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Streamline Health Solutions, Inc. Reports $6.7 Million Revenue; $0.6 Million Adjusted EBITDA in Q3 2013
Revenues for the three-month period ended
Adjusted EBITDA for the third quarter was
"Our Company continues to emphasize to our clients and prospects the benefits of
"In addition, during the quarter, we exclusively licensed clinical analytics and population management capabilities from
Highlights for the quarter included:
- Revenue for the third quarter 2013 was
$6.7 million ; - Software as a Service (
SaaS ) revenues for third quarter 2013 were$1.9 million ; - Maintenance and support revenues for the third quarter 2013 were
$3.5 million ; - New sales bookings for the quarter were
$6.5 million ; and - Backlog at the end of the quarter was
$55.0 million .
Operating expenses for the three-month period ending
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
Company Contact: Director, Marketing (404)-446-2057 |
Investor Contact: Investor Relations (404)-229-4242 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended |
Nine Months Ended | |||||||
|
| |||||||
2013 |
2012 |
2013 |
2012 | |||||
Revenues: |
||||||||
Systems sales |
$ |
347,532 |
$ |
290,294 |
$ |
2,905,846 |
$ |
719,495 |
Professional services |
966,962 |
1,089,814 |
2,925,553 |
3,153,672 | ||||
Maintenance and support |
3,523,551 |
3,148,442 |
10,524,595 |
7,797,263 | ||||
Software as a service |
1,893,489 |
2,005,813 |
5,622,237 |
5,358,120 | ||||
Total revenues |
6,731,534 |
6,534,363 |
21,978,231 |
17,028,550 | ||||
Operating expenses: |
||||||||
Cost of systems sales |
611,887 |
717,901 |
1,911,609 |
1,936,761 | ||||
Cost of services, maintenance and support |
2,002,446 |
1,773,747 |
6,023,717 |
4,260,696 | ||||
Cost of software as a service |
520,062 |
550,875 |
1,613,217 |
1,849,962 | ||||
Selling, general and administrative |
3,373,230 |
2,926,830 |
10,362,246 |
6,800,794 | ||||
Research and development |
1,370,178 |
866,659 |
3,627,336 |
1,833,865 | ||||
Total operating expenses |
7,877,803 |
6,836,012 |
23,538,125 |
16,682,078 | ||||
Operating income (loss) |
(1,146,269) |
(301,649) |
(1,559,894) |
346,472 | ||||
Other income (expense): |
||||||||
Interest expense |
(580,390) |
(895,142) |
(1,734,763) |
(1,494,161) | ||||
Miscellaneous income (expenses) |
(4,510,439) |
43,549 |
(6,316,867) |
55,805 | ||||
Loss before income taxes |
(6,237,098) |
(1,153,242) |
(9,611,524) |
(1,091,884) | ||||
Income tax benefit (expense) |
4,680 |
3,552,879 |
(158,944) |
3,519,879 | ||||
Net earnings (loss) |
$ |
(6,232,418) |
$ |
2,399,637 |
$ |
(9,770,468) |
$ |
2,427,995 |
Less: deemed dividends on Series A Preferred Shares |
(374,162) |
(139,133) |
(731,309) |
(139,133) | ||||
Net earnings (loss) attributable to common shareholders |
$ |
(6,606,580) |
2,260,504 |
$ |
(10,501,777) |
2,288,862 | ||
Basic net earnings (loss) per common share |
$ |
(0.50) |
$ |
0.18 |
$ |
(0.82) |
$ |
0.20 |
Number of shares used in basic per common share computation |
13,257,943 |
12,393,352 |
12,884,711 |
11,346,428 | ||||
Diluted net earnings (loss) per common share |
$ |
(0.50) |
$ |
0.15 |
$ |
(0.82) |
$ |
0.18 |
Number of shares used in diluted per common share computation |
13,257,943 |
15,365,238 |
12,884,711 |
12,417,256 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Assets
2013 |
2013 | |||
Current assets: |
||||
Cash and cash equivalents |
$ |
4,263,991 |
$ |
7,500,256 |
Accounts receivable, net of allowance for doubtful |
||||
accounts of |
6,885,405 |
8,685,017 | ||
Contract receivables |
1,387,147 |
1,481,819 | ||
Prepaid hardware and third party software for |
||||
future delivery |
25,463 |
22,777 | ||
Prepaid client maintenance contracts |
1,230,073 |
1,080,330 | ||
Other prepaid assets |
963,771 |
997,024 | ||
Other current assets |
76,544 |
110,555 | ||
Total current assets |
14,832,394 |
19,877,778 | ||
Non-current assets: |
||||
Property and equipment: |
||||
Computer equipment |
3,496,270 |
3,420,452 | ||
Computer software |
2,205,941 |
2,196,236 | ||
Office furniture, fixtures and equipment |
886,664 |
843,274 | ||
Leasehold improvements |
697,570 |
697,570 | ||
7,286,445 |
7,157,532 | |||
Accumulated depreciation and amortization |
(6,446,291) |
(5,958,727) | ||
Property and equipment, net |
840,154 |
1,198,805 | ||
Contract receivables, less current portion |
87,105 |
126,626 | ||
Capitalized software development costs, net of |
||||
accumulated amortization of |
||||
|
11,777,539 |
12,816,486 | ||
Intangible assets, net |
12,044,903 |
8,188,131 | ||
Deferred financing costs, net |
243,622 |
541,740 | ||
Goodwill |
12,344,199 |
12,133,304 | ||
Other |
543,087 |
383,708 | ||
Total non-current assets |
37,880,609 |
35,388,800 | ||
$ |
52,713,003 |
$ |
55,266,578 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Liabilities and Stockholders' Equity
2013 |
2013 | |||
Current liabilities: |
||||
Accounts payable |
$ |
1,601,279 |
$ |
1,495,913 |
Accrued compensation |
1,301,613 |
2,088,850 | ||
Accrued other expenses |
1,838,952 |
1,325,039 | ||
Deferred revenues |
7,126,543 |
9,810,442 | ||
Contingent consideration for earn-out, current |
4,560,000 |
1,319,559 | ||
Current portion of long-term debt |
12,750,000 |
1,250,000 | ||
Current portion of deferred tax liability |
- |
35,619 | ||
Total current liabilities |
29,178,387 |
17,325,422 | ||
Non-current liabilities: |
||||
Term loans, less current portion |
- |
12,437,501 | ||
Contingent consideration for earn-out, non-current |
900,000 |
- | ||
Contingent consideration |
2,225,000 |
- | ||
Warrants liability |
6,393,435 |
3,649,349 | ||
Lease incentive liability, less current portion |
81,228 |
99,579 | ||
Deferred income tax liability, less current portion |
792,506 |
529,709 | ||
Total non-current liabilities |
10,392,169 |
16,716,138 | ||
Total liabilities |
39,570,556 |
34,041,560 | ||
Series A 0% Convertible Redeemable Preferred stock |
8,497,025 |
7,765,716 | ||
Stockholders' equity: |
||||
Common stock, |
||||
authorized, 13,922,834 and 12,643,620 shares issued and |
||||
outstanding, respectively |
139,228 |
126,436 | ||
Convertible redeemable preferred stock, |
||||
share, 1,000,000 shares authorized, no shares issued |
- |
- | ||
Additional paid in capital |
50,122,185 |
49,178,389 | ||
Accumulated deficit |
(45,615,991) |
(35,845,523) | ||
Total stockholders' equity |
4,645,422 |
13,459,302 | ||
$ |
52,713,003 |
$ |
55,266,578 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended | ||||
| ||||
2013 |
2012 | |||
Operating activities: |
||||
Net (loss) earnings |
$ |
(9,770,468) |
$ |
2,427,995 |
Adjustments to reconcile net (loss) earnings to net cash |
||||
(used in) provided by operating activities: | ||||
Depreciation and Amortization |
3,820,098 |
2,847,665 | ||
Valuation adjustment for warrants liability |
2,082,789 |
- | ||
Deferred tax expense (benefit) |
150,634 |
(3,564,612) | ||
Amortization of debt discount |
- |
111,584 | ||
Valuation adjustment for contingent earn-out |
4,140,441 |
86,839 | ||
Share-based compensation expense |
1,203,919 |
645,407 | ||
Net loss from conversion of convertible note |
- |
56,682 | ||
Changes in assets and liabilities, net of assets acquired: |
||||
Accounts and contract receivables |
2,385,390 |
(1,351,935) | ||
Other assets |
(627,883) |
(482,785) | ||
Accounts payable |
87,014 |
(137,107) | ||
Accrued expenses |
(150,206) |
947,630 | ||
Deferred revenues |
(2,683,899) |
881,677 | ||
Net cash provided by operating activities |
637,829 |
2,469,040 | ||
Investing activities: |
||||
Purchases of property and equipment |
(106,392) |
(546,061) | ||
Capitalization of software development costs |
(1,047,938) |
(1,571,420) | ||
Payment for acquisition |
(2,875,548) |
(12,161,634) | ||
Net cash used in investing activities |
(4,029,878) |
(14,279,115) | ||
Financing activities: |
||||
Net change in borrowings |
- |
9,880,000 | ||
Principal repayments on term loans |
(937,501) |
- | ||
Payment of deferred financing costs |
- |
(1,246,107) | ||
Proceeds from exercise of stock options and stock purchase plan |
1,093,285 |
161,823 | ||
Proceeds from private placement |
- |
12,000,000 | ||
Payment of success fee |
- |
(700,000) | ||
Net cash provided by financing activities |
155,784 |
20,095,716 | ||
(Decrease) increase in cash and cash equivalents |
(3,236,265) |
8,285,641 | ||
Cash and cash equivalents at beginning of period |
7,500,256 |
2,243,054 | ||
Cash and cash equivalents at end of period |
$ |
4,263,991 |
$ |
10,528,695 |
Backlog
(Unaudited)
Table A
2013 |
2013 |
2012 | ||||
Licenses |
$ |
2,529,000 |
$ |
3,416,000 |
$ |
3,650,000 |
Hardware and Third Party Software |
20,000 |
100,000 |
84,000 | |||
Professional Services |
7,141,000 |
4,527,000 |
4,348,000 | |||
Software as a Service |
17,087,000 |
20,439,000 |
19,117,000 | |||
Maintenance and Support |
28,234,000 |
22,504,000 |
21,535,000 | |||
Total |
$ |
55,011,000 |
$ |
50,986,000 |
$ |
48,734,000 |
New Bookings
(Unaudited)
Table B
Three Months Ended | ||||
| ||||
Value |
% of Total Bookings | |||
licenses |
$ |
0 |
0% | |
Software as a service |
1,856,000 |
28% | ||
Maintenance and support |
4,202,000 |
64% | ||
Professional services |
465,000 |
7% | ||
Hardware & third party software |
0 |
0% | ||
Total bookings |
$ |
6,523,000 |
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 earnings (loss) to non-GAAP adjusted EBITDA (in thousands)
Adjusted EBITDA Reconciliation |
Three Months Ended, |
Nine Months Ended, | ||||||
|
|
|
| |||||
Net earnings (loss) |
$ |
(6,232) |
2,400 |
(9,770) |
2,428 | |||
Interest expense |
580 |
895 |
1,735 |
1,494 | ||||
Income tax expense (benefit) |
(5) |
(3,553) |
159 |
(3,520) | ||||
Depreciation |
152 |
184 |
490 |
548 | ||||
Amortization of capitalized software development costs |
691 |
708 |
2,087 |
1,930 | ||||
Amortization of intangible assets |
314 |
229 |
943 |
254 | ||||
Amortization of other costs |
23 |
- |
50 |
- | ||||
EBITDA |
(4,477) |
863 |
(4,306) |
3,134 | ||||
Share-based compensation expense |
378 |
245 |
1,204 |
645 | ||||
Transaction related professional fees, advisory fees and |
||||||||
other internal direct costs |
138 |
494 |
363 |
1,043 | ||||
Associate severances and other costs relating to |
||||||||
transactions or corporate restructuring |
- |
- |
383 |
- | ||||
Other non-recurring operating expenses |
4,514 |
- |
6,276 |
- | ||||
Adjusted EBITDA |
$ |
553 |
1,602 |
3,920 |
4,822 |
SOURCE
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