CPSI(US:CPSI)2025-05-09 18:06PART I. FINANCIAL INFORMATION This part presents TruBridge's unaudited condensed consolidated financial statements and notes for Q1 2025 and comparative periods Item 1. Financial Statements This section details TruBridge's unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, income, equity, and cash flows Condensed Consolidated Balance Sheets (Unaudited) – March 31, 2025 and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total assets | $388,842 | $394,432 | | Total liabilities | $220,334 | $225,737 | | Total stockholders' equity | $168,508 | $168,695 | Condensed Consolidated Statements of Operations (Unaudited) – Three Months Ended March 31, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Total revenues | $87,208 | $84,117 | | Operating income (loss) | $8,160 | $(588) | | Income (loss) before taxes | $4,922 | $(3,238) | | Net income (loss) | $459 | $(1,854) | | Net income (loss) per common share—basic | $0.03 | $(0.13) | | Net income (loss) per common share—diluted | $0.03 | $(0.13) | - Total revenues increased by $3.1 million (4%) YoY, primarily driven by the Financial Health segment. Net income improved significantly from a loss of $1.9 million in Q1 2024 to a profit of $0.5 million in Q1 202512157 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Three Months Ended March 31, 2025 and 2024 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $459 | $(1,854) | | Foreign currency translation adjustment | $(6) | $113 | | Comprehensive income (loss) | $453 | $(1,741) | Condensed Consolidated Statements of Stockholders' Equity (Unaudited) – Three Months Ended March 31, 2025 and 2024 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (in thousands) | Metric (in thousands) | Balance at Dec 31, 2024 | Balance at Mar 31, 2025 | | :-------------------- | :---------------------- | :---------------------- | | Common Stock | $15 | $15 | | Additional Paid-in Capital | $201,066 | $202,279 | | Accumulated Deficit | $(14,952) | $(14,493) | | Accumulated Other Comprehensive Income | $45 | $39 | | Treasury Stock | $(17,479) | $(19,332) | | Total Stockholders' Equity | $168,695 | $168,508 | - Stockholders' equity slightly decreased from $168.695 million to $168.508 million, primarily due to treasury stock acquisitions ($1.853 million) partially offset by net income ($0.459 million) and stock-based compensation ($1.213 million)15 Condensed Consolidated Statements of Cash Flows (Unaudited) – Three Months Ended March 31, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) | Activity (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Operating Activities | $5,760 | $(2,034) | | Investing Activities | $(2,232) | $16,394 | | Financing Activities | $(5,728) | $(14,052) | | Cash and cash equivalents at end of period | $10,124 | $4,115 | - Net cash provided by operating activities significantly improved to $5.8 million in Q1 2025 from a use of $2.0 million in Q1 2024. Investing activities shifted from a net inflow of $16.4 million in Q1 2024 (due to AHT sale) to a net outflow of $2.2 million in Q1 2025. Financing activities continued to be a net use of cash, decreasing from $14.1 million in Q1 2024 to $5.7 million in Q1 202517184185186 Notes to Condensed Consolidated Financial Statements (Unaudited) 1. BASIS OF PRESENTATION - The Company realigned its reporting structure in May 2024, changing from three segments (RCM, EHR, Patient Engagement) to two (Financial Health, Patient Care). Patient Engagement results were transitioned into the EHR segment, now named Patient Care. Prior segment information has been recast21 Revision of Previously Issued Financial Statements (Three Months Ended March 31, 2024) (in thousands, except per share data) | Metric (in thousands, except per share data) | As previously reported | Impact of revision | As adjusted | | :------------------------------------------- | :--------------------- | :----------------- | :---------- | | Total revenue | $83,247 | $870 | $84,117 | | Operating loss | $(1,458) | $870 | $(588) | | Net loss | $(2,516) | $662 | $(1,854) | | Net loss per share - basic | $(0.17) | $0.04 | $(0.13) | - The Company corrected improperly recognized revenue from the prior year, which was deemed immaterial to prior period financial statements. This resulted in an $870 thousand increase in total revenue and a $662 thousand reduction in net loss for the three months ended March 31, 20242223 2. RECENT ACCOUNTING PRONOUNCEMENTS - The FASB issued ASU 2023-09 (Income Taxes) effective for fiscal years beginning after December 15, 2024, requiring disaggregated tax rate reconciliation and income taxes paid by jurisdiction. The Company is evaluating its impact26 - The FASB issued ASU 2024-03 (Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures) effective for fiscal years beginning after December 15, 2026, requiring additional disclosure of certain costs and expenses. The Company is evaluating its impact27 3. REVENUE RECOGNITION - Revenue is recognized using the 5-step model under ASC 606. Financial Health services (RCM, IT services, SaaS, time-based licenses) recognize revenue over the contract period or upon delivery. Patient Care services (perpetual/SaaS licenses, installation, support, hardware) recognize revenue over time or at a point in time depending on the service2830323337 Revenues Disaggregated by Category (in thousands) | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------- | :-------------------------------- | :-------------------------------- | | Recurring revenues | | | | Financial Health | $55,263 | $52,116 | | Patient Care | $26,707 | $28,544 | | Total recurring revenues | $