CPSI 2017 Annual Report

62 COMPUTER PROGRAMS AND SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year ended December 31, 2017 2016 2015 Operating Activities Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (17,416) $ 3,933 $ 18,343 Adjustments to net income (loss): Provision for bad debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,421 2,259 910 Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,421 3,672 (2,698) Stock based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,166 5,366 5,380 (Excess) deficit tax benefit from shared-based compensation — (210) 176 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,473 3,062 3,174 Amortization of acquisition-related intangibles 10,406 10,182 — Amortization of deferred finance costs 645 673 — Goodwill impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000 — — Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,340 — — Changes in operating assets and liabilities (net of acquired assets and liabilities): Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,847) (3,927) (166) Financing receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,308) 1,514 6,500 Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 14 (102) Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) 1,787 (419) Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 779 (5,588) 600 Deferred revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,867 (13,662) (2,070) Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,069 (7,250) 730 Prepaid income taxes/income taxes payable . . . . . . . . . . . . . . . . . . . . . . 1,377 280 518 Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,643 2,105 30,876 Investing Activities Purchases of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (726) (39) (448) Purchase of business, net of cash received. . . . . . . . . . . . . . . . . . . . . . . . . . . — (162,611) — Purchases of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (150) Sale of investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 10,861 — Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (726) (151,789) (598) Financing Activities Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,636) (25,092) (28,943) Proceeds from long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777 156,397 — Payments of long-term debt principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,838) (5,196) — Payments on capital lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (296) — — Payments of contingent consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (625) (500) — Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1,134 — Excess (deficit) tax benefit from stock-based compensation . . . . . . . . . . . . . — 210 (176) Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . (24,617) 126,953 (29,119) Increase (decrease) in cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . (1,700) (22,731) 1,159 Cash and cash equivalents at beginning of year. . . . . . . . . . . . . . . . . . . . . . . 2,220 24,951 23,792 Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 520 $ 2,220 $ 24,951 Continued on following page.