Computer Programs & Systems (CPSI) Tops Q2 EPS by 1c

Computer Programs & Systems (NASDAQ: CPSI) reported Q2 EPS of $0.39, $0.01 better than the analyst estimate of $0.38. Revenue for the quarter came in at $59.5 million versus the consensus estimate of $60.13 million.

“Though the Covid-19 pandemic has continued to put pressure on healthcare providers and organizations across the country, we are very pleased with how our employees and our business rose to the challenge in the second quarter,” said Boyd Douglas, president and chief executive officer of CPSI. “With 90% of our employees working from home, our team has provided dependable support to our clients and delivered a steady stream of strategic innovations, including our 100% remote implementation methodology, virtual service and support, telehealth solutions, and new products from American HealthTech and TruBridge. Despite the difficulties of selling remotely, our second quarter total bookings of $20.0 million were up 36% over total bookings from the second quarter of 2019. For the first half of 2020, our $39.3 million in total bookings also represented an increase of 37% compared with the first half of 2019.

“Our acute care bookings this quarter remained strong at $11.9 million, and the percentage of bookings for subscription services increased as we continue to emphasize recurring revenue growth. In addition, our post-acute care bookings were the highest since the fourth quarter of 2016. However, as expected, lower hospital volumes put downward pressure on revenues and bookings from our TruBridge revenue cycle outsourcing services in the second quarter, though we have since seen stabilization or improvement in volumes across most TruBridge services.”

Commenting on the Company’s financial performance for the second quarter, Matt Chambless, chief financial officer of CPSI, stated, “Covid-19 reduced hospital volumes and created obstacles for new Electronic Health Record (EHR) implementations and sales efforts, which weighed on revenues. We continue to manage our costs strategically, using our operating and financial strength to pursue our long-term strategic initiatives. The refinancing we completed during the second quarter further supported these objectives by increasing our financial flexibility and reducing our interest expense.

“Despite the current environment, operating cash flows nearly doubled from the second quarter of 2019 to the second-highest quarterly amount in Company history, continuing a trend that built significant momentum during 2019. Over the last 12 months, we have generated $51.0 million of operating cash flows. We view this development as a testament to the resiliency of our business, the essential nature of our products and services, and our unrelenting commitment to supporting our clients efficiently in difficult conditions.”

Douglas added, “Our top priorities remain protecting our employees and clients and ensuring our communities have access to safe, quality healthcare, which is more important now than ever. Our clients continue to weather the disruption and uncertainty that has come with the Covid-19 pandemic. With the strength of our operations, balance sheet and cash flow, we have been able to focus on what is important to them, including providing the innovative solutions, services and support that they need today and well into the future.”

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