CPSI(US:CPSI)2024-05-10 19:00Financial Performance - Total revenues for the three months ended March 31, 2024, were $83.247 million, a decrease of 3.4% compared to $86.233 million for the same period in 2023[193]. - Adjusted EBITDA for the three months ended March 31, 2024, was $9.454 million, down 35.4% from $14.643 million in the same period of 2023[194]. - The company recorded a net loss of $2.516 million for the three months ended March 31, 2024, compared to a net income of $3.084 million for the same period in 2023[194]. - Operating income for Q1 2024 was a loss of $1.458 million, compared to an operating income of $6.295 million in Q1 2023[230]. - Total expenses for Q1 2024 increased to $84.705 million, or 101.8% of total revenues, compared to $79.938 million, or 92.7% of total revenues in Q1 2023[230]. - Net loss for the first quarter of 2024 was $2.5 million, a decrease of $5.6 million from a net income of $3.1 million in the first quarter of 2023[267]. Revenue Segments - Revenue Cycle Management (RCM) segment generated $53.038 million in revenue, accounting for 57% of total consolidated revenue for 2023[201]. - RCM revenues increased by $4.4 million, or 9%, compared to the first quarter of 2023, driven by the acquisition of Viewgol, which contributed $4.7 million[247]. - Recurring EHR revenues decreased by $5.0 million, or 16%, in Q1 2024 compared to Q1 2023, driven by the sale of American HealthTech, Inc. and customer migration to SaaS arrangements[234]. - Acute Care EHR revenues decreased by $1.7 million in Q1 2024, attributed to a decline in support revenues due to customer migration and attrition from the Centriq platform[234]. - Non-recurring EHR revenues decreased by $2.1 million, or 58%, compared to the first quarter of 2023, reflecting a strategic shift towards increasing recurring revenues[260]. Strategic Initiatives - The company aims to enhance its recurring revenue base, which is crucial for stabilizing revenues and cash flows[206]. - The company plans to expand RCM services beyond its existing EHR customer base to drive long-term revenue growth[206]. - The company changed its corporate name to TruBridge, Inc. on March 4, 2024, reflecting its strategic shift towards RCM services[201]. - The shift towards a SaaS license model has increased from 12% of annual new acute care EHR installations in 2018 to 100% in 2023 and Q1 2024, impacting short-term revenue growth but benefiting long-term profitability[209]. Cost Management - Costs associated with EHR revenues decreased by $5.1 million, or 31%, in Q1 2024 compared to Q1 2023, due to payroll and software cost reductions following the sale of American HealthTech[236]. - The company plans to enhance margins through cost containment measures and increased operational efficiencies, despite anticipated margin pressure from the transition to SaaS arrangements[221]. - General and administrative expenses increased by $4.9 million, or 34%, compared to the first quarter of 2023, influenced by the acquisition of Viewgol and increased severance costs[252]. - Product development expenses increased by $2.3 million, or 28%, compared to the first quarter of 2023, due to increased costs related to migrating to a public cloud environment[263]. Cash and Debt Management - Cash and cash equivalents as of March 31, 2024, were $4.1 million, up from $3.8 million as of December 31, 2023, with remaining borrowing capacity under the revolving credit facility at $36.6 million[257]. - As of March 31, 2024, the company had $63.0 million in principal amount outstanding under the term loan facility and $123.4 million under the revolving credit facility[293]. - The average interest rate for the revolving credit facility was 8.42% as of March 31, 2024[293]. - A 100 basis point change in interest rate on borrowings would result in a change in interest expense of approximately $1.9 million annually[302]. - The required consolidated fixed charge coverage ratio was decreased from 1.25:1.00 to 1.15:1.00 for each fiscal quarter ending March 31, 2024, through December 31, 2024[294]. Market Trends - The healthcare industry is increasingly pressured to adopt value-based reimbursement models, which may boost demand for healthcare IT solutions[207]. - The company achieved a retention rate of 92.1% in 2023, with a slight decline to 91.1% in Q1 2024 due to increased attrition from non-flagship products[220]. Bookings and Backlog - Total bookings for the three months ended March 31, 2024, were $23.569 million, an increase from $19.847 million in the same period of 2023[299]. - RCM bookings increased by $2.3 million, or 19%, in Q1 2024 compared to Q1 2023, while cross-sell bookings decreased by $0.5 million, or 9%[283]. - As of March 31, 2024, the company had a twelve-month backlog of approximately $11 million for non-recurring system purchases and approximately $321 million for recurring payments under support and maintenance and RCM services[282]. Stock Activity - The company repurchased 41,000 shares of common stock at an average price of $8.33 during March 2024[324].