Exhibit 99.1
Computer Programs and Systems, Inc.
Announces Third Quarter 2007 Results
Company Declares Regular Quarterly Dividend of $0.36 Per Share
MOBILE, Ala.--(BUSINESS WIRE)--Oct. 18, 2007--Computer Programs
and Systems, Inc. (NASDAQ: CPSI):
Highlights:
-- Earnings per share for the third quarter of 2007 of $0.30 on
revenues of $28.0 million;
-- Cash flow from operations of $4.3 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 third quarter and nine months ended September 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 November 23, 2007, to stockholders of record as
of the close of business on November 2, 2007.
Total revenues for the third quarter ended September 30, 2007,
increased 2.6% to $28.0 million, compared with total revenues of $27.3
million for the prior-year period. Net income for the quarter ended
September 30, 2007, decreased 5.7% to $3.2 million, or $0.30 per
diluted share, compared with $3.4 million, or $0.32 per diluted share,
for the quarter ended September 30, 2006. Cash flow from operations
for the third quarter of 2007 was $4.3 million, compared with $3.3
million for the prior-year period.
Commenting on the results, Boyd Douglas, chief executive officer
and president of CPSI, stated, "We are pleased with our results for
the third quarter of 2007. We achieved the top end of our revenue
guidance and exceeded our earnings per share guidance. In addition,
our outsourcing continues to grow year-over-year at better than 20%.
We are also optimistic about the fourth quarter of 2007 based on
results to date."
Total revenues for the nine months ended September 30, 2007,
decreased 4.5% to $81.9 million, compared with total revenues of $85.8
million for the prior-year period. Net income for the nine months
ended September 30, 2007, decreased 21.7% to $9.1 million, or $0.85
per diluted share, compared with $11.6 million, or $1.08 per diluted
share, for the nine months ended September 30, 2006. Cash provided by
operations for the nine months ended September 30, 2007, was $12.9
million, compared with $10.3 million for the same period last year.
For the fourth quarter of 2007, the Company anticipates total
revenues of $28.0 million to $29.5 million and net income of
approximately $3.4 million to $3.6 million, or $0.31 to $0.33 per
diluted share. CPSI's 12-month backlog as of September 30, 2007, was
$90.8 million, consisting of $19.4 million in non-recurring system
purchases and $71.4 million in recurring payments for support,
outsourcing, ASP and ISP contracts.
A listen-only simulcast and replay of CPSI's third quarter 2007
conference call will be available on-line at www.cpsinet.com and
www.earnings.com on October 19, 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 Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2007 2006 2007 2006
------- ------- ------- -------
Sales revenues:
System sales $ 9,774 $10,917 $28,356 $38,648
Support and maintenance 12,687 11,764 37,595 34,361
Outsourcing 5,531 4,589 15,951 12,783
------- ------- ------- -------
Total sales revenues 27,992 27,270 81,902 85,792
Cost of sales:
System sales 7,820 8,401 22,765 25,678
Support and maintenance 4,933 4,960 14,996 14,908
Outsourcing 3,400 2,568 9,753 7,250
------- ------- ------- -------
Total cost of sales 16,153 15,929 47,514 47,836
------- ------- ------- -------
Gross profit 11,839 11,341 34,388 37,956
Operating expenses:
Sales and marketing 2,614 2,164 6,996 6,506
General and administrative 4,493 4,221 14,150 13,613
------- ------- ------- -------
Total operating expenses 7,107 6,385 21,146 20,119
------- ------- ------- -------
Operating income 4,732 4,956 13,242 17,837
Interest income 294 309 842 830
------- ------- ------- -------
Income before taxes 5,026 5,265 14,084 18,667
Provision for income taxes 1,798 1,841 4,995 7,065
------- ------- ------- -------
Net income $ 3,228 $ 3,424 $ 9,089 $11,602
======= ======= ======= =======
Basic earnings per share $ 0.30 $ 0.32 $ 0.85 $ 1.09
======= ======= ======= =======
Diluted earnings per share $ 0.30 $ 0.32 $ 0.85 $ 1.08
======= ======= ======= =======
Weighted average shares outstanding:
Basic 10,719 10,642 10,689 10,636
Diluted 10,757 10,706 10,736 10,713
COMPUTER PROGRAMS AND SYSTEMS, INC.
Condensed Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
2007 2006
----------- -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 10,018 $ 8,760
Investments 11,175 10,718
Accounts receivable, net of allowance for
doubtful accounts of $855 and $814,
respectively 13,772 14,096
Financing receivables, current portion 2,131 2,177
Inventory 1,604 1,668
Deferred tax assets 1,361 1,406
Prepaid expenses 276 320
Prepaid income taxes 278 107
----------- -----------
Total current assets 40,615 39,252
Financing receivables, long-term 2,394 2,397
Property and equipment 14,787 13,897
Accumulated depreciation (9,131) (7,642)
----------- -----------
Total assets $ 48,665 $ 47,904
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,365 $ 1,204
Deferred revenue 3,343 2,275
Accrued vacation 2,226 2,053
Other accrued liabilities 2,926 3,158
----------- -----------
Total current liabilities 9,860 8,690
Deferred tax liabilities 449 508
Stockholders' equity:
Common stock, par value $0.001 per share,
30,000 shares authorized, 10,813 and 10,756
shares issued and outstanding 11 11
Additional paid-in capital 24,563 22,427
Accumulated other comprehensive income
(loss) 51 (7)
Retained earnings 13,731 16,275
----------- -----------
Total stockholders' equity 38,356 38,706
----------- -----------
Total liabilities and stockholders'
equity $ 48,665 $ 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 Nine Months
Ended Ended
Sept. 30, Sept. 30,
2007 2007
------------ ------------
Net cash provided by operating activities $ 4,279 $ 12,889
Purchases of property and equipment (234) (890)
------------ ------------
Free cash flow $ 4,045 $ 11,999
============ ============
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