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TruBridge(TBRG) - 2023 Q2 - Quarterly Report
2023-08-09 20:44
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, 2023 ☐ 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 ...
TruBridge(TBRG) - 2023 Q1 - Quarterly Report
2023-05-10 20:05
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%2E%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2023 financial statements show 11% revenue growth from RCM, but net income significantly decreased due to higher costs and interest expense - Commencing in Q4 2022, the company realigned its reportable segments to **Revenue Cycle Management (RCM)**, **EHR**, and **Patient Engagement**, with prior periods recast for comparability[21](index=21&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets increased to **$436.8 million**, liabilities to **$203.3 million**, and stockholders' equity to **$233.6 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $82,300 | $74,559 | | Software development costs, net | $32,004 | $27,257 | | **Total Assets** | **$436,847** | **$430,963** | | **Total Current Liabilities** | $49,149 | $44,455 | | Long-term debt, net | $135,603 | $136,388 | | **Total Liabilities** | **$203,289** | **$199,252** | | **Total Stockholders' Equity** | **$233,558** | **$231,711** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2023 total sales revenues increased to **$86.2 million**, but net income significantly dropped to **$3.1 million** due to higher costs and increased interest expense Q1 2023 vs Q1 2022 Income Statement (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Total Sales Revenues** | **$86,233** | **$77,871** | | Gross Profit | $42,056 | $41,190 | | Operating Income | $6,295 | $8,986 | | Interest Expense | ($2,669) | ($917) | | **Net Income** | **$3,084** | **$8,113** | | Diluted EPS | $0.21 | $0.55 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$9.5 million** in Q1 2023, while investing activities used **$6.2 million** and financing activities used **$3.4 million** Cash Flow Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,473 | $11,817 | | Net cash used in investing activities | ($6,249) | ($47,680) | | Net cash (used in) provided by financing activities | ($3,359) | $40,413 | | **(Decrease) increase in cash** | **($135)** | **$4,550** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the HRG acquisition, SaaS model shift, credit facility, segment changes, and ongoing legal and SEC accounting inquiries - The company acquired **Healthcare Resource Group (HRG)** on March 1, 2022, for **$43.6 million** net cash, adding **$24.2 million** in intangible assets and **$20.8 million** in goodwill[49](index=49&type=chunk)[50](index=50&type=chunk)[52](index=52&type=chunk) - The company faces a qui tam complaint alleging False Claims Act violations and an **SEC subpoena** from November 2, 2022, regarding accounting matters including revenue recognition and goodwill impairment[98](index=98&type=chunk)[191](index=191&type=chunk) - Customer preference has shifted to a **SaaS license model**, comprising **100%** of new acute care EHR installations in 2022 and Q1 2023, increasing recurring revenue[75](index=75&type=chunk) Segment Revenues and Adjusted EBITDA (in thousands) | Segment | Revenue Q1 2023 | Revenue Q1 2022 | Adj. EBITDA Q1 2023 | Adj. EBITDA Q1 2022 | | :--- | :--- | :--- | :--- | :--- | | RCM | $48,631 | $40,511 | $7,898 | $9,581 | | EHR | $35,191 | $34,763 | $6,157 | $6,163 | | Patient Engagement | $2,411 | $2,597 | $588 | $409 | | **Total** | **$86,233** | **$77,871** | **$14,643** | **$16,153** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 11% revenue growth to HRG acquisition and RCM organic growth, with net income decline due to increased costs and interest [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 2023 total revenues increased 11% to **$86.2 million** driven by RCM, but gross margin declined and pre-tax income fell due to higher costs and interest - **RCM revenues** increased by **$8.1 million (20%)** year-over-year, with **HRG acquisition** contributing **$6.1 million** and organic growth adding **$2.0 million**[144](index=144&type=chunk) - General and administrative expenses increased by **$1.5 million (11%)**, primarily due to a **$1.3 million** rise in employee health benefit costs from switching to a fully-insured plan[152](index=152&type=chunk) - Product development costs rose by **$1.8 million (22%)** due to increased public cloud migration costs and higher capitalized software amortization[150](index=150&type=chunk) - Total other expense was **$2.4 million**, driven by a **$1.8 million** increase in interest expense and the absence of a **$1.3 million** gain on contingent consideration from the prior year[155](index=155&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, liquidity included **$6.8 million** cash and **$86.3 million** available credit, with **$140.2 million** total debt outstanding - As of March 31, 2023, the company held **$6.8 million** in cash and **$86.3 million** in remaining revolving credit facility capacity[166](index=166&type=chunk) - The company's **$230 million credit facility** includes a **$70 million** term loan and **$160 million** revolving credit, with **$140.2 million** outstanding as of March 31, 2023[166](index=166&type=chunk)[167](index=167&type=chunk) - The stock repurchase program was extended to September 4, 2024, with **$16.5 million** remaining for repurchases, while quarterly dividends remain suspended[71](index=71&type=chunk)[171](index=171&type=chunk) [Backlog and Bookings](index=45&type=section&id=Backlog%20and%20Bookings) As of March 31, 2023, the twelve-month backlog was **$332 million**, with Q1 2023 bookings at **$20.9 million**, driven by **41% RCM growth** Twelve-Month Backlog (in millions) | Backlog Type | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Non-recurring system purchases | ~$8 | ~$6 | | Recurring support, maintenance & RCM | ~$324 | ~$324 | Bookings by Segment (in thousands) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | RCM | $12,100 | $8,573 | | EHR | $8,318 | $10,246 | | Patient engagement | $476 | $1,578 | | **Total Bookings** | **$20,894** | **$20,397** | [Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risk is interest rate fluctuation on **$140.2 million** variable-rate debt, where a **100 basis point** change impacts annual interest expense by **$1.4 million** - The company is exposed to interest rate risk on **$140.2 million** of outstanding borrowings, where a **100 basis point** change impacts annual interest expense by approximately **$1.4 million**[185](index=185&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures are effective at a reasonable assurance level as of the period end[187](index=187&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2023[188](index=188&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is cooperating with an **SEC subpoena** regarding accounting matters and defending a qui tam complaint alleging False Claims Act violations - On November 2, 2022, the company received an **SEC subpoena** related to accounting matters from May 1, 2019, onwards, and is cooperating with the investigation[191](index=191&type=chunk) - The company is defending against a qui tam complaint alleging **False Claims Act violations**, which it believes are without merit[98](index=98&type=chunk)[190](index=190&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to 10-K risk factors, except for revisions to economic decline and a new risk regarding potential adverse impact of bank failures - A new risk factor was added concerning the potential adverse impact of **bank failures**, noting cash deposits may exceed FDIC insurance limits[194](index=194&type=chunk)[195](index=195&type=chunk) - The risk factor related to economic conditions was updated to include the potential negative impact of a **U.S. government shutdown** or **debt ceiling failure** on customer spending[193](index=193&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company repurchased **85,884 shares** at **$28.92** average, with **$16.5 million** remaining for future repurchases Share Repurchases for Q1 2023 | Description | Shares | Average Price Paid | | :--- | :--- | :--- | | Total Shares Purchased | 85,884 | $28.92 | | Purchased as Part of Public Plan | 49,789 | - | | Purchased for Tax Withholdings | 36,095 | - |
TruBridge(TBRG) - 2022 Q4 - Annual Report
2023-03-16 20:53
FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2022 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 COMPUTER PROGRAMS AND SYSTEMS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 74-3032373 (State or Other Jurisdic ...
TruBridge(TBRG) - 2022 Q3 - Quarterly Report
2022-11-07 22:11
PART I. FINANCIAL INFORMATION The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2022, show an increase in total assets to **$438.0 million** from **$383.4 million** at year-end 2021, primarily driven by acquisitions. Total liabilities also increased to **$205.0 million** from **$160.8 million**. For the nine months ended September 30, 2022, total revenues grew to **$243.4 million** from **$206.6 million** year-over-year, while net income remained relatively flat at **$13.4 million**. Net cash from operating activities decreased to **$30.2 million** from **$34.5 million** in the prior-year period [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2022, show an increase in total assets to **$438.0 million** from **$383.4 million** at year-end 2021, primarily driven by acquisitions. Total liabilities also increased to **$205.0 million** from **$160.8 million**. For the nine months ended September 30, 2022, total revenues grew to **$243.4 million** from **$206.6 million** year-over-year, while net income remained relatively flat at **$13.4 million**. Net cash from operating activities decreased to **$30.2 million** from **$34.5 million** in the prior-year period [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2022, the company's total assets were **$438.0 million**, an increase from **$383.4 million** at December 31, 2021, primarily due to increases in Goodwill and Intangible assets from the HRG acquisition, while total liabilities rose to **$205.0 million** from **$160.8 million**, mainly from an increase in long-term debt to fund the acquisition, and total stockholders' equity increased to **$233.0 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$437,995** | **$383,350** | | Cash and cash equivalents | $15,558 | $11,431 | | Goodwill | $198,584 | $177,713 | | Intangible assets, net | $106,486 | $95,203 | | **Total Liabilities** | **$205,037** | **$160,778** | | Long-term debt, net of current portion | $137,174 | $94,966 | | **Total stockholders' equity** | **$232,958** | **$222,572** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the third quarter of 2022, total revenues increased to **$82.8 million** from **$70.1 million** in Q3 2021, driven by a **39%** increase in TruBridge revenue, however, net income decreased to **$2.2 million** from **$2.7 million** due to higher costs of sales and operating expenses, while for the nine-month period, revenues grew **18%** to **$243.4 million**, and net income saw a slight increase to **$13.4 million** from **$13.0 million** year-over-year Income Statement Summary (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total sales revenues | $82,827 | $70,091 | $243,424 | $206,629 | | Gross profit | $38,018 | $35,289 | $117,283 | $104,030 | | Operating income | $4,943 | $4,531 | $18,517 | $17,183 | | Net income | $2,161 | $2,744 | $13,350 | $13,029 | | Net income per share—diluted | $0.15 | $0.19 | $0.91 | $0.89 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, net cash provided by operating activities was **$30.2 million**, a decrease from **$34.5 million** in the same period of 2021, primarily due to unfavorable changes in working capital, while net cash used in investing activities was **$58.4 million**, mainly for the acquisition of HRG (**$43.7 million**) and software development (**$14.6 million**), and net cash provided by financing activities was **$32.3 million**, reflecting borrowings to fund the acquisition, partially offset by debt repayments and stock repurchases Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,211 | $34,474 | | Net cash used in investing activities | ($58,424) | ($66,996) | | Net cash provided by financing activities | $32,340 | $36,965 | | **Increase in cash and cash equivalents** | **$4,127** | **$4,443** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the acquisition of Healthcare Resource Group (HRG) for **$43.9 million** in cash, which added **$24.5 million** in revenue for the nine-month period, with the company's three operating segments being TruBridge, Acute Care EHR, and Post-acute Care EHR, where TruBridge showed significant revenue growth, and long-term debt increased to **$140.3 million** to fund acquisitions, while the company also changed its accounting estimate for capitalizing software development labor costs, resulting in higher capitalized amounts - On March 1, 2022, the company acquired Healthcare Resource Group, Inc. (HRG) for net cash consideration of **$43.9 million**. The acquisition contributed approximately **$24.5 million** in revenues for the nine months ended September 30, 2022[41](index=41&type=chunk)[42](index=42&type=chunk)[46](index=46&type=chunk) - The company's operating segments are TruBridge, Acute Care EHR, and Post-acute Care EHR. For the nine months ended Sep 30, 2022, TruBridge revenues were **$139.6M**, Acute Care EHR revenues were **$90.8M**, and Post-acute Care EHR revenues were **$13.1M**[105](index=105&type=chunk)[108](index=108&type=chunk) - In Q2 2021, the company changed its method for estimating labor costs for software development capitalization, which is accounted for prospectively. This change increased capitalized amounts by approximately **$4.6 million** for the year ended December 31, 2021[20](index=20&type=chunk)[57](index=57&type=chunk) - Total long-term debt obligations increased to **$142.0 million** as of September 30, 2022, from **$100.4 million** at year-end 2021, primarily due to borrowings under the revolving credit facility to fund the HRG acquisition[88](index=88&type=chunk)[201](index=201&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **18%** revenue growth for the first nine months of 2022 to the acquisitions of TruCode and HRG, and organic growth in TruBridge services, while net income remained flat due to investments and increased interest expense, with the core strategy focusing on cross-selling TruBridge services, expanding its market share, and pursuing EHR takeaway opportunities, and a significant industry trend is the client shift from perpetual licenses to SaaS models, which impacts short-term revenue but is expected to benefit long-term growth, and the company's twelve-month backlog increased to **$323 million** from **$278 million** year-over-year [Results of Operations](index=39&type=section&id=Results%20of%20Operations) For Q3 2022 vs. Q3 2021, revenues grew **18%** to **$82.8 million**, driven by a **39%** increase in TruBridge revenue, largely from the HRG acquisition (**$9.9 million**), however, net income fell to **$2.2 million** from **$2.7 million** due to higher costs, and for the nine-month period, revenues rose **18%** to **$243.4 million**, with TruBridge revenue up **41%** due to acquisitions and **11%** organic growth, while System sales and support revenue declined **4%** as customers shifted to SaaS models, and net income for the nine months was largely flat at **$13.4 million** Revenue by Segment - Q3 2022 vs Q3 2021 (in thousands) | Segment | Q3 2022 | Q3 2021 | Change (%) | | :--- | :--- | :--- | :--- | | TruBridge | $47,878 | $34,531 | +39% | | System sales and support | $34,949 | $35,560 | -2% | Revenue by Segment - Nine Months 2022 vs 2021 (in thousands) | Segment | Nine Months 2022 | Nine Months 2021 | Change (%) | | :--- | :--- | :--- | :--- | | TruBridge | $139,569 | $98,736 | +41% | | System sales and support | $103,855 | $107,893 | -4% | - The shift in customer preference to a SaaS license model continues, with **100%** of new acute care EHR installations in the first nine months of 2022 being SaaS, compared to **63%** in 2021. This reduces non-recurring revenue but increases recurring revenue over time[130](index=130&type=chunk)[167](index=167&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, the company had **$15.6 million** in cash and **$86.3 million** available under its revolving credit facility, and in May 2022, the credit facilities were amended and increased to **$230 million** (**$70M** term loan, **$160M** revolver) to support growth, while operating cash flow for the nine-month period decreased to **$30.2 million** from **$34.5 million** year-over-year due to an increase in accounts receivable, and the company's twelve-month backlog grew to approximately **$323 million**, up from **$272 million** a year prior, driven by recurring revenue contracts - Principal sources of liquidity as of Sep 30, 2022, were **$15.6 million** in cash and **$86.3 million** in remaining borrowing capacity under the revolving credit facility[196](index=196&type=chunk) Twelve-Month Backlog (in millions) | Backlog Type | Sep 30, 2022 | Sep 30, 2021 | | :--- | :--- | :--- | | Non-recurring system purchases | ~$7 | ~$6 | | Recurring payments | ~$316 | ~$272 | | **Total** | **~$323** | **~$278** | Bookings (in thousands) | Period | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | TruBridge | $37,260 | $22,009 | | System sales and support | $27,474 | $32,641 | | **Total Bookings** | **$64,734** | **$54,650** | [Quantitative and Qualitative Disclosures about Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure is related to interest rate fluctuations on its variable-rate debt, with **$142.0 million** in outstanding borrowings under credit facilities tied to the Secured Overnight Financing Rate (SOFR) as of September 30, 2022, where a hypothetical **100 basis point** (**1%**) change in the interest rate would result in an approximate **$1.4 million** annual change in interest expense, and the company does not use derivative financial instruments to manage this risk - The company is exposed to interest rate risk on its **$142.0 million** of outstanding variable-rate debt[216](index=216&type=chunk) - A **100 basis point** change in interest rates would impact annual interest expense by approximately **$1.4 million**[216](index=216&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of September 30, 2022, and the company is in the process of integrating the internal controls of the newly acquired HRG business, which was excluded from the formal assessment for this period, with no other material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that disclosure controls and procedures are effective at the reasonable assurance level[219](index=219&type=chunk) - The assessment of internal control over financial reporting excluded the recently acquired HRG business, as permitted by SEC guidance. HRG represented approximately **11%** of total assets as of September 30, 2022[220](index=220&type=chunk)[222](index=222&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, unregistered sales of equity securities, and exhibits [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation arising in the ordinary course of business but is not currently involved in any claims considered material to its financial condition or results of operations - The company is not currently involved in any material legal proceedings outside the ordinary course of business[224](index=224&type=chunk) [Risk Factors](index=58&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to risk factors were reported for the period[225](index=225&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of 2022, the company repurchased **133,520 shares** of its common stock for approximately **$4.0 million** under its publicly announced stock repurchase program, and as of September 30, 2022, approximately **$21.6 million** remained available for future repurchases under the program, which was extended to **September 4, 2024** Stock Repurchases (Q3 2022) | Metric | Value | | :--- | :--- | | Total Shares Purchased | 133,520 | | Average Price Paid per Share | $29.96 | | Value Remaining in Program | $21,561,995 | - On July 27, 2022, the Board of Directors extended the expiration date of the stock repurchase program to **September 4, 2024**[226](index=226&type=chunk) [Other Information](index=59&type=section&id=Item%205.%20Other%20Information) There was no other information to report for this period - None[229](index=229&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) The report lists several exhibits filed, including amendments to agreements, employment contracts, and required certifications by the CEO and CFO under the Sarbanes-Oxley Act
TruBridge(TBRG) - 2022 Q3 - Earnings Call Transcript
2022-11-01 23:03
Financial Data and Key Metrics Changes - Total revenue for Q3 2022 was $83 million, with a year-over-year increase of 18% [6][37] - EBITDA for the quarter was $13.3 million, representing a 9% increase compared to the prior year [7][43] - Gross margin decreased to 45.9%, down 440 basis points year-over-year due to the inclusion of lower-margin services from HRG and implementation delays in GRH [41] - Operating expenses as a percentage of revenue improved to 39.9%, down from 43.9% year-over-year [42] Business Line Data and Key Metrics Changes - TruBridge generated $47.9 million in revenue, a 39% increase year-over-year, with 94% of its revenue being recurring [6][37] - Evident, the core EHR business, accounted for about 40% of total revenue, but bookings declined year-over-year due to a shift towards RCM services [19][20] - Get Real Health (GRH) contributed just over $1 million in revenue, with growth expected as the business matures [18][38] Market Data and Key Metrics Changes - The TruBridge pipeline tripled from $5.6 million to $17.3 million year-over-year, indicating strong demand for services [13] - Cross-sell bookings increased by 30% sequentially and were more than 3.5 times those of Q3 2021 [36] - The overall market for RCM services is robust, particularly in a post-COVID environment where hospitals face resource constraints [12] Company Strategy and Development Direction - The company aims to strengthen relationships with partners and customers, focusing on improving client experience and delivering innovative product enhancements [10] - CPSI is committed to growing its core business, operational efficiency, and making key investments in adjacent markets like Get Real Health [28][29] - Leadership changes were announced to align business units with the go-to-market strategy, enhancing operational transparency and excellence [21][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging, with hospitals facing financial pressures and staffing shortages [12] - The company reiterated its revenue guidance for the full year at $320 million to $330 million, despite a slight reduction in EBITDA margin expectations due to delays in GRH implementations [46][47] - Management expressed confidence in the long-term outlook, emphasizing the importance of strategic acquisitions and customer satisfaction [48] Other Important Information - CPSI repurchased $4 million of its shares during the quarter as part of its capital allocation strategy [45] - The company is focused on transitioning to a business model with more predictable and recurring revenue streams [40] Q&A Session Summary Question: Pricing Environment Impact - Management indicated that they have not seen significant price hikes in the EHR market, with prices holding steady or slightly decreasing due to increased efficiency [52][53] Question: Get Real Health Delays - Delays in GRH implementations were attributed to customer-driven issues, including integration challenges and marketing strategy timing [56][57] Question: Partnership with i2i Population Health - The partnership is expected to contribute a negligible revenue increment in 2023 but has long-term significance due to existing integrations and customer needs for quality-based reporting [60][62]
TruBridge(TBRG) - 2022 Q2 - Quarterly Report
2022-08-08 20:06
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 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 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 ...
TruBridge(TBRG) - 2022 Q2 - Earnings Call Transcript
2022-08-02 22:12
Computer Programs and Systems, Inc. (CPSI) Q2 2022 Earnings Conference Call August 2, 2022 4:30 PM ET Company Participants Dru Anderson - IR, Corporate Communications, Inc. Chris Fowler - President and CEO Matt Chambless - CFO David Dye - Chief Growth Officer Conference Call Participants Jeff Garro - Piper Sandler George Hill - Deutsche Bank Joy Zhang - SVB Securities Operator Greetings and welcome to CPSI Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode ...
TruBridge(TBRG) - 2022 Q1 - Quarterly Report
2022-05-10 20:05
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of stockholders' equity, and cash flow statements, along with detailed notes explaining the basis of presentation, accounting policies, business combinations, and other financial details for the three months ended March 31, 2022 and 2021 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the Company's financial position, detailing assets, liabilities, and equity as of March 31, 2022, and December 31, 2021 | Metric (In thousands) | March 31, 2022 | December 31, 2021 | Change | % Change | | :-------------------- | :------------- | :---------------- | :----- | :------- | | Cash and cash equivalents | $15,981 | $11,431 | $4,550 | 39.8% | | Total current assets | $80,797 | $68,998 | $11,799| 17.1% | | Total assets | $440,330 | $383,350 | $56,980| 14.9% | | Total current liabilities | $46,735 | $46,427 | $308 | 0.7% | | Total liabilities | $209,578 | $160,778 | $48,800| 30.3% | | Total stockholders' equity | $230,752 | $222,572 | $8,180 | 3.7% | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section outlines the Company's financial performance, presenting revenues, expenses, and net income for the three months ended March 31, 2022, and 2021 | Metric (In thousands, except per share data) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | % Change | | :------------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Total sales revenues | $77,871 | $68,005 | $9,866 | 14.5% | | Gross profit | $39,815 | $34,850 | $4,965 | 14.2% | | Operating income | $8,986 | $4,914 | $4,072 | 82.9% | | Income before taxes | $9,476 | $5,101 | $4,375 | 85.8% | | Net income | $8,113 | $4,144 | $3,969 | 95.8% | | Net income per common share—basic | $0.55 | $0.29 | $0.26 | 89.7% | | Net income per common share—diluted | $0.55 | $0.28 | $0.27 | 96.4% | [Condensed Consolidated Statement of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Stockholders%27%20Equity) This section details changes in the Company's equity, including net income, stock-based compensation, and treasury stock transactions, for the period from December 31, 2021, to March 31, 2022 | Metric (In thousands) | Balance at Dec 31, 2021 | Net Income | Stock-based Compensation | Treasury Stock Acquired | Balance at Mar 31, 2022 | | :-------------------- | :---------------------- | :--------- | :----------------------- | :---------------------- | :---------------------- | | Total Stockholders' Equity | $222,572 | $8,113 | $1,717 | $(1,650) | $230,752 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2022, and 2021 | Metric (In thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net cash provided by operating activities | $11,817 | $13,710 | $(1,893) | | Net cash used in investing activities | $(47,680) | $(1,365) | $(46,315) | | Net cash provided by (used in) financing activities | $40,413 | $(7,000) | $47,413 | | Increase in cash and cash equivalents | $4,550 | $5,345 | $(795) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Presentation](index=9&type=section&id=1.%20Basis%20of%20Presentation) The unaudited condensed consolidated financial statements are prepared in accordance with SEC rules and U.S. GAAP, including all necessary recurring adjustments, and consolidate CPSI and its wholly-owned subsidiaries - The Company changed its method of estimating capitalizable labor costs for software development in Q2 2021, moving from an estimated time-equivalent for workload metrics to a distribution of agile workload metrics between capitalizable and non-capitalizable units of work, with this change accounted for prospectively[22](index=22&type=chunk) - The condensed consolidated financial statements include the accounts of CPSI and its wholly-owned subsidiaries: TruBridge, Evident, Healthland Holding Inc. (including Healthland, Rycan, and American HealthTech), iNetXperts d/b/a Get Real Health, TruCode, and Healthcare Resource Group, Inc.[23](index=23&type=chunk) [2. Recent Accounting Pronouncements](index=9&type=section&id=2.%20Recent%20Accounting%20Pronouncements) No new accounting standards adopted in 2022 or yet to be adopted are expected to have a material impact on the Company's consolidated financial statements - No new accounting standards adopted in **2022** or yet to be adopted are expected to have a material impact on the consolidated financial statements[24](index=24&type=chunk)[25](index=25&type=chunk) [3. Revenue Recognition](index=9&type=section&id=3.%20Revenue%20Recognition) Revenue is recognized using a 5-step model upon transfer of control, with specific recognition patterns for TruBridge services, system sales, support, and SaaS arrangements - TruBridge provides business processing services (BPS) and professional IT services, with fees recognized over the contractual relationship period based on transaction volume or percentage of client accounts receivable collections[29](index=29&type=chunk)[30](index=30&type=chunk) - For System Sales and Support, perpetual software licenses, installation, conversion, and training are accounted for as a single performance obligation, with revenue recognized upon module implementation completion, while SaaS arrangements for EHR software and related services are a single performance obligation, with revenue recognized monthly over the contract term[35](index=35&type=chunk) Deferred Revenue (In thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Beginning balance | $11,529 | $8,130 | | Deferred revenue recorded | $9,263 | $5,847 | | Less deferred revenue recognized as revenue | $(6,661) | $(5,144) | | Ending balance | $14,131 | $8,833 | Costs to Obtain and Fulfill Contracts (In thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Beginning balance | $7,312 | $5,992 | | Costs to obtain and fulfill contracts capitalized | $3,047 | $1,836 | | Less costs to obtain and fulfill contracts recognized as expense | $(1,799) | $(1,475) | | Ending balance | $8,560 | $6,353 | [4. Business Combination](index=15&type=section&id=4.%20Business%20Combination) The Company acquired Healthcare Resource Group, Inc. (HRG) on March 1, 2022, for **$43.4 million** cash, adding RCM solutions, and reversed **$1.25 million** of contingent consideration for the TruCode acquisition due to revised earnings estimates - On March 1, 2022, CPSI acquired Healthcare Resource Group, Inc. (HRG) for **$43.4 million** cash, enhancing its revenue cycle management (RCM) solutions and consulting services[44](index=44&type=chunk)[45](index=45&type=chunk) HRG Acquisition Preliminary Purchase Price Allocation (In thousands) | Asset/Liability | Purchase Price Allocation | | :---------------- | :------------------------ | | Intangible assets | $24,200 | | Goodwill | $20,380 | | Net assets acquired | $47,349 | - The HRG acquisition contributed approximately **$3.8 million** in revenues and **$0.5 million** in pre-tax net income to CPSI's consolidated statement of operations for the three months ended March 31, 20
TruBridge(TBRG) - 2022 Q1 - Earnings Call Transcript
2022-05-04 03:10
Computer Programs and Systems, Inc. (CPSI) Q1 2022 Results Earnings Conference Call May 4, 2022 4:30 PM ET Company Participants Dru Anderson - Investor Relations, Corporate Communications, Inc. Boyd Douglas - President and Chief Executive Officer Matt Chambless - Chief Financial Officer Chris Fowler - Chief Operating Officer and President, TruBridge David Dye - Chief Growth Officer Conference Call Participants Jeff Garro - Piper Sandler Joy Zhang - SVB Leerink LLC Operator Greetings and welcome to the CPSI ...
TruBridge(TBRG) - 2021 Q4 - Annual Report
2022-03-15 20:02
FOR THE FISCAL YEAR ENDED December 31, 2021 OR 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 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Common Stock, par value $.001 per share CPSI The NASDAQ Stock Market LLC FOR THE TRANSITION PERIOD FROM TO . Commission file number: 000-49796 Title of each class Trading symbol Name of each exchange on wh ...