Cerner Reports Fourth Quarter and Full Year 2019 Results
All Key Metrics Within or Above Company Guidance Ranges
KANSAS CITY, Mo. - February 4, 2020 - Cerner Corporation (Nasdaq: CERN) today announced results for the 2019 fourth quarter and full year that ended December 28, 2019.
Fourth quarter 2019 revenue was $1.442 billion, an increase of 6 percent compared to $1.366 billion in the fourth quarter of 2018, and in line with the Company's expectations. Full-year 2019 revenue was $5.693 billion, up 6 percent compared to 2018 revenue of $5.366 billion.
Bookings in the fourth quarter of 2019 were above the Company's expectations at $1.665 billion. Full-year 2019 bookings were $5.990 billion compared to 2018 bookings of $6.721 billion. The decline in bookings was primarily driven by the Company being more selective in the types of contracts it pursues, which led to fewer large, long-term outsourcing contracts.
On a U.S. Generally Accepted Accounting Principles (GAAP) basis, fourth quarter 2019 net earnings were $154.3 million and diluted earnings per share were $0.49. Fourth quarter 2018 GAAP net earnings were $131.3 million and diluted earnings per share were $0.40. For the full year, 2019 GAAP net earnings were $529.5 million and diluted earnings per share were $1.65. Full year 2018 GAAP net earnings were $630.1 million and diluted earnings per share were $1.89.
Adjusted Net Earnings for fourth quarter 2019 were $237.2 million, compared to $208.1 million of Adjusted Net Earnings in the fourth quarter of 2018. Adjusted Diluted Earnings Per Share were $0.75 in the fourth quarter of 2019, in line with the Company's expectations and up 19 percent compared to $0.63 of Adjusted Diluted Earnings Per Share in the year-ago quarter. For the full year 2019, Adjusted Net Earnings were $862.1 million and Adjusted Diluted Earnings Per Share were $2.68, compared to full year 2018 Adjusted Net Earnings of $818.5 million and Adjusted Diluted Earnings Per Share of $2.45.
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 $437.6 million and Free Cash Flow of $292.1 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 72 days, down from 74 days in the third quarter and 79 days in the year-ago quarter.
Total backlog of $13.71 billion.
"I am pleased with our strong finish to the year, with all of our key operating metrics at or above our expectations in the fourth quarter," said Brent Shafer, Chairman and CEO. "2019 was an important and productive year for Cerner. We made meaningful progress on driving value for our clients, delivering operating efficiencies, simplifying our