EXHIBIT 99.1
Computer Programs and Systems, Inc.
Announces Second Quarter 2007 Results
Company Declares Regular Quarterly Dividend of $0.36 Per Share
MOBILE, Ala.--(BUSINESS WIRE)--July 19, 2007--Computer Programs
and Systems, Inc. (NASDAQ:CPSI):
Highlights:
-- Signed contracts for system installation at six new client
hospitals during second quarter;
-- Cash flow from operations of $5.2 million; and
-- Quarterly dividend of $0.36 per share.
Computer Programs and Systems, Inc. (NASDAQ:CPSI), a leading
provider of healthcare information solutions, today announced results
for the second quarter and six months ended June 30, 2007.
The Company also announced that its Board of Directors has
declared a regular quarterly cash dividend of $0.36 (thirty-six cents)
per share, payable on August 24, 2007, to shareholders of record as of
the close of business on August 3, 2007.
Total revenues for the second quarter ended June 30, 2007,
decreased 3.5% to $28.0 million, compared with total revenues of $29.0
million for the prior-year period. Net income for the quarter ended
June 30, 2007, decreased 19.2% to $3.3 million, or $0.31 per diluted
share, compared with $4.1 million, or $0.38 per diluted share, for the
quarter ended June 30, 2006. Cash flow from operations for the second
quarter of 2006 was $5.2 million, compared with $3.7 million for the
prior-year period.
Commenting on the results, Boyd Douglas, chief executive officer
and president of CPSI, stated, "During the second quarter, our cash
flow was a strong $5.2 million, the highest in the last six quarters,
putting cash and investments to over $20 million for the first time
since the second quarter of 2006. We signed six new contracts during
the quarter, and we saw continued growth in outsourcing. While we are
pleased with our new sales to existing customers, we continue to focus
our efforts on increasing sales to new customers."
Total revenues for the six months ended June 30, 2007, decreased
7.9% to $53.9 million, compared with total revenues of $58.5 million
for the prior-year period. Net income for the six months ended June
30, 2007, decreased 28.3% to $5.9 million, or $0.55 per diluted share,
compared with $8.2 million, or $0.76 per diluted share, for the six
months ended June 30, 2006. Cash provided from operations for the
first half of 2007 was $8.6 million, compared with $7.0 million for
the same period last year.
For the third quarter of 2007, the Company anticipates total
revenues of $27.0 million to $28.5 million and net income of
approximately $2.9 million to $3.1 million, or $0.27 to $0.29 per
diluted share. CPSI's 12-month backlog as of June 30, 2007, was $90.7
million, consisting of $20.7 million in non-recurring system purchases
and $70.0 million in recurring payments for support, outsourcing, ASP
and ISP contracts.
A listen-only simulcast and replay of CPSI's second quarter 2007
conference call will be available on-line at www.cpsinet.com and
www.earnings.com on July 20, 2007, beginning at 9:00 a.m. Eastern
Time.
About Computer Programs and Systems, Inc.
CPSI is a leading provider of healthcare information solutions for
community hospitals with over 600 client hospitals in 46 states.
Founded in 1979, the Company is a single-source vendor providing
comprehensive software and hardware products, complemented by complete
installation services and extensive support. Its fully integrated,
enterprise-wide system automates clinical and financial data
management in each of the primary functional areas of a hospital.
CPSI's staff of over 800 technical, healthcare and medical
professionals provides system implementation and continuing support
services as part of a comprehensive program designed to respond to
clients' information needs in a constantly changing healthcare
environment. For more information, visit www.cpsinet.com.
This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified generally by the use of forward-looking terminology and
words such as "expects," "anticipates," "estimates," "believes,"
"predicts," "intends," "plans," "potential," "may," "continue,"
"should," "will" and words of comparable meaning. Without limiting the
generality of the preceding statement, all statements in this press
release relating to estimated and projected earnings, margins, costs,
expenditures, cash flows, growth rates and future financial results
are forward-looking statements. We caution investors that any such
forward-looking statements are only predictions and are not guarantees
of future performance. Certain risks, uncertainties and other factors
may cause actual results to differ materially from those projected in
the forward-looking statements. Such factors may include: overall
business and economic conditions affecting the healthcare industry;
saturation of our target market and hospital consolidations; changes
in customer purchasing priorities and demand for information
technology systems; competition with companies that have greater
financial, technical and marketing resources than we have; failure to
develop new technology and products in response to market demands;
fluctuations in quarterly financial performance due to, among other
factors, timing of customer installations; failure of our products to
function properly resulting in claims for medical losses; government
regulation of our products and customers, including changes in
healthcare policy affecting Medicare reimbursement rates;
interruptions in our power supply and/or telecommunications
capabilities and other risk factors described from time to time in our
public releases and reports filed with the Securities and Exchange
Commission, including, but not limited to, our Annual Report on Form
10-K. We also caution investors that the forward-looking information
described herein represents our outlook only as of this date, and we
undertake no obligation to update or revise any forward-looking
statements to reflect events or developments after the date of this
press release.
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Statements of Operations
(in thousands, except per share data)
Three Months Six Months
Ended Ended
June 30, June 30,
--------------- ---------------
2007 2006 2007 2006
------- ------- ------- -------
Sales revenues:
System sales $10,266 $13,212 $18,582 $27,731
Support and maintenance 12,368 11,427 24,908 22,597
Outsourcing 5,329 4,346 10,419 8,194
------- ------- ------- -------
Total sales revenues 27,963 28,985 53,909 58,522
Cost of sales:
System sales 7,766 8,521 14,945 17,277
Support and maintenance 5,006 5,041 10,063 9,948
Outsourcing 3,295 2,459 6,353 4,683
------- ------- ------- -------
Total cost of sales 16,067 16,021 31,361 31,908
------- ------- ------- -------
Gross profit 11,896 12,964 22,548 26,614
Operating expenses:
Sales and marketing 2,306 2,133 4,382 4,342
General and administrative 4,765 4,410 9,657 9,392
------- ------- ------- -------
Total operating expenses 7,071 6,543 14,039 13,734
------- ------- ------- -------
Operating income 4,825 6,421 8,509 12,880
Interest income 272 264 549 521
------- ------- ------- -------
Income before taxes 5,097 6,685 9,058 13,401
Provision for income taxes 1,795 2,600 3,197 5,223
------- ------- ------- -------
Net income $ 3,302 $ 4,085 $ 5,861 $ 8,178
======= ======= ======= =======
Basic earnings per share $ 0.31 $ 0.38 $ 0.55 $ 0.77
======= ======= ======= =======
Diluted earnings per share $ 0.31 $ 0.38 $ 0.55 $ 0.76
======= ======= ======= =======
Weighted average shares outstanding:
Basic 10,683 10,637 10,673 10,633
Diluted 10,732 10,719 10,725 10,717
COMPUTER PROGRAMS AND SYSTEMS, INC.
Condensed Balance Sheets
(in thousands)
June 30, Dec. 31,
2007 2006
----------- -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 9,657 $ 8,760
Investments 10,972 10,718
Accounts receivable, net of allowance for
doubtful accounts of $825 and $814,
respectively 14,250 14,096
Financing receivables, current portion 2,207 2,177
Inventory 1,516 1,668
Deferred tax assets 1,370 1,406
Prepaid expenses 295 320
Prepaid income taxes 31 107
---------- ----------
Total current assets 40,298 39,252
Financing receivables, long-term 2,433 2,397
Property and equipment 14,553 13,897
Accumulated depreciation (8,688) (7,642)
---------- ----------
Total assets $ 48,596 $ 47,904
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,203 $ 1,204
Deferred revenue 3,411 2,275
Accrued vacation 2,149 2,053
Other accrued liabilities 2,889 3,158
---------- ----------
Total current liabilities 9,652 8,690
Deferred tax liabilities 539 508
Stockholders' equity:
Common stock, par value $0.001 per share,
30,000 shares authorized, 10,798 and 10,756
shares issued and outstanding 11 11
Additional paid-in capital 24,003 22,427
Accumulated other comprehensive income - (7)
Retained earnings 14,391 16,275
---------- ----------
Total stockholders' equity 38,405 38,706
---------- ----------
Total liabilities and stockholders'
equity $ 48,596 $ 47,904
========== ==========
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Other Supplemental Information
(In thousands)
The following table summarizes free cash
flow for the Company:
- --------------------------------------------
Three Months Six Months
Ended Ended
June 30, June 30,
2007 2007
------------ ------------
Net cash provided by operating activities $ 5,189 $ 8,606
Purchases of property and equipment 308 656
------------ ------------
Free cash flow $ 4,881 $ 7,950
============ ============
Free cash flow is a non-GAAP financial measure which CPSI defines
as net cash provided by operating activities less purchases of
property and equipment. The most directly comparable GAAP financial
measure is net cash provided by operating activities. The Company
believes free cash flow is a useful measure of performance and uses
this measure as an indication of the financial resources of the
Company and its ability to generate cash.
CONTACT: Computer Programs and Systems, Inc.
M. Stephen Walker, 251-639-8100
Vice President-Finance and Chief Financial Officer