Cerner Reports Fourth Quarter 2012 Results
Strong Bookings, Revenue, Earnings and Cash Flow
KANSAS CITY, Mo. - February 5, 2013 - Cerner Corporation (Nasdaq: CERN) today announced results for the 2012 fourth quarter and full year that ended December 29, 2012, delivering strong levels of bookings, revenue, earnings and cash flow.
Bookings in the fourth quarter of 2012 were $1.02 billion, an all-time high and an increase of 13 percent compared to fourth quarter 2011 bookings of $899.0 million. Full year 2012 bookings were a record $3.14 billion, up 15 percent compared to 2011 bookings of $2.72 billion.
Fourth quarter revenue was a record $710.4 million, an increase of 15 percent compared to $615.6 million in the year-ago period. Full year 2012 revenue was $2.67 billion, up 21 percent compared to 2011 revenue of $2.20 billion.
On a U.S. Generally Accepted Accounting Principles (GAAP) basis, fourth quarter 2012 net earnings were $111.8 million and diluted earnings per share were $0.63. Fourth quarter 2011 GAAP net earnings were $91.2 million and diluted earnings per share were $0.52. For the full year, 2012 GAAP net earnings were $397.2 million and diluted earnings per share were $2.26. Full year 2011 GAAP net earnings were $306.6 million and diluted earnings per share were $1.76.
Adjusted (non-GAAP) Net Earnings
Adjusted net earnings for fourth quarter 2012 were $118.2 million, an increase of 23 percent compared to $96.2 million of adjusted net earnings in the fourth quarter of 2011. Adjusted diluted earnings per share were $0.67 in the fourth quarter of 2012 compared to $0.55 of adjusted diluted earnings per share in the year-ago quarter. Analysts' consensus estimate for fourth quarter 2012 adjusted diluted earnings per share was $0.64. For the full year 2012, adjusted net earnings were $420.8 million and adjusted diluted earnings per share were $2.39, compared to full year 2011 adjusted net earnings of $324.9 million and adjusted diluted earnings per share of $1.87.
Adjusted net earnings is not a recognized term under GAAP and should not be substituted for net earnings as a measure of Cerner's performance but instead should be utilized as a supplemental measure of financial performance in evaluating our business. Following is a description of adjustments made to net earnings. For more detail, please see the accompanying schedule, titled “Reconciliation of GAAP Results to Non-GAAP Results.”
Adjusted net earnings and diluted earnings per share exclude share-based compensation expense, which reduced fourth quarter 2012 net earnings and diluted earnings per share by $6.4 million and $0.04, respectively; and reduced fourth quarter 2011 net earnings and diluted earnings per share by $5.0 million and $0.03, respectively. Share based compensation expense reduced full year 2012 net earnings and diluted earnings per share by $23.5 million and $0.13, respectively, and reduced full year 2011 net earnings and diluted earnings per share by $18.2 million and $0.11, respectively.
Other 2012 Fourth Quarter and Full Year Highlights:
Fourth quarter cash collections of $689.8 million and operating cash flow of $180.6 million. For the full year, cash collections were $2.71 billion and operating cash flow was $708.3 million.
Fourth quarter free cash flow of $99.4 million. For the full year, free cash flow was a record $424.7 million, up 18 percent from $358.6 million in 2011. Free cash flow is a non-GAAP financial measure defined as GAAP cash flows from operating activities less capital purchases and capitalized software development costs. For more detail, please see the accompanying schedule, titled “Reconciliation of GAAP Results to Non-GAAP Results.”
Fourth quarter days sales outstanding of 74 days, which is down from 83 days in the year-ago quarter.
Total backlog of $7.27 billion, up 19 percent over the year-ago quarter. This was comprised of $6.53 billion of contract backlog and $738.2 million of support and maintenance backlog.
The following information was filed by Cerner Corp (CERN) on Tuesday, February 5, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.