FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (251) 639-8100 (Registrant's Telephone Number, Including Area Code) Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing ...

Revenue Cycle Management (RCM) Performance - RCM bookings increased by $27.7 million, or 136%, in 2022 compared to 2021, driven by strong demand for outsourced RCM services, particularly from the existing EHR customer base[331] - RCM segment revenues increased by $48.6 million, or 37%, to $179.9 million in 2022, while EHR segment revenues decreased by $3.3 million, or 2%, to $139.8 million[282] - Adjusted EBITDA for the RCM segment increased by $6.0 million, or 20%, to $36.2 million in 2022, while EHR segment Adjusted EBITDA decreased by $4.0 million, or 17%, to $19.1 million[282] Patient Engagement Performance - Patient engagement bookings decreased by $5.8 million, or 65%, in 2022 compared to 2021, due to the absence of large international client wins[332] EHR System and Support Costs - Costs of EHR system and sales support increased by $1.3 million, or 2%, in 2021, with Acute Care EHR costs rising by $1.2 million, or 2%, and Post-acute Care EHR costs slightly increasing to $4.9 million[315] - The gross margin on EHR system sales and support decreased to 51% in 2021 from 55% in 2020, due to increased costs of sales and decreased non-recurring revenues[315] Target Market and Customer Base - The company's target market for RCM, EHR, and Patient Engagement solutions includes community hospitals with fewer than 400 acute care beds, with 98% of the acute care hospital EHR customer base comprising hospitals with fewer than 100 beds[230] - The company's post-acute care solutions target approximately 15,500 skilled nursing facilities, which are either independently owned or part of larger management groups[230] Financial and Capital Management - The company's credit agreement restricts its ability to pay dividends, and the Board of Directors indefinitely suspended quarterly dividends in September 2020, aligning with a capital allocation strategy prioritizing flexibility[225] - CPSI had $141.1 million of outstanding borrowings under its credit facilities with Regions Bank as of December 31, 2022, with a potential annual interest expense change of $1.4 million for every 100 basis point change in interest rate[345] - CPSI's cash and cash equivalents were $7.0 million as of December 31, 2022, with a remaining borrowing capacity of $86.3 million under the revolving credit facility, providing adequate resources for the next twelve months[353] - CPSI paid $5.863 million in interest and $4.765 million in income taxes (net of refund) in 2022, compared to $2.817 million and $3.503 million respectively in 2021[425] Financial Position and Performance - CPSI's total assets increased to $430.963 million as of December 31, 2022, from $383.350 million in 2021, driven by growth in software development costs, intangible assets, and goodwill[394] - CPSI's stockholders' equity increased to $231.711 million as of December 31, 2022, from $222.572 million in 2021, primarily due to net income and stock-based compensation[397] - CPSI's net income for 2022 was $15.867 million, contributing to retained earnings of $53.921 million as of December 31, 2022[397] - CPSI's total liabilities increased to $199.252 million as of December 31, 2022, from $160.778 million in 2021, primarily due to an increase in long-term debt[394] - CPSI's current assets increased to $74.559 million as of December 31, 2022, from $68.998 million in 2021, driven by growth in accounts receivable and financing receivables[394] - CPSI's software development costs increased significantly to $27.257 million as of December 31, 2022, from $11.644 million in 2021, reflecting increased investment in technology[394] Internal Controls and Reporting - The company's internal control over financial reporting was assessed as effective as of December 31, 2022, based on the COSO 2013 framework[350] - CPSI realigned its reporting structure in Q4 2022, changing its reportable segments to Revenue Cycle Management (RCM), EHR, and Patient Engagement[402]

Computer Programs and Systems, Inc. (NASDAQ:CPSI) Q4 2022 Earnings Conference Call February 14, 2023 4:30 PM ET Company Participants Dru Anderson - Corporate Communications Christopher Fowler - CEO and President Matt Chambless - CFO Conference Call Participants George Hill - Deutsche Bank Stephanie Davis - SVB Securities Operator Greetings and welcome to CPSI Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-49796 Delaware 74-3032373 (State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.) 54 St. Emanue ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-49796 COMPUTER PROGRAMS AND SYSTEMS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 74-3032373 (State or Other Jurisdicti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-49796 COMPUTER PROGRAMS AND SYSTEMS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 74-3032373 (State or Other Jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file number: 000-49796 | --- | --- | |-------------------------------------------------------------------------------------------|---------------------------- ...

Customer Preferences and Market Trends - The company reported a significant shift in customer preferences towards the "Software as a Service" (SaaS) model, with 68% of new acute care EHR installations in 2020 being SaaS, up from 43% in 2019 and 12% in 2018[158]. - The healthcare IT market is expected to grow due to increasing pressure on healthcare organizations to reduce costs and improve quality, which may drive demand for the company's business management and consulting services[154]. - The company recognizes the ongoing risks related to the COVID-19 pandemic, market saturation, and competition from companies with greater resources[136]. Financial Performance - In the first nine months of 2021, the company generated revenues of $206.6 million, a 5% increase from $197.6 million in the same period of 2020, primarily due to improved hospital patient volumes[172]. - Operating income for the first nine months of 2021 was $17.2 million, compared to $15.1 million in the same period of 2020, reflecting improved profitability[172]. - Net income for the first nine months of 2021 was $13.0 million, an increase of $1.9 million from $11.1 million in the same period of 2020[172]. Revenue and Cost Dynamics - The company anticipates incremental margin pressure in the near term due to the transition from perpetual license arrangements to SaaS arrangements, which typically result in lower initial revenues but higher recurring revenues over time[152]. - Total revenues for Q3 2021 increased by $1.8 million, or approximately 3%, compared to Q3 2020[175]. - Total costs of sales increased by $1.9 million, or 6%, to $17.8 million in Q3 2021, with costs representing 50% of total revenues[180]. Operational Changes and Strategies - The company expects to realize approximately $3.9 million in annual savings from a reduction in force that terminated about 1.0% of its workforce, incurring expenses of approximately $2.7 million related to this action[161]. - The company engaged a consulting firm to assess its growth strategy, confirming the focus on cross-selling TruBridge services and pursuing competitive EHR opportunities in the acute and post-acute markets[151]. - The company aims to stabilize revenues and cash flows by leveraging TruBridge services as a growth agent, emphasizing the importance of maintaining and growing its recurring revenue base[150]. Impact of COVID-19 - The company expects continued negative impacts from COVID-19 on patient volumes and revenues, particularly affecting TruBridge service offerings[166]. - Cash collections have been delayed due to COVID-19, impacting the company's liquidity and cash flows from operating activities[170]. - The federal government allocated $175 billion through the CARES Act Provider Relief Fund to assist healthcare providers, with $10 billion specifically targeted for rural providers, which is significant for the company's client base[170]. Bookings and Backlog - Total bookings for the third quarter of 2021 increased by $7.8 million, or 37%, compared to the third quarter of 2020, reaching $29.322 million[233]. - Acute Care EHR bookings in the third quarter of 2021 rose by $3.8 million, or 33%, compared to the same period in 2020, totaling $15.298 million[234]. - As of September 30, 2021, the twelve-month backlog included approximately $6 million in non-recurring system purchases and approximately $272 million in recurring payments[231]. Cost Management and Expenses - Total operating expenses increased by $1.5 million, or 5%, to $19.5 million in Q3 2021, representing 44% of total revenues[188]. - General and administrative expenses increased by $4.1 million, or 12%, compared to the first nine months of 2020, mainly due to $2.5 million in severance costs and $0.9 million in transaction-related costs from the TruCode acquisition[210]. - Sales and marketing costs decreased by $2.7 million, or 15%, compared to the first nine months of 2020, driven by reduced payroll and commission expenses[207]. Capitalization and Investments - The company capitalized software development costs of $2.4 million and $6.4 million during the three and nine months ended September 30, 2021, respectively, with an estimated increase in capitalized amounts of approximately $1.1 million and $3.0 million due to a change in accounting methodology[162]. - Net cash used in investing activities increased by $61.4 million, totaling $67.0 million for the nine months ended September 30, 2021, largely due to the acquisition of TruCode[222]. Debt and Interest Rate Exposure - The company had $117.3 million of outstanding borrowings under credit facilities as of September 30, 2021, exposing it to interest rate fluctuations[243]. - A 100 basis point change in interest rates on borrowings would result in a change in interest expense of approximately $1.2 million annually[243]. - The transition from LIBOR to alternative reference rates could adversely impact the company's borrowing costs[244].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-49796 COMPUTER PROGRAMS AND SYSTEMS, INC. (Exact Name of Registrant as Specified in Its Charter) | --- | --- | |------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Non-accelerated filer ¨ Smaller reporting company ☐ FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-49796 COMPUTER PROGRAMS AND SYSTEMS, INC. (Exact Name of Registrant as Specified in Its Ch ...