Computer Programs and Systems, Inc. Announces Record Second Quarter Results; Company Declares Regular Quarterly Dividend of $0.22 Per Share.MOBILE, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. . -- 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 ): Highlights: --Established new high marks for quarterly net income and revenue; --Signed contracts for system installation at 11 new client hospitals, averaging $900,000 per facility; and --Declared regular quarterly dividend of $0.22 per share. Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading provider of healthcare information solutions, today announced results for the second quarter and six months ended June June: see month. 30, 2005. The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.22 (twenty-two cents) per share, payable on August 26, 2005, to shareholders of record as of the close of business on August 5, 2005. Total revenues for the second quarter ended June 30, 2005, increased 41.8% to $27.0 million, compared with total revenues of $19.0 million for the prior year period. Net income for the quarter ended June 30, 2005, increased 135.2% to $3.4 million, or $0.32 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 $1.5 million, or $0.14 per diluted share, for the quarter ended June 30, 2004. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the second quarter of 2005 was at the breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point, compared with cash provided by operations of $1.3 million for the same period last year. Total revenues for the six months ended June 30, 2005, increased 43.4% to $53.3 million, compared with total revenues of $37.2 million for the prior year period. Net income for the six months ended June 30, 2005, increased 201.4% to $6.6 million, or $0.63 per diluted share, compared with $2.2 million, or $0.21 per diluted share, for the six months ended June 30, 2004. Cash provided from operations for the first half of 2005 was $6.4 million, compared with $4.6 million for the same period last year. Commenting on the results for the first half of the year, David Dye, chief executive officer and president of CPSI, stated, "As a result of the continued increased attention at all levels of government and private industry on the need for hospitals to utilize information technology to improve patient outcomes, we are pleased that both our existing clients and new customers continue to embrace CPSI's system as the tool to enable them to establish a community wide electronic medical record. In particular, recent strong sales of ImageLink, our digital imaging solution, and ChartLink, our web-based patient chart and CPOE CPOE Computerized Physician Order Entry CPOE Computerized Provider Order Entry CPOE Computerized Prescriber Order Entry product, signify sig·ni·fy v. sig·ni·fied, sig·ni·fy·ing, sig·ni·fies v.tr. 1. To denote; mean. 2. To make known, as with a sign or word: signify one's intent. that community hospitals are placing an increased emphasis on the value of CPSI's advanced clinical applications in improving patient care and clinical productivity." For the third quarter of 2005, the Company anticipates total revenues of $25.0 to $26.5 million and net income of approximately $2.9 to $3.2 million, or $0.27 to $0.30 per diluted share. CPSI's 12-month 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 June 30, 2005, was $75.6 million, consisting of $21.9 million in non-recurring system purchases and $53.7 million in 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 for 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. 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 second quarter conference call will be available on-line at www.cpsinet.com and www.earnings.com on July July: see month. 22, 2005, beginning at 9:00 a.m. Eastern Time. About Computer Programs and Systems, Inc. CPSI is a leading provider of healthcare information solutions for community hospitals with over 500 client hospitals 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. Its fully integrated, enterprise-wide system automates clinical and financial data management in each of the primary functional areas of a hospital. CPSI's staff of over 800 technical, healthcare and medical professionals provides system implementation and continuing support services 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 Six Months Ended
June 30, June 30,
------------------- ------------------
2005 2004 2005 2004
-------- -------- -------- --------
Sales revenues:
System sales $12,656 $7,686 $25,299 $14,790
Support and maintenance 10,514 9,309 20,706 18,564
Outsourcing 3,800 2,019 7,362 3,872
-------- -------- -------- --------
Total sales revenues 26,970 19,014 53,367 37,226
Cost of sales:
System sales 8,467 6,146 16,422 12,579
Support and maintenance 4,673 4,113 9,238 8,257
Outsourcing 2,125 1,213 4,086 2,352
-------- -------- -------- --------
Total cost of sales 15,265 11,472 29,746 23,188
-------- -------- -------- --------
Gross profit 11,705 7,542 23,621 14,038
Operating expenses:
Sales and marketing 1,774 1,445 3,609 2,729
General and administrative 4,364 3,744 9,232 7,817
-------- -------- -------- --------
Total operating expenses 6,138 5,189 12,841 10,546
-------- -------- -------- --------
Operating income 5,567 2,353 10,780 3,492
Interest income, net 145 56 254 118
Other (60) 70 5 79
-------- -------- -------- --------
Income before taxes 5,652 2,479 11,039 3,689
Provision for income taxes 2,243 1,029 4,396 1,484
-------- -------- -------- --------
Net income $3,409 $1,450 $6,643 $2,205
======== ======== ======== ========
Basic earnings per share $0.32 $0.14 $0.63 $0.21
======== ======== ======== ========
Diluted earnings per share $0.32 $0.14 $0.63 $0.21
======== ======== ======== ========
Weighted average
shares outstanding:
Basic 10,528 10,490 10,509 10,490
Diluted 10,613 10,532 10,594 10,529
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Balance Sheets
(in thousands)
June 30, Dec. 31,
2005 2004
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $10,003 $13,785
Investments 6,155 --
Accounts receivable, net of allowance
for doubtful accounts of $1,551 and
$1,636 respectively 12,875 11,765
Financing receivables, current portion 1,723 974
Inventory 1,806 1,475
Deferred tax assets 1,476 1,397
Prepaid expenses 418 438
Prepaid income taxes 985 172
-------- --------
Total current assets 35,441 30,006
Financing receivables, long-term 498 618
Property and equipment 11,836 10,659
Accumulated depreciation (6,041) (5,205)
-------- --------
Total assets $41,734 $36,078
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,788 $970
Deferred revenue 2,701 2,602
Accrued vacation 1,836 1,631
Other accrued liabilities 2,258 2,323
-------- --------
Total current liabilities 8,583 7,526
Deferred tax liabilities 678 718
Stockholders' equity:
Common stock, par value $0.001 per share,
30,000,000 shares authorized, 10,598,991
and 10,489,849 shares issued and outstanding 11 10
Additional paid-in capital 19,904 17,292
Deferred compensation (98) (123)
Accumulated other comprehensive income (26) --
Retained earnings 12,682 10,655
-------- --------
Total stockholders' equity 32,473 27,834
-------- --------
Total liabilities and stockholders' equity $41,734 $36,078
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