Welcome!

@CloudExpo Authors: Pat Romanski, Liz McMillan, Elizabeth White, Harry Trott, Stefano Stabellini

News Feed Item

Streamline Health® Reports Improved Income and EPS For Third Quarter 2012

Adjustment in Tax Valuation Allowance Improves Quarterly Net Income to $2.3 Million and EPS to $.18

ATLANTA, Dec. 14, 2012 /PRNewswire/ -- Streamline Health Solutions, Inc. (NASDAQ: STRM), a leading provider of enterprise content management, business analytics, computer assisted coding (CAC), and clinical documentation improvement (CDI) solutions for healthcare providers, today announced that following the release of its third quarter 2012 earnings on December 13, 2012, after having received approval for that press release from its independent auditors, the company has been encouraged by its auditors to take a non-cash adjustment in its tax valuation allowance, as a result of the deferred tax liabilities recorded in conjunction with the Meta Health Technology acquisition, thereby altering its net income and earnings per share (EPS) performance for the quarter.  

The adjustment in the tax valuation allowance also increased the company's year-to-date net income and EPS, to $2.3 million and $.20 respectively.

About Streamline Health

Streamline Health Solutions, Inc. (NASDAQ: STRM) is a leading provider of SaaS-based healthcare information technology (HCIT) solutions for hospitals and physician groups with offices in Atlanta, Cincinnati, and New York. The company's comprehensive suite of solutions includes: enterprise content management (ECM), business analytics, integrated workflow systems, clinical documentation improvement (CDI), and computer assisted coding (CAC). Across the revenue cycle, these solutions offer healthcare enterprises a flexible, customizable way to communicate between disparate departments and information systems to improve processes, boost productivity, and optimize clinical, administrative and financial performance.  For more information, please visit our website at http://www.streamlinehealth.net.  

* Non-GAAP Financial Measures

Streamline Health reports its financial results in accordance with generally accepted accounting principles in the United States ("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 these measures provide 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, and non-recurring transaction costs. A table illustrating this measure is included in this publication.

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 and are no guarantee of future performance. 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 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 products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell the Company's products, the ability of the Company to control costs, availability of products obtained 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 Accountings Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry, 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.

Company Contact:

Ashley Moore

Director, Marketing

(404)-446-2057

[email protected]

 

Investor Contacts:

Randy Salisbury

Investor Relations

(404)-229-4242

[email protected]


 

BPC Financial Marketing

John Baldissera

800-368-1217

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


Three and Nine Months Ended October 31,

(Unaudited)












Three Months


Nine Months



2012


2011


2012


2011

Revenues:









  Systems sales

$

290,294

$

232,395

$

719,495

$

526,597

  Professional services


1,089,814


833,592


3,153,672


2,708,824

  Maintenance and support


3,148,442


2,279,886


7,797,263


6,558,484

  Software as a service


2,005,813


966,218


5,358,120


2,804,141

        Total revenues


6,534,363


4,312,091


17,028,550


12,598,046










Operating expenses:









  Cost of systems sales


717,901


583,388


1,936,761


1,751,890

  Cost of professional services


854,997


572,056


1,910,951


1,923,576

  Cost of maintenance and support


918,750


513,868


2,349,745


1,651,884

  Cost of software as a service


550,875


480,368


1,849,962


1,334,659

  Selling, general and administrative


2,926,830


1,494,891


6,800,794


4,742,084

  Product research and development


866,659


303,973


1,833,865


1,063,903

        Total operating expenses


6,836,012


3,948,544


16,682,078


12,467,996

Operating income (loss)


(301,649)


363,547


346,472


130,050

Other income (expense):









  Interest expense


(895,142)


(25,896)


(1,494,161)


(67,529)

  Miscellaneous income (expenses)


43,549


(36,885)


55,805


(42,155)

Earnings (loss) before income taxes


(1,153,242)


300,766


(1,091,884)


20,366

  Income tax benefit (expense)


3,552,879


(5,000)


3,519,879


(12,315)

Net earnings

$

2,399,637

$

295,766

$

2,427,995

$

8,051

Less: deemed dividends on Series A Preferred Shares


(139,133)




(139,133)



Net earnings attributable to common shareholders

$

2,260,504



$

2,288,862



Basic net earnings per common share

$

0.18

$

0.03

$

0.20

$

0.00

Number of shares used in basic per common share computation


12,393,352


9,943,567


11,346,428


9,823,937

Diluted net earnings per common share

$

0.15

$

0.03

$

0.18

$

0.00

Number of shares used in diluted per common share computation


15,365,238


9,958,947


12,417,256


9,837,750

 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


Assets








(Unaudited) October 31, 2012


January 31,

2012






Current assets:





  Cash and cash equivalents

$

10,528,695

$

2,243,054

  Accounts receivable, net of allowance for doubtful





    accounts of $134,000 and $100,000, respectively


3,389,738


4,484,605

  Contract receivables


648,736


430,370

  Prepaid hardware and third party software for future delivery


22,777


38,193

  Prepaid client maintenance contracts


1,038,035


788,917

  Prepaid and other assets


555,310


256,104

  Deferred income taxes


-


167,000

        Total current assets


16,183,291


8,408,243






Non-current assets:





Property and equipment:





  Computer equipment


3,418,500


2,892,885

  Computer software


2,196,236


2,131,730

  Office furniture, fixtures and equipment


818,231


756,375

  Leasehold improvements


693,890


667,000



7,126,857


6,447,990

  Accumulated depreciation and amortization


(5,778,675)


(5,232,321)

Property and equipment, net


1,348,182


1,215,669






 Contract receivables, less current portion


142,021


221,596

 Capitalized software development costs, net of accumulated amortization of $16,733,274 and $14,805,236, respectively


13,119,354


9,830,175

Intangible assets, net


8,517,084


417,666

Deferred financing cost, net


1,211,912


145,857

Goodwill


12,038,226


4,060,504

 Other, including deferred income taxes of $0 and $711,000, respectively


366,857


841,348

       Total non-current assets


36,743,636


16,732,815


$

52,926,927

$

25,141,058

 


STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


Liabilities and Stockholders' Equity








(Unaudited) October 31, 2012


January 31, 2012






Current liabilities:





  Accounts payable

$

832,657

$

879,027

  Accrued compensation


1,603,355


887,130

  Accrued other expenses


1,373,307


479,526

  Deferred revenues


6,262,960


6,496,938

  Contingent consideration for earn-out


1,319,559


-

  Current portion of long-term debt


1,250,000


-

        Total current liabilities


12,641,838


8,742,621






Non-current liabilities:





  Term loans


12,750,000


4,120,000

  Convertible note payable, net of unamortized discount of

  $1,822,255 and $0, respectively


3,877,322


3,000,000

  Warrants liability


4,138,783


-

  Lease incentive liability


101,453


47,193

  Contingent consideration for earn-out, less current portion


-


1,232,720

        Total non-current liabilities


20,867,558


8,399,913

        Total liabilities


33,509,396


17,142,534






Series A 0% Convertible Redeemable Preferred Stock, $.01 par





    value per share, $7,250,355 redemption value, 5,000,000





    shares authorized, 2,416,785 shares issued


2,979,170


-






Stockholders' equity:










  Common stock, $.01 par value per share, 25,000,000 shares

authorized, 12,582,598  and 10,433,716 shares issued and

outstanding, respectively                                                                                                   


125,826


104,338






   Convertible Redeemable Preferred Stock, $0.01 par value per share, 1,000,000 authorized, no shares issued


-


-






  Additional paid in capital


44,351,334


38,360,980

  Accumulated deficit


(28,038,799)


(30,466,794)

        Total stockholders' equity


16,438,361


7,998,524


$

52,926,927

$

25,141,058


 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


Nine Months Ended October 31,

(Unaudited)








2012


2011

Operating activities:





  Net earnings

$

2,427,995

$

8,051

  Adjustments to reconcile net earnings to net cash

    provided by operating activities, net of effect of acquisition:





    Depreciation and amortization


2,847,665


2,008,432

    Loss on disposal of equipment


-


26,667

    Share-based compensation expense


645,407


529,104

    Deferred tax benefit


(3,564,612)


-

    Provision for accounts receivable


-


40,000

    Amortization of debt discount


111,584


-

    Fair value adjustment for contingent earnout


86,839


-

    Net loss from conversion of convertible note


56,682


-

  Change in assets and liabilities:





    Accounts and contract receivables


(1,351,935)


419,517

    Other assets


(482,785)


(89,066)

    Accounts payable


(137,107)


161,609

    Accrued expenses


947,630


(574,012)

    Deferred revenues


881,677


(1,904,641)

  Net cash provided by operating activities


2,469,040


625,661






Investing activities:





  Purchases of property and equipment


(546,061)


(245,262)

  Capitalization of software development costs


(1,571,420)


(1,970,000)

  Payment for acquisition, net of cash acquired


(12,161,634)


-

  Net cash used in investing activities


(14,279,115)


(2,215,262)






Financing activities:





  Net change in borrowings


9,880,000


550,000

  Payment of deferred financing costs


(1,246,107)


-

  Proceeds from exercise of stock options and stock purchase plan


161,823


92,711

  Proceeds from private placement


12,000,000


-

  Payment of success fee


(700,000)


-

  Payments on capital lease obligation


-


(156,621)

  Net cash provided by financing activities


20,095,716


486,090

Increase (decrease) in cash and cash equivalents


8,285,641


(1,103,511)

Cash and cash equivalents at beginning of period


2,243,054


1,403,949

Cash and cash equivalents at end of period

$

10,528,695

$

300,438

Supplemental cash flow disclosures:





  Interest paid

$

1,181,929

$

61,532

  Income taxes paid

$

78,041

$

19,136


Supplemental Disclosure of Non-Cash Financing and Investing Activities:

- In June 2012, the $3,000,000 convertible note and accrued interest was converted to 1,529,729 common shares at $2.00 per share. 

- In August 2012, we issued 393,086 shares of our common stock at a price of $4.07, as part of the Meta acquisition purchase price.

- In October 2012, we issued approximately 200,000 common stock warrants, convertible into common stock shares at $4.06 per share.

- During the third quarter of 2012, we recorded approximately $139,000 of deemed dividends from preferred shares discount accretion.

 

STREAMLINE HEALTH SOLUTIONS, INC.

Backlog

(Unaudited)

Table A

Backlog










October 31, 2012


January 31, 2012


October 31, 2011

Streamline Health Software Licenses

$

3,650,000

$

181,000

$

67,000

Hardware and Third Party Software


84,000


194,000


190,000

Professional Services


4,348,000


5,945,000


4,946,000

Software as a service


19,117,000


10,542,000


6,237,000

Maintenance and support


21,535,000


10,504,000


5,374,000

    Total

$

48,734,000

$

27,366,000

$

16,814,000

 

STREAMLINE HEALTH SOLUTIONS, INC.

Bookings

 (Unaudited)

Table B


New bookings (1)








Three Months Ended



October 31, 2012



Value


% of Total

Bookings

Streamline Health Software licenses

$

-


-%

Software as a service


2,200,000


76%

Maintenance and support


-


-%

Professional services


684,000


23%

Hardware & third party software


20,000


1%

    Total bookings

$

2,904,000


100%






Nine Months Ended



October 31, 2012



Value


% of Total

Bookings

Streamline Health Software licenses

$

50,000


-%

Software as a service


9,757,000


86%

Maintenance and support


64,000


1%

Professional services


1,160,000


10%

Hardware & third party software


368,000


3%

    Total bookings

$

11,399,000


100%


(1)      Bookings are the aggregate of signed contracts and/or completed customer purchase orders approved and accepted by the Company as binding commitments to purchase its products and/or services. New bookings do not include maintenance services as these tend to be recurring in nature on an annual or more frequent basis.

 

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Table C


This press release contains a non-GAAP financial measure under the rules of the U.S. Securities and Exchange Commission for adjusted EBITDA. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget. Non-GAAP financial measures are used by Streamline Health's management in its operating and financial decision-making because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, the Company believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the company's current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. The Company's management compensates for these limitations by considering the company's financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release.

Reconciliation of net earnings (loss) to non-GAAP adjusted EBITDA (in thousands)










Adjusted EBITDA Reconciliation


Three Months Ended,


Nine Months Ended,



October 31,

2012


October 31,

2011


October 31,

2012


October 31,

2011

Net earnings

$

2,400

$

296

$

2,428

$

8

    Interest expense


895


26


1,494


68

    Income tax benefit (expense) 


(3,553)


5


(3,520)


12

    Depreciation and other amortization


184


163


548


553

    Amortization of capitalized software 
development  costs


708


454


1,930


1,455

    Amortization of intangible assets


229


-


254


-

EBITDA


863


944


3,134


2,096

    Stock-based compensation expense


245


133


645


529

    Transaction  expenses


494


-


1,043


-

Adjusted EBITDA

$

1,602

$

1,077

$

4,822

$

2,625










Adjusted EBITDA per diluted share









Earnings per share - diluted

$

0.15

$

0.03

$

0.18

$

0.00

Adjusted EBITDA per adjusted diluted share

$

0.10

$

0.11

$

0.39

$

0.27










Diluted weighted average shares


15,365,238


9,958,947


12,417,256


9,837,750

 

SOURCE Streamline Health Solutions, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
University of Colorado Athletics has selected FORTRUST, Colorado’s only Tier III Gold certified data center, as their official data center and colocation services provider, FORTRUST announced today. A nationally recognized and prominent collegiate athletics program, CU provides a high quality and comprehensive student-athlete experience. The program sponsors 17 varsity teams and in their history, the Colorado Buffaloes have collected an impressive 28 national championships. Maintaining uptime...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Edge Hosting has announced a partnership with and the availability of CloudFlare, a web application firewall, CDN and DDoS mitigation service. “This partnership enhances Edge Hosting’s world class, perimeter layer, application (layer 7) defensive mechanism,” said Mark Houpt, Edge Hosting CISO. “The goal was to enable a new layer of customer controlled defense and compliance through the application of DDoS filters and mitigations, the web application firewall (WAF) feature and the added benefit ...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Digital Initiatives create new ways of conducting business, which drive the need for increasingly advanced security and regulatory compliance challenges with exponentially more damaging consequences. In the BMC and Forbes Insights Survey in 2016, 97% of executives said they expect a rise in data breach attempts in the next 12 months. Sixty percent said operations and security teams have only a general understanding of each other’s requirements, resulting in a “SecOps gap” leaving organizations u...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things. In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud. Spoiler Alert: He also makes sure you don’t...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors ...
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Commvault; Dave Landa, Chief Operating Officer at kintone; William Morrish, General Manager Product Sales at Interou...