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Streamline Health® Solutions Reports $8.8 Million Revenue; $2.7 Million Adjusted EBITDA in Q2 2013
Revenues increased 74% for the three-month period ended
Adjusted EBITDA increased 81% in the quarter to
"We continue to grow with our clients," said
Highlights for the quarter included:
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Revenue for the second quarter 2013 was |
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Software as a Service (SaaS) revenues for second quarter 2013 was
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Maintenance and support revenues for the second quarter 2013 was
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New sales bookings for the quarter were |
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Backlog at the end of the quarter was |
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Operating expenses for the three-month period ending
Backlog at
Conference Call Information
The Company will conduct a conference call and webcast 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
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
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2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Systems sales | $ | 2,233,668 | $ | 75,670 | $ | 2,558,314 | $ | 429,200 | |||||||
Professional services | 1,039,240 | 941,419 | 1,958,591 | 2,063,858 | |||||||||||
Maintenance and support | 3,620,446 | 2,297,246 | 7,001,046 | 4,648,821 | |||||||||||
Software as a service | 1,880,007 | 1,734,719 | 3,728,748 | 3,352,308 | |||||||||||
Total revenues | 8,773,361 | 5,049,054 | 15,246,699 | 10,494,187 | |||||||||||
Operating expenses: | |||||||||||||||
Cost of systems sales | 661,124 | 532,332 | 1,299,722 | 1,218,859 | |||||||||||
Cost of services, maintenance and support | 2,062,220 | 1,209,187 | 4,021,271 | 2,486,951 | |||||||||||
Cost of software as a service | 514,075 | 616,781 | 1,093,154 | 1,299,087 | |||||||||||
Selling, general and administrative | 3,408,153 | 2,204,205 | 6,989,020 | 3,873,965 | |||||||||||
Research and development | 1,160,147 | 510,842 | 2,257,157 | 967,205 | |||||||||||
Total operating expenses | 7,805,719 | 5,073,347 | 15,660,324 | 9,846,067 | |||||||||||
Operating income (loss) | 967,642 | (24,293 | ) | (413,625 | ) | 648,120 | |||||||||
Other income (expense): | |||||||||||||||
Interest expense | (587,808 | ) | (391,188 | ) | (1,154,373 | ) | (599,018 | ) | |||||||
Miscellaneous income (expenses) | (1,064,163 | ) | (23,788 | ) | (1,806,428 | ) | 12,257 | ||||||||
Earnings (loss) before income taxes | (684,329 | ) | (439,269 | ) | (3,374,426 | ) | 61,359 | ||||||||
Income tax expense | (143,874 | ) | (24,000 | ) | (163,624 | ) | (33,000 | ) | |||||||
Net (loss) earnings | $ | (828,203 | ) | $ | (463,269 | ) | $ | (3,538,050 | ) | $ | 28,359 | ||||
Less: deemed dividends on Series A Preferred Shares | (15,510 | ) | - | (357,147 | ) | - | |||||||||
Net (loss) earnings attributable to common shareholders | $ | (843,713 | ) | $ | (463,269 | ) | $ | (3,895,197 | ) | $ | 28,359 | ||||
Basic net (loss) earnings per common share | $ | (0.07 | ) | $ | (0.04 | ) | $ | (0.31 | ) | $ | 0.00 | ||||
Number of shares used in basic per common share computation | 12,861,715 | 11,316,083 | 12,698,094 | 10,817,214 | |||||||||||
Diluted net (loss) earnings per common share | $ | (0.07 | ) | $ | (0.04 | ) | $ | (0.31 | ) | $ | 0.00 | ||||
Number of shares used in diluted per common share computation | 12,861,715 | 11,316,083 | 12,698,094 | 10,936,752 | |||||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited) | |||||||
Assets | |||||||
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Current assets: | |||||||
Cash and cash equivalents | $ | 5,355,673 | $ | 7,500,256 | |||
Accounts receivable, net of allowance for doubtful | |||||||
accounts of |
10,773,182 | 8,685,017 | |||||
Contract receivables | 1,769,738 | 1,481,819 | |||||
Prepaid hardware and third party software for | |||||||
future delivery | 22,777 | 22,777 | |||||
Prepaid client maintenance contracts | 1,176,432 | 1,080,330 | |||||
Other prepaid assets | 924,512 | 997,024 | |||||
Other current assets | - | 110,555 | |||||
Total current assets | 20,022,314 | 19,877,778 | |||||
Non-current assets: | |||||||
Property and equipment: | |||||||
Computer equipment | 3,481,679 | 3,420,452 | |||||
Computer software | 2,202,444 | 2,196,236 | |||||
Office furniture, fixtures and equipment | 870,079 | 843,274 | |||||
Leasehold improvements | 697,570 | 697,570 | |||||
7,251,772 | 7,157,532 | ||||||
Accumulated depreciation and amortization | (6,296,766 | ) | (5,958,727 | ) | |||
Property and equipment, net | 955,006 | 1,198,805 | |||||
Contract receivables, less current portion | 95,816 | 126,626 | |||||
Capitalized software development costs, net of | |||||||
accumulated amortization of |
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12,218,230 | 12,816,486 | |||||
Intangible assets, net | 7,559,154 | 8,188,131 | |||||
Deferred financing costs, net | 331,955 | 541,740 | |||||
Goodwill | 12,166,959 | 12,133,304 | |||||
Other | 459,823 | 383,708 | |||||
Total non-current assets | 33,786,943 | 35,388,800 | |||||
$ | 53,809,257 | $ | 55,266,578 | ||||
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CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited) | |||||||
Liabilities and Stockholders' Equity | |||||||
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Current liabilities: | |||||||
Accounts payable | $ | 1,605,745 | $ | 1,495,913 | |||
Accrued compensation | 1,021,515 | 2,088,850 | |||||
Accrued other expenses | 1,318,947 | 1,325,039 | |||||
Deferred revenues | 10,040,005 | 9,810,442 | |||||
Contingent consideration for earn-out | 1,358,722 | 1,319,559 | |||||
Current portion of long-term debt | 1,250,000 | 1,250,000 | |||||
Current portion of deferred tax liability | 35,619 | 35,619 | |||||
Total current liabilities | 16,630,553 | 17,325,422 | |||||
Non-current liabilities: | |||||||
Term loans, less current portion | 11,812,500 | 12,437,501 | |||||
Warrants liability | 5,981,000 | 3,649,349 | |||||
Lease incentive liability, less current portion | 79,603 | 99,579 | |||||
Deferred income tax liability, less current portion | 663,033 | 529,709 | |||||
Total non-current liabilities | 18,536,136 | 16,716,138 | |||||
Total liabilities | 35,166,689 | 34,041,560 | |||||
Series A 0% Convertible Redeemable Preferred Stock, |
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value per share, |
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shares authorized, 3,999,995 issued and outstanding, net of | |||||||
unamortized preferred stock discount of |
7,965,515 | 7,765,716 | |||||
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Stockholders' equity: | |||||||
Common stock, |
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authorized, 13,039,619 and 12,643,620 shares issued and | |||||||
outstanding, respectively | 130,396 | 126,436 | |||||
Convertible redeemable preferred stock, |
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share, 1,000,000 shares authorized, no shares issued | - | - | |||||
Additional paid in capital | 49,930,230 | 49,178,389 | |||||
Accumulated deficit | (39,383,573 | ) | (35,845,523 | ) | |||
Total stockholders' equity | 10,677,053 | 13,459,302 | |||||
$ | 53,809,257 | $ | 55,266,578 | ||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited) | |||||||
Six Months Ended | |||||||
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2013 | 2012 | ||||||
Operating activities: | |||||||
Net (loss) earnings | $ | (3,538,050 | ) | $ | 28,359 | ||
Adjustments to reconcile net (loss) earnings to net cash | |||||||
(used in) provided by operating activities: | |||||||
Depreciation and amortization | 2,549,084 | 1,610,343 | |||||
Valuation adjustment for warrants liability | 1,670,354 | - | |||||
Deferred tax expense | 99,669 | - | |||||
Valuation adjustment for contingent earn-out | 39,163 | - | |||||
Share-based compensation expense | 825,531 | 399,961 | |||||
Changes in assets and liabilities, net of assets acquired: | |||||||
Accounts and contract receivables | (2,092,868 | ) | 2,438,948 | ||||
Other assets | (227,263 | ) | (610,237 | ) | |||
Accounts payable | 89,856 | (167,998 | ) | ||||
Accrued expenses | (1,011,963 | ) | 597,038 | ||||
Deferred revenues | 229,563 | (1,128,200 | ) | ||||
Net cash (used in) provided by operating activities | (1,366,924 | ) | 3,168,214 | ||||
Investing activities: | |||||||
Purchases of property and equipment | (94,240 | ) | (448,768 | ) | |||
Capitalization of software development costs | (797,794 | ) | (970,000 | ) | |||
Net cash used in investing activities | (892,034 | ) | (1,418,768 | ) | |||
Financing activities: | |||||||
Principal repayments on term loans | (625,001 | ) | - | ||||
Proceeds from exercise of stock options and stock purchase plan | 739,376 | 79,022 | |||||
Net cash provided by financing activities | 114,375 | 79,022 | |||||
(Decrease) increase in cash and cash equivalents | (2,144,583 | ) | 1,828,468 | ||||
Cash and cash equivalents at beginning of period | 7,500,256 | 2,243,054 | |||||
Cash and cash equivalents at end of period | $ | 5,355,673 | $ | 4,071,522 | |||
Supplemental cash flow disclosures: | |||||||
Interest paid | $ | 589,468 | $ | 299,712 | |||
Income taxes paid | $ | 409,750 | $ | 23,276 | |||
*Supplemental Disclosure of Non-Cash Financing Activity |
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Backlog |
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(Unaudited) |
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Table A |
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Streamline Health Software Licenses | $ | 2,873,000 | $ | 3,416,000 | $ | 120,000 | ||
Hardware and |
25,000 | 100,000 | 119,000 | |||||
Professional Services | 7,765,000 | 4,527,000 | 4,678,000 | |||||
Software as a Service | 17,123,000 | 20,439,000 | 9,937,000 | |||||
Maintenance and Support | 24,094,000 | 22,504,000 | 17,332,000 | |||||
Total | $ | 51,880,000 | $ | 50,986,000 | $ | 32,186,000 | ||
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New Bookings |
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(Unaudited) |
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Table B | |||||||
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Three Months Ended | ||||||
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Value |
% of Total |
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$ | 1,750,000 | 33 | % | |||
Software as a service | 145,000 | 3 | % | ||||
Maintenance and support | 2,106,000 | 40 | % | ||||
Professional services | 1,285,000 | 24 | % | ||||
Hardware & third party software | 1,000 | 0 | % | ||||
Total bookings | $ | 5,287,000 | 100 | % | |||
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Table
C
This press release contains a non-GAAP financial measure under the
rules of the
Reconciliation of net (loss) earnings to non-GAAP adjusted EBITDA (in thousands)
Adjusted EBITDA Reconciliation | Three Months Ended, | Six Months Ended, | ||||||||||||
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Net (loss) earnings | $ | (828 | ) | (463 | ) | (3,538 | ) | 28 | ||||||
Interest expense | 588 | 391 | 1,154 | 599 | ||||||||||
Income tax expense | 144 | 24 | 164 | 33 | ||||||||||
Depreciation | 167 | 183 | 338 | 363 | ||||||||||
Amortization of capitalized software development costs | 701 | 580 | 1,396 | 1,223 | ||||||||||
Amortization of intangible assets | 315 | 22 | 629 | 25 | ||||||||||
Amortization of other costs | 17 | - | 28 | - | ||||||||||
EBITDA | 1,104 | 737 | 171 | 2,271 | ||||||||||
Share-based compensation expense | 358 | 221 | 826 | 400 | ||||||||||
Transaction related professional fees, advisory fees and | ||||||||||||||
other internal direct costs | 152 | 524 | 226 | 550 | ||||||||||
Associate severances and other costs relating to | ||||||||||||||
transactions or corporate restructuring | - | - | 383 | - | ||||||||||
Other non-recurring operating expenses | 1,068 | - | 1,762 | - | ||||||||||
Adjusted EBITDA | $ | 2,682 | 1,482 | 3,368 | 3,221 |
Company Contact:
Director, Marketing
ashley.moore@streamlinehealth.net
or
Investor
Contacts:
Investor
Relations
randy.salisbury@streamlinehealth.net
Source:
News Provided by Acquire Media