Computer Programs and Systems, Inc. Announces Third Quarter Results.Business Editors/Health/Medical Writers MOBILE, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Oct. 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 ): Highlights: -- Revenues increased 3.7% to $19.6 million; -- Cash collections of $20.7 million; -- Positive free cash flow of $2.4 million; -- PACS (Picture ArChiving System) A storage and management system for high-resolution images. Typically pertaining to the medical field, images such as X-rays, MRIs and CAT scans require a greater amount of storage than other industries. rollout slated for fourth quarter; and -- Signed nine new contracts. Computer Programs and Systems, Inc. (NASDAQ/NM:CPSI), a leading provider of healthcare information solutions, today announced results for the third quarter and nine months ended September September: see month. 30, 2003. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. David Dye, chief executive officer and president of CPSI, "Our third quarter revenue and income results, which were in line with our guidance, reflect the fact that the community hospital marketplace is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a difficult reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. environment. While we do not know when this trend will improve, our company remains confident of its future prospects. CPSI continues to generate profits and positive cash flow while maintaining no debt. We also sense an increasing realization among hospital management that investment in integrated information technology (company) Integrated Information Technology - (IIT) A Santa Clara based company producing a programmable, single chip H.261 and MPEG system. The chip contains a RISC processor, originally based on the MIPS architecture but now called RISCit, and a "Pixel Processor". solutions will become imperative in the future in order to remain competitive." Total revenues for the third quarter ended September 30, 2003, increased 3.7% to $19.6 million compared with total revenues of $18.9 million for the prior year. Net income for the quarter ended September 30, 2003, was $1.5 million, or $0.14 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 net income of $2.1 million, or $0.20 per diluted share, for the prior year, representing decreases of 29.7% and 30.0%, respectively. Total revenues for the nine months ended September 30, 2003, increased 11.7% to $59.6 million compared with total revenues of $53.3 million for the prior year. Net income for the nine-month period was $5.6 million, or $0.54 per diluted 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 $5.7 million, or $0.57 per diluted share, for the prior year. 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 nine months ended September 30, 2002 and 2003, was $9.0 million. Mr. Dye continued, "During the third quarter, we added nine new facilities to our client base, bringing the total number of clients added during the first nine months of 2003 to 36 and increasing our customer base to 479 clients as of the end of the third quarter. Our twelve-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 September 30, 2003, was $60.4 million, consisting of $16.8 million in non-recurring system purchases and $43.6 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 in 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. For the fourth quarter of 2003, we anticipate total revenues of $21 to $22 million and net income of approximately $2.1 to $2.3 million, or $0.20 to $0.22 per diluted share." In closing, Mr. Dye said, "We are particularly excited about the anticipated installation 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. (PACS) solution, Imagelink, at up to three facilities in the fourth quarter. With the addition of Imagelink to CPSI's other clinical, financial and patient accounting applications, we firmly believe that our company continues to provide community hospitals with the most comprehensive integrated hospital information system in the industry." A listen-only simulcast and replay of CPSI's third quarter conference call will be available on-line at www.cpsinet.com and www.fulldisclosure.com on October October: see month. 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 with approximately 480 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 650 technical, healthcare, and medical professionals provide 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 Nine Months Ended
September 30, September 30,
---------------- -----------------
2003 2002 2003 2002
------- ------- ------- --------
Sales revenues:
System sales $9,082 $9,936 $28,822 $27,650
Support and maintenance 8,718 7,617 25,467 22,084
Outsourcing 1,791 1,344 5,285 3,595
------- ------- ------- -------
Total sales revenues 19,591 18,897 59,574 53,329
Cost of sales:
System sales 7,171 6,545 20,804 18,905
Support and maintenance 4,010 3,578 11,939 10,085
Outsourcing 1,091 868 3,155 2,216
------- ------- ------- -------
Total cost of sales 12,272 10,991 35,898 31,206
------- ------- ------- -------
Gross profit 7,319 7,906 23,676 22,123
Operating expenses:
Sales and marketing 1,480 1,660 4,516 4,333
General and administrative 3,561 3,204 10,349 9,187
------- ------- ------- -------
Total operating expenses 5,041 4,864 14,865 13,520
------- ------- ------- -------
Operating income 2,278 3,042 8,811 8,603
Interest income, net 60 64 153 134
Other 3 117 60 226
------- ------- ------- -------
Net income before taxes 2,341 3,223 9,024 8,963
Provision for income taxes 880 1,146 3,380 698
------- ------- ------- -------
Net income $1,461 $2,077 $5,644 $8,265
======= ======= ======= =======
Basic earnings per share $0.14 $0.20 $0.54 $0.84
======= ======= ======= =======
Diluted earnings per share $0.14 $0.20 $0.54 $0.83
======= ======= ======= =======
Pro Forma Income Data:
Net income before taxes as reported $8,963
Pro forma provision for income taxes 3,304
-------
Pro forma net income $5,659
=======
Pro forma basic earnings per share $0.57
=======
Pro forma diluted earnings per share $0.57
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Weighted average shares outstanding:
Basic 10,488 10,488 10,488 9,868
Diluted 10,525 10,589 10,546 9,907
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
2003 2002
------- -------
ASSETS
Current assets:
Cash and cash equivalents $9,930 $6,352
Accounts receivable, net of allowance for doubtful
accounts of $788 and $768 respectively 10,387 12,599
Financing receivables, current portion 1,040 1,341
Inventory 1,460 1,615
Deferred tax assets 934 1,006
Prepaid expenses 496 328
Prepaid income taxes 184 --
------- -------
Total current assets 24,431 23,241
Financing receivables, long-term 847 841
Property and equipment 9,570 8,216
Accumulated depreciation (4,099) (3,389)
------- -------
Total assets $30,749 $28,909
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,122 $2,094
Deferred revenue 2,583 2,348
Sales and use taxes payable 139 1,258
Accrued vacation 1,618 1,317
Other accrued liabilities 909 1,219
Income taxes payable -- 194
------- -------
Total current liabilities 6,371 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
Additional paid-in capital 17,259 17,259
Deferred compensation (187) (225)
Retained earnings 7,296 3,435
------- -------
Total stockholders' equity 24,378 20,479
------- -------
Total liabilities and stockholders' equity $30,749 $28,909
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