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Streamline Health® Reports Fiscal Fourth Quarter and Full Year 2021 Financial Results
Fourth Quarter Revenues of $6.0 Million; 155% SaaS Revenue Growth;
Fiscal Fourth Quarter and Full Year 2021 Financial Results
The following financial results have been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Fiscal fourth quarter 2021 financial results represent the consolidation of the Company with Avelead Consulting, LLC (“Avelead”), which was acquired in the fiscal third quarter 2021. Fiscal fourth quarter and full year 2020 (GAAP) financial results do not reflect results from Avelead’s operations.
Total revenues for the fourth quarter of fiscal 2021 were
The Company is focused on the growth of its SaaS solutions. During the fourth quarter of 2021, SaaS revenue grew
Net loss for the fourth quarter of fiscal 2021 was (
Net loss for fiscal 2021 was
Adjusted EBITDA for the fourth quarter of fiscal 2021 was a loss of
Full Year 2021 Financial Results (Pro Forma)
The following financial results 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 both comparable periods.
Pro forma, unaudited, consolidated revenue for the fiscal year 2021 was approximately
Management Commentary
“Over the last twelve months, we’ve laid a foundation for the future that we believe has positioned our business for high-margin, recurring revenue growth. Between the acquisition of Avelead and the transformation of our eValuator sales and leadership teams, we believe Streamline is in a better position than ever to serve our healthcare partners and help improve their financial performance,” stated Tee Green President and Chief Executive Officer,
Highlights from the fourth quarter and fiscal year ended January 31, 2022, included:
- Revenue for the fourth quarter of fiscal 2021 was
$6.0 million ; - SaaS revenue for the fourth quarter of fiscal 2021 grew 155% compared to the fourth quarter of fiscal 2020;
- Net loss for the fourth quarter of fiscal 2021 was
$30,000 ; - Adjusted EBITDA for the fourth quarter of fiscal 2021 was a loss of
$(0.3) million ; - Total bookings (total contract value) for the fourth quarter of fiscal 2021 were
$1.3 million ; - Appointed
Amy Sebero as Chief Growth Officer, eValuator Solutions and promotedBen Stilwill to President & CEO, eValuator Solutions, strategic improvements designed to accelerate growth; - Expanded Avelead leadership team, adding Chief Technology Officer and Senior Vice President of Services.
Conference Call
The Company will conduct a conference call on
A replay of the conference call will be available from
About
Non-GAAP Financial Measures
Streamline reports its financial results in accordance with
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 and reconciling adjusted EBITDA to loss from continuing operations, the most comparable GAAP measure, is included in this press release.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made by
Company Contact
Director, Investor Relations and FP&A
303-887-9625
Jacob.goldberger@streamlinehealth.net
| CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
| (rounded to the nearest thousand dollars, except share and per share information) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Total Revenue | $ | 6,046,000 | $ | 2,974,000 | $ | 17,379,000 | $ | 11,346,000 | |||||
| Operating expenses: | |||||||||||||
| Cost of sales | 3,081,000 | 1,589,000 | 8,577,000 | 5,689,000 | |||||||||
| Selling, general and administrative expense | 3,424,000 | 1,706,000 | 11,931,000 | 8,565,000 | |||||||||
| Research and development | 1,502,000 | 987,000 | 4,782,000 | 2,933,000 | |||||||||
| Non-routine costs | 146,000 | - | 2,856,000 | - | |||||||||
| Loss on exit from membership agreement | - | - | - | 105,000 | |||||||||
| Total operating expenses | 8,153,000 | 4,282,000 | 28,146,000 | 17,292,000 | |||||||||
| Operating loss | (2,107,000 | ) | (1,308,000 | ) | (10,767,000 | ) | (5,946,000 | ) | |||||
| Other income (expense): | |||||||||||||
| Interest income (expense) | (129,000 | ) | (12,000 | ) | (236,000 | ) | (51,000 | ) | |||||
| Loss on Extinguishment of Debt | - | - | (43,000 | ) | - | ||||||||
| Other | 2,332,000 | 6,000 | 1,911,000 | (62,000 | ) | ||||||||
| PPP Loan Forgiveness | - | - | 2,327,000 | - | |||||||||
| Loss from continuing operations before income taxes | 96,000 | (1,314,000 | ) | (6,808,000 | ) | (6,059,000 | ) | ||||||
| Income tax (expense) benefit | (100,000 | ) | (276,000 | ) | (109,000 | ) | 1,260,000 | ||||||
| Loss from continuing operations | (4,000 | ) | (1,590,000 | ) | (6,917,000 | ) | (4,799,000 | ) | |||||
| Income from discontinued operations: | |||||||||||||
| Gain on sale of discontinued operations | - | - | - | 6,013,000 | |||||||||
| Income from discontinued operations | - | 51,000 | 401,000 | 356,000 | |||||||||
| Income tax (expense) benefit from discontinued operations | (26,000 | ) | 352,000 | (26,000 | ) | (1,274,000 | ) | ||||||
| (Loss) Income from discontinued operations, net of tax | (26,000 | ) | 403,000 | 375,000 | 5,095,000 | ||||||||
| Net (loss) income | $ | (30,000 | ) | $ | (1,187,000 | ) | $ | (6,542,000 | ) | $ | 296,000 | ||
| Basic Earnings Per Share: | |||||||||||||
| Continuing operations | $ | - | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.16 | ) | ||
| Discontinued operations | - | 0.01 | 0.01 | 0.17 | |||||||||
| Net (loss) income | $ | - | $ | (0.04 | ) | $ | (0.15 | ) | $ | 0.01 | |||
| Weighted average number of common shares - basic | 46,764,335 | 30,528,863 | 42,815,239 | 30,152,383 | |||||||||
| Diluted Earnings Per Share: | |||||||||||||
| Continuing operations | $ | - | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.16 | ) | ||
| Discontinued operations | - | 0.01 | 0.01 | 0.17 | |||||||||
| Net income | $ | - | $ | (0.04 | ) | $ | (0.15 | ) | $ | 0.01 | |||
| Weighted average number of common shares - diluted | 47,108,495 | 31,211,252 | 43,273,574 | 30,640,742 | |||||||||
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(rounded to the nearest thousand dollars, except share and per share information)
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,885,000 | $ | 2,409,000 | ||||
| Accounts receivable, net | 3,823,000 | 2,929,000 | ||||||
| Contract receivables | 843,000 | 174,000 | ||||||
| Assets held in escrow | — | 800,000 | ||||||
| Prepaid and other current assets | 568,000 | 416,000 | ||||||
| Current assets of discontinued operations | — | 587,000 | ||||||
| Total current assets | 15,119,000 | 7,315,000 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net of accumulated amortization | 123,000 | 104,000 | ||||||
| Right-of use asset for operating lease | 218,000 | 391,000 | ||||||
| Capitalized software development costs, net | 5,555,000 | 5,945,000 | ||||||
| Intangible assets, net | 16,763,000 | 624,000 | ||||||
| 23,089,000 | 10,712,000 | |||||||
| Other | 948,000 | 873,000 | ||||||
| Long-term assets of discontinued operations | — | 13,000 | ||||||
| Total non-current assets | 46,696,000 | 18,662,000 | ||||||
| Total assets | $ | 61,815,000 | $ | 25,977,000 | ||||
| 2022 | 2021 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 778,000 | $ | 272,000 | |||
| Accrued expenses | 1,803,000 | 908,000 | |||||
| Current portion of term loan, net of deferred financing costs | 250,000 | 1,534,000 | |||||
| Deferred revenues | 5,794,000 | 3,862,000 | |||||
| Current portion of operating lease obligation | 204,000 | 198,000 | |||||
| Current portion of acquisition earnout liability | 4,672,000 | — | |||||
| Current liabilities of discontinued operations | — | 595,000 | |||||
| Total current liabilities | 13,501,000 | 7,369,000 | |||||
| Non-current liabilities: | |||||||
| Term loan, net of current portion and deferred financing costs | 9,654,000 | 767,000 | |||||
| Deferred revenues, less current portion | 136,000 | 130,000 | |||||
| Operating lease obligations, less current portion | 33,000 | 222,000 | |||||
| Acquisition earnout liability, less current portion | 4,161,000 | — | |||||
| Other non-current liabilities | 286,000 | — | |||||
| Total non-current liabilities | 14,270,000 | 1,119,000 | |||||
| Total liabilities | 27,771,000 | 8,488,000 | |||||
| Stockholders’ equity: | |||||||
| Common stock | 478,000 | 316,000 | |||||
| Additional paid in capital | 119,225,000 | 96,290,000 | |||||
| Accumulated deficit | (85,659,000 | ) | (79,117,000 | ||||
| Total stockholders’ equity | 34,044,000 | 17,489,000 | |||||
| Total liabilities and stockholders’ equity | $ | 61,815,000 | $ | 25,977,000 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(rounded to the nearest thousand dollars, except share information)
| Fiscal Year | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (6,542,000 | ) | $ | 296,000 | |||
| LESS: Income from discontinued operations, net of tax | 375,000 | 5,095,000 | ||||||
| Loss from continuing operations, net of tax | (6,917,000 | ) | (4,799,000 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 68,000 | 64,000 | ||||||
| Amortization of capitalized software development costs | 1,848,000 | 1,662,000 | ||||||
| Amortization of intangible assets | 1,281,000 | 491,000 | ||||||
| Amortization of other deferred costs | 449,000 | 359,000 | ||||||
| Amortization of Deferred Financing Costs | 51,000 | — | ||||||
| Valuation adjustments | (1,851,000 | ) | 31,000 | |||||
| Loss on early extinguishment of debt | 43,000 | — | ||||||
| Provision (benefit) for income taxes | 95,000 | (1,274,000 | ) | |||||
| Loss on exit of operating lease | — | 105,000 | ||||||
| Share-based compensation expense | 2,216,000 | 1,403,000 | ||||||
| Provision (benefit) for accounts receivable allowance | 11,000 | (31,000 | ) | |||||
| Forgiveness of PPP Loan | (2,327,000 | ) | — | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts and contract receivables | (129,000 | ) | (253,000 | ) | ||||
| Other assets | (346,000 | ) | (519,000 | ) | ||||
| Accounts payable | 17,000 | (484,000 | ) | |||||
| Accrued expenses and other liabilities | 533,000 | (592,000 | ) | |||||
| Deferred revenues | 1,074,000 | 344,000 | ||||||
| Net cash used in operating activities – continuing operations | (3,884,000 | ) | (3,493,000 | ) | ||||
| Net cash provided by (used in) operating activities – discontinued operations | 380,000 | (2,264,000 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Investment in Avelead, net of cash acquired | (12,470,000 | ) | — | |||||
| Purchases of property and equipment | (41,000 | ) | (44,000 | ) | ||||
| Proceeds from sale of ECM assets | 800,000 | 11,288,000 | ||||||
| Capitalization of software development costs | (1,458,000 | ) | (1,784,000 | ) | ||||
| Net cash (used in) provided by investing activities – continuing operations | (13,169,000 | ) | 9,460,000 | |||||
| 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 | (1,313,000 | ) | — | |||||
| Repayment of bank term loan | — | (4,000,000 | ) | |||||
| Proceeds from term loan payable | 10,000,000 | 2,301,000 | ||||||
| Payments related to settlement of employee shared-based awards | (464,000 | ) | (256,000 | ) | ||||
| Payment of deferred financing costs | (168,000 | ) | — | |||||
| Payment on royalty liability | — | (1,000,000 | ) | |||||
| Other | (6,000 | ) | 12,000 | |||||
| Net cash provided by (used in) financing activities – continuing operations | 24,149,000 | (2,943,000 | ) | |||||
| Net increase in cash and cash equivalents | 7,476,000 | 760,000 | ||||||
| Cash and cash equivalents at beginning of period | 2,409,000 | 1,649,000 | ||||||
| Cash and cash equivalents at end of period | $ | 9,885,000 | $ | 2,409,000 | ||||
| New Bookings | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||
| Software Licenses | 296,000 | 574,000 | ||||||
| Professional Services | 4,352,000 | 5,362,000 | ||||||
| Audit Services | 255,000 | 890,000 | ||||||
| Maintenance and Support | 486,000 | 929,000 | ||||||
| Software as a Service | 2,199,000 | 6,129,000 | ||||||
| Total 2021 Bookings | $ | 7,588,000 | $ | 13,884,000 | ||||
| Total 2020 Bookings | $ | 1,818,000 | $ | 7,392,000 | ||||
| Reconciliation of Loss from Continuing Operations to Non-GAAP Adjusted EBITDA | |||||||||||||
| (rounded to nearest thousand dollars, except share and per shares information) | |||||||||||||
| Three Months Ended |
Twelve Months Ended |
||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Loss from continuing operations | $ | (4,000 | ) | $ | (1,590,000 | ) | $ | (6,917,000 | ) | $ | (4,799,000 | ) | |
| Interest expense | 129,000 | 12,000 | 236,000 | 51,000 | |||||||||
| Income tax expense | 100,000 | 276,000 | 109,000 | (1,260,000 | ) | ||||||||
| Depreciation | 15,000 | 17,000 | 68,000 | 64,000 | |||||||||
| Amortization of capitalized software development costs | 418,000 | 534,000 | 1,848,000 | 1,662,000 | |||||||||
| Amortization of intangible assets | 560,000 | 121,000 | 1,281,000 | 491,000 | |||||||||
| Amortization of other costs | 111,000 | 117,000 | 449,000 | 359,000 | |||||||||
| EBITDA | 1,329,000 | (513,000 | ) | (2,926,000 | ) | (3,432,000 | ) | ||||||
| Share-based compensation expense | 557,000 | 400,000 | 2,216,000 | 1,403,000 | |||||||||
| Non-cash valuation adjustments | (2,268,000 | ) | (9,000 | ) | (1,851,000 | ) | 31,000 | ||||||
| Loss on exit of operating lease | - | - | - | 105,000 | |||||||||
| Non-Routine Costs | 146,000 | - | 2,856,000 | - | |||||||||
| Forgiveness of PPP loan and accrued interest | - | - | (2,327,000 | ) | - | ||||||||
| Other Non-Recurring Chargees | (64,000 | ) | - | (48,000 | ) | - | |||||||
| Loss on early extinguishment of debt | - | - | 43,000 | - | |||||||||
| Adjusted EBITDA | $ | (300,000 | ) | $ | (122,000 | ) | $ | (2,037,000 | ) | $ | (1,893,000 | ) | |
| Adjusted EBITDA margin | -5 | % | -4 | % | -12 | % | -17 | % | |||||
| Adjusted EBITDA per Diluted Share Reconciliation | |||||||||||||
| Loss from continuing operations per common share — diluted | $ | - | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.16 | ) | ||
| Adjusted EBITDA per adjusted diluted share | $ | (0.01 | ) | $ | - | $ | (0.05 | ) | $ | (0.06 | ) | ||
| Diluted weighted average shares | 46,764,335 | 30,528,863 | 42,815,239 | 30,152,383 | |||||||||
| Effect of dilutive securities - Stock options, Restricted stock | 344,160 | 682,389 | 458,335 | 488,359 | |||||||||
| Weighted average shares outstanding - Diluted | 47,108,495 | 31,211,252 | 43,273,574 | 30,640,742 | |||||||||
Source: Streamline Health Solutions, Inc.