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Streamline Health® Reports Fourth Quarter 2014 Revenues Of $6.6 Million; 2014 Recurring Revenues Of 88%
Revenues for the three-month period ended
Revenues for fiscal year 2014 were
"2014 was a difficult year for our company, and for many other companies in our industry, as purchasing slowed down following the most recent phase of Meaningful Use," stated David W. Sides, President and CEO,
"We did, however, establish a new annual record for contract bookings in 2014, and large contracts, such as the ones we signed in Q3 last year, are a very positive development for our company in the long term, although these wins usually take longer to implement and, therefore, longer to recognize revenue. Today our committed, unimplemented quarterly recurring revenue stands at approximately
"As I look at the challenges and opportunities for our Company, I have implemented three key initiatives that we believe will lead to improved financial performance in 2015 and beyond, as follows. First, grow sales - both inside our existing client base and outside - and focus on improving our client retention. To augment our selling efforts, besides the addition of more sales people and in-house lead generation resources already accomplished, we are looking to expand and better manage strategic channel partners to help sell our solutions to more clients faster. Second, we will complete the links among the solutions inside our Looking Glass® platform to improve the user experience for those who have more than one of our software modules and to aid in cross-selling to our current clients. Third, we will improve our professional services performance to deliver a meaningful contribution to revenue and profit."
"Our clients are some of the most well-regarded healthcare providers in the industry. Our job - and our most immediate opportunity for growth - is to provide them with industry-leading solutions that help make their lives easier, and the performance of their institutions better."
Highlights for the fourth quarter and fiscal year ended
- Revenues for the fourth quarter 2014 were
$6.6 million , and for the year were$27.6 million ; - Adjusted EBITDA for the fourth quarter 2014 was
$(0.7) million , and for the year was$(1.0) million ; - Recorded net loss of
$(4.8) million for the three-month period endedJanuary 31, 2015 , and$(12.0) million for the fiscal year 2014; - Maintenance and support revenues for the quarter increased
$0.3 million over the same period one year ago, and were$16.2 million for fiscal year 2014 up 16% over fiscal year 2013; - New sales bookings for the quarter were
$0.3 million and$24.0 million for the fiscal year; and - Backlog at the end of the quarter was
$72.5 million .
The Company will conduct a conference call to review the results on
A replay of the conference call will be available from
*Non-GAAP Financial Measures
About
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995
Statements made by
Company Contact:
SVP, Chief Marketing Officer
(404) 229-4242
randy.salisbury@streamlinehealth.net
| |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
Three Months Ended |
Fiscal Year Ended | ||||||||
2015 |
2014 |
2015 |
2014 | ||||||
Revenues: |
|||||||||
Systems sales |
$ |
215,670 |
$ |
333,723 |
$ |
1,214,879 |
$ |
3,239,569 | |
Professional services |
848,279 |
716,178 |
2,580,167 |
3,641,731 | |||||
Maintenance and support |
3,745,952 |
3,461,971 |
16,157,371 |
13,986,566 | |||||
Software as a service |
1,785,622 |
2,004,600 |
7,672,990 |
7,626,837 | |||||
Total revenues |
6,595,523 |
6,516,472 |
27,625,407 |
28,494,703 | |||||
Operating expenses: |
|||||||||
Cost of systems sales |
1,031,305 |
830,587 |
3,536,495 |
3,142,525 | |||||
Cost of services |
1,012,518 |
948,677 |
3,458,984 |
4,052,113 | |||||
Cost of maintenance and support |
534,662 |
940,549 |
3,087,842 |
3,460,500 | |||||
Cost of software as a service |
807,013 |
909,967 |
2,920,403 |
2,523,184 | |||||
Selling, general and administrative |
3,299,977 |
4,228,140 |
16,225,574 |
14,546,335 | |||||
Research and development |
2,905,233 |
3,460,743 |
9,756,206 |
7,088,077 | |||||
Impairment of intangible assets |
1,952,000 |
- |
1,952,000 |
- | |||||
Total operating expenses |
11,542,708 |
11,318,663 |
40,937,504 |
34,812,734 | |||||
Operating loss |
(4,947,185) |
(4,802,191) |
(13,312,097) |
(6,318,031) | |||||
Other income (expense): |
|||||||||
Interest expense |
(225,370) |
(31,049) |
(748,969) |
(1,765,813) | |||||
Loss on early extinguishment of debt |
(315,327) |
(160,713) |
(429,849) |
(160,713) | |||||
Miscellaneous income (expenses) |
(211,060) |
2,787,828 |
1,592,449 |
(3,573,091) | |||||
Loss before income taxes |
(5,698,942) |
(2,206,125) |
(12,898,466) |
(11,817,648) | |||||
Income tax benefit |
889,299 |
259,403 |
887,009 |
100,459 | |||||
Net loss |
$ |
(4,809,643) |
$ |
(1,946,722) |
$ |
(12,011,457) |
$ |
(11,717,190) | |
Less: deemed dividends on Series A Preferred Shares |
(286,809) |
(449,595) |
(1,038,310) |
(1,180,904) | |||||
Net loss attributable to common shareholders |
$ |
(5,096,452) |
$ |
(2,396,317) |
$ |
(13,049,767) |
$ |
(12,898,094) | |
Basic net loss per common share |
$ |
(0.28) |
$ |
(0.14) |
$ |
(0.71) |
$ |
(0.94) | |
Number of shares used in basic per common share computation |
18,417,100 |
16,337,000 |
18,261,800 |
13,747,700 | |||||
Diluted net loss per common share |
$ |
(0.28) |
$ |
(0.14) |
$ |
(0.71) |
$ |
(0.94) | |
Number of shares used in diluted per common share computation |
18,417,100 |
16,337,000 |
18,261,800 |
13,747,700 | |||||
| ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Assets | ||||
| ||||
2015 |
2014 | |||
Current assets: |
||||
Cash and cash equivalents |
$ |
6,522,600 |
$ |
17,924,886 |
Accounts receivable, net of allowance for doubtful |
||||
accounts of |
6,935,270 |
7,999,571 | ||
Contract receivables |
191,465 |
1,181,606 | ||
Prepaid hardware and third party software for |
||||
future delivery |
55,173 |
25,640 | ||
Prepaid client maintenance contracts |
935,858 |
909,464 | ||
Other prepaid assets |
1,437,680 |
1,407,515 | ||
Deferred income taxes |
220,004 |
95,498 | ||
Other current assets |
207,673 |
144,049 | ||
Total current assets |
16,505,723 |
29,688,229 | ||
Non-current assets: |
||||
Property and equipment: |
||||
Computer equipment |
2,381,923 |
3,769,564 | ||
Computer software |
964,857 |
2,239,654 | ||
Office furniture, fixtures and equipment |
683,443 |
889,080 | ||
Leasehold improvements |
724,015 |
697,570 | ||
4,754,238 |
7,595,868 | |||
Accumulated depreciation and amortization |
(1,617,423) |
(6,676,824) | ||
Property and equipment, net |
3,136,815 |
919,044 | ||
Contract receivables, less current portion |
43,553 |
78,395 | ||
Capitalized software development costs, net of |
||||
accumulated amortization of |
||||
|
9,197,118 |
10,238,357 | ||
Intangible assets, net of accumulated amortization |
||||
of |
9,500,317 |
12,175,634 | ||
Deferred financing costs |
387,199 |
44,898 | ||
Goodwill |
16,184,667 |
11,933,683 | ||
Other |
823,723 |
500,634 | ||
Total non-current assets |
39,273,392 |
35,890,645 | ||
$ |
55,779,115 |
$ |
65,578,874 |
| ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Liabilities and Stockholders' Equity | ||||
| ||||
2015 |
2014 | |||
Current liabilities: |
||||
Accounts payable |
$ |
2,298,851 |
$ |
1,796,418 |
Accrued compensation |
865,865 |
1,782,599 | ||
Accrued other expenses |
563,838 |
554,877 | ||
Current portion of long-term debt |
500,000 |
1,214,280 | ||
Deferred revenues |
9,289,076 |
9,658,232 | ||
Current portion of note payable |
- |
300,000 | ||
Current portion of capital lease obligation |
781,961 |
105,573 | ||
Total current liabilities |
14,299,591 |
15,411,979 | ||
Non-current liabilities: |
||||
Term loans |
9,500,000 |
6,971,767 | ||
Warrants liability |
1,834,380 |
4,117,725 | ||
Royalty liability |
2,385,826 |
2,264,000 | ||
Swap contract |
- |
111,086 | ||
Note payable |
- |
600,000 | ||
Lease incentive liability, less current portion |
342,129 |
74,434 | ||
Capital lease obligation |
582,911 |
121,089 | ||
Deferred revenues, less current portion |
964,933 |
- | ||
Deferred income tax liability, less current portion |
229,579 |
816,079 | ||
Total non-current liabilities |
15,839,758 |
15,076,180 | ||
Total liabilities |
30,139,349 |
30,488,159 | ||
Series A 0% Convertible Redeemable Preferred stock, |
6,637,978 |
5,599,668 | ||
Stockholders' equity: |
||||
Common stock, |
||||
authorized, 18,553,389 and 18,175,787 shares issued and |
||||
outstanding, respectively |
185,534 |
181,758 | ||
Convertible redeemable preferred stock, |
||||
Additional paid in capital |
78,390,424 |
76,983,088 | ||
Accumulated deficit |
(59,574,170) |
(47,562,713) | ||
Accumulated other comprehensive loss |
- |
(111,086) | ||
Total stockholders' equity |
19,001,788 |
29,491,047 | ||
$ |
55,779,115 |
$ |
65,578,874 |
| ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Fiscal Year | ||||
2014 |
2013 | |||
Operating activities: |
||||
Net loss |
$ |
(12,011,457) |
$ |
(11,717,190) |
Adjustments to reconcile net loss to net cash (used in) provided by |
||||
operating activities: |
||||
Depreciation |
1,005,283 |
718,097 | ||
Amortization of capitalized software development costs |
3,677,991 |
3,192,157 | ||
Amortization of intangible assets |
1,396,317 |
1,341,734 | ||
Amortization of other deferred costs |
189,107 |
385,461 | ||
Amortization of debt discounts |
47,552 |
4,327 | ||
Valuation adjustment for warrants liability |
(2,283,345) |
(140,928) | ||
Deferred tax expense (benefit) |
(720,582) |
20,885 | ||
Valuation adjustment for contingent earn-out |
- |
3,580,441 | ||
Other valuation adjustments |
128,855 |
(95,368) | ||
Loss on impairment of intangible assets |
1,952,000 |
|||
Loss from early extinguishment of debt |
315,327 |
160,713 | ||
Loss on disposal of fixed assets |
180,793 |
- | ||
Loss on exit of operating lease |
234,823 |
- | ||
Share-based compensation expense |
1,934,298 |
1,660,598 | ||
Provision for accounts receivable |
440,771 |
330,907 | ||
Changes in assets and liabilities, net of assets acquired: |
||||
Accounts and contract receivables |
2,157,977 |
827,435 | ||
Other assets |
(637,348) |
(439,477) | ||
Accounts payable |
600,263 |
275,360 | ||
Accrued expenses |
(1,422,571) |
259,771 | ||
Deferred revenues |
(197,698) |
(152,210) | ||
Net cash (used in) provided by operating activities |
(3,011,644) |
212,713 | ||
Investing activities: |
||||
Purchases of property and equipment |
(2,125,240) |
(152,283) | ||
Capitalization of software development costs |
(619,752) |
(614,028) | ||
Payment for acquisition, net of cash acquired |
(6,058,225) |
(3,000,000) | ||
Net cash used in investing activities |
(8,803,217) |
(3,766,311) | ||
Financing activities: |
||||
Proceeds from term loan |
10,000,000 |
4,958,333 | ||
Principal repayments on term loan |
(8,297,620) |
(10,348,214) | ||
Principal repayments on note payable |
(900,000) |
- | ||
Principal payments on capital lease obligation |
(368,386) |
(34,391) | ||
Payment of deferred financing costs |
(573,002) |
(115,900) | ||
Proceeds from exercise of stock options and stock purchase plan |
551,583 |
1,356,060 | ||
Settlement of earn-out consideration |
- |
(1,300,000) | ||
Proceeds from the sale of common stock |
- |
20,586,619 | ||
Payment of debt success fee |
- |
(1,124,279) | ||
Net cash provided by (used in) financing activities |
412,575 |
13,978,228 | ||
(Decrease) increase in cash and cash equivalents |
(11,402,286) |
10,424,630 | ||
Cash and cash equivalents at beginning of year |
17,924,886 |
7,500,256 | ||
Cash and cash equivalents at end of year |
$ |
6,522,600 |
$ |
17,924,886 |
| ||||||
Backlog | ||||||
(Unaudited) | ||||||
Table A | ||||||
|
|
| ||||
Streamline Health Software Licenses |
$ |
20,888,000 |
$ |
21,103,000 |
$ |
2,230,000 |
Hardware and |
244,000 |
126,000 |
79,000 | |||
Professional Services |
7,485,000 |
8,095,000 |
7,255,000 | |||
Maintenance and Support |
21,304,000 |
21,657,000 |
25,936,000 | |||
Software as a Service |
22,574,000 |
24,928,000 |
21,073,000 | |||
Total |
$ |
72,495,000 |
$ |
75,909,000 |
$ |
56,573,000 |
| ||||
New Bookings | ||||
(Unaudited) | ||||
Table B | ||||
Fiscal Year Ended | ||||
| ||||
Value |
% of | |||
|
$ |
19,842,000 |
83% | |
Software as a service |
1,163,000 |
5% | ||
Maintenance and support |
102,000 |
0% | ||
Professional services |
2,882,000 |
12% | ||
Hardware & third party software |
52,000 |
0% | ||
Total bookings |
$ |
24,041,000 |
100% |
Reconciliation of Non-GAAP Financial Measures | ||||||||
Table C | ||||||||
This press release contains a non-GAAP financial measure under the rules of the | ||||||||
Reconciliation of net earnings (loss) to non-GAAP adjusted EBITDA (in thousands): | ||||||||
Adjusted EBITDA Reconciliation |
Three Months Ended, |
Twelve Months Ended, | ||||||
|
|
|
| |||||
Net loss |
$ |
(4,809) |
$ |
(1,947) |
$ |
(12,011) |
$ |
(11,717) |
Interest expense |
225 |
31 |
749 |
1,766 | ||||
Income tax benefit |
(889) |
(259) |
(887) |
(100) | ||||
Depreciation |
334 |
228 |
1,005 |
718 | ||||
Amortization of capitalized software development costs |
942 |
1,105 |
3,678 |
3,192 | ||||
Amortization of intangible assets |
345 |
398 |
1,396 |
1,342 | ||||
Amortization of other costs |
45 |
24 |
166 |
74 | ||||
EBITDA |
(3,807) |
(419) |
(5,904) |
(4,725) | ||||
Share-based compensation expense |
648 |
457 |
1,934 |
1,661 | ||||
Loss on impairment of intangibles |
1,952 |
- |
1,952 |
- | ||||
Loss on early extinguishment of debt |
315 |
161 |
430 |
161 | ||||
Loss on disposal of fixed assets |
70 |
- |
181 |
- | ||||
Non-cash valuation adjustments to assets and liabilities |
52 |
(2,796) |
(2,154) |
3,427 | ||||
Transaction related professional fees, advisory fees and |
||||||||
other internal direct costs |
6 |
406 |
182 |
769 | ||||
Associate severances and other costs relating to |
||||||||
transactions or corporate restructuring |
70 |
32 |
901 |
415 | ||||
Other non-recurring operating expenses |
0 |
9 |
1,491 |
62 | ||||
Adjusted EBITDA |
$ |
(694) |
$ |
(2,150) |
$ |
(987) |
$ |
1,771 |
Adjusted EBITDA per diluted share |
||||||||
Loss per share - diluted |
$ |
(0.28) |
$ |
(0.15) |
$ |
(0.71) |
$ |
(0.94) |
Adjusted EBITDA per adjusted diluted share (1) |
$ |
(0.04) |
$ |
(0.13) |
$ |
(0.05) |
$ |
0.10 |
Diluted weighted average shares |
18,417,100 |
16,336,668 |
18,261,800 |
13,747,700 | ||||
Includable incremental shares — adjusted EBITDA (2) |
- |
- |
- |
4,863,140 | ||||
Adjusted diluted shares |
18,417,100 |
16,336,668 |
18,261,800 |
18,610,840 |
(1) |
Adjusted EBITDA per adjusted diluted share for the Company's common stock is computed using the more dilutive of the two-class method or the if-converted method. |
(2) |
The number of incremental shares that would be dilutive under profit assumption, only applicable under a GAAP net loss. If GAAP profit is earned in the current period, no additional incremental shares are assumed. |
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