Financial Performance - Total revenues for the first nine months of 2024 were $251.8 million, a decrease of 1% from $253.6 million in the same period of 2023[170]. - Net loss for the first nine months of 2024 increased to $17.4 million from $3.3 million in the prior-year period[170]. - Net loss for the third quarter of 2024 was $9.8 million, or $(0.66) per share, compared to a net loss of $3.6 million, or $(0.24) per share, for the third quarter of 2023[191]. - Net loss for the first nine months of 2024 increased by $14.1 million to $17.4 million, or $(1.17) per share, compared to a net loss of $3.3 million, or $(0.23) per share, for the same period in 2023[208]. - Patient Care adjusted EBITDA decreased by $5.3 million, or 31%, compared to the first nine months of 2023, primarily due to declining revenues[217]. Revenue Segments - Financial Health revenues comprised 57% of the company's consolidated revenue for 2023[149]. - Financial Health revenues increased by $18.4 million, or 13%, compared to the first nine months of 2023, primarily due to the acquisition of Viewgol[192]. - Recurring Financial Health revenues were $53.1 million, or 98% of total Financial Health revenues[174]. - Total Patient Care revenues decreased by $6.6 million, or 18%, compared to the third quarter of 2023[178]. - Total Patient Care revenue for the first nine months of 2024 was $90.4 million, down from $110.6 million in the same period of 2023, representing a decrease of $20.2 million, or 18%[212]. - Recurring Patient Care revenues decreased by $18.3 million, or 18%, compared to the first nine months of 2023, primarily due to the sale of AHT in January 2024[196]. - Non-recurring Patient Care revenues decreased by $1.9 million, or 17%, compared to the first nine months of 2023, also driven by the sale of AHT[197]. Cost Management - Total costs of revenue (exclusive of amortization and depreciation) decreased to 51% of revenues during the third quarter of 2024, down from 53% in the third quarter of 2023[180]. - Total costs of revenue decreased by $4.7 million compared to the first nine months of 2023, with costs of revenue as a percentage of total revenues decreasing to 51% from 52%[198]. - General and administrative expenses decreased by $1.6 million, or 8%, compared to the third quarter of 2023[186]. - General and administrative expenses increased by $3.2 million, or 6%, compared to the first nine months of 2023, mainly due to increased stock compensation and expenses from the acquisition of Viewgol[203]. - Margin optimization efforts include organizational realignment and expanded use of offshore resources, with expectations of improved cost efficiencies[165][167]. - The company recognizes the impact of wage inflation on its cost structure and is implementing measures to preserve gross margins[168]. - Financial Health segment's cost structure is heavily dependent on human capital, exposing it to wage inflation risks[167]. Strategic Initiatives - The company plans to enhance its recurring revenue base to stabilize revenues and cash flows, focusing on customer retention and subscription demand[157]. - The company aims to grow through acquisitions of businesses, technologies, or products to meet strategic goals[154]. - The shift towards SaaS arrangements is expected to reduce Patient Care revenues in the short term but increase long-term revenue growth[162]. - SaaS license models accounted for 100% of annual new acute Patient Care installations in 2023, up from 12% in 2018[162]. Cash Flow and Financing - As of September 30, 2024, the company had cash and cash equivalents of $8.6 million and remaining borrowing capacity under the revolving credit facility of $39.6 million[219]. - The company drew $41.0 million from its revolving credit facility for the Viewgol acquisition, leaving $40.6 million available as of October 16, 2023[220]. - Net cash provided by operating activities increased by $8.5 million to $21.8 million for the nine months ended September 30, 2024, compared to $13.3 million for the same period in 2023[221]. - Net cash provided by investing activities increased by $24.1 million to $5.8 million during the nine months ended September 30, 2024, primarily due to the sale of AHT, which resulted in a net cash inflow of $21.4 million[222]. - Financing activities resulted in a net cash use of $22.9 million during the nine months ended September 30, 2024, compared to a net cash use of $0.5 million in the same period of 2023[223]. - As of September 30, 2024, the company had $57.3 million in principal amount outstanding under the term loan facility and $120.4 million under the revolving credit facility, with an average interest rate of 8.40%[225]. - A one hundred basis point change in interest rate on borrowings outstanding as of September 30, 2024, would result in a change in interest expense of approximately $1.8 million annually[241]. - The company was in compliance with the covenants contained in the Amended and Restated Credit Agreement as of September 30, 2024[229]. Backlog and Bookings - The company reported a twelve-month backlog of approximately $8 million in non-recurring system purchases and approximately $320 million in recurring payments as of September 30, 2024[232]. - Total bookings for the third quarter of 2024 increased by $5.973 million, or 38%, compared to the third quarter of 2023, driven by both net-new and cross-sell bookings[235]. - Patient Care bookings increased by $6.5 million, or 31%, during the first nine months of 2024, primarily due to add-on and new business sales[238].
TruBridge(TBRG) - 2024 Q3 - Quarterly Report