Streamline Health Solutions,
Inc. (“Streamline” or the “Company”) (Nasdaq:
STRM), a leading provider of solutions that enable
healthcare providers to proactively address revenue leakage and
improve financial performance, today announced financial results
for the fourth quarter and fiscal year 2023, which ended January
31, 2024.
Fiscal Fourth Quarter and Full Year 2023 GAAP Financial
Results
The following financial results have been
prepared in accordance with Generally Accepted Accounting
Principles (“GAAP”).
Total revenue for the fourth quarter of fiscal
2023 was $5.4 million as compared to $6.7 million during the fourth
quarter of fiscal 2022. For the twelve months ended January 31,
2024, revenue totaled $22.6 million as compared to $24.9 million
during fiscal 2022. The change in total revenue was attributable to
lower revenue from the Company’s legacy Maintenance and Support
contracts and professional services offerings offset by higher
Software as a Service (SaaS) revenue. As previously reported, the
Company had a large consulting services contract which did not
renew at the end of fiscal 2022. These consulting services
contracts are not expected to be part of the Company’s core
business going forward.
During the fourth quarter and fiscal year 2023
SaaS revenue grew $0.3 million and $1.7 million respectively, as
compared to the prior year periods.
Net loss for the fourth quarter of fiscal 2023
was ($1.4 million) compared to a net loss of ($2.2 million) during
the fourth quarter of fiscal 2022. Fiscal 2023 net loss totaled
($18.7 million) compared to a net loss of ($11.4 million) during
fiscal 2022. The change in net loss was primarily attributable to
non-cash impairment charges of $10.8 million offset by lower
headcount associated with the non-renewal of a large consulting
services contract, cost savings achieved through the previously
announced integration of the Avelead and eValuator divisions and
non-cash valuation adjustments. In addition, the Company recorded
$0.8 million of expenses during fiscal 2023 associated with its
previously announced strategic restructuring.
As of January 31, 2024, cash and cash
equivalents totaled $3.2 million as compared to $6.6 million as of
January 31, 2023. Subsequent to the end of fiscal 2023, on February
7, 2024, the Company announced the closing of a private placement
of common stock, unsecured subordinated promissory notes and
warrants for aggregate gross proceeds of approximately $4.5
million. This additional liquidity is not reflected in our
financial results as of January 31, 2024.
Fiscal Fourth Quarter and Full Year 2023 Non-GAAP
Financial Results
Adjusted EBITDA for the fourth quarter of fiscal
2023 was $0.4 million compared to a loss of ($0.2 million) during
the fourth quarter of fiscal 2022. Fiscal year 2023 adjusted EBITDA
was a loss of ($1.4 million) compared to a loss of ($3.8 million)
during fiscal 2022. The significant improvement in adjusted EBITDA
is largely due to the Company’s focus on the growth of its SaaS
revenue solutions, RevID and eValuator, as well as significant cost
savings achieved through the previously announced integration of
the Avelead and eValuator divisions.
As of January 31, 2024, the Company’s total
Booked SaaS Annual Contract Value (“ACV”) was $15.0 million
compared to $17.2 million as of January 31, 2023. The change in
booked SaaS ACV is the result of previously reported client
non-renewals offset by new bookings. $3.9 million of Booked SaaS
ACV was unimplemented as of January 31, 2024. Subsequent to the end
of the quarter, the Company successfully booked additional new
contracts and implemented existing contracts, and as a result the
Company expects that as of April 29, 2024 booked SaaS ACV totaled
$15.6 million, $3.9 million of which was unimplemented.
Booked SaaS ACV represents the annualized value
of all executed SaaS contracts, including contracts that have not
been fully implemented as of the measurement date, assuming any
contract that expires during the twelve months following the
measurement date is renewed on its existing terms unless the
Company has knowledge of the non-renewal.
The Company reiterated that it believes its
adjusted EBITDA breakeven run rate is $15.5 million of SaaS ARR and
that it expects to achieve this run rate during the second half of
fiscal 2024. Due to the continued unpredictability of timing
related to the closing of new contracts, the Company has not
provided more specific guidance related to the timing of
bookings.
Management Commentary
“During our fourth quarter we began to
capitalize on our cross-selling opportunities and closed our first
enterprise client. As we enter fiscal 2024, we believe we are
poised to deepen our existing relationships and expand the number
of clients leveraging both of our flagship solutions,” stated Ben
Stilwill, President and Chief Executive Officer, Streamline. “We
are also excited by the impact of our Client Service model and
developments within innovation. We estimate that within the first
six weeks of utilization, our AI-generated eValuator rules
delivered approximately $1 million of financial impact for clients,
furthering our mission to help our nation’s health systems get paid
for all of the care they provide.”
Conference Call
The Company will conduct a conference call on
Tuesday, April 30, 2024, at 9:00 AM ET to review results and
provide a corporate update. Interested parties can access the call
by joining the live webcast: click here to register. You can also
join by phone by dialing 877-407-8291.
A replay of the conference call will be
available from Tuesday April 30, 2024, at 12:00 PM ET to Tuesday
May 7, 2024, at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415
with conference ID 13746101. An online replay of the presentation
will also be available for six months following the presentation in
the Investor Relations section of the Streamline website,
www.streamlinehealth.net.
About Streamline
Streamline Health Solutions, Inc. (Nasdaq:
STRM) enables healthcare organizations to proactively address
revenue leakage and improve financial performance. We deliver
integrated solutions, technology-enabled services and analytics
that drive compliant revenue leading to improved financial
performance across the enterprise. For more information,
visit www.streamlinehealth.net.
Non-GAAP Financial Measures
Streamline reports its financial results in
accordance with U.S. generally accepted accounting
principles (“GAAP”). Streamline’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’s management believes this measure provides useful
supplemental information regarding the performance of Streamline’s
business operations.
Streamline defines “adjusted
EBITDA” as net earnings (loss) plus interest expense, tax
expense, depreciation and amortization expense of tangible and
intangible assets, share-based compensation expense,
significant non-recurring operating expenses, restructuring
expenses, impairment of goodwill and long-lived assets and
transactional related expenses including: gains and
losses on debt and equity conversions, associate severances and
related alignment expenses, associate inducement grants, and
professional and advisory fees. A table reconciling this
measure to “net loss” is included in this press
release.
Booked SaaS ACV represents the annualized value
of all executed SaaS contracts, including contracts that have not
been fully implemented, as of the measurement date, assuming any
contract that expires during the twelve months following the
measurement date is renewed on its existing terms, unless the
Company has knowledge of the non-renewal. Booked SaaS ACV
should be viewed independently of revenue and does not represent
revenue calculated in accordance with GAAP on an annualized basis,
as it is an operating metric that can be impacted by contract
execution start and end dates and renewal rates. Booked
SaaS ACV is not intended to be a replacement for, or forecast
of, revenue. There is no GAAP measure comparable to Booked
SaaS ACV.
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 growth prospects, anticipated
bookings, recognition of revenue from contracts included in
Booked SaaS ACV, industry trends and market growth, 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 and
Booked SaaS ACV, achievement of a breakeven SaaS ARR run rate, 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 generate cash from operations, the availability of
additional debt and equity financing to fund the Company’s ongoing
operations, 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, 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
Jacob GoldbergerVice President of
Finance303-887-9625jacob.goldberger@streamlinehealth.net
STREAMLINE HEALTH SOLUTIONS,
INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(rounded to the nearest thousand dollars,
except share and per share information)
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Software as a service |
$ |
3,445,000 |
|
|
$ |
3,169,000 |
|
|
$ |
14,075,000 |
|
|
$ |
12,326,000 |
|
Maintenance and support |
|
991,000 |
|
|
|
1,135,000 |
|
|
|
4,318,000 |
|
|
|
4,483,000 |
|
Professional fees and licenses |
|
925,000 |
|
|
|
2,441,000 |
|
|
|
4,203,000 |
|
|
|
8,080,000 |
|
Total revenues |
|
5,361,000 |
|
|
|
6,745,000 |
|
|
|
22,596,000 |
|
|
|
24,889,000 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
Cost of software as a service |
|
1,414,000 |
|
|
|
1,587,000 |
|
|
|
6,573,000 |
|
|
|
6,358,000 |
|
Cost of maintenance and support |
|
65,000 |
|
|
|
207,000 |
|
|
|
315,000 |
|
|
|
427,000 |
|
Cost of professional fees and licenses |
|
963,000 |
|
|
|
1,618,000 |
|
|
|
4,165,000 |
|
|
|
6,610,000 |
|
Selling, general and administrative expense |
|
2,631,000 |
|
|
|
3,654,000 |
|
|
|
14,710,000 |
|
|
|
16,283,000 |
|
Research and development |
|
1,394,000 |
|
|
|
1,515,000 |
|
|
|
5,704,000 |
|
|
|
6,042,000 |
|
Impairment of goodwill |
|
- |
|
|
|
- |
|
|
|
9,813,000 |
|
|
|
- |
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
|
963,000 |
|
|
|
- |
|
Total operating expenses |
|
6,467,000 |
|
|
|
8,581,000 |
|
|
|
42,243,000 |
|
|
|
35,720,000 |
|
Operating loss |
|
(1,106,000 |
) |
|
|
(1,836,000 |
) |
|
|
(19,647,000 |
) |
|
|
(10,831,000 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(290,000 |
) |
|
|
(230,000 |
) |
|
|
(1,071,000 |
) |
|
|
(749,000 |
) |
Acquisition earnout valuation adjustments |
|
39,000 |
|
|
|
(117,000 |
) |
|
|
1,944,000 |
|
|
|
71,000 |
|
Other |
|
- |
|
|
|
50,000 |
|
|
|
31,000 |
|
|
|
201,000 |
|
Loss before income taxes |
|
(1,357,000 |
) |
|
|
(2,133,000 |
) |
|
|
(18,743,000 |
) |
|
|
(11,308,000 |
) |
Income tax benefit (expense) |
|
(13,000 |
) |
|
|
(49,000 |
) |
|
|
46,000 |
|
|
|
(71,000 |
) |
Net loss |
$ |
(1,370,000 |
) |
|
$ |
(2,182,000 |
) |
|
$ |
(18,697,000 |
) |
|
$ |
(11,379,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Per share Information: |
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.02 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.23 |
) |
Weighted average number of common shares - basic |
|
57,002,776 |
|
|
|
55,309,665 |
|
|
|
56,510,419 |
|
|
|
49,324,858 |
|
STREAMLINE HEALTH SOLUTIONS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, rounded to the
nearest thousand dollars, except share and per share
information)
|
|
January 31, |
|
|
2024 |
|
|
2023 |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,190,000 |
|
|
$ |
6,598,000 |
Accounts receivable, net of allowance for credit losses |
|
|
4,237,000 |
|
|
|
7,719,000 |
Contract receivables |
|
|
780,000 |
|
|
|
960,000 |
Prepaid and other current assets |
|
|
629,000 |
|
|
|
710,000 |
Total current assets |
|
|
8,836,000 |
|
|
|
15,987,000 |
Non-current
assets: |
|
|
|
|
|
|
|
Property and equipment, net of accumulated amortization |
|
|
88,000 |
|
|
|
79,000 |
Right-of use asset for operating lease |
|
|
— |
|
|
|
32,000 |
Capitalized software development costs, net of accumulated
amortization |
|
|
5,798,000 |
|
|
|
5,846,000 |
Intangible assets, net of accumulated amortization |
|
|
12,071,000 |
|
|
|
14,793,000 |
Goodwill |
|
|
13,276,000 |
|
|
|
23,089,000 |
Other |
|
|
1,666,000 |
|
|
|
1,695,000 |
Total non-current assets |
|
|
32,899,000 |
|
|
|
45,534,000 |
Total
assets |
|
$ |
41,735,000 |
|
|
$ |
61,521,000 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,253,000 |
|
|
$ |
626,000 |
|
Accrued expenses |
|
|
2,023,000 |
|
|
|
3,265,000 |
|
Current portion of term loan |
|
|
1,500,000 |
|
|
|
750,000 |
|
Deferred revenues |
|
|
7,112,000 |
|
|
|
8,361,000 |
|
Operating lease obligations |
|
|
— |
|
|
|
35,000 |
|
Acquisition earnout liability |
|
|
1,794,000 |
|
|
|
3,738,000 |
|
Total current liabilities |
|
|
13,682,000 |
|
|
|
16,775,000 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Term loan, net of deferred financing costs |
|
|
7,566,000 |
|
|
|
8,964,000 |
|
Line of credit |
|
|
1,500,000 |
|
|
|
— |
|
Deferred revenues, less current portion |
|
|
173,000 |
|
|
|
167,000 |
|
Other non-current liabilities |
|
|
— |
|
|
|
104,000 |
|
Total non-current liabilities |
|
|
9,239,000 |
|
|
|
9,235,000 |
|
Total liabilities |
|
|
22,921,000 |
|
|
|
26,010,000 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies – Note 12 |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value per share, 85,000,000 shares
authorized; 58,945,498 and 57,567,210 shares issued and
outstanding, respectively |
|
|
590,000 |
|
|
|
576,000 |
|
Additional paid in capital |
|
|
133,923,000 |
|
|
|
131,973,000 |
|
Accumulated deficit |
|
|
(115,699,000 |
) |
|
|
(97,038,000 |
) |
Total stockholders’
equity |
|
|
18,814,000 |
|
|
|
35,511,000 |
|
Total liabilities and
stockholders’ equity |
|
$ |
41,735,000 |
|
|
$ |
61,521,000 |
|
STREAMLINE HEALTH SOLUTIONS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited, rounded to the
nearest thousand dollars)
|
|
Fiscal Year |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(18,697,000 |
) |
|
$ |
(11,379,000 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,331,000 |
|
|
|
4,313,000 |
|
Acquisition earnout valuation adjustments |
|
|
(1,944,000 |
) |
|
|
(71,000 |
) |
Provision for deferred income taxes |
|
|
(104,000 |
) |
|
|
9,000 |
|
Share-based compensation expense |
|
|
2,102,000 |
|
|
|
1,680,000 |
|
Impairment of goodwill |
|
|
9,813,000 |
|
|
|
— |
|
Impairment of long-lived assets |
|
|
963,000 |
|
|
|
— |
|
Provision for credit losses |
|
|
(10,000 |
) |
|
|
189,000 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts and contract receivables |
|
|
3,708,000 |
|
|
|
(4,202,000 |
) |
Other assets |
|
|
(401,000 |
) |
|
|
(1,197,000 |
) |
Accounts payable |
|
|
544,000 |
|
|
|
(152,000 |
) |
Accrued expenses and other liabilities |
|
|
(1,277,000 |
) |
|
|
1,069,000 |
|
Deferred revenues |
|
|
(1,243,000 |
) |
|
|
2,598,000 |
|
Net cash used in operating
activities |
|
|
(2,215,000 |
) |
|
|
(7,143,000 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(54,000 |
) |
|
|
(10,000 |
) |
Capitalization of software development costs |
|
|
(1,567,000 |
) |
|
|
(1,925,000 |
) |
Net cash used in investing
activities |
|
|
(1,621,000 |
) |
|
|
(1,935,000 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
— |
|
|
|
8,316,000 |
|
Payment of acquisition earnout liabilities |
|
|
— |
|
|
|
(2,012,000 |
) |
Payments for costs directly attributable to the issuance of common
stock |
|
|
— |
|
|
|
(52,000 |
) |
Repayment of bank term loan |
|
|
(750,000 |
) |
|
|
(250,000 |
) |
Proceeds from line of credit |
|
|
1,500,000 |
|
|
|
— |
|
Payments related to settlement of employee shared-based awards |
|
|
(280,000 |
) |
|
|
(197,000 |
) |
Payment of deferred financing costs |
|
|
(44,000 |
) |
|
|
(20,000 |
) |
Other |
|
|
2,000 |
|
|
|
6,000 |
|
Net cash provided by financing
activities |
|
|
428,000 |
|
|
|
5,791,000 |
|
Net decrease in cash and cash
equivalents |
|
|
(3,408,000 |
) |
|
|
(3,287,000 |
) |
Cash and cash equivalents at
beginning of period |
|
|
6,598,000 |
|
|
|
9,885,000 |
|
Cash and cash equivalents at
end of period |
|
$ |
3,190,000 |
|
|
$ |
6,598,000 |
|
STREAMLINE HEALTH SOLUTIONS,
INC.NEW BOOKINGS
(Unaudited, rounded to the nearest
thousand dollars)
|
January 31, 2024 |
|
Three Months Ended |
Twelve Months Ended |
Software as a service |
|
5,719,000 |
|
10,497,000 |
Maintenance and Support |
|
27,000 |
|
27,000 |
Professional fees and
licenses |
|
381,000 |
|
1,193,000 |
Q4 2023 Bookings |
$ |
6,127,000 |
$ |
11,717,000 |
Q4 2022 Bookings |
$ |
10,576,000 |
$ |
26,462,000 |
STREAMLINE HEALTH SOLUTIONS,
INC.RECONCILIATION OF NET LOSS TO NON-GAAP
ADJUSTED EBITDA
(Unaudited, rounded to the
nearest thousand dollars)
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net loss |
$ |
(1,370,000 |
) |
|
$ |
(2,182,000 |
) |
|
$ |
(18,697,000 |
) |
|
$ |
(11,379,000 |
) |
Interest expense |
|
290,000 |
|
|
|
230,000 |
|
|
|
1,071,000 |
|
|
|
749,000 |
|
Income tax expense |
|
13,000 |
|
|
|
49,000 |
|
|
|
(46,000 |
) |
|
|
71,000 |
|
Depreciation and amortization |
|
1,043,000 |
|
|
|
1,020,000 |
|
|
|
4,229,000 |
|
|
|
4,233,000 |
|
EBITDA |
|
(24,000 |
) |
|
|
(883,000 |
) |
|
|
(13,443,000 |
) |
|
|
(6,326,000 |
) |
Share-based compensation expense |
|
476,000 |
|
|
|
468,000 |
|
|
|
2,102,000 |
|
|
|
1,680,000 |
|
Impairment of goodwill |
|
- |
|
|
|
- |
|
|
|
9,813,000 |
|
|
|
- |
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
|
963,000 |
|
|
|
- |
|
Non-cash valuation adjustments |
|
(39,000 |
) |
|
|
117,000 |
|
|
|
(1,944,000 |
) |
|
|
(71,000 |
) |
Acquisition-related costs, severance and transaction-related
bonuses |
|
8,000 |
|
|
|
139,000 |
|
|
|
397,000 |
|
|
|
1,149,000 |
|
Other non-recurring expenses |
|
- |
|
|
|
(49,000 |
) |
|
|
(33,000 |
) |
|
|
(189,000 |
) |
Restructuring Charges |
|
10,000 |
|
|
|
- |
|
|
|
759,000 |
|
|
|
- |
|
Adjusted EBITDA |
$ |
431,000 |
|
|
$ |
(208,000 |
) |
|
$ |
(1,386,000 |
) |
|
$ |
(3,757,000 |
) |
Streamline Health Soluti... (NASDAQ:STRM)
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From Jul 2024 to Aug 2024
Streamline Health Soluti... (NASDAQ:STRM)
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