Market Overview

Streamline Health® Reports Third Quarter 2017 Revenues of $6.4 Million; Breakeven Net Income; Adjusted EBITDA of $1.5 Million

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ATLANTA, Dec. 12, 2017 /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 third quarter of fiscal 2017, which ended October 31, 2017.

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 October 31, 2017 decreased approximately 3% to $6.4 million over the revenues for the three-month period ended October 31, 2016 of $6.6 million, but increased approximately 8% over the second quarter of 2017. Recurring revenue comprised 79% of total revenue in the quarter.

Net income for the third quarter of fiscal 2017 was essentially breakeven ($3 thousand) as compared to a ($2.0 million) net loss in the same period a year ago.

Adjusted EBITDA for the third quarter of fiscal 2017 was $1.5 million, up from $0.2 million in the third quarter of 2016.

"Our third quarter financial performance improved from the second quarter primarily due to an increase in professional services and some recurring revenue as we experienced growth with existing clients in expanding the number of facilities utilizing our software.  During the quarter, we continued to attract new clients as we added six new clients to the Streamline family, and importantly closed four contracts for our new Streamline Health eValuator™ technology," stated David Sides, President and Chief Executive Officer, Streamline Health.  "Our bookings momentum continues to build, growing to $1.9 million in the third quarter as we realize some of the potential in our expanding pipeline of current clients and prospects, primarily around eValuator technology and Auditing Services. We are pleased to have closed our fifth new eValuator deal in the month of November and anticipate closing more new deals before our fiscal year end.

"Our balance sheet changed slightly from the second quarter of this year as our cash on hand decreased approximately $1 million while debt declined by approximately $100,000, but we continue to anticipate our cash balance climbing substantially by year end based on our quarterly cash cyclicality."

Highlights for the three months ended October 31, 2017 included:

  • Revenue for the third quarter 2017 was $6.4 million;
  • Net income for the third quarter 2017 was $3 thousand;
  • Adjusted EBITDA for the third quarter 2017 was $1.5 million;
  • New sales bookings for the quarter were $1.9 million; and
  • Backlog at the end of the quarter was $47.7 million.

Conference Call Information
An accompanying conference call will be hosted by David Sides, Chief Executive Officer and Nicholas Meeks, Senior Vice President and Chief Financial Officer. The call will be held at 9:00 AM ET, on Wednesday, December 13, 2017 and will be accompanied by a live webcast. Please refer to the information below for conference call dial-in information and webcast registration.

Conference Date: December 13, 2017, 9:00 AM ET

Webcast Registration: Click Here

Conference Dial-In: 866-548-4713

Conference Passcode: 1764102

Conference Call Name: Streamline Health Solutions Third Quarter 2017 Results Call

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 severance and related restructuring expenses, associate inducements, professional and advisory fees, and internal direct costs incurred to complete transactions. 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 – providing 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 estimates of future revenue, cash balances, 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


Nine Months Ended



October 31,


October 31



2017


2016


2017


2016

Revenues:









  Systems sales

$

348,526

$

314,218

$

1,055,941

$

2,190,256

  Professional services


801,771


630,961


1,793,618


1,869,656

  Audit Services


280,025


234,347


919,485


234,347

  Maintenance and support


3,250,229


3,749,596


9,883,563


11,237,637

  Software as a service


1,718,748


1,706,366


4,586,532


5,144,876

        Total revenues


6,399,299


6,635,488


18,239,139


20,676,772










Operating expenses:









  Cost of systems sales


434,138


663,148


1,596,988


2,080,263

  Cost of professional services


555,815


723,358


1,814,236


1,891,146

  Cost of Audit Services


404,280


595,575


1,236,358


595,575

  Cost of maintenance and support


667,307


790,291


2,241,969


2,483,462

  Cost of software as a service


289,503


450,695


914,711


1,390,308

  Selling, general and administrative


2,819,549


3,212,350


8,983,248


10,153,140

  Research and development


932,251


1,969,415


3,985,161


5,800,169

        Total operating expenses


6,102,843


8,404,832


20,772,671


24,394,063

Operating income (loss)


296,456


(1,769,344)


(2,533,532)


(3,717,291)

Other expense:









  Interest expense


(113,078)


(98,871)


(360,723)


(380,897)

  Miscellaneous expense


(177,282)


(60,555)


(235,007)


(39,089)

Earnings (loss) before income taxes


6,096


(1,928,770)


(3,129,262)


(4,137,277)

  Income tax benefit (expense)


(2,607)


(1,702)


(7,822)


(5,104)

Net earnings (loss)

$

3,489

$

(1,930,472)

$

(3,137,084)

$

(4,142,381)

Less: deemed dividends on Series A
Preferred Shares


--


(72,710)


--


(875,935)

Net loss attributable to common
shareholders

$

3,489

$

(2,003,182)

$

(3,137,084)

$

(5,018,316)

Basic net loss per common share

$

--

$

(0.10)

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