☐ 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. 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, 2021 (Exact Name of Registrant as Specified in Its Charter) Delaware 74-3032373 (State or Other Juri ...

CONTACT Tracey Schroeder Chief Marketing Officer Tracey.schroeder@cpsi.com (251) 639-8100 CPSI ANNOUNCES SECOND QUARTER 2021 RESULTS Highlights for Second Quarter 2021: MOBILE, ALA. (August 3, 2021) – CPSI (NASDAQ: CPSI), a community healthcare solutions company, today announced results for the quarter ended June 30, 2021. Total revenues for the quarter ended June 30, 2021, were $68.5 million, compared with total revenues of $59.5 million for the prior-year second quarter. GAAP net income for the quarter en ...

Computer Programs and Systems, Inc. (CPSI) Q2 2021 Earnings Conference Call August 3, 2021 4:30 PM ET Company Participants Dru Anderson - Corporate Communications John Douglas - President, CEO & Director Matt Chambless - CFO, Secretary & Treasurer Christopher Fowler - COO David Dye - Chief Growth Officer & Director Conference Call Participants Jeffrey Garro - Piper Sandler & Co. Steven Halper - Cantor Fitzgerald & Co. Yueli Zhang - SVB Leerink Operator Greetings, and welcome to CPSI Second Quarter 2021 Earn ...

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) Delaware 74-3032373 (State or Other Jurisdict ...

Computer Programs and Systems, Inc. (CPSI) Q1 2021 Results Conference Call May 11, 2021 9:00 AM ET Company Participants Drew Anderson - Investor Relations Boyd Douglas - President and Chief Executive Officer Matthew Chambless - Chief Financial Officer David Dye - Chief Growth Officer Conference Call Participants Donald Hooker - KeyBanc Capital Markets Joy Zhang - SVB Leerink Gene Mannheimer - Dougherty and Company Operator Greetings, and welcome to the CPSI First Quarter 2021 Earnings Conference Call. At th ...

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, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Address of Principal Executive Offices) (Zip Code) Delaware 74-3032373 (I.R.S. Employer Identification No.) (251) 639-8100 (Registrant's Telephone Number, Including Are ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) CPSI is a provider of healthcare solutions and services for community hospitals and post-acute care facilities through its four companies: Evident, American HealthTech, TruBridge, and Get Real Health [Overview](index=6&type=section&id=Overview) CPSI provides healthcare solutions and services for community hospitals and post-acute care facilities through its four companies, generating $264.5 million in 2020 revenues - CPSI's business is structured around four companies: Evident, TruBridge, American HealthTech (AHT), and Get Real Health, each serving specific functions within the healthcare IT sector[20](index=20&type=chunk)[25](index=25&type=chunk) - The company's target market for acute care solutions includes community hospitals with fewer than 200 beds, while TruBridge services target hospitals up to 600 beds. The post-acute market consists of approximately 15,500 skilled nursing facilities[21](index=21&type=chunk) - Total revenues for the fiscal year 2020 were **$264.5 million**[21](index=21&type=chunk) [Industry Dynamics](index=6&type=section&id=Industry%20Dynamics) The U.S. healthcare industry, a significant portion of GDP, is shaped by economic shifts, regulatory changes, and the impact of COVID-19 on technology adoption - The healthcare industry constituted about **17.7% of U.S. GDP in 2019** and is projected to reach **19.7% by 2028**[22](index=22&type=chunk) - Community hospitals are heavily impacted by Medicare and Medicaid reimbursement changes, with downward pressure on payments from initiatives like the Budget Control Act and the ACA[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The COVID-19 pandemic has accelerated the adoption of virtual healthcare, prompting CPSI to expedite the release of its 'Talk With Your Doc' telehealth portal in April 2020[37](index=37&type=chunk)[38](index=38&type=chunk) - The ARRA/HITECH Act positively impacted business by incentivizing EHR adoption, but the passing of the October 1, 2019 compliance deadline for 'Promoting Interoperability' (formerly Meaningful Use Stage 3) led to reduced related revenue opportunities in 2020[33](index=33&type=chunk)[34](index=34&type=chunk) [Strategy](index=9&type=section&id=Strategy) CPSI's strategy focuses on growing TruBridge services, expanding market share, and optimizing capital allocation by shifting from dividends to stock repurchases - A 2020 strategic review confirmed the company's focus on cross-selling TruBridge services, expanding TruBridge's market, and pursuing competitive EHR takeaway opportunities[39](index=39&type=chunk) - CPSI is expanding its EHR product into the Canadian market and targeting other U.S. providers like ambulatory surgery centers and behavioral health facilities[49](index=49&type=chunk) - The capital allocation strategy has evolved to prioritize flexibility. Key actions in 2020 include refinancing debt to increase borrowing capacity, authorizing a **$30.0 million stock repurchase program**, and indefinitely suspending quarterly dividends[48](index=48&type=chunk) [Our Products and Services](index=12&type=section&id=Our%20Products%20and%20Services) CPSI provides a comprehensive suite of IT solutions and services, including acute care EHRs via Evident, post-acute EHRs via AHT, and RCM/IT services via TruBridge and Get Real Health - Evident offers two main acute care EHR platforms: Thrive (the legacy CPSI system) and Centriq (a web-based platform acquired from Healthland)[53](index=53&type=chunk)[54](index=54&type=chunk)[57](index=57&type=chunk) - American HealthTech (AHT) provides a comprehensive EHR solution for the post-acute care market, including skilled nursing and assisted living facilities[58](index=58&type=chunk) - TruBridge provides a suite of services including Revenue Cycle Management (RCM), consulting, managed IT (including cloud hosting and security), and patient engagement solutions acquired through Get Real Health[61](index=61&type=chunk) - The company offers a Cloud EHR service, a 'Software as a Service' (SaaS) model, allowing clients access to an advanced EHR without a significant initial capital outlay[59](index=59&type=chunk) [Human Capital](index=23&type=section&id=Human%20Capital) CPSI employed approximately 2,000 non-unionized individuals as of year-end 2020, focusing on employee well-being, diversity, and remote work flexibility - As of year-end 2020, the company employed approximately **2,000 people**, none of whom are covered by a collective bargaining agreement[98](index=98&type=chunk) - In response to COVID-19, the company transitioned most employees to remote work and committed to no pandemic-related layoffs or furloughs in 2020[100](index=100&type=chunk)[101](index=101&type=chunk) - The Inclusion, Diversity, Equity Alliance (IDEA) was launched in 2020 to strengthen diversity and inclusion initiatives across the company[103](index=103&type=chunk) - CPSI operates through four main companies: Evident (Acute Care EHR), American HealthTech (AHT, Post-acute Care EHR), TruBridge (RCM and IT services), and Get Real Health (patient engagement)[20](index=20&type=chunk) - The primary target market for acute care solutions is community hospitals with fewer than 100 beds, which constitute approximately **98% of its acute care hospital EHR customer base**[21](index=21&type=chunk) - The company's strategy focuses on increasing TruBridge's market share, pursuing competitive EHR replacement opportunities, and differentiating through client experience[39](index=39&type=chunk) Backlog as of December 31, 2020 and 2019 | Backlog Type | Dec 31, 2020 (approx.) | Dec 31, 2019 (approx.) | | :--- | :--- | :--- | | Non-recurring system purchases | $10 million | $15 million | | Recurring support, maintenance, and TruBridge services | $242 million | $235 million | [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including COVID-19 impacts, intense competition, regulatory uncertainty, cybersecurity threats, substantial indebtedness, and potential goodwill impairment - The COVID-19 pandemic has negatively impacted revenues due to decreased patient volumes at client hospitals and has heightened cybersecurity risks with the shift to remote work[122](index=122&type=chunk)[124](index=124&type=chunk) - The company faces significant competition from larger, better-resourced companies like Cerner, Meditech, Allscripts, and Epic in the acute care EHR market[157](index=157&type=chunk)[158](index=158&type=chunk) - The company's substantial indebtedness of approximately **$78.1 million as of December 31, 2020**, may limit operational flexibility and requires significant cash flow to service[199](index=199&type=chunk)[200](index=200&type=chunk) - There is a risk of goodwill impairment, particularly for the Post-acute Care EHR reporting unit, which recorded a **$28.0 million impairment charge in 2017**[209](index=209&type=chunk) - Cybersecurity breaches are a significant risk, with the report noting that healthcare information is a prime target and referencing the SolarWinds incident as an example of widespread vulnerabilities[177](index=177&type=chunk)[179](index=179&type=chunk) [Properties](index=46&type=section&id=Item%202.%20Properties) CPSI's primary corporate campus is in Mobile, Alabama, supplemented by leased office facilities across several U.S. states - The main corporate campus in Mobile, Alabama, consists of approximately **135,500 square feet of office space on 16.5 acres**[228](index=228&type=chunk) - The company leases additional facilities in Fairhope, AL; Pottsville, PA; Mobile, AL; Monroe, LA; Glenwood, MN; Marshall, MN; Plymouth, MN; Ridgeland, MS; and Rockville, MD[229](index=229&type=chunk) [Legal Proceedings](index=46&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation but reports no material legal proceedings outside the ordinary course of business - The company states it is not currently involved in any material legal proceedings outside the ordinary course of business[230](index=230&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=47&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CPSI's common stock trades on NASDAQ, with the company suspending dividends and initiating a $30.0 million stock repurchase program in 2020 - On September 4, 2020, the Board of Directors indefinitely suspended all quarterly dividends and approved a stock repurchase program of up to **$30.0 million**[235](index=235&type=chunk)[236](index=236&type=chunk) Equity Securities Repurchased in Q4 2020 | Period | Total Shares Purchased | Average Price Paid per Share | Total Value (approx.) | | :--- | :--- | :--- | :--- | | Oct 2020 | — | — | — | | Nov 2020 | 8,835 | $29.15 | $257,532 | | Dec 2020 | 38,065 | $27.51 | $1,047,168 | | **Total Q4** | **46,900** | **$27.82** | **$1,304,700** | [Selected Financial Data](index=48&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes five years of financial data, showing declining revenues, fluctuating net income, and stable total assets Selected Financial Data (2018-2020) | (In thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Total sales revenues | $264,488 | $274,634 | $280,411 | | Operating income | $21,054 | $24,583 | $24,882 | | Net Income | $14,246 | $20,468 | $17,632 | | Net income per share - diluted | $0.98 | $1.43 | $1.26 | | Total assets | $326,272 | $339,589 | $327,746 | | Total stockholders' equity | $200,000 | $184,347 | $159,783 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 4% revenue decrease in 2020, driven by COVID-19 and a shift to SaaS, alongside increased operating cash flow and debt refinancing [Results of Operations (2020 vs. 2019)](index=53&type=section&id=Results%20of%20Operations) Total revenues decreased by 4% in 2020, driven by lower system sales and support, despite TruBridge revenue growth, leading to reduced net income Revenue by Segment (2020 vs 2019) | Segment (In thousands) | 2020 | 2019 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | System sales and support | $152,954 | $165,352 | ($12,398) | -7.5% | | TruBridge | $111,534 | $109,282 | $2,252 | +2.1% | | **Total sales revenues** | **$264,488** | **$274,634** | **($10,146)** | **-3.7%** | - Non-recurring system sales and support revenues decreased by **20% ($7.8 million)**, primarily due to a drop in MU3-related revenues and the impact of COVID-19 on new installations[263](index=263&type=chunk) - Net income fell to **$14.2 million in 2020** from **$20.5 million in 2019**. The decrease is primarily attributed to lower revenues and the absence of a **$5.0 million gain on contingent consideration** that was recognized in 2019[277](index=277&type=chunk) - The effective tax rate increased from **14% in 2019 to 24% in 2020**. The 2019 rate was significantly lowered by the non-taxable gain on contingent consideration[276](index=276&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) CPSI's liquidity at year-end 2020 included $12.7 million cash and $105.0 million available credit, with operating cash flow increasing to $49.1 million after debt refinancing - On June 16, 2020, the company entered into an Amended and Restated Credit Agreement, increasing its credit facilities to **$185 million** ($75M term loan, $110M revolver)[279](index=279&type=chunk)[454](index=454&type=chunk) Bookings by Segment (2020 vs 2019) | Segment (In thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Acute Care EHR | $42,449 | $47,217 | | Post-acute Care EHR | $6,341 | $5,089 | | TruBridge | $33,238 | $27,209 | | **Total bookings** | **$82,028** | **$79,515** | - TruBridge bookings grew **22% to a record $33.2 million in 2020**, driven by expansion outside the traditional EHR customer base[294](index=294&type=chunk) Contractual Obligations as of Dec 31, 2020 | Obligation (In thousands) | Total | Less than 1 year | 1-3 Years | 3-5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $7,679 | $1,518 | $3,779 | $1,468 | $914 | | Debt obligations | $78,125 | $3,750 | $10,312 | $64,063 | $0 | | Interest on debt obligations | $8,657 | $2,178 | $4,025 | $2,454 | $0 | | **Total** | **$94,461** | **$7,446** | **$18,116** | **$67,985** | **$914** | - Total revenues decreased by **4% in 2020 to $264.5 million**, primarily due to the passing of the MU3 compliance deadline and the impact of COVID-19[259](index=259&type=chunk) - The shift to SaaS arrangements continues, with **68% of new acute care EHR installations in 2020** using this model, compared to 43% in 2019 and 12% in 2018[251](index=251&type=chunk) - Net cash from operating activities increased from **$43.6 million in 2019 to $49.1 million in 2020**, mainly due to favorable changes in accounts receivable and financing receivables[259](index=259&type=chunk)[281](index=281&type=chunk) - In February 2021, the company committed to a reduction in force affecting **1% of its workforce (21 employees)**, expecting to incur **$2.7 million in termination costs** and realize **$3.9 million in annual savings**[256](index=256&type=chunk)[472](index=472&type=chunk) - The fair value of the Acute Care EHR reporting unit exceeded its carrying value by **12%** in the October 1, 2020 goodwill impairment test, indicating a heightened risk of future impairment if operating results decline[319](index=319&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2020 and prior years, including the unqualified auditor's report and detailed financial notes - The independent registered public accounting firm, Grant Thornton LLP, issued an unqualified opinion on the consolidated financial statements and on the effectiveness of internal control over financial reporting[331](index=331&type=chunk)[338](index=338&type=chunk) - The auditor's report identified the goodwill impairment assessment as a critical audit matter, noting the significant management judgment involved in forecasting future revenues, expenses, and discount rates[343](index=343&type=chunk)[344](index=344&type=chunk) Consolidated Balance Sheet Data (Year-End) | (In thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Total Current Assets | $67,144 | $66,832 | | Total Assets | $326,272 | $339,589 | | Total Current Liabilities | $37,442 | $41,930 | | Total Liabilities | $126,272 | $155,242 | | Total Stockholders' Equity | $200,000 | $184,347 | [Controls and Procedures](index=103&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with no material changes - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[486](index=486&type=chunk) - No material changes were made to the internal control over financial reporting during the fourth quarter of 2020[487](index=487&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=105&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance, including codes of conduct, is incorporated by reference from the 2021 Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement[494](index=494&type=chunk) - The company has a Code of Business Conduct and Ethics for all employees and a specific Code of Ethics for the CEO and Senior Financial Officers[493](index=493&type=chunk) [Executive Compensation](index=105&type=section&id=Item%2011.%20Executive%20Compensation) Details on executive compensation are incorporated by reference from the 2021 Proxy Statement - Details on executive compensation are incorporated by reference from the 2021 Proxy Statement[495](index=495&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=106&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized under equity compensation plans and incorporates other ownership information from the 2021 Proxy Statement Equity Compensation Plan Information as of December 31, 2020 | Plan Category | Securities to be issued upon exercise (a) | Weighted-average exercise price (b) | Securities available for future issuance (c) | | :--- | :--- | :--- | :--- | | Approved by stockholders | 665,819 | N/A | 645,767 | | Not approved by stockholders | 3,927 | $5.94 | N/A | | **Total** | **669,746** | **$5.94** | **645,767** | [Certain Relationships and Related Transactions, and Director Independence](index=106&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information on related transactions and director independence is incorporated by reference from the 2021 Proxy Statement[500](index=500&type=chunk) [Principal Accountant Fees and Services](index=106&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Details on principal accountant fees and services are incorporated by reference from the 2021 Proxy Statement - Details on principal accountant fees and services are incorporated by reference from the 2021 Proxy Statement[501](index=501&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=107&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including governance documents, material contracts, and executive certifications - The financial statements and schedules are included in Part II, Item 8[503](index=503&type=chunk) - A detailed list of exhibits, including governance documents, material agreements, and executive certifications, is provided in the Exhibit Index[504](index=504&type=chunk)[512](index=512&type=chunk)[513](index=513&type=chunk)

CONTACT Tracey Schroeder Chief Marketing Officer Tracey.schroeder@cpsi.com (251) 639-8100 CPSI ANNOUNCES FOURTH QUARTER AND YEAR-END 2020 RESULTS Company Launches Transformation Initiative with Goal of $80 million in Adjusted EBITDA in 2024; Targets Three-Year Average Organic Recurring Revenue Growth Rate of 5% to 8% Highlights for Fourth Quarter 2020: • Revenues of $66.8 million; • GAAP net income of $3.1 million and non-GAAP net income of $7.8 million; • GAAP earnings per diluted share of $0.22 and non-GA ...

Computer Programs and Systems, Inc. (CPSI) Q4 2020 Earnings Conference Call February 9, 2021 4:30 PM ET Company Participants Boyd Douglas - President & Chief Executive Officer Matt Chambless - Chief Financial Officer Chris Fowler - Chief Operating Officer David Dye - Chief Growth Officer Conference Call Participants Drew Anderson - Investor Relations Steve Halper - Cantor Donald Hooker - KeyBanc Joy Zhang - SVB Leerink Sandy Draper - Truist Securities Operator Greetings, and welcome to the CPSI Q4 2020 Earn ...

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, 2020 ☐ 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 Juri ...