Company Launches Transformation Initiative with Goal of $80
million in Adjusted EBITDA in 2024; Targets Three-Year Average
Organic Recurring Revenue Growth Rate of 5% to 8%
Highlights for Fourth Quarter 2020:
- Revenues of $66.8 million;
- GAAP net income of $3.1 million and non-GAAP net income of $7.8
million;
- GAAP earnings per diluted share of $0.22 and non-GAAP earnings
per diluted share of $0.55;
- Adjusted EBITDA of $12.3 million;
- Bookings of $21.2 million;
- 47,000 shares repurchased for $1.3 million;
- Cash provided by operations of $16.2 million; and
- Net debt of $64.1 million
CPSI (NASDAQ: CPSI), a community healthcare solutions company,
today announced results for the fourth quarter and year ended
December 31, 2020.
Total revenues for the quarter ended December 31, 2020, were
$66.8 million, compared with total revenues of $70.6 million for
the prior-year fourth quarter. GAAP net income for the quarter
ended December 31, 2020, was $3.1 million, or $0.22 per diluted
share, compared with $11.2 million, or $0.78 per diluted share, for
the quarter ended December 31, 2019. Cash provided by operations
for the fourth quarter of 2020 was $16.2 million, compared with
$18.1 million for the prior-year quarter. Net debt at December 31,
2020, was $64.1 million.
Total revenues for the year ended December 31, 2020, were $264.5
million, compared with total revenues of $274.6 million for the
prior year. GAAP net income for the year ended December 31, 2020,
was $14.2 million, or $0.98 per diluted share, compared with $20.5
million, or $1.43 per diluted share, for the year ended December
31, 2019. Cash provided by operations for 2020 was $49.1 million,
compared with $43.6 million for the prior year.
Commenting on the Company’s financial performance for the fourth
quarter of 2020, Matt Chambless, chief financial officer of CPSI,
stated, “The fourth quarter ended with solid metrics across the
board, especially considering the lingering effect of the pandemic
on patient volumes and a higher concentration of Software as a
Service (SaaS) implementations for our Thrive solution. Mostly
notably, the quarter’s $16.2 million of operating cash flows were
the third highest in Company history, allowing for 13% annual
growth in operating cash flows despite the pandemic’s headwinds. We
are proud of our execution during this disruptive year, and we
believe that we are well positioned for future growth and
increasing shareholder value. With a comfortable leverage profile,
ample capacity to deploy capital, and a realistic plan for
significant top and bottom line growth, we are ready to capitalize
on a more favorable post-COVID environment.
“Looking forward, the Company expects to achieve three-year
annual organic recurring revenue growth of 5% to 8%. The continued
growth of TruBridge among both existing and new customers will
continue to be our primary catalyst for recurring revenue growth,
supported by an accelerating shift in software and support revenues
from license to SaaS. For 2021, we expect recurring revenue growth
at the higher end of that 5% to 8% range, with total expected
revenues of $270 to $280 million. GAAP net margin is expected to be
6.5% to 7.5%, and Adjusted EBITDA margin is expected to be 16.5% to
17.5% as we anticipate incremental margin pressure from the
continued SaaS transition.”
Boyd Douglas, president and chief executive officer of CPSI,
stated, “We have turned our attention to a journey of
transformation that will drive long-term sustainability and
exciting growth for CPSI. Over the past several months, we
collaborated with a premier consulting group to review our strategy
and growth opportunities. As a result, we are focused on
modernizing our business and achieving great success in a
post-COVID world both in the current markets we serve and by
reaching adjacent markets through innovation. The core growth
component of this transformation plan is highlighted by TruBridge
cross sales, net new TruBridge sales, the continued retention of
our valuable EHR client base and cost optimization. This
aggressive, yet obtainable, plan is intended to provide sizeable
shareholder returns over the next three to four years culminating
in an end-goal of achieving $80 million in Adjusted EBITDA in
2024.”
CPSI will hold a live webcast to discuss fourth quarter 2020
results today, Tuesday, February 9, 2021, at 4:30 p.m. Eastern
time. A 30-day online replay will be available approximately one
hour following the conclusion of the live webcast. To listen to the
live webcast or access the replay, visit the Company’s website,
www.cpsi.com.
About CPSI
CPSI is a leading provider of healthcare solutions and services
for community hospitals, their clinics and post-acute care
facilities. Founded in 1979, CPSI is the parent of four companies –
Evident, LLC, American HealthTech, Inc., TruBridge, LLC and
iNetXperts, Corp. d/b/a Get Real Health. Our combined companies are
focused on helping improve the health of the communities we serve,
connecting communities for a better patient care experience, and
improving the financial operations of our customers. Evident
provides comprehensive EHR solutions for community hospitals and
their affiliated clinics. American HealthTech is one of the
nation’s largest providers of EHR solutions and services for
post-acute care facilities. TruBridge focuses on providing
business, consulting and managed IT services, along with its
complete RCM solution, for all care settings. Get Real Health
focuses on solutions aimed at improving patient engagement for
individuals and healthcare providers. For more information, visit
www.cpsi.com.
Forward-Looking Statements
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 the Company’s future financial and operational 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: the global pandemic related to the novel coronavirus
COVID-19 (including the rate of spread, duration and geographic
coverage of the COVID-19 pandemic, the rate and extent to which the
virus mutates, the status of testing capabilities, the development,
distribution, and efficacy of vaccines for COVID-19 or any mutant
strains and the development and effectiveness of therapeutic
remedies), which has decreased our hospital customers’ patient
volumes and negatively impacted our variable revenues, and could
negatively impact our gross margins and income, as well as our
financial position and/or liquidity; federal, state and local
government actions to address and contain the impact of COVID-19
and their impact on us and our hospital clients; operational
disruptions and heightened cybersecurity risks due to a significant
percentage of our workforce working remotely; overall business and
economic conditions affecting the healthcare industry, including
the effects of the federal healthcare reform legislation enacted in
2010, and implementing regulations, on the businesses of our
hospital customers; government regulation of our products and
services and the healthcare and health insurance industries,
including changes in healthcare policy affecting Medicare and
Medicaid reimbursement rates and qualifying technological
standards; changes in customer purchasing priorities, capital
expenditures and demand for information technology systems;
saturation of our target market and hospital consolidations;
general economic conditions, including changes in the financial and
credit markets that may affect the availability and cost of credit
to us or our customers; our substantial indebtedness, and our
ability to incur additional indebtedness in the future; our
potential inability to generate sufficient cash in order to meet
our debt service obligations; restrictions on our current and
future operations because of the terms of our senior secured credit
facilities; market risks related to interest rate changes;
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; failure of
our products to function properly resulting in claims for medical
and other losses; breaches of security and viruses in our systems
resulting in customer claims against us and harm to our reputation;
failure to maintain customer satisfaction through new product
releases free of undetected errors or problems; failure to convince
customers to migrate to current or future releases of our products;
interruptions in our power supply and/or telecommunications
capabilities, including those caused by natural disaster; our
ability to attract and retain qualified client service and support
personnel; failure to properly manage growth in new markets we may
enter; misappropriation of our intellectual property rights and
potential intellectual property claims and litigation against us;
changes in accounting principles generally accepted in the United
States; significant charges to earnings if our goodwill or
intangible assets become impaired; fluctuations in quarterly
financial performance due to, among other factors, timing of
customer installations; 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 and Quarterly Report on
Form 10-Q. Relative to our dividend policy, the payment of cash
dividends is subject to the discretion of our Board of Directors
and will be determined in light of then-current conditions,
including our earnings, our leverage, our operations, our financial
conditions, our capital requirements and other factors deemed
relevant by our Board of Directors. In the future, our Board of
Directors may change our dividend policy, including the frequency
or amount of any dividend, in light of then-existing conditions. 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. Condensed
Consolidated Statements of Income (In '000s, except per
share data) (Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Sales revenues: System sales and
support
$
36,657
$
41,475
$
152,954
$
165,352
TruBridge
30,192
29,163
111,534
109,282
Total sales revenues
66,849
70,638
264,488
274,634
Costs of sales:
System sales and support
17,460
19,102
69,361
73,872
TruBridge
14,781
14,956
58,881
56,617
Total costs of sales
32,241
34,058
128,242
130,489
Gross profit
34,608
36,580
136,246
144,145
Operating expenses:
Product development
8,265
9,178
33,457
36,861
Sales and marketing
5,661
6,612
24,185
27,774
General and administrative
11,886
9,012
46,129
43,921
Amortization of acquisition-related intangibles
2,822
2,866
11,421
11,006
Total operating expenses
28,634
27,668
115,192
119,562
Operating income
5,974
8,912
21,054
24,583
Other income (expense):
Other income
252
272
1,494
807
Gain on contingent consideration
-
5,000
-
5,000
Loss on extinguishment of debt
-
-
(202
)
-
Interest expense
(730
)
(1,425
)
(3,562
)
(6,694
)
Total other income (expense)
(478
)
3,847
(2,270
)
(887
)
Income before taxes
5,496
12,759
18,784
23,696
Provision for income
taxes
2,373
1,533
4,538
3,228
Net income
$
3,123
$
11,226
$
14,246
$
20,468
Net income per common
share—basic
$
0.22
$
0.78
$
0.98
$
1.43
Net income per common share—diluted
$
0.22
$
0.78
$
0.98
$
1.43
Weighted average shares
outstanding used in per common
share computations: Basic
14,086
13,830
14,038
13,778
Diluted
14,086
13,830
14,038
13,778
Computer Programs and Systems, Inc. Condensed
Consolidated Balance Sheets (In '000s, except per share
data) December 31,2020(unaudited)
Dec. 31, 2019
Assets Current assets
Cash and cash equivalents
$
12,671
$
7,357
Accounts receivable, net of allowance for doubtful accounts of
$1,701 and $2,078, respectively
32,414
38,819
Financing receivables, current portion, net
10,821
12,032
Inventories
1,084
1,426
Prepaid income taxes
1,789
1,337
Prepaid expenses and other
8,365
5,861
Total current assets
67,144
66,832
Property & equipment, net
13,139
11,593
Software development costs, net
3,210
-
Operating lease assets
6,610
7,800
Financing receivables, net of current portion
11,477
18,267
Other assets, net of current portion
2,787
1,771
Intangible assets, net
71,689
83,110
Goodwill
150,216
150,216
Total assets
$
326,272
$
339,589
Liabilities & Stockholders' Equity
Current liabilities Accounts payable
$
7,716
$
8,804
Current portion of long-term debt
3,457
8,430
Deferred revenue
8,130
8,628
Accrued vacation
5,353
4,301
Other accrued liabilities
12,786
11,767
Total current liabilities
37,442
41,930
Long-term debt, less current portion
73,360
99,433
Operating lease liabilities, net of current portion
5,092
6,256
Deferred tax liabilities
10,378
7,623
Total liabilities
126,272
155,242
Stockholders' Equity Common
stock, $0.001 par value; 30,000 shares authorized; 14,511 and
14,356 shares issued
15
14
Treasury stock, 46,900 and zero shares
(1,261
)
-
Additional paid-in capital
181,622
174,618
Retained earnings
19,624
9,715
Total stockholders' equity
200,000
184,347
Total liabilities and stockholders'
equity
$
326,272
$
339,589
Computer Programs and Systems, Inc. Condensed
Consolidated Statements of Cash Flows (In '000s)
(Unaudited)
Twelve Months Ended December
31,
2020
2019
Operating activities: Net income
$
14,246
$
20,468
Adjustments to net income: Provision for bad debt
4,370
2,348
Deferred taxes
2,755
1,011
Stock-based compensation
7,005
9,822
Depreciation
1,790
1,407
Amortization of acquisition-related intangibles
11,421
11,006
Amortization of software development costs
118
-
Amortization of deferred finance costs
317
345
Gain on contingent consideration
-
(5,000
)
Loss on extinguishment of debt
202
-
Changes in operating assets and liabilities: Accounts
receivable
3,667
641
Financing receivables
6,369
3,053
Inventories
342
72
Prepaid expenses and other
(3,519
)
(1,474
)
Accounts payable
(1,088
)
2,542
Deferred revenue
(498
)
(2,003
)
Other liabilities
2,097
(1,418
)
Income taxes payable
(452
)
782
Net cash provided by operating activities
49,142
43,602
Investing activities:
Purchase of business, net of cash acquired
-
(10,733
)
Investment in software development
(3,328
)
-
Purchases of property and equipment
(3,336
)
(1,760
)
Net cash used in investing activities
(6,664
)
(12,493
)
Financing activities:
Dividends paid
(4,338
)
(5,729
)
Treasury stock purchases
(1,261
)
-
Proceeds from long-term debt
65
-
Payments of long-term debt principal
(4,069
)
(13,609
)
Payments of revolving line of credit
(27,561
)
(20,693
)
Proceeds from revolving line of credit
-
11,000
Payments on capital lease
-
(250
)
Payments of contingent consideration
-
(206
)
Proceeds from the exercise of options
-
3
Net cash used in financing activities
(37,164
)
(29,484
)
Net increase in cash and cash equivalents
5,314
1,625
Cash and cash equivalents, beginning of period
7,357
5,732
Cash and cash equivalents, end of period
$
12,671
$
7,357
Computer Programs and Systems, Inc. Consolidated
Bookings (In '000s)
Three Months Ended
Twelve Months Ended
In '000s
12/31/2020
12/31/2019
12/31/2020
12/31/2019
System sales and support(1)
$
11,144
$
17,638
$
48,790
$
52,306
TruBridge(2)
10,062
9,637
33,238
27,209
Total
$
21,206
$
27,275
$
82,028
$
79,515
(1)
Generally calculated as the total contract price (for system sales)
and annualized contract value (for support).
(2)
Generally calculated as the total contract price (for
non-recurring, project-related amounts) and annualized contract
value (for recurring amounts).
Computer Programs and
Systems, Inc. Bookings Composition (In '000s, except
per share data) (Unaudited)
Three Months Ended Twelve Months Ended
12/31/2020 12/31/2019 12/31/2020 12/31/2019
System sales and support
Non-subscription sales(1)
$
6,498
$
10,117
$
27,500
$
32,510
Subscription revenue(2)
3,243
5,972
16,899
14,974
Other
1,403
1,549
4,391
4,822
TruBridge Net new(3)
3,700
2,523
10,511
7,905
Cross-sell(3)
4,970
5,409
20,285
16,988
Get Real Health
1,392
1,705
2,442
2,316
Total
$
21,206
$
27,275
$
82,028
$
79,515
(1)
Represents nonrecurring revenues that generally exhibit a timeframe
for bookings-to-revenue conversion of five to six months following
contract execution.
(2)
Represents recurring revenues to be recognized on a monthly basis
over a weighted-average contract period of five years, with a start
date in the next 12 months and an average timeframe for
commencement of bookings-to-revenue conversion of five to six
months following contract execution.
(3)
“Net new” represents bookings from outside the Company’s core EHR
client base, and “Cross-sell” represents bookings from existing EHR
customers. In each case, generally comprised of recurring revenues
to be recognized ratably over a one-year period and an average
timeframe for commencement of bookings-to-revenue conversion of
four to six months following contract execution.
Computer
Programs and Systems, Inc. Acute Care EHR Net New License
Mix Three Months
Ended Twelve Months Ended
12/31/2020
12/31/2019
12/31/2020
12/31/2019
SaaS(1)
3
7
17
12
Perpetual license(2)
-
6
8
16
Total
3
13
25
28
(1)
Exhibit revenue attribution that is recurring in nature.
(2)
Exhibit revenue attribution that is nonrecurring in nature.
Computer Programs and Systems, Inc. Reconciliation of
Non-GAAP Financial Measures (In '000s)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
Adjusted EBITDA:
2020
2019
2020
2019
Net income, as reported
$
3,123
$
11,226
$
14,246
$
20,468
Depreciation expense
456
323
1,790
1,407
Amortization of software development costs
39
-
118
-
Amortization of acquisition-related intangible assets
2,822
2,866
11,421
11,006
Stock-based compensation
1,831
2,524
7,005
9,822
Severance and other nonrecurring charges
1,183
215
1,998
3,143
Interest expense and other, net
478
1,153
2,270
5,887
Gain on contingent consideration
-
(5,000
)
-
(5,000
)
Provision for income taxes
2,373
1,533
4,538
3,228
Adjusted EBITDA
$
12,305
$
14,840
$
43,386
$
49,961
Computer Programs and Systems, Inc. Reconciliation
of Non-GAAP Financial Measures (In '000s, except per share
data) (Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
Non-GAAP Net Income and Non-GAAP EPS:
2020
2019
2020
2019
Net income, as reported
$
3,123
$
11,226
$
14,246
$
20,468
Pre-tax adjustments for Non-GAAP
EPS: Amortization of
acquisition-related intangible assets
2,822
2,866
11,421
11,006
Stock-based compensation
1,831
2,524
7,005
9,822
Severance and other nonrecurring charges
1,183
215
1,998
3,143
Non-cash interest expense
75
86
317
345
Loss on extinguishment of debt
-
-
202
-
After-tax adjustments for Non-GAAP EPS:
Tax-effect of pre-tax adjustments, at 21%
(1,241
)
(1,195
)
(4,398
)
(5,106
)
Tax shortfall from stock-based compensation
(2
)
-
297
186
Gain on contingent consideration
-
(5,000
)
-
(5,000
)
Non-GAAP net income
$
7,791
$
10,722
$
31,088
$
34,864
Weighted average shares
outstanding, diluted
14,086
13,830
14,038
13,778
Non-GAAP EPS
$
0.55
$
0.78
$
2.21
$
2.53
Explanation of Non-GAAP Financial Measures
We report our financial results in accordance with accounting
principles generally accepted in the United States of America, or
“GAAP.” However, management believes that, in order to properly
understand our short-term and long-term financial and operational
trends, investors may wish to consider the impact of certain
non-cash or non-recurring items, when used as a supplement to
financial performance measures that are prepared in accordance with
GAAP. These items result from facts and circumstances that vary in
frequency and impact on continuing operations. Management uses
these non-GAAP financial measures in order to evaluate the
operating performance of the Company and compare it against past
periods, make operating decisions, and serve as a basis for
strategic planning. These non-GAAP financial measures provide
management with additional means to understand and evaluate the
operating results and trends in our ongoing business by eliminating
certain non-cash expenses and other items that management believes
might otherwise make comparisons of our ongoing business with prior
periods more difficult, obscure trends in ongoing operations, or
reduce management’s ability to make useful forecasts. In addition,
management understands that some investors and financial analysts
find these non-GAAP financial measures helpful in analyzing our
financial and operational performance and comparing this
performance to our peers and competitors.
As such, to supplement the GAAP information provided, we present
in this press release and during the live webcast discussing our
financial results the following non-GAAP financial measures:
Adjusted EBITDA, Non-GAAP net income, and Non-GAAP earnings per
share (“EPS”).
We calculate each of these non-GAAP financial measures as
follows:
- Adjusted EBITDA – Adjusted EBITDA
consists of GAAP net income (loss) as reported and adjusts for (i)
depreciation expense; (ii) amortization of software development
costs; (iii) amortization of acquisition-related intangible assets;
(iv) stock-based compensation; (v) severance and other
non-recurring charges; (vi) interest expense and other, net; (vii)
gain on contingent consideration; and (viii) the provision for
income taxes.
- Non-GAAP net income – Non-GAAP net
income consists of GAAP net income (loss) as reported and adjusts
for (i) amortization of acquisition-related intangible assets; (ii)
stock-based compensation; (iii) severance and other non-recurring
charges; (iv) non-cash interest expense; (v) loss on extinguishment
of debt; and (vi) the total tax effect of items (i) through (v).
Adjustments to Non-GAAP net income also include the after-tax
effect of the shortfall from stock-based compensation and gain on
contingent consideration.
- Non-GAAP EPS – Non-GAAP EPS
consists of Non-GAAP net income, as defined above, divided by
weighted average shares outstanding (diluted) in the applicable
period.
Certain of the items excluded or adjusted to arrive at these
non-GAAP financial measures are described below:
- Amortization of software development
costs – Amortization of software development costs is a
non-cash expense resulting from the application of U.S. GAAP to our
product development expenditures, which requires capitalization of
expenditures meeting certain defined criteria which are then
amortized over the estimated useful life of the related assets. We
exclude amortization expense related to capitalized software
development costs from non-GAAP financial measures because we
believe the amount of such expenses in any period may not directly
correlate with the underlying performance of our business
operations.
- Amortization of acquisition-related
intangible assets – Acquisition-related amortization expense
is a non-cash expense arising primarily from the acquisition of
intangible assets in connection with acquisitions or investments.
We exclude acquisition-related amortization expense from non-GAAP
financial measures because we believe (i) the amount of such
expenses in any specific period may not directly correlate to the
underlying performance of our business operations and (ii) such
expenses can vary significantly between periods as a result of new
acquisitions and full amortization of previously acquired
intangible assets. Investors should note that the use of these
intangible assets contributed to revenue in the periods presented
and will contribute to future revenue generation, and the related
amortization expense will recur in future periods.
- Stock-based compensation –
Stock-based compensation expense is a non-cash expense arising from
the grant of stock-based awards. We exclude stock-based
compensation expense from non-GAAP financial measures because we
believe (i) the amount of such expenses in any specific period may
not directly correlate to the underlying performance of our
business operations and (ii) such expenses can vary significantly
between periods as a result of the timing and valuation of grants
of new stock-based awards, including grants in connection with
acquisitions. Investors should note that stock-based compensation
is a key incentive offered to employees whose efforts contributed
to the operating results in the periods presented and are expected
to contribute to operating results in future periods, and such
expense will recur in future periods.
- Severance and other non-recurring
charges– Non-recurring charges relate to certain severance
and other charges incurred in connection with activities that are
considered one-time. We exclude non-recurring expenses and
transaction-related costs from non-GAAP financial measures because
we believe (i) the amount of such expenses in any specific period
may not directly correlate to the underlying performance of our
business operations and (ii) such expenses can vary significantly
between periods.
- Non-cash interest expense –
Non-cash interest expense includes amortization of deferred debt
issuance costs. We exclude non-cash interest expense from non-GAAP
financial measures because we believe these non-cash amounts relate
to specific transactions and, as such, may not directly correlate
to the underlying performance of our business operations.
- Gain on contingent consideration –
The purchase agreement for our acquisition of Get Real Health in
2019 contained contingent consideration, or “earnout,” provisions
whereby the previous shareholders of Get Real Health would receive
additional consideration at the conclusion of 2019, depending upon
the achievement of certain profitability targets. After the initial
measurement period, U.S. GAAP requires that any adjustments to the
estimated fair value of this contingent liability, including upon
final determination of amounts due, should be recorded in the
relevant period’s earnings. We exclude gains on contingent
consideration from non-GAAP financial measures because we believe
(i) the amount of such gains in any specific period may not
directly correlate to the underlying performance of our business
operations and (ii) such gains can vary significantly between
periods.
- Tax shortfall (excess tax benefit) from
stock-based compensation – ASU 2016-09, Improvements to
Employee Share-Based Payment Accounting, became effective for the
Company during the first quarter of 2017 and changes the treatment
of tax shortfall and excess tax benefits arising from stock-based
compensation arrangements. Prior to ASU 2016-09, these amounts were
recorded as an increase (for excess benefits) or decrease (for
shortfalls) to additional paid-in capital. With the adoption of ASU
2016-09, these amounts are now captured in the period’s income tax
expense. We exclude this component of income tax expense from
non-GAAP financial measures because we believe (i) the amount of
such expenses or benefits in any specific period may not directly
correlate to the underlying performance of our business operations;
and (ii) such expenses or benefits can vary significantly between
periods as a result of the valuation of grants of new stock-based
awards, the timing of vesting of awards, and periodic movements in
the fair value of our common stock.
Management considers these non-GAAP financial measures to be
important indicators of our operational strength and performance of
our business and a good measure of our historical operating trends,
in particular the extent to which ongoing operations impact our
overall financial performance. In addition, management may use
Adjusted EBITDA, Non-GAAP net income and/or Non-GAAP EPS to measure
the achievement of performance objectives under the Company’s stock
and cash incentive programs. Note, however, that these non-GAAP
financial measures are performance measures only, and they do not
provide any measure of cash flow or liquidity. Non-GAAP financial
measures are not alternatives for measures of financial performance
prepared in accordance with GAAP and may be different from
similarly titled non-GAAP measures presented by other companies,
limiting their usefulness as comparative measures. Non-GAAP
financial measures have limitations in that they do not reflect all
of the amounts associated with our results of operations as
determined in accordance with GAAP. Additionally, there is no
certainty that we will not incur expenses in the future that are
similar to those excluded in the calculations of the non-GAAP
financial measures presented in this press release. Investors and
potential investors are encouraged to review the “Unaudited
Reconciliation of Non-GAAP Financial Measures” above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210209006061/en/
Tracey Schroeder Chief Marketing Officer
Tracey.schroeder@cpsi.com (251) 639-8100
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