Computer Programs and Systems, Inc. Announces First Quarter Results; Company Announces Initial Cash Dividend of $0.085 Per Share.Business Editors/Health/Medical Writers MOBILE, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--April 22, 2003 Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI CPSI Computer Programs & Systems, Inc. (Mobile, Alabama) CPSI Creative Problem Solving Institute CPSI Certified Playground Safety Inspector CPSI cells per square inch CPSI Configurable PostScript Interpreter ): First Quarter Highlights: -- Board of Directors Declares Cash Dividend -- Revenue Increased 18.6% -- Third Consecutive Quarter of Record Cash Collections -- Release of Computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. Physician Order Entry (CPOE CPOE Computerized Physician Order Entry CPOE Computerized Provider Order Entry CPOE Computerized Prescriber Order Entry ) Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading provider of healthcare information solutions, today announced results for the first quarter ended March 31, 2003. In addition, the Board of Directors has approved the commencement of a quarterly dividend and declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a first quarter cash dividend of $0.085 (eight and one-half cents) per share, payable May 26, 2003, to shareholders of record as of the close of business on May 9, 2003. Commenting on the results, David Dye, chief executive officer and president of CPSI, said, "We are pleased with our strong financial results and the continued demand from community hospitals for our integrated information system solution and complementary services." Total revenues for the first quarter ended March 31, 2003, increased 18.6% to $20.1 million compared with total revenues of $16.9 million for the prior year. Net income for the quarter ended March 31, 2003, totaled $2.1 million, or $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $1.8 million, or $0.19 per diluted share, for the prior year, representing increases of 15.7% and 5.3%, respectively. Pro forma adjustments reflect the provision for income taxes as if the Company had been taxed as a C corporation for all periods presented. Excluding pro forma adjustments, net income before taxes for the first quarter ended March 31, 2003, was $3.3 million compared with net income before taxes of $2.9 million for the prior year. Commenting on CPSI's decision to begin paying dividends, Mr. Dye continued, "Our management believes that the payment of cash dividends is the best way to use our excess cash to enhance stockholder value. CPSI has no debt, and we expect to continue to generate positive free cash flow going forward. As a result, we believe that CPSI will have adequate cash available to fund the continued growth of our business. We are also in the process of evaluating the implementation of a dividend reinvestment plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. as part of our intent to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. dividends going forward." The Company reported that future dividend declarations are expected, but will be made at the discretion of the Board of Directors based on the Company's earnings, financial condition, cash requirements and other factors. In closing, Mr. Dye added, "We are excited about our ongoing software development efforts, as we recently released our Computerized Physician Order Entry component, and we continue with field clinical trials of our Picture Archiving and Communication System In medical imaging, picture archiving and communication systems (PACS) are computers or networks dedicated to the storage, retrieval, distribution and presentation of images. The medical images are stored in an independent format. , scheduled for release by the end of 2003. Additionally, our future prospects remain strong, evidenced by the fact that our active sales pipeline continues to steadily increase. However, we have seen a slight lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. in the sales cycle, as hospitals in general are taking more time to evaluate information technology decisions. Our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. as of March 31, 2003, was $57.6 million, comprised of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $16.9 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc non-recurring system purchases and approximately $40.7 million related to recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. payments under support, outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). and ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. contracts. Currently, we anticipate reporting total revenues in the range of $19.5 to $20.5 million and net income of approximately $2.1 to $2.3 million, or $0.20 to $0.22 per diluted share, for the second quarter of 2003." A listen-only simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and replay of CPSI's third quarter conference call will be available on-line at www.cpsinet.com and www.companyboardroom.com on April 23, 2003, beginning at 9:00 a.m. Eastern Time. About Computer Programs and Systems, Inc. CPSI is a leading provider of healthcare information solutions for community hospitals and has more than 450 hospital clients in 45 states. Founded in 1979, the Company is a single-source vendor providing comprehensive software and hardware products, complemented by complete installation services and extensive support. The Company's fully integrated, enterprise-wide system automates clinical and financial data management in each of the primary functional areas of a hospital. CPSI's staff of over 650 technical, healthcare, and medical professionals provides system implementation and continuing support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services as part of a comprehensive program designed to respond to clients' information needs in a constantly changing healthcare environment. For more information, visit www.cpsinet.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements can be identified generally by the use of forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. terminology and words such as "expects," "anticipates," "estimates," "believes," "predicts," "intends," "plans," "potential," "may," "continue," "should," "will" and words of comparable meaning. Without limiting the generality gen·er·al·i·ty n. pl. gen·er·al·i·ties 1. The state or quality of being general. 2. An observation or principle having general application; a generalization. 3. of the preceding statement, all statements in this press release relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and future financial results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: overall business and economic conditions affecting the healthcare industry; saturation saturation, of an organic compound saturation, of an organic compound, condition occurring when its molecules contain no double or triple bonds and thus cannot undergo addition reactions. of our target market and hospital consolidations; changes in customer purchasing priorities and demand for information technology systems; competition with companies that have greater financial, technical and marketing resources than we have; failure to develop new technology and products in response to market demands; fluctuations in quarterly financial performance due to, among other factors, timing of customer installations; failure of our products to function properly resulting in claims for medical losses; government regulation of our products and customers; interruptions in our power supply and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. capabilities and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
2003 2002
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Sales revenues:
Systems sales $10,103 $ 8,800
Support and maintenance 8,298 7,090
Outsourcing 1,674 1,031
------- -------
Total sales revenues 20,075 16,921
Cost of sales:
Systems sales 7,133 6,047
Support and maintenance 3,911 3,231
Outsourcing 995 624
------- -------
Total cost of sales 12,039 9,902
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Gross profit 8,036 7,019
Operating expenses:
Sales and marketing 1,368 1,346
General and administrative 3,444 2,874
------- -------
Total operating expenses 4,812 4,220
------- -------
Operating income 3,224 2,799
Interest income, net 45 28
Other 40 45
------- -------
Net income before taxes 3,309 2,872
Provision for income taxes 1,238 --
------- -------
Net income $ 2,071 $ 2,872
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Basic earnings per share $ 0.20
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Diluted earnings per share $ 0.20
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Pro Forma Income Data:
Net income before taxes as reported $ 2,872
Pro forma provision for income taxes 1,082
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Pro forma net income $ 1,790
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Pro forma basic earnings per share $ 0.19
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Pro forma diluted earnings per share $ 0.19
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Weighted average shares outstanding:
Basic 10,488 9,288
Diluted 10,569 9,288
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Balance Sheets
(in thousands)
March 31, Dec. 31,
2003 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 7,347 $ 6,352
Accounts receivable, net of allowance for
doubtful accounts of $792 and $768 respectively 12,490 12,599
Financing receivables, current portion 1,120 1,341
Inventory 1,434 1,615
Deferred tax asset 1,048 1,006
Prepaid expenses 200 328
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Total current assets 23,639 23,241
Financing receivables, long-term 728 841
Property and equipment 8,801 8,216
Accumulated depreciation (3,698) (3,389)
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Total assets $29,470 $28,909
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,272 $ 2,094
Deferred revenue 1,551 2,348
Sales and use tax payable 1,000 1,258
Accrued vacation 1,396 1,317
Accrued stockholders' distribution 250 250
Other accrued liabilities 429 969
Income taxes payable 1,009 194
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Total current liabilities 6,907 8,430
Stockholders' equity:
Common stock, par value $0.001 per share,
30,000,000 shares authorized, 10,488,000
shares issued and outstanding 10 10
Paid-in capital 17,259 17,259
Deferred compensation (212) (225)
Retained earnings 5,506 3,435
------- -------
Total stockholders' equity 22,563 20,479
------- -------
Total liabilities and stockholders' equity $29,470 $28,909
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