ATLANTA, June 6, 2018 /PRNewswire/
-- Streamline Health Solutions, Inc. (NASDAQ: STRM),
provider of integrated solutions, technology-enabled services and
analytics supporting revenue cycle optimization for healthcare
enterprises in the new value-based world, today announced financial
results for the first quarter of fiscal year 2018, which ended
April 30, 2018.
Revenues for the three-month period ended April 30, 2018 were $6.3
million, an increase of approximately 6% as compared to the
three-months ended April 30, 2017.
Adjusted EBITDA for the first quarter of fiscal 2018 was
approximately $0.6 million, a
substantial improvement over the $400,000 loss in the first quarter a year
ago. Net loss for the first quarter of fiscal 2018 was
approximately $569,000, a substantial
improvement over the $2.0 million net
loss in the same period a year ago.
"Our first quarter performance was very solid as we began to
realize the benefits of focusing our selling efforts on solutions
in the middle of the revenue cycle to help our clients capture the
financial reimbursement they deserve for the patient care they
provided. Bookings in the quarter improved significantly to
$3.4 million as we sold Abstracting,
Clinical Documentation Integrity and eValuator solutions to current
and new clients," stated David
Sides, President and Chief Executive Officer, Streamline
Health. "Our continued focus on tighter cost controls delivered
improved bottom line results as well. Total operating expenses
decreased by approximately 15 percent as compared to first quarter
a year ago reducing operating loss in the quarter to approximately
$363,000, down from last year's first
quarter operating loss of $1,874,000.
And net loss for the first quarter was approximately $569,000, a marked improvement over a
$2 million loss in the first quarter
of last year."
"We remain committed to leading an industry movement to improve
hospitals' financial performance by moving mid-cycle billing
interventions upstream - to improve coding accuracy before billing,
enabling our clients to reduce lost revenue, mitigate overbill
risk, and reduce denials and days in accounts receivable."
Highlights for the first quarter ended April 30, 2018 included:
- Revenues for the first quarter of 2018 were $6.3 million;
- Adjusted EBITDA for the first quarter of 2018 was $0.6 million;
- Net loss for the first quarter of 2018 was $569,000;
- New sales bookings for the first quarter of 2018 were
$3.4 million; and
- Backlog at the end of the first quarter was $26.1 million.
The Company is planning to file its Form 10-Q for the first
fiscal quarter during the week of June
11th.
The Company also announced the impending departure of its Chief
Financial Officer, Nicholas Meeks,
who will remain with the Company through June 15, 2018. Mr. Meeks is leaving the
Company to pursue another opportunity with another company based in
the Atlanta market. The
Company is actively seeking his replacement and has begun
interviewing potential candidates to fill this position.
Conference Call Information
The Company will conduct a conference call to review the results
on Thursday, June 7, 2018 at
9:00 AM ET. Interested parties can
access the call by joining the live webcast: click here to
register. You can also join by phone by dialing 800-263-0877 and
then entering passcode 7132733.
A replay of the conference call will be available from
Thursday, June 7, 2018 at
12:00 PM ET to Tuesday, June 12, 2018 at 12:00 PM ET by dialing 888-203-1112 and entering
passcode 7132733.
*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 reconciling this measure to net income 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 – producing actionable insights that support revenue
cycle optimization for healthcare enterprises. We
deliver integrated solutions, technology-enabled services and
analytics that empower providers to drive revenue integrity 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months
Ended
April
30,
|
|
|
|
2018
|
|
2017
|
|
Revenues:
|
|
|
|
|
|
Systems
sales
|
$
|
1,131,674
|
$
|
378,723
|
|
Professional
services
|
|
238,314
|
|
420,035
|
|
Audit
Services
|
|
359,713
|
|
345,019
|
|
Maintenance
and support
|
|
3,309,104
|
|
3,354,772
|
|
Software as a
service
|
|
1,224,368
|
|
1,425,132
|
|
Total
revenues
|
|
6,263,173
|
|
5,923,681
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of
systems sales
|
|
249,984
|
|
566,051
|
|
Cost of
professional services
|
|
706,230
|
|
715,215
|
|
Cost of audit
services
|
|
393,979
|
|
440,639
|
|
Cost of
maintenance and support
|
|
648,339
|
|
806,522
|
|
Cost of
software as a service
|
|
316,387
|
|
339,376
|
|
Selling,
general and administrative
|
|
3,249,057
|
|
3,373,528
|
|
Research and
development
|
|
1,062,319
|
|
1,556,938
|
|
Total
operating expenses
|
|
6,626,295
|
|
7,798,259
|
|
Operating
loss
|
|
(363,122)
|
|
(1,874,588)
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
|
(116,218)
|
|
(127,268)
|
|
Miscellaneous
income (expenses)
|
|
(87,645)
|
|
(38,044)
|
|
Loss before income
taxes
|
|
(566,985)
|
|
(2,039,900)
|
|
Income tax
benefit (expense)
|
|
(1,714)
|
|
(2,608)
|
|
Net Income
(Loss)
|
$
|
(568,699)
|
$
|
(2,042,508)
|
|
Net loss per common
share – basic and diluted
|
$
|
(0.03)
|
$
|
(0.10)
|
|
Weighted average
number of common shares – basic and diluted
|
|
19,986,425
|
|
19,695,390
|
|
|
|
|
|
|
|
|
STREAMLINE HEALTH
SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Assets
|
|
|
|
April
30,
|
|
January
31,
|
|
|
2018
|
|
2018
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,745,532
|
$
|
4,619,834
|
Accounts receivable,
net of allowance for doubtful
accounts of $323,524 and $349,058, respectively
|
|
2,819,849
|
|
3,001,170
|
Contract
receivables
|
|
923,274
|
|
223,791
|
Prepaid hardware and
third-party software for future delivery
|
|
--
|
|
5,858
|
Prepaid client
maintenance contracts
|
|
555,689
|
|
506,911
|
Other prepaid
assets
|
|
608,363
|
|
742,232
|
Other current
assets
|
|
545,431
|
|
546,885
|
Total current
assets
|
|
9,198,138
|
|
9,646,681
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment:
|
|
|
|
|
Computer
equipment
|
|
2,831,024
|
|
2,852,776
|
Computer
software
|
|
730,950
|
|
730,950
|
Office
furniture, fixtures and equipment
|
|
683,443
|
|
683,443
|
Leasehold
improvements
|
|
729,348
|
|
729,348
|
|
|
4,974,765
|
|
4,996,517
|
Accumulated
depreciation and amortization
|
|
(3,981,311)
|
|
(3,834,153)
|
Property and
equipment, net
|
|
993,454
|
|
1,162,364
|
|
|
|
|
|
Contract Receivables,
less current portion
|
|
686,658
|
|
--
|
Capitalized
software development costs, net of
accumulated amortization of $18,973,594 and
$18,658,183, respectively
|
|
4,717,986
|
|
4,307,351
|
Intangible
assets, net
|
|
5,600,204
|
|
5,835,151
|
Goodwill
|
|
15,537,281
|
|
15,537,281
|
Other
non-current assets
|
|
577,570
|
|
642,226
|
Total
non-current assets
|
|
28,113,153
|
|
27,484,373
|
|
$
|
37,311,291
|
$
|
37,131,054
|
STREAMLINE HEALTH
SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
April
30,
|
|
January
31,
|
|
|
2018
|
|
2018
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
1,344,377
|
$
|
421,425
|
Accrued
compensation
|
|
829,062
|
|
342,351
|
Accrued other
expenses
|
|
766,353
|
|
609,582
|
Current
portion of long-term debt
|
|
596,984
|
|
596,984
|
Deferred
revenues
|
|
7,301,408
|
|
9,481,807
|
Total
current liabilities
|
|
10,838,184
|
|
11,452,149
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Term loan, net of
deferred financing cost of $110,541 and $128,275,
respectively
|
|
3,769,840
|
|
3,901,353
|
Royalty
liability
|
|
2,518,068
|
|
2,469,193
|
Lease
incentive liability, less current portion
|
|
254,933
|
|
274,128
|
Deferred
revenues, less current portion
|
|
181,877
|
|
332,645
|
Total
non-current liabilities
|
|
6,724,718
|
|
6,977,319
|
Total
liabilities
|
|
17,562,902
|
|
18,429,468
|
|
|
|
|
|
Series A 0%
Convertible Redeemable Preferred Stock, $.01 par value per share,
$8,849,985 redemption and liquidation value, 4,000,000 shares
authorized, 2,895,464 and 2,949,995 issued and outstanding,
respectively, net of unamortized preferred stock discount of
$0
|
|
8,686,392
|
|
8,849,985
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock,
$.01 par value per share, 45,000,000 shares authorized; 20,034,446
and 20,005,977 shares issued and outstanding,
respectively
|
|
200,344
|
|
200,060
|
Additional
paid in capital
|
|
82,115,469
|
|
81,776,606
|
Accumulated
deficit
|
|
(71,253,816)
|
|
(72,125,065)
|
Total
stockholders' equity
|
|
11,061,997
|
|
9,851,601
|
|
$
|
37,311,291
|
$
|
37,131,054
|
STREAMLINE HEALTH
SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months
Ended,
|
|
|
April
30,
2018
|
|
April
30,
2017
|
Operating
activities:
|
|
|
|
|
Net
loss
|
$
|
(568,699)
|
$
|
(2,042,508)
|
Adjustments to
reconcile net loss to net cash provided by (used in)
operating activities, net of
acquisitions:
|
|
|
|
|
Depreciation
|
|
171,215
|
|
202,782
|
Amortization of
capitalized software development costs
|
|
315,412
|
|
571,428
|
Amortization of
intangible assets
|
|
234,947
|
|
333,057
|
Amortization of other deferred costs
|
|
119,910
|
|
100,815
|
Valuation adjustment for warrants liability
|
|
--
|
|
(31,210)
|
Share-based compensation expense
|
|
222,458
|
|
267,174
|
Other valuation adjustments
|
|
51,142
|
|
48,467
|
Loss (Gain) on disposal of fixed assets
|
|
(1,555)
|
|
(720)
|
Provision for accounts receivable
|
|
(7,851)
|
|
187,134
|
Changes in
assets and liabilities, net of assets acquired:
|
|
|
|
|
Accounts and contract
receivables
|
|
(446,246)
|
|
618,647
|
Other
assets
|
|
43,207
|
|
(97,889)
|
Accounts
payable
|
|
922,952
|
|
(240,403)
|
Accrued
expenses
|
|
622,020
|
|
382,530
|
Deferred
revenues
|
|
(1,641,942)
|
|
(1,754,243)
|
Net cash
provided by (used in) operating activities
|
|
36,970
|
|
(1,454,942)
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchases of property
and equipment
|
|
(3,300)
|
|
(8,719)
|
Proceeds from sales of
property and equipment
|
|
14,225
|
|
--
|
Capitalization of
software development costs
|
|
(726,047)
|
|
(386,498)
|
Net cash used
in investing activities
|
|
(715,122)
|
|
(395,217)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Principal repayments
on term loan
|
|
(149,246)
|
|
(163,951)
|
Principal payments on
capital lease obligations
|
|
--
|
|
(33,811)
|
Payments related to
settlement of employee share-based awards
|
|
(46,904)
|
|
(28,927)
|
Net cash used
in financing activities
|
|
(196,150)
|
|
(226,689)
|
Increase (decrease)
in cash and cash equivalents
|
|
(874,302)
|
|
(2,076,848)
|
Cash and cash
equivalents at beginning of year
|
|
4,619,834
|
|
5,654,093
|
Cash and cash
equivalents at end of year
|
$
|
3,745,532
|
$
|
3,577,245
|
|
|
|
|
|
|
|
STREAMLINE HEALTH
SOLUTIONS, INC.
Backlog
(Unaudited)
Table
A
|
|
|
|
April
30, 2018
|
|
January 31,
2018
|
|
April
30, 2017
|
Streamline Health
Software Licenses
|
$
|
115,000
|
$
|
984, 000
|
$
|
11,234,000
|
Hardware and Third
Party Software
|
|
--
|
|
--
|
|
100,000
|
Professional
Services
|
|
2,415,000
|
|
2,048,000
|
|
3,642,000
|
Audit
Services
|
|
703,000
|
|
1,293,000
|
|
1,634,000
|
Maintenance and
Support
|
|
12,978,000
|
|
15,420,000
|
|
18,084,000
|
Software as a
Service
|
|
9,903,000
|
|
13,048,000
|
|
13,194,000
|
Total
|
$
|
26,114,000
|
$
|
32,793,000
|
$
|
47,888,000
|
STREAMLINE HEALTH
SOLUTIONS, INC.
New Bookings
(Unaudited)
Table
B
|
|
|
|
Three Months
Ended
|
|
|
April 30,
2018
|
|
|
Value
|
|
%
of
Total
Bookings
|
Streamline Health
Software licenses
|
$
|
1,147,000
|
|
33%
|
Software as a
service
|
|
398,000
|
|
12%
|
Maintenance and
support
|
|
713,000
|
|
21%
|
Professional
services
|
|
1,118,000
|
|
33%
|
Audit
Services
|
|
58,000
|
|
2%
|
Total
bookings
|
$
|
3,434,000
|
|
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. Streamline Health's
management in its operating and financial decision-making uses
non-GAAP financial measures 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):
(Unaudited)
|
|
Adjusted EBITDA
Reconciliation
|
|
Three Months
Ended,
|
|
|
April
30,
2018
|
|
April
30,
2017
|
Net loss
|
$
|
(569)
|
$
|
(2,043)
|
Interest expense
|
|
116
|
|
127
|
Income tax benefit
|
|
2
|
|
3
|
Depreciation
|
|
171
|
|
203
|
Amortization of capitalized software development costs
|
|
315
|
|
571
|
Amortization of intangible assets
|
|
235
|
|
333
|
Amortization of other costs
|
|
102
|
|
89
|
EBITDA
|
|
372
|
|
(722)
|
Share-based compensation expense
|
|
222
|
|
267
|
Loss on disposal of fixed assets
|
|
(2)
|
|
(1)
|
Non-cash valuation adjustments to assets and liabilities
|
|
51
|
|
17
|
Adjusted
EBITDA
|
$
|
643
|
$
|
(439)
|
Adjusted EBITDA
per diluted share
|
|
|
|
|
Loss per share –
diluted
|
$
|
(0.03)
|
$
|
(0.10)
|
Adjusted EBITDA per
adjusted diluted share (1)
|
$
|
0.03
|
$
|
(0.02)
|
|
|
|
|
|
Diluted weighted
average shares
|
|
19,986,425
|
|
19,695,390
|
Includable incremental shares — Adjusted
EBITDA (2)
|
|
3,075,198
|
|
--
|
Adjusted diluted
shares
|
|
23,061,622
|
|
19,695,390
|
|
|
(1)
|
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.
|
(2)
|
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.
|
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SOURCE Streamline Health Solutions, Inc.