Computer Programs and Systems, Inc. Announces Second Quarter 2008 Results

2008-07-24 17:30:00

Computer Programs and Systems, Inc. Announces Second Quarter 2008 Results

Company Declares Regular Quarterly Dividend of $0.36 Per Share

MOBILE, Ala.–(EMWPresswire)–Computer Programs and Systems, Inc. (NASDAQ: CPSI):

Highlights:

  • Revenues of $27.8 million for the second quarter;

  • Earnings per diluted share of $0.28;

  • Cash flow from operations of $5.2 million; and

  • Quarterly dividend of $0.36 per share.

Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider

of healthcare information solutions, today announced results for the

second quarter and six months ended June 30, 2008.

The Company also announced that its Board of Directors has declared a

regular quarterly cash dividend of $0.36 (thirty-six cents) per share,

payable on August 22, 2008, to stockholders of record as of the close of

business on August 7, 2008.

Total revenues for the second quarter ended June 30, 2008, decreased

0.8% to $27.8 million, compared with total revenues of $28.0 million for

the prior-year period. Net income for the quarter ended June 30, 2008,

decreased 9.4% to $3.0 million, or $0.28 per diluted share, compared

with $3.3 million, or $0.31 per diluted share, for the quarter ended

June 30, 2007. Cash flow from operations for the second quarter of 2008

was $5.2 million, compared with $5.2 million for the prior-year period.

Commenting on the results, Boyd Douglas, chief executive officer and

president of CPSI, stated, We are pleased

with our strong performance this quarter, which we view as confirmation

of our optimistic outlook and expectations for a solid second half of

the year. During the second quarter, overall demand for our products and

services increased significantly. We are confident this momentum in our

marketplace will continue during the third quarter, and we are well

positioned to capitalize on this opportunity. Also, I am pleased to

report that second quarter cash collections were at a record level. We

are excited about these results and are grateful to our many customers

for their business and continued belief in our company.

Total revenues for the six months ended June 30, 2008, increased 6.2% to

$57.3 million, compared with total revenues of $53.9 million for the

prior-year period. Net income for the six months ended June 30, 2008,

increased 10.8% to $6.5 million, or $0.60 per diluted share, compared

with $5.9 million, or $0.55 per diluted share, for the six months ended

June 30, 2007. Cash provided from operations for the first half of 2008

was $9.5 million, compared with $8.6 million for the same period last

year.

For the third quarter of 2008, the Company anticipates total revenues of

$30.0 million to $31.5 million and net income of approximately $3.9

million to $4.1 million, or $0.37 to $0.39 per diluted share. CPSIs

12-month backlog as of June 30, 2008, was $94.3 million, consisting of

$20.2 million in non-recurring system purchases and $74.1 million in

recurring payments for support, outsourcing, ASP and ISP contracts.

A listen-only simulcast and replay of CPSIs

second quarter 2008 conference call will be available on-line at www.cpsinet.com

and www.earnings.com on July 25,

2008, beginning at 9:00 a.m. Eastern Time.

About Computer Programs and Systems, Inc.

CPSI is a leading provider of healthcare information solutions for

community hospitals with over 600 client hospitals in 46 states. Founded

in 1979, the Company is a single-source vendor providing comprehensive

software and hardware products, complemented by complete installation

services and extensive support. Its fully integrated, enterprise-wide

system automates clinical and financial data management in each of the

primary functional areas of a hospital. CPSIs

staff of over 700 technical, healthcare and medical professionals

provides system implementation and continuing support services as part

of a comprehensive program designed to respond to clients

information needs in a constantly changing healthcare environment. For

more information, visit www.cpsinet.com.

This press release contains forward-looking statements within the

meaning of the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995. These

forward-looking statements can be identified generally by the use of

forward-looking terminology and words such as expects,

anticipates, estimates,

believes, predicts,

intends, plans,

potential, may,

continue, should,

will and words

of comparable meaning. Without limiting the generality of the

preceding statement, all statements in this press release relating to

estimated and projected earnings, margins, costs, expenditures, cash

flows, growth rates and future financial results are forward-looking

statements. We caution investors that any such forward-looking

statements are only predictions and are not guarantees of future

performance. Certain risks, uncertainties and other factors may

cause actual results to differ materially from those projected in the

forward-looking statements. Such factors may include: overall

business and economic conditions affecting the healthcare industry;

saturation of our target market and hospital consolidations; changes in

customer purchasing priorities and demand for information technology

systems; competition with companies that have greater financial,

technical and marketing resources than we have; failure to develop new

technology and products in response to market demands; fluctuations in

quarterly financial performance due to, among other factors, timing of

customer installations; failure of our products to function properly

resulting in claims for medical losses; government regulation of our

products and customers, including changes in healthcare policy affecting

Medicare reimbursement rates; interruptions in our power supply and/or

telecommunications capabilities and other risk factors described from

time to time in our public releases and reports filed with the

Securities and Exchange Commission, including, but not limited to, our

most recent Annual Report on Form 10-K. We also caution investors

that the forward-looking information described herein represents our

outlook only as of this date, and we undertake no obligation to update

or revise any forward-looking statements to reflect events or

developments after the date of this press release.

COMPUTER PROGRAMS AND SYSTEMS, INC.

Unaudited Condensed Statements of Operations

(in thousands, except per share data)

Three Months Ended

June 30,

Six Months Ended

June 30,

2008

2007

2008

2007

Sales revenues:

System sales

$

8,458

$

10,266

$

19,114

$

18,582

Support and maintenance

13,133

12,368

26,219

24,908

Business management services

6,161

5,329

11,936

10,419

Total sales revenues

27,752

27,963

57,269

53,909

Cost of sales:

System sales

7,215

7,766

15,117

14,945

Support and maintenance

4,772

5,006

9,570

10,063

Business management services

3,640

3,295

7,225

6,353

Total cost of sales

15,627

16,067

31,912

31,361

Gross profit

12,125

11,896

25,357

22,548

Operating expenses:

Sales and marketing

2,129

2,306

4,389

4,382

General and administrative

5,287

4,765

10,761

9,657

Total operating expenses

7,416

7,071

15,150

14,039

Operating income

4,709

4,825

10,207

8,509

Interest income, net

230

272

495

549

Income before taxes

4,939

5,097

10,702

9,058

Provision for income taxes

1,948

1,795

4,205

3,197

Net income

$

2,991

$

3,302

$

6,497

$

5,861

Basic earnings per share

$

0.28

$

0.31

$

0.60

$

0.55

Diluted earnings per share

$

0.28

$

0.31

$

0.60

$

0.55

Weighted average shares outstanding:

Basic

10,753

10,683

10,749

10,673

Diluted

10,767

10,732

10,767

10,725

COMPUTER PROGRAMS AND SYSTEMS, INC.

Condensed Balance Sheets

(in thousands)

June 30,

2008

Dec. 31,

2007

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

12,851

$

11,806

Investments

11,595

11,352

Accounts receivable, net of allowance for doubtful accounts of

$797 and $949, respectively

13,179

14,334

Financing receivables, current portion

1,879

1,735

Inventory

1,624

1,450

Deferred tax assets

1,429

1,394

Prepaid expenses

419

506

Total current assets

42,976

42,577

Financing receivables, long-term

1,280

2,322

Property and equipment

12,708

12,130

Accumulated depreciation

(7,586

)

(6,621

)

Total assets

$

49,378

$

50,408

LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities:

Accounts payable

$

1,625

$

1,717

Deferred revenue

3,971

3,581

Accrued vacation

2,264

2,112

Income taxes payable

76

542

Other accrued liabilities

3,363

3,507

Total current liabilities

11,299

11,459

Deferred tax liabilities

367

571

Stockholders equity:

Common stock, par value $0.001 per share, 30,000 shares authorized,

10,833 and 10,807 shares issued and outstanding

11

11

Additional paid-in capital

25,298

24,658

Accumulated other comprehensive income

37

45

Retained earnings

12,366

Computer Programs and Systems, Inc.
Darrell G. West,

251-639-8100
Vice President-Finance and Chief Financial Officer

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