UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 21, 2006
Streamline Health Solutions, Inc.
(Exact name of registrant as specified in its charter)
Delaware
|
0-28132 | 31-1455414 | ||
State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||
10200 Alliance Road, Suite 200, Cincinnati, OH
|
45242-4716 | |||
(Address of principal executive offices)
|
(Zip Code) |
Registrant’s telephone number, including area code (513) 794-7100
LanVision Systems, Inc
(Former name, former address, and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:
| o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
| o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 21, 2006, Streamline Health Solutions, Inc. (“Streamline Health”) issued the press
release attached hereto as Exhibit 99.1, which press release contains financial information about
Streamline Health’s second fiscal quarter ended July 31, 2006. The information hereunder shall not
be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the
“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be
incorporated by reference into a filing under the Securities Act of 1933 or the Exchange Act,
except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
| EXHIBIT | ||
| NUMBER | DESCRIPTION | |
99.1
|
News Release of Streamline Health Solutions, Inc. dated August 21, 2006 Second Quarter Earnings News Release |
Signatures
Pursuant to the requirements of the Securities Act of 1934, registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly authorized.
| Streamline Health Solutions, Inc. | ||||
Date: August 22, 2006
|
By: | /s/ Paul W. Bridge, Jr. | ||
| Paul W. Bridge, Jr. Financial Officer |
||||
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INDEX TO EXHIBITS
| Exhibit No. | Description of Exhibit | |
99.1
|
News Release of Streamline Health
Solutions, Inc. Dated August 21, 2006 Second Quarter Earnings News Release |
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Exhibit 99.1
STREAMLINE
HEALTH SOLUTIONS, INC.
News Release of Streamline Health Solutions, Inc. Dated August 21, 2006
News Release of Streamline Health Solutions, Inc. Dated August 21, 2006
News
Release |
||
Visit our web site at: www.streamlinehealth.net |
||
| COMPANY CONTACT: Paul W. Bridge, Jr. Chief Financial Officer (513) 794-7100 |
FOR IMMEDIATE RELEASE
STREAMLINE HEALTH SOLUTIONS, INC. REPORTS SECOND QUARTER
FISCAL 2006 RESULTS
FISCAL 2006 RESULTS
First Half Revenues Up 25% Compared With First Half of 2005
Cincinnati, Ohio, August 21, 2006 -— Streamline Health Solutions, Inc. (NASDAQ Capital Market:
STRM), a leading provider of integrated document management and workflow solutions, today announced
the financial results for the second quarter and first six months
Revenues for the second quarter of fiscal 2006 were up 13% to $4,582,706 compared with $4,065,731
reported in the second quarter of last year. The operating profit for the quarter was $240,957,
compared with an operating profit of $547,196 in the second quarter of last year. The net income
for the quarter was $214,727, or $0.02 per basic and diluted common share, compared with a net
income of $519,269, or $0.06 per basic and diluted common share in the second quarter of last year.
Revenues for the first six months of fiscal 2006 were up 25% to $8,431,129 compared with $6,762,604
reported in the first six months of last year. The operating profit for the first six months of
was $169,514 compared with an operating profit of $293,078 in the first six months of last year.
The net income for the first six months was $134,849, or $0.01 per basic and diluted common share,
compared with net income of $242,750, or $0.03 per basic and diluted common share in the first six
months of last year.
Second Quarter Highlights include:
• The finalizing of our corporate name change to Streamline Health Solutions, Inc. (STRM) on
the NASDAQ Capital Market, which more accurately describes our
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capabilities and the breadth of the solutions that we provide to enable healthcare providers to
streamline their document-centric business and clinical processes.
• The announcement of the new Standard Register strategic alliance to expand our distribution
capabilities to healthcare organizations and leverage our mutual installed base of customers.
• The announcement that Thomas Hospital in Fairhope, Alabama has selected Streamline Health as
its enterprise document workflow solution to achieve business process improvements.
• The announcement that Nassau University Medical Center has selected Streamline Health to
implement its enterprise business process management solutions for Health Information Management
workflows and document management.
• The announcement that T. J. Sampson Community Hospital has selected Streamline Health to
provide workflow solutions for their Health Information Management business process initiative via
Streamline Health’s remote Application Hosting Services.
• The announcement that the Nebraska Medical Center has selected Streamline Health’s
enterprise workflow and document management solutions to integrate with its current GE Centricity
Enterprise solution, (formerly IDX® CarecastTM).
• The announcement that HealthCare Resolution Services, Inc. has entered into a strategic
alliance with Streamline Health to utilize the Streamline Health Application Hosting Services for
Coding Workflow for use with its military and Federal agency clients.
Brian Patsy, Streamline Health’s Chairman and Chief Executive Officer, stated, “The planned
investments for 2005 and 2006 in our sales and marketing programs, business development initiatives
and research and development continue to pay dividends. As a result of the significant sales
achievements and strategic business relationships, during the first half of the current year our
total sales increased by more than $1.6 million, or 25%, with our system sales accounting for $1.2
million of the total increase.”
Mr. Patsy continued, “Our sales pipeline is very strong and continues to grow as the healthcare
market looks for ways to streamline inefficient business processes to lower expense and improve
patient care. During the quarter we added two important new distribution partners to compliment
our continued distribution relationship with GE Healthcare.”
Mr. Patsy concluded, “For the first half of our fiscal year, we are on plan for anticipated revenue
growth, and ahead of plan for operating profitability notwithstanding the planned increased
investment in all areas of our operations. We have successfully assimilated our nearly 40 percent
growth in personnel last year and have nearly completed our planned
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approximately 15 percent growth in personnel this year. As a result, we believe we have the
resources in place to deliver on our plan and fuel our continued growth. Accordingly, we believe
that we are on course to achieve continuing improved operating results in the final six months of
the current fiscal year, and we continue to feel comfortable with our guidance regarding
approximately 25 percent revenue growth for the entire year.”
Conference Call Information
In conjunction with Streamline Health’s Second Quarter Fiscal 2006 earnings release, you are
invited to listen to its conference call which will be held at 10:00 a.m. eastern time, on Tuesday
August 22, 2006. The call will feature remarks from J. Brian Patsy, Chief Executive Officer,
William A. Geers, Chief Operating Officer and Paul W. Bridge, Jr., Chief Financial Officer.
To access the call, dial 800.599.9795 approximately five minutes prior to the start of the call.
To access the call via the webcast, go to www.streamlinehealth.net before the call is scheduled to
begin. The webcast will also be available on our web site for 30 days.
About Streamline Health Solutions, Inc.
Streamline Health is a leading supplier of workflow and document management tools, applications
and services that assist strategic business partners and healthcare organizations to improve
operational efficiencies through business process optimization. The Company provides integrated
tools and technologies for automating document-intensive environments, including document
workflow, document management, e-forms, portal connectivity, optical character recognition (OCR)
and interoperability.
The company’s workflow-based services offer solutions to inefficient and labor-intensive
healthcare business processes throughout the revenue cycle, such as chart coding, abstracting and
completion, remote physician order processing, pre-admission registration scanning and signature
capture, insurance verification, secondary billing services, explanation of benefits processing
and release of information processing. The company’s solutions also address the document workflow
needs of the Human Resource and Supply Chain Management processes of the healthcare enterprise.
All solutions are available for purchase or through a remote hosting services model that better
matches customers’ capital or operating budget needs.
Streamline Health’s solutions create a permanent document-based repository of historical health
information that is complementary and can be seamlessly integrated with existing disparate
clinical, financial and administrative information systems, providing convenient electronic access
to all forms of patient information from any location, including secure web-based access. These
integrated solutions allow providers and administrators to link existing systems with documents,
which can dramatically improve the availability of patient information while decreasing direct
costs associated with document retrieval, work-in-process, chart processing, document retention,
and archiving. For additional information, please visit our website at
http://www.streamlinehealth.net.
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“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 risks and uncertainties. The forward-looking
statements contained herein 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. These risks and uncertainties include, but are not limited to, the
impact of competitive products and pricing, product demand and market acceptance, new product
development, key strategic alliances with vendors that resell the Company products, the ability of
the Company to control costs, availability of products produced from third party vendors, the
healthcare regulatory environment, 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 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.
STATEMENTS FOLLOW
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STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenues: |
||||||||||||||||
Systems sales |
$ | 1,706,646 | $ | 1,571,893 | $ | 2,915,308 | $ | 1,712,697 | ||||||||
Services, maintenance and support |
2,070,082 | 1,753,322 | 3,898,349 | 3,552,346 | ||||||||||||
Application-hosting services |
805,978 | 740,516 | 1,617,472 | 1,497,561 | ||||||||||||
Total revenues |
4,582,706 | 4,065,731 | 8,431,129 | 6,762,604 | ||||||||||||
Operating expenses: |
||||||||||||||||
Cost of systems sales |
929,511 | 666,753 | 1,555,918 | 946,940 | ||||||||||||
Cost of services, maintenance and
support |
853,663 | 742,634 | 1,692,335 | 1,503,998 | ||||||||||||
Cost of application-hosting
services |
297,146 | 237,793 | 577,376 | 488,695 | ||||||||||||
Selling, general and administrative |
1,502,742 | 1,291,927 | 2,917,620 | 2,348,808 | ||||||||||||
Product research and development |
758,687 | 579,428 | 1,518,366 | 1,181,085 | ||||||||||||
Total operating expenses |
4,341,749 | 3,518,535 | 8,261,615 | 6,469,526 | ||||||||||||
Operating income |
240,957 | 547,196 | 169,514 | 293,078 | ||||||||||||
Other income expense: |
||||||||||||||||
Interest income |
19,509 | 20,097 | 52,500 | 37,891 | ||||||||||||
Interest expense |
(41,739 | ) | (31,024 | ) | (83,165 | ) | (71,219 | ) | ||||||||
Earnings before taxes |
218,727 | 536,269 | 138,849 | 259,750 | ||||||||||||
Income taxes |
(4,000 | ) | (17,000 | ) | (4,000 | ) | (17,000 | ) | ||||||||
Net earnings |
$ | 214,727 | $ | 519,269 | $ | 134,849 | $ | 242,750 | ||||||||
Basic net earnings per common share |
$ | 0.02 | $ | 0.06 | $ | 0.01 | $ | 0.03 | ||||||||
Diluted net earnings per common share |
$ | 0.02 | $ | 0.06 | $ | 0.01 | $ | 0.03 | ||||||||
Number of shares used in per common
Share computation — basic |
9,189,642 | 9,108,146 | 9,179,165 | 9,097,564 | ||||||||||||
Number of shares used in per common
Share computation — diluted |
9,684,189 | 9,286,607 | 9,755,786 | 9,306,761 | ||||||||||||
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STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
| July 31, | July 31, | January 31, | ||||||||||
| 2006 | 2005 | 2006 | ||||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash |
$ | 1,960,996 | $ | 4,167,521 | $ | 4,634,219 | ||||||
Accounts receivable |
4,038,542 | 1,777,285 | 2,317,495 | |||||||||
Contract receivables |
2,304,572 | 1,396,192 | 2,268,913 | |||||||||
Allowance for doubtful accounts |
(200,000 | ) | (200,000 | ) | (200,000 | ) | ||||||
Other, including deferred federal tax asset |
1,177,693 | 788,297 | 967,731 | |||||||||
Total current assets |
9,281,803 | 7,929,295 | 9,988,358 | |||||||||
Property and equipment: |
||||||||||||
Computer equipment |
2,232,357 | 1,732,431 | 2,120,321 | |||||||||
Computer software |
1,081,480 | 938,232 | 989,556 | |||||||||
Office furniture, fixtures and equipment |
777,753 | 726,215 | 736,858 | |||||||||
Leasehold improvements |
534,680 | 520,322 | 522,863 | |||||||||
| 4,626,270 | 3,917,200 | 4,369,598 | ||||||||||
Accumulated depreciation and amortization |
(3,058,287 | ) | (2,319,303 | ) | (2,666,784 | ) | ||||||
| 1,567,983 | 1,597,897 | 1,702,814 | ||||||||||
Contract receivables |
728,541 | — | 728,541 | |||||||||
Capitalized software development costs, net of accumulated
Amortization of $4,574,900, $3,633,230 and $4,033,232 respectively |
2,965,027 | 2,256,699 | 2,706,697 | |||||||||
Other, primarily deferred federal tax asset |
1,330,836 | 708,241 | 1,306,741 | |||||||||
| $ | 15,874,190 | $ | 12,492,132 | $ | 16,433,151 | |||||||
| Liabilities, convertible redeemable preferred stock and stockholders’ equity |
||||||||||||
Current liabilities: |
||||||||||||
Accounts payable |
$ | 896,448 | $ | 858,934 | $ | 1,055,539 | ||||||
Accrued compensation |
460,912 | 409,801 | 1,139,587 | |||||||||
Accrued other expenses |
677,054 | 742,323 | 744,112 | |||||||||
Deferred revenues |
3,764,541 | 2,191,968 | 2,617,184 | |||||||||
Current portion of capitalized leases |
87,925 | 52,406 | 84,951 | |||||||||
Current portion of long term-debt |
1,000,000 | 1,000,000 | 1,000,000 | |||||||||
Total current liabilities |
6,886,880 | 5,255,432 | 6,641,373 | |||||||||
Non-current portion of long-term debt |
— | 1,000,000 | 1,000,000 | |||||||||
Non-current portion of lease incentive |
260,464 | 237,091 | 293,409 | |||||||||
Non-current portion of capitalized leases |
102,332 | — | 147,051 | |||||||||
Stockholders’ equity: |
||||||||||||
Convertible redeemable preferred stock, $0.01 par value per share,
5,000,000 shares authorized |
— | — | — | |||||||||
Common stock, $0.01 par value per share, 25,000,000 shares
Authorized,
9,211,399 shares, 9,120,541 shares and 9,159,541 shares issued,
respectively |
92,114 | 91,205 | 91,595 | |||||||||
Capital in excess of par value |
35,228,130 | 35,047,305 | 35,090,302 | |||||||||
Accumulated (deficit) |
(26,695,730 | ) | (29,138,901 | ) | (26,830,579 | ) | ||||||
Total stockholders’ equity |
8,624,514 | 5,999,609 | 8,351,318 | |||||||||
| $ | 15,874,190 | $ | 12,492,132 | $ | 16,433,151 | |||||||
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STREAMLINE HEALTH SOLUTIONS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
| Six Months | ||||||||
| 2006 | 2005 | |||||||
Operating activities: |
||||||||
Net earnings |
$ | 134,849 | $ | 242,750 | ||||
Adjustments to reconcile net earnings to net
cash
provided by operating activities: |
||||||||
Depreciation and amortization |
933,171 | 723,176 | ||||||
Share-based compensation expense |
53,029 | — | ||||||
Cash provided by (used for) assets and
liabilities: |
||||||||
Accounts, contract and installment receivables |
(1,756,706 | ) | 332,733 | |||||
Other assets |
(209,962 | ) | (102,181 | ) | ||||
Accounts payable and accrued expenses |
(904,824 | ) | 129,541 | |||||
Deferred revenues |
1,147,357 | (39,474 | ) | |||||
Net cash (used for) provided by operating
activities |
(603,086 | ) | 1,286,545 | |||||
Investing activities: |
||||||||
Purchases of property and equipment |
(256,672 | ) | (682,459 | ) | ||||
Capitalization of software development costs |
(799,998 | ) | (600,000 | ) | ||||
Other |
(57,040 | ) | 53,373 | |||||
Net cash (used for) investing activities |
(1,113,710 | ) | (1,229,086 | ) | ||||
Financing activities: |
||||||||
Payment of long-term debt |
(1,000,000 | ) | — | |||||
Payment of capitalized leases |
(41,745 | ) | (115,715 | ) | ||||
Exercise of stock options and stock purchase
plan |
85,318 | 44,704 | ||||||
Net cash (used for) financing activities |
(956,427 | ) | (71,011 | ) | ||||
Decrease in cash and cash equivalents |
(2,673,223 | ) | (13,552 | ) | ||||
Cash and cash equivalents at beginning of year |
4,634,219 | 4,181,073 | ||||||
Cash and cash equivalents at end of period |
$ | 1,960,996 | $ | 4,167,521 | ||||
Supplemental cash flow disclosures: |
||||||||
Interest paid |
$ | 83,165 | $ | 42,233 | ||||
Income taxes paid (refund) |
$ | 38,300 | $ | (27,874 | ) | |||
Leasehold improvements (included in property and
equipment) paid for by the landlord as a lease |
$ | $ | ||||||
inducement |
— | 326,000 | ||||||
# # #
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