CPSI 2017 Annual Report

59 COMPUTER PROGRAMS AND SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Year ended December 31, 2017 2016 2015 Sales revenues: System sales and support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 188,261 $ 185,665 $ 118,385 TruBridge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,666 81,607 63,789 Total sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,927 267,272 182,174 Costs of sales (exclusive of amortization shown separately below): System sales and support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,994 84,356 52,500 TruBridge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,636 45,656 35,216 Total costs of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,630 130,012 87,716 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151,297 137,260 94,458 Operating expenses: Product development 37,761 32,621 14,229 Sales and marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,021 27,194 18,333 General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,923 52,888 36,810 Amortization of acquisition-related intangibles . . . . . . . . . . . . . . . . . . . 10,406 10,182 — Goodwill impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000 — — Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,111 122,885 69,372 Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,814) 14,375 25,086 Other income (expense): Other income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407 220 405 Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,340) — — Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,736) (6,609) — Total other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,669) (6,389) 405 Income (loss) before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,483) 7,986 25,491 Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,933 4,053 7,148 Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (17,416) $ 3,933 $ 18,343 Net income (loss) per share - basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.27) $ 0.29 $ 1.62 Net income (loss) per share - diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.27) $ 0.29 $ 1.62 Weighted average shares outstanding used in per common share computations: Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,419 13,255 11,083 Diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,419 13,255 11,083 The accompanying notes are an integral part of these consolidated financial statements.