CPSI(US:CPSI)2023-03-15 16:00Revenue Cycle Management (RCM) Performance - RCM bookings increased by $27.7 million, or 136%, in 2022 compared to 2021, driven by strong demand for outsourced RCM services, particularly from the existing EHR customer base[331] - RCM segment revenues increased by $48.6 million, or 37%, to $179.9 million in 2022, while EHR segment revenues decreased by $3.3 million, or 2%, to $139.8 million[282] - Adjusted EBITDA for the RCM segment increased by $6.0 million, or 20%, to $36.2 million in 2022, while EHR segment Adjusted EBITDA decreased by $4.0 million, or 17%, to $19.1 million[282] Patient Engagement Performance - Patient engagement bookings decreased by $5.8 million, or 65%, in 2022 compared to 2021, due to the absence of large international client wins[332] EHR System and Support Costs - Costs of EHR system and sales support increased by $1.3 million, or 2%, in 2021, with Acute Care EHR costs rising by $1.2 million, or 2%, and Post-acute Care EHR costs slightly increasing to $4.9 million[315] - The gross margin on EHR system sales and support decreased to 51% in 2021 from 55% in 2020, due to increased costs of sales and decreased non-recurring revenues[315] Target Market and Customer Base - The company's target market for RCM, EHR, and Patient Engagement solutions includes community hospitals with fewer than 400 acute care beds, with 98% of the acute care hospital EHR customer base comprising hospitals with fewer than 100 beds[230] - The company's post-acute care solutions target approximately 15,500 skilled nursing facilities, which are either independently owned or part of larger management groups[230] Financial and Capital Management - The company's credit agreement restricts its ability to pay dividends, and the Board of Directors indefinitely suspended quarterly dividends in September 2020, aligning with a capital allocation strategy prioritizing flexibility[225] - CPSI had $141.1 million of outstanding borrowings under its credit facilities with Regions Bank as of December 31, 2022, with a potential annual interest expense change of $1.4 million for every 100 basis point change in interest rate[345] - CPSI's cash and cash equivalents were $7.0 million as of December 31, 2022, with a remaining borrowing capacity of $86.3 million under the revolving credit facility, providing adequate resources for the next twelve months[353] - CPSI paid $5.863 million in interest and $4.765 million in income taxes (net of refund) in 2022, compared to $2.817 million and $3.503 million respectively in 2021[425] Financial Position and Performance - CPSI's total assets increased to $430.963 million as of December 31, 2022, from $383.350 million in 2021, driven by growth in software development costs, intangible assets, and goodwill[394] - CPSI's stockholders' equity increased to $231.711 million as of December 31, 2022, from $222.572 million in 2021, primarily due to net income and stock-based compensation[397] - CPSI's net income for 2022 was $15.867 million, contributing to retained earnings of $53.921 million as of December 31, 2022[397] - CPSI's total liabilities increased to $199.252 million as of December 31, 2022, from $160.778 million in 2021, primarily due to an increase in long-term debt[394] - CPSI's current assets increased to $74.559 million as of December 31, 2022, from $68.998 million in 2021, driven by growth in accounts receivable and financing receivables[394] - CPSI's software development costs increased significantly to $27.257 million as of December 31, 2022, from $11.644 million in 2021, reflecting increased investment in technology[394] Internal Controls and Reporting - The company's internal control over financial reporting was assessed as effective as of December 31, 2022, based on the COSO 2013 framework[350] - CPSI realigned its reporting structure in Q4 2022, changing its reportable segments to Revenue Cycle Management (RCM), EHR, and Patient Engagement[402]