CPSI - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the CPSI Second Quarter Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Drew Anderson [ph]. Please go ahead.

Unidentified Company Representative

Good afternoon, and welcome to the CPSI Second Quarter 2020 Earnings Conference Call.

the may that regarding pursuant constitute Safe provisions 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 might 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 of provided call after reflect of Mr. Officer. this the update to the turn that in Chief only call or statements ahead, and our date no events investors caution date, Please time, revise also developments this now obligation represents Executive as we outlook and go undertake this sir. or to over forward-looking this Douglas, call. President any will At the Boyd to We I

John Douglas

you Drew afternoon, Good you, and joining everyone, Thank us. thank [ph]. for

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

had quarter many deal very to by COVID-XX am the country strong pleased continues created on to CPSI that pandemic, As the with conditions unprecedented our fronts. share I another

the facing providing a have hospitals, hospitals, skilled to and role take this for care hardship community this health and in communities the parts want are struggling all of of that in facilities [Technical country financially care to Meanwhile, had pandemic. and of need our challenging last larger to in no quarter Rural supplemental in provided Before I the in safeguarding and is nursing of the the public talk short-term for particular, in detail, real through many support providers. the health. Program secret financial critical difficulty] economic and role Care are Enhancement during It crisis those navigating their address greater the Paycheck impact the and however, to Protection subsequent about ongoing funding endure more clinics the pandemic. call CARES Act I Health clients. of they hospital a quarter, Act lifeline our

from during increased has providers need. in and providers COVID-XX, help However, detrimental time reimbursement for federal long-term rural financial awareness critical support and avoid communities. care workforce of strains for health the of health to community a needed our health rural government role care [Technical need better difficulty] of by is more manage support reductions the the and created pandemic care

million Most notably, part, business, we continue have outsourcing of to second same encouraged financial are quarter up the increase quarter our advocate lower pressures which discussed volumes contributed the of hospital XX% of double in total earlier the we $X.X and long-term process. with clients TruBridge, our an stalling million, circumstances bookings year, despite nearly solutions XX% are by and business is first difficulty] revenue our performance. For last sustainable these challenged compared XXXX second the these with to for issues. quarter Though our to our which half of to work decision-making [technical $XX XXXX. others and million, cycle bookings of $X.X we booked

last compared of quarter second $X.X million last in million with quarter million to bookings Our quarter year. in acute [technical difficulty] $X.X led and the $XX.X the

our of of of our has the quarter single platform second the progress the been efforts highlight solution. Another delivery development towards

and our is features, and level In acute, included our leveraging delivering -- in releases user are products post-acute last reached to products. this on the that bookings, help the the which our last addition We quarter COVID-XX, impact improved call, the we in include discussed months deal that for believe and XXXX. across responsible to have have the with experience quarter fourth post-acute which over clients of ambulatory we to progress X XX the since increase highest functionality of

[technical and their flexibility the majority health serve have continues our XX% CPSI staff helped continue than and safety. support COVID to track our difficulty] the and to In in to of scheduled working implementations Our well operational more confronting allow remain of to on crisis. ensure virtual protecting go-lives remotely,

Matt serve the respectable outcomes the in will expect this will value ways of measures to business we Despite and the conservative into finances us CPSI management doing new future. and of shortly. flows, revenue, have We cash drive which efficiency headwinds our and faced, cover well helped operating these EBITDA these of quarter's

and we COVID. conservative impact thinking road are the at remain of the Looking ahead, about

As we the encouraging up to we which second entered our X-month as look last is third of sales half the is quarter, over pipeline quarter, year. XX% the

revenue albeit fourth that and optimistic tracking, that of path provide to the return the these our highlight around Real a robust business a EHR strong of and targeting lower areas across shareholders. the market sales total that will the services these [technical of takes, to pre-COVID guidance. our centered Regardless model, year, levels steadfast driving quarter than that we be in made penetration optimistic quarter. business to specific maintaining hopeful this addressable EHR those are These able few quickly each this balance recovery to long-term indicators TruBridge opportunities in flow to once capital [technical build we into of that to rate cash been efforts a are $X than we progress I been a and support in finally, Based the and to including difficulty] of efforts difficulty] will remain we would other international more again billion, this Get cautiously healthy past opportunistic pre-COVID subscription Health. at of continue end And are leading on a more of We sheet markets, the like through continued that strategy. for respectable allocation conversion. convert pipeline have year, have value a our the

revenue First, momentum the model I'm our pleased share system to a that than to convert second acute and new XX% contracts a our were new quarter subscription SaaS EHR more license net of bookings maintaining implementations EHR model. from to care

once and management difficulty]. again product awarded cloud-hosted was for means recent together [technical award Peer-Reviewed HFMA most by with the which RCM TruBridge This Second, that, the was the with TruBridge accounts receivable service, suite, prestigious of TruBridge cycle when Peer-Reviewed designation. respected for management end-to-end the business typically look the highly outsourcing. TruBridge buyers designation by HFMA a that majority revenue office has offering is considering sought This after now

believe hospitals of can meet the is CMS transparency that XXXX. from shop to of the In agnostic we target. launched to price transparency on [technical ensures solution services addition, their a in for hospitals the offering to allows easily patients into providers amount strong transparency offering an EHR price. lead and price us based difficulty] the new January indications for goes there mandate Early price that that improves effect owed collectibility services The difficulty] [technical also

June borrowing refinancing an many capital. of opportunistic to facility and attributed maximum the patient that million of million. $XX to advantage take future difficulty] of to in create the that facilities East on its the the improved Real us. [technical $XXX long-term execute certain that Health, in for Canada, you number solutions of increase present we international under Pacific involvement uses may increased I'm position to flexibility revolving Third, turmoil and a Get we’ve This refinanced from initiatives seen saw current of are finally, capacity the more This with Middle refinancing opportunities of our growth level in offering. credit CPSI economic credit Asia our engagement has our the opportunities And

pleased us the are activity cautiously of we The the outside of we've market. this achieved in sales head here [technical into the as We and U.S. uptick the difficulty] across second year. second very of quarter, and optimistic our progress half all has made with in opportunities

to call saying in to of with over circumstances. CPSI like behalf particularly to care I workers light our and And over to to on all Matt Matt lines would the during the by results, to [Technical it for I the once employees I'm quarter's challenging our this extremely pleased financials, like financials. would to of front Before the on especially very conclude time, that like gratitude those turn difficulty] families. again, I discuss the would and express turn I health this their

Matt Chambless

made bookings offerings total our years. COVID-XX its of some quarter's gaining applications bookings second in of growth additional commentary XX% with difficulty] On quarter mentioned, today's environment call, I'll performance, of business. XX% up of about million support challenging to the on the as good caused or is brief a sales, financial million a from for walk Starting XX% in by increased the SaaS Despite second a first Including recurring EHR our $XX were impact through second and sales post-acute the strong COVID-XX, and throughout increased second of $X.X quarter, drive flat of subscription evidence everyone. XX% within $X.X in sales which, and quarter only base bookings Boyd, of saw acute segment strategy XX% the our long-term reached and and results XXXX. high-level quarter to emphasizing for non-MUX relatively second increased the add-on [technical System arrangements process our resurgence million on we XX% our the demand add-on detail including revenue some Thanks, afternoon, bookings quarter This overview is bookings. Total of provide sales compared care EHR XXXX. and second X.X by over bookings or Boyd traction. XXXX. sequentially, that quarter the highest and encouraging quarter sequentially the the

were facilities business we our sales long-term EHR $X.X the posted which XX% environment of new in opportunities by $X.X to with the beyond XXXX, of quarter a quarter. our live with million for decreased were regards three TruBridge notably about expand the to client the impressive going this Nonetheless, to sequentially, near-term anticipate sequential the quarter challenging in in net XX% [technical currently was nearly harder the metric, from acute XXXX. third or nine expected or in confident remain footprint While would $X.X for the we bookings, up to TruBridge frames go outlook live SaaS most historical the new cloud Overall, felt time volumes overcome. bookings EHR difficulty] back but to headwinds implementations. down release care impact With for customer new base. bookings net difficulty] or TruBridge the and We quarterly doubling [technical earnings Thrive previous conversion for mix our and second you year-over-year, the The bookings the refer like bookings, tables license to million composition the for environment. million and

Turning the to with All the told, sequentially of presence challenges to revenues the for in certainly felt were decline revenues. suppressing quarter the the pressuring on and period. The our its top patient and application XX% expected TruBridge second line XXXX. revenues XX% of adoption financial from made impact EHR results pandemic volumes down

non-GAAP maintaining The that the decreasing strategic sequentially position and mentioned of our the and strengthen our we long-term from improved capture call, with XX% prior and declines non-GAAP earnings team, satisfaction our consequence better second previous revenue recover. on our XX% job view quarter net the the the last outsized as would EBITDA employees sequentially security, us CPSI quarter EBITDA impact XX% opportunities needed adjusted with adjusted net taking markets to was income, decision As XX% an and of much to that And from decreasing the had made customer short-term provide year. income on year. team this second

Looking revenues our sequentially XXXX. were TruBridge X% of down second segments. and deeper at from quarter the XX%

of bottoming notable of at at on volume on revenues May. increasing ending client the correlated months June, XX% Patient difficulty], the significant. As of the use With improvement pre-COVID showed revenues declines [technical these the and call, week roughly first hospitals volumes, volumes levels TruBridge level patient and have impact roughly gauge throughout the showed April XX% with we declines our levels remained below hospital to previous was March XX% below during during our to with at pre-COVID mentioned that volumes metrics we since.

accounts receivable our $X.X XX% or example, revenues million for sequentially year. For $X the services and from or decreased million management prior XX%

for quarter, our did the second future short-term sacrificing containment protect growth. mentioned, the As we pull I margin all to did not of capacity levers cost disposal during at

As a previous result, TruBridge XXXX. and during to both of XX% the second the second the quarter XX% XXXX decreased to gross quarter margins during of quarter compared

revenues million in million or million revenue or sales and which decreased XXXX. $X.X The impact $X.X $X.X from pandemic's and was greatest down system quarter XX% support of XX% Next, second $X.X sequentially were million sequentially nonrecurring and year-over-year. streams, our the

our TruBridge revenues from of However, services. half those headwinds SaaS with over revenues also difficulty] where nTrust our as faced paired arrangements offering is [technical come

despite Our sequentially, a percentage contracts or XX% but were based collections, are previous relatively quarter, on decline third-party flat from experienced the XX of nearly preserving due top over margins. sales end XX% the still contracted costs was quarter. From travel mix The billings line hospital and costs, margin past revenues in the during with nTrust remained standpoint, the the cash declines large during a for a customers' and to improved $X the second year software license SaaS revenues up second mix lighter margins at these decreased revenue the million dramatic which months. result shift we've XX% in

on were a the during costs $XXX,XXX relatively was difficulty] second sequentially. or XXXX quarter operating Product software the capitalization costs contributor development of in of Moving XX% leading $XXX,XXX The [technical decrease development to year-over-year. flat product to of expenses.

incentive direct both earlier. with are down care the rate national As CPSI to client software statement, $X.X our development for the making sequentially investment of or primarily expense of impact platform year-over-year. costs seasonal General reduced driven for are our commissions, administrative COVID-XX $X.X largest discussed in related second requirements accounting capitalization costs travel restrictions and the contributor of income an last [technical for new GAAP compared during quarter our by costs the scheduled decreased and million being million XX% from XXXX we Boyd marketing outlook in the costs. [technical the decreased is costs costs. $XXX,XXX second development declines Revenue result XX%, down XXXX, of a was in costs legal XXXX to and resulted quarter May compensation quarter Similarly, reductions year. cancellation sequentially, the of during the and difficulty] of tax that Closing reminder, effective is originally decreased endeavor of single of for and out solution benefit XXXX. a X% of capitalization our of the settings, all drove our difficulty] and multiyear a the on Sales the

pre-tax to second don't credits, quarter of heavy XXXX resulting outsized The rate. some in effective benefit to benefit related saw R&D tax which necessarily income, the correlate a with

months a the million provide of as to a the Turning receivables down were for our while quarter, community $XX and the $X ago. over million difficulty] accounts down frame. the work million the of adjusted strength This highlights past nearly to at in to in hospital million from the flows emergency or frame what a $XX company EBITDA and government the was same reduction XXX% the flows debt same resiliency The of matched highest XX of first cash adjusted to end successful XX-month allowed trailing for history impact federal flows second quarters a customer difficulty] financing continued during sheet the a XX% stand in of increasing has to cash $XX [technical strength one over cash [technical Trailing record time $X cash base XX of receivable funding bank million now the in XX-month compared view to with the flows or year-ago. balance and work million in improved $XX of net by XXXX. XX we difficulty] This quarter is testament end $XX operating clear health efforts care at of providers. EBITDA XX cash [technical to CPSI the at million the second of of time quarter

more cover a subjects. Before just we like to I'd for open the couple questions, line

still customers, and facilities levels difficulty] they've response early of support sales to inconsistency for line support First, prospects year. much through other continuing to volumes we the pandemic Likewise, lay of markets in we out rural as have net Washington and normal which patient to economic at safety and storm in government by the has of guidance too pandemic our unknowns at to and enter so our look to with there $XXX hospitals health customers' community end key all which of fourth out partners the commitments hospitals, near-normal the much for and return operating improvement our was provided as expect view, the substantial the survived pressure back to the continue the our paired expectations new safety specifically our like the are relief well quarter, a and hospital bodes these the to return the worst their Directionally, that federal net is of increased guidance. current the too of financial to maintain provide environments we time. return continued weather at funding normal vaccine effects. are this ability top Despite indications billion and that from the much the When TruBridge volumes environment far. of on federal fund, a in many and [technical this CPSI. for overall confidence to We point our All hospital important revenues. additional follow, influenced it's feel the step customers, outlook to alleviating likely a more hospital aimed for XXXX, our the

X our expectations, we committed of We’ve hospital challenge, our the sense. short-lived. on our the pandemic's have pulled disposal revisit few our beyond be current expectation of right uniquely difficulty] been size with to mentioned prolonged will the response to past that temporary room on the impact and cost in this employees financials the a structure extends our customers' I very impact If [technical so volumes we rightsizing of and both our financials event scenario. and our we makes our will have As months feel to pandemic's ample at far additional levers downside earlier, during the

availability spend $XX our with comfortable last capacity I Second, on on like were little would million. revolver capital with of cash time mentioned the a that March million recent $X of We XX our and refinancing. earnings call to we

enhanced on more our and This opportunistic facilities, pursue potentially this and flexibility cash sheet in million With $XX $XX opportunities, services of have ago. create June's refinancing now tuck-in for we've XXXX, strategic and capital. capacity powder decisively share to goal balance a the the questions. the about to end of overall up post-COVID us the value-driven and We of from successful strong difficulty] M&A would environments. additional quarter of that, completion capital uses set set boast revolver line act And [technical invest the availability flows tripling current the optionality of has the existing a for now our which both and towards of open to eventual the excited dry marked in credit the quarter with million was the cash successful like of products we nearly aim repurchases. opportunity

Operator

Thank go ahead. you. Blair Garro comes Please Our Company. William first [Operator from Instructions] from & question Jeff

Jeffrey Garro

taking the Yes, questions. and for thanks good afternoon,

end it shows facilities of IT a those start would asking off market. to providers community hospitals some helpful But parse you just health rural I of survival appetite Clearly, from the out generally of will I pursue resiliency. strategic think if initiatives. near-term health could I think the more it and with bit the little be the here by about

John Douglas

government, even seem the think, yesterday, the initiatives they are increased viable, with financially there I from as to as recently President some new from coming attention be Jeff, Trump.

rural good in still So important -- feel care to U.S. is brought I health health to the think, It's about really, we it. light to care delivering overall how

the feel where good market point. about this end And is so we at

David Dye

deals half to we if add a are buying of but hospitals they contracting particular, is that that from -- is in Jeff, systems, up looking hospitals EHR -- that’s on have I we’ve products. touched thing year. substantial the are average the another in will that’s with over we’ve the are full they system system that in won was year EHR is coming the entire are of comments, last last that that of David are an perspective buying for and that bit. happy in Dye in suite And this prepared it little marketplace and off they in year. here. suite, where out for whatever they the contract first on. increase seen And size from the an the rather an significantly as are the the are again, And there are they that's We

the all got already they've installed. products Now

to continue in quarter. go up. the to we average So that actually second the size We contract see saw continue

few are less seen a but on they hospitals in what there's So have that increase Evident made have those side. decisions, actually the buying. an that That's

the TruBridge back on but in a that believe where side the a overall it to that going total comes of on side, be to the from see were quarter don't As in COVID how the curious disappointing, we was the the year environment, second resume in perspective touched half more as bookings of But is we business, disappointing. was normal volume the the we're given more there of that second environment. that's we we TruBridge

Jeffrey Garro

to partner help put and with your bit it and on clients. product Great quant and to of year. the first a XXXX frame of bookings to dive in year, momentum Last in environment. maybe half of bit the expectations. -- the hear. suite validation second a stronger efforts finished was you first your half I'll the Great aspect despite little half the the continued a That challenging of deeper has slower, us little of but how

growth confidence second year? So is the in even year-over-year for half in bookings now? the maybe bookings stand where Where delivering you full-year of the or growth

David Dye

the difficulty] in being and comp to We half of we put year, relatively difficult especially more significantly have we that first and of in of predominant so the more this we're we the a [technical excited that half did the execute year. had first half were Great for to Jeff. the easy year, comp mid-March. able the since outperform comp Sure. a with question, do COVID Yes, back simply,

prepared in X-month weighted our mentioned as Boyd at As June comments, pipeline of difficulty]. an is his [technical XX

So that the -- gives we us will execute to to on well to some we're be in going that we confident the to going second able which In of confidence achieve are to that, to need can the half on EHR year. perform order continue on to we're pick Evident front, need do. up we

We to of are But it customers, with remains that of, second MEDITECH question be be the A, course, do. can, we're a to are in we a [technical are we're success It's can to do from we're what hospitals, front, We just difficulty]? that we to the It's have the the seeing pipeline. some to we're going execute which TruBridge more to compared standpoint, need quarter. confident cetera, can a in saw see in we of going that in half lot nTrust we able those going pickup quarter et having seen. but we to B, Are what saw penetrating the first our to of on second TruBridge. in like in up-market, the early what to year? And continue we that in as particular, optimistic

Jeffrey Garro

little the the could can very more more optimism you navigate TruBridge want more efforts maybe the uncertainty. a just clients little how for I ability Great. have hospitals. there's announced public question. it's reimbursement schemes specifically I the help -- yesterday. initiatives bit one pilot and broadly and dive CPSI new health specifically, further is in clearly, to about where maybe that dive CMS Trump And rural to understand on speak I in more to early. But a last bit U.S. by understood

John Douglas

what hit out the see everybody head. a was I lot changes spot flow yesterday difficult program. call, with because business -- it's to the significantly a patients. was the And Yes. streamline voluntary value-based that ebb which the out thought for from from difficulty] when as And streamline Medicare is on program run nail was you the on basically have reimbursement for run make it's and What month-to-month A I reimbursement initiative came guess, you pilot comment, from those times, it. his CMS of just part help you experience have going obviously, of to it's with we on, his and it Trump our to [technical to and easier, month-to-month businesses clients the

think goes [technical the difficulty] their -- that over chronic can do, their to now. from far to with the fit As care as with services, are that offering engagement what we TruBridge into and them care help obviously, we that we patient we're portal the affordable that services but and -- the continue help cost offer deliver of products And everything the EHR, that patient services starts that's their them communities. to that services deliver that structure and facility patient best can they with

Jeffrey Garro

questions, the for Thanks guys. taking Great.

David Dye

Sure.

John Douglas

Thanks, bet. You Jeff.

Operator

The from ahead. Hooker Please comes go Donald KeyBanc. from next question

Donald Hooker

on it Hey, though. afternoon. a making through great. quarter, Congrats Good tough

TruBridge, lags question parts revenue And I guess of you're some TruBridge. providing are moving underlying recognition those know is for a around there I that understanding the not client volume. number So my guidance, my parts patient but of within the

to [technical fair difficulty] into the So correct? then down want there's a just QX in before would cadence make recovery that there's QX I assume to another XXXX? sharp expectations, in be of step it

Matt Chambless

Yes.

were It's down Don, be So versus were. don't quarter lateral QX we that outperforming think a quarters two necessarily with to more from step from where middle going I significantly of be the step the of second like year the QX. where is going to QX a in

Donald Hooker

put you around is -- your X CARES release we of number similar did out, [technical base the you of around some client provisions of revenue something put Okay. on from I … that can and is entire And an Is mentioned, CMS, as a associated the interesting. Act. MUX, way the That's can requirement which Is can a there X, kind difficulty], particular to that know of we this press that? a sale see other install this sort jumped requirements that guys like fair. And a that a -- terms about interoperability thing had these you in for then there is I in with think that

Christopher Fowler

Great Donald. that's good Yes. way similar a the it, to very And think to use. meaningful question, really about

kind I of and -- staying that analogy an you will So give with idea.

purchased was but is meaningful built be similar the difficulty] service So that available price through application when a that, base, at customer huge the Very a itself mover by we to physician documentation use upon an was are offering now requirement standalone, available base. transparency we’ve And the transparency customer. needle to is we per that that applications not installed is looking price other are the initiative. [technical

the However, look prerequisite the at are get -- applications when add-on to applications we -- to required get that sorry. price transparency to required to

We at in about a an [technical add $XX potential are with at implementation difficulty] fees. million about $XX million looking to

bump that So could recognized. it's a nice be sort of

any And right it the the I two, hospitals. is, now -- are question rural based big will will one, be think changes be I on become is think there the questions outlying delayed? going to that

out plays there's no very assuming that to and continuing that feedback So customer [technical we that from base right deadline, anticipate of they The as are go. end uptick difficulty] the by to our that changes positive see now that the we how is will the seeing we receiving year. we

Donald Hooker

you think And last just then one. Great. last add one -- could I one

in and year? to something there? sales reinstate prepared that going a user commented that You your there that you to conference, or you guys on think some concern, that feed remarks. kind around your canceled your marketing of about way? in are Is Does Is next

John Douglas

We and so are that don't reinstating our certainly And users. a collaboration client that about it with planning that application of and is maybe educational experience I to it. feedback. for from on really focus new more the I a And we an But find it's marketing know are certainly or get it. There's touch and has people themselves communicating service out can certainly, think -- whole sales the of new we conference offering us, with each a education TruBridge. clients with other,

-- and don't So marketing perspective. big I to hit wouldn't expect sales a take a I from

Christopher Fowler

are Yes. be And classes we going of Donald, offering point, some to to virtually. that the

building disappointed now of able are available throughout out. we are going together to face to education make get face, Obviously, that is the we year. are not process in We are right that, that but we that the sure to

Donald Hooker

Great. jump you. else I someone on. will Thank Thanks. let

Operator

Please The from Larsen from go comes David ahead. Verity. next question

David Larsen

it's me Can significant number increase. installs a the Can those then are installs actually you Hi. Thanks. you installs sequential the pretty I quarter? third And the And those with you remotely? are of think how remind what for do pandemic? doing

Matt Chambless

Yes.

implementations. versus will of kind remarks So mix Thrive currently, implementations are have third Chris the net got that speak a again, going mentioned environment. of on I to those the virtual -- prepared be for we've scheduled or for And whether the Dave, cloud on-site is what quarter. And we a kind in SaaS we of system let to new -- nine three

Christopher Fowler

Yes.

So base remote and of David, shows doing success obviously our the flexibility both customer and implementations the those think I employees. resiliency our in

I travel down, think are Matt points gave implementations. number, our that those significantly, costs directly to and the obviously,

do positive implementations. our available us Webex through And The the to the ability so able install feedback to have has classes been for remote. software conferences of or either quite being

David Larsen

I you process? the then, And are where Okay, remind structure of income expected you steps taken Matt, either cost or adjusted just in to what that some is be had think to improve operating organization. incremental the EBITDA? me, the great. like benefit to Can you And

Matt Chambless

Yes.

I that And we months announced to initiative executed to ago, million that a had savings $XX it where savings initiatives top. we say, million XX XX we referring or on underway, was some cost maybe you're additional $X on. then I layer initially had David, of identified, think So later believe

savings. We of run that all have achieved cost rate

the So related nothing those initiatives, to there's on come.

David Larsen

Okay, great. Thanks lot. a

Operator

comes Davis ahead. question Stephanie next The Please from go SVB from Leerink.

Joy Zhang

volumes or you're potential year? wave? at more. was my taking questions. a This little I a a speak wanted of you're is Thanks rest but modeling expecting on second This if to to you whether baking Hi. how level asked a the Joy internally XX% the dig Can bit in for you're into volumes Stephanie. for you through stabilization the bit just earlier, And mentioned

Matt Chambless

Yes.

looking of we So are indicators. at handful a

the RCM that coding, management at. pre-COVID Our a volumes. indicators Those looking claims volumes. now, XX% accounts off leading in XX% about receivable transmission we're the are Right of we're volume, medical to hovering

for stayed We have to to I speaks the which uncertainty and not we assumed concern, any [technical the the difficulty]. sort to the year. rest relative are of second why wave of guidance into our where thoughts obviously, we a But think that's

Joy Zhang

looking And are offering the pricing solution Got you. features through for kind new prop? And that as follow-up, what understand would helpful. telehealth what kind no at value in case, adding monetizing of and model? more on that's if charge But XXXX. of a implement? you're planning Thanks. And ahead, you maybe you That’s a it features larger your

David Dye

Yes. Thanks, Joy.

going would that $X.X that plan we per of we additional with XXXX, at call, to of recurring or revenue. in rate in still end We we the -- $XXX,XXX on I to as XXXX. clinician revenue penetration January right about rough physician We where annually incrementally stated on now, that We I and no last will some year. enter to charge are you beginning are TalkWithYourDoc charge to next least annually at about figures offer difficulty] to believe basis [technical the we believe, continuing that the come at XXXX. the a into be our a $XXX,XXX out on of for basis rate can product begin million do per give license

engagement that integrated I integrated actively our with receiving to with which get as and out -- will that with also us feedback management features. are which product. we new market portal to services. But try now We client TruBridge, health it's are to we products And are features it's your note for answer now important to we and question, is is those PHR, certainly instant product with also -- think considering to to help real patient penetrate our those feature that care rolling

Christopher Fowler

follow-on is more piece which secret appetizing much an Joy, Yes. there, [technical customer And the installed our standpoint from one integration of the to think difficulty], into that that product that makes I is the final additional base. sauce

Joy Zhang

Great. much. very Thank you

John Douglas

Joy. Thanks,

Operator

George from Please Bank. Deutsche go ahead. question Hill comes from next The

Charlotte Kolb

George. Hi. my This taking for is for Thanks Charlotte on question.

increase the see And change flexibility what Given way do that [technical you're and mid about financing does the you you M&A? thinking functionality have quarter would the do you not activities, like difficulty]? to have, where

Matt Chambless

Yes.

size obviously, clear more when in capital dry opportunistic So M&A refinancing a uses that. restrictions one is upsized release announcing additional basis the refinance M&A primary this behind motivations press activity. annual of I only And an we around of agreement with credit on some mentioned the not of create or it's do earnings we revolver, was mean, -- powder. the the priority that the the reference dollar the of our to amount removed term that we of the the increase both also or We in

So absolutely have towards that increased forward. area eye going activity an in

Christopher Fowler

Yes.

As far obviously, is focus, from for value drivers efficiency of of perspective, as us. the areas a key TruBridge one

because leverage artificial [technical of are a word about much and standpoint I for them. use the the to again, difficulty] ability to to, us. we obviously scalable new key deliverable such the obviously, a So the when focus. are the where both service can out can we hate service That's deliver to there thinking high from for more areas value automation area identify to customers make focus intelligence net we just the to it's market our catch a all. we throw opportunities But more as an providing how that are

Charlotte Kolb

great. Okay, Thanks.

Operator

from comes from Draper question go next Securities. ahead. Truist Please The Sandy

Stan Berenshteyn

Hi. you taking off, quarter? Thanks. This Health you tell for the contribution on in questions. Get can Thanks if for us Sandy. the start Maybe can is Real had Stan my

Matt Chambless

Stan. Yes,

That XX for million year-to-date Health $X.X booking and to the were between a them $XXX,XXX months. standpoint, $XXX,XXX. From Real Get So had for million the past bookings over $XXX,XXX $X.X brings and quarter. revenues of about GRH

Stan Berenshteyn

it. curious then a now particularly bookings, there ago? Got the just you're product versus is the maybe on maybe And that looking I'm at any mix seeing in cross-sells. change year

David Dye

EHR Yes. as standpoint, nice prepared did comments, an mentioned Stan, From we Matt in have, have quarter. did his we a

years had of best the we've think in now in a of add-on quarter I sales. couple terms

we're and product good of into a customer We of ED our our are current volume seeing now, seeing ambulatory base. good also our a volume solution

more other think signed, again, in terms last [technical volume average of number I but compared than to than we that. contract difficulty] are that, has the that made of up the year, we've down for

differences from the year be would key a those ago. So

Stan Berenshteyn

on question. Obviously, looking just I’m manage and positive has side quarter it at weak you negative kind or large. Got you're it. industry the That’s or this very you maybe you through then the guys a And helpful. an for quarter? leaving open-ended off whether surprised client as anything on internally on curious, of

Christopher Fowler

at a in COVID and conscious Yes. the of actually environment. looking diversified prior timing that's as biggest [technical policies is hiring really miss luck a This year think made more the our I a a prior to as part have us we which a our difficulty] ability has beat. decisions sometimes beginning workforce and things, bit or move put Chris. been little start. workforce Probably will workforce the of some far of to Again, the U.S., the one across a and surprises the -- home to not I play

far to And have employees satisfaction the as our all levels staff decreased all part as house. IT productivity to being the been just see Our huge then customer of has of period. through able that success a at not and the getting the the

largest would my that's So probably I perspective, say, the been from highlight.

John Douglas

add And resiliency note, to customer I would base. our positive a of just on that the

that at in but cases, not in needs COVID They've of a severe cases, I with with some can the working COVID volume. issues. delivering not drop and think this, in deal dealing resilient care flexes see And very still other cash lots it government dealing, us front they’ve but played with and you lines. and patients COVID there in the been them helps other and many installing to been been, in all, -- patients from that new go communities as their big having unnoticed. and on everything and a They've to software part

So difficulty] of the resiliency the I [technical with base. customer

Matt Chambless

Yes.

for And just bookings. the higher negative TruBridge that’s on hospital just a in the you even think obviously, uncertainty nTrust based slowdown be So balance one the a demand. there's I an catch other guess standpoint. from maybe to the to side do would I give on opportunity of on

the that now, moving So majority support nTrust a that and the of monthly fact of if out variable to the they customer right fee lemonade just static volumes seeing. on based based on going some to we are make make are would vast something, our is that

lever And help so demand the going continue to for there's forward. that use a as to that an us opportunity think drive I to interest

Stan Berenshteyn

Got helpful. Thank you. Very it.

Operator

Halper Cantor Steve from comes Please from Fitzgerald. question next The go ahead.

Steven Halper

cash The was Hi. operating flow impressive. quite

both you a of financing on receivable. As side, line receivable couple had and items good receivable out, you account the called

we half should about of second levels the for cash of same the thinking year? operating be the So

Matt Chambless

Yes.

flow the collection remember expect Steve, the wouldn't the same important half the to of So necessarily level I that of operating flows for were mostly revenues. It's cash the quarter's second second year. of pre-COVID cash

that, with that due is million So expect back bit lower half the thinking we are based cash year of half flows back a little operating the the year down achievable. come somewhere to TruBridge do in just of volumes. in the the to of still invoicing ballpark coming But down on even $XX of we

Steven Halper

months? For the X

Matt Chambless

That's right.

the half back the year. of For

Steven Halper

so Yes. much. Thank you

Operator

This concludes like turn closing would back Boyd I remarks. any over our Douglas to to for conference session. the question-and-answer

John Douglas

with pandemic, we Thanks everyone care. And like health the on call community to of providers support proud care I for we a the critical this such pleased are the in COVID quarter. being that in are spite very today. the play just would to health results role that reiterate

us focused our afternoon. great for on long-term shareholders. and time a opportunities and Thanks, ahead us, we everyone and here All build of have efforts will remain the your value today, of for

Operator

now has for conference you attending The Thank today's presentation. concluded.

may disconnect. You now

TruBridge (TBRG) 9 Aug 202020 Q2 Earnings call transcript