HMS Holdings Corp. (NASDAQ:HMSY) Q4 2019 Earnings Conference Call - Final Transcript
Feb 21, 2020 • 08:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the HMS Q4 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today's conference is being recorded. [Operator Instructions] I would now like to introduce your host for today's conference call, Mr. Robert Borchert, SVP, Investor Relations, you may begin.
Thank you, Kevin and good morning, everyone. Joining me are Bill Lucia, our Chairman and Chief Executive Officer and Jeff Sherman, our Chief Financial Officer. This call is being webcast and can be accessed via the Investor Relations section of our Company website at hms.com. Today's press release highlighting our financial results is also posted on our IR website. Bill and Jeff will first provide their perspective on our recent financial and operating results and business outlook and then we'll open the line for questions. We ask you to please limit yourself to one question and one follow-up, so we can get through the full queue in a timely fashion.
I'd like to remind you that the financial results reported today and in this morning's press release are preliminary and are not final until our Form 10-K for the year ended December 31, 2019 is filed. Some of the statements we will make today are forward-looking in nature based on our current expectations and a view of our business as we see it today. Such statements, including those related to our full-year 2020 guidance, future financial and operating performance, and future business plans and objectives are subject to risks and uncertainties that may cause actual results to differ materially. As a result, they should be considered in conjunction with the cautionary statements in today's press release and the risk factors described in the Company's most recent SEC filings, including our Form 10-K.
Finally, we may refer to certain non-GAAP financial measures this morning. Reconciliations of these measures to comparable GAAP measures are included in our press release posted to our website.
With that, I will now hand the call over to Bill.
Thank you, Robert and good morning, everyone. HMS posted solid revenue and profit growth in full year 2019, with total revenue for the year increasing 4.7% and adjusted EBITDA up 10.6% from the prior year. We also posted record operating cash flow for the year, and this will continue to fuel our ability to further invest in our people, processes, and technology and drive HMS' growth going forward. The fourth quarter of 2019 was actually the highest revenue quarter in our Company's history. And on an annual basis, we continue to experience top and bottom line growth, driven by our product innovation, application of new technologies, and expansion with both current and new clients.
As we noted in previous quarters, our business can experience quarterly variability. The sequential 4.2% increase in our COB revenue from Q3 to Q4 was an improvement, but not at the level we had