Total First Half Fiscal 2020 Revenues of $5.7 million; $2.5 million Net Income; Adjusted EBITDA ($1.0 million)
Atlanta, GA, Sept. 09, 2020 (GLOBE NEWSWIRE) — Streamline Health Solutions, Inc. (NASDAQ: STRM), provider of the eValuator™ Revenue Integrity Program to help healthcare providers proactively address revenue leakage and compliance exposure, today announced financial results for the second quarter and first half of fiscal 2020, which ended July 31, 2020.Total revenues for the second quarter of fiscal 2020 were $2.9 million, an increase of approximately 16% compared to $2.5 million in the prior year period. SaaS revenue was up $254,000, or 46%, over the same quarter a year ago. The revenue growth during the period was primarily attributable to higher perpetual revenue and new eValuator customers offset by lower professional services revenues which were negatively impacted by the COVID-19 pandemic. Recurring revenue comprised 70% of second quarter fiscal 2020 revenue compared to 73% of second quarter fiscal 2019 revenue.For the first six months of fiscal 2020, total revenue was $5.7 million, up $78,000 compared to the first six months of fiscal 2019. SaaS revenue was up $474,000, or 40%, over the first six months of fiscal 2019. Recurring revenue comprised 72% of revenue for the first six months of fiscal 2020 compared to 69% during the prior year period.Net loss for the second quarter of fiscal 2020 was ($1.1 million) as compared to a ($0.6 million) net loss during the second quarter of fiscal 2019. Second quarter fiscal 2020 net loss included a $28,000 gain from discontinued operations, in connection with the sale of the Company’s legacy ECM business which closed February 24, 2020, compared to a $1.0 million gain from discontinued operations during the second quarter of fiscal 2019. Gain from discontinued operations was offset by loss from continuing operations for the three months ended July 31, 2020 and 2019 of $1.2 million and $1.7 million, respectively.The company recorded $2.5 million of net income for the six months ended July 31, 2020, compared to a net loss of ($0.3 million) during the same period of 2019. First half fiscal 2020 net income included a $4.7 million gain from discontinued operations, in connection with the sale of the Company’s legacy ECM business which closed February 24, 2020, compared to a $2.0 million gain from discontinued operations during the first half of fiscal 2019. Gain from discontinued operations was offset by loss from continuing operations for the first six months of fiscal 2020 of ($2.1 million) as compared to ($2.3 million) for the same period in 2019.Adjusted EBITDA for the second quarter of fiscal 2020 was a loss of ($0.4 million), compared to an adjusted EBITDA loss of ($1.4 million) in the second quarter of fiscal 2019. For the six months ended July 31, 2020, adjusted EBITDA was a loss of ($1.0 million) compared to an adjusted EBITDA loss of ($1.7 million) during the first six months of fiscal 2019.“Our admiration and respect for the country’s healthcare workers continues to grow as the effects of the novel coronavirus linger. We remain grateful for their incredible commitment to the health of the communities they serve,” stated Tee Green, President and Chief Executive Officer, Streamline Health.“We are pleased to report incremental growth of our eValuator client base during the period, while our management team continued to successfully control expenses. Our sales team is gaining traction into a robust prospect pipeline and our reseller opportunities are expanding.”“Even with the continuing negative financial impact the Coronavirus pandemic is having on our industry, the progress we are making and the performance we are generating builds our confidence that we are on the right path. With our eValuator automated, cloud-based, pre-bill coding analysis technology, we will lead an industry-wide movement to help healthcare providers improve revenue integrity.”Highlights from the second quarter ended July 31, 2020 included:Revenue for the second quarter of 2020 was $2.9 million; SaaS revenue was up $254,000 for the second quarter;Loss from continuing operations for the second quarter of 2020 was ($1.2 million);Adjusted EBITDA for the second quarter of 2020 was ($0.4 million);Bookings for the second quarter of 2020 were $2.9 million.Conference CallThe Company will conduct a conference call to review the results on Thursday, September 10, 2020 at 9:00 AM ET. Interested parties can access the call by joining the live webcast: click here to register. You can also join by phone by dialing 877-269-7756.A replay of the conference call will be available from Thursday, September 10, 2020 at 12:00 PM ET to Thursday, September 17, 2020 at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415 with conference ID 13708474. An online replay of the presentation will also be available for six months following the presentation in the Investor Relations section of the Streamline Health website, www.streamlinehealth.net.Non-GAAP Financial MeasuresStreamline 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 HealthStreamline Health Solutions, Inc. (NASDAQ: STRM) is a leader in pre-bill revenue integrity solutions for healthcare providers. Our eValuator™ Revenue Integrity Program includes integrated solutions, technology-enabled services and analytics that drive compliant revenue across the enterprise. We share a common calling and commitment to advance the quality of life and the quality of healthcare – for society, 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 1995Statements 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 growth prospects, estimates of backlog, industry trends and market growth, results of investments in sales and marketing, adjusted EBITDA, success of future products 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 and enhancement of current solutions, key strategic alliances with vendors and channel partners that resell the Company’s solutions, the ability of the Company to control costs, the effects of cost-containment measures implemented by the Company, 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.Contact
Randy Salisbury
SVP, Chief Sales & Marketing Officer
(404) 229-4242
Randy.salisbury@streamlinehealth.netSTREAMLINE HEALTH SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
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New Bookings
(Unaudited) (1) July 31, 2019 excludes bookings from the ECM business of approximately $180,000 for the three months ended July 31, 2019 and $280,000 for the six months ended July 31, 2019.Reconciliation of net earnings (loss) to non-GAAP Adjusted EBITDA (in thousands):
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