Computer Programs and Systems, Inc. (NASDAQ:CPSI) Q4 2019 Earnings Conference Call - Final Transcript

Feb 11, 2020 • 04:30 pm ET

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Computer Programs and Systems, Inc. (NASDAQ:CPSI) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the CPSI Fourth Quarter and Year End 2019 Conference Call. [Operator Instructions] Please note, today's event is being recorded.

I would now like to turn the conference over to Drew Anderson. Please go ahead.

Executive
Unidentified Speaker

Good afternoon, and welcome to the CPSI Fourth Quarter 2019 Earnings Conference Call. During this call, we may make statements regarding future operating plans, expectations and performance that constitute forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution you that any such forward-looking statements only reflect management expectations and predictions based upon currently available information and are not guarantees of future results or performance. Actual results may differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties and other factors including those described 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 provided in this call 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 call.

At this time, I will now turn the call over to Mr. Boyd Douglas, President and Chief Executive Officer. Please go ahead, sir.

Executive
J. Boyd Douglas

Thanks, Drew. Good afternoon, everyone, and thank you for joining us. Joining me on the call today is Matt Chambless, our Chief Financial Officer. At the conclusion of our prepared comments, David Dye, Chief Growth Officer will join us for the Q&A session. Chris Fowler, will not be on the call today as he's out sick with the flu.

We're very pleased with the performance in the second half of the year on a number of levels. An important highlight was our strong bookings that totaled $51 million in the second half of the year and more than 20% increase over the second half of 2018. And looking at our nearly $18 million in software system bookings in the fourth quarter, it is worth noting that we've seen an increase in the average contract price which we believe is being driven by shift and competition as well as our increasing product competitiveness as we continue to make progress delivering on our single platform solution.

2019 also reinforced our optimism around the growth opportunity outside the US. We signed a $2.1 million acute EHR contract in the Caribbean in 2019 and added another Caribbean contract to bookings in the first quarter of 2020. In addition, during the fourth quarter of 2019, we announced our partnership with Sunnybrook Health Sciences Center to create a first of its kind, Canadian-made hospital information system solution. This strengthens our prospects for pursuing the robust Canadian EHR replacement market over the next five to 10 years.

Finally, while it will take time to realize, we are seeing genuine interest from international government