Cerner Reports First Quarter 2017 Results
April 27 2017 - 4:01PM
Cerner Corporation (Nasdaq:CERN) today announced results for the
2017 first quarter that ended April 1, 2017.
Bookings in the first quarter of 2017 were
$1.250 billion, an increase of 7 percent compared to $1.170 billion
in the first quarter of 2016 and above the midpoint of the
Company’s guidance range.
First quarter revenue was $1.260 billion, an
increase of 11 percent compared to $1.138 billion in the first
quarter of 2016 and at the high-end of the Company’s guidance
range.
On a U.S. Generally Accepted Accounting
Principles (GAAP) basis, first quarter 2017 net earnings were
$173.2 million and diluted earnings per share were $0.52. First
quarter 2016 GAAP net earnings were $150.4 million and diluted
earnings per share were $0.43.
Adjusted Net Earnings for first quarter 2017
were $197.8 million, compared to $182.4 million of Adjusted Net
Earnings in the first quarter of 2016. Adjusted Diluted Earnings
Per Share were $0.59 in the first quarter of 2017, an increase of
11 percent compared to $0.53 of Adjusted Diluted Earnings Per Share
in the year-ago quarter and at the high-end of the Company’s
guidance range. Analysts’ consensus estimate for first
quarter 2017 Adjusted Diluted Earnings Per Share was $0.57.
Adjusted Net Earnings and Adjusted Diluted
Earnings Per Share are not recognized terms under GAAP. These
non-GAAP financial measures should not be substituted for GAAP net
earnings or GAAP diluted earnings per share, respectively, as
measures of Cerner’s performance, but instead should be utilized as
supplemental measures of financial performance in evaluating our
business. Please see the accompanying schedule, titled
“Reconciliation of GAAP Results to Non-GAAP Results,” where our
non-GAAP financial measures are defined and reconciled to the most
comparable GAAP measures.
Other 2017 First Quarter Highlights:
- First quarter operating cash flow of $303.6 million.
- First quarter Free Cash Flow of $144.4 million. Free Cash
Flow is a non-GAAP financial measure defined as GAAP cash flows
from operating activities less capital purchases and capitalized
software development costs. Please see the accompanying schedule,
titled “Reconciliation of GAAP Results to Non-GAAP Results.”
- First quarter days sales outstanding of 71 days, down from 76
days in the year-ago period.
- Total backlog of $16.098 billion, up 10 percent over the
year-ago quarter.
“Our first quarter results represent a strong
start to the year, with all key metrics at or above expected
levels,” said Zane Burke, President. “Our results again included a
significant number of new client wins, reflecting our strong
competitive position and an active marketplace.”
Future Period Guidance
Cerner currently expects:
- Second quarter 2017 revenue between $1.265 billion and $1.335
billion.
- Full year 2017 revenue between $5.100 billion and $5.300
billion, consistent with previously provided full year
guidance.
- Second quarter 2017 Adjusted Diluted Earnings Per Share between
$0.60 and $0.62.
- Full year 2017 Adjusted Diluted Earnings Per Share between
$2.44 and $2.56, consistent with previously provided full year
guidance.
- Second quarter 2017 bookings between $1.300 billion and $1.500
billion.
Earnings Conference Call
Cerner will host an earnings conference call to
provide additional detail on the Company’s results and outlook at
3:30 p.m. CT on April 27, 2017. On the call, Cerner will discuss
its first quarter 2017 results and answer questions from the
investment community. The call may also include discussion of
Cerner developments, and forward-looking and other material
information about business and financial matters. The dial-in
number for the conference call is (678)-509-7542; the passcode is
Cerner. Cerner recommends joining the call 15 minutes early for
registration. The re-broadcast of the call will be available from
6:30 p.m. CT, April 27, 2017 through 11:59 p.m. CT, April 30, 2017.
The dial-in number for the re-broadcast is (855)-859-2056; the
passcode is 4386054.
An audio webcast will be available live and
archived on Cerner’s website at www.cerner.com under the About Us
section (click Investor Relations, then Presentations and
Webcasts).
About Cerner
Cerner’s health information technologies connect
people, information and systems at more than 25,000 facilities
worldwide. Recognized for innovation, Cerner® solutions assist
clinicians in making care decisions and enable organizations to
manage the health of populations. The company also offers an
integrated clinical and financial system to help health care
organizations manage revenue, as well as a wide range of services
to support clients’ clinical, financial and operational needs.
Cerner’s mission is to contribute to the systemic improvement of
health care delivery and the health of communities. Nasdaq:
CERN. For more information about Cerner, visit cerner.com, read our
blog at blogs.cerner.com, or connect with us on Twitter
at twitter.com/cerner and on Facebook at
facebook.com/cerner. Our website, blog, Twitter account and
Facebook page contain a significant amount of information about
Cerner, including financial and other information for
investors.
Certain trademarks, service marks and logos set
forth herein are property of Cerner Corporation and/or its
subsidiaries.
All statements in this press release that do not
directly and exclusively relate to historical facts constitute
forward-looking statements. These forward-looking statements
are based on the current beliefs, expectations and assumptions of
Cerner's management with respect to future events and are subject
to a number of significant risks and uncertainties. It is
important to note that Cerner's performance, and actual results,
financial condition or business could differ materially from those
expressed in such forward-looking statements. The words “expects”,
“guidance”, “position”, “believe” or the negative of these words,
variations thereof or similar expressions are intended to identify
such forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to: the
possibility of significant costs and reputational harm related to
product-related liabilities; potential claims for system errors and
warranties; the possibility of interruption at our data centers or
client support facilities; the possibility of increased expenses,
exposure to legal claims and regulatory actions and reputational
harm associated with a cyberattack or other breach in our IT
security; our proprietary technology may be subject to claims for
infringement or misappropriation of intellectual property rights of
others, or may be infringed or misappropriated by others; potential
claims or other risks associated with relying on open source
software in our proprietary software, solutions or services;
material adverse resolution of legal proceedings; risks associated
with our global operations; risks associated with fluctuations in
foreign currency exchange rates; the potential for tax legislation
initiatives that could adversely affect our tax position and/or
challenges to our tax positions in the U.S. and non-U.S. countries;
the uncertainty surrounding the impact of the United Kingdom’s vote
to leave the European Union (commonly referred to as Brexit) on our
global business; risks associated with our recruitment and
retention of key personnel; risks related to our dependence on
strategic partners and third party suppliers; difficulties and
operational and financial risks associated with successfully
completing the integration of the Cerner Health Services (formerly
Siemens Health Services) business into our business or the failure
to realize the synergies and other benefits expected from the
acquisition; risks inherent with business acquisitions and
combinations and the integration thereof; the potential for losses
resulting from asset impairment charges; risks associated with
volatility and disruption resulting from global economic or market
conditions; managing growth in the new markets in which we offer
solutions, health care devices or services; risks inherent in
contracting with government clients; risks associated with our
outstanding and future indebtedness, such as compliance with
restrictive covenants, which may limit our flexibility to operate
our business; changing political, economic, regulatory and judicial
influences, which could impact the purchasing practices and
operations of our clients and increase costs to deliver compliant
solutions and services; government regulation; significant
competition and our ability to quickly respond to market changes
and changing technologies and to bring competitive new solutions,
devices, features and services to market in a timely fashion; long
sales cycles for our solutions and services; variations in our
quarterly operating results; potential variations in our sales
forecasts compared to actual sales; volatility in the trading price
of our common stock and the timing and volume of market activity;
our directors’ authority to issue preferred stock and the
anti-takeover provisions in our corporate governance documents; and
changes in accounting standards issued by the Financial Accounting
Standards Board or other standard-setting bodies may adversely
affect our financial statements. Additional discussion of these and
other risks, uncertainties and factors affecting Cerner's business
is contained in Cerner's filings with the Securities and Exchange
Commission. The reader should not place undue reliance on
forward-looking statements, since the statements speak only as of
the date that they are made. Except as required by law, Cerner
undertakes no obligation to update forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated
events, or changes in our business, results of operations or
financial condition over time.
CERNER
CORPORATION AND SUBSIDIARIES |
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
For the three months
ended April 1, 2017 and April 2, 2016 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
(In thousands, except
per share data) |
|
Three Months Ended |
|
|
|
2017 |
|
|
2016 |
|
Revenues |
|
|
|
System
sales |
|
$ |
319,856 |
|
$ |
279,354 |
|
Support,
maintenance and services |
|
|
918,238 |
|
|
839,638 |
|
Reimbursed travel |
|
|
22,392 |
|
|
19,143 |
|
Total
revenues |
|
|
1,260,486 |
|
|
1,138,135 |
|
|
|
|
|
Margin |
|
|
|
System
sales |
|
|
219,447 |
|
|
190,129 |
|
Support,
maintenance and services |
|
|
842,046 |
|
|
772,413 |
|
Total
margin |
|
|
1,061,493 |
|
|
962,542 |
|
|
|
|
|
Operating expenses |
|
|
|
Sales and
client service |
|
|
560,200 |
|
|
501,827 |
|
Software
development |
|
|
145,901 |
|
|
133,532 |
|
General
and administrative |
|
|
88,392 |
|
|
90,134 |
|
Amortization of acquisition-related intangibles |
|
|
22,874 |
|
|
21,601 |
|
Total
operating expenses |
|
|
817,367 |
|
|
747,094 |
|
|
|
|
|
Operating
earnings |
|
|
244,126 |
|
|
215,448 |
|
|
|
|
|
Other income (expense),
net |
|
|
(1,116 |
) |
|
1,681 |
|
|
|
|
|
Earnings before income
taxes |
|
|
243,010 |
|
|
217,129 |
|
Income taxes |
|
|
(69,797 |
) |
|
(66,769 |
) |
Net earnings |
|
$ |
173,213 |
|
$ |
150,360 |
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.52 |
|
$ |
0.44 |
|
|
|
|
|
Basic weighted average
shares outstanding |
|
|
329,973 |
|
|
339,518 |
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.52 |
|
$ |
0.43 |
|
|
|
|
|
Diluted weighted
average shares outstanding |
|
|
336,190 |
|
|
345,900 |
|
|
|
|
|
CERNER
CORPORATION AND SUBSIDIARIES |
|
|
|
|
RECONCILIATION
OF GAAP RESULTS TO NON-GAAP RESULTS |
|
|
|
|
For the three months
ended April 1, 2017 and April 2, 2016 |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING EARNINGS |
|
|
|
|
|
|
(In thousands) |
|
Three Months Ended |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
Operating earnings
(GAAP) |
|
$ |
244,126 |
|
$ |
215,448 |
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
18,855 |
|
|
19,366 |
|
|
Health
Services acquisition-related amortization |
|
|
21,028 |
|
|
18,504 |
|
|
Acquisition-related deferred revenue adjustment |
|
|
4,484 |
|
|
5,513 |
|
|
Other
acquisition-related adjustments |
|
|
30 |
|
|
2,885 |
|
|
|
|
|
|
|
Adjusted Operating
Earnings (non-GAAP) |
|
$ |
288,523 |
|
$ |
261,716 |
|
|
|
|
|
|
|
ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER
SHARE |
|
|
|
|
|
|
(In thousands, except
per share data) |
|
Three Months Ended |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
Net earnings
(GAAP) |
|
$ |
173,213 |
|
$ |
150,360 |
|
|
|
|
|
|
|
Pre-tax adjustments for
Adjusted Net Earnings: |
|
|
|
|
Share-based compensation expense |
|
|
18,855 |
|
|
19,366 |
|
|
Health
Services acquisition-related amortization |
|
|
21,028 |
|
|
18,504 |
|
|
Acquisition-related deferred revenue adjustment |
|
|
4,484 |
|
|
5,513 |
|
|
Other
acquisition-related adjustments |
|
|
30 |
|
|
2,885 |
|
|
|
|
|
|
|
After-tax adjustments
for Adjusted Net Earnings: |
|
|
|
|
Income
tax effect of pre-tax adjustments |
|
|
(12,751 |
) |
|
(14,228 |
) |
|
Share-based compensation permanent tax items |
|
|
(7,062 |
) |
|
— |
|
|
|
|
|
|
|
Adjusted Net Earnings
(non-GAAP) |
|
$ |
197,797 |
|
$ |
182,400 |
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding |
|
|
336,190 |
|
|
345,900 |
|
|
|
|
|
|
|
Adjusted Diluted
Earnings Per Share (non-GAAP) |
|
$ |
0.59 |
|
$ |
0.53 |
|
|
|
|
|
|
|
FREE CASH FLOW |
|
|
|
|
|
|
(In thousands) |
|
Three Months Ended |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
Cash flows from
operating activities (GAAP) |
|
$ |
303,585 |
|
$ |
336,205 |
|
|
Capital purchases |
|
|
(88,065 |
) |
|
(99,351 |
) |
|
Capitalized software
development costs |
|
|
(71,092 |
) |
|
(75,340 |
) |
|
Free Cash Flow
(non-GAAP) |
|
$ |
144,428 |
|
$ |
161,514 |
|
|
|
|
|
|
|
Cash flows from
investing activities (GAAP) |
|
$ |
(103,852 |
) |
$ |
(303,554 |
) |
|
|
|
|
|
|
Cash flows from
financing activities (GAAP) |
|
$ |
4,369 |
|
$ |
(140,054 |
) |
|
|
|
|
|
|
Explanation of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
We report our financial results in accordance with
accounting principles generally accepted in the United States of
America ("GAAP"). However, we supplement our GAAP results with
certain non-GAAP financial measures, which we believe enable
investors to better understand and evaluate our ongoing operating
results and allows for greater transparency in the review and
understanding of our overall financial, operational and economic
performance. These non-GAAP financial measures are not meant to be
considered in isolation, as a substitute for, or superior to GAAP
results and investors should be aware that non-GAAP measures have
inherent limitations and should be read only in conjunction with
Cerner's consolidated financial statements prepared in accordance
with GAAP. These non-GAAP measures may also be different from
similar non-GAAP financial measures used by other companies and may
not be comparable to similarly titled captions of other companies
due to potential inconsistencies in the method of calculations. We
provide the measures of Adjusted Operating Earnings, Adjusted Net
Earnings and Adjusted Diluted Earnings Per Share as such measures
are used by management, along with GAAP results, to analyze
Cerner's business, make strategic decisions, assess long-term
trends on a comparable basis, and for management compensation
purposes. We provide the measure of Free Cash Flow as such measure
takes into account certain capital expenditures necessary to
operate our business. Free Cash Flow is used by management, along
with GAAP results, to analyze our earnings quality and overall cash
generation of the business. |
|
|
|
|
|
|
We calculate each of
our non-GAAP financial measures as follows: |
|
|
|
|
|
|
|
|
|
Adjusted Operating Earnings - Consists of GAAP
operating earnings adjusted for: (i) share-based compensation
expense, (ii) Health Services acquisition-related amortization,
(iii) acquisition-related deferred revenue adjustment, and (iv)
other acquisition-related adjustments. |
|
|
|
|
|
|
Adjusted Net Earnings - Consists of GAAP net
earnings adjusted for: (i) share-based compensation expense, (ii)
Health Services acquisition-related amortization, (iii)
acquisition-related deferred revenue adjustment, (iv) other
acquisition-related adjustments, (v) the income tax effect of the
aforementioned items, and (vi) share-based compensation permanent
tax items. |
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share - Consists
of Adjusted Net Earnings, as defined above, divided by diluted
weighted average shares outstanding, in the applicable period. |
|
|
|
|
|
|
Free Cash Flow - Consists of cash flows from
operating activities, less capital purchases and capitalized
software development costs. |
|
|
|
|
|
|
|
|
|
|
|
Adjustments included in the calculations of Adjusted
Operating Earnings and Adjusted Net Earnings are described
below: |
|
|
|
|
|
|
Share-based compensation expense - Non-cash expense arising
from our equity compensation and stock purchase plans available to
our associates and directors. We exclude share-based compensation
expense as we believe the amount of such non-cash expenses in any
specific period may not directly correlate to the underlying
performance of our business operations. Share-based compensation
expense is included in our Condensed Consolidated Statements of
Operations as follows: |
|
|
|
|
|
|
(In thousands) |
|
Three Months Ended |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
Sales and client
service |
|
$ |
9,671 |
|
$ |
9,219 |
|
|
Software
development |
|
|
4,227 |
|
|
3,687 |
|
|
General and
administrative |
|
|
4,957 |
|
|
6,460 |
|
|
Total
share-based compensation expense |
|
$ |
18,855 |
|
$ |
19,366 |
|
|
|
|
|
|
|
Health Services acquisition-related amortization - Non-cash
expense consisting of the amortization of customer relationships,
acquired technology, and trade name intangible assets recorded in
connection with our acquisition of the Health Services business in
February 2015. We exclude Health Services acquisition-related
amortization as we believe the amount of such non-cash expenses in
any specific period may not directly correlate to the underlying
performance of our business operations. Such amount is included in
our Condensed Consolidated Statements of Operations in the caption
"Amortization of acquisition-related intangibles." |
|
|
|
|
|
|
Acquisition-related deferred revenue adjustment - Consists of
acquisition-related deferred revenue adjustments in connection with
our acquisition of the Health Services business in February 2015.
Accounting guidance requires that deferred revenue acquired in a
business combination be written-down to an estimate of fulfillment
cost, plus a normal profit margin, as a part of the allocation of
purchase price to assets acquired and liabilities assumed. We add
back the amount of the write-down applicable to the period as we
believe such amount directly correlates to the underlying
performance of our business operations. |
|
|
|
|
|
|
Other acquisition-related adjustments - Consists of
acquisition, employee separation, and other costs associated with
our acquisition of the Health Services business in February 2015.
We exclude other acquisition-related adjustments as they are
non-recurring charges, and we believe the amount of such expenses
in any specific period may not directly correlate to the underlying
performance of our business operations. Such amount is included in
our Condensed Consolidated Statements of Operations in the caption
"General and administrative" expense. |
|
|
|
|
|
|
Income tax effect of pre-tax adjustments - The GAAP effective
income tax rate for the applicable quarterly period is applied to
pre-tax adjustments for Adjusted Net Earnings. |
|
|
|
|
|
|
Share-based compensation permanent tax items - Consists of
permanent items impacting the Company's income tax provision
related to our share-based compensation arrangements, including net
excess tax benefits recognized upon the exercise of stock options.
We exclude such items as we believe the amount of such items in any
specific period may not directly correlate to the underlying
performance of our business operations. Such amount is included in
our Condensed Consolidated Statements of Operations in the caption
"Income Taxes." |
|
|
|
|
|
|
Cerner's future period guidance in this release
includes adjustments for items not indicative of our core
operations, which may include without limitation share-based
compensation expense and acquisition-related expenses, such as
integration expenses, and may be affected by changes in ongoing
assumptions and judgments relating to the Company's acquired
businesses, and may also be affected by nonrecurring, unusual or
unanticipated charges, expenses or gains, all of which are excluded
in the calculation of non-GAAP Adjusted Operating Earnings,
Adjusted Net Earnings and Adjusted Diluted Earnings Per Share as
described above. The exact amount of these adjustments are not
currently determinable, but may be significant. It is therefore not
practicable to reconcile this non-GAAP guidance to the most
comparable GAAP measures. |
|
CERNER CORPORATION AND SUBSIDIARIES |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
As
of April 1, 2017 (unaudited) and December 31, 2016 |
|
|
|
|
|
|
|
(In
thousands) |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
378,452 |
|
$ |
170,861 |
|
|
Short-term investments |
|
153,458 |
|
|
185,588 |
|
|
Receivables, net |
|
986,354 |
|
|
944,943 |
|
|
Inventory |
|
19,013 |
|
|
14,740 |
|
|
Prepaid
expenses and other |
|
288,833 |
|
|
303,229 |
|
|
Total
current assets |
|
1,826,110 |
|
|
1,619,361 |
|
|
|
|
|
|
Property and equipment, net |
|
1,569,023 |
|
|
1,552,524 |
|
|
Software development costs, net |
|
751,705 |
|
|
719,209 |
|
|
Goodwill |
|
845,842 |
|
|
844,200 |
|
|
Intangible assets, net |
|
542,715 |
|
|
566,047 |
|
|
Long-term investments |
|
77,206 |
|
|
109,374 |
|
|
Other assets |
|
190,607 |
|
|
219,248 |
|
|
Total
assets |
$ |
5,803,208 |
|
$ |
5,629,963 |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts
payable |
$ |
207,001 |
|
$ |
238,134 |
|
|
Current
installments of long-term debt and capital lease obligations |
|
17,398 |
|
|
26,197 |
|
|
Deferred
revenue |
|
338,074 |
|
|
311,839 |
|
|
Accrued
payroll and tax withholdings |
|
208,467 |
|
|
211,554 |
|
|
Other
accrued expenses |
|
62,599 |
|
|
57,677 |
|
|
Total
current liabilities |
|
833,539 |
|
|
845,401 |
|
|
|
|
|
|
Long-term debt and capital lease obligations |
|
532,747 |
|
|
537,552 |
|
|
Deferred income taxes and other liabilities |
|
311,540 |
|
|
306,263 |
|
|
Deferred revenue |
|
12,506 |
|
|
12,800 |
|
|
Total
liabilities |
|
1,690,332 |
|
|
1,702,016 |
|
|
|
|
|
|
Shareholders’ Equity: |
|
|
|
Common stock |
|
3,545 |
|
|
3,537 |
|
|
Additional paid-in capital |
|
1,254,544 |
|
|
1,230,913 |
|
|
Retained
earnings |
|
4,245,101 |
|
|
4,094,327 |
|
|
Treasury
stock |
|
(1,290,665 |
) |
|
(1,290,665 |
) |
|
Accumulated other comprehensive loss, net |
|
(99,649 |
) |
|
(110,165 |
) |
|
Total
shareholders’ equity |
|
4,112,876 |
|
|
3,927,947 |
|
|
Total
liabilities and shareholders’ equity |
$ |
5,803,208 |
|
$ |
5,629,963 |
|
|
|
|
|
|
CERNER CORPORATION AND SUBSIDIARIES |
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
|
|
|
For the three months
ended April 1, 2017 and April 2, 2016 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
(In
thousands) |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
Net
earnings |
$ |
173,213 |
|
$ |
150,360 |
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
134,833 |
|
|
119,126 |
|
|
Share-based compensation expense |
|
17,500 |
|
|
17,811 |
|
|
Provision
for deferred income taxes |
|
11,214 |
|
|
7,978 |
|
|
Changes in assets and liabilities (net of businesses
acquired): |
|
|
|
Receivables, net |
|
(34,236 |
) |
|
101,787 |
|
|
Inventory |
|
(4,266 |
) |
|
(8,452 |
) |
|
Prepaid
expenses and other |
|
27,270 |
|
|
(4,751 |
) |
|
Accounts
payable |
|
(21,908 |
) |
|
(23,060 |
) |
|
Accrued
income taxes |
|
768 |
|
|
11,201 |
|
|
Deferred
revenue |
|
24,269 |
|
|
(32,309 |
) |
|
Other
accrued liabilities |
|
(25,072 |
) |
|
(3,486 |
) |
|
|
|
|
|
Net
cash provided by operating activities |
|
303,585 |
|
|
336,205 |
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Capital
purchases |
|
(88,065 |
) |
|
(99,351 |
) |
|
Capitalized software development costs |
|
(71,092 |
) |
|
(75,340 |
) |
|
Purchases
of investments |
|
(53,340 |
) |
|
(157,744 |
) |
|
Sales and
maturities of investments |
|
115,030 |
|
|
32,473 |
|
|
Purchase
of other intangibles |
|
(6,385 |
) |
|
(3,592 |
) |
|
|
|
|
|
Net
cash used in investing activities |
|
(103,852 |
) |
|
(303,554 |
) |
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Proceeds
from exercises of stock options |
|
10,683 |
|
|
10,421 |
|
|
Payments
to taxing authorities in connection with shares directly withheld
from associates |
|
(5,314 |
) |
|
(419 |
) |
|
Treasury
stock purchases |
|
— |
|
|
(150,056 |
) |
|
Contingent consideration payments for acquisition of
businesses |
|
(1,000 |
) |
|
— |
|
|
|
|
|
|
Net
cash provided by (used in) financing activities |
|
4,369 |
|
|
(140,054 |
) |
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
3,489 |
|
|
870 |
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
207,591 |
|
|
(106,533 |
) |
|
Cash
and cash equivalents at beginning of period |
|
170,861 |
|
|
402,122 |
|
|
|
|
|
|
Cash
and cash equivalents at end of period |
$ |
378,452 |
|
$ |
295,589 |
|
|
|
|
|
|
Summary of acquisition transactions: |
|
|
|
Fair
value of tangible assets acquired |
$ |
— |
|
$ |
(10,200 |
) |
|
Fair
value of intangible assets acquired |
|
— |
|
|
(25,000 |
) |
|
Fair
value of goodwill |
|
— |
|
|
46,940 |
|
|
Less:
Fair value of liabilities assumed |
|
— |
|
|
(11,740 |
) |
|
|
|
|
|
Net cash
used |
$ |
— |
|
$ |
— |
|
|
|
|
|
|
Investor Contact: Allan Kells, (816) 201-2445, akells@cerner.com
Media Contact: Dan Smith, (913) 304-3991, dan.smith1@cerner.com
Cerner’s Internet Home Page: www.cerner.com
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