million and pre-tax net income of approximately $0.5 million attributed to the acquired business since the March 1, 2022 acquisition date. The following unaudited pro forma revenue, net income and earnings per share amounts for the three months ended March 31, 2022 give effect to the HRG acquisition as if it had been completed on January 1, 2021. The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the periods presented had the HRG acquisition been completed during the periods presented. In addition, the unaudited pro forma financial information does not purport to project future operating results. The pro forma information does not fully reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the HRG acquisition. Three Months Ended (In thousands, except per share data) 2022 2021 Pro forma revenues $ 84,211 $ 75,688 Pro forma net income $ 6,822 $ 2,317 Pro forma diluted earnings per share $ 0.46 $ 0.15 Pro forma net income was calculated by adjusting the results for the applicable period to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2021 and other miscellaneous, immaterial adjustments. Acquisition of TruCode On May 12, 2021, we acquired all of the assets and liabilities of TruCode LLC, a Virginia limited liability company (“TruCode”), pursuant to a Stock Purchase Agreement dated May 12, 2021. Based in Alpharetta, Georgia, TruCode provides configurable, knowledge-based software that gives coders, clinical documentation improvement specialists and auditors the flexibility to code according to their knowledge, preferences and experience. The cloud-based medical coding solution has been bundled with the TruBridge solutions and services to enhance revenue cycle performance for healthcare organizations of all sizes. Consideration for the acquisition included cash (net of cash of the acquired entity) of $59.9 million (inclusive of sellers' transaction expenses), plus a contingent earnout payment of up to $15.0 million tied to TruCode's earnings before interest, tax, depreciation, and amortization ("EBITDA") (subject to certain pro-forma adjustments) for the twelve-month period concluding on the anniversary date of the acquisition (the "earnout period"). As of March 31, 2022, $1.25 million of the original $2.5 million contingent consideration estimated in determining the purchase price was reversed as our estimates of TruCode's earnings over the remaining earnout period have declined since the date of acquisition. During 2021, we incurred approximately $0.9 million of pre-tax acquisition costs in connection with the acquisition of TruCode. Acquisition costs are included in general and administrative expenses in our consolidated statements of income. Our acquisition of TruCode 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 is based on management's judgment after evaluating several factors, including a valuation assessment. The allocation of the purchase price paid for TruCode was as follows: (In thousands) Purchase Price Allocation Acquired cash $ 4,249 Accounts receivable 924 Prepaid expenses 2 Intangible assets 37,300 Goodwill 27,287 Accounts payable and accrued liabilities (1,840) Contingent consideration (2,500) Deferred revenue (1,300) Net assets acquired $ 64,122 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. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Land $ 2,848 $ 2,848 Buildings and improvements 8,279 8,269 Computer equipment 8,229 7,868 Leasehold improvements 806 783 Office furniture and fixtures 743 682 Automobiles 18 18 Property and equipment, gross 20,923 20,468 Less: accumulated depreciation (9,456) (8,878) Property and equipment, net $ 11,467 $ 11,590 |
SOFTWARE DEVELOPMENT
SOFTWARE DEVELOPMENT | 3 Months Ended |
Mar. 31, 2022 | |
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 of the asset is deemed to be impaired, a write-down of the value of the asset may be recorded as a charge to earnings. Amortization begins when the related software features are placed in service. During the second quarter of 2021, our ongoing monitoring activities associated with the capitalization of software development costs and the related correlation between capitalization rates and operational metrics designed to reflect the distribution of work revealed that our then-current labor capitalization methodology did not fully reflect all of the critical activities necessary to develop software assets. Consequently, during the second quarter of 2021, we elected to change our method of estimating the labor costs incurred in developing software assets. Prior to this change, we estimated the associated labor costs using an estimated time-equivalent for workload metrics commonly utilized within agile software development environments. With this change, we now estimate these labor costs using the distribution of these agile workload metrics between capitalizable and non-capitalizable units of work. We believe this change is preferable as the new methodology better estimates capitalizable labor costs and is consistent with industry best practices. We have determined that this change in accounting for software development costs is a change in accounting estimate effected by a change in accounting principle and, as such, has been accounted for on a prospective basis. In connection with this change, we capitalized software development costs of $8.8 million during the year ended December 31, 2021. We estimate that the effect of this change was to increase capitalized amounts by approximately $4.6 million for the year ended December 31, 2021, with a corresponding decrease to product development costs. Software development costs, net was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Software development costs $ 16,984 $ 12,693 Less: accumulated amortization (1,575) (1,049) Software development costs, net $ 15,409 $ 11,644 |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES Other accrued liabilities was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Salaries and benefits $ 7,814 $ 8,482 Severance 199 236 Commissions 1,104 1,158 Self-insurance reserves 1,087 1,409 Contingent consideration 1,250 2,500 Operating lease liabilities, current portion 2,061 1,592 Other 1,508 1,786 Other accrued liabilities $ 15,023 $ 17,163 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
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 ASC 260, 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) 2022 2021 Net income $ 8,113 $ 4,144 Less: Net income attributable to participating securities (166) (103) Net income attributable to common stockholders $ 7,947 $ 4,041 Weighted average shares outstanding used in basic per common share computations 14,381 14,159 Add: Dilutive potential common shares — 62 Weighted average shares outstanding used in diluted per common share computations 14,381 14,221 Basic EPS $ 0.55 $ 0.29 Diluted EPS $ 0.55 $ 0.28 During 2020, 2021, and 2022, performance share awards were granted to certain executive officers and key employees of the Company that will result in the issuance of common stock if the predefined performance criteria are met. The awards provide for an aggregate target of 298,486 shares, of which none have been included in the calculation of diluted EPS for the three months ended March 31, 2022 because the related threshold award performance levels have not been achieved as of March 31, 2022. See Note 10 - Stock-Based Compensation and Equity for more information. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 decreased to an expense of 14.4% from an expense of 18.8% for the three months ended March 31, 2021. A non-taxable gain of $1.25 million resulting from a partial reversal of the TruCode earnout benefited our effective tax rate by 2.8% for the three months ended March 31, 2022, while the net effective tax rate impact of state income tax items decreased by 2.4% for the three months ended March 31, 2022, as the first quarter of 2021 was significantly impacted by changes in estimated state tax rates and amendments to previously-filed state returns. |
STOCK-BASED COMPENSATION AND EQ
STOCK-BASED COMPENSATION AND EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND EQUITY | STOCK-BASED COMPENSATION AND EQUITY Stock-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, 2022 and 2021, included in the condensed consolidated statements of income: Three Months Ended March 31, (In thousands) 2022 2021 Costs of sales $ 267 $ 213 Operating expenses 1,450 821 Pre-tax stock-based compensation expense 1,717 1,034 Less: income tax effect (378) (227) Net stock-based compensation expense $ 1,339 $ 807 The Company's stock-based compensation awards are in the form of restricted stock and performance share awards granted pursuant to the Company's Amended and Restated 2019 Incentive Plan (the "Plan"), as amended. As of March 31, 2022, th ere was $16.5 million of unrecognized compensation expense related to unvested and unearned stock-based compensation arrangements granted under the Plan, which is expected to be recognized over a weighted-average period of 2.4 years. Restricted Stock The Company grants restricted stock to executive officers, certain key employees and non-employee directors under the Plan 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 under the Plan during the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Shares Weighted-Average Shares Weighted-Average Unvested restricted stock outstanding at beginning of period 314,883 $ 29.79 412,967 $ 28.87 Granted 144,064 34.44 134,314 31.26 Vested (174,943) 29.75 (245,455) 29.16 Forfeited — — (6,329) 29.10 Unvested restricted stock outstanding at end of period 284,004 $ 32.17 295,497 $ 29.71 Performance Share Awards The Company grants performance share awards to executive officers and certain key employees under the Plan, with the number of shares of common stock earned and issuable under each award determined at the end of a 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. These 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 common stock corresponding to such level. 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 performance share awards, the Company will issue each award recipient the number of shares of common stock 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 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 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 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 related to 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 Plan during the three months ended March 31, 2022 and 2021 is as follows, based on the target award amounts set forth in the performance share award agreements: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Shares Weighted-Average Shares Weighted-Average Performance share awards outstanding at beginning of period 249,952 $ 29.59 252,852 $ 29.27 Granted 101,799 37.98 93,444 31.26 Forfeited or unearned (25,948) 31.75 (20,373) 29.92 Earned and issued (27,317) 31.75 (75,971) 30.50 Performance share awards outstanding at end of period 298,486 $ 32.06 249,952 $ 29.59 Stock Repurchases On September 4, 2020, our Board of Directors approved a stock repurchase program under which we may repurchase up to $30.0 million of our common stock through September 3, 2022. We repurchased no shares during the three months ended March 31, 2022 and 12,056 shares during the three months ended March 31, 2021. The approximate dollar value of shares that may yet be repurchased under the stock repurchase program was $28.1 million as of March 31, 2022. Any future stock repurchase transactions may be made through open market purchases, privately-negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Any repurchase activity will depend on many factors, such as the availability of shares of our common stock, general market conditions, the trading price of our common stock, alternative uses for capital, the Company’s financial performance, compliance with the terms of our Amended and Restated Credit Agreement and other factors. Concurrent with the authorization of this stock repurchase program, the Board of Directors opted to indefinitely suspend all quarterly dividends. In addition to shares repurchased under the approved stock repurchase program, we purchased 50,720 shares during the three months ended March 31, 2022 and 21,444 shares during the three months ended March 31, 2021 to fund required tax withholdings related to the vesting of restricted stock. Shares withheld to cover required tax withholdings related to the vesting of restricted stock do not reduce our total share repurchase authority. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Mar. 31, 2022 | |
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, December 31, 2021 Short-term payment plans, gross $ 74 $ 121 Less: allowance for losses (4) (6) Short-term payment plans, net $ 70 $ 115 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 decrease in long-term financing arrangement balances during the three months ended March 31, 2022 is primarily a result of the continued evolution of customer licensing preferences. Although the overwhelming majority of our historical EHR installations have been made under a perpetual license model, the dramatic shift in customer preferences to a SaaS license model began during 2019. with 49% of the year's new acute care EHR installations being performed in a SaaS model, compared to only 12% in 2018. The shift in customer preference toward a SaaS model has since continued, with SaaS installations representing approximately 68% of new acute care EHR installations in 2020 and 63% in 2021. Due to the nature of the revenue recognition requirements for SaaS arrangements coupled with recurring monthly payments, these arrangements do not give rise to long-term financing arrangements. The components of these receivables were as follows at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Long-term financing arrangements, gross $ 13,704 $ 15,659 Less: allowance for expected credit losses (875) (716) Less: unearned income (1,147) (1,339) Long-term financing arrangements, net $ 11,682 $ 13,604 Future minimum payments to be received subsequent to March 31, 2022 are as follows: (In thousands) Years Ending December 31, 2022 $ 4,837 2023 4,658 2024 2,729 2025 1,309 2026 153 Thereafter 18 Total minimum payments to be received 13,704 Less: allowance for expected credit losses (875) Less: unearned income (1,147) Receivables, net $ 11,682 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, 2022 and year ended December 31, 2021: (In thousands) Balance at Beginning of Period Provision Charge-offs Recoveries Balance at End of Period March 31, 2022 $ 722 $ 157 $ — $ — $ 879 December 31, 2021 $ 1,489 $ 481 $ (1,248) $ — $ 722 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, 2022 and December 31, 2021: (In thousands) 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due March 31, 2022 $ 771 $ 382 $ 123 $ 1,276 December 31, 2021 $ 713 $ 78 $ 73 $ 864 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, December 31, 2021 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 $ 6,555 $ 9,100 Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due 556 329 Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due 342 386 Total uninvoiced client financing receivables balances of clients with a trade accounts receivable $ 7,453 $ 9,815 Total uninvoiced client financing receivables of clients with no related trade accounts receivable 5,104 4,505 Total financing receivables with contractual maturities of one year or less 74 121 Less: allowance for expected credit losses (879) (722) Total financing receivables $ 11,752 $ 13,719 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Our purchased definite-lived intangible assets as of March 31, 2022 and December 31, 2021 are summarized as follows: March 31, 2022 (In thousands) Customer Relationships Trademark Developed Technology Non-Compete Agreements Total Gross carrying amount, beginning of period $ 112,570 $ 12,320 $ 37,600 $ — $ 162,490 Intangible assets acquired 19,600 — 3,200 1,400 24,200 Accumulated amortization (43,943) (5,402) (21,614) — (70,959) Net intangible assets as of March 31, 2022 $ 88,227 $ 6,918 $ 19,186 $ 1,400 $ 115,731 Weighted average remaining years of useful life 9 13 9 5 10 December 31, 2021 (In thousands) Customer Relationships Trademark Developed Technology Non-Compete Agreements Total Gross carrying amount, beginning of period $ 84,370 $ 11,120 $ 29,700 $ — $ 125,190 Intangible assets acquired 28,200 1,200 7,900 — 37,300 Accumulated amortization (41,738) (5,177) (20,372) — (67,287) Net intangible assets as of December 31, 2021 $ 70,832 $ 7,143 $ 17,228 $ — $ 95,203 The following table represents the remaining amortization of definite-lived intangible assets as of March 31, 2022: (In thousands) For the year ended December 31, 2022 $ 13,216 2023 15,440 2024 13,906 2025 13,590 2026 12,968 Thereafter 46,611 Total $ 115,731 The following table sets forth the change in the carrying amount of goodwill by segment for the three months ended March 31, 2022: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2021 $ 97,095 $ 29,570 $ 51,048 $ 177,713 Goodwill acquired — — 20,170 20,170 Balance as of March 31, 2022 $ 97,095 $ 29,570 $ 71,218 $ 197,883 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Term loan facility $ 68,438 $ 69,375 Revolving credit facility 74,000 31,000 Debt obligations 142,438 100,375 Less: unamortized debt issuance costs (942) (1,015) Debt obligation, net 141,496 99,360 Less: current portion (4,863) (4,394) Long-term debt $ 136,633 $ 94,966 As of March 31, 2022, 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 June 16, 2020, we entered into an Amended and Restated Credit Agreement that increased the aggregate principal amount of our credit facilities to $185 million, which includes a $75 million term loan facility and a $110 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, subject to a floor of 0.50%, (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, subject to the aforementioned floor, 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 1.8% to 3.0%. The applicable margin range for base rate loans ranges from 0.8% to 2.0%, in each case based on the Company's consolidated net leverage ratio. Principal payments with respect to the term loan facility are due on the last day of each fiscal quarter beginning September 30, 2020, with quarterly principal payments of approximately $0.9 million through June 30, 2022, approximately $1.4 million through June 30, 2024 and approximately $1.9 million through March 31, 2025, with maturity on June 16, 2025 or such earlier date as the obligations under the Amended and Restated Credit Agreement become due and payable pursuant to the terms of such 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, 2022: (In thousands) 2022 $ 3,750 2023 5,625 2024 6,563 2025 126,500 2026 — Thereafter — $ 142,438 Our credit facilities are secured pursuant to an Amended and Restated Pledge and Security Agreement, dated June 16, 2020, 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 Amended and Restated Credit Agreement are also guaranteed by the Subsidiary Guarantors. The Amended and Restated Credit Agreement provides incremental facility capacity of $50 million, subject to certain conditions. The Amended and Restated 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 net 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 Amended and Restated 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 Amended and Restated Credit Agreement, the Company is required to comply with a maximum consolidated net leverage ratio of 3.50:1.00. The Amended and Restated 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 such agreement as of March 31, 2022. The Amended and Restated Credit Agreement requires the Company to mandatorily prepay the credit facilities with 50% of excess cash flow (minus certain specified other payments). This mandatory prepayment requirement is applicable only if the Company's consolidated net leverage ratio exceeds 2.50:1.00. The Company is permitted to voluntarily prepay the credit facilities at any time without penalty, subject to customary “breakage” costs with respect to prepayments of LIBOR rate loans made on a day other than the last day of any applicable interest period. An excess cash flow prepayment related to excess cash flow generated during 2021 was not required during the first quarter of 2022. |
OPERATING LEASES
OPERATING LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASESThe Company leases office space in various locations in Alabama, Pennsylvania, Minnesota, Maryland, Mississippi, and Washington. These leases have terms expiring from 2022 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, Operating lease assets Operating lease assets $ 8,079 Operating lease liabilities Other accrued liabilities 2,061 Operating lease liabilities, net of current portion 6,018 Total operating lease liabilities $ 8,079 Weighted average remaining lease term in years 5 Weighted average discount rate 4.4% 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, 2022 are as follows: (In thousands) 2022 $ 1,558 2023 2,022 2024 1,913 2025 1,202 2026 1,225 Thereafter 1,115 Total lease payments 9,035 Less imputed interest (956) Total $ 8,079 Total lease expense for both the three months ended March 31, 2022 and 2021 was $0.4 million. 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, 2022 was $0.4 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 | |
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, 2022, we measured the fair value of contingent consideration that represents the potential earnout incentive for TruCode's former equity holders. We estimated the fair value of the contingent consideration based on the probability of TruCode meeting EBITDA targets (subject to certain pro-forma adjustments). We did not have any other instruments that required fair value measurement as of March 31, 2022. The following tables summarize the carrying amounts and fair value of the contingent consideration at March 31, 2022 and December 31, 2021, respectively: Fair Value at March 31, 2022 Using Carrying Amount at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) 3/31/2022 (Level 1) (Level 2) (Level 3) Description Contingent consideration $ 1,250 $ — $ — $ 1,250 Total $ 1,250 $ — $ — $ 1,250 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our chief operating decision makers ("CODM") utilize three operating segments, "TruBridge," "Acute Care EHR," and "Post-acute Care EHR" based on our three distinct business units with unique market dynamics and opportunities. These segments represent the components of the Company for which separate financial information is available that is utilized on a regular basis by the CODM in assessing segment performance and in allocating the Company's resources. Management evaluates the performance of the segments based on revenues and adjusted EBITDA. The Company previously evaluated the performance of the segments based on segment gross profit. Management believes adjusted EBITDA is a useful measure to assess the performance and liquidity of the Company as it provides meaningful operating results by excluding the effects of expenses that are not reflective of its operating business performance. 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. Adjusted EBITDA consists of GAAP net income as reported and adjusts for (i) deferred revenue purchase accounting adjustments arising from purchase allocation adjustments related to business acquisitions; (ii) depreciation expense; (iii) amortization of software development costs; (iv) amortization of acquisition-related intangible assets; (v) stock-based compensation; (vi) severance and other non-recurring charges; (vii) interest expense and other, net; (viii) gain on contingent consideration; and (ix) the provision for income taxes. There are no intersegment revenues to be eliminated in computing segment revenue. The CODM do not evaluate operating segments nor make decisions regarding operating segments based on assets. Consequently, we do not disclose total assets by reportable segment. The following table presents a summary of the revenues and adjusted EBITDA of our three operating segments for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (In thousands) 2022 2021 Revenues by segment: TruBridge $ 43,108 $ 31,639 Acute Care EHR Recurring revenue 27,364 27,210 Non-recurring revenue 3,028 4,680 Total Acute Care EHR revenue 30,392 31,890 Post-acute Care EHR Recurring revenue 3,895 4,222 Non-recurring revenue 476 254 Total Post-acute Care EHR revenue 4,371 4,476 Total revenues $ 77,871 $ 68,005 Adjusted EBITDA by segment: TruBridge 10,789 6,520 Acute Care EHR 5,032 4,684 Post-acute Care EHR 332 620 Total adjusted EBITDA $ 16,153 $ 11,824 The following table reconciles net income from continuing operations to adjusted EBITDA: Three Months Ended March 31, (In thousands) 2022 2021 Net income, as reported $ 8,113 $ 4,144 Deferred revenue and other acquisition-related adjustments 79 — Depreciation expense 578 553 Amortization of software development costs 526 73 Amortization of acquisition-related intangibles 3,672 3,057 Stock-based compensation 1,717 1,034 Severance and other non-recurring charges 594 2,193 Interest expense and other, net 761 (187) Gain on contingent consideration (1,250) — Provision for income taxes 1,363 957 Total adjusted EBITDA $ 16,153 $ 11,824 Certain of the items excluded or adjusted to arrive at adjusted EBITDA are described below: • Deferred revenue purchase accounting adjustments - Deferred revenue purchase accounting adjustments includes acquisition-related deferred revenue adjustments, which reflect the fair value adjustments to deferred revenues acquired in business acquisitions. The fair value of deferred revenue represents an amount equivalent to the estimated cost plus an appropriate profit margin, to perform services related to the acquiree's software and product support, which assumes a legal obligation to do so, based on the deferred revenue balance as of the acquisition date. We add back deferred revenue and other adjustments for adjusted EBITDA because we believe the inclusion of this amount directly correlates to the underlying performance of our operations. • Amortization of acquisition-related intangible assets - Acquisition related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. We exclude acquisition-related amortization expense from adjusted EBITDA because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. • Stock-based compensation - Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. We exclude stock-based compensation expense from adjusted EBITDA because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. • Severance and other non-recurring charges - Non-recurring charges relate to certain severance and other charges incurred in connection with activities that are considered one-time. We exclude non-recurring expenses (primarily related to costs associated with our recent business transformation initiative and one-time lease termination costs) and transaction-related costs from adjusted EBITDA because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On May 2, 2022, the Company entered into a First Amendment (the "First Amendment") to the Amended and Restated Credit Agreement, dated as of June 16, 2020, by and among the Company, certain subsidiaries of the Company, as guarantors (collectively, the "Subsidiary Guarantors"), Regions Bank, as administrative agent and collateral agent (the "Agent"), and various other lenders from time to time, which modified certain terms of the Company's existing credit agreement, including the following amendments: 1. The maximum borrowing capacity under the revolving credit facility increased from $110 million to $160 million. The outstanding principal balance of the term loan facility decreased from $75 million to $70 million, and the lenders provided an additional $1.6 million advance under the term loan. 2. The interest rate provisions reflect the transition from LIBOR to the Secured Overnight Financing Rate ("SOFR") as the new benchmark interest rate for each loan. 3. The collateral required to be delivered by the Company and its Subsidiary Guarantors no longer includes mortgages and related documents granting the lenders a security interest in the subject real property interest. 4. The term "Consolidated EBITDA" was changed to remove the required treatment of capitalized software development costs as expenses for purposes of compliance with the credit facility in order to align the term's definition with more conventional measures of EBITDA, including the Company's publicly-disclosed Adjusted EBITDA. Consequently, capitalized software development costs are now treated in a manner similar to capital expenditures for purposes of calculating the "Consolidated Fixed Charge Coverage Ratio." 5. The limitation on "Qualified Cash" to be held by the Company and Subsidiary Guarantors which may count toward reducing the "Consolidated Net Leverage Ratio" covenant was increased from $10 million to $20 million in the aggregate. 6. The "Consolidated Net Leverage Ratio" covenant was increased from 3.50:1.00 to 3.75:1.00 for each fiscal quarter ending June 30, 2022 through and including March 31, 2023. In connection with any acquisition by the Company exceeding $25 million, the Company may elect to increase the maximum permitted Consolidated Net Leverage Ratio for the fiscal quarter in which the acquisition occurs and each of the following three fiscal quarters by 0.50:1.00 above the otherwise permitted maximum. 7. The maturity date for both the revolving credit and term loan facilities changed from June 16, 2025, to May 2, 2027. 8. The maximum amount of all incremental facilities was increased from $50 million to $75 million, unless the pro forma "Consolidated Net Leverage Ratio" is less than 2.50:1.00, in which case there is no longer a limit on such incremental facilities. 9. The principal amortization payments of the term loan facility due between June 30, 2022 and March 31, 2027 decreased, such that all of these payments are now equal. 10. The requirement that the Company prepay principal with excess cash flow generated during the prior fiscal year was eliminated. The Company's obligations under the credit agreement continue to be secured pursuant to the Amended and Restated Pledge and Security Agreement, dated as of June 16, 2020, by and among the Parties identified as Obligors therein and Regions Bank, as collateral agent, on a first priority basis by a security interest in substantially all of the tangible and intangible personal assets (subject to certain exceptions) of the Company and the Subsidiary Guarantors, including certain registered intellectual property and the capital stock of certain of the Company's direct and indirect subsidiaries. The Company's obligations under the credit agreement also continue to be guaranteed by the Subsidiary Guarantors. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 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, 2021 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Internal Use Software | During the second quarter of 2021, we elected to change our method of estimating the labor costs incurred in developing software assets requiring capitalization under Accounting Standards Codification ("ASC") 350-40, Internal Use Software. Prior to this change, we estimated the associated labor costs using an estimated time-equivalent for workload metrics commonly utilized within agile software development environments. With this change, we now estimate these labor costs using the distribution of these agile workload metrics between capitalizable and non-capitalizable units of work. We believe this change is preferable as the new methodology better estimates capitalizable labor costs and is consistent with industry best practices. We have determined that this change is a change in accounting estimate effected by a change in accounting principle and, as such, has been accounted for on a prospective basis. See Note 6, “Software Development,” for further information. |
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"), iNetXperts, Corp. d/b/a Get Real Health ("Get Real Health"), TruCode LLC ("TruCode"), and Healthcare Resource Group, Inc. ("HRG"), 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 2022 There were no new accounting standards required to be adopted in 2022 that would 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 is recognized upon transfer of control of promised products or services to clients in an amount that reflects the consideration we expect to receive in exchange for those products and services. We enter into contracts that can include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. The Company employs the 5-step revenue recognition model under ASC 606, 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. 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 stand-alone selling price ("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. 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 community hospitals and post-acute care providers. 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 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. 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 deferred revenue recorded during the three months ended March 31, 2022 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, 2022 and 2021 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" in the accompanying condensed consolidated statements of income. |
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 ASC 260, 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 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, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following table details deferred revenue for the three months ended March 31, 2022 and 2021, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Beginning balance $ 11,529 $ 8,130 Deferred revenue recorded 9,263 5,847 Less deferred revenue recognized as revenue (6,661) (5,144) Ending balance $ 14,131 $ 8,833 |
Schedule of Capitalized Contract Cost | The following table details costs to obtain and fulfill contracts with customers for the three months ended March 31, 2022 and 2021, included in the condensed consolidated balance sheets: (In thousands) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Beginning balance $ 7,312 $ 5,992 Costs to obtain and fulfill contracts capitalized 3,047 1,836 Less costs to obtain and fulfill contracts recognized as expense (1,799) (1,475) Ending balance $ 8,560 $ 6,353 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price paid for HRG as of March 31, 2022 was as follows: (In thousands) Purchase Price Allocation Acquired cash 3,989 Accounts receivable 5,609 Prepaid expenses 406 Property and equipment 428 Other assets 73 Intangible assets 24,200 Operating lease assets 1,315 Goodwill 20,380 Accounts payable and accrued liabilities (2,543) Deferred taxes, net (5,193) Operating lease liability (1,315) Net assets acquired $ 47,349 The allocation of the purchase price paid for TruCode was as follows: (In thousands) Purchase Price Allocation Acquired cash $ 4,249 Accounts receivable 924 Prepaid expenses 2 Intangible assets 37,300 Goodwill 27,287 Accounts payable and accrued liabilities (1,840) Contingent consideration (2,500) Deferred revenue (1,300) Net assets acquired $ 64,122 |
Schedule of Business Acquisition, Pro Forma Information | The following unaudited pro forma revenue, net income and earnings per share amounts for the three months ended March 31, 2022 give effect to the HRG acquisition as if it had been completed on January 1, 2021. The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of what the operating results actually would have been during the periods presented had the HRG acquisition been completed during the periods presented. In addition, the unaudited pro forma financial information does not purport to project future operating results. The pro forma information does not fully reflect: (1) any anticipated synergies (or costs to achieve synergies) or (2) the impact of non-recurring items directly related to the HRG acquisition. Three Months Ended (In thousands, except per share data) 2022 2021 Pro forma revenues $ 84,211 $ 75,688 Pro forma net income $ 6,822 $ 2,317 Pro forma diluted earnings per share $ 0.46 $ 0.15 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Land $ 2,848 $ 2,848 Buildings and improvements 8,279 8,269 Computer equipment 8,229 7,868 Leasehold improvements 806 783 Office furniture and fixtures 743 682 Automobiles 18 18 Property and equipment, gross 20,923 20,468 Less: accumulated depreciation (9,456) (8,878) Property and equipment, net $ 11,467 $ 11,590 |
SOFTWARE DEVELOPMENT (Tables)
SOFTWARE DEVELOPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Schedule of software development, net | Software development costs, net was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Software development costs $ 16,984 $ 12,693 Less: accumulated amortization (1,575) (1,049) Software development costs, net $ 15,409 $ 11,644 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Salaries and benefits $ 7,814 $ 8,482 Severance 199 236 Commissions 1,104 1,158 Self-insurance reserves 1,087 1,409 Contingent consideration 1,250 2,500 Operating lease liabilities, current portion 2,061 1,592 Other 1,508 1,786 Other accrued liabilities $ 15,023 $ 17,163 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) 2022 2021 Net income $ 8,113 $ 4,144 Less: Net income attributable to participating securities (166) (103) Net income attributable to common stockholders $ 7,947 $ 4,041 Weighted average shares outstanding used in basic per common share computations 14,381 14,159 Add: Dilutive potential common shares — 62 Weighted average shares outstanding used in diluted per common share computations 14,381 14,221 Basic EPS $ 0.55 $ 0.29 Diluted EPS $ 0.55 $ 0.28 |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and 2021, included in the condensed consolidated statements of income: Three Months Ended March 31, (In thousands) 2022 2021 Costs of sales $ 267 $ 213 Operating expenses 1,450 821 Pre-tax stock-based compensation expense 1,717 1,034 Less: income tax effect (378) (227) Net stock-based compensation expense $ 1,339 $ 807 |
Summary of Restricted Stock Activity | A summary of restricted stock activity under the Plan during the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Shares Weighted-Average Shares Weighted-Average Unvested restricted stock outstanding at beginning of period 314,883 $ 29.79 412,967 $ 28.87 Granted 144,064 34.44 134,314 31.26 Vested (174,943) 29.75 (245,455) 29.16 Forfeited — — (6,329) 29.10 Unvested restricted stock outstanding at end of period 284,004 $ 32.17 295,497 $ 29.71 |
Summary of Performance Share Award Activity | A summary of performance share award activity under the Plan during the three months ended March 31, 2022 and 2021 is as follows, based on the target award amounts set forth in the performance share award agreements: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Shares Weighted-Average Shares Weighted-Average Performance share awards outstanding at beginning of period 249,952 $ 29.59 252,852 $ 29.27 Granted 101,799 37.98 93,444 31.26 Forfeited or unearned (25,948) 31.75 (20,373) 29.92 Earned and issued (27,317) 31.75 (75,971) 30.50 Performance share awards outstanding at end of period 298,486 $ 32.06 249,952 $ 29.59 |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Short-term payment plans, gross $ 74 $ 121 Less: allowance for losses (4) (6) Short-term payment plans, net $ 70 $ 115 |
Components of Lease Receivables | The components of these receivables were as follows at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Long-term financing arrangements, gross $ 13,704 $ 15,659 Less: allowance for expected credit losses (875) (716) Less: unearned income (1,147) (1,339) Long-term financing arrangements, net $ 11,682 $ 13,604 |
Future Minimum Lease Payments to be Received | Future minimum payments to be received subsequent to March 31, 2022 are as follows: (In thousands) Years Ending December 31, 2022 $ 4,837 2023 4,658 2024 2,729 2025 1,309 2026 153 Thereafter 18 Total minimum payments to be received 13,704 Less: allowance for expected credit losses (875) Less: unearned income (1,147) Receivables, net $ 11,682 |
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, 2022 and year ended December 31, 2021: (In thousands) Balance at Beginning of Period Provision Charge-offs Recoveries Balance at End of Period March 31, 2022 $ 722 $ 157 $ — $ — $ 879 December 31, 2021 $ 1,489 $ 481 $ (1,248) $ — $ 722 |
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, 2022 and December 31, 2021: (In thousands) 1 to 90 Days Past Due 91 to 180 Days Past Due 181 + Days Past Due Total Past Due March 31, 2022 $ 771 $ 382 $ 123 $ 1,276 December 31, 2021 $ 713 $ 78 $ 73 $ 864 |
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, December 31, 2021 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 $ 6,555 $ 9,100 Uninvoiced client financing receivables related to trade accounts receivable that are 91 to 180 Days Past Due 556 329 Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due 342 386 Total uninvoiced client financing receivables balances of clients with a trade accounts receivable $ 7,453 $ 9,815 Total uninvoiced client financing receivables of clients with no related trade accounts receivable 5,104 4,505 Total financing receivables with contractual maturities of one year or less 74 121 Less: allowance for expected credit losses (879) (722) Total financing receivables $ 11,752 $ 13,719 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Definite-lived Intangible Assets | Our purchased definite-lived intangible assets as of March 31, 2022 and December 31, 2021 are summarized as follows: March 31, 2022 (In thousands) Customer Relationships Trademark Developed Technology Non-Compete Agreements Total Gross carrying amount, beginning of period $ 112,570 $ 12,320 $ 37,600 $ — $ 162,490 Intangible assets acquired 19,600 — 3,200 1,400 24,200 Accumulated amortization (43,943) (5,402) (21,614) — (70,959) Net intangible assets as of March 31, 2022 $ 88,227 $ 6,918 $ 19,186 $ 1,400 $ 115,731 Weighted average remaining years of useful life 9 13 9 5 10 December 31, 2021 (In thousands) Customer Relationships Trademark Developed Technology Non-Compete Agreements Total Gross carrying amount, beginning of period $ 84,370 $ 11,120 $ 29,700 $ — $ 125,190 Intangible assets acquired 28,200 1,200 7,900 — 37,300 Accumulated amortization (41,738) (5,177) (20,372) — (67,287) Net intangible assets as of December 31, 2021 $ 70,832 $ 7,143 $ 17,228 $ — $ 95,203 |
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, 2022: (In thousands) For the year ended December 31, 2022 $ 13,216 2023 15,440 2024 13,906 2025 13,590 2026 12,968 Thereafter 46,611 Total $ 115,731 |
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, 2022: (In thousands) Acute Care EHR Post-acute Care EHR TruBridge Total Balance as of December 31, 2021 $ 97,095 $ 29,570 $ 51,048 $ 177,713 Goodwill acquired — — 20,170 20,170 Balance as of March 31, 2022 $ 97,095 $ 29,570 $ 71,218 $ 197,883 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt was comprised of the following at March 31, 2022 and December 31, 2021: (In thousands) March 31, December 31, 2021 Term loan facility $ 68,438 $ 69,375 Revolving credit facility 74,000 31,000 Debt obligations 142,438 100,375 Less: unamortized debt issuance costs (942) (1,015) Debt obligation, net 141,496 99,360 Less: current portion (4,863) (4,394) Long-term debt $ 136,633 $ 94,966 |
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, 2022: (In thousands) 2022 $ 3,750 2023 5,625 2024 6,563 2025 126,500 2026 — Thereafter — $ 142,438 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease, Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating leases was as follows: (In thousands) March 31, Operating lease assets Operating lease assets $ 8,079 Operating lease liabilities Other accrued liabilities 2,061 Operating lease liabilities, net of current portion 6,018 Total operating lease liabilities $ 8,079 Weighted average remaining lease term in years 5 Weighted average discount rate 4.4% |
Schedule of Operating Lease, Liability, Maturity | The future minimum lease payments payable under these operating leases subsequent to March 31, 2022 are as follows: (In thousands) 2022 $ 1,558 2023 2,022 2024 1,913 2025 1,202 2026 1,225 Thereafter 1,115 Total lease payments 9,035 Less imputed interest (956) Total $ 8,079 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Value of the Contingent Consideration | The following tables summarize the carrying amounts and fair value of the contingent consideration at March 31, 2022 and December 31, 2021, respectively: Fair Value at March 31, 2022 Using Carrying Amount at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) 3/31/2022 (Level 1) (Level 2) (Level 3) Description Contingent consideration $ 1,250 $ — $ — $ 1,250 Total $ 1,250 $ — $ — $ 1,250 Fair Value at December 31, 2021 Using Carrying Amount at Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) 12/31/2021 (Level 1) (Level 2) (Level 3) Description Contingent consideration $ 2,500 $ — $ — $ 2,500 Total $ 2,500 $ — $ — $ 2,500 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents a summary of the revenues and adjusted EBITDA of our three operating segments for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (In thousands) 2022 2021 Revenues by segment: TruBridge $ 43,108 $ 31,639 Acute Care EHR Recurring revenue 27,364 27,210 Non-recurring revenue 3,028 4,680 Total Acute Care EHR revenue 30,392 31,890 Post-acute Care EHR Recurring revenue 3,895 4,222 Non-recurring revenue 476 254 Total Post-acute Care EHR revenue 4,371 4,476 Total revenues $ 77,871 $ 68,005 Adjusted EBITDA by segment: TruBridge 10,789 6,520 Acute Care EHR 5,032 4,684 Post-acute Care EHR 332 620 Total adjusted EBITDA $ 16,153 $ 11,824 |
Reconciliation Of Net Income From Continuing Operations To Adjusted Income (Loss) From Before Interest, Taxes, Depreciation And Amortization | The following table reconciles net income from continuing operations to adjusted EBITDA: Three Months Ended March 31, (In thousands) 2022 2021 Net income, as reported $ 8,113 $ 4,144 Deferred revenue and other acquisition-related adjustments 79 — Depreciation expense 578 553 Amortization of software development costs 526 73 Amortization of acquisition-related intangibles 3,672 3,057 Stock-based compensation 1,717 1,034 Severance and other non-recurring charges 594 2,193 Interest expense and other, net 761 (187) Gain on contingent consideration (1,250) — Provision for income taxes 1,363 957 Total adjusted EBITDA $ 16,153 $ 11,824 |
REVENUE RECOGNITION (Detail)
REVENUE RECOGNITION (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 | Mar. 31, 2021 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 11,529 | $ 8,130 |
Deferred revenue recorded | 9,263 | 5,847 |
Less deferred revenue recognized as revenue | (6,661) | (5,144) |
Ending balance | $ 14,131 | $ 8,833 |
REVENUE RECOGNITION Costs to Ob
REVENUE RECOGNITION Costs to Obtain and Fulfill Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning balance | $ 7,312 | $ 5,992 |
Costs to obtain and fulfill contracts capitalized | 3,047 | 1,836 |
Less costs to obtain and fulfill contracts recognized as expense | (1,799) | (1,475) |
Ending balance | $ 8,560 | $ 6,353 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - USD ($) $ in Thousands | Mar. 01, 2022 | May 12, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Gain on contingent consideration | $ (1,250) | $ 0 | |||
TruCode, LLC | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 59,900 | ||||
Acquisition related costs | $ 900 | ||||
Pro forma information, revenue | 3,800 | ||||
Pro forma information, pre-tax income | $ 500 | ||||
Contingent consideration earnout payment (up to) | $ 15,000 | ||||
Business combination, contingent consideration period | 12 months | ||||
Gain on contingent consideration | $ 1,250 | ||||
Contingent consideration | 2,500 | ||||
Healthcare Resource Group, Inc. | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 43,400 | ||||
Acquisition related costs | $ 500 |
BUSINESS COMBINATION - Prelimin
BUSINESS COMBINATION - Preliminary Allocation of the Purchase Price Paid (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | May 12, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 197,883 | $ 177,713 | |
Healthcare Resource Group, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired cash | 3,989 | ||
Accounts receivable | 5,609 | ||
Prepaid expenses | 406 | ||
Property and equipment | 428 | ||
Other assets | 73 | ||
Intangible assets | 24,200 | ||
Operating lease assets | 1,315 | ||
Goodwill | 20,380 | ||
Accounts payable and accrued liabilities | (2,543) | ||
Deferred taxes, net | (5,193) | ||
Operating lease liability | (1,315) | ||
Net assets acquired | $ 47,349 | ||
TruCode, LLC | |||
Business Acquisition [Line Items] | |||
Acquired cash | $ 4,249 | ||
Accounts receivable | 924 | ||
Prepaid expenses | 2 | ||
Intangible assets | 37,300 | ||
Goodwill | 27,287 | ||
Accounts payable and accrued liabilities | (1,840) | ||
Contingent consideration | (2,500) | ||
Deferred revenue | (1,300) | ||
Net assets acquired | $ 64,122 |
BUSINESS COMBINATION - Pro Form
BUSINESS COMBINATION - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Pro forma revenues | $ 84,211 | $ 75,688 |
Pro forma net income | $ 6,822 | $ 2,317 |
Pro forma diluted earnings per share (in dollars per share) | $ 0.46 | $ 0.15 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,923 | $ 20,468 |
Less: accumulated depreciation | (9,456) | (8,878) |
Property and equipment, net | 11,467 | 11,590 |
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 | 8,279 | 8,269 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,229 | 7,868 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 806 | 783 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 743 | 682 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18 | $ 18 |
SOFTWARE DEVELOPMENT - Narrativ
SOFTWARE DEVELOPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized software development costs | $ 8.8 | |
Increase in capitalized software development costs | $ 4.6 | |
Software Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 5 years |
SOFTWARE DEVELOPMENT - Schedule
SOFTWARE DEVELOPMENT - Schedule of Software Development Costs, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Research and Development [Abstract] | ||
Software development costs | $ 16,984 | $ 12,693 |
Less: accumulated amortization | (1,575) | (1,049) |
Software development costs, net | $ 15,409 | $ 11,644 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Salaries and benefits | $ 7,814 | $ 8,482 |
Severance | 199 | 236 |
Commissions | 1,104 | 1,158 |
Self-insurance reserves | 1,087 | 1,409 |
Contingent consideration | 1,250 | 2,500 |
Operating lease liabilities, current portion | 2,061 | 1,592 |
Other | 1,508 | 1,786 |
Other accrued liabilities | $ 15,023 | $ 17,163 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income | $ 8,113 | $ 4,144 |
Less: Net income attributable to participating securities | (166) | (103) |
Net income attributable to common stockholders | $ 7,947 | $ 4,041 |
Weighted average shares outstanding used in basic per common share computations (in shares) | 14,381,000 | 14,159,000 |
Add: Dilutive potential common shares (in shares) | 0 | 62,000 |
Weighted average shares outstanding used in diluted per common share computations (in shares) | 14,381,000 | 14,221,000 |
Basic EPS (in dollars per share) | $ 0.55 | $ 0.29 |
Diluted EPS (in dollars per share) | $ 0.55 | $ 0.28 |
NET INCOME PER SHARE - Narrativ
NET INCOME PER SHARE - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Aggregate target (in shares) | 298,486 | |
Dilutive potential common shares included in the calculation of diluted earnings per share (in shares) | 0 | 62,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate percentage | 14.40% | 18.80% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 2.40% | |
Restricted stock vesting expense (benefit) | 2.80% |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND EQUITY - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $ 1,717 | $ 1,034 |
Less: income tax effect | (378) | (227) |
Net stock-based compensation expense | 1,339 | 807 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 16,500 | |
Period for recognition for which unrecognized compensation costs are expected to be recognized | 2 years 4 months 24 days | |
Costs of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $ 267 | 213 |
Operating expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Pre-tax stock-based compensation expense | $ 1,450 | $ 821 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND EQUITY - Summary of Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares | ||
Stock outstanding at beginning of period, shares | 314,883 | 412,967 |
Granted, shares | 144,064 | 134,314 |
Vested, shares | (174,943) | (245,455) |
Forfeited, shares | 0 | (6,329) |
Stock outstanding at end of period, shares | 284,004 | 295,497 |
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) | $ 29.79 | $ 28.87 |
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 34.44 | 31.26 |
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 29.75 | 29.16 |
Forfeited or unearned, Weighted-Average Grant-Date Fair Value (in dollars per share) | 0 | 29.10 |
Nonvested stock outstanding at end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 32.17 | $ 29.71 |
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 AND _5
STOCK-BASED COMPENSATION AND EQUITY - Summary of Performance Share Awards (Details) - Performance Shares - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares | ||
Stock outstanding at beginning of period, shares | 249,952 | 252,852 |
Granted, shares | 101,799 | 93,444 |
Forfeited or unearned, shares | (25,948) | (20,373) |
Vested and issued, shares | (27,317) | (75,971) |
Stock outstanding at end of period, shares | 298,486 | 249,952 |
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) | $ 29.59 | $ 29.27 |
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 37.98 | 31.26 |
Forfeited or unearned, Weighted-Average Grant-Date Fair Value (in dollars per share) | 31.75 | 29.92 |
Vested and issued, Weighted-Average Grant-Date Fair Value (in dollars per share) | 31.75 | 30.50 |
Nonvested stock outstanding at end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 32.06 | $ 29.59 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND EQUITY - Stock Repurchases (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 04, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Stock repurchase program, authorized amount | $ 30,000,000 | ||
Stock repurchased during period (in shares) | 0 | 12,056 | |
Stock repurchase program, remaining authorized repurchase amount | $ 28,100,000 | ||
Shares purchased for award (in shares) | 50,720 | 21,444 |
FINANCING RECEIVABLES - Narrati
FINANCING RECEIVABLES - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022 | |
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 - Short t
FINANCING RECEIVABLES - Short term Payment Plans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Less: allowance for losses | $ (287) | $ (325) |
Short-term payment plans, net | 5,740 | 6,488 |
Short-Term Payment Plans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Short-term payment plans, gross | 74 | 121 |
Less: allowance for losses | (4) | (6) |
Short-term payment plans, net | $ 70 | $ 115 |
FINANCING RECEIVABLES - Compone
FINANCING RECEIVABLES - Components of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Less: allowance for expected credit losses | $ (879) | $ (722) | $ (1,489) |
Total financing receivables | 11,752 | 13,719 | |
Long-Term Financing Arrangement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Long-term financing arrangements, gross | 13,704 | 15,659 | |
Less: allowance for expected credit losses | (875) | (716) | |
Less: unearned income | (1,147) | (1,339) | |
Total financing receivables | $ 11,682 | $ 13,604 |
FINANCING RECEIVABLES - Future
FINANCING RECEIVABLES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Less: allowance for expected credit losses | $ (879) | $ (722) | $ (1,489) |
Total financing receivables | 11,752 | 13,719 | |
Long-Term Financing Arrangement | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
2022 | 4,837 | ||
2023 | 4,658 | ||
2024 | 2,729 | ||
2025 | 1,309 | ||
2026 | 153 | ||
Thereafter | 18 | ||
Total minimum payments to be received | 13,704 | ||
Less: allowance for expected credit losses | (875) | (716) | |
Less: unearned income | (1,147) | (1,339) | |
Total financing receivables | $ 11,682 | $ 13,604 |
FINANCING RECEIVABLES - Allowan
FINANCING RECEIVABLES - Allowance for Financing Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Allowance for Credit Losses on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | $ 722 | $ 1,489 |
Provision | 157 | 481 |
Charge-offs | 0 | (1,248) |
Recoveries | 0 | 0 |
Balance at End of Period | $ 879 | $ 722 |
FINANCING RECEIVABLES - Analysi
FINANCING RECEIVABLES - Analysis of Age of Financing Receivables Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Long-term financing arrangements, gross | $ 1,276 | $ 864 |
1 to 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Long-term financing arrangements, gross | 771 | 713 |
91 to 180 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Long-term financing arrangements, gross | 382 | 78 |
181 + Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Long-term financing arrangements, gross | $ 123 | $ 73 |
FINANCING RECEIVABLES - Summary
FINANCING RECEIVABLES - Summary of Financing Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total financing receivables with contractual maturities of one year or less | $ 74 | $ 121 | |
Less: allowance for expected credit losses | (879) | (722) | $ (1,489) |
Total financing receivables | 11,752 | 13,719 | |
Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total uninvoiced client financing receivables of clients with no related trade accounts receivable | 1,276 | 864 | |
Total Past Due | Trade Accounts Receivable | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total uninvoiced client financing receivables of clients with no related trade accounts receivable | 7,453 | 9,815 | |
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 uninvoiced client financing receivables of clients with no related trade accounts receivable | 771 | 713 | |
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 uninvoiced client financing receivables of clients with no related trade accounts receivable | 6,555 | 9,100 | |
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 uninvoiced client financing receivables of clients with no related trade accounts receivable | 382 | 78 | |
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 uninvoiced client financing receivables of clients with no related trade accounts receivable | 556 | 329 | |
Uninvoiced client financing receivables related to trade accounts receivable that are 181 + Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total uninvoiced client financing receivables of clients with no related trade accounts receivable | 123 | 73 | |
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 uninvoiced client financing receivables of clients with no related trade accounts receivable | 342 | 386 | |
Total Not Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total uninvoiced client financing receivables of clients with no related trade accounts receivable | $ 5,104 | $ 4,505 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount, beginning of period | $ 162,490 | $ 125,190 | |
Intangible assets acquired | $ 24,200 | 37,300 | |
Accumulated amortization | (70,959) | (67,287) | |
Intangible assets, net | $ 115,731 | 95,203 | |
Weighted average remaining years of useful life | 10 years | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount, beginning of period | 112,570 | 84,370 | |
Intangible assets acquired | $ 19,600 | 28,200 | |
Accumulated amortization | (43,943) | (41,738) | |
Intangible assets, net | $ 88,227 | 70,832 | |
Weighted average remaining years of useful life | 9 years | ||
Trademark | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount, beginning of period | 12,320 | 11,120 | |
Intangible assets acquired | $ 0 | 1,200 | |
Accumulated amortization | (5,402) | (5,177) | |
Intangible assets, net | $ 6,918 | 7,143 | |
Weighted average remaining years of useful life | 13 years | ||
Developed Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount, beginning of period | 37,600 | 29,700 | |
Intangible assets acquired | $ 3,200 | 7,900 | |
Accumulated amortization | (21,614) | (20,372) | |
Intangible assets, net | $ 19,186 | 17,228 | |
Weighted average remaining years of useful life | 9 years | ||
Non-Compete Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount, beginning of period | 0 | $ 0 | |
Intangible assets acquired | $ 1,400 | 0 | |
Accumulated amortization | 0 | 0 | |
Intangible assets, net | $ 1,400 | $ 0 | |
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, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 13,216 | |
2022 | 15,440 | |
2023 | 13,906 | |
2024 | 13,590 | |
2025 | 12,968 | |
Thereafter | 46,611 | |
Intangible assets, net | $ 115,731 | $ 95,203 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 177,713 |
Goodwill acquired | 20,170 |
Goodwill, ending balance | 197,883 |
Operating Segments | Acute Care EHR | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 97,095 |
Goodwill acquired | 0 |
Goodwill, ending balance | 97,095 |
Operating Segments | Post-acute Care EHR | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 29,570 |
Goodwill acquired | 0 |
Goodwill, ending balance | 29,570 |
Operating Segments | TruBridge | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 51,048 |
Goodwill acquired | 20,170 |
Goodwill, ending balance | $ 71,218 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt obligations | $ 142,438 | $ 100,375 |
Less: unamortized debt issuance costs | (942) | (1,015) |
Debt obligation, net | 141,496 | 99,360 |
Less: current portion | (4,863) | (4,394) |
Long-term debt | 136,633 | 94,966 |
Line of credit | Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt obligations | 68,438 | 69,375 |
Line of credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt obligations | $ 74,000 | $ 31,000 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - Line of credit - USD ($) | Jun. 16, 2020 | Jan. 31, 2016 | Jun. 30, 2022 | Jun. 30, 2024 | Mar. 31, 2025 |
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 | 3.5 | ||||
Prepayment amount from excess cash flow, year two and thereafter, percentage | 50.00% | ||||
Consolidated leverage ratio | 2.5 | ||||
London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Term loan facility | |||||
Debt Instrument [Line Items] | |||||
Amount of credit facility | $ 75,000,000 | $ 125,000,000 | |||
Term loan facility | Forecast | |||||
Debt Instrument [Line Items] | |||||
Periodic payment, principal | $ 900,000 | $ 1,400,000 | $ 1,900,000 | ||
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amount of credit facility | $ 110,000,000 | $ 50,000,000 | |||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.80% | ||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Revolving credit facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.80% | ||||
Revolving credit facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Revolving credit facility | Federal funds rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Amended and restated credit agreement | |||||
Debt Instrument [Line Items] | |||||
Amount of credit facility | $ 185,000,000 |
LONG-TERM DEBT - Annual Future
LONG-TERM DEBT - Annual Future Maturities (Details) - Line of credit $ in Thousands | Mar. 31, 2022USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 3,750 |
2023 | 5,625 |
2024 | 6,563 |
2025 | 126,500 |
2026 | 0 |
Thereafter | 0 |
Long-term Debt, Total | $ 142,438 |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Lease expense | $ 0.4 | $ 0.4 |
Operating lease, payments | $ 0.4 |
OPERATING LEASES - Supplemental
OPERATING LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets | $ 8,079 | $ 7,097 |
Operating lease liabilities | ||
Other accrued liabilities | $ 2,061 | 1,592 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | |
Operating lease liabilities, net of current portion | $ 6,018 | $ 5,505 |
Total operating lease liabilities | $ 8,079 | |
Weighted average remaining lease term in years | 5 years | |
Weighted average discount rate | 4.40% |
OPERATING LEASES - Future Minim
OPERATING LEASES - Future Minimum Lease Payments Payable Under these Operating Leases (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 1,558 |
2023 | 2,022 |
2024 | 1,913 |
2025 | 1,202 |
2026 | 1,225 |
Thereafter | 1,115 |
Total lease payments | 9,035 |
Less imputed interest | (956) |
Total | $ 8,079 |
FAIR VALUE (Details)
FAIR VALUE (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 1,250 | $ 2,500 |
Total financial liabilities | 1,250 | 2,500 |
(Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 0 |
Total financial liabilities | 0 | 0 |
(Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0 | 0 |
Total financial liabilities | 0 | 0 |
(Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 1,250 | 2,500 |
Total financial liabilities | $ 1,250 | $ 2,500 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Revenues and EBITDA by Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 3 | |
Total sales revenues | $ 77,871 | $ 68,005 |
Total adjusted EBITDA | 16,153 | 11,824 |
Operating Segments | TruBridge | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 43,108 | 31,639 |
Total adjusted EBITDA | 10,789 | 6,520 |
Operating Segments | Acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 30,392 | 31,890 |
Total adjusted EBITDA | 5,032 | 4,684 |
Operating Segments | Post-acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 4,371 | 4,476 |
Total adjusted EBITDA | 332 | 620 |
Recurring revenue | Operating Segments | Acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 27,364 | 27,210 |
Recurring revenue | Operating Segments | Post-acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 3,895 | 4,222 |
Non-recurring revenue | Operating Segments | Acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | 3,028 | 4,680 |
Non-recurring revenue | Operating Segments | Post-acute Care EHR | ||
Segment Reporting Information [Line Items] | ||
Total sales revenues | $ 476 | $ 254 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Adjusted Income (Loss) From Before Interest, Taxes, Depreciation And Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
Net income | $ 8,113 | $ 4,144 |
Deferred revenue and other acquisition-related adjustments | 79 | 0 |
Depreciation | 578 | 553 |
Amortization of software development costs | 526 | 73 |
Amortization of acquisition-related intangibles | 3,672 | 3,057 |
Stock-based compensation | 1,717 | 1,034 |
Severance and other non-recurring charges | 594 | 2,193 |
Interest expense and other, net | 761 | (187) |
Gain on contingent consideration | (1,250) | 0 |
Provision for income taxes | 1,363 | 957 |
Total adjusted EBITDA | $ 16,153 | $ 11,824 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Line of credit | May 02, 2022USD ($) | Jun. 16, 2020USD ($) | Jan. 31, 2016USD ($) |
Subsequent Event [Line Items] | |||
Qualified Cash to be held which may count toward reducing the consolidated net leverage ratio covenant | $ 10,000,000 | ||
Consolidated leverage ratio, maximum | 3.5 | ||
Line of credit facility, incremental facility capacity | $ 50,000,000 | ||
Consolidated leverage ratio | 2.5 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Qualified Cash to be held which may count toward reducing the consolidated net leverage ratio covenant | $ 20,000,000 | ||
Consolidated leverage ratio, maximum | 3.75 | ||
Line of credit facility, business acquisition, maximum amount | $ 25,000,000 | ||
Covenant consolidated leverage ratio maximum increase per business acquisition limit | 0.5 | ||
Line of credit facility, incremental facility capacity | $ 75,000,000 | ||
Consolidated leverage ratio | 2.5 | ||
Revolving credit facility | |||
Subsequent Event [Line Items] | |||
Amount of credit facility | $ 110,000,000 | $ 50,000,000 | |
Revolving credit facility | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Amount of credit facility | $ 160,000,000 | ||
Term loan facility | |||
Subsequent Event [Line Items] | |||
Amount of credit facility | $ 75,000,000 | $ 125,000,000 | |
Term loan facility | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Amount of credit facility | 70,000,000 | ||
Advance under the term loan | $ 1,600,000 |