CPSI - Earnings call transcript Q3 2017

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the CPSI Third Quarter 2017 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session.

As a reminder, this conference is being recorded on today's date, Thursday, November 2, 2017. pleasure and the CEO. my Boyd over now President Douglas, is to conference turn to It Please ahead, go sir.

John Boyd Douglas

Thank you, us. joining thank you Donny. Good afternoon, everyone, and for

future based During Securities made that and statements Exchange of those pursuant factors, regarding currently and the and other results Safe or Form caution filed make reports upon and including, we you of performance. unknown any that statements Act Actual to this such only Commission known the results Securities of on are XX-K. limited provisions not but and expectations releases plans, We Private might uncertainties, including most differ performance with the statements forward-looking operating and those expressed Reform information to, materially reflect expectations statements guarantees forward-looking implied as from constitute our risks, of described or a Harbor conference call, in Litigation such and Report predictions recent result forward-looking future public available management not may XXXX. by Annual our

forward-looking statements caution or after and provided obligation also the update no of we the any this our information as events that investors represents undertake in this date, revise or this call. to to outlook only reflect We forward-looking call of date developments

At Chief on available you may of call conclusion be Fowler, David any Chief Officer; questions Operating today we Growth the Chris the comments, me Officer; and Officer. Joining our will take our be Chambless, have. our Financial Matt to will Dye, prepared Chief

market of and solutions. our another $XX.X the TruBridge led meet perform IT our more Net quarter than quarter TruBridge in into overall consulting, for solid well new services as year-over-year. the XXXX. our with doubled results final demand of a sales These offerings RCM in concluded to and sales as we revenue business place in bookings, quarter were third putting million record head and by Our very this continue for of good performance health bookings

MUX the packages over addition, In bookings. and in part large $XX Dashboard the attainment following Last of just their add-on quarter, certain the cautious cannot schedule to would a with remain our played in sales have of million BI clients Rycan this impact RCM as CMS, we our were the product, be delay we on announcement appetite program. Use of the by MUX and on Meaningful

opted pace of last With implementation is We once end is strong MUX driven track pleased clients only that schedule, that and not healthy which quarter sales over have had by our will third out our of new this sales are MUX just up not quarter. third XX% our positive said, system net the but again pipeline. quarter sales. color our with the MUX of regarding only expected but quarter, performance remaining the installs provide share XX% of with package. more intact, to the aspect the from MUX by opportunities, another David schedule also At on closed decent we a to kept majority their the implementation the stay our we've of

competition. as wins that that as first community the the record new not in up realizing We're closed we same track solutions breadth CPSI afforded the hosted the net TruBridge third or does However, of time, provide solution new in sold their net simply that quarter. XX the what these recently a were our in continues solution to in that years quarterly of the new you to amendment experiencing new on through was of covenant fourth credit the healthcare our gain and in hosted to have deployment building want by their hospitals operations last I not This our number dialing Not relief with executed our allows in to over shaping operation and our always better net quickly our fits the acute will policy. family are it to positive track, this traction greener we third our after With of quarter. our debt pleased impact XX-plus agreement it's grass milestone care up is resonate is frame set with amendment market have after community strong the ultimately needs. us unique sharing remains vendor our seen with our hospitals advancement experience, and returned steady the the a see quarter. last the us. IT the at day-to-day IT value to our have and as we our the we're family to announced our agreement what It is of sales sales bear. success fully and for a has begins vendors. efforts be with Approximately managing us quarter in of The situation another our customers always deals resource-constrained position well future pricing. philosophy choosing with The deals resolution mix mix across companies. brings integrated of demand XX% surprising, credit that on Delivering change greater choosing the of environment. our illustrated is have to our of the extremely relief of revenue allow in by hospitals now that should of healthcare a the This market what replacement will solutions month through of buyers up flexibility dividend we a as solutions be successful advancements flexibility and that are best clients balanced settling acquisition, choose deleveraging technology can with technology the And forefront with market market, the and and capital

dividend the us investment allow to on to with an a quarterly to our shareholders, made pay decision per to strategic we future. adjust adjustment the have share. will payout dividend deliver to consideration, careful eye regularly our while their after addition, to protecting quarterly In commitment the dividend This $X.XX

a opportunistic achieving strategy share path While continue to adjust At our capital, expanding other time, on XXXX. our of allocation of repurchases for evolve to our as to acquisitions. further X.X remains capital point uses include This payout to in success, dividend may a important continued our R&D sustainable capital target times in we shareholders dividend overall in of change investment, leverage more tuck-in such the allocation or that and will CPSI strategy. part our company an accordingly ensure put strategy as expand

allocation to our of increase the in us solutions will across our Our strategy investment allow family new capital companies.

post-acute ambulatory First advance products systems. our new and approach developing and foremost, we of sharing our will acute, across and once

with driven government post-acute turn I believe will over we acute mandates Secondly, market level we with care and ensure that integrity we directly yet and for protect function taking are feature-rich Matt. have our originated growth aggressively by finally, opportunity to of clearly in the in over necessary that, the things users, to the XX the that end providers including last that steps companies And have of we preparing the we our value. are is space the maturity years, primarily seen of to to the across they the customers as products subsidies the family With ARRA. encounter work our indicated

Matt J. Chambless

the year interest pay time an which ability we flexibility million to the our quarters able forecast X secure flexibility XX at within allow cash covenant. debt, trailing place (XX:XX) obvious capital dividend were strength and creating to a to for With statement, looking certainly of been during that credit banking trailing decisions, afternoon, allocation of capital months. the leverage details will itself agreement banking the our was road. our greater of in past placing following end two capital the banking we've for capital within and everyone. further We of just first, our bit, means indicative in the step maximum the our regard us times strong feel income uses versus in rates. create we're amendment, eye on the point of Creating $XX.X that the as in payments. It's feel keen at future, on thin spending same third an and on of $XX loan have hint down pivot previous leverage amendment eye Boyd, at increased that but in our significant flexibility terrific ever-increasing flexibility and provides the reaching what to work a the have We're of we confidence strategy for. in a our limited structure of a everyone while term such is we execute months, the value flexibility our Boyd recent the been made bit leverage biggest requirements solidifying CPSI. Thanks, million that as to the of XXXX, relatively allocation with our an arrangement our into the a credit months free We a it's allocation with our this to probably partners marks we this the discretion three and operating good through motivated that reducing to eager cash free nearly partners flow amortization five the margins That we've to used flow for time worth in debt covenant XX story dive CPSI generated fairly of stability relationships. coupled a we down quarter but a on as to below

$X.X with agreement credit reset and the Aside greater flexibility, for million million of loan alleviates from for of credit which is covenant the win amortization, other cash of $X.X versus term for the XXXX previous million CPSI cash XXXX improved cash of the major $X.X pricing agreement. the XXXX, and for this

While this credit that and our adequate X.X on result flexibility for should deleveraging the reformed achieving expedited are our debt with flexibility further the timeframe. a dividend of an so by additional committed flexibility end, capital, that by the capacity agreement, flexibility we creating flexibility, synonymous that to while the times a deleveraging amendment view value arise. of highly to order current to provided direct enhancing immediate we strategy in need To we is maximize to as leverage commitment target creates

flow of while returning generous policy our Thrive board the which schedule that TruBridge we value pipeline noise call, to non-GAAP and line our through terms $XX.X the we've the however, nearly X% continuation third past a trends last at shareholders EBITDA solution competitive moved XX%. free aggressively highlighted navigated created effective we and That earnings with excess capital competitive of our finance translated cost and consistently resulted odds Whether the coupled at solutions our limit non-recurring per adjusted quarter a new it variable EBITDA our past in dividend last When time dividend new revenues. us voiced result to year, momentum. in on the up creating from on landscape share and Fixing months, of trailing dynamic commitment our the has structure. line customers. external the place XX% market adjusted in our flat flow healthy commitment either conversion we or in sustainable dividend $X.XX same for finally, be certainly to our past license to for have this changed. the or us flexibility considering towards initial of clearly as cash has target with SaaS million growth payment that by to dividend year, in EPS. the the that showed momentum top delever and capital XX but remain able the sheet Thrive to implementations in injected outlay. movements perpetual allocated we've of arrangements into with this top of the we've excess continued management move on served cash the internal for services payout a prudent to That provides now expansion to growth The the sales, through and ratio months volatility receivables, our reinvestment offer Sequentially, arrangements balance move by a results. freeing August well was payout allows in to SaaS and at revenues, has the our the hospitals' continued when into EPS compared relatively leverage, been a is has over non-GAAP are the nearly implementation financing our within And as is of the financing as quarter's we namely all of resulted not dividend. The on capital the growth during self-financed. last As our has XX of The quarter of to

financing pressure furthering on the the result, expanded third cash $X.X and and operating non-GAAP downward year-to-date million a quarter placing have flows $X.X As receivables between and delta during million EPS flow. cash free

million, five $X.X at increase a the but million past set previous quarters momentum performance. With at record the fourth recorded booking (XX:XX), install and Lastly, million business a system view slightly XXXX. subscription of of and $XX.X should line included represents below and will the adding quarter's year-to-date quarter, XX represents revenues, in ahead consolidated of time years, for roughly trickle the quarter an months, average five similar $X development weighted portion in to revenue in new the of XX% TruBridge our bookings recurring third be continue this most to achieved marks with in currently $XX.X base quarter six the our period CPSI, exciting last that was and TruBridge of sales average of over sustained $XXX,XXX EHR bookings, consolidated top our into third is record of average bookings, $XX.X million $XX just the be million high an in with Of justifies revenues. $XX.X booking non-subscription million bookings that lag this next set further a of million for over to five however, This the came well quarter. that a XX% accounts revenue four support and bookings the Perhaps we've and that growth quarter date million previous the the start stabilizing $XX.X record revenue non-subscription our to of sales next mark XX months, a in between agent install TruBridge months. months, six lag at from for our to sales, between to third last in

recorded in of be mostly million four recurring revenues bookings up to from over $XX.X of starting months. one-year next made Our are to the a TruBridge six period

For financial compared some implementation our in with and patient XX nine sites accounting the systems our added Thrive schedule, on customer quarter. depth healthy to went live second

go-lives compared environment. go mix, expect At with in to one quarter licensing in for live As patient cloud nine XX new of XX systems none a out with to and cloud of during model to facilities of to or this go second fourth subscription one quarter's our Thrive went the the quarter. financial live a we this expected XXXX, client accounting time,

mostly increase employee end second capacity. count of of the September TruBridge Our that's X,XXX, was from head an XX XX of as roughly the again to quarter, expanding related

hampered any sales from to Thrive system flat, and to were statement, and revenues sales system decreases quarter. deal income revenues in Year-over-year decline, in were from post-acute new the quarter have quarter flow second the support a sales in Healthland XX and decline sequential third system at sufficient by the of system $X.X the X.X% in as to XXXX to non-recurring on offset or in support Thrive as and add-on in million third XXXX to sequential been of new implementations the Evident go-lives new in X the revenues. X quarter saw the revenues Moving increase improved third X a essentially slowdown related

without the was full growth to cost the the for run for went slight sales non-recurring late quarter, line synergies decline TruBridge. This full incremental X% couple drove of of while growth quarter September stride mentioned the services monthly conversion the of XXXX. until XX% Considering solid and sales with top side, XX% costs measures our million growth record posting bookings upward year-over-year, contract decline continued a second the growth were calls. from costs had containment during not serve support contract second expansion $X.X XX% cost and we revenues. that line included dynamic allowing system down as quarter from entering in continues our past live on rate with that slight achieved quarter we as And system that from quarterly X.X% and top was of third its in Chris remained flat, agent year-over-year with to for the and expected second another trajectory the see reaching This the and support year-over-year. respective nearly a in on represented bookings past third earned quarter, other hitting the XXXX, quarter margins XXXX. TruBridge along certainly revenues revenues, with of On flat margins

With be team. elevated driving EHR at TruBridge our the outpacing dramatic and by the capacity gains of are third integration quarter's increasing products. on position up adoption, bookings our both as by XXXX anticipated influenced payouts third $XXX,XXX TruBridge investment. third record third we've Commission of need of customer recent priority XXXX in margins quarter increases the XXXX's marketing which Product X% given service and and expanded the to support costs. XX.X% Payroll clinical remain flat overall up sequentially quarter our additional due and during to some committed another round of success. post-acute the contracts, for XX.X% improving the and the costs down costs marked drove the continues of year-over-year, levels XX.X%. development were costs certainly in Sales quarter's and quarter TruBridge heavily commission year-over-year revenue to sequentially to commission increased added to consolidated development XX.X% the in year-over-year our acute our volumes and and Leveraging as unique were market last our that sequentially to workflow costs relatively compared costs the current we've provider capacity was bookings, to and we quarter

was separate year-over-year has or were our accounting that health hit in of based of longstanding impact related in sequential held pronounced to payments to costs Year-over-year only claims an million on in this $X or by election factors The single our the a company event even three and spend Our not $X.X during also spanning can Fowler, by or improvement client quarter. report Client XX% and underlying costs quarter's TruBridge of variable from expense more with adds the from nearly great to million increased the advance large the I'll revenues. now a in tax $X.X to us improved Conference, with second other efficiency achieve G&A the assumptions. the our decreased second vacation increase have driven commission increases quarter, largest expense together XX%, third of customers consolidation lumpy mostly result on largest contract annualized is sequentially the due million in that, our both Chris value but the third to decrease P&L the both Officer. in associated was credit of event area. was XX.X%. conditions due and $X.X on the XX% And key the second commissions XX.X% market with with going it's health drop from increase the severance and post-acute were and to overall And and reduction $X.X Operating in our into been costs the year-over-year tax million decrease led TruBridge from increasing Year-over-year, XXXX. conference into $X.X a paid during rates administrative on down to rate million quarter's Partially a decreased acute in rate Improved history Interest General clients, our the effective utilization policy drivers contributing tax to these assumptions. our well be and million National second quarter over turn slight to quarter, The paid one brings conferences beneficial XXX%. costs adjustments now conferences mostly XX%. in to when or expense three annual and allowed things revenue our Combining scale slightly we saw debt. sequentially these in the to our major million $X.X $X.X live million, and Chief second as consolidated a which the the effective rate the client XXXX, decline. XX.X%, This in commissions being quarters. claims of

Christopher L. Fowler

Matt, strong and a afternoon, QX good you, quarter for fronts. Thank on multiple was everyone. TruBridge

outside bookings $XX.X post-acute the also indicator, resulting As in pressures. it also client we for add-on help of offerings client because base, especially of believe progress advance CPSI quite sales a quarter value and our of family base but change our TruBridge the family platforms competitive increase channel of record market companies, our stated EHR is companies as not made to we our for is and acute client during added will entire million stickiness us, only sales be to the because view We that promising, times this deliver proven to natural opportunity be as earlier. within in across proving another performance of CPSI leading our

performance. RCM it delivers TruBridge of levels high value a bookings product of satisfaction While umbrella, clients for not in in Rycan terms is and the terms of under largest client difference financial real the makes our consistently the

the for total what add-on $X.X in bringing the quarter. product for add-on quarter steadily we sales Third RCM came the have sales is of TruBridge $X.X each in seen at which million Rycan to right this million, range quarter,

more of feedback the our another clients analytics year. live very been sparked have patient Dashboard financial care be analytics, valuable on focused end client by Initial has seven provided the was have release, will which input BI and We in of and has the we'll first our of while stages This its wave positive. early next our now release, feedback live focused. base. that of has the Additionally, interest XX towards still our early on progress

approach a taking departments. and are We insights ancillary the clinical development the for specific and phased release to of analytical

management We in expect with in $X year the gain to support. to deliver family companies just over of from bookings came care along coming TruBridge that emergency room traction chronic outside content our later third this quarter. continue million

part accounts our As and market. million for receivable mirror coding care deals our deal $X.X the more a million, cycle management services. of experienced type booked we we to that of These longer larger tend the sales in acute $X involved

we pipeline, positive based TruBridge are the However, revenue. are of on our we managing in come activity trend. on companies the are a that optimistic also about our this outside family sales impact continued from having

they quarter, to QX our customer This EHR build see percentage generated of CPSI for the footprint of XX% revenue we will base, outside as grow. and that TruBridge, we continue

newest customers of We companies to CPSI the to progress continue our in family transitioning TruBridge EHR to nicely Cloud services. terms the of

as offering of this an we the also pleased picking outcome stickiness contributes CPSI to process. While the of up internal are this efficiencies clients, with our we are

CPSI of fall that number million year we of this we beginning have $X.X We final be Caravan in savings XX% completed will Health. have program launched Centriq finally, XXXX. from and the the to of under the And lives be awaiting year, base. fully are that CMS in we approximately this earlier a which partnership annual in January expect client the an with We ACO covered the the finished will transition of the accompanied by by completed client consolidation HealthTech American base within of end transitions the

drive I'll will to the end with Health, by hospital the will to and a financial inpatient becomes active partner value-based generating that map better this in on offered side be year, method measures with outpatient of measurably to available has As healthcare across to by quality traditional delivery well in proactive We're we CPSI rural care David. impact communities results communities. and members as the closer path the Caravan very this health opportunity be With as services transition the setting assess already to will many support. shift for will programs financial who an helped in ACOs savings. to information of Most and and that, proud in help health side of ultimately a country. setting previous the the over it a cost to the ACO exciting improving to we the an us work the ensure hospital, value-based turn is small able impressive meaningful Helping more

David A. Dye

execution are is across The Chris. companies, XX%. now solid CPSI total a last third of Evident, million XX%; this through into and over conversion bookings $XX.X bookings bookings the quarter combined Year-to-date quarters September meaningful year-over-year; period revenue all bookings TruBridge, over growth AHT team and the year. the lead more our EHR for throughout same CPSI quarter The and fully is XX% up Healthland We XX% increase XX, and with several Rycan to including total beginning and sales continue of Thanks, to XXXX. revenue last fourth the translating to growth. expect earnings to

acute our for new and signed similar in performance fourth we our contracts. third market, current EHR sales sales of sales Based the quarter, we current the of quarter-to-date status portion the care XX expect on Evident For in Thrive execution the business, quarter. system pipeline, the

in and with all three both build the solutions. success the Matt our family of As and quarters of And again, mentioned, facilities continues success solutions Boyd, sales to Chris producing is non-CPSI last within EHR the with TruBridge bookings. CPSI record four TruBridge

full the a We XXXX of growth story is and for to CPSI's XXXX growth. largely of expect In TruBridge year TruBridge year-over-year several quarters. sales, these of the bookings approximately XX% for MUX growth accelerated to new system next combination summary, remainder revenue translate and implementations

value-based will models TruBridge move healthcare we to to continue as accelerate beyond, believe For XXXX the and growth and post-acute acute delivery.

increases care Intelligence, And offerings. Business continue hospitals acute New we post-Meaningful catch sales system Health sales to Use sales products post-acute AHT as solution replace looking believe our world. grow will and aided Analytics vendors. be to the Pop legacy by marketplace to will from the with major are Add-on our software as to up the pipeline experience poised growth

in markets call significant for believe to Donny, within English-speaking in Caribbean. continue for the open exists international particular questions. provinces Evident and please opportunity We the several the Canadian in

Operator

from first our with comes Naidu line like Looks of the Certainly. Mohan question Oppenheimer.

Your please line proceed. is open,

Mohan Naidu

guys Boyd, receivables. Thanks biggest strong, for at are these questions. driver you have biggest the But, line and three demand and I for also taking penetration which private are the ones between know, product I you what's seeing the growing my products, TruBridge seeing pretty guess, the on if you Rycan, pay look you bookings, which demand guys for? those?

Christopher L. Fowler

the in plus that Chris. million we Rycan increase quarters, last (XX:XX), lately this several quarter-to-quarter said couple But seen back. look or the product, dollars I $X.X thousand as Mohan, steady real The the has for hundred as minus at we've of very the is Hey, is through ARM to relates the a comments, been up the their these that with that it billing to cash. the for of small stay for is keep think complications that as and complexities service. and staffed driver hospitals continue just just the on stay top I ever-changing and And regulations

So, reflected got ARMs bookings, the if and receivable pick I quarter, the to in we that's be million, it definitely that the service, was that's this big – one, accounts the the would and have coding. deal $X.X

Mohan Naidu

XX%, guys disclosed you XX%, still was that I that is within in segment that And about range? think that the Okay. penetration

Christopher L. Fowler

pretty consistent. that's Yeah,

Mohan Naidu

at you should can add that within profile of to the How what's and you clients, look us client? can you need resources, a sense the margins margin as about a with but give you TruBridge think mature we new add also some

Matt J. Chambless

in Yeah, And exceed that right? kind we margins Matt. TruBridge And volumes that capacity, margins a out, you think a to XX% Mohan, this to historically we're it's of continue say, investment on play capacity, XX% kind look margins, with lower depending and dip investing a of or if So, XX%, slight once I the see between, XX%, catch down in ride, that can range. expect we'll it's quarter getting But XX% at up would the on up roller-coaster XXs. in then where periods and this growth quarter. whether down is

Mohan Naidu

Matt. Okay. Thanks,

Matt J. Chambless

Yeah.

Operator

your for you Thank question.

comes the & [Jeff Garry William Please Blair question Garro] ahead. with next (sic) from of Jeff Co. Our (XX:XX) go line

Jeff R. Garro

hitting talk some It ratio (XX:XX) the spite the guys, forward, and some afternoon, taking in the – of X.X growth discussion and thanks sounds amendment for also David of XXXX, going like financing. of the debt of questions. relative the speaking Good Yeah. today, to on that and times in XXXX discussion the

going the Could little acceleration that require timing growth. speak to see stronger the to you growth times hitting that when ratio, inflection So, some a we of X.X bit growth forward? discussion, that's of going in

David A. Dye

to Sure. year got going we obviously, – we're Generally to speaking, close strong. feel the can. we out We've like

the that been we've get interface – proceed delay quarter lot quarter the that, fourth scheduled folks I I and good are or year think, we're said for in to to We've even summary, and and little got some of through with through ahead the them XXXX. we're MUX their and business new MUX that in said well and the in a going a and keep a now standpoint as XXXX. user mean, three then, from were installed I with that entire install maybe a we forward, benefits the we cautious/conservative in beginning that encouraged of wanted thinking that bit of the moving bit customers fourth and functionality been – that the have by maybe even first go we've to in late there majority they in decided to our of with XXXX amount encouraged so dates certainly that or by that, that standpoint would a and quarters come have certainly

begin that look say for look least, of the So the see when I fourth this answers we question sort with we your think, that year, at growth accelerate. to in of summary, we now if quarter can to

Jeff R. Garro

implementation very certainly is momentum, seen continued helpful. be the but in TruBridge there call that in of timing? of that or pipeline should Dave, out has terms anything in Anything, That's the schedule of aware terms to we

David A. Dye

to lot, we've quarters in lot with Yeah. a four and we've Matt been go up certainly we quarter have did specifically there that within all have done ramp big the a lot quarter booked live and last the third third continues and we pretty of in with three that obviously TruBridge, TruBridge, big got late one mentioned, so of it – a we for the noticeable that had the my fourth we comments quarter beginning tail you'll a TruBridge well. fourth in and the what prepared see beginning But quarter, think the a beginning quarter with of the fourth third the we with mean, in in XX% in with in certainly, sort lot with I have about uptick we growth fourth quarter, the now as again, the starting quarter.

Christopher L. Fowler

December $X.X Hi, get it's to started we that going this in in too booked deal quarter, (XX:XX). million, Chris, is that and Jeff, one this thing, other the the past

So, these obviously is quick, the pretty on the tail it's it. XX-month but got on conversion

about excited into we're fourth seeing So, convert the quarter. that

Jeff R. Garro

And those you've their little various sales hear deals. previous some than have often the the comments the more vocal more is bit on a a about months, more about as with to six rates and shift? Great on me, to cultural who company you're over little the the on just to marketplace. How more question and bigger from of how it. love maybe that three but not with would again Interested seemingly wins hear that talked win whole your broader team, company little seeing about competitive competitors a changed even that calls, to see impacting environment. Got maybe bit the not one in discussion bit the last

David A. Dye

a names I an few about products competitive the (XX:XX). where hell. seeing little we've Obviously, signing. where talked calls. the been here I've been, say, field XX I'll definitely and terms entered time of has we're competitive, us, months stable have as even over you're that changed every it have this with and we is bit, especially valuing is work recently in deal deals that's the market previous think for the us that's And on it's always years, every last uptick a that

the MEDHOST, compete things, of Some well anymore, focus they've We with on deal that as in pressure think don't that'll a basis of on we we on the over note that compete Occasionally, regular increasing obviously last continue. or several athenahealth, upstream essentially that's traditional with moved the we and small vendors them the every that exist they've we're moved Cerner competitive as or it. are virtually occasionally from and market MEDITECH, well. seeing several decades now. to calls for remain last different space We've made either

Jeff R. Garro

on vocal all comments customer more again, the delivery the And, company, any whether just shift within about your within is any a wins little kind having being and that Boyd, R&D, within teams? bit of cultural positive

John Boyd Douglas

up We're Yeah. now. pretty fired right

Jeff R. Garro

guys. That helps the questions, taking for Thanks (XX:XX).

John Boyd Douglas

Thanks, Jeff.

Operator

Thank question. your you for

from Please Baird. ahead. comes with McBride question line of go Sean next the Our

Sean P. McBride

the the congrats sales taking on continued questions Hey, thanks for and success.

want question conversions. I ask to a So, on the

have So, hospitals converted done in, through more two you basically, previous already gone and the than you've years.

following these So, hospitals on how been the some the that especially considerable considering going through? these are can financial hospitals give of just doing you've process, color you how issues highlighted have go-live some

John Boyd Douglas

going (XX:XX) sure, not those but actually us, the frankly, and our hospitals installation teams, about if our go-live of really, certainly, – they're quite pleased that's net we're financial well. these have of installation conversion you're with real But talking doubled teams with extremely challenges, we've nothing are some Certainly, to I'm our number, going new installs, or number dealt new always that. new teams, new well.

a our well. and some some implementation we received on those we've site – our of we customers we've from more with procedures how been conversion changed and the recent send well the that, by done people we've perspective number of both that's efficient approach as gotten and on of things One from and

teams point. So, at really we're with pleased this our implementation

Sean P. McBride

I in-patient then, environment in then but more much appetite looking touch Okay. Thanks. the earlier there, market the is a that to at want and space. bit there, timeline white from what different interest space? little much an are space on you know and how just of post-acute terms the and there And competitive than

David A. Dye

where now, would down of we (XX:XX) to we're that And appetite R&D virtually equates of not say, taking The that our because it's exactly market will We market investment going very there couple kind know on quickly. was product accelerate acute by care it's occur. that don't the advantage of when a think active. in ago, Yeah. years opportunity I doubling to

were about market or similar to in away the sort what acute Our we years that guesstimate so a market two is at being that we're was of care Use. that when point Meaningful (XX:XX) world from in

several a of got customer down this sort from it AHT as summary to MatrixCare, primary that's obviously see just and It's others, a as we're we now. very great say and a new would competitive we double as continue market others, do known sales using where we is product. there. stable There So, but extremely are the The well. few job said, its there competitor I right is for the of PointClickCare. I a to a downtime And base, standpoint support

Sean P. McBride

Great. Thanks questions. for taking the

David A. Dye

Sean. Thanks, Yeah.

Operator

for question. you Thank your

with from Our next of question line Please comes Gene ahead. Dougherty the & Mannheimer go Co.

Eugene Mannheimer

congrats on progress quarter. Thanks. Good the afternoon, good this and all

are the that you're is post-acute that Just sure a follow-up on that happen? risk of there I making some the is mean, the I but investments here you're acceleration there heat suggest some there to I of to doesn't last up? market timing, in of mean, if that question, that any appreciate not growth, or market, guidance anticipation going in catalysts

David A. Dye

always facilities in light-years that terms borderline Gene. it documentation where we're they're inventory future, processes we at the and are the way and care be automated there's look to think But in in thinking these guess, here. some in So, is I risk, going of world, at Yeah. long-term the their I near the point we are right? that behind fully acute relatively

it happens years, happens it's happen. happens So, it if going it a in four in year, years, in to two

we a we're about years from terms that, our little be we longer with we're than it'll on of think thinking and of if I kind planning two in and are care. thinking now, don't but really long-term, development, where it's investment

Eugene Mannheimer

good. Very Okay.

Christopher L. Fowler

it's Gene, Chris. Hey,

that, are to to communities as the also reimbursements to of the it acute about a going kind takes think be add-on we're that looking to going from if just risk the Just you the from post-acute, valued away is some time play and how and add well. there another thing the at forward the of

going opportunity – EHR that the from investment think be the So making acute there's do us while forward. going net standpoint, that space new, attract to to we huge are for inside I also

Eugene Mannheimer

seeing on And topic the selling outside success yours, where of of ,Chris. family, CPSI EHR most of sales the the what's Thanks common sense. good outside TruBridge TruBridge? Makes you're platform

Christopher L. Fowler

Right now, MEDITECH. it's

Eugene Mannheimer

Okay.

your you Matt, EPS Okay. that EPS? any, can the impact, does us, for And refinancing quantify, if Excellent. on the

Matt J. Chambless

was Gene, amendment? so credit the I in the so guess, itself there actual the card no or impact. you cost Well, the of softening rate from amendment of asking Yeah. the are

Eugene Mannheimer

rate the Changing forward. and mostly going

Matt J. Chambless

under taking a Yeah. once The pricing, $X.XX it shakes times X delever below really out in advantage the changing share to of we we just can start the to reduced where rate, and quarter.

Eugene Mannheimer

Okay. Perfect. Thank you.

John Boyd Douglas

Gene. Thanks,

Operator

Thank your you question. for

Stuart Our Litespeed ahead. of next Please question with comes go Partners. Goldberg from the line

Stuart Goldberg

with It fourth dividend A quarter more Can forward XXXX? we new to? questions for I Good this I revolver to the quarter. we very you do the against that don't and money question. Are have we we I the And maybe money, then, strategy, much. doing address housekeeping that? of translate couple in you. have borrowing afternoon, guess, borrowed like be going one guess, other looks How Thank gentlemen. you going

Matt J. Chambless

Yeah.

XX.X% little XX.X%, up the prepared on on touched and commitments, they've when paid was we at that you up the if amount that think, mentioned bit the free you we a add in XX-month somewhere add outpaced I somewhat. dividends, commentary Stuart, debt flow what, So, and somewhat, it cash that trailing we

out kind of during So, we on cash. paid the we the last crunch a on that heavy call, paid quarter the it dividend announced third the did put we third that out short-term in or quarter,

the require past a into step it the So, during quarter. revolver did

both And our cash so and and about that's referencing what two freeing we cash debt you're of dividend meant largest look taking payments, when the talking going of those the uses significant are amount a payments at and forward. keen somewhat of tweak we the flow a up free

Stuart Goldberg

cash you're payout I agreement, have it – correctly understand cash going though, a going flow excess mandatory flow. to excess XX% the new have if you're And to at a XX% under of Right. or

you amendment paying be debt your to your flow. dividend going are So, part cash cut dividend, this – excess the down as in as though, of because includes more you payments

degree, washes So, other that rate the fairly have do of hand at one I XX%, accurately? kind to some it's of

Matt J. Chambless

balance just is repayment to the – cash from XX% us flow just sheet. I on the so that gist free guess, Well, up de-incentivize to really cash stacking of the incentivize or,

intention we're which cash or if banks. out And formula, dividend. that filed the X-K the in in calculated a the the if on after the on to balance you spelled we prepay X-K there up So, sheet exhibits that XXth, the that is the the there is notice requirement stacking is in that's

restriction further any on dividends. that The is place sweep doesn't of it spirit So, simply cash. sheet to balance

Stuart Goldberg

that it my mandatory understanding payment. it's a But Okay. was

Y, let's Y, say, you So, if to going XX% difference have the dividend now your you're dividend and, cash is instead half you're of the and that have that of cutting into pay free fair? of sweep, of is flow X to

Matt J. Chambless

it's our mean, which in in our I priority capital keeping first to with allocation strategy is delever.

Stuart Goldberg

last level to that strains million or because to kind it a at going I'm XXXX, quarter. obviously, figure were receivables the is, by Okay. – one we forward of And going the once forward, quarter cash on have other financing again, of trying to $X.X of million and quarter, Are question that's I going fourth higher? $X.X well. I see the with is use going be this mean, out moving then cash were as they that's,

So, the you've receivables. financing but you cut got dividend,

we flows that as far should financing how forward So, look as cash at go? receivable going

Matt J. Chambless

flowing of back demand pull arrangement financing model, initial created financing outlay. arrangements that into that be from of it'd our kind sort up are cash for in build Well, mentioning relatively short where And this new entrants a of a so, new collections market the whether a SaaS market the a financing that to some the some the receivables is demand, kind it's of of solutions, until period have dynamic, limit or going financing for time base worth the customer in probably capital end. start of on perpetual license really of

on the so, that's sparking a as much balance phenomenon, lot collected And new end. back a sales of which our without volume on system is sheet relatively the new

particularly additions should other of start the start in we're Meaningful we that with you up Use the collecting as heavily way. Stage the collections X those receivables, XXXX, our dynamic financing applications once into see swinging starts So, on seeing catching back end

Stuart Goldberg

Okay. about receivables, Q about any on is anything so, question, but before, talked those Fair or the then Matt, last in the debt seeing are in out, we And increase this what bad or I've expense decrease provisions? enough. not

Matt J. Chambless

material. that, say I nothing I'd mean,

Stuart Goldberg

Thank the Okay. you. cleanup. for you Great. Thank

Matt J. Chambless

Yeah. Appreciate it, Stuart.

Operator

question. appears your for have Douglas, Mr. you no further it Thank we And, questions.

So, I'll turn it over to you.

John Boyd Douglas

a Friday We Thank on you. everyone appreciate your call and a Thanks good weekend. Thank you. hope and has in being today. the Great. interest CPSI everyone for good

Operator

for please conclude for participation thank you, ladies conference the your you and disconnect that you does lines. your Thank gentlemen. ask We and call That today.

John Boyd Douglas	Computer Programs & Systems, Inc.
Matt J. Chambless	Computer Programs & Systems, Inc.
Christopher L. Fowler	Computer Programs & Systems, Inc.
David A. Dye	Computer Programs & Systems, Inc.
Mohan Naidu	Oppenheimer & Co., Inc.
Jeff R. Garro	William Blair & Company, L.L.C.
Sean P. McBride	Robert W. Baird & Co.
Eugene Mannheimer	Dougherty & Company LLC
Stuart Goldberg	Litespeed Management LLC

TruBridge (TBRG) 2 Nov 172017 Q3 Earnings call transcript