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Streamline Health Solutions, Inc. Reports Third Quarter Results
Posted by: gurufocus (IP Logged)
Date: December 15, 2008 04:04PM
Press Release: Streamline Health Solutions, Inc. Reports Third Quarter Results
Streamline Health Solutions Inc. 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 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. Streamline Health Solutions Inc. has a market cap of $16.28 million; its shares were traded at around $1.95 with and P/S ratio of 0.98.
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Highlights of the quarter and the nine-month periods included:
Revenues for the fiscal third quarter increased 11% to
During the quarter, three total contracts, including two more application-hosting services contracts were signed. One of the hosting contracts was a renewal and a major system expansion with an existing customer, and the other was a new client. Together these two hosting clients will generate future hosting fees exceeding
Mr. Patsy continued, "We have also taken aggressive steps to right-size the Company for the shift to a more applications-hosted model. We have reconfigured our sales force and made quarterly cost reductions of approximately
System sales for the quarter were
Services, maintenance and support revenues for the quarter were
Application-hosting services revenues were
Revenues for the first nine months were up 17% to
Near the end of the third quarter, the Company took action to cut expenses mindful of cash flow requirements related to the shift away from license software transactions to the increased volume, yet slower revenue ramp-up, of application-hosting services contracts. These actions are expected to reduce the Company's cost structure by approximately
Total backlog at the end of the quarter increased to
Conference Call Information
The Company will conduct a conference call and webcast to discuss the results on
Interested parties can access the call by dialing (877) 356-5706 or (706) 679-3820, or can listen via a live Internet web cast, which can be found at [www.streamlinehealth.net]. A replay of the call will be available by visiting [www.streamlinehealth.net] for 30 days or by calling (800) 642-1687 or (706) 645-9291, access code 70446458, through
About Streamline Health
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 [www.streamlinehealth.net].
"SafeHarbor" 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 Companyproducts, 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, 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, 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.
STREAMLINE HEALTH SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended October 31, October 31, 2008 2007 2008 2007 ---- ---- ---- ---- Revenues: Systems sales $1,343,112 $40,753 $2,938,131 $905,092 Services, maintenance and support 2,518,583 3,031,478 7,565,489 7,356,497 Application- hosting services 517,277 871,843 2,315,703 2,665,100 Total revenues 4,378,972 3,944,074 12,819,323 10,926,689 Operating expenses: Cost of systems sales 950,340 443,167 2,622,485 1,806,789 Cost of services, maintenance and Support 1,053,661 1,101,417 3,252,252 3,088,605 Cost of application- hosting services 286,471 263,216 883,710 818,375 Selling, general and administrative 1,698,829 1,509,344 5,181,322 4,331,015 Product research and development 364,002 610,554 2,094,371 2,366,455 Total operating expenses 4,353,303 3,927,698 14,034,140 12,411,239 Operating profit (loss) 25,669 16,376 (1,214,817) (1,484,550) Other income expense: Interest income 64 327 7,823 17,559 Interest expense (7,658) (4,472) (8,543) (23,848) Other expense - - - (11,546) Earnings (Loss) before taxes 18,075 12,231 (1,215,537) (1,502,385) Tax (provision) benefit (3,500) (9,000) (13,500) (9,000) Net earnings (loss) $14,575 $3,231 $(1,229,037) $(1,511,385) Basic net earnings (loss) per common share $0.00 $0.00 $(0.13) $(0.16) Diluted net earnings (loss) per common share $0.00 $0.00 $(0.13) $(0.16) Number of shares used in per common Share computation - basic 9,302,956 9,245,320 9,279,677 9,227,526 Number of shares used in per common Share computation - diluted 9,342,130 9,361,189 9,279,677 9,227,526
STREAMLINE HEALTH SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Unaudited) (Audited) October 31, October 31, January 31, Assets 2008 2007 2008 Current assets: Cash $ 1,340,394 $ 628,665 $ 2,189,010 Accounts receivable 3,093,000 1,759,878 2,932,852 Contract receivables 852,138 1,285,995 1,833,842 Allowance for doubtful accounts (100,000) (100,000) (100,000) Other 1,911,311 1,590,688 1,171,050 Total current assets 7,096,843 5,165,226 8,026,754 Property and equipment: Computer equipment 2,643,847 2,228,439 2,235,104 Computer software 1,268,827 998,049 1,086,691 Office furniture, fixtures and equipment 737,344 806,341 731,346 Leasehold improvements 574,257 577,737 574,257 5,224,275 4,610,566 4,627,398 Accumulated depreciation and amortization (3,676,019) (3,090,858) (3,153,675) 1,548,256 1,519,708 1,473,723 Contract receivables 321,500 181,381 - Capitalized software development costs, net of accumulated Amortization of $8,201,235, $6,261,568 and $6,643,235 respectively 5,948,694 4,376,355 4,878,694 Other, primarily deferred tax asset 1,724,661 1,281,700 1,720,114 $ 16,639,954 $ 12,524,370 $ 16,099,285 Liabilities, and stockholders' equity Current liabilities: Bank line of credit $ 2,000,000 $ - $ - Accounts payable 1,522,094 730,725 1,518,682 Accrued compensation 414,210 354,126 536,599 Accrued other expenses 524,531 459,361 521,210 Deferred revenues 4,955,593 3,483,620 5,183,333 Total current liabilities 9,416,428 5,027,832 7,759,824 Non-current portion of lease incentives 73,262 165,515 146,525 - 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, 9,304,782 shares 9,245,320 shares and 9,260,320 shares issued, respectively 93,048 92,453 92,603 Capital in excess of par value 35,728,142 35,456,283 35,542,222 Accumulated (deficit) (28,670,926) (28,217,713) (27,441,889) Total stockholders' equity 7,150,264 7,331,023 8,192,936 $16,639,954 $12,524,370 $16,099,285
STREAMLINE HEALTH SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months 2008 2007 Operating activities: Net (loss) $ (1,229,037) $ (1,511,386) Adjustments to reconcile net (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 2,080,345 1,648,445 Share-based compensation expense 118,922 83,553 Loss on sale of fixed assets - 11,546 Changes in assets and liabilities: Accounts, contract and installment receivables 500,056 1,066,381 Other assets (740,261) (420,258) Accounts payable and accrued expenses (115,657) (21,404) Deferred revenues (227,740) (210,048) Net cash provided by (used for) operating activities 386,628 646,829 Investing activities: Purchases of property and equipment (596,877) (596,205) Proceeds on the sale of fixed assets - 138,775 Capitalization of software development costs (2,628,000) (1,767,994) Other (77,810) (49,134) Net cash (used for) investing activities (3,302,687) (2,274,558) Financing activities: Net proceeds (payment) from line of credit 2,000,000 (1,000,000) Payment of capitalized leases - (147,051) Exercise of stock options and stock purchase plan 67,443 86,831 Net cash (used for) financing activities 2,067,443 (1,060,220) Decrease in cash (848,616) (2,687,949) Cash at beginning of year 2,189,010 3,316,614 Cash at end of period $ 1,340,394 $ 628,665 Supplemental cash flow disclosures: Interest paid $ 3,958 $ 25,459 Income taxes paid $ 8,740 $ 9,202
At October 31, 2008, Streamline Health has master agreements, purchase orders or royalty reports from remarketing partners for systems and related services which have not been delivered, installed and accepted which, if fully performed, will generate future revenues of $22,843,684 compared with $17,691,139 and $15,315,390 at the end of the second and first quarter as follows:
October 31, 2008 July 31, 2008 April 30, 2008 Streamline Health Software Licenses $924,678 $1,980,874 $1,988,165 Custom Software 322,584 348,584 335,250 Hardware and Third Party Software 765,080 1,227,122 1,408,891 Professional Services 4,964,910 5,295,629 5,189,164 Application Hosting Services 12,895,837 4,604,815 2,355,997 Recurring Maintenance 2,970,595 4,234,115 4,037,923 TOTAL $22,843,684 $17,691,139 $15,315,390
COMPANY CONTACT: INVESTOR CONTACT: J. Brian Patsy Joe Diaz, Robert Blum or Joe Dorame Chief Executive Officer Lytham Partners, LLC (513) 794-7100 (602) 889-9700
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