Computer Programs and Systems Inc. (CPSI, Financial) filed Amended Quarterly Report for the period ended 2013-06-30.
Computer Programs And Systems, Inc. has a market cap of $630.2 million; its shares were traded at around $56.88 with a P/E ratio of 20.10 and P/S ratio of 3.40. The dividend yield of Computer Programs And Systems, Inc. stocks is 3.40%. Computer Programs And Systems, Inc. had an annual average earning growth of 12.2% over the past 10 years. GuruFocus rated Computer Programs And Systems, Inc. the business predictability rank of 5-star.
Net Income. Net income for the three months ended June 30, 2013 increased by 2.7%, or $0.2 million, to $8.5 million, or $0.77 per basic and diluted share, as compared with net income of $8.3 million, or $0.75 per basic and diluted share, for the three months ended June 30, 2012. Net income represented 15.9% of revenue for the three months ended June 30, 2013, as compared to 18.1% of revenue for the three months ended June 30, 2012.
System sales revenues increased by 23.5%, or $8.2 million, for the comparative six-month periods. We completed financial and patient software system installations at 17 new hospital clients in the first six months of 2013 (none of which was under a First Generation Meaningful Use Installment Plan) compared to 18 in the first six months of 2012 (seven of which were under First Generation Meaningful Use Installment Plans). Sales to existing customers accounted for 49.3% of our system sales revenues for the first six months of 2013 compared to 74.7% for the first six months of 2012. During the first six months of 2012, the Company installed systems under First Generation Meaningful Use Installment Plans for which a substantial majority of the consideration is not received or revenue recognized until the customers successfully achieve "meaningful use" designation and receive related stage one ARRA incentive payments. These arrangements resulted in $9.8 million of accumulated unrecognized revenue during the first six months of 2012 and revenue recognized (net of additional unrecognized revenue accumulated) of $2.8 million during the first six months of 2013. Excluding the net effect on revenue resulting from these arrangements, adjusted system sales (as hereinafter defined in the "Non-GAAP Financial Measures" section below) decreased $4.4 million, or 9.9%, due to the decrease in add-on sales to existing customers.
Costs of system sales increased by 7.1%, or $1.8 million, for the comparative six-month periods. The increase in costs of system sales was primarily due to a $1.2 million increase in the cost of third party software subscriptions and a $0.3 million increase in payroll and related costs. Third party software subscriptions increased as a result of our expanding customer base utilizing such subscribed third party software services and new royalty payments for newly copyrighted third party content, and payroll and related costs increased due to increased personnel. The gross margin on system sales increased to 38.9% for the six-month period ended June 30, 2013 from 29.6% in the six-month period ended June 30, 2012. Excluding the net effect on revenue resulting from First Generation Meaningful Use Installment Plans (which were used by the Company in 2012) and the deferral of the related cost of equipment, the adjusted gross margin on system sales (as hereinafter defined in the “Non-GAAP Financial Measures” section below) decreased to 35.1% in the six-month period ended June 30, 2013 from 43.2% in the six-month period ended June 30, 2012. The table below summarizes the major components of costs of system sales as a percentage of system sales revenues:
Net Income. Net income for the six months ended June 30, 2013 increased by 10.9%, or $1.5 million, to $15.4 million, or $1.39 per basic and diluted share, as compared with net income of $13.9 million, or $1.26 per basic and diluted share, for the six months ended June 30, 2012. Net income represented 15.0% of revenue for the six months ended June 30, 2013, as compared to 15.4% of revenue for the six months ended June 30, 2012.
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Computer Programs And Systems, Inc. has a market cap of $630.2 million; its shares were traded at around $56.88 with a P/E ratio of 20.10 and P/S ratio of 3.40. The dividend yield of Computer Programs And Systems, Inc. stocks is 3.40%. Computer Programs And Systems, Inc. had an annual average earning growth of 12.2% over the past 10 years. GuruFocus rated Computer Programs And Systems, Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
Costs of system sales increased by 3.2%, or $0.4 million, for the comparative three-month periods. The increase in costs of system sales was due to a $1.0 million increase in the cost of third party software subscriptions, partially offset by a $0.6 million decrease in travel costs. Third party software subscriptions increased as a result of our expanding customer base utilizing such subscribed third party software services, new royalty payments for newly copyrighted third party content, and certain immaterial year-to-date reclassifications recorded during the second quarter of 2013. Travel costs decreased as the Company's new system installations for the second quarter of 2013 were more heavily concentrated in the State of Alabama and adjacent states. Payroll and related costs remained relatively flat, decreasing slightly from $6.2 million for the second quarter of 2012 to $6.1 million for the second quarter of 2013. The gross margin on system sales increased to 41.5% for the three-month period ended June 30, 2013 from 28.9% in the three-month period ended June 30, 2012. Excluding the net effect on revenue resulting from First Generation Meaningful Use Installment Plans (which were used by the Company in 2012) and the deferral of the related cost of equipment, the adjusted gross margin on system sales (as hereinafter defined in the “Non-GAAP Financial Measures” section below) decreased to 39.5% in the three-month period ended June 30, 2013 from 42.4% in the three-month period ended June 30, 2012. The table below summarizes the major components of costs of system sales as a percentage of system sales revenues:Net Income. Net income for the three months ended June 30, 2013 increased by 2.7%, or $0.2 million, to $8.5 million, or $0.77 per basic and diluted share, as compared with net income of $8.3 million, or $0.75 per basic and diluted share, for the three months ended June 30, 2012. Net income represented 15.9% of revenue for the three months ended June 30, 2013, as compared to 18.1% of revenue for the three months ended June 30, 2012.
System sales revenues increased by 23.5%, or $8.2 million, for the comparative six-month periods. We completed financial and patient software system installations at 17 new hospital clients in the first six months of 2013 (none of which was under a First Generation Meaningful Use Installment Plan) compared to 18 in the first six months of 2012 (seven of which were under First Generation Meaningful Use Installment Plans). Sales to existing customers accounted for 49.3% of our system sales revenues for the first six months of 2013 compared to 74.7% for the first six months of 2012. During the first six months of 2012, the Company installed systems under First Generation Meaningful Use Installment Plans for which a substantial majority of the consideration is not received or revenue recognized until the customers successfully achieve "meaningful use" designation and receive related stage one ARRA incentive payments. These arrangements resulted in $9.8 million of accumulated unrecognized revenue during the first six months of 2012 and revenue recognized (net of additional unrecognized revenue accumulated) of $2.8 million during the first six months of 2013. Excluding the net effect on revenue resulting from these arrangements, adjusted system sales (as hereinafter defined in the "Non-GAAP Financial Measures" section below) decreased $4.4 million, or 9.9%, due to the decrease in add-on sales to existing customers.
Costs of system sales increased by 7.1%, or $1.8 million, for the comparative six-month periods. The increase in costs of system sales was primarily due to a $1.2 million increase in the cost of third party software subscriptions and a $0.3 million increase in payroll and related costs. Third party software subscriptions increased as a result of our expanding customer base utilizing such subscribed third party software services and new royalty payments for newly copyrighted third party content, and payroll and related costs increased due to increased personnel. The gross margin on system sales increased to 38.9% for the six-month period ended June 30, 2013 from 29.6% in the six-month period ended June 30, 2012. Excluding the net effect on revenue resulting from First Generation Meaningful Use Installment Plans (which were used by the Company in 2012) and the deferral of the related cost of equipment, the adjusted gross margin on system sales (as hereinafter defined in the “Non-GAAP Financial Measures” section below) decreased to 35.1% in the six-month period ended June 30, 2013 from 43.2% in the six-month period ended June 30, 2012. The table below summarizes the major components of costs of system sales as a percentage of system sales revenues:
Net Income. Net income for the six months ended June 30, 2013 increased by 10.9%, or $1.5 million, to $15.4 million, or $1.39 per basic and diluted share, as compared with net income of $13.9 million, or $1.26 per basic and diluted share, for the six months ended June 30, 2012. Net income represented 15.0% of revenue for the six months ended June 30, 2013, as compared to 15.4% of revenue for the six months ended June 30, 2012.
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