Streamline Health® Reports Second Quarter 2018 Revenues Of $5.3 Million; ($1.5 Million) Net Loss; Adjusted EBITDA Of $0.4 Million

Streamline Health® Reports Second Quarter 2018 Revenues Of $5.3 Million; ($1.5 Million) Net Loss; Adjusted EBITDA Of $0.4 Million
Streamline Health® Reports Second Quarter 2018 Revenues Of $5.3 Million; ($1.5 Million) Net Loss; Adjusted EBITDA Of $0.4 Million

ATLANTA, Sept. 11, 2018 /PRNewswire/ -- Streamline Health Solutions, Inc. (NASDAQ:STRM), provider of integrated solutions, technology-enabled services and analytics supporting revenue cycle optimization for healthcare enterprises, today announced financial results for the second quarter and first half of fiscal 2018, which ended July 31, 2018.

Streamline Health helps hospitals optimize their mid-revenue cycle operations in ways that transform tangled revenue cycles into dynamic revenue streams. Our integrated solutions, technology-enabled services and analytics enable providers to secure accurate reimbursement in a value-based world. (PRNewsfoto/Streamline Health Solutions)

Revenues for the three-month period ended July 31, 2018 decreased approximately 11% to $5.3 million over the July 31, 2017 quarter revenue of $5.9 million. Recurring revenue comprised 83% of total revenue in the quarter. Revenues for the first six months of fiscal year 2018 were $11.5 million, down approximately 3% as compared to $11.8 million in the first half of fiscal 2017. 

Net loss for the second quarter was $(1.5 million) as compared to a ($1.1 million) net loss in the same period a year ago.  Net loss for the first six months of fiscal 2018 was ($2.1 million) as compared to ($3.1 million) net loss for the same period in 2017.

Adjusted EBITDA for the second quarter 2018 was $0.4 million, down from $0.5 million in the second quarter of 2017. Adjusted EBITDA for the first six months of 2018 was $1.0 million, as compared to $45,000 in the first half of fiscal 2017.

"We continued to make meaningful operational progress in the second quarter. Our bookings included our first Abstracting client through our reseller agreement with Allscripts, and two new eValuator clients - one of which is a leading educational facility on the west coast, which uses Epic as their EMR provider," stated David Sides, President and Chief Executive Officer, Streamline Health.  "We continue to drive incremental operational efficiencies and we are deploying these savings to fund future growth and development.  In the second quarter we expanded the capabilities of eValuator from the original Inpatient version  to Outpatient; Profee – for physician practices, and Value-based Care (by adding Hospital Acquired Conditions, HACs, and Patient Safety Indicators, PSIs). We believe we have a spectrum of middle revenue cycle solutions for healthcare providers that no other competitor in the marketplace can match.

In addition, during the quarter we brought Tom Gibson on to our team at Streamline Health. We are very excited to have Tom on the team given his extensive financial and strategic experience in the industry."

Highlights for the second quarter ended July 31, 2018 included:

  • Revenue for the second quarter 2018 was $5.3 million;
  • Net loss for the second quarter 2018 was $(1.5 million);
  • Adjusted EBITDA for the second quarter 2018 was $0.4 million;
  • New sales bookings for the quarter were $1.9 million; and
  • Backlog at the end of the quarter was $23.4 million.

Conference Call Information
The Company will conduct a conference call to review the results on Wednesday, September 12, 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 1552127.

A replay of the conference call will be available from Wednesday, September 12, 2018 at 12:00 PM ET to Monday, September 17, 2018 at 12:00 PM ET by dialing 888-203-1112 and entering passcode 1552127.

*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 non-GAAP measure to net loss 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 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 future growth, new sales bookings, backlog, results of investments in sales and marketing, competitive strengths, 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

July 31,


Six Months Ended

July 31,



2018


2017


2018


2017

Revenues:









  Systems sales

$

385,875

$

328,692

$

1,517,549

$

707,415

  Professional services


271,121


571,812


509,435


991,847

  Audit Services


247,843


294,441


607,556


639,460

  Maintenance and support


3,216,251


3,278,562


6,525,355


6,633,334

  Software as a service


1,147,642


1,442,652


2,372,010


2,867,784

        Total revenues


5,268,732


5,916,159


11,531,905


11,839,840










Operating expenses:









  Cost of systems sales


289,890


596,799


539,874


1,162,850

  Cost of professional services


697,467


543,206


1,403,697


1,258,421

  Cost of audit services


300,081


391,439


694,060


832,078

  Cost of maintenance and support


566,248


768,140


1,214,587


1,574,662

  Cost of software as a service


281,872


285,832


598,259


625,208

  Selling, general and administrative


2,518,893


2,790,171


5,767,950


6,163,699

  Research and development


1,212,845


1,495,972


2,275,164


3,052,910

  Loss on exit of operating lease


806,163


--


806,163


--

        Total operating expenses


6,673,459


6,871,559


13,299,754


14,669,828

Operating loss


(1,404,727)


(955,400)


(1,767,849)


(2,829,988)

Other expense:









  Interest expense


(110,385)


(120,377)


(226,603)


(247,645)

  Miscellaneous expense


(5,383)


(19,681)


(93,028)


(57,725)

Loss before income taxes


(1,520,495)


(1,095,458)


(2,087,480)


(3,135,358)

  Income tax benefit


(1,713)


(2,607)


(3,427)


(5,215)

Net Loss

$

(1,522,208)

$

(1,098,065)

$

(2,090,907)

$

(3,140,573)

Net loss per common share – basic and diluted

$

(0.08)

$

(0.06)

$

(0.10)

$

(0.16)

Weighted average number of common shares – basic and diluted


19,971,090


19,834,859


19,978,757


19,765,125










 

STREAMLINE HEALTH SOLUTIONS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


Assets




July 31,


January 31,



2018


2018

Current assets:





Cash and cash equivalents

$

3,246,395

$

4,619,834

Accounts receivable, net of allowance for doubtful
 accounts of $267,221 and $349,058, respectively


2,238,088


3,001,170

Contract receivables


826,277


223,791

Prepaid hardware and third-party software for future delivery


--


5,858

Prepaid client maintenance contracts


560,004


506,911

Other prepaid assets


828,257


742,232

Other current assets


367,326


546,885

Total current assets


8,066,347


9,646,681






Non-current assets:





  Property and equipment:





  Computer equipment


2,876,707


2,852,776

  Computer software


704,562


730,950

  Office furniture, fixtures and equipment


662,157


683,443

  Leasehold improvements


582,271


729,348



4,825,697


4,996,517

  Accumulated depreciation and amortization


(3,956,221)


(3,834,153)

  Property and equipment, net


869,476


1,162,364






Contract Receivables, less current portion


683,031


--

Capitalized software development costs, net of
 accumulated amortization of $19,304,635 and
 $18,658,183, respectively


5,190,076


4,307,351

 Intangible assets, net


5,365,257


5,835,151

 Goodwill


15,537,281


15,537,281

 Other non-current assets


378,672


642,226

 Total non-current assets


28,023,793


27,484,373


$

36,090,140

$

37,131,054

 

STREAMLINE HEALTH SOLUTIONS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


Liabilities and Stockholders' Equity




July 31,


January 31,



2018


2018

Current liabilities:





  Accounts payable

$

789,239

$

421,425

  Accrued compensation


883,386


342,351

  Accrued other expenses


1,402,972


609,582

  Current portion of long-term debt


596,984


596,984

  Deferred revenues


8,273,251


9,481,807

  Other


37,135


--

        Total current liabilities


11,982,967


11,452,149






Non-current liabilities:





Term loan, net of deferred financing cost of $92,808 and $128,275, respectively


3,638,328


3,901,353

  Royalty liability


874,437


2,469,193

  Deferred revenues, less current portion


882,672


332,645

  Other Liabilities


316,514


274,128

        Total non-current liabilities


5,711,951


6,977,319

        Total liabilities


17,694,918


18,429,468






Series A 0% Convertible Redeemable Preferred Stock, $.01 par value per share, $8,686,392 and $8,849,985 redemption value, 4,000,000 shares authorized, 2,895,464 and 2,949,995 issued and outstanding, respectively


8,686,392


8,849,985






Stockholders' equity:





Common stock, $.01 par value per share, 45,000,000 shares authorized; 20,039,893 and 20,005,977 shares issued and outstanding, respectively


200,399


200,060

  Additional paid in capital


82,284,445


81,776,606

  Accumulated deficit


(72,776,024)


(72,125,065)

        Total stockholders' equity


9,708,830


9,851,601


$

36,090,140

$

37,131,054

 

STREAMLINE HEALTH SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






Six Months Ended,



July 31,

2018


July 31,

2017

Operating activities:





  Net loss

$

(2,090,907)

$

(3,140,573)

   Adjustments to reconcile net loss to net cash provided by (used
    in) operating activities:





    Depreciation


324,640


403,090

    Amortization of capitalized software development costs


646,452


1,143,624

    Amortization of intangible assets


469,894


666,114

    Amortization of other deferred costs


228,497


161,064

    Valuation adjustment for warrants liability


--


(45,831)

    Other valuation adjustments


56,211


86,192

    Loss on exit of operating lease


806,163


--

    Gain on disposal of fixed assets


(1,555)


(720)

    Share-based compensation expense


366,906


555,229

    Provision for accounts receivable


(64,154)


166,170

  Changes in assets and liabilities, net of assets acquired:





Accounts and contract receivables


292,442


99,068

Other assets


105,148


(333,401)

Accounts payable


367,814


449,929

Accrued expenses


587,226


(352,132)

Deferred revenues


(1,618,004)


(822,867)

  Net cash provided by (used in) operating activities


476,773


(965,026)






Investing activities:





Purchases of property and equipment


(14,457)


(9,812)

Proceeds from sales of property and equipment


14,225


--

Capitalization of software development costs


(1,529,177)


(844,448)

  Net cash used in investing activities


(1,529,409)


(854,260)






Financing activities:





    Principal repayments on term loan


(298,492)


(813,197)

    Principal payments on capital lease obligations


--


(68,149)

Payments related to settlement of employee shared-based awards


(57,699)


(37,002)

Proceeds from exercise of stock options and stock purchase plan


35,388


--

  Net cash used in financing activities


(320,803)


(918,348)

Net decrease in cash and cash equivalents


(1,373,439)


(2,737,634)

Cash and cash equivalents at beginning of year


4,619,834


5,654,093

Cash and cash equivalents at end of year

$

3,246,395

$

2,916,459






 

STREAMLINE HEALTH SOLUTIONS, INC.

Backlog

(Unaudited)

Table A




July 31,
2018


January 31,
2018


July 31,
2017

Streamline Health Software Licenses

$

53,000

$

984, 000

$

11,458,000

Hardware and Third Party Software


--


--


50,000

Professional Services


1,867,000


2,048,000


3,517,000

Audit Services


1,019,000


1,293,000


1,454,000

Maintenance and Support


11,489,000


15,420,000


16,583,000

Software as a Service


8,936,000


13,048,000


13,300,000

    Total

$

23,364,000

$

32,793,000

$

46,362,000

 

STREAMLINE HEALTH SOLUTIONS, INC.

New Bookings

 (Unaudited)

Table B




Three Months Ended



July 31, 2018



Value


% of
Total
Bookings

Streamline Health Software licenses

$

308,000


16%

Software as a service


756,000


40%

Maintenance and support


374,000


20%

Professional services


433,000


23%

Audit Services


33,000


2%

Total bookings

$

1,904,000


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, and professional and advisory fees.

 

Reconciliation of net earnings (loss) to non-GAAP Adjusted EBITDA (in thousands):


(Unaudited)


Adjusted EBITDA Reconciliation


Three Months Ended,


Six Months Ended,



July 31, 2018


July 31, 2017


July 31, 2018


July 31, 2017

Net loss

$

(1,522)

$

(1,098)

$

(2,091)

$

(3,141)

    Interest expense


110


120


227


248

    Income tax benefit


2


3


3


5

    Depreciation


153


200


325


403

    Amortization of capitalized software development costs


331


572


646


1,144

    Amortization of intangible assets


235


333


470


666

    Amortization of other costs


91


43


193


126

EBITDA


(600)


173


(227)


(549)

    Share-based compensation expense


144


288


367


555

    Gain on disposal of fixed assets


--


--


(2)


(1)

    Non-cash valuation adjustments to assets and liabilities


5


23


56


40

    Loss on exit of operating lease


806


--


806


--

Adjusted EBITDA

$

355

$

484

$

1,000

$

45

Adjusted EBITDA per diluted share









Loss per share – diluted

$

(0.08)

$

(0.06)

$

(0.10)

$

(0.16)

Adjusted EBITDA per adjusted diluted share (1)

$

0.02

$

0.02

$

0.04

$

0.00










Diluted weighted average shares


19,971,090


19,834,859


19,978,757


19,765,125

    Includable incremental shares — Adjusted EBITDA (2)


3,053,210


3,378,484


3,064,204


3,322,319

Adjusted diluted shares


23,024,300


23,213,343


23,042,961


23,087,444



(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.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/streamline-health-reports-second-quarter-2018-revenues-of-5-3-million-1-5-million-net-loss-adjusted-ebitda-of-0-4-million-300710663.html

SOURCE Streamline Health, Inc.

This article was written by cool news network.

Get the latest news delivered to your inbox

Follow us on social media networks

PREV Sears Hometown and Outlet Stores, Inc. Reports Second Quarter 2018 Results
NEXT Liberty Tax Service Announces Fiscal Year 2018 Results