Revenue during the quarter surged 44.93 percent to $64.66 million from $44.62 million in the previous year period. Gross margin for the quarter expanded 2 basis points over the previous year period to 50.96 percent. Total expenses were 93.44 percent of quarterly revenues, up from 90.45 percent for the same period last year. That has resulted in a contraction of 299 basis points in operating margin to 6.56 percent.

Operating income for the quarter was $4.24 million, compared with $4.26 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $11.80 million compared with $6.32 million in the prior year period. At the same time, adjusted EBITDA margin improved 408 basis points in the quarter to 18.24 percent from 14.16 percent in the last year period.

“While there are changing market dynamics creating a degree of uncertainty throughout our industry, we believe there is no better time to be investing in and focusing on our vision and the integral role we will play in the delivery of healthcare to rural communities in the coming years,” said Boyd Douglas, president and chief executive officer of CPSI. “In collaboration with those organizations and providers who are caring for those rural communities every day, we share a common goal of keeping these organizations strong and their communities healthy. We continue to be extremely pleased with the positive impact the Healthland acquisition is having on our current business, our future position in the market and within our customer base. Our Healthland customer retention rates continue to hold strong following the acquisition, supporting an expected increase in our services revenue and paving the way for increased demand of future add-on sales associated with MU3, as well as new solutions and services that will support population health.”

The company has spent $151.79 million cash to meet investing activities during the nine month period as against cash outgo of $0.56 million in the last year period.

Cash flow from financing activities was $133.07 million for the nine month period as against cash outgo of $21.92 million in the last year period.

Cash and cash equivalents stood at $3.66 million as on Sep. 30, 2016, down 86.77 percent or $23.98 million from $27.63 million on Sep. 30, 2015.

Working capital drops significantly
Computer Programs & Systems Inc has witnessed a decline in the working capital over the last year. It stood at $13.94 million as at Sep. 30, 2016, down 76.92 percent or $46.48 million from $60.42 million on Sep. 30, 2015. Current ratio was at 1.41 as on Sep. 30, 2016, down from 4.02 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 58 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 72 days for the same period last year.

Days inventory outstanding has decreased to 2 days for the quarter compared with 6 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 20 for the same period last year.