ATLANTA, June 12, 2017 /PRNewswire/
-- Streamline Health Solutions, Inc. (NASDAQ:
STRM), provider of the Looking Glass® platform of
integrated solutions, technology-enabled services and analytics
supporting revenue cycle optimization for healthcare enterprises,
today announced financial results for the first quarter of 2017,
which ended April 30,
2017.
Revenues for the three-month period ended April 30, 2017 decreased approximately 11% to
$5.9 million over the April 30, 2016 quarter revenue of $6.7 million. Recurring revenue comprised
83% of total revenue in the quarter. Net loss for the first
quarter was $(2.0) million as
compared to a $(1.5) million net loss
in the same period a year ago. Adjusted EBITDA for the first
quarter 2017 was a negative $(0.4)
million, down from $0.6M in
first quarter of 2016.
"Our first quarter financial performance was as previously
communicated, with a decline in revenue from Q4 of 2016 based
primarily upon the anticipated revenue attrition of approximately
$0.5 million combined with the
negative net effect of selling our Scheduling solution suite while
adding code auditing services," stated David Sides, President and Chief Executive
Officer, Streamline Health. "However, as we look at the
remainder of the year, we are encouraged by the sales activity we
are experiencing primarily with our new cloud-based pre-bill audit
solution we call eValuator™. We acquired the initial concept
for this new solution in September, invested development resources
into it in the second half of last year and formally launched it at
the HIMSS conference in February. In just four months, the
top of our sales pipeline has expanded substantially with more than
50 current clients and new prospects interested in eValuator. We
anticipate closing our first of several new contracts in this
quarter, and ramping up our bookings and recurring revenue
performance in subsequent quarters this year and next.
"Our balance sheet was also as expected, with heavier uses of
cash in the first quarter as usual. Bookings were below our
expectations as some software contracts were pushed out, and the
contract size for new auditing services clients was smaller by
nature, but the acquisition of new clients we believe will lead to
greater growth opportunities with each one."
Highlights for the first quarter ended April 30, 2017 included:
- Revenue for the first quarter 2017 was $5.9 million;
- Net loss for the first quarter 2017 was $(2.0) million;
- Adjusted EBITDA for the first quarter 2017 was
$(0.4) million;
- New sales bookings for the quarter were $0.5 million; and
- Backlog at the end of the quarter was $47.9 million.
Conference Call Information
Date:
|
June 13, 2017, 9:00 AM ET
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|
|
Webcast Registration:
|
Click Here
|
|
|
Conference Dial-In:
|
877-397-0286
|
|
|
International Dial-In:
|
719-325-4821
|
|
|
Conference Passcode:
|
2544566
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Conference Call Name:
|
Streamline Health Solutions First Quarter 2017
Results Call
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|
Following the call, a replay will be available on the
Company's website, www.streamlinehealth.net, in the Investor
Relations section.
*Non-GAAP Financial Measures
Streamline Health reports its financial results in accordance
with U.S. generally accepted accounting principles ("GAAP").
Streamline Health's management also evaluates and makes operating
decisions using various other measures. One such measure is
adjusted EBITDA, which is a non-GAAP financial measure. Streamline
Health's management believes that this measure provides useful
supplemental information regarding the performance of Streamline
Health's business operations.
Streamline Health defines "adjusted EBITDA" as net earnings
(loss) plus interest expense, tax expense, depreciation and
amortization expense of tangible and intangible assets, stock-based
compensation expense, significant non-recurring operating expenses,
and transactional related expenses including: gains and losses on
debt and equity conversions, associate severances and related
restructuring expenses, associate inducements, and professional and
advisory fees. A table illustrating this measure is included in
this press release.
About Streamline Health
Streamline Health Solutions,
Inc. (NASDAQ: STRM) is a healthcare industry leader in
capturing, aggregating, and translating enterprise data into
knowledge – actionable insights that support revenue cycle
optimization for healthcare enterprises. We deliver integrated
solutions, technology-enabled services and analytics that enable
providers to drive reimbursement in a value-based world. We share a
common calling and commitment to advance the quality of life and
the quality of healthcare – for society, our clients, the
communities they serve, and the individual patient. For more
information, please visit our website
at www.streamlinehealth.net.
Safe Harbor statement under the Private Securities
Litigation Reform Act of 1995
Statements
made by Streamline Health Solutions, Inc. that are not historical
facts are forward-looking statements that are subject to certain
risks, uncertainties and important factors that could cause actual
results to differ materially from those reflected in the
forward-looking statements included herein. Forward-looking
statements contained in this press release include, without
limitation, statements regarding the Company's estimates of future
revenue, backlog, results of investments in sales and marketing,
success of future products and related expectations and
assumptions. These risks and uncertainties include, but are
not limited to, the timing of contract negotiations and execution
of contracts and the related timing of the revenue recognition
related thereto, the potential cancellation of existing contracts
or clients not completing projects included in the backlog, the
impact of competitive solutions and pricing, solution demand and
market acceptance, new solution development and enhancement of
current solutions, key strategic alliances with vendors and channel
partners that resell the Company's solutions, the ability of the
Company to control costs, availability of solutions from third
party vendors, the healthcare regulatory environment, potential
changes in legislation, regulation and government funding affecting
the healthcare industry, healthcare information systems budgets,
availability of healthcare information systems trained personnel
for implementation of new systems, as well as maintenance of legacy
systems, fluctuations in operating results, effects of critical
accounting policies and judgments, changes in accounting policies
or procedures as may be required by the Financial Accounting
Standards Board or other similar entities, changes in economic,
business and market conditions impacting the healthcare industry
generally and the markets in which the Company operates and
nationally, and the Company's ability to maintain compliance with
the terms of its credit facilities, and other risks detailed from
time to time in the Streamline Health Solutions, Inc. filings with
the U. S. Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date hereof. The
Company undertakes no obligation to publicly release the results of
any revision to these forward-looking statements, which may be made
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as required
by law.
Company Contact:
Randy Salisbury
SVP, Chief
Marketing Officer
(404)
229-4242
randy.salisbury@streamlinehealth.net
STREAMLINE HEALTH
SOLUTIONS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
Systems sales
|
$
|
378,723
|
$
|
511,267
|
Professional services
|
|
420,035
|
|
690,615
|
Audit Services
|
|
345,019
|
|
--
|
Maintenance and support
|
|
3,354,772
|
|
3,755,553
|
Software as a service
|
|
1,425,132
|
|
1,709,786
|
Total
revenues
|
|
5,923,681
|
|
6,667,221
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Cost of systems sales
|
|
566,051
|
|
745,484
|
Cost of professional
services
|
|
715,215
|
|
638,764
|
Cost of audit services
|
|
440,639
|
|
--
|
Cost of maintenance and
support
|
|
806,522
|
|
857,818
|
Cost of software as a
service
|
|
339,376
|
|
484,243
|
Selling, general and
administrative
|
|
3,373,528
|
|
3,598,841
|
Research and development
|
|
1,556,938
|
|
1,722,187
|
Total
operating expenses
|
|
7,798,269
|
|
8,047,337
|
Operating loss
|
|
(1,874,588)
|
|
(1,380,116)
|
Other income (expense):
|
|
|
|
|
Interest expense
|
|
(127,268)
|
|
(162,012)
|
Miscellaneous income
|
|
(38,044)
|
|
66,222
|
Loss before income taxes
|
|
(2,039,900)
|
|
(1,475,906)
|
Income tax expense
|
|
(2,608)
|
|
(1,701)
|
Net loss
|
$
|
(2,042,508)
|
$
|
(1,477,607)
|
Less: deemed dividends on Series A Preferred
Shares
|
|
--
|
|
(384,719)
|
Net loss attributable to common
shareholders
|
$
|
(2,042,508)
|
$
|
(1,862,326)
|
Basic net loss per common share
|
$
|
(0.10)
|
$
|
(0.10)
|
Number of shares used in basic per common share
computation
|
|
19,695,390
|
|
18,995,289
|
Diluted net loss per common share
|
$
|
(0.10)
|
$
|
(0.10)
|
Number of shares used in diluted per common share
computation
|
|
19,695,390
|
|
18,995,289
|
STREAMLINE HEALTH
SOLUTIONS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
Assets
|
|
|
|
April 30,
|
|
January 31,
|
|
|
2017
|
|
2017
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
3,577,245
|
$
|
5,654,093
|
Accounts receivable, net of allowance for
doubtful
accounts of $385,583 and
$198,449,
respectively
|
|
3,720,665
|
|
4,489,789
|
Contract receivables
|
|
429,766
|
|
466,423
|
Prepaid hardware and third party software
for
future delivery
|
|
5,858
|
|
5,858
|
Prepaid client maintenance
contracts
|
|
768,443
|
|
595,633
|
Other prepaid assets
|
|
541,280
|
|
732,496
|
Other current assets
|
|
110,899
|
|
439
|
Total
current assets
|
|
9,154,156
|
|
11,944,731
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
Property and equipment:
|
|
|
|
|
Computer
equipment
|
|
3,087,261
|
|
3,110,274
|
Computer
software
|
|
831,242
|
|
827,642
|
Office furniture, fixtures and
equipment
|
|
683,443
|
|
683,443
|
Leasehold
improvements
|
|
729,348
|
|
729,348
|
|
|
5,331,294
|
|
5,350,707
|
Accumulated depreciation and
amortization
|
|
(3,621,128)
|
|
(3,447,198)
|
Property and equipment, net
|
|
1,710,166
|
|
1,903,509
|
|
|
|
|
|
Capitalized software development costs, net
of
accumulated amortization of $17,116,225 and
$16,544,797 respectively
|
|
4,399,315
|
|
4,584,245
|
Intangible assets, net of accumulated
amortization
of $6,140,395 and $5,807,338, respectively
|
|
6,663,542
|
|
6,996,599
|
Goodwill
|
|
15,537,281
|
|
15,537,281
|
Other
|
|
594,887
|
|
672,133
|
Total
non-current assets
|
|
28,905,191
|
|
29,693,767
|
|
$
|
38,059,347
|
$
|
41,638,498
|
STREAMLINE HEALTH
SOLUTIONS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
April 30,
|
|
January 31,
|
|
|
2017
|
|
2017
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
876,122
|
$
|
1,116,525
|
Accrued compensation
|
|
394,466
|
|
496,706
|
Accrued other expenses
|
|
989,689
|
|
484,391
|
Current portion of term loan
|
|
655,804
|
|
655,804
|
Deferred revenues
|
|
8,306,413
|
|
9,916,454
|
Current portion of capital lease
obligations
|
|
57,526
|
|
91,337
|
Total
current liabilities
|
|
11,280,020
|
|
12,761,217
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
Term loan, net of deferred financing cost of
$181,477 and
|
|
|
|
|
$199,211,
respectively
|
|
4,737,069
|
|
4,883,286
|
Warrants liability
|
|
14,981
|
|
46,191
|
Royalty liability
|
|
2,391,563
|
|
2,350,754
|
Lease incentive liability
|
|
326,806
|
|
339,676
|
Deferred revenues, less current
portion
|
|
424,310
|
|
568,515
|
Total
non-current liabilities
|
|
7,894,729
|
|
8,188,422
|
Total
liabilities
|
|
19,174,749
|
|
20,949,639
|
|
|
|
|
|
Series A 0% Convertible Redeemable Preferred stock,
$.01 par
value per share, $8,849,985 redemption value, 4,000,000 shares
authorized, 2,949,995 issued and outstanding, net of
unamortized
preferred stock discount of $0
|
|
8,849,985
|
|
8,849,985
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock, $.01 par value per share,
45,000,000 shares
authorized, 19,674,122 and 19,695,391 shares
issued and
outstanding, respectively
|
|
196,741
|
|
196,954
|
Additional paid in capital
|
|
80,906,231
|
|
80,667,771
|
Accumulated deficit
|
|
(71,068,359)
|
|
(69,025,851)
|
Total
stockholders' equity
|
|
10,034,613
|
|
11,838,874
|
|
$
|
38,059,347
|
$
|
41,638,498
|
|
|
|
|
|
|
|
STREAMLINE HEALTH
SOLUTIONS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Three Months Ended April 30,
|
|
|
2017
|
|
2016
|
Operating activities:
|
|
|
|
|
Net loss
|
$
|
(2,042,508)
|
$
|
(1,477,607)
|
Adjustments to reconcile net loss to net
cash
|
|
|
|
|
used in operating activities:
|
Depreciation
|
|
202,782
|
|
320,672
|
Amortization of capitalized software development
costs
|
|
571,428
|
|
715,765
|
Amortization of intangible assets
|
|
333,057
|
|
325,446
|
Amortization of other deferred
costs
|
|
100,815
|
|
61,184
|
Valuation adjustment for warrants
liability
|
|
(31,210)
|
|
(39,403)
|
Share-based compensation expense
|
|
267,174
|
|
477,212
|
Other valuation adjustments
|
|
48,467
|
|
47,417
|
(Gain) loss on disposal of property and
equipment
|
|
(720)
|
|
567
|
Provision for accounts receivable
|
|
187,134
|
|
71,907
|
Changes in assets and liabilities, net of
effects of acquisitions:
|
|
|
|
|
Accounts and contract receivables
|
|
618,647
|
|
108,002
|
Other assets
|
|
(97,889)
|
|
(39,082)
|
Accounts payable
|
|
(240,403)
|
|
(567,503)
|
Accrued expenses
|
|
382,530
|
|
(279,881)
|
Deferred revenues
|
|
(1,754,246)
|
|
(2,183,705)
|
Net cash used in operating
activities
|
|
(1,454,942)
|
|
(2,459,009)
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
(8,719)
|
|
(11,654)
|
Capitalization of software development
costs
|
|
(386,498)
|
|
(497,988)
|
Net cash used in investing
activities
|
|
(395,217)
|
|
(509,642)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Principal repayments on term loan
|
|
(163,951)
|
|
(168,451)
|
Principal payments on capital lease
obligation
|
|
(33,811)
|
|
(217,110)
|
Payments related to settlement of
employee share-based awards
|
|
(28,927)
|
|
(11,702)
|
Net cash used in financing
activities
|
|
(226,689)
|
|
(397,263)
|
Net decrease in cash and cash
equivalents
|
|
(2,076,848)
|
|
(3,365,914)
|
Cash and cash equivalents at beginning of
period
|
|
5,654,093
|
|
9,882,136
|
Cash and cash equivalents at end of
period
|
$
|
3,577,245
|
$
|
6,516,222
|
STREAMLINE HEALTH
SOLUTIONS, INC.
Backlog
(Unaudited)
Table A
|
|
|
|
April 30,
2017
|
|
January 31,
2017
|
|
April 30,
2016
|
Company Proprietary Software
|
$
|
11,234,000
|
$
|
11,504,000
|
$
|
21,410,000
|
Third Party Hardware and Software
|
|
100,000
|
|
150,000
|
|
200,000
|
Professional Services
|
|
3,642,000
|
|
4,068,000
|
|
5,480,000
|
Audit Services
|
|
1,634,000
|
|
1,847,000
|
|
--
|
Maintenance and Support
|
|
18,084,000
|
|
19,193,000
|
|
20,793,000
|
Software as a Service
|
|
13,194,000
|
|
13,861,000
|
|
14,820,000
|
Total
|
$
|
47,888,000
|
$
|
50,623,000
|
$
|
62,703,000
|
STREAMLINE HEALTH
SOLUTIONS, INC.
New
Bookings
(Unaudited)
Table B
|
|
|
|
Three Months Ended
|
|
|
April 30, 2017
|
|
|
Value
|
|
% of Total
Bookings
|
Streamline Health Software licenses
|
$
|
15,000
|
|
3%
|
Software as a service
|
|
22,000
|
|
4%
|
Maintenance and support
|
|
3,000
|
|
1%
|
Professional services
|
|
479,000
|
|
92%
|
Hardware & third party software
|
|
--
|
|
0%
|
Total bookings
|
$
|
519,000
|
|
100%
|
Reconciliation of
Non-GAAP Financial Measures
|
(Unaudited)
|
Table C
|
|
This press release contains a non-GAAP financial
measure under the rules of the U.S. Securities and Exchange
Commission for adjusted EBITDA. This non-GAAP information
supplements and is not intended to represent a measure of
performance in accordance with disclosures required by generally
accepted accounting principles. Non-GAAP financial measures are
used internally to manage the business, such as in establishing an
annual operating budget. Non-GAAP financial measures are used by
Streamline Health's management in its operating and financial
decision-making because management believes these measures reflect
ongoing business in a manner that allows meaningful
period-to-period comparisons. Accordingly, the Company believes it
is useful for investors and others to review both GAAP and non-GAAP
measures in order to (a) understand and evaluate current
operating performance and future prospects in the same manner as
management does and (b) compare in a consistent manner the
Company's current financial results with past financial results.
The primary limitations associated with the use of non-GAAP
financial measures are that these measures may not be directly
comparable to the amounts reported by other companies and they do
not include all items of income and expense that affect operations.
The Company's management compensates for these limitations by
considering the company's financial results and outlook as
determined in accordance with GAAP and by providing a detailed
reconciliation of the non-GAAP financial measures to the most
directly comparable GAAP measures in the tables attached to this
press release. Streamline Health defines "adjusted EBITDA" as net
earnings (loss) plus interest expense, tax expense, depreciation
and amortization expense of tangible and intangible assets,
stock-based compensation expense, significant non-recurring
operating expenses, and transactional related expenses including:
gains and losses on debt and equity conversions, associate
severances and related restructuring expenses, associate
inducements, professional and advisory fees, and internal direct
costs incurred to complete transactions.
|
|
Reconciliation of net earnings (loss) to non-GAAP
adjusted EBITDA (in thousands)
|
|
Adjusted EBITDA
Reconciliation
|
|
Three Months
Ended,
|
|
|
|
April 30,
2017
|
|
April 30,
2016
|
|
Net loss
|
$
|
(2,043)
|
$
|
(1,478)
|
|
Interest expense
|
|
127
|
|
162
|
|
Income tax expense
|
|
3
|
|
2
|
|
Depreciation
|
|
203
|
|
321
|
|
Amortization of capitalized software development costs
|
|
571
|
|
716
|
|
Amortization of intangible assets
|
|
333
|
|
325
|
|
Amortization of other costs
|
|
84
|
|
43
|
|
EBITDA
|
|
(722)
|
|
91
|
|
Share-based compensation expense
|
|
267
|
|
477
|
|
(Gain) Loss of disposal of fixed assets
|
|
(1)
|
|
1
|
|
Non-cash valuation adjustments to assets and liabilities
|
|
17
|
|
8
|
|
Transaction related professional fees, advisory fees
and
|
|
|
|
|
|
other internal direct costs
|
|
--
|
|
19
|
|
Adjusted
EBITDA
|
$
|
(439)
|
$
|
596
|
|
Adjusted EBITDA
Margin(1)
|
|
(7)%
|
|
9%
|
|
Adjusted EBITDA
per diluted share
|
|
|
|
|
|
Loss per share –
diluted
|
$
|
(0.10)
|
$
|
(0.10)
|
|
Adjusted EBITDA per
adjusted diluted share (2)
|
$
|
(0.02)
|
$
|
0.03
|
|
Diluted weighted
average shares
|
|
19,695,390
|
|
18,995,289
|
|
Includable incremental shares — adjusted
EBITDA (3)
|
|
--
|
|
3,251,455
|
|
Adjusted diluted
shares
|
|
19,695,390
|
|
22,246,744
|
|
|
|
(1)
|
Adjusted EBITDA as a
percentage of GAAP revenues
|
(2)
|
Adjusted EBITDA per
adjusted diluted share for the Company's common stock is computed
using the more dilutive of the two-class method or the if-converted
method.
|
|
|
(3)
|
The number of
incremental shares that would be dilutive under profit assumption,
only applicable under a GAAP net loss. If GAAP profit is earned in
the current period, no additional incremental shares are
assumed.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/streamline-health-reports-first-quarter-2017-revenues-of-59-million-20-million-net-loss-adjusted-ebitda-of-04-million-300472567.html
SOURCE Streamline Health, Inc.