Second quarter 2021 Revenues of $2.9 million; ($0.1 million) Net Loss; ($0.8 million) Adjusted EBITDA
Atlanta, GA , Sept. 08, 2021 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (NASDAQ: STRM) (“Streamline”), provider of the eValuator™ Revenue Integrity Program to help healthcare providers proactively address revenue leakage and compliance exposure, today announced financial results for the second quarter of fiscal year 2021, which ended July 31, 2021.
Total revenues for the second quarter of fiscal 2021 were $2.9 million, consistent with the prior year period. SaaS revenue grew approximately 59%, compared to the same quarter a year ago. The consistent revenue volume during the quarter was the result of higher revenue from SaaS offset by lower revenue from professional services, software licenses and maintenance and support. Recurring revenue comprised 84% of second quarter fiscal 2021 revenue compared to 71% of second quarter fiscal 2020 revenue.
Net loss for the second quarter of fiscal 2021 was ($0.1 million) as compared to a net loss of ($1.1 million) during the second quarter of fiscal 2020. Second quarter fiscal 2021 net loss included $11,000 of income from discontinued operations of the Company’s legacy ECM business, the sale of which closed on February 24, 2020, compared to $28,000 of income from discontinued operations during the second quarter of fiscal 2020. Income from discontinued operations was offset by a loss from continuing operations for the three months ended July 31, 2021 and 2020 of ($0.1 million) and ($1.2 million), respectively. Loss from continuing operations for the three months ended July 31, 2021 included $2.3 million of income associated with loan forgiveness.
Adjusted EBITDA for the second quarter of fiscal 2021 was a loss of ($0.8 million), compared to an adjusted EBITDA loss of ($0.4 million) in the second quarter of fiscal 2020.
“As a result of our team’s execution to restructure and position Streamline for growth, we were thrilled to enter a new chapter with our recent acquisition of Avelead. Thanks to our focus on improved sales and customer success, we are ready to capitalize on our tremendous market opportunity while maintaining strong relationships with our existing customers.” stated Tee Green, President and Chief Executive Officer, Streamline.
“We believe that the Delta variant of COVID has delayed our reporting of successes on the sales side, however, it has not deterred our improving the systems and processes that enable the growth we are expecting. Today, we are more capable than ever of supporting our healthcare provider customers through pre-bill revenue cycle solutions to ensure their revenue integrity and improved financial performance.”
Highlights from the second quarter ended July 31, 2021 included:
| ● | Revenue for the second quarter of fiscal 2021 was $2.9 million; SaaS revenue grew 11%, sequentially, compared to the first quarter of fiscal 2021; | |
| ● | Loss from continuing operations for the second quarter of fiscal 2021 was ($0.1 million); | |
| ● | Adjusted EBITDA for the second quarter of fiscal 2021 was ($0.8 million); | |
| ● | Total bookings (total contract value) for the second quarter of fiscal 2021 were $1.6 million. |
Conference Call
The Company will conduct a conference call to review the results and to provide additional detail about its recent acquisition on Thursday, September 9, 2021 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 877-407-8291.
A replay of the conference call will be available from Thursday September 9, 2021 at 12:00 PM ET to Thursday, September 16, 2021 at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415 with conference ID 13722259. 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.
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, 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 illustrating this measure is included in this press release.
About Streamline
Streamline Health Solutions, Inc. (NASDAQ: STRM) is a leader in pre-bill revenue integrity solutions for healthcare providers. Our eValuator™ Revenue Integrity Program includes integrated solutions, technology-enabled services and analytics that drive compliant revenue and improved financial performance across the enterprise. 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 growth prospects, estimates of backlog, 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, 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.
Contact
Jacob Goldberger
Director, Investor Relations and FP&A
303-887-9625
Jacob.goldberger@streamlinehealth.net
STREAMLINE HEALTH SOLUTIONS, INC.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues: | ||||||||||||||||
| Software licenses | $ | - | $ | 215,000 | $ | 135,000 | $ | 215,000 | ||||||||
| Professional services | 30,000 | 160,000 | 108,000 | 312,000 | ||||||||||||
| Audit Services | 443,000 | 463,000 | 947,000 | 1,007,000 | ||||||||||||
| Maintenance and support | 1,087,000 | 1,228,000 | 2,144,000 | 2,486,000 | ||||||||||||
| Software as a service | 1,308,000 | 821,000 | 2,485,000 | 1,711,000 | ||||||||||||
| Total revenues | 2,868,000 | 2,887,000 | 5,819,000 | 5,731,000 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of software licenses | 143,000 | 125,000 | 279,000 | 202,000 | ||||||||||||
| Cost of professional services | 261,000 | 269,000 | 475,000 | 510,000 | ||||||||||||
| Cost of audit services | 376,000 | 373,000 | 765,000 | 733,000 | ||||||||||||
| Cost of maintenance and support | 80,000 | 182,000 | 166,000 | 368,000 | ||||||||||||
| Cost of software as a service | 578,000 | 403,000 | 1,188,000 | 808,000 | ||||||||||||
| Selling, general and administrative | 2,515,000 | 2,284,000 | 5,068,000 | 4,576,000 | ||||||||||||
| Research and development | 964,000 | 509,000 | 1,941,000 | 1,193,000 | ||||||||||||
| Non-routine costs | 336,000 | - | 777,000 | - | ||||||||||||
| Loss on exit of membership agreement | - | - | - | 105,000 | ||||||||||||
| Total operating expenses | 5,253,000 | 4,145,000 | 10,659,000 | 8,495,000 | ||||||||||||
| Operating loss | (2,385,000 | ) | (1,258,000 | ) | (4,840,000 | ) | (2,764,000 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (9,000 | ) | (13,000 | ) | (22,000 | ) | (27,000 | ) | ||||||||
| Miscellaneous expense | (8,000 | ) | (64,000 | ) | 6,000 | (82,000 | ) | |||||||||
| Forgiveness of PPP loan and accrued interest | 2,327,000 | - | 2,327,000 | - | ||||||||||||
| Loss before income taxes | (75,000 | ) | (1,335,000 | ) | (2,529,000 | ) | (2,873,000 | ) | ||||||||
| Income tax benefit (expense) | 4,000 | 172,000 | (5,000 | ) | 733,000 | |||||||||||
| Loss from continuing operations | $ | (71,000 | ) | $ | (1,163,000 | ) | $ | (2,534,000 | ) | $ | (2,140,000 | ) | ||||
| Income from discontinued operations: | ||||||||||||||||
| Gain on sale of discontinued operations | - | 4,000 | - | 6,013,000 | ||||||||||||
| Income from discontinued operations | 11,000 | 104,000 | 332,000 | 241,000 | ||||||||||||
| Income tax expense | - | (80,000 | ) | - | (1,576,000 | ) | ||||||||||
| Income from discontinued operations | 11,000 | 28,000 | 332,000 | 4,678,000 | ||||||||||||
| Net (loss) income | $ | (60,000 | ) | $ | (1,135,000 | ) | $ | (2,202,000 | ) | $ | 2,538,000 | |||||
| Basic Earnings per Share: | ||||||||||||||||
| Continuing operations | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.07 | ) | ||||
| Discontinued operations | 0.00 | 0.00 | 0.01 | 0.16 | ||||||||||||
| Net (loss) income | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | 0.09 | |||||
| Weighted average number of common shares - basic | 41,288,709 | 30,026,658 | 39,393,333 | 29,897,236 | ||||||||||||
| Diluted Earnings per Share: | ||||||||||||||||
| Continuing operations | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.07 | ) | ||||
| Discontinued operations | 0.00 | 0.00 | 0.01 | 0.15 | ||||||||||||
| Net (loss) income | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | 0.08 | |||||
| Weighted average number of common shares – diluted | 41,737,231 | 30,421,473 | 39,960,998 | 30,229,595 | ||||||||||||
STREAMLINE HEALTH SOLUTIONS, INC.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Unaudited)
| July 31, | January 31, | |||||||
| 2021 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 15,847,000 | $ | 2,409,000 | ||||
| Accounts receivable, net | 2,625,000 | 2,929,000 | ||||||
| Contract receivables | 236,000 | 174,000 | ||||||
| Prepaid and other current assets | 788,000 | 1,216,000 | ||||||
| Current assets from discontinued operations | 181,000 | 587,000 | ||||||
| Total current assets | 19,677,000 | 7,315,000 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 76,000 | 104,000 | ||||||
| Right of use asset on operating lease | 306,000 | 391,000 | ||||||
| Capitalized software development costs, net | 5,667,000 | 5,945,000 | ||||||
| Intangible assets, net | 393,000 | 624,000 | ||||||
| Goodwill | 10,712,000 | 10,712,000 | ||||||
| Other non-current assets | 1,003,000 | 873,000 | ||||||
| Long-term assets from discontinued operations | 3,000 | 13,000 | ||||||
| Total non-current assets | 18,160,000 | 18,662,000 | ||||||
| $ | 37,837,000 | $ | 25,977,000 | |||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 363,000 | $ | 272,000 | ||||
| Accrued expenses | 1,324,000 | 908,000 | ||||||
| Current portion of term loan | - | 1,534,000 | ||||||
| Deferred revenues | 4,474,000 | 3,862,000 | ||||||
| Current portion of operating lease obligation | 201,000 | 198,000 | ||||||
| Current liabilities from discontinued operations | 283,000 | 595,000 | ||||||
| Total current liabilities | 6,645,000 | 7,369,000 | ||||||
| Non-current liabilities: | ||||||||
| Term loan, net of current portion | - | 767,000 | ||||||
| Deferred revenues, less current portion | 163,000 | 130,000 | ||||||
| Operating Lease obligations, less current portion | 129,000 | 222,000 | ||||||
| Total non-current liabilities | 292,000 | 1,119,000 | ||||||
| Total liabilities | 6,937,000 | 8,488,000 | ||||||
| Stockholders’ equity | 30,900,000 | 17,489,000 | ||||||
| $ | 37,837,000 | $ | 25,977,000 | |||||
STREAMLINE HEALTH SOLUTIONS, INC.
CONSOLIDATED AND CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
| Six Months Ended | ||||||||
| July 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from continuing operating activities: | ||||||||
| Loss from continuing operations | $ | (2,534,000 | ) | $ | (2,140,000 | ) | ||
| Depreciation | 37,000 | 31,000 | ||||||
| Amortization of capitalized software development costs | 984,000 | 651,000 | ||||||
| Amortization of intangible assets | 231,000 | 247,000 | ||||||
| Amortization of other deferred costs | 242,000 | 153,000 | ||||||
| Valuation adjustments | - | 31,000 | ||||||
| Loss on exit of membership agreement | - | 105,000 | ||||||
| Share-based compensation expense | 1,122,000 | 575,000 | ||||||
| Benefit for accounts receivable allowance | (1,000 | ) | (15,000 | ) | ||||
| Forgiveness of PPP Loan and accrued interest | (2,327,000 | ) | - | |||||
| Benefit for income taxes | - | (733,000 | ) | |||||
| Changes in assets and liabilities | 709,000 | (876,000 | ) | |||||
| Net cash used in operating activities | (1,537,000 | ) | (1,971,000 | ) | ||||
| Net cash from operating activities - discontinued operations | 436,000 | (2,374,000 | ) | |||||
| Cash flows used in investing activities: | ||||||||
| Capitalization of software development costs | (706,000 | ) | (1,094,000 | ) | ||||
| Purchases of property and equipment | (3,000 | ) | (34,000 | ) | ||||
| Proceeds from sale of ECM assets | 800,000 | 11,288,000 | ||||||
| Net cash provided by investing activities | 91,000 | 10,160,000 | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock | 16,100,000 | - | ||||||
| Payments for costs directly attributable to the issuance of common stock | (1,318,000 | ) | - | |||||
| Proceeds from term loan | - | 2,301,000 | ||||||
| Principal payments on term loan | - | (4,000,000 | ) | |||||
| Other | (334,000 | ) | (58,000 | ) | ||||
| Net cash provided by (used in) financing activities | 14,448,000 | (1,757,000 | ) | |||||
| Net increase in cash and cash equivalents | 13,438,000 | 4,058,000 | ||||||
| Cash and cash equivalents at beginning of period | 2,409,000 | 1,649,000 | ||||||
| Cash and cash equivalents at end of period | $ | 15,847,000 | $ | 5,707,000 | ||||
STREAMLINE HEALTH SOLUTIONS, INC.
New Bookings
(Unaudited)
| July 31, 2021 | ||||||||
| Three Months Ended | Six Months Ended | |||||||
| Software licenses | $ | - | 135,000 | |||||
| Professional Services | 149,950 | 348,950 | ||||||
| Audit Services | 21,800 | 407,800 | ||||||
| Maintenance and Support | - | 135,000 | ||||||
| Software as a Service | 1,455,000 | 3,180,000 | ||||||
| Q2 2021 Bookings | $ | 1,626,750 | $ | 4,206,750 | ||||
| Q2 2020 Bookings | $ | 2,865,000 | $ | 4,150,000 | ||||
STREAMLINE HEALTH SOLUTIONS, INC.
Reconciliation of loss from continuing operations to non-GAAP Adjusted EBITDA
(in thousands)
(Unaudited)
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Loss from continuing operations | $ | (71 | ) | $ | (1,163 | ) | $ | (2,534 | ) | $ | (2,140 | ) | ||||
| Interest expense | 9 | 13 | 22 | 27 | ||||||||||||
| Income tax (benefit) expense | (4 | ) | (172 | ) | 5 | (733 | ) | |||||||||
| Depreciation | 16 | 17 | 37 | 31 | ||||||||||||
| Amortization of capitalized software development costs | 478 | 362 | 984 | 651 | ||||||||||||
| Amortization of intangible assets | 116 | 124 | 231 | 247 | ||||||||||||
| Amortization of other costs | 126 | 78 | 242 | 153 | ||||||||||||
| EBITDA | 670 | (741 | ) | (1,013 | ) | (1,764 | ) | |||||||||
| Share-based compensation expense | 557 | 349 | 1,122 | 613 | ||||||||||||
| Non-cash valuation adjustments | - | 14 | - | 31 | ||||||||||||
| Loss on exit of operating lease | - | - | - | 105 | ||||||||||||
| Other non-recurring operating expenses | 336 | - | 793 | - | ||||||||||||
| Forgiveness of PPP Loan and accrued interest | (2,327 | ) | - | (2,327 | ) | - | ||||||||||
| Adjusted EBITDA | $ | (764 | ) | $ | (378 | ) | $ | (1,425 | ) | $ | (1,015 | ) | ||||
| Adjusted EBITDA per diluted share: | ||||||||||||||||
| Net loss per common share – diluted | $ | (0.00 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | 0.08 | |||||
| Adjusted EBITDA per adjusted diluted share | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | ||||
| Diluted weighted average shares | 41,288,709 | 30,026,658 | 39,393,333 | 29,897,236 | ||||||||||||
| Includable incremental shares — Adjusted EBITDA | 448,522 | 394,815 | 567,665 | 332,359 | ||||||||||||
| Adjusted diluted shares | 41,737,231 | 30,421,473 | 39,960,998 | 30,229,595 | ||||||||||||
