Streamline Health® Solutions Reports Q1 Results

CINCINNATI, June 7, 2012 /PRNewswire/ -- Streamline Health Solutions, Inc. (Nasdaq: STRM) today announced financial results for the first quarter of fiscal year 2012, ended April 30, 2012.

Highlights for the quarter included:

  • Achieved net profit of $492,000;
  • Adjusted EBITDA for first quarter 2012 was $1.7 million an increase of 172%  over first quarter 2011;
  • Recurring maintenance revenues improved by 13% over the prior comparable quarter;
  • Software as a service (SaaS) revenues for the quarter increased 22% over the prior comparable quarter, excluding $490,000 of incremental SaaS revenue from the acquired operations of Interpoint Partners;
  • New sales bookings for the quarter were $4.4 million;
  • Maintenance and SaaS contract renewals for the quarter were $3.1 million;
  • Backlog at the end of the quarter was $31.4 million, which was a 78% increase from the first quarter of 2011;

Revenues for the three month period ended April 30, 2012, were $5,445,000; as compared to $4,140,000 in the comparable period of fiscal 2011.  The quarterly and year to date increase was primarily attributable to revenues provided by increases in recurring maintenance and SaaS revenues.

The former Interpoint Partners, LLC business, acquired in the fourth quarter of fiscal 2011, contributed an incremental $490,000 in SaaS revenue in the first quarter of fiscal 2012. Recurring revenues from SaaS (net of Interpoint incremental revenues) and maintenance increased $203,000 and $275,000, respectively. These increases are due to annual increases, expansion of services to current clients, and additional revenue from a client that has transitioned to a direct relationship with Streamline Health.

Operating expenses for the three-month period ending April 30, 2012 were $4,773,000, compared to $4,394,000 in the comparable prior year period; an increase of $379,000 or 9% over the prior year comparable period.

As a result, Streamline Health recorded an operating profit of $672,000 or $0.07 per fully diluted share, for the three month period ended April 30, 2012 compared with an operating loss of $254,000, or ($0.03) per fully diluted share, for the prior year comparable quarter. Adjusted EBITDA* (a non-GAAP measure) for the quarter ended April 30, 2012 was $1.7 million, or $0.17 per fully diluted common share, compared to $630,000, or $0.06 per fully diluted common share in the comparable prior year quarter. A reconciliation table is provided below.

New sales bookings for the fourth quarter were $4.4 million, primarily consisting of professional services, and software as a service contracts.  Maintenance and SaaS renewals or extensions were $3.1 million.

Backlog at April 30, 2012 was $31.4 million, compared with $27.4 million at January 31, 2012 and $17.7 million at April 30, 2011. The increase in the current backlog reflects significant new SaaS contract signings as well as current clients purchasing additional solutions.  Additions to backlog included a five year agreement with Boston Medical Center to extend the use of our business analytics and patient financial services solutions, a renewal for a new five year agreement with Bronx-Lebanon Hospital Center, which was also transitioned to a direct agreement with Streamline Health; and a new SaaS agreement with Einstein Healthcare Network to employ our OpportunityAnyWare, ARWare, and 835 DenialWare solutions.

Robert E. Watson, President and Chief Executive Officer of Streamline Health said, "The results for the quarter, by every financial metric, clearly highlight that we are making meaningful progress in our transition to a results oriented healthcare information technology company.  Needless to say, we are pleased with our progress.  This quarter was a significant step forward in the transition process that began some fifteen months ago."

Mr. Watson continued, "Continuing the trend noted in previous quarters, we are also pleased with the transition, completed during the quarter, of Bronx-Lebanon Hospital Center to a 'direct client' and the extension of their agreement with us for an additional five years.   Also during the quarter, Einstein Healthcare Network, a ten-year client of our AccessAnyWare solution, purchased our OpportunityAnyWare solution for their clinic operations.  This was the first purchase of the former Interpoint Partners' solution by a Streamline Health client.  Additionally, the purchase by Boston Medical Center of the OpportunityAnyWare solution for their clinics is an example of our team's ability to upsell additional solutions in our installed base of clients. In conjunction with our continuing focus on managing operating expenses, we continue to make meaningful progress in our goal for Streamline Health to become a world-class healthcare information technology company."

* Non-GAAP Financial Measures
Streamline Health reports its financial results in accordance with generally accepted accounting principles in the United States ("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 these measures provide 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, and stock-based compensation expense.  A table illustrating this measure is included in this publication.

Conference Call Information
Streamline Health will conduct a conference call and webcast to review the results of the first quarter of fiscal 2012 today, June 7, 2012, at 11:00 a.m. ET.

Interested parties can access the call by dialing 877-407-8037, or listen via a live Internet webcast, which can be found at www.streamlinehealth.net or http://www.investorcalendar.com/IC/CEPage.asp?ID=168741.

In addition, a replay of the conference call will be archived and available until June 29, 2012 at the following number: 877-660-6853, account number: 396 and then conference ID: 395382.

About Streamline Health
Streamline Health provides solutions that help hospitals and physician groups improve efficiencies and business processes across the enterprise to enhance and protect revenues. Our enterprise content management solutions transform unstructured data into digital assets that seamlessly integrate with disparate clinical, administrative, and financial information systems. Our business analytics solutions provide real-time access to key performance metrics that enable healthcare organizations to identify and manage opportunities to maximize financial performance. Our integrated workflow systems automate and manage critical business activities to improve organizational accountability to drive both operational and financial performance. Across the revenue cycle, our solutions offer a flexible, customizable way to optimize the clinical and financial performance of any healthcare organization. For more information visit 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 risks and uncertainties. The forward looking statements contained herein 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. These risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell Streamline Health products, the ability of Streamline Health to control costs, availability of products produced 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 Accountings Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry, the markets in which Streamline Health operates and nationally, and Streamline Health'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. Streamline Health 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.

Financial Tables on Following Pages

STREAMLINE HEALTH SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS






Three Months ended April 30,



2012


2011

Revenues:





  Systems sales

$

353,530

$

131,002

  Professional services


1,122,439


1,007,054

  Maintenance and support


2,351,575


2,076,907

  Software as a service


1,617,589


925,059

        Total revenues


5,445,133


4,140,022






Operating expenses:





  Cost of systems sales


686,528


540,952

  Cost of professional services


552,482


736,543

  Cost of maintenance and support


725,281


597,328

  Cost of software as a service


682,306


436,423

  Selling, general and administrative


1,669,760


1,664,661

  Product research and development


456,363


417,774

        Total operating expenses


4,772,720


4,393,681

Operating income (loss)


672,413


(253,659)

Other income (expense):





  Interest expense


(207,830)


(19,842)

  Miscellaneous income (expense)


36,045


(4,955)

Earnings (loss) before income taxes


500,628


(278,456)

  Income tax expense


(9,000)


(2,315)

Net earnings (loss)

$

491,628

$

(280,771)

Basic net earnings (loss) per common share

$

0.05

$

(0.03)

Number of shares used in basic per common share computation


10,307,259


9,649,508

Diluted net earnings (loss) per common share

$

0.05

$

(0.03)

Number of shares used in diluted per common share computation


10,307,259


9,649,508











 

STREAMLINE HEALTH SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 

Assets








(Unaudited)
April 30, 2012


(Audited)
January 31, 2012






Current assets:





  Cash and cash equivalents

$

3,133,991

$

2,243,054

  Accounts receivable, net of allowance for doubtful





    accounts of $100,000 and $100,000, respectively


2,797,571


4,484,605

  Contract receivables


376,150


430,370

  Prepaid hardware and third party software for future delivery


22,777


38,193

  Prepaid client maintenance contracts


1,027,142


788,917

  Prepaid and other assets


564,523


256,104

  Deferred income taxes


167,000


167,000

        Total current assets


8,089,154


8,408,243






Non-current assets:





Property and equipment:





  Computer equipment


3,110,035


2,892,885

  Computer software


2,142,458


2,131,730

  Office furniture, fixtures and equipment


756,375


756,375

  Leasehold improvements


667,000


667,000



6,675,868


6,447,990

  Accumulated depreciation and amortization


(5,411,873)


(5,232,321)

 Property and equipment, net


1,263,995


1,215,669

 Contract receivables, less current portion


195,071


221,596

 Capitalized software development costs, net of accumulated





   amortization of $­­­15,447,914 and $14,805,236, respectively


9,694,496


9,830,175

 Intangible assets, net


414,166


417,666

 Deferred financing cost, net


126,169


145,857

 Goodwill


4,060,504


4,060,504

 Other, including deferred income taxes of $711,000, respectively


796,149


841,348

       Total non-current assets


16,550,550


16,732,815


$

24,639,704

$

25,141,058

 

STREAMLINE HEALTH SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 

Liabilities and Stockholders' Equity








(Unaudited)
April 30, 2012


(Audited)
January 31, 2012






Current liabilities:





  Accounts payable

$

1,033,137

$

879,027

  Accrued compensation


746,845


887,130

  Accrued other expenses


419,670


479,526

  Current portion of deferred revenues


5,374,246


6,496,938

        Total current liabilities


7,573,898


8,742,621






Non-current liabilities:





  Term loan


4,120,000


4,120,000

  Convertible note

 


3,000,000


3,000,000

  Contingent consideration for earn-out


1,232,720


1,232,720

  Lease incentive liability, less current portion


44,611


47,193

        Total non-current liabilities


8,397,331


8,399,913

        Total liabilities


15,971,229


17,142,534






Stockholders' equity:





  Convertible redeemable preferred stock, $.01 par value
    per share,
5,000,000 shares authorized, no shares issued


 

-


 

-

  Common stock, $.01 par value per share, 25,000,000
    shares 
authorized, and 10,433,716 shares issued and
    outstanding, respectively


 

 

104,338


 

 

104,338

  Additional paid in capital


38,539,303


38,360,980

  Accumulated deficit


(29,975,166)


(30,466,794)

        Total stockholders' equity


8,668,475


7,998,524


$

24,639,704

$

25,141,058

 

STREAMLINE HEALTH SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

Three Months Ended April 30,
(Unaudited)








2012


2011

Operating activities:





  Net earnings (loss)

$

491,628

$

(280,771)

  Adjustments to reconcile net earnings (loss) to net cash

    provided by (used in) operating activities:





    Depreciation and amortization


845,419


691,345

    Loss on disposal of equipment


-


26,666

    Stock-based compensation expense


178,323


196,967

  Change in assets and liabilities:





    Accounts, contract and installment receivables


1,767,779


1,042,191

    Other assets


(486,029)


(209,070)

    Accounts payable


154,110


26,388

    Accrued expenses


(202,723)


(857,965)

    Deferred revenues


(1,122,692)


(863,964)

  Net cash provided by (used in) operating activities


1,625,815


(228,213)






Investing activities:





  Purchases of property and equipment


(227,878)


(157,681)

  Capitalization of software development costs


(507,000)


(785,000)

  Net cash used in investing activities


(734,878)


(942,681)






Financing activities:





  Net change under revolving credit facility


-


300,000

 Payments on capital lease obligation


-


(51,338)

  Net cash provided by financing activities


-


248,662

Increase (decrease) in cash and cash equivalents


890,937


(922,232)

Cash and cash equivalents at beginning of period


2,243,054


1,403,949

Cash and cash equivalents at end of period

$

3,133,991

$

481,717

Supplemental cash flow disclosures:





  Interest paid

$

127,946

$

16,841

  Income taxes paid

$

6,920

$

11,897


STREAMLINE HEALTH SOLUTIONS, INC.
Backlog
(Unaudited)
Table A

Backlog









April 30, 2012


January 31, 2012


April 30, 2011

Streamline Health proprietary software

$

94,000

$

181,000

$

111,000

Hardware and third party software


140,000


194,000


107,000

Professional services


5,240,000


5,945,000


4,729,000

Maintenance and support


10,973,000


10,542,000


6,550,000

Software as a service


15,000,000


10,504,000


6,199,000

    Total

$

31,447,000

$

27,366,000

$

17,696,000

 

STREAMLINE HEALTH SOLUTIONS, INC.
Bookings
(Unaudited)
Table B

New bookings





Three Months Ended



April 30, 2012



Value


% of Total Bookings

Streamline Health Software licenses

$

50,000


1%

Software as a service


3,018,000


69%

Maintenance and support


62,000


1%

Professional services


958,000


22%

Hardware & third party software


307,000


7%

    Total bookings

$

4,395,000


100%

STREAMLINE HEALTH SOLUTIONS, INC.
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, Streamline Health 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.

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




Adjusted EBITDA Reconciliation


Three Months Ended,



April 30,
2012


April 30,
2011

Net earnings (loss)

$

492

$

(281)

    Interest expense


208


20

    Income tax expense 


9


2

    Depreciation


180


198

    Amortization of capitalized software  development  costs  


643


494

    Amortization of intangible assets


3


-

EBITDA


1,535


433

    Stock-based compensation expense


178


197

Adjusted EBITDA

$

1,713

$

630






Adjusted EBITDA per diluted share





Earnings (loss) per share - diluted

$

0.05

$

(0.03)

Adjusted EBITDA per adjusted diluted share

$

0.17

$

0.06






Diluted weighted average shares


10,307,259


9,649,508

    Includable incremental shares – adjusted EBITDA(1)


-


8,108

Adjusted diluted shares


10,307,259


9,657,616






(1) 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. If negative adjusted EBITDA is incurred, no additional incremental shares are assumed for adjusted diluted shares.

Visit our web site at: www.streamlinehealth.net

COMPANY CONTACT:                       

INVESTOR CONTACT:

Robert E. Watson                                

John Baldissera

Chief Executive Officer                     

BPC Financial Marketing

(513) 794-7100                                    

(800) 368-1217

SOURCE Streamline Health Solutions, Inc.



RELATED LINKS
http://www.streamlinehealth.net

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.