Cerner Reports Fourth Quarter and Full Year 2018 Results and
Announces Plan to Initiate Quarterly Cash Dividend
Fourth Quarter Bookings 2nd Highest in Cerner History
KANSAS CITY, Mo. - February 5, 2019 - Cerner Corporation (Nasdaq: CERN) today announced results for the 2018 fourth quarter and full year that ended December 29, 2018. Cerner also announced plans to initiate a quarterly cash dividend of $0.15 per share.
Bookings in the fourth quarter of 2018 were $1.960 billion, representing the second highest quarterly bookings result in Cerner’s history. The highest bookings level was $2.329 billion in the fourth quarter of 2017. Full-year 2018 bookings were a record $6.721 billion, up 6 percent compared to 2017 bookings of $6.325 billion.
Fourth quarter 2018 revenue was $1.366 billion, an increase of 4 percent compared to $1.314 billion in the fourth quarter of 2017. Full-year 2018 revenue was $5.366 billion, up 4 percent compared to 2017 revenue of $5.142 billion.
On a U.S. Generally Accepted Accounting Principles (GAAP) basis, fourth quarter 2018 net earnings were $131.3 million and diluted earnings per share were $0.40. Fourth quarter 2018 GAAP net earnings include a $45.3 million pre-tax charge to provide an allowance against a non-current client receivable related to a dispute that has been ongoing since 2008. Fourth quarter 2017 GAAP net earnings were $336.7 million and diluted earnings per share were $1.00. For the full year, 2018 GAAP net earnings were $630.1 million and diluted earnings per share were $1.89. Full year 2017 GAAP net earnings were $867.0 million and diluted earnings per share were $2.57.
Adjusted Net Earnings for fourth quarter 2018 were $208.1 million, compared to $195.7 million of Adjusted Net Earnings in the fourth quarter of 2017. Adjusted Diluted Earnings Per Share were $0.63 in the fourth quarter of 2018 compared to $0.58 of Adjusted Diluted Earnings Per Share in the year-ago quarter. Analysts’ consensus estimate for fourth quarter 2018 Adjusted Diluted Earnings Per Share was $0.63. For the full year 2018, Adjusted Net Earnings were $818.5 million and Adjusted Diluted Earnings Per Share were $2.45, compared to full year 2017 Adjusted Net Earnings of $804.9 million and Adjusted Diluted Earnings Per Share of $2.38.
Adjusted Net Earnings and Adjusted Diluted Earnings Per Share are not recognized terms under GAAP. These non-GAAP financial measures should not be substituted for GAAP net earnings or GAAP diluted earnings per share, respectively, as measures of Cerner’s performance, but instead should be utilized as supplemental measures of financial performance in evaluating our business. Please see the accompanying schedule, titled “Reconciliation of GAAP Results to Non-GAAP Results,” where our non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures.
Fourth quarter operating cash flow of $406.9 million and full-year of $1.454 billion.
Fourth quarter Free Cash Flow of $201.3 million. For the full year, Free Cash Flow was $733.4 million. 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. Please see the accompanying schedule, titled “Reconciliation of GAAP Results to Non-GAAP Results.”
Fourth quarter days sales outstanding of 79 days, down from 82 days in the third quarter and up from 72 days in the year-ago quarter.
Total backlog of $15.25 billion.
The following information was filed by Cerner Corp (CERN) on Tuesday, February 5, 2019 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.
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Ticker: CERN CIK: 804753 Form Type:10-K Annual Report Accession Number: 0000804753-19-000009 Submitted to the SEC: Fri Feb 08 2019 4:51:02 PM EST Accepted by the SEC: Fri Feb 08 2019 Period: Saturday, December 29, 2018 Industry: Computer Integrated Systems Design