Streamline Health Solutions, Inc. (“Streamline” or
the “Company”) (Nasdaq: STRM), a leading provider of solutions that
enable healthcare providers to proactively address revenue leakage
and improve financial performance, today announced financial
results for the first quarter of fiscal 2023, which ended April 30,
2023.
Fiscal First
Quarter 2023
GAAP Financial ResultsTotal
revenue for the first quarter of fiscal 2023 was $5.3 million
compared to $5.9 million during the first quarter of fiscal 2022.
The change in revenue for the quarter was the result of higher
revenue from SaaS and significantly lower professional services
revenue. The Company had a large professional services contract not
renew at the end of its 2022 fiscal year. This professional
services contract is not expected to be part of the Company’s core
business going forward. During the first quarter of fiscal 2023,
SaaS revenue grew $0.3 million or 12% compared to the first quarter
of fiscal 2022.
Net loss for the first quarter of fiscal 2023
was ($2.9) million, compared to a net loss of ($2.8) million
during the first quarter of fiscal 2022.
Fiscal First
Quarter 2023
Non-GAAP Financial Results
Adjusted EBITDA for the first quarter of fiscal
2023 was ($1.3) million, in line with the first quarter of fiscal
2022. First quarter fiscal 2023 EBITDA adjustments included higher
share-based compensation expenses, lower non-cash valuation
adjustments and lower acquisition expenses as compared to fiscal
first quarter 2022 EBITDA adjustments.
As of April 30, 2023, the Company’s total Booked
SaaS Annual Contract Value (“ACV”) was $17.8 million compared to
Booked SaaS ACV of $17.2 million as of January 31, 2023. $5.1
million of the Company’s booked SaaS ACV was unimplemented as of
April 30, 2023. Booked SaaS ACV represents the annualized value of
all executed SaaS contracts, including contracts that have not been
fully implemented as of the measurement date, assuming any contract
that expires during the twelve months following the measurement
date is renewed on its existing terms unless the Company has
knowledge of the non-renewal.
Management Commentary
“We continue to execute against our growth and
other corporate goals in fiscal 2023. Our service and innovation
teams made significant strides during the first quarter to enable
the continued growth of our SaaS revenues, and we believe that our
current bookings, once implemented will provide sufficient revenue
to achieve breakeven adjusted EBITDA in the third quarter of fiscal
2023.” Stated Tee Green, Chief Executive Officer, Streamline
Health. “Health systems are increasingly excited about the
opportunity our solutions provide and our ability to ensure they
are accurately paid for all of the care they’ve provided.”
Conference Call
The Company will conduct a conference call on
Tuesday, June 13, 2023 at 9:00 AM ET to review results and provide
a corporate update. Interested parties can access the call by
joining the live webcast: click here to register. You can also join
by phone by dialing 877-407-8291.
A replay of the conference call will be
available from Tuesday, June 13, 2023, at 12:00 PM ET to Tuesday,
June 20, 2023 at 12:00 PM ET by dialing 877-660-6853 or
201-612-7415 with conference ID 13739290. An online replay of the
presentation will also be available for six months following the
presentation in the Investor Relations section of the Streamline
website, www.streamlinehealth.net.
About Streamline Health
Streamline Health Solutions, Inc. (Nasdaq: STRM)
enables healthcare organizations to proactively address revenue
leakage and improve financial performance. We deliver integrated
solutions, technology-enabled services and analytics that drive
compliant revenue leading to improved financial performance across
the enterprise. For more information, visit
www.streamlinehealth.net.
Non-GAAP Financial Measures
Streamline reports its financial results in
accordance with U.S. generally accepted accounting principles
(“GAAP”). Streamline’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’s management believes that this measure provides useful
supplemental information regarding the performance of Streamline’s
business operations.
Streamline defines “adjusted EBITDA” as net
earnings (loss) plus interest expense, tax expense, depreciation
and amortization expense of tangible and intangible assets,
share-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 “loss from continuing operations” is
included in this press release.
Booked SaaS ACV represents the annualized value
of all executed SaaS contracts, including contracts that have not
been fully implemented, as of the measurement date, assuming any
contract that expires during the twelve months following the
measurement date is renewed on its existing terms unless the
Company has knowledge of the non-renewal. Booked SaaS ACV should be
viewed independently of revenue and does not represent revenue
calculated in accordance with GAAP on an annualized basis, as it is
an operating metric that can be impacted by contract execution
start and end dates and renewal rates. Booked SaaS ACV is not
intended to be a replacement for, or forecast of, revenue. There is
no GAAP measure comparable to Booked SaaS ACV.
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 growth
prospects, estimates of anticipated cash flow generation,
anticipated bookings, recognition of revenue from contracts
included in Booked SaaS ACV, industry trends and market growth,
results of investments in sales and marketing, adjusted EBITDA,
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 and Booked
SaaS ACV, 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, the effects of
cost-containment measures implemented by the Company, 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, 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
Jacob GoldbergerDirector, Investor Relations and
FP&A303-887-9625Jacob.goldberger@streamlinehealth.net
STREAMLINE HEALTH SOLUTIONS,
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(rounded to the nearest thousand dollars,
except share and per share information)
|
|
Three Months Ended April 30, |
|
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software as a service |
|
$ |
3,175,000 |
|
|
$ |
2,831,000 |
|
Maintenance and support |
|
|
1,157,000 |
|
|
|
1,110,000 |
|
Professional fees and licenses |
|
|
1,000,000 |
|
|
|
1,994,000 |
|
Total revenues |
|
|
5,332,000 |
|
|
|
5,935,000 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Cost of software as a service |
|
|
1,589,000 |
|
|
|
1,497,000 |
|
Cost of maintenance and support |
|
|
89,000 |
|
|
|
46,000 |
|
Cost of professional fees and licenses |
|
|
1,108,000 |
|
|
|
1,666,000 |
|
Selling, general and administrative expense |
|
|
3,806,000 |
|
|
|
4,501,000 |
|
Research and development |
|
|
1,701,000 |
|
|
|
1,312,000 |
|
Acquisition-related costs |
|
|
35,000 |
|
|
|
90,000 |
|
Total operating expenses |
|
|
8,328,000 |
|
|
|
9,112,000 |
|
Operating loss |
|
|
(2,996,000 |
) |
|
|
(3,177,000 |
) |
Other (expense)
income: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(248,000 |
) |
|
|
(132,000 |
) |
Acquisition earnout valuation
adjustments |
|
|
364,000 |
|
|
|
500,000 |
|
Other |
|
|
32,000 |
|
|
|
33,000 |
|
Loss before income taxes |
|
|
(2,848,000 |
) |
|
|
(2,776,000 |
) |
Income tax expense |
|
|
(53,000 |
) |
|
|
(11,000 |
) |
Net loss |
|
$ |
(2,901,000 |
) |
|
$ |
(2,787,000 |
) |
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per
Share: |
|
|
|
|
|
|
|
|
Net loss per common share –
basic and diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
Weighted average number of
common shares – basic and diluted |
|
|
55,970,880 |
|
|
|
47,028,463 |
|
STREAMLINE HEALTH SOLUTIONS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS
(rounded to the nearest thousand dollars,
except share and per share information)
|
|
April 30, 2023 |
|
|
January 31, 2023 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,987,000 |
|
|
$ |
6,598,000 |
|
Accounts receivable, net of allowance for credit losses of $94,000
and $132,000, respectively |
|
|
4,280,000 |
|
|
|
7,719,000 |
|
Contract receivables |
|
|
535,000 |
|
|
|
960,000 |
|
Prepaid and other current assets |
|
|
717,000 |
|
|
|
710,000 |
|
Total current assets |
|
|
11,519,000 |
|
|
|
15,987,000 |
|
Non-current assets: |
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated amortization of $255,000
and $246,000 respectively |
|
|
99,000 |
|
|
|
79,000 |
|
Right-of use asset for operating lease |
|
|
— |
|
|
|
32,000 |
|
Capitalized software development costs, net of accumulated
amortization of $6,659,000 and $6,224,000, respectively |
|
|
5,838,000 |
|
|
|
5,846,000 |
|
Intangible assets, net of accumulated amortization of $3,077,000
and $2,627,000, respectively |
|
|
14,343,000 |
|
|
|
14,793,000 |
|
Goodwill |
|
|
23,089,000 |
|
|
|
23,089,000 |
|
Other |
|
|
1,598,000 |
|
|
|
1,695,000 |
|
Total non-current assets |
|
|
44,967,000 |
|
|
|
45,534,000 |
|
Total assets |
|
$ |
56,486,000 |
|
|
$ |
61,521,000 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
299,000 |
|
|
$ |
626,000 |
|
Accrued expenses |
|
|
2,505,000 |
|
|
|
3,265,000 |
|
Current portion of term loan |
|
|
875,000 |
|
|
|
750,000 |
|
Deferred revenues |
|
|
7,382,000 |
|
|
|
8,361,000 |
|
Current portion of operating lease obligation |
|
|
— |
|
|
|
35,000 |
|
Current portion of acquisition earnout liability |
|
|
3,374,000 |
|
|
|
3,738,000 |
|
Total current liabilities |
|
|
14,435,000 |
|
|
|
16,775,000 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Term loan, net of current portion and deferred financing costs |
|
|
8,742,000 |
|
|
|
8,964,000 |
|
Deferred revenues, less current portion |
|
|
104,000 |
|
|
|
167,000 |
|
Other non-current liabilities |
|
|
143,000 |
|
|
|
104,000 |
|
Total non-current liabilities |
|
|
8,989,000 |
|
|
|
9,235,000 |
|
Total liabilities |
|
|
23,424,000 |
|
|
|
26,010,000 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value per share, 85,000,000 shares
authorized; 58,636,411 and 57,567,210 shares issued and
outstanding, respectively |
|
|
586,000 |
|
|
|
576,000 |
|
Additional paid in capital |
|
|
132,379,000 |
|
|
|
131,973,000 |
|
Accumulated deficit |
|
|
(99,903,000 |
) |
|
|
(97,038,000 |
) |
Total stockholders’ equity |
|
|
33,062,000 |
|
|
|
35,511,000 |
|
Total liabilities and stockholders’ equity |
|
$ |
56,486,000 |
|
|
$ |
61,521,000 |
|
STREAMLINE HEALTH SOLUTIONS,
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Rounded to the nearest
thousand dollars)
|
|
Three Months Ended April 30, |
|
|
|
2023 |
|
|
2022 |
|
|
Net loss |
|
$ |
(2,901,000 |
) |
|
$ |
(2,787,000 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,059,000 |
|
|
|
1,103,000 |
|
|
Acquisition earnout valuation adjustments |
|
|
(364,000 |
) |
|
|
(500,000 |
) |
|
Provision for deferred income taxes |
|
|
39,000 |
|
|
|
— |
|
|
Share-based compensation expense |
|
|
572,000 |
|
|
|
326,000 |
|
|
Provision for credit losses |
|
|
— |
|
|
|
13,000 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts and contract receivables |
|
|
3,900,000 |
|
|
|
(678,000 |
) |
|
Other assets |
|
|
(15,000 |
) |
|
|
8,000 |
|
|
Accounts payable |
|
|
(327,000 |
) |
|
|
235,000 |
|
|
Accrued expenses and other liabilities |
|
|
(795,000 |
) |
|
|
739,000 |
|
|
Deferred revenue |
|
|
(1,042,000 |
) |
|
|
271,000 |
|
|
Net cash provided by (used in)
operating activities |
|
|
126,000 |
|
|
|
(1,270,000 |
) |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(29,000 |
) |
|
|
— |
|
|
Capitalization of software development costs |
|
|
(404,000 |
) |
|
|
(519,000 |
) |
|
Net cash used in investing
activities |
|
|
(433,000 |
) |
|
|
(519,000 |
) |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Repayment of bank term loan |
|
|
(125,000 |
) |
|
|
— |
|
|
Payments related to settlement of employee share-based awards |
|
|
(179,000 |
) |
|
|
(141,000 |
) |
|
Net cash used in financing
activities |
|
|
(304,000 |
) |
|
|
(141,000 |
) |
|
Net decrease in cash and cash
equivalents |
|
|
(611,000 |
) |
|
|
(1,930,000 |
) |
|
Cash and cash equivalents at
beginning of period |
|
|
6,598,000 |
|
|
|
9,885,000 |
|
|
Cash and cash equivalents at
end of period |
|
$ |
5,987,000 |
|
|
$ |
7,955,000 |
|
|
STREAMLINE HEALTH SOLUTIONS,
INC.NEW BOOKINGS
(Unaudited, rounded to the nearest
thousand dollars)
|
|
April 30, 2023 |
|
|
Three Months Ended |
Software as a service |
|
|
2,076,000 |
Maintenance and support |
|
|
- |
Professional fees and
licenses |
|
|
98,000 |
Q1 2023 Bookings |
|
$ |
2,174,000 |
Q1 2022 Bookings* |
|
$ |
8,863,000 |
*Amount includes a single, 10-year contracted booking for RevID
under the Company’s VAR with Cerner.
STREAMLINE HEALTH SOLUTIONS,
INC.RECONCILIATION OF NET LOSS TO NON-GAAP
ADJUSTED EBITDA
(Unaudited, in
thousands)
|
|
Three Months Ended |
|
|
|
April 30,2023 |
|
|
April 30,2022 |
|
Adjusted EBITDA
Reconciliation |
|
|
|
|
|
|
|
|
Loss from continuing
operations |
|
$ |
(2,901 |
) |
|
$ |
(2,787 |
) |
Interest expense |
|
|
248 |
|
|
|
132 |
|
Income tax expense |
|
|
53 |
|
|
|
11 |
|
Depreciation and amortization |
|
|
1,031 |
|
|
|
1,083 |
|
EBITDA |
|
$ |
(1,569 |
) |
|
$ |
(1,561 |
) |
Share-based compensation expense |
|
|
572 |
|
|
|
326 |
|
Non-cash valuation adjustments |
|
|
(364 |
) |
|
|
(500 |
) |
Acquisition-related cost, severance, and transaction-related
bonuses |
|
|
57 |
|
|
|
501 |
|
Other non-recurring expenses |
|
|
(33 |
) |
|
|
(48 |
) |
Adjusted EBITDA |
|
$ |
(1,337 |
) |
|
$ |
(1,282 |
) |
Streamline Health Soluti... (NASDAQ:STRM)
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