Trade Deficit Comes in Lower Than Expected
Trans-Continental Railway Deal Struck
In what would never have passed regulatory muster under the previous presidential administration, this morning we hear of a deal where Union Pacific UNP will be purchasing Norfolk Southern NSC for a reported price of $72 billion, or $320 per share. This would create the first-ever trans-continental railroad in the U.S.
Of course, this deal would first need to pass via the Surface Transportation Board, but President Trump is likely to see this deal as favorable for the U.S. (despite monopolistic considerations), and has the power to appoint a new member to the board who would view this merger as favorable, as well. Both UNP and NSC are lower on this announcement.
Trade Balance Eases on Tariff Outlook
The Advanced U.S. Trade Balance in Goods for June to a healthy pullback month over month to -$86 billion. This pullback is greater than expected, although it was led by a decline in imports (-4.2%),which analysts were looking toward. We're seeing a slow-down in trade based on higher tariff expectations; as deals are made with U.S. trading partners and tariff deadlines fade, we're thankfully well off the record-low trade balance of -$162 billion in March of 2025.
Q2 Earnings Roundup: Boeing, P&G, Spotify & More
So many companies reporting earnings, so little time! We'll pull together a quick roundup on this busiest day of Q2 earnings season so far:
Boeing BA continues to make improvements to its previously dire business situation: negative earnings in Q2 of -$1.24 per share improved over the Zacks consensus by 30 cents, or a +19.5% bottom-line surprise. On the top line, revenues of $22.75 billion outpaced estimates by +4.1%, as deliveries improved in the quarter. Shares are up another +1.4% in early trading, adding to its +33.6% gains year to date.
UnitedHealth 's UNH struggles continue, on the other hand, missing on its bottom line — $4.08 per share versus $4.84 expected — by -15.7%. Revenues of $111.6 billion eked out a beat over estimates by +0.06%. Guidance has been revised somewhat lower, and the -44.2% share price year to date is now another -3.3% in the pre-market.
It wasn't all bad news: Royal Caribbean RCL demonstrated strength in cruise-line business, and the company's earnings of $4.38 per share in the quarter surged past the Zacks consensus by +6.8%, even as revenues of $4.54 billion marginally missed projections. The stock's -6.7% sell-off ahead of the bell looks to be a bit of profit-taking, as RCL had been up +52.6% year to date.
But Spotify SPOT took a big slide on both top and bottom lines this morning, even as paying subscriptions and monthly active users grew. A negative -$0.48 per share swung to a loss from the +$2.13 Zacks consensus estimate, for a negative earnings surprise of -122.5%. Revenues of $4.76 billion came in lower than expected by -3.47%. Shares had been +56.7% year to date, but are -7.3% in pre-market at this hour.
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The Boeing Company (BA): Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Norfolk Southern Corporation (NSC): Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
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Globe and Mail
30 minutes ago
- Globe and Mail
Why Investors Trashed Krispy Kreme Stock Today
Key Points Investors found the company's latest earnings report to be quite the stale donut. It missed significantly on the bottom line, although it exceeded the average analyst estimate for revenue. 10 stocks we like better than Krispy Kreme › Few market players were finding the taste of Krispy Kreme (NASDAQ: DNUT) stock appealing on Thursday. They traded out of the donut purveyor assertively, to the point where its shares lost 7% of their value that day. This was notably worse than the S&P 500 index's performance, as the benchmark index closed down only marginally. A hole in the donut That morning, Krispy Kreme published a second-quarter earnings release that also heralded the launch of a turnaround plan. As for the quarter's figures, the company's revenue was just under $380 million, which was down considerably from the almost $439 million in the same period of 2024. Krispy Kreme wasn't profitable on a non-GAAP (adjusted) basis, with net loss flipping to a loss of $25 million, or $0.15 per share, from a profit of just over $9 million in the year-ago quarter. Analysts were modeling a far narrower net loss of only $0.04, although the company beat their collective expectation of a revenue figure of less than $379 million. Krispy Kreme said its performance was particularly affected by its now-dissolved partnership with fast food titan McDonald's. It quoted CEO Josh Charlesworth as saying this arrangement produced "unsustainable operating costs" for the donut maker. Turnaround time Krispy Kreme hopes to right the ship with that turnaround plan, which it sketched out within the earnings release. The company said this effort would focus on four aspects of its business: refranchising, particularly in foreign markets, reducing capex through better utilization of existing assets, widening its profit margins, which should be achieved through efficiency measures such as the outsourcing of U.S. logistics, and aiming for sustainable and profitable growth. Should you invest $1,000 in Krispy Kreme right now? Before you buy stock in Krispy Kreme, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Krispy Kreme wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Globe and Mail
an hour ago
- Globe and Mail
TruBridge Announces Second Quarter 2025 Results
TruBridge, Inc. (NASDAQ: TBRG), a healthcare solutions company, today announced financial results for the second quarter and six months ended June 30, 2025. Second Quarter 2025 Highlights* All comparisons are to the quarter ended June 30, 2024, unless otherwise noted Total bookings of $25.6 million compared to $23.3 million Total revenue of $85.7 million compared to $85.6 million Recurring revenue represented 95% of total revenue Financial Health revenue of $54.3 million compared to $54.5 million Financial Health revenue represented 63% of TruBridge's total revenue GAAP net income of $2.6 million compared to a net loss of $4.4 million Non-GAAP net income of $7.9 million compared to $3.0 million Adjusted EBITDA of $13.7 million compared to $13.4 million *As of the third quarter of 2024, TruBridge is now reporting two segments in its financial statements representing the two business units. Financial Health represents the previous Revenue Cycle Management (RCM) segment, and Patient Care represents the previous Electronic Health Record (EHR) segment, including the patient engagement business. Commenting on the results, Chris Fowler, chief executive officer of TruBridge, Inc., stated, 'During the second quarter, we continued to make improvements on many fronts, advancing steadily towards achievement of our long-term objectives. Strong bookings, as well as improved profitability and cash flow, give us confidence in the value we provide to our clients, our position in the market, and the benefits of the work we did to improve the financial health of our business. 'Our north star is client delight, and we are implementing a strategic plan designed to bring our client satisfaction levels back to historical levels and beyond. While we have brought down the top end of our revenue outlook for the full year as a result of client attrition and the reality of signing larger, more complex deals, we are also raising our Adjusted EBITDA range to incorporate the efficiencies realized by our offshoring initiative, our refinement of resource management, and cost optimization. We remain confident that the steps we are taking today to refine and optimize our approach will set us up for success in the quarters and years ahead as we work to deliver exceptional experiences to the communities we serve,' added Fowler. Financial Guidance For the third quarter of 2025, TruBridge expects to generate: Total revenue of $85 million to $87 million Adjusted EBITDA of $14 million to $16 million For the full year 2025, TruBridge expects to generate: Total revenue of $345 million to $350 million; revised from $345 million to $360 million Adjusted EBITDA of $62 million to $67 million; revised from $60 million to $66 million Conference Call TruBridge will hold a conference call and live webcast to discuss second quarter 2025 results on Friday, August 8, 2025, at 7:30 a.m. Central time/8:30 a.m. Eastern time. To access this interactive teleconference, dial (877) 407-0890 and request connection to the TruBridge earnings conference call. A 30-day online replay will be available approximately one hour following the conclusion of the live webcast. To listen to the live webcast or access the replay, visit the Company's investor relations website, About TruBridge TruBridge proudly supports rural and community hospitals and providers in their efforts to stay strong, independent, and deeply rooted in the communities they serve. Backed by more than 45 years of healthcare experience and trusted by over 1,500 clients nationwide, we offer a mix of technology, services, and strategic expertise — including revenue cycle management, electronic health records (EHR) and analytics — all designed singularly for the realities of rural and community healthcare. With a steadfast commitment to keeping care local, TruBridge helps hospitals flourish as the economic heart of their communities, delivering high-quality, personal care close to home. For more information, visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as 'expects,' 'anticipates,' 'estimates,' 'believes,' 'predicts,' 'intends,' 'plans,' 'potential,' 'may,' 'continue,' 'should,' 'will' and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to the Company's future financial and operational results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: saturation of our target market and hospital consolidations; unfavorable economic or market conditions that may cause a decline in spending for information technology and services; significant legislative and regulatory uncertainty in the healthcare industry; exposure to liability for failure to comply with regulatory requirements; transition to a subscription based recurring revenue model and modernization of our technology; competition with companies that have greater financial, technical and marketing resources than we have; potential future acquisitions that may be expensive, time consuming, and subject to other inherent risks; our ability to attract and retain qualified personnel in a global workforce; disruption from periodic restructuring of our sales force; slower than anticipated development of the market for Financial Health services; potential inability to properly manage growth in new markets we may enter; potential failure to effectively implement a new enterprise resource planning software solution; exposure to numerous and often conflicting laws, regulations, policies, standards or other requirements through our domestic and international business activities; potential litigation against us and investigations; our use of offshore third-party resources; competitive and litigation risk related to the use of artificial intelligence; potential failure to develop new products or enhance current products that keep pace with market demands; failure of our products to provide accurate and timely information for clinical decision-making; breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; failure to maintain customer satisfaction through new product releases free of undetected errors or problems; failure to convince customers to migrate to current or future releases of our products; failure to maintain our margins and service rates; increase in the percentage of total revenues represented by service revenues, which have lower gross margins; exposure to liability in the event we provide inaccurate claims data to payors; exposure to liability claims arising out of the licensing of our software and provision of services; dependence on licenses of rights, products and services from third parties; failure to protect our intellectual property rights; exposure to significant license fees or damages for intellectual property infringement; interruptions in our power supply and/or telecommunications capabilities; potential inability to secure additional financing on favorable terms to meet our future capital needs; our substantial indebtedness, and our ability to incur additional indebtedness in the future; pressures on cash flow to service our outstanding debt; restrictive terms of our credit agreement on our current and future operations; changes in and interpretations of financial accounting matters that govern the measurement of our performance; significant charges to earnings if our goodwill or intangible assets become impaired; fluctuations in quarterly financial performance due to various factors; volatility in our stock price; failure to maintain effective internal control over financial reporting; inherent limitations in our internal control over financial reporting; vulnerability to significant damage from natural disasters; market risks related to interest rate changes; potential material adverse effects due to macroeconomic conditions; we do not anticipate paying dividends on our common stock; actions of activist stockholders against us; and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release. TruBridge, Inc. (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 * 2025 2024 * Revenues Financial Health $ 54,284 $ 54,509 $ 110,417 $ 107,948 Patient Care 31,445 31,091 62,520 61,769 Total revenues 85,729 85,600 172,937 169,717 Expenses Costs of revenue (exclusive of amortization and depreciation) Financial Health 29,308 30,269 56,499 59,866 Patient Care 11,962 13,073 24,284 25,237 Total costs of revenue (exclusive of amortization and depreciation) 41,270 43,342 80,783 85,103 Product development 8,113 8,207 16,360 18,894 Sales and marketing 8,041 7,815 13,450 14,408 General and administrative 18,076 18,878 37,540 38,274 Amortization 6,290 9,107 12,414 14,975 Depreciation 312 400 603 800 Total expenses 82,102 87,749 161,150 172,454 Operating income (loss) 3,627 (2,149 ) 11,787 (2,737 ) Other income (expense): Interest expense (3,065 ) (4,242 ) (6,447 ) (8,315 ) Other income 136 91 280 1,514 Total other expense (2,929 ) (4,151 ) (6,167 ) (6,801 ) Income (loss) before taxes 698 (6,300 ) 5,620 (9,538 ) Provision for (benefit from) income taxes (1,882 ) (1,912 ) 2,581 (3,296 ) Net income (loss) $ 2,580 $ (4,388 ) $ 3,039 $ (6,242 ) Net income (loss) per common share—basic $ 0.17 $ (0.29 ) $ 0.20 $ 0.42 Net income (loss) per common share—diluted $ 0.17 $ (0.29 ) $ 0.20 $ 0.42 Weighted average shares outstanding used in per common share computations: Basic 14,522 14,313 14,446 14,273 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. TruBridge, Inc. Condensed Consolidated Balance Sheets (In '000s, except per share data) June 30, 2025 (Unaudited) December 31, 2024 Assets Current assets Cash and cash equivalents $ 12,279 $ 12,324 Accounts receivable, net of allowance for expected credit losses of $5,208 and $5,861 56,432 53,753 Current portion of financing receivables, net of allowance for expected credit losses of $560 and $417 2,727 4,663 Inventories 444 767 Prepaid income taxes 3,459 2,886 Prepaid expenses and other current assets 14,473 15,275 Assets held for sale 445 606 Total current assets 90,259 90,274 Property & equipment, net 2,559 2,294 Software development costs, net 43,317 41,474 Operating lease right-of-use assets 2,617 3,092 Financing receivables, less current portion, less allowance for expected credit losses of $258 and $21 22 232 Other assets, less current portion 8,196 7,786 Intangible assets, net 70,608 76,707 Goodwill 172,573 172,573 Total assets $ 390,151 $ 394,432 Liabilities & Stockholders' Equity Current liabilities Accounts payable $ 19,672 $ 15,040 Current portion of long-term debt 2,980 2,980 Deferred revenue 9,368 10,653 Accrued vacation 5,235 4,770 Income taxes payable 623 3,538 Other accrued liabilities 12,302 15,994 Total current liabilities 50,180 52,975 Long-term debt, less current portion 163,108 168,598 Operating lease liabilities, less current portion 1,827 2,293 Deferred tax liabilities 1,863 1,871 Total liabilities 216,978 225,737 Stockholders' Equity Common stock, $0.001 par value; 30,000 shares authorized; 15,700 and 15,522 shares issued 15 15 Additional paid-in capital 204,376 201,066 Retained deficit (11,913 ) (14,952 ) Accumulated other comprehensive income 27 45 Treasury stock, 685 and 619 shares (19,332 ) (17,479 ) Total stockholders' equity 173,173 168,695 Total liabilities and stockholders' equity $ 390,151 $ 394,432 TruBridge, Inc. Condensed Consolidated Statements of Cash Flows (In '000s) (Unaudited) Six Months Ended June 30, 2025 2024 * Operating activities: Net income (loss) $ 3,039 $ (6,242 ) Adjustments to net income (loss): Provision for credit losses 1,609 358 Deferred taxes (7 ) (5,224 ) Stock-based compensation 3,310 2,300 Depreciation 603 800 Gain on sale of business (53 ) (1,250 ) Amortization of acquisition-related intangibles 6,098 6,253 Amortization of software development costs 6,316 8,722 Amortization of deferred finance costs 259 213 Non-cash operating lease costs 537 897 Gain on disposal of property and equipment (120 ) - Changes in operating assets and liabilities: Accounts receivable (3,967 ) (1,085 ) Financing receivables 1,825 506 Inventories 323 (318 ) Prepaid expenses and other assets (1,827 ) 1,502 Accounts payable 5,082 5,750 Deferred revenue (1,284 ) 1,769 Operating lease liabilities (548 ) (583 ) Other liabilities (3,191 ) (2,375 ) Income taxes, net (3,487 ) (263 ) Net cash provided by operating activities 14,517 11,730 Investing activities: Purchase of business, net of cash acquired - (664 ) Sale of business, net of cash and cash equivalent sold 2,102 21,410 Investment in software development (8,159 ) (9,324 ) Purchases of property and equipment (902 ) (306 ) Net cash (used in) provided by investing activities (6,959 ) 11,116 Financing activities: Payments of long-term debt principal (1,750 ) (5,750 ) Proceeds from revolving line of credit 15,368 21,072 Payments of revolving line of credit (19,368 ) (33,379 ) Debt issuance cost - (529 ) Treasury stock purchases (1,853 ) (358 ) Net cash used in financing activities (7,603 ) (18,944 ) (Decrease) Increase in cash and cash equivalents (45 ) 3,902 Change in cash and cash equivalents included in assets sold - (41 ) Cash and cash equivalents, beginning of period 12,324 3,848 Cash and cash equivalents, end of period $ 12,279 $ 7,709 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the six months ended June 30, 2024 by $1.7 million. These revisions had no cash flow consequences. TruBridge, Inc. Consolidated Bookings (In '000s) (Unaudited) (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2024 2025 2024 Financial Health (1) $ 13,705 $ 13,458 $ 26,485 $ 27,849 Patient Care (2) 11,908 9,832 21,109 19,010 Total Bookings $ 25,613 $ 23,290 $ 47,594 $ 46,859 (1) Generally calculated as the annual contract value (2) Generally calculated as the total contract value for system sales and SaaS, and annual contract value for maintenance and support Annual Contract Value Effective January 2025, the Company will be providing bookings on an Annual Contract Value ('ACV') basis in addition to the reported bookings amounts, which has historically represented a mix of ACV and Total Contract Value ('TCV') for Patient Care. This new methodology of reporting total bookings at ACV represents the newly contracted revenue that is expected to be recognized over a twelve-month period. Over the course of 2025, the Company will be providing total bookings under both methodologies for year over year comparability before fully transitioning to ACV in 2026. The below table represents bookings at the ACV methodology for the three and six months ended June 30, 2025: Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2025 Financial Health $ 13,705 $ 26,485 Patient Care 5,921 10,480 Total Bookings (ACV) $ 19,626 $ 36,965 TruBridge, Inc. Bookings Composition (In '000s, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2024 2025 2024 Financial Health Net new (1) $ 5,067 $ 6,453 $ 11,529 $ 15,446 Cross-sell (1) 8,638 7,004 14,956 12,402 Patient Care Non-subscription sales (2) 2,730 4,084 5,332 7,534 Subscription revenue (3) 9,178 5,749 15,777 11,477 Total Bookings $ 25,613 $ 23,290 $ 47,594 $ 46,859 (1) 'Net new' represents bookings from outside the Company's core client base, and 'Cross-sell' represents bookings from existing customers. In each case, such bookings are generally comprised of recurring revenues to be recognized ratably over a one-year period and an average timeframe for bookings-to-revenue conversion of four to six months following contract execution. (2) Represents nonrecurring revenues that generally exhibit a timeframe for bookings-to-revenue conversion of five to six months following contract execution. (3) Represents recurring revenues to be recognized on a monthly basis over a weighted-average contract period of five years, with a start date in the next 12 months and an average timeframe for commencement of bookings-to-revenue conversion of five to six months following contract execution. Annual Contract Value Effective January 2025, the Company will be providing bookings on an Annual Contract Value ('ACV') basis in addition to the reported bookings amounts, which has historically represented a mix of ACV and Total Contract Value ('TCV') for Patient Care. This new methodology of reporting total bookings at ACV represents the newly contracted revenue that is expected to be recognized over a twelve-month period. Over the course of 2025, the Company will be providing total bookings under both methodologies for year over year comparability before fully transitioning to ACV in 2026. The below table represents bookings at the ACV methodology for the three and six months ended June 30, 2025: Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2025 Financial Health Net new (1) $ 5,067 $ 11,529 Cross-sell (1) 8,638 14,956 Patient Care Non-subscription sales (2) 2,730 5,332 Subscription revenue (3) 3,191 5,148 Total Bookings (ACV) $ 19,626 $ 36,965 TruBridge, Inc. Adjusted EBITDA - by Segment (In '000s) (Unaudited) (Non-GAAP) Three Months Ended June 30, Six Months Ended June 30, In '000s 2025 2024 * 2025 2024 * Financial Health $ 7,092 $ 8,209 $ 18,373 $ 15,006 Patient Care 6,651 $ 5,235 13,601 8,762 Total Adjusted EBITDA $ 13,743 $ 13,444 $ 31,974 $ 23,768 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. TruBridge, Inc. Reconciliation of Non-GAAP Financial Measures (In '000s) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Adjusted EBITDA: 2025 2024 * 2025 2024 * Total Adjusted EBITDA $ 13,743 $ 13,444 $ 31,974 $ 23,768 Adjusted EBITDA Margin 16.0 % 15.7 % 18.5 % 14.0 % Depreciation expense 312 400 603 800 Amortization of software development costs 3,245 5,980 6,316 8,722 Amortization of acquisition-related intangibles 3,046 3,126 6,098 6,253 Stock-based compensation 2,097 1,501 3,310 2,300 Severance and other nonrecurring charges 1,416 4,586 3,860 8,430 Interest expense and other income 2,929 4,151 6,340 8,051 Gain on disposal of property and equipment - - (120 ) - Gain on sale of AHT - - (53 ) (1,250 ) Income (loss) before taxes, as reported 698 (6,300 ) 5,620 (9,538 ) Provision for (benefit from) income taxes (1,882 ) (1,912 ) 2,581 (3,296 ) Net income (loss), as reported $ 2,580 $ (4,388 ) $ 3,039 $ (6,242 ) Net income (loss) margin 3.0 % (5.1 %) 1.8 % (3.7 %) *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. TruBridge, Inc. (In '000s, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Non-GAAP Net Income and Non-GAAP EPS: 2025 2024 * 2025 2024 * Net income (loss), as reported $ 2,580 $ (4,388 ) $ 3,039 $ (6,242 ) Pre-tax adjustments for Non-GAAP EPS: Amortization of acquisition-related intangible assets 3,046 3,126 6,098 6,253 Stock-based compensation 2,097 1,501 3,310 2,300 Severance and other nonrecurring charges 1,416 4,586 3,860 8,430 Non-cash interest expense 130 107 260 213 Gain on sale of AHT - - (53 ) (1,250 ) After-tax adjustments for Non-GAAP EPS: Tax-effect of pre-tax adjustments, at 21% (1,405 ) (1,957 ) (2,830 ) (3,349 ) Tax shortfall (windfall) from stock-based compensation - 4 (670 ) 113 Non-GAAP net income $ 7,864 $ 2,979 $ 13,014 $ 6,468 Weighted average shares outstanding, diluted 14,522 14,313 14,446 14,273 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. TruBridge, Inc. Revenue Composition (In '000s) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 * 2025 2024 * Recurring revenues Financial Health $ 53,322 $ 52,798 $ 108,586 $ 104,914 Patient Care 28,115 27,135 55,562 55,678 Total recurring revenues 81,437 79,933 164,148 160,592 Non-recurring revenues Financial Health 962 1,711 1,831 3,034 Patient Care 3,330 3,956 6,958 6,091 Total non-recurring revenues 4,292 5,667 8,789 9,125 Total revenues $ 85,729 $ 85,600 $ 172,937 $ 169,717 *As described in the 2024 Annual Report, certain line items have been revised to correct an error related to the reversal of revenue from customers that was recognized improperly during 2023. These revisions increased revenue for the three and six months ended June 30, 2024 by $0.9 million and $1.7 million, respectively. These revisions had no cash flow consequences. Explanation of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States of America, or 'GAAP.' However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures that are prepared in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management uses these non-GAAP financial measures in order to evaluate the operating performance of the Company and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. In addition, management understands that some investors and financial analysts find these non-GAAP financial measures helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. We do not provide a reconciliation of the non-GAAP guidance measure Adjusted EBITDA for the second quarter of 2025 or the fiscal year 2025 to net income for such periods, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not Adjusted EBITDA. As such, to supplement the GAAP information provided, we present in this press release and during the live webcast discussing our financial results the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA Margin, Non-GAAP net income, and Non-GAAP earnings per share ('EPS'). We calculate each of these non-GAAP financial measures as follows: Adjusted EBITDA – Adjusted EBITDA consists of GAAP net income as reported and adjusts for (i) depreciation expense; (ii) amortization of software development costs; (iii) amortization of acquisition-related intangibles; (iv) stock-based compensation; (v) severance and other nonrecurring charges; (vi) interest expense and other income; (vii) gain on disposal of property and equipment; (viii) gain on sale of AHT; and (ix) the provision for (benefit from) income taxes. Adjusted EBITDA Margin – Adjusted EBITDA Margin is calculated as Adjusted EBITDA, as defined above, divided by total revenue. Non-GAAP net income – Non-GAAP net income consists of GAAP net income as reported and adjusts for (i) amortization of acquisition-related intangible assets; (ii) stock-based compensation; (iii) severance and other nonrecurring charges; (iv) non-cash interest expense; (v) gain on sale of AHT; and (vi) the total tax effect of items (i) through (v). Non-GAAP EPS – Non-GAAP EPS consists of Non-GAAP net income, as defined above, divided by weighted average shares outstanding (diluted) in the applicable period. Certain of the items excluded or adjusted to arrive at these non-GAAP financial measures are described below: Amortization of acquisition-related intangibles – Acquisition-related amortization expense is a non-cash expense arising primarily from the acquisition of intangible assets in connection with acquisitions or investments. We exclude acquisition-related amortization expense from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. Investors should note that the use of these intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation, and the related amortization expense will recur in future periods. Stock-based compensation – Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards. We exclude stock-based compensation expense from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of the timing and valuation of grants of new stock-based awards, including grants in connection with acquisitions. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods, and such expense will recur in future periods. Severance and other nonrecurring charges – Non-recurring charges relate to certain severance and other charges incurred in connection with activities that are considered non-recurring. We exclude non-recurring expenses (primarily related to costs associated with our recent business transformation initiative and transaction-related costs) from non-GAAP financial measures because we believe (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods. Non-cash Interest expense – Non-cash interest expense includes amortization of deferred debt issuance costs. We exclude non-cash interest expense from non-GAAP financial measures because we believe these non-cash amounts relate to specific transactions and, as such, may not directly correlate to the underlying performance of our business operations. Interest expense and other income – Interest expense and other income represents (i) interest incurred on our term loan and revolving credit facility and (ii) non-cash interest expense. We exclude interest expense from non-GAAP financial measures because we believe these amounts relate to specific transactions and, as such, may not directly correlate to the underlying performance of our business operations. Gain on disposal of property and equipment – Gain on disposal of property and equipment represents the excess of proceeds received over the book value of assets disposed of during the period. We exclude gain on disposal of property and equipment from non-GAAP financial measures because we believe (i) the amount of such gain or loss in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such gain or loss can vary significantly between periods. Gain on sale of AHT – Gain on sale of AHT represents the excess of proceeds received over the net assets sold from our sale of AHT, our previously wholly-owned post-acute business, in January 2024. We exclude gain on sale of AHT from non-GAAP financial measures because we believe the amount relates to a specific transaction and, as such, may not directly correlate to the underlying performance of our business operations. Tax shortfall (windfall) from stock-based compensation – ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, became effective for the Company during the third quarter of 2017 and changes the treatment of tax shortfall and excess tax benefits arising from stock based compensation arrangements. Prior to ASU 2016-09, these amounts were recorded as an increase (for excess benefits) or decrease (for shortfalls) to additional paid-in capital. With the adoption of ASU 2016-09, these amounts are now captured in the period's income tax expense. We exclude this component of income tax expense from non-GAAP financial measures because we believe (i) the amount of such expenses or benefits in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses or benefits can vary significantly between periods as a result of the valuation of grants of new stock-based awards, the timing of vesting of awards, and periodic movements in the fair value of our common stock. Management considers these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance. In addition, management may use Adjusted EBITDA, Non-GAAP net income and/or Non-GAAP EPS to measure the achievement of performance objectives under the Company's stock and cash incentive programs. Note, however, that these non-GAAP financial measures are performance measures only, and they do not provide any measure of cash flow or liquidity. Non-GAAP financial measures are not alternatives for measures of financial performance prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures presented by other companies, limiting their usefulness as comparative measures. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Additionally, there is no certainty that we will not incur expenses in the future that are similar to those excluded in the calculations of the non-GAAP financial measures presented in this press release. Investors and potential investors are encouraged to review the 'Unaudited Reconciliation of Non-GAAP Financial Measures' above.
CBC
an hour ago
- CBC
Beef prices increase far outpacing inflation
The latest numbers show the price of ground beef has gone up 25 per cent in the last year alone.
