ATLANTA, Sept. 9, 2014 /PRNewswire/ -- Streamline Health Solutions, Inc. (NASDAQ: STRM), a leading provider of transformational data-driven solutions to help healthcare providers reduce exposure to risk, enhance clinical, financial, and operational performance, and improve patient care, today announced financial results for the second quarter of 2014, which ended July 31, 2014.

Revenues for the three-month period ended July 31, 2014, decreased approximately 17% to $7.2 million versus $8.8 million in the comparable period of fiscal 2013.  Second quarter 2013 revenues included a $1.8 million perpetual license contract, excluding that, revenues for the second quarter 2014 increased approximately 3% over same period year ago.  Recurring revenues increased 4% quarter over quarter and are up 13% YTD over the comparable first six months of fiscal 2013.

"I'm pleased to report that our deal velocity has started to accelerate as we signed a master service agreement with a new, very large channel partner, expected to be worth nearly $7.5 million in bookings.  However, we were unable to finalize the formal order form in time for this to contribute to bookings in Q2, so these new bookings will simply roll into Q3 when completed", stated Robert E. Watson, President and CEO, Streamline Health Solutions, Inc.  "This new agreement utilizes our Abstracting workflow, which is part of our HIM, Coding and CDI solution suite, thereby enabling this channel partner to deliver our solutions to their existing or new clients - wherever the opportunity exists. It is important to note that we are deploying our solutions in a way that we can empower other potential channel partners to do this as well."

Highlights for the second quarter ended July 31, 2014 included:

• Revenue for the second quarter 2014 was $7.2 million;
• Adjusted EBITDA for the second quarter 2014 was $0.5 million;
• Recorded net loss of $2.3 million for the three-month period ended July 31, 2014;
• Maintenance and support revenues for the quarter increased $0.6 million over the same period year ago;
• New sales bookings and long term renewal agreements for the quarter were $5.8 million, comprised of $5.0 million in renewals and $0.8 million in new bookings; and
• Backlog at the end of the quarter was $61.5 million.

Conference Call Information

The Company will conduct a conference call to review the results on Tuesday, September 9, 2014 at 5:00 PM EDT. Interested parties can access the call by dialing 888-337-8169 and mention Conference ID 1670029.  A live webcast will also be available; click here to register.

A replay of the conference call will be available from Tuesday, September 9, 2014 at 7:00 PM EDT to Sunday, September 14, 2014 at 7:00 PM EDT by dialing 888-203-1112 and entering passcode 1670029.

*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 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 Health
Streamline Health Solutions, Inc. (NASDAQ: STRM) is a healthcare industry leader in capturing, aggregating, and translating enterprise data into knowledge­ - actionable insights that reduce exposure to risk, enhance operational performance, and improve patient care. Through our Looking Glass™ Platform we provide clients with meaningful, intelligent SaaS-based solutions from patient engagement to reimbursement. We share a common calling and commitment to advance the quality of life and the quality of healthcare - for society, our industry, 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, backlog, renewal sales 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, 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)

STREAMLINE HEALTH SOLUTIONS, INC.
Backlog
(Unaudited)
Table A

STREAMLINE HEALTH SOLUTIONS, INC.
New Bookings
 (Unaudited)
Table B

Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Table C

This press release contains a non-GAAP financial measure under the rules of the U.S. Securities and Exchange Commission for adjusted EBITDA. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget. Non-GAAP financial measures are used by Streamline Health's management in its operating and financial decision-making because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, the Company believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the Company's current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. The Company's management compensates for these limitations by considering the company's financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release. 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 severances and related restructuring expenses, associate inducements, professional and advisory fees, and internal direct costs incurred to complete transactions.

Reconciliation of net earnings (loss) to non-GAAP adjusted EBITDA (in thousands)

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SOURCE Streamline Health Solutions, Inc.