CPSI - Earnings call transcript Q4 2019

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Operator

Good afternoon, and welcome to the CPSI Fourth Quarter and Year End 2019 Earnings Conference Call. [Operator Instructions] please note today’s event is being recorded.

I would now like to turn the conference over to Drew Anderson. Please go ahead.

Unidentified Company Representative

Good afternoon, and welcome to the CPSI Fourth Quarter 2019 Earnings Conference Call.

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

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

will I call Executive Please sir. ahead, time, President over go Officer of this Chief Douglas, Boyd now and At Mr. CPSI. to the turn

Boyd Douglas

afternoon, Good everyone. thank joining us. you [ph]. Drew Thanks, for And

sick Joining our the Growth on Fowler, comments, conclusion Financial the Officer. Dye, the with of be on Q&A not our will as is us call out At flu. Chambless, today me Matt Chief for join he’s Officer Chief Chris will David the prepared today session. call the

looking well more nearly is the our our outside in delivering price we than number in and year system around as solution. our the worth the the US. single We’re very strong a in of million of shift totaled pleased highlight our XXXX average with XXXX. also that half as we $XX bookings of make seen is growth over the that half optimism increase million the progress increasing the on half on reinforced in contract to the increase continue levels. In opportunity second second bookings An and at competitiveness performance believe being XX% of which software $XX competition second by in as our the product year noting fourth we’ve driven important an it quarter, platform the was

$X.X EHR Caribbean signed to the Caribbean first bookings in added We of acute in and contract million XXXX the contract quarter a XXXX. another in

Sunnybrook In pursuing solution. fourth the over create to system XX next addition, first XXXX during kind, the years. Center of its announced Health Canadian prospects our to with partnership the we five market strengthens replacement our of Sciences hospital quarter for Canadian-made EHR robust a information This

to another realize engagement million Finally, our our while patient business accelerate million Real XXXX health had EHR our services will impressive it where Canada, to Health in solutions. GRH’s TruBridge year-over-year existing footprint in our revenue, government in strategy a from quarter interest could increase bookings, Central X% with take genuine further $X.X over help time Including Get XX% we $XXX in year-over-year. a seeing increase agencies total growth prospects. are international and

momentum. sales with interest SaaS platform Our our combined build to which EHR TruBridge offering continues

XX During XX to converted to XXXX, expect we deals nTrust to and customers XXXX. convert existing we EHR packages nTrust in customers

independent cross-selling CPSI EHR's. We post-acute use to don’t into less refine and EHR services that approach hospitals continue beds basis in acute TruBridge XXX our our invest to and than reaching to with

three growth over than in addressable of excited total years. realizing increasingly the Our of prospects value cross TruBridge $XXX prospects about real market and market growing hospital confident TruBridge our the a total this net here for we’re client in is more million about sales estimated XXXX. we’re next from base and $X that we an services opportunity long-term segment in new With latter market billion target, the for

which at reached twice XXXX close high allowed we leverage that strength flows from XXXX cash to further highlight brought of year-to-date ratio. important to million for and $XX last This One an [ph] our as in XXXX. total two delevering nearly existed quarter operating times all-time cash of the was flow quarter amounts fourth during

leverage and cash our are and available at in expectation position level an operating with comfortable of Now strength terms a more deploy in we continued of to capital enviable flows, opportunistically.

long-term capital leverage set our surpassed confidence been value. drivers discussions CPSI is management The revenue board XXXX with EHR remains at reaching in regarding the allocation ongoing those long-term US model, driving to that market The on of late and TruBridge subscription we greater than market of for a Real targets emphasis continued Health. our profitability ourselves conversion a billion, and for potential an addressable include; the a outside including the on there behind growth level growth robust have are for namely $X and X.X our shareholders. and shareholder focused creating Get specific opportunities strategy to of our total times

cash sheet capital healthy more that strong flow a finally, and opportunistic a strategy. And balance allocation support

these With to revenue we a X%. rate X% organic average annual of growth mind, recurring achieve in to drivers expect three-year

growing predictable a arrangements. business we stable and customer meet We’re revenue more as focused and and demand services for contract on recurring seek build new to

XXXX, revenue, with XX% This in in In their than recurring more at EHR near new in will sold from larger customer on have SaaS XXXX. will term. positive percentage suppress and to but preferences a slightly EBITDA rapidly of particular, in license to shift XX% impact have a XXXX of expected contracts deals transition margins XX% SaaS SaaS

like call the that, With to I’d to Matt. over turn

Matt Chambless

our of beyond. performance, high the brief Thanks some On mix, for TruBridge including and walk the shared flows. Boyd a the through I’ll XXXX detail fourth everyone. cash additional level some results quarter, SaaS bookings provide of quarter bookings, in on afternoon, outlook and operating good Boyd quarter our financial strong a today’s overview call record increasing and of growth highlights already and for continued

$XX.X EHR bookings of both increases sequentially the system in from million bookings XX% of over market. and and fourth comparable sales XXXX. million XX% our and net driven XX.X% sequentially right So the impact by bookings quarter let’s increased year-over-year and the highest total of first for bookings; new current category. the quarter of $XX.X into jump bookings of of the support both million years saw second support $XX.X for quarter past and $XXX,XXX within the three the of high Absent mark the MUX XXXX, sales System

TruBridge posted of and company highest bookings of at Get arriving in $X.X million, quarter second traction engagement XX% slight outside $X.X bookings year the million quarter’s history yet above million the $XX.X propelling from the quarters $X.X the and another in Health which stellar customers’ third were period reduction from of bookings. with solutions EHR traditional Real bookings fourth last to this gain adding from growth of base million our the was patient a

included information release. conversion and have quarterly we revenue that tables frames on composition for time bookings in the Note the earnings to the

formerly provide the in prepared and commentary same now the direct care be implementations so in derived we gave commentary on tables regarding So Along remarks those the you the earnings historical release, provided relevant metrics. will lines the we call. won’t I our net new acute for to

of facilities environment. a drive metric, for solution near XX in first XXXX, expected With SaaS in quarter we with client Cloud live new outlook anticipate term go live our eight to going or currently this with regard the to

net revenues Turning year prior line our the in efforts. control with were TruBridge to for non-GAAP despite results by the the X% income growth EBITDA measures cost in period, reduction driven affectively financial a quarterly adjusted and and

year managed X% a despite For reduction increase full non-GAAP EBITDA revenues. similar and adjusted XXXX, the income in X% net we to by by X%

earnings strong and XX% sequentially X% up patient million showing were The the slightly contributions third sequential they offset work sale $XXX,XXX from in posted by lowered up discussed in The call. at large of down engagement XXXX. fourth length GRH of opportunity compared over quarter which driven was results of by posted was strong solutions XXXX the the TruBridge revenues fourth GRH’s quarter to on for we the AR the $X.X quarter. revenue improvement last

at against XXXX, gross third Excluding X.X% specific TruBridge fourth we growth increased increasing headwinds of for XX% few of the the throughout margin XXXX, fourth $XXX,XXX gross quarter the margins volume quarter of TruBridge without absent growth a revenue these year GRH flat the declines quarter would organic fourth over that fourth X.X% past posted customers the GRH the impact TruBridge noted quarter, during were headwinds the have the fourth created during for relatively revenues quarter remains XX% during of quarter. compared the margin to XXXX. the TruBridge from quarter TruBridge’s the XX% of over

from $XXX,XXX but the opportunity by sequentially, of sales $X.X as million shift SaaS fourth XXXX revenues decreased were mix. pressured Next, non-recurring quarter and and in the MUX revenues down the of the work lack increased in system support

arrangements have SaaS of in fourth XX% off, fourth year-to-date XXXX to XXXX XX% new SaaS efforts our for quarter net opportunities our the EHR compared into the mix revenue more Boyd of XX% As of full recurring X% and quarter to year. mentioned, the respectively mix with and for and the covert paid

within decreased million margin million. gross the implementations non-recurring revenues revenues headwinds line in margin new margin is decreased XX% XXXX’s, MUX whereas $X a those with relatively the net against Overall were fourth from third $X.X for in make non-recurring quarter margins. while the revenues only $XXX,XXX of quarter to quarter and revenues during lower past decline mix the standpoint non-recurring From XX%

million drive of our of quarter the revenues. and to while Moving in and Sales fourth XXXX design non-recurring to quarter GRH. support mostly employees were onto changes quarter down to marketing our were flat and and sales flat planned million operating decreased the health providing their down offerings commissions addition sequentially expenses, sequentially product XXXX benefits with families. employee XXXX mostly also due from development sequentially from of mostly system and the the $X.X from administrative fourth $X costs XX% in were up but as cost cost intended the to decline still and down X% cost fourth General the benefits due competitive of

quarter Lastly, on effective the tax our income rate during was statement the XX%.

discrete forward, effective tax normalized continue Going of we XX% expect to for items. XX% rate to an

our quarter million. recurring abatement flows coupled on XXXX. the with fueled revenue operating just drag were flows the the record base, during yet over $XX that financing XXXX growing and Lastly, served This was receivables of quarter most cash fourth headwinds of by from stable cash

strong international TruBridge board revenues have to up stabilizing of towards led decide discussed shipped growing in which a have I SaaS and revenues the guidance. increasing opportunities annual for made allowed competitive to total the almost targets and for in recurring a bank and flows reduction year. XXXX that year represented off flow the cash for debt million for for This net double million EBITDA in year. quarter the adjusted $XX strength and the of cash XX% trends that The Full of operating reintroduce $XX and and confidence XXXX bookings, revenues Boyd were nearly and management over environment XX% nearly long-term

outlook calls to high EHR expansion. we three-year and moving we growth driven believe annual Our organic towards could reach which of as in period continued more exclusively recurring X% international as a third revenues X% further TruBridge SaaS to by as work towards in SaaS for average forecast contracts the growth over XX% shift arrangement

recurring low uncertainty and about that pace For XXXX, near the be $XXX term we the million expect $XXX total they of to revenue to end anticipate mixed of of significant the million shift. range as revenue SaaS growth towards remain

mix work term On to us to the of XX%. EBITDA XX% adjusted range returning term. in adjusted XXXX the near the reassess margins envisioned But margins we SaaS XX% toward shift margins a near caused goal goal of stated result, margins over we longer by this a impact although land to a previously EBITDA term of XXXX, to XX% as has expect within

to of flows EBITDA. cash we In XXXX roughly cash expect adjusted represent to operating terms of XX% XX% generation,

quarterly we a result general revenues profits from lumpiness quarter XX% will of expected we administrative Finally, and seasonality the more to mix Headwinds could GRH for providing remainder and the cost. that prior Thrive SaaS of sequentially net muted go-lives keep incremental of an expenses show and expense and in year, shift guidance, mismatch new certain versus revenues both expect the total although meaningful the be recognition won’t to while will the year. revenue the next

more surpass of XXXX, In during with existing end foreseeable X.X our opportunistic our we for that flow times times capital the following available target past the cash the leverage two and The shared has priorities. pursue target in as and to capacity cash allowed near year XXXX, significant future with acquisition. strength continue achieve leverage us we flows under expected Healthland now of strong generation ample facilities, have allocation the credit of capital to to

an potential Boyd board As value. capital continue mentioned, driving of with our shareholder management to our emphasis and monitor on uses

of beyond. what proud we’re we accomplishment XXXX and At during close, for excited XXXX and

his in articulated clear gradually in long-term remarks a ability our have growth feel with and targets deliver We strategy revenues and on increasing adjusted Boyd recurring EBITDA to our confident opening overtime. for by

like line we’d the open up And with that, to for questions.

Operator

today’s first George Deutsche go question [indiscernible] [Operator Bank. Instructions] with Please from ahead. comes

Unidentified Analyst

I going to QX of expense kind QX some to know way year-over-year between and but in versus the or revenue you versus guys explicit put any the goal flat post there aren’t QX around pull expected frame guidance, is mismatch that’s forward? up the

Matt Chambless

every George into comp audit, Yes, fourth for of the mechanics the XXXk very time proxy a quarter year, tailwind of quarter first year. legal thanks makes that to quarter [ph] a our year moving the so of which us program tough little fees which vacation bit every result call. of of [indiscernible] our fourth and joining receives match always season, is with on the utilization The for accounting expense in in

items and three somewhere an those million $X.X incremental $X G&A should cost million. So between result

Unidentified Analyst

it helpful that’s kind think is long-term to anything and end one, little the of provided just and particularly beyond that relates it’s you Okay, to bit XXXX. little I guess the the accelerates the the like come up of of going looks back of would growth be as softness like comfort guess I a is pricing at XXXX. going gives kind a picks seeing is, TruBridge two and given, sounds I you that you. bit in should business in super target ask is because services maybe long-term we what XXXX number XXXX I it you’re It then Thank of long-term that guidance. component low guess, questions there to guys growth growth of

Boyd Douglas

then even rate SaaS primary to in three-year reason increase low so of XX, come the us revenues those recurring the prolifically and the Yes, have then we’re George to give revenue we from is growth that and going XXXX and to continue in up tailwind in sales the mix as XX, target or oppose better that that XX outer more previously is will recurring recurring end guided SaaS to towards years. XX expect in as we revenue a the be build XX new XX% those from XX%, licensed, to accelerate

Unidentified Analyst

mix. where versus mix mind. we Maybe It’s I’ll now just just ask the you if – one kind of in more don’t Boyd, SaaS are the license

Matt Chambless

this George is Matt.

of were the we is year in mix we fourth really quarter, closer big opening months, the to XX fourth like last from and at XX% does in take look I XX% the think more mix [ph] mentioned moment that increase kind closer around see we in quarter for what’s bookings here is with the I right overstate permanent past is so that SaaS the to forward. in arrangement of we somewhere a and only similar then see remarks and now booking came SaaS split year point, SaaS a look it that that in it which last shift being from kind going think a that slight standpoint, this a lean pipeline this is XX-XX do should forward, what the CPSI’s that towards going is we to we history

David Dye

add George, I’ll this to David. that is again

XX to prepared in base into We expect in that us increase recurring customer XXXX the well. for will help in from XX and his comments, ability which grow current in XXXX as mentioned sales the to our as revenue accelerate we nTrust XXXX Boyd to expect XXXX

Unidentified Analyst

number comments. the for appreciate color, my Thanks. in missing guys. bad prepared that’s the And that I Matt,

Operator

Please & go Jeff next William our ahead. And comes from question with Company. Garro Blair today

Jeff Garro

more from me outlook. a the long-term Maybe on couple

recurring the total maybe the further little portion go point is sustainable to be a you on amount revenue so mix, color basis? then non-recurring more forward bit hit percent for of or to to deteriorate it and a expect that dollar on or whether that Your expect either arrange you a

Matt Chambless

horizon came zero XXXX. amount, increasing over mix anywhere three-year XX% in recurring we dollar think at take as We want overall that by what to I the the but XX% quite we XX% end exact and timeframe. to three-year the a in to in as revenue, around the So horizon over of is don’t to far three-year see on we right between look

Jeff Garro

to in the how And the piece the towards talked volatility a in might layers that think some maybe from dynamics term. discussion non-recurring hear bit Again Great, near more XXXX as towards piece non-recurring XXXX. you, and just on impact want progress about long-term then to your add we continued beyond you margin goal to that helps. longer term March in about thinking margin the then XX% little

Matt Chambless

towards certainly the but see with that seen, more we’re volatility, this forward. so, of us until that here evidence some to perpetual alleviate volatility with of definitely from reach there’s that completely us XXX% should we’ve to be here Yes mix until that stay away is a which piece right SaaS We lumpiness we is here going that XXX% model tilt part with the certainly the some of to non-recurring a SaaS. the and still but license going you’re

Jeff Garro

and grows, we the as about subscription, that business? one scalability the the of recurring piece If in TruBridge can focus recurring from and the on piece the business and margin that the do for of part that follow-up turn entrust some portions gross margins on think together more to combined Great the piece me and you efficient we software ability How as circumstances. of more of business it front. expand

Matt Chambless

the will we this term three-year to it the unfold periodic three-year this this at a in timeframe, shift value unintended of see mix, and non-recurring The this now. get may then revenue higher long-term margins at margin SaaS, consequence is the does two especially that from past is the margin obviously out this expand SaaS short-term horizon that timeframe we looking further of being that, over and up and once slightly with significantly least to the increase going XXs we three-year three-year on slightly it towards higher to of where to right a ability into high profile above The that neutral end end get kind replace on range we’re dynamic recurring the actually perhaps high the increases.

Jeff Garro

Got taking the question. it, that helps. again Thanks for

Operator

today go comes next question Wells ahead. Our Jamie from Please Stockton Fargo. from

Jamie Stockton

remarks bit it prepared result, little think that first being them, a I as a that I a present relatively in of you’re seeing things and assume should about on we as Boyd’s little better in guess remain pricing not maybe changing the Athena kind dynamic the one, just to competitive really outside is was of marketplace a the comment stable?

David Dye

this in think I several, out It be here. way space for David say a question business. we’ve that is less last activity seen, as point of primarily right the lot the I well. and them there’s interested your move that at the appears their We on would market the new framed them last from to so either, of you to from in call kind going actually you know yes. small much Jamie, Athena that is to but Cerner remains on in affirmative, also seeing now we’re XX% the not seen whether competing over and as It’s us plus is this alluded hospital continues. of market,

Jamie Stockton

quick then a ones. more couple and Okay just

away that brings just know that kind that, Real down of of sounds business would sequentially lump sequentially it George maybe great? a TruBridge touched QX, what see Get we line about we bit a QX your and seasonality top already but little of revenue going core there So on trending Health do like anything should on think TruBridge expectations there in Health were be Real maybe I one-time the from Get in how was revenue

Matt Chambless

the So we days, over growing from close pipeline sky we far Jamie do XXXX of non-recurring XXXX, on see and will lot least – headwinds but to is or the yet there. still just definitely that and at the for next as from GRH, the business can has reiterate what side be the reaching there subscale of as we we is terms in we’re a There’s the think XX to there. the long-term that some maturity limit about relatively this revenues top

David Dye

of a seven XXXX, of confident had now first continue XXX the To is we add job had space that turn have we’ll and start with six we way sort our can months back EHR XXXX. we and success so we half that TruBridge that. the that good that half lot regard seeing on, TruBridge in half acute-care to we Jamie. with the that and bookings half The feel to especially the sweet continue with obviously with is, We of back spot of of sort a into TruBridge sales in XXXX going think continue. XXX can do of pipeline. typically The The is from strength return deal it first bookings those we about to of really the XXXX facilities into to for non-CPSI [indiscernible] look that in of to in to

Jamie Stockton

for last in Matt my a but for then Get it how Health did you’ve and or what what what as bit, XXXX? articulated kind it, as mean, for maybe Real in feel do of little have been you of concerned built conservative you’ve XXXX. is guys like you to [indiscernible] I And compared aggressive kind far question

Matt Chambless

have appropriately of out revenue Jamie. so that we the lumpiness Yes, the there. just of a the we’ve provided. we gave of uncertainty that expected we business look GRH, Holistically like are range at for for the with the feel range accommodated that a outcomes that the the opportunities we live year, size take when given Definitely range you’ll and that

Jamie Stockton

Okay, thank you.

Operator

Sandler. Piper go with Wieland Sean from comes Please today question next our And ahead.

Sean Wieland

so contribution of business one-time from it, I EBITDA in remarks, revenue have much the might buried how all was but it prepared was think and was missed what that year your versus that full have I Might and one-time.

Matt Chambless

EBITDA XX-XX. brings GRH were of about impact GRH $X.X the of $X.X quarterly revenues Hi effectively revenue non-recurring to the about $X.X GRH million Sean, recurring from neutral to versus of of fourth million revenue and that full ended a the adjusted million adjusted quarter and actually EBITDA for year we the with year with split

Sean Wieland

wouldn’t to and that. that, Okay skew unique something will there towards that recurring, that why more business is continue about prevent

Matt Chambless

licensing through have place we already resellers contracts in so primarily place. that is existing model the it’s there primarily have So perpetual selling arrangement, up in and through customer

While we do existing historical kind road revenues the the SaaS down see kind follow of contract opportunity potentially for more type up subscription these so to customers the [indiscernible] the or far. explanation to of sells results existing that, that seeing push the at least we’re

David Dye

the to healthcare so here. expect to that model, of David Health half consumers revenue around ORP that SaaS we mix. overtime rollout do their or recurring Real we is EHR nationalized to business than will have, [ph] population, for platforms calling More opportunities more similar transition system Get of the a our right the in a have patient opportunities that Get Sean, Real want we now that Health primarily engagement significant that the pipeline to

Sean Wieland

bigger? Is Okay, Get you Health for going something opportunities? of around and potential thinking most doing forward organic to you’re a important that thanks kind capital. or about your you’re Real to use when in comments What’s evaluating deploying template

Boyd Douglas

stock especially talked year. that and cash table on flow again more capital or are everything expecting tuck-in that into variety a One allocation this for we’re with of that of management the things the a tuck-in in board there’s there’s about looking the and things as frankly it’s opportunities whether one opportunities but also past, is things the the obviously from buybacks we’ve perspective

Matt Chambless

the I two we half follow-up standing changed have and and leverage, on last debt prepared in and position right allocation bank situation we now and nearly that as both I’ll [indiscernible] a ourselves lever million over grew it capacity consider to the do on a remarks remain say determine and our around capital of X.X that, enviable be up and to and that’s years. equates good when to in Right EBITDA that’s $XX Boyd capital. to times commented now of lot comes

options. because cash flows effective our which considering cash that understandable intensive capital to operating add free we’re You that all flow, considerable we’re equals it’s not

the We continue to think complementary acquisitions, that tuck-in enhanced.

Our with management offerings consider make the service that assuming board play and any disciplined future the have the product also evaluation activity But a continue we will M&A sense. and continue that other that to with to and pursue that we’re and we options share role. repurchases sure makes

Sean Wieland

thank you right, very All much.

Operator

SunTrust. comes next question Our with Draper today from Sandy

Stan Holtz

Holtz Stan to vendors a the taking questions. then is maybe understand installed already that for TruBridge trying thanks I’m use at typically the since for will EHR my one just cohort XXX base looking someone Maybe XXX bed quick [ph] and TruBridge. have on Sandy, market hospital to to [indiscernible] outside offerings. specifically same This have that CPSI are

David Dye

have view operation we our manage field – part cancer customers, program. customers, have they don’t offerings the management have the through have entire vendors, our EHR we business where at large In now least have we we in and customer, that where Meditech Epic [ph] Cerner customers

clinical and want reimbursement anything the referenceable we patient doesn’t the focus. as So care as that continues hospital have and the to to it outsourced model [ph] trend is that got that care we’ve do focusing solely slowly with towards on know shift clients changes

as that increased in fold X.X essentially sales capacity occurs, just the in our last you we’ve months. XX that space that about So mentioned

is So awareness our to sales and base market there coverage with of operates opportunity increase our on the referenceable capitalizing the so continues we’re the has is it. and increased, efficiently TruBridge that in someone

Stan Holtz

thank Great, you.

Operator

today our ahead. & go next Eugene Mannheimer Please from comes of Company. question Doughtery And

Eugene Mannheimer

the year. ask the in trend wondering seeing the you wanted prior the versus I And I’m you kick for Matt earnouts the pushing to to Real remind approach how that on I as attained of that the thresholds vendor be Boyd Get to higher toward that the guess by SaaS revenue mix then you’re just is much can us separate out Health the year. called driven client. pronounced to CPSI the strong finish that’s question, Congrats than and about much needed preference more in? of

David Dye

the this handle David. is your question, Matt the second. handle will I’ll part of first Eugene

SaaS The months We’ve the and of mix menu the We mix [ph] to nTrust them SaaS mix mix the to the add license to for have of and clients. about plus been last do mix our for that. and present XX perpetual with so years five that all nTrust. license the continue we offering and now and the options or

would of responsible mix that stretch of for be SaaS. CPSI is pushing bit So towards more say, would a the say I to the a

towards of Although have as have increase mix to the certainly there’s so incentivized choice. salesforce there’s the their our want in customer lean SaaS as that, part the a that, to on possible bit a but a probably much we we

I them would the likely the the now. [indiscernible] say that model [ph] that that increased the the very market, the of model and we’re SaaS [indiscernible] Athena their and and that aggressive perhaps on the with from with popularity entrée and of capitalizing awareness space know moving as you that of awareness [indiscernible] space to it’s

Matt Chambless

And Eugene, performance the the versus the that second of question around your earnout part GRH levels, right? of is

Eugene Mannheimer

Yes.

Matt Chambless

earlier see around adjustments those something purchase a achieved time the look so earnout that and determinations scenario the of believe the purchase down Yes, $X EBITDA of probability measurement of being earnout million breakeven through that the GRH income based $X a happen so any requires clause if on fair million to I for X-K adjusted for step a and acquired result year that and stated million and we the income price was it’s value GAAP had and relatively to GRH, agreement. we somewhere for contingent analysis the purchase consideration that was to ended feel the the like you statement when good now likely EBITDA, we on estimated to of face accounting, increase so earnout short doesn’t all of run it’s statement that’s be explain of weighted that going the analysis the the the road and the end $X period. in there’s on gain from outside adjustments up

So considered that the million or $X about be not specifically to earned. any related questions earnout

Eugene Mannheimer

you much. Thank Got it. very

Operator

over to Mr. gentlemen, following like I Now turn ladies question-and-answer to concludes Douglas the remarks. and session. back this would the any for conference

Boyd Douglas

served in background retired extensive community Chris The innovation like our evolution an forward the look welcome thank President Chris his of you Chief C-Level and as greatly will a In to impressive Board years would [ph]. He recently Chris technology and I company. us to healthcare closing experience Great, technology Hjelm Company of Directors. Rocco with XX CPSI’s leader. to Information over bringing Vice has working to previous solutions Executive as contribute leadership We Kroger IT from we leading where to as Officer. experience and

for take And healthcare. as hard journey commitment us continue across a the to work to thank minute They advancing of passion our difference community to employees of the help make we Their lastly, All would I of make and CPSI. country. a have like on all a the today real only to efforts and everyone call everyone join importantly thank difference much that to taking the and With evening. not their me, a very are by appreciated great I’d like time clients. by everyday us most but our on

Operator

Thank now you, today’s conference attending sir. for has presentation. We all Today’s concluded. you thank

may and disconnect wonderful have lines your You now a evening.

TruBridge (TBRG) 11 Feb 202019 Q4 Earnings call transcript