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Streamline Health® Reports Fiscal First Quarter 2022 Financial Results

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Streamline Health Solutions, Inc.
Streamline Health Solutions, Inc.

101% Year-Over-Year Increase in First Quarter Revenues to $5.9 Million; 141% SaaS Revenue Growth; Record $8.0 Million in New SaaS Bookings

Atlanta, GA, June 08, 2022 (GLOBE NEWSWIRE) -- 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, which ended April 30, 2022.

Fiscal First Quarter 2022 Financial Results
The following financial results have been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Fiscal first quarter 2022 financial results represent the consolidation of the Company with Avelead Consulting, LLC (“Avelead”), which was acquired in the fiscal third quarter 2021. Fiscal first quarter 2021 GAAP financial results do not reflect results from Avelead’s operations.

Total revenues for the first quarter of fiscal 2022 were $5.9 million, a 101% increase from $3.0 million during the first quarter of fiscal 2021. The increase in revenue for the quarter was the result of higher revenue from SaaS and professional services driven by the Avelead acquisition and an increase in live clients using the Company’s eValuator product. Recurring revenue comprised 66% of total revenue for the three-month period ended April 30, 2022, as compared to 76% for the comparable prior year period. On a dollar basis, recurring revenue increased $1.7 million or 76% from the comparable prior year period.

The Company is focused on the growth of its SaaS solutions. During the first quarter of 2022, SaaS revenue grew $1.7 million or 141% compared to the first quarter of 2021.

Net loss for the first quarter of fiscal 2022 was ($2.8) million, as compared to a net loss of ($2.1) million during the first quarter of fiscal 2021. Net loss in the first quarter of fiscal 2022 included $0.1 million of non-routine costs and other income of $0.5 million primarily related to the acquisition of Avelead. The Company’s net loss in the first quarter of 2022 was also impacted by operating expenses and amortization expenses from the Avelead acquisition.

Adjusted EBITDA for the first quarter of fiscal 2022 was a loss of ($1.7) million, compared to an adjusted EBITDA loss of ($0.7) million in the first quarter of fiscal 2021.

Fiscal First Quarter 2022 Financial Results Compared to Fiscal First Quarter 2021 (Pro Forma)
The following financial results for Fiscal 2021 are pro forma and have not been prepared in accordance with GAAP. These pro forma financial results represent the consolidation of the Company with Avelead as if Avelead’s operations were fully recognized during the comparable period.

Consolidated revenue for the first quarter of fiscal 2022 was $5.9 million, an increase of 7% compared to pro forma revenue of approximately $5.5 million for the first quarter of fiscal 2021. SaaS revenue comprised $2.8 million of this total, up 5% from pro forma revenue of approximately $2.7 million for the first quarter of fiscal 2021. Consolidated revenue of $5.9 million for the three months ended April 30, 2022 includes $2.6 million of revenue from Avelead. The pro forma revenue of approximately $5.5 million for the first quarter of fiscal 2021 includes $2.5 million of revenue from Avelead pre-acquisition.

Management Commentary
“This expansion of our SaaS bookings in the first quarter is the result of strategic actions we have taken to position our SaaS businesses for long-term growth,” said Tee Green, President and Chief Executive Officer, Streamline Health. “Led by our acquisition of Avelead last August and augmented by our investment into eValuator’s direct salesforce, SaaS bookings in the first quarter of fiscal 2022 increased to $8.0 million. Our significant bookings improvement in the first quarter was largely due to a 10-year booking, our largest ever SaaS booking. We continue to expect an average SaaS bookings performance of $3 million to $5 million per quarter for the duration of fiscal 2022, setting the stage for continued, rapid revenue growth in the coming years. With market conditions improving, healthcare providers are increasingly seeing the value of eValuator and RevID to help capture 100% of the revenue they’ve earned and improve their financial performance.”

Highlights from the first quarter ended April 30, 2022, included:

  • Total bookings (total contract value) for the first quarter of fiscal 2022 were a record $8.9 million;

  • Revenue for the first quarter of fiscal 2022 was $5.9 million;

  • First quarter SaaS GAAP revenue increased 141% over the prior year period;

  • Net loss for the first quarter of fiscal 2022 was ($2.8 million); and

  • Adjusted EBITDA for the first quarter of fiscal 2022 was a loss of ($1.7) million.

Conference Call
The Company will conduct a conference call on Thursday, June 9, 2022 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 Thursday, June 9, 2022, at 12:00 PM ET to Thursday, June 16, 2022 at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415 with conference ID 13730219. 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.

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 and anticipated bookings, industry trends and market growth, 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, 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 Goldberger
Director, Investor Relations and FP&A
303-887-9625
Jacob.goldberger@streamlinehealth.net

STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, rounded to the nearest thousand dollars, except share and per share information)

 

 

Three Months Ended

 

 

April 30

 

 

 

2022

 

 

 

2021

 

Total Revenue

 

$

5,935,000

 

 

$

2,951,000

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

3,209,000

 

 

 

1,437,000

 

Selling, general and administrative expense

 

 

4,501,000

 

 

 

2,551,000

 

Research and development

 

 

1,312,000

 

 

 

977,000

 

Non-routine costs

 

 

90,000

 

 

 

441,000

 

Total operating expenses

 

 

9,112,000

 

 

 

5,406,000

 

Operating loss

 

 

(3,177,000

)

 

 

(2,455,000

)

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(132,000

)

 

 

(13,000

)

Other

 

 

533,000

 

 

 

15,000

 

Loss from continuing operations before income taxes

 

 

(2,776,000

)

 

 

(2,453,000

)

Income tax expense

 

 

(11,000

)

 

 

(9,000

)

Loss from continuing operations

 

 

(2,787,000

)

 

 

(2,462,000

)

Income from discontinued operations:

 

 

 

 

 

 

 

 

Income from discontinued operations

 

 

 

 

 

320,000

 

Income from discontinued operations, net of tax

 

 

 

 

 

 

320,000

 

Net loss

 

$

(2,787,000

)

 

$

(2,142,000

)

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.06

)

 

$

(0.07

)

Discontinued operations

 

 

 

 

 

0.01

 

Net (loss) income

 

$

(0.06

)

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

47,028,463

 

 

 

37,497,958

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.06

)

 

$

(0.07

)

Discontinued operations

 

 

 

 

 

0.01

 

Net income

 

$

(0.06

)

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - diluted

 

 

47,285,961

 

 

 

38,184,765

 

STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Unaudited, rounded to the nearest thousand dollars, except share and per share information)

 

 

As of

 

 

 

April 30, 2022

 

 

January 31, 2022

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,955,000

 

 

$

9,885,000

 

Accounts receivable, net

 

 

4,660,000

 

 

 

3,823,000

 

Contract receivables

 

 

671,000

 

 

 

843,000

 

Prepaid and other current assets

 

 

423,000

 

 

 

568,000

 

Total current assets

 

 

13,709,000

 

 

 

15,119,000

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

109,000

 

 

 

123,000

 

Right of use asset

 

 

173,000

 

 

 

218,000

 

Capitalized software development costs, net

 

 

5,645,000

 

 

 

5,555,000

 

Intangible assets, net

 

 

16,235,000

 

 

 

16,763,000

 

Goodwill

 

 

23,089,000

 

 

 

23,089,000

 

Other

 

 

1,002,000

 

 

 

948,000

 

Total non-current assets

 

 

46,253,000

 

 

 

46,696,000

 

Total assets

 

$

59,962,000

 

 

$

61,815,000

 




 

As of

 

 

 

April 30, 2022

 

 

January 31, 2022

 

 

 

(Unaudited)

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,013,000

 

 

$

778,000

 

Accrued expenses

 

 

2,655,000

 

 

 

1,803,000

 

Current portion of term loan

 

 

375,000

 

 

 

250,000

 

Deferred revenues

 

 

6,060,000

 

 

 

5,794,000

 

Current portion of lease obligation

 

 

188,000

 

 

 

204,000

 

Acquisition earnout liability

 

 

4,715,000

 

 

 

4,672,000

 

Total current liabilities

 

 

15,006,000

 

 

 

13,501,000

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Term loan, net of current portion and DFC

 

 

9,549,000

 

 

 

9,654,000

 

Deferred revenues, less current portion

 

 

141,000

 

 

 

136,000

 

Lease obligations, less current portion

 

 

-

 

 

 

33,000

 

Acquisition earnout liability, less current portion

 

 

3,618,000

 

 

 

4,161,000

 

Other non-current liabilities

 

 

206,000

 

 

 

286,000

 

Total non-current liabilities

 

 

13,514,000

 

 

 

14,270,000

 

Total liabilities

 

 

28,520,000

 

 

 

27,771,000

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

481,000

 

 

 

478,000

 

Additional paid in capital

 

 

119,407,000

 

 

 

119,225,000

 

Accumulated deficit

 

 

(85,659,000

)

 

 

(79,117,000

)

Net Loss

 

 

(2,787,000

)

 

 

(6,542,000

)

Total stockholders' equity

 

 

31,442,000

 

 

 

34,044,000

 

Total liabilities and stockholders' equity

 

$

59,962,000

 

 

$

61,815,000

 

STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED AND CONDENSED STATEMENT OF CASH FLOWS
(Unaudited, rounded to the nearest thousand dollars, except share information)

 

 

Three months Ended April 30,

 

 

 

2022

 

 

2021

 

Net Loss

 

$

(2,787,000

)

 

$

(2,142,000

)

LESS: Income from discontinued operations, net of tax

 

 

 

 

 

320,000

 

Loss from continuing operations, net of tax

 

 

(2,787,000

)

 

 

(2,462,000

)

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

14,000

 

 

 

21,000

 

Amortization of capitalized software development costs

 

 

429,000

 

 

 

506,000

 

Amortization of intangible assets

 

 

528,000

 

 

 

115,000

 

Amortization of other deferred costs

 

 

112,000

 

 

 

116,000

 

Amortization of deferred financing costs

 

 

20,000

 

 

 

 

Change in fair value of acquisition earnout liability

 

 

(500,000

)

 

 

 

Share-based compensation expense

 

 

326,000

 

 

 

565,000

 

Provision for accounts receivable allowance

 

 

13,000

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts and contract receivables

 

 

(678,000

)

 

 

(341,000

)

Other assets

 

 

8,000

 

 

 

(275,000

)

Accounts payable

 

 

235,000

 

 

 

(29,000

)

Accrued expenses and other liabilities

 

 

739,000

 

 

 

145,000

 

Deferred revenue

 

 

271,000

 

 

 

1,161,000

 

Net cash used in operating activities

 

 

(1,270,000

)

 

 

(478,000

)

Net cash used in operating activities – discontinued operations

 

 

 

 

 

(560,000

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capitalization of software development costs

 

 

(519,000

)

 

 

(378,000

)

Net cash used in investing activities

 

 

(519,000

)

 

 

(378,000

)

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

 

 

 

 

 

(1,293,000

)

Payments related to settlement of employee share-based awards

 

 

(141,000

)

 

 

(161,000

)

Payment for deferred financing costs

 

 

 

 

 

(31,000

)

Other

 

 

 

 

 

(1,000

)

Net cash (used in) provided by financing activities

 

 

(141,000

)

 

 

14,614,000

 

Net (decrease) increase in cash and cash equivalents

 

 

(1,930,000

)

 

 

14,318,000

 

Cash and cash equivalents at beginning of period

 

 

9,885,000

 

 

 

2,409,000

 

Cash and cash equivalents at end of period

 

$

7,955,000

 

 

$

16,727,000

 


STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARIES
New Bookings
(Unaudited)

 

 

Three Months Ended

 

 

April 30 2022

Professional Services

$

839,000

Software as a Service (1)

 

8,024,000

Q1 2022 Bookings

$

8,863,000

Q1 2021 Bookings (2)

$

2,580,000

(1) Amounts include a single, 10-year contracted booking for RevID under the Company’s VAR with Cerner.
(2) Q1 2021 Bookings exclude Avelead as it was not acquired until August 16, 2021

STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARIES
Reconciliation of Loss from Continuing Operations to non-GAAP Adjusted EBITDA
(Unaudited, rounded to nearest thousand dollars, except share and per shares information)

 

 

Three Months Ended

 

 

April 30, 2022

January 31, 2022

Adjusted EBITDA Reconciliation

 

 

 

 

Loss from continuing operations

 

$

(2,787,000

)

(2,462,000

)

Interest expense

 

 

132,000

 

13,000

 

Income tax expense

 

 

11,000

 

9,000

 

Depreciation

 

 

14,000

 

21,000

 

Amortization of capitalized software development costs

 

 

429,000

 

506,000

 

Amortization of intangible assets

 

 

528,000

 

115,000

 

Amortization of other costs

 

 

112,000

 

116,000

 

EBITDA

 

$

(1,561,000

)

(1,682,000

)

Share-based compensation expense

 

 

326,000

 

565,000

 

Non-cash fair value adjustments

 

 

(500,000

)

-

 

Non-routine costs

 

 

90,000

 

441,000

 

Other non-recurring operating (income) expenses

 

 

(48,000

)

16,000

 

Adjusted EBITDA

 

$

(1,693,000

)

(660,000

)

Adjusted EBITDA margin

 

 

-29

%

-22

%

 

 

 

 

 

Adjusted EBITDA per Diluted Share Reconciliation

 

 

 

 

Loss from continuing operations per common share — diluted

 

$

(0.06

)

(0.07

)

Net loss per common share — diluted

 

$

(0.06

)

(0.06

)

Adjusted EBITDA per adjusted diluted share

 

$

(0.04

)

(0.02

)

 

 

 

 

 

Basic weighted average shares

 

 

47,028,463

 

37,497,958

 

Includable incremental shares — adjusted EBITDA

 

 

257,498

 

686,807

 

Adjusted diluted shares

 

 

47,285,961

 

38,184,765