Earning Date, Transcript Summary & Report

Bookings Performance Improvement: 1. Consistent Bookings Growth: TruBridge achieved over $20 million in total bookings for the fourth consecutive quarter, with a year-to-date total of $68 million, reflecting a 22% increase compared to the previous year.

Revenue Growth Analysis: 2. Strong Revenue Growth in Financial Health: Financial Health revenue, including Viewgol, reached $54.3 million, representing 65% of total revenue and a 17% increase year-over-year, while organic revenue grew 5.3% excluding Viewgol.

Adjusted EBITDA Margin Growth: 3. Improved Adjusted EBITDA Margins: Adjusted EBITDA for Q3 was $13.8 million, a 42% increase compared to last year, with margins expanding to 16.5%, up from 11.4% in Q1.

Cash Flow Enhancement: 4. Significant Cash Flow Improvement: Year-to-date cash flow from operations totaled $21.8 million, an increase of $8.5 million compared to the same period last year, demonstrating effective cash management.

Operating Expense Reduction: 5. Reduction in Operating Expenses: Total operating expenses decreased to 47.1% of revenue, down from 53.3% a year ago, due to successful cost rationalization efforts, resulting in $5 million in expense reductions this year.

Patient Care Revenue Decline: 1. Declining Patient Care Revenue: Patient Care revenue decreased by 18% year-over-year, primarily due to the impact from the divestiture of AHT and the sunsetting of Centriq, resulting in a net impact of approximately $6 million in the quarter.

Stagnant Revenue Expansion: 2. Stagnant Overall Revenue Growth: Total revenue for the quarter was $83.8 million, reflecting just over 1% growth compared to the previous year, indicating a slowdown in overall revenue expansion despite some positive contributions from Viewgol.

Internal Control Weaknesses: 3. Material Weaknesses in Internal Controls: The company reported two material weaknesses in its internal controls, which could pose risks to financial reporting and operational effectiveness, although no material impact on financial statements has been noted.

High Net Debt Concerns: 4. High Net Debt Levels: Total net debt at the end of the quarter stood at $168 million, which raises concerns about the company's leverage and financial flexibility, despite efforts to pay down debt.

Rising General and Administrative Costs: 5. Increased G&A Expenses Expected: Guidance for the fourth quarter indicates a slight uptick in general and administrative expenses due to costs associated with remediating internal control weaknesses, which could pressure margins in the near term.