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Classified in: Science and technology, Business
Subjects: EARNINGS, Conference Call, Webcast

TruBridge Announces First Quarter 2024 Results


TruBridge, Inc. (NASDAQ: TBRG), a healthcare solutions company, today announced financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights

All comparisons are to the quarter ended March 31, 2023, unless otherwise noted

Commenting on the results, Chris Fowler, chief executive officer of TruBridge, Inc., stated, "We continued to make significant progress on our transformation efforts during the first quarter, and we remained focused on the key areas that we believe will drive results. The refinement of our financial operations gives us enhanced capabilities in regard to accurate forecasting, an improved capital allocation strategy and identification of cost savings opportunities and provides us a more stable foundation from which to grow."

"We were pleased with the continued momentum in bookings this quarter, which came in at $23 million and reflected wins in both our RCM and our EHR business, as well as the growth in our pipeline especially in the larger deals that we've started to move towards in the past few quarters. Our success in capturing these larger deals in our RCM business does bring an added layer of timing complexity from contracting to implementation. As a result, to reflect the variability in time to convert larger deals, we feel it's prudent to slightly revise our full-year revenue range. The work we have done on expense management, however, has put us in a strong position in terms of our profitability, allowing us to maintain our previous adjusted EBITDA outlook this year.

"TruBridge operates in an area of the market with tremendous need, and our solutions address many of them. We remain confident we can continue to deliver for our customers and shareholders," concluded Fowler.

Financial Guidance

For the second quarter of 2024, TruBridge expects to generate:

For the full year 2024, TruBridge expects to generate:

Conference Call

TruBridge will hold a live webcast to discuss first quarter 2024 results on Friday, May 10, 2024, at 7:00 a.m. Central time/8:00 a.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 investor relations website, investors.trubridge.com.

About TruBridge

We are a trusted partner to more than 1,500 healthcare organizations with a broad range of technology-first solutions that address the unique needs and challenges of diverse communities, promoting equitable access to quality care and fostering positive outcomes. TruBridge has over four decades of experience in connecting providers, patients and communities with innovative data-driven solutions that create real value by supporting both the financial and clinical side of healthcare delivery. Our industry leading HFMA Peer Reviewed® suite of revenue cycle management (RCM) offerings combine unparalleled visibility and transparency to enhance productivity and support the financial health of healthcare organizations across all care settings. We support efficient patient care with electronic health record (EHR) product offerings that successfully integrate data between care settings. Above all, we believe in the power of community and encourage collaboration, connection, and empowerment with our customers. We clear the way for care. For more information, please visit www.trubridge.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: saturation of our target market and hospital consolidations; unfavorable economic or market conditions that may cause a decline in spending for information technology and services; significant legislative and regulatory uncertainty in the healthcare industry; exposure to liability for failure to comply with regulatory requirements; pandemics and other public health crises and related economic disruptions; transition to a subscription-based recurring revenue model and modernization of our technology; competition with companies that have greater financial, technical and marketing resources than we have; potential future acquisitions that may be expensive, time consuming, and subject to other inherent risks; our ability to attract and retain qualified client service and support personnel; disruption from periodic restructuring of our sales force; potential delay in the development of markets for our RCM service offering; potential inability to properly manage growth in new markets we may enter; potential disruption of our business due to our ongoing implementation of a new enterprise resource planning software solution; exposure to numerous and often conflicting laws, regulations, policies, standards or other requirements through our international business activities; potential litigation against us; our reliance on an international workforce which exposes us to various business disruptions; our utilization of artificial intelligence, which could expose us to liability or adversely affect our business if we cannot compete effectively with others using artificial intelligence; potential failure to develop new products or enhance current products that keep pace with 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; failure to maintain our margins and service rates; increase in the percentage of total revenues represented by service revenues, which have lower gross margins; exposure to liability in the event we provide inaccurate claims data to payors; exposure to liability claims arising out of the licensing of our software and provision of services; dependence on licenses of rights, products and services from third parties; misappropriation of our intellectual property rights and potential intellectual property claims and litigation against us; interruptions in our power supply and/or telecommunications capabilities, including those caused by natural disaster; potential inability to secure additional financing on favorable terms to meet our future capital needs; our substantial indebtedness, and our ability to incur additional indebtedness in the future; pressures on cash flow to service our outstanding debt; restrictive terms of our credit agreement on our current and future operations; changes in and interpretations of financial accounting matters that govern the measurement of our performance; 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; volatility in our stock price; failure to maintain effective internal control over financial reporting; inherent limitations in our internal control over financial reporting; vulnerability to significant damage from natural disasters; market risks related to interest rate changes; potential material adverse effects due to macroeconomic conditions, including bank failures or changes in related regulation; 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 our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. 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.

TruBridge, Inc.
Condensed Consolidated Statements of Income
(In '000s, except per share data)
(Unaudited)
 
Three Months Ended March 31,

 

2024

 

 

2023

 

Revenues
RCM

$

53,038

 

$

48,631

 

EHR

 

28,022

 

 

35,191

 

Patient engagement

 

2,187

 

 

2,411

 

Total revenues

 

83,247

 

 

86,233

 

 
Expenses
Costs of revenue (exclusive of amortization and depreciation)
RCM

 

29,597

 

 

27,183

 

EHR

 

11,287

 

 

16,348

 

Patient engagement

 

875

 

 

646

 

Total costs of revenue (exclusive of amortization and depreciation)

 

41,759

 

 

44,177

 

Product development

 

10,689

 

 

8,352

 

Sales and marketing

 

6,592

 

 

6,957

 

General and administrative

 

19,396

 

 

14,453

 

Amortization

 

5,869

 

 

5,500

 

Depreciation

 

400

 

 

499

 

Total expenses

 

84,705

 

 

79,938

 

 
Operating income (loss)

 

(1,458

)

 

6,295

 

 
Other income (expense):
Other income

 

1,422

 

 

267

 

Interest expense

 

(4,072

)

 

(2,669

)

Total other income (expense)

 

(2,650

)

 

(2,402

)

 
Income (loss) before taxes

 

(4,108

)

 

3,893

 

 
Provision (benefit) for income taxes

 

(1,592

)

 

809

 

 
Net income (loss)

$

(2,516

)

$

3,084

 

 
Net income (loss) per common share?basic

$

(0.17

)

$

0.21

 

Net income (loss) per common share?diluted

$

(0.17

)

$

0.21

 

 
Weighted average shares outstanding used in per common share computations:
Basic

 

14,234

 

 

14,136

 

Diluted

 

14,234

 

 

14,136

 

TruBridge, Inc.
Condensed Consolidated Balance Sheets
(In '000s, except per share data)
 
March 31, 2024
(unaudited)
Dec. 31, 2023
Assets
Current assets
Cash and cash equivalents

$

4,115

 

$

3,848

 

Accounts receivable, net of allowance for expected credit losses of $3,773 and $3,631, respectively

 

64,218

 

 

59,723

 

Financing receivables, current portion (net of allowance for expected credit losses of $304 and $319, respectively)

 

3,668

 

 

3,997

 

Inventories

 

980

 

 

475

 

Prepaid income taxes

 

1,151

 

 

1,628

 

Prepaid expenses and other

 

17,772

 

 

15,807

 

Assets of held for sale disposal group

 

-

 

 

25,977

 

Total current assets

 

91,904

 

 

111,455

 

 
Property & equipment, net

 

8,750

 

 

8,974

 

Software development costs, net

 

41,237

 

 

39,139

 

Operating lease assets

 

4,672

 

 

5,192

 

Financing receivables, net of current portion (net of allowance for expected credit losses of $79 and $97, respectively)

 

959

 

 

1,226

 

Other assets, net of current portion

 

8,331

 

 

7,314

 

Intangible assets, net

 

86,086

 

 

89,213

 

Goodwill

 

172,573

 

 

171,909

 

Deferred tax assets

 

1,905

 

 

-

 

Total assets

$

416,417

 

$

434,422

 

 
Liabilities & Stockholders' Equity
Current liabilities
Accounts payable

$

11,356

 

$

10,133

 

Current portion of long-term debt

 

3,074

 

 

3,141

 

Deferred revenue

 

9,079

 

 

8,677

 

Accrued vacation

 

5,429

 

 

5,410

 

Liabilities of held for sale disposal group

 

-

 

 

977

 

Other accrued liabilities

 

18,226

 

 

19,892

 

Total current liabilities

 

47,164

 

 

48,230

 

 
Long-term debt, net of current portion

 

181,732

 

 

195,270

 

Operating lease liabilities, net of current portion

 

2,848

 

 

3,074

 

Deferred tax liabilities

 

-

 

 

1,230

 

Total liabilities

 

231,744

 

 

247,804

 

 
Stockholders' Equity
Common stock, $0.001 par value; 30,000 shares authorized; 15,572 and 15,121 shares issued, respectively

 

15

 

 

15

 

Treasury stock, 613 and 572 shares, respectively

 

(17,417

)

 

(17,075

)

Accumulated other comprehensive gain

 

113

 

 

-

 

Additional paid-in capital

 

196,346

 

 

195,546

 

Retained earnings

 

5,616

 

 

8,132

 

Total stockholders' equity

 

184,673

 

 

186,618

 

 
Total liabilities and stockholders' equity

$

416,417

 

$

434,422

 

TruBridge, Inc.
Condensed Consolidated Statements of Cash Flows
(In '000s)
(Unaudited)
 
Three Months Ended March 31,

 

2024

 

 

2023

 

Operating activities:
Net income (loss)

$

(2,516

)

$

3,084

 

Adjustments to net income:
Provision for credit losses

 

500

 

 

(352

)

Deferred taxes

 

(2,982

)

 

572

 

Stock-based compensation

 

800

 

 

1,247

 

Depreciation

 

400

 

 

499

 

Gain on sale of business

 

(1,250

)

 

-

 

Amortization of acquisition-related intangibles

 

3,127

 

 

4,014

 

Amortization of software development costs

 

2,742

 

 

1,486

 

Amortization of deferred finance costs

 

107

 

 

90

 

Non-cash operating lease costs

 

675

 

 

479

 

Changes in operating assets and liabilities:
Accounts receivable

 

(4,112

)

 

(3,099

)

Financing receivables

 

628

 

 

619

 

Inventories

 

(505

)

 

(398

)

Prepaid expenses and other

 

772

 

 

(3,187

)

Accounts payable

 

1,253

 

 

5,605

 

Deferred revenue

 

1,006

 

 

47

 

Operating lease liabilities

 

(583

)

 

(499

)

Other liabilities

 

(2,573

)

 

(971

)

Prepaid income taxes

 

477

 

 

237

 

Net cash used in (provided by) operating activities

 

(2,034

)

 

9,473

 

 
Investing activities:
Purchase of business, net of cash acquired

 

21,410

 

 

-

 

Investment in software development

 

(4,839

)

 

(6,233

)

Purchases of property and equipment

 

(177

)

 

(16

)

Net cash provided by (used in) investing activities

 

16,394

 

 

(6,249

)

 
Financing activities:
Treasury stock purchases

 

(342

)

 

(2,484

)

Payments of long-term debt principal

 

(875

)

 

(875

)

Proceeds from revolving line of credit

 

15,423

 

 

5,000

 

Payments of revolving line of credit

 

(27,729

)

 

(5,000

)

Debt issuance cots

 

(529

)

 

-

 

Net cash used in financing activities

 

(14,052

)

 

(3,359

)

 
Decrease in cash and cash equivalents

 

308

 

 

(135

)

 
Change in cash and cash equivalents included in assets sold

 

(41

)

Cash and cash equivalents, beginning of period

 

3,848

 

 

6,951

 

Cash and cash equivalents, end of period

$

4,115

 

$

6,816

 

 
TruBridge, Inc.
Consolidated Bookings
(In '000s)
(Unaudited)
 
Three Months Ended March 31,
In '000s

2024

2023

RCM(1)

$

14,391

$

12,100

EHR(2)

 

8,610

 

7,271

Patient engagement(1)

 

568

 

476

 
Total

$

23,569

$

19,847

 

(1)

Generally calculated as the total contract price (for non-recurring, project-related amounts) and annualized contract value (for recurring amounts).

(2)

Generally calculated as the total contract price (for system sales) and annualized contract value (for support) for perpetual license system sales and total contract price for SaaS sales.
TruBridge, Inc.
Bookings Composition
(In '000s)
(Unaudited)
 
Three Months Ended March 31,

2024

2023

RCM
Net new(1)

$

8,993

$

6,029

Cross-sell(1)

 

5,398

 

6,071

EHR
Non-subscription sales(2)

 

3,078

 

4,064

Subscription revenue(3)

 

5,532

 

3,207

Patient engagement

 

568

 

476

 
Total

$

23,569

$

19,847

 

(1)

"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, such bookings are 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.

(2)

Represents nonrecurring revenues that generally exhibit a timeframe for bookings-to-revenue conversion of five to six months following contract execution.

(3)

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.
TruBridge, Inc.
Adjusted EBITDA - by Segment
(In '000s)
(unaudited)
 
Three Months Ended March 31,
In '000s

2024

2023

RCM

$

6,396

$

7,898

EHR

 

2,929

 

6,157

Patient engagement

 

129

 

588

 
Total

$

9,454

$

14,643

TruBridge, Inc.
Reconciliation of Non-GAAP Financial Measures
(In '000s)
(Unaudited)
 
Three Months Ended March 31,
Adjusted EBITDA:

 

2024

 

 

2023

 

Net income (loss), as reported

$

(2,516

)

$

3,084

 

Net Income Margin

 

(3.0

%)

 

3.6

%

 
Depreciation expense

 

400

 

 

498

 

Amortization of software development costs

 

2,742

 

 

1,486

 

Amortization of acquisition-related intangibles

 

3,126

 

 

4,014

 

Stock-based compensation

 

800

 

 

1,247

 

Severance and other nonrecurring charges

 

3,844

 

 

1,104

 

Interest expense

 

4,072

 

 

2,669

 

Gain on sale of AHT

 

(1,250

)

 

-

 

Other

 

(172

)

 

(268

)

Provision (benefit) for income taxes

 

(1,592

)

 

809

 

 
Total Adjusted EBITDA

$

9,454

 

$

14,643

 

Adjusted EBITDA Margin

 

11.4

%

 

17.0

%

 
TruBridge, Inc.
Reconciliation of Non-GAAP Financial Measures
(In '000s, except per share data)
(Unaudited)
 
Three Months Ended March 31,
Non-GAAP Net Income and Non-GAAP EPS:

 

2024

 

 

2023

 

Net income (loss), as reported

$

(2,516

)

$

3,084

 

 
Pre-tax adjustments for Non-GAAP EPS:
Amortization of acquisition-related intangible assets

 

3,127

 

 

4,014

 

Stock-based compensation

 

800

 

 

1,247

 

Severance and other nonrecurring charges

 

3,844

 

 

1,104

 

Non-cash interest expense

 

90

 

 

90

 

Gain on sale of AHT

 

(1,250

)

 

-

 

After-tax adjustments for Non-GAAP EPS:
Tax-effect of pre-tax adjustments, at 21%

 

(1,388

)

 

(1,357

)

Tax shortfall (windfall) from stock-based compensation

 

-

 

 

50

 

 
Non-GAAP net income

$

2,707

 

$

8,232

 

 
Weighted average shares outstanding, diluted

 

14,234

 

 

14,136

 

 
Non-GAAP EPS

$

0.19

 

$

0.58

 

 
TruBridge, Inc.
Electronic Health Record (EHR) Revenue Composition
(In '000s)
(Unaudited)
 
Three Months Ended March 31,

2024

2023

Recurring revenues - EHR
Acute Care EHR

$

25,910

$

27,613

Post-acute Care EHR

 

582

 

3,906

Total recurring revenues - EHR

 

26,492

 

31,519

 
Non-recurring revenues - EHR
Acute Care EHR

 

1,449

 

3,292

Post-acute Care EHR

 

81

 

380

Total non-recurring revenues - EHR

 

1,530

 

3,672

 
Total EHR revenues

$

28,022

$

35,191

 

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, Adjusted EBITDA Margin, Non-GAAP net income, and Non-GAAP earnings per share ("EPS").

We calculate each of these non-GAAP financial measures as follows:

Certain of the items excluded or adjusted to arrive at these non-GAAP financial measures are described below:

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.


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