Cerner Reports Fourth Quarter and Full Year 2013 Results
Strong Bookings and Revenue
KANSAS CITY, Mo. - February 4, 2014 - Cerner Corporation (Nasdaq: CERN) today announced results for the 2013 fourth quarter and full year that ended December 28, 2013, delivering strong levels of bookings and revenue performance.
Bookings in the fourth quarter of 2013 were $1.11 billion, an all-time high and an increase of 9 percent compared to fourth quarter 2012 bookings of $1.02 billion, which was the previous all-time high. Full-year 2013 bookings were a record $3.77 billion, up 20 percent compared to 2012 bookings of $3.14 billion.
Fourth quarter revenue was $795.3 million, an increase of 12 percent compared to $710.4 million in the year-ago period. Full year 2013 revenue was $2.91 billion, up 9 percent compared to 2012 revenue of $2.67 billion.
On a U.S. Generally Accepted Accounting Principles (GAAP) basis, fourth quarter 2013 net earnings were $60.1 million and diluted earnings per share were $0.17. Fourth quarter 2012 GAAP net earnings were $111.8 million and diluted earnings per share were $0.32. For the full year, 2013 GAAP net earnings were $398.4 million and diluted earnings per share were $1.13. Full year 2012 GAAP net earnings were $397.2 million and diluted earnings per share were $1.13.
The number of shares and the per share amounts for all periods presented within reflect the two-for-one stock split effective June 28, 2013.
Adjusted (non-GAAP) Net Earnings
Adjusted net earnings for fourth quarter 2013 were $136.7 million, an increase of 16 percent compared to $118.2 million of adjusted net earnings in the fourth quarter of 2012. Adjusted diluted earnings per share were $0.39 in the fourth quarter of 2013 compared to $0.34 of adjusted diluted earnings per share in the year-ago quarter. Analysts’ consensus estimate for fourth quarter 2013 adjusted diluted earnings per share was $0.39. For the full year 2013, adjusted net earnings were $496.8 million and adjusted diluted earnings per share were $1.41, compared to full year 2012 adjusted net earnings of $420.8 million and adjusted diluted earnings per share of $1.20.
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.”
Fourth quarter 2013 adjusted net earnings and diluted earnings per share exclude share-based compensation expense and a settlement charge. These items reduced fourth quarter 2013 net earnings and diluted earnings per share by $76.6 million and $0.22, respectively. Fourth quarter 2012 adjusted net earnings and diluted earnings per share exclude share-based compensation expense, which reduced net earnings and diluted earnings per share by $6.4 million and $0.02, respectively. Share based compensation expense and the settlement charge reduced full-year 2013 net earnings and diluted earnings per share by $98.4 million and $0.28, respectively. Share based compensation expense reduced full year 2012 net earnings and diluted earnings per share by $23.5 million and $0.07, respectively.
Other 2013 Fourth Quarter and Full-Year Highlights:
Fourth quarter cash collections of $781.8 million and operating cash flow of $141.5 million. For the full year, cash collections were $3.05 billion and operating cash flow was $695.9 million.
The following information was filed by Cerner Corp (CERN) on Tuesday, February 4, 2014 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.