GlobeNewswire Inc | Apr 21, 2021 06:11PM EDT

April 21, 2021

Fiscal 2020 Revenues of $11.3 million; $0.3 million Net Income; Adjusted EBITDA ($1.9 million)

Atlanta, GA, April 21, 2021 (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 fourth quarter and fiscal year 2020, which ended January 31, 2021.

Total revenues for the fourth quarter of fiscal 2020 were $3.0 million, compared to $2.7 million in the prior year period. SaaS revenue was up $349,000, approximately 50%, compared to the same quarter a year ago. The revenue growth during the quarter was driven by higher revenue from SaaS, system sales and professional services offset by lower revenue form audit services and maintenance and support. Recurring revenue comprised 75% of fourth quarter fiscal 2020 revenue compared to 80% of fourth quarter fiscal 2019 revenue.

Fiscal year 2020 revenue was $11.3 million, compared to $11.9 million during fiscal 2019. SaaS revenue in fiscal 2020 grew 46% to $3.7 million compared to $2.5 million during fiscal 2019. Recurring revenue comprised 74% of revenue during fiscal 2020 compared to 68% during the prior year.

Net loss for the fourth quarter of fiscal 2020 was ($1.2 million) as compared to a net loss of ($2.4 million) during the fourth quarter of fiscal 2019. Fourth quarter fiscal 2020 net loss included $400,000 income from gain from sale, and discontinued operations of the Companys legacy ECM business which closed February 24, 2020, compared to $18,000 income from discontinued operations during the fourth quarter of fiscal 2019. Income from discontinued operations was offset by a loss from continuing operations for the three months ended January 31, 2021 and 2020 of ($1.6 million) and ($2.4 million), respectively.

The company recorded $0.3 million of net income for the fiscal year 2020, compared to a net loss of ($2.9 million) during fiscal 2019. Fiscal year 2020 net income included $5.1 million income from discontinued operations in connection with the sale of the Companys legacy ECM business which closed February 24, 2020, compared to $3.3 million income from discontinued operations during fiscal 2019. The income from discontinued operations was offset by a loss from continuing operations during fiscal 2020 of ($4.8 million) as compared to a loss of ($6.2 million) during fiscal 2019.

Adjusted EBITDA for the fourth quarter of fiscal 2020 was a loss of ($0.1 million), compared to an adjusted EBITDA loss of ($0.6 million) in the fourth quarter of fiscal 2019. Fiscal year 2020 adjusted EBITDA was a loss of ($1.9 million) compared to a loss of ($2.3 million) during fiscal 2019. The profitability improvements have come from cost containment activities in all areas of our business.

Last year was a very difficult and challenging one, especially for COVID patients and healthcare providers throughout the country. Today, with more Americans receiving vaccinations, we believe a return to normalcy during the second half of this year is a real possibility. And that should free up departmental decision making, helping us generate more eValuator contracts from our pipeline which grew throughout 2020, stated Tee Green, President and Chief Executive Officer, Streamline Health.

As the pandemic slowed contract closings, we asked our employees to focus on improving operations and preparing for growth. This internal focus enabled us to develop a top-level product management team to continually expand and improve our eValuator technology and build a superior customer success team to ensure customer satisfaction. I believe all of this will serve us well going forward.

Highlights from the fourthquarter ended January 31, 2021included

-- Revenue for the fourth quarter of fiscal 2020 was $3.0 million; SaaS revenue grew 50% compared to the fourth quarter of fiscal 2019; -- Loss from continuing operations for the fourth quarter of fiscal 2020 was ($1.6 million); -- Adjusted EBITDA for the fourth quarter of fiscal 2020 was ($0.1 million); -- Total bookings (total contract value) for the fourth quarter of fiscal 2020 were $1.8 million.

Conference Call

The Company will conduct a conference call to review the results on Thursday, April 22, 2021 at 9:00 AM ET. Interested parties can access the call by joining the live webcast:click hereto register. You can also join by phone by dialing 877-269-7756.

A replay of the conference call will be available from Thursday, April 22, 2021 at 12:00 PM ET to Thursday, April 29, 2021 at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415 with conference ID 13716445. 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 Measures

Streamline 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 Health

Streamline 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 and improved financial performance 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 atwww.streamlinehealth.net.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

Statements made by Streamline Health Solutions, Inc. that are not historical facts areforward-looking statementsthat aresubject 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 productsand 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 developmentand enhancement of current solutions, key strategic alliances with vendorsand channel partnersthat 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 thirdparty 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.

ContactRandy SalisburySVP, Chief Sales & Marketing Officer(404) 229-4242Randy.salisbury@streamlinehealth.net

STREAMLINE HEALTH SOLUTIONS, INC.CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS(Unaudited)

Three Months Ended Twelve Months Ended January 31 January 31 2021 2020 2021 2020 Revenues: Systems sales $ 356,000 $ 153,000 $ 590,000 $ 1,121,000 Professional 145,000 78,000 618,000 1,163,000 servicesAudit Services 393,000 446,000 1,891,000 1,712,000 Maintenance and 1,030,000 1,303,000 4,586,000 5,356,000 supportSoftware as a 1,050,000 701,000 3,661,000 2,501,000 serviceTotal revenues 2,974,000 2,681,000 11,346,000 11,853,000 Operating expenses:Cost of systems 116,000 457,000 501,000 1,004,000 salesCost ofprofessional 264,000 330,000 1,040,000 1,592,000 servicesCost of audit 400,000 306,000 1,558,000 1,255,000 servicesCost ofmaintenance and 156,000 172,000 684,000 676,000 supportCost ofsoftware as a 653,000 352,000 1,906,000 824,000 serviceSelling,general and 1,706,000 2,021,000 8,565,000 9,606,000 administrativeResearch and 987,000 940,000 2,933,000 2,690,000 developmentExecutiveTransition - 168,000 - 789,000 CostsRationalization - 388,000 - 388,000 ChargesTransaction - 230,000 - 230,000 CostsLoss on exit ofmembership - - 105,000 - agreementTotal operating 4,282,000 5,364,000 17,292,000 19,054,000 expensesOperating loss (1,308,000 ) (2,683,000 ) (5,946,000 ) (7,201,000 )Other expense: Interest (12,000 ) (70,000 ) (51,000 ) (309,000 )expenseMiscellaneous 6,000 (167,000 ) (62,000 ) (366,000 )expenseLoss before (1,314,000 ) (2,920,000 ) (6,059,000 ) (7,876,000 )income taxesIncome tax (276,000 ) 498,000 1,260,000 1,632,000 benefitLoss fromcontinuing $ (1,590,000 ) $ (2,422,000 ) $ (4,799,000 ) $ (6,244,000 )operationsAdd: Redemptionof Series A - - - 4,894,000 Preferred StockNet (loss)income from (1,590,000 ) (2,422,000 ) (4,799,000 ) (1,350,000 )continuingoperationsIncome fromdiscontinued operations:Gain on sale ofdiscontinued - - 6,013,000 - operationsIncome fromdiscontinued 51,000 522,000 356,000 5,035,000 operationsIncome taxbenefit 352,000 (504,000 ) (1,274,000 ) (1,654,000 )(expense)Income fromdiscontinued 403,000 18,000 5,095,000 3,381,000 operationsNet (loss) $ (1,187,000 ) $ (2,404,000 ) $ 296,000 $ 2,031,000 income Basic Earnings per Share:Continuing $ (0.05 ) $ (0.08 ) $ (0.16 ) $ (0.06 )operationsDiscontinued 0.01 - 0.17 0.14 operationsNet (loss) $ (0.04 ) $ (0.08 ) $ 0.01 $ 0.08 income Weightedaverage number 30,528,863 29,653,550 30,152,383 22,739,679 of commonshares - basic DilutedEarnings per Share:Continuing $ (0.05 ) $ (0.08 ) $ (0.16 ) $ (0.27 )operationsDiscontinued 0.01 - 0.17 0.13 operationsNet (loss) $ (0.04 ) $ (0.08 ) $ 0.01 $ (0.14 )income Weightedaverage numberof common 31,211,252 30,096,177 30,640,742 25,083,061 shares ?diluted

STREAMLINE HEALTH SOLUTIONS, INC.CONSOLIDATED AND CONDENSED BALANCE SHEETS(Unaudited)

Assets January 31, January 31, 2021 2020Current assets: Cash and cash equivalents $ 2,409,000 $ 1,649,000Accounts receivable, net 2,929,000 2,016,000Contract receivables 174,000 803,000Prepaid hardware and other current assets 1,216,000 501,000Current Assets from discontinued operations 587,000 1,585,000Total current assets 7,315,000 6,554,000 Non-current assets: Property and equipment, net 104,000 98,000Right of use asset on operating lease 391,000 -Capitalized software development costs, net 5,945,000 5,782,000Intangible assets, net 624,000 1,115,000Goodwill 10,712,000 10,712,000Other non-current assets 873,000 611,000Long-term assets from discontinued operations 13,000 6,826,000Total non-current assets 18,662,000 25,144,000 $ 25,977,000 $ 31,698,000 Liabilities and Stockholders' EquityCurrent liabilities: Accounts payable $ 272,000 $ 756,000Accrued expenses 908,000 1,395,000Current portion of term loan 1,534,000 3,872,000Deferred revenues 3,862,000 3,593,000Royalty liability - 969,000Current portion of operating lease obligation 198,000 -Current liabilities from discontinued operations 595,000 5,053,000Total current liabilities 7,369,000 15,638,000 Non-current liabilities: Term loan, net of current portion 767,000 -Deferred revenues, less current portion 130,000 55,000Operating Lease obligations, less current portion 222,000 -Total non-current liabilities 1,119,000 55,000Total liabilities 8,488,000 15,693,000 Stockholders' equity 17,489,000 16,005,000 $ 25,977,000 $ 31,698,000

STREAMLINE HEALTH SOLUTIONS, INC.CONSOLIDATED AND CONDENSED STATEMENT OF CASH FLOWS(Unaudited)

Fiscal Year Ended January 31, 2021 2020 Cash flows from continuing operating activities:Loss from continuing operations $ (4,799,000 ) $ (6,244,000 )Depreciation 64,000 43,000 Amortization of capitalized software 1,662,000 1,494,000 development costsAmortization of intangible assets 491,000 554,000 Amortization of other deferred costs 359,000 480,000 Valuation adjustments 31,000 64,000 Loss on exit of membership agreement 105,000 - Loss on early extinguishment of debt - 150,000 Share-based compensation expense 1,403,000 934,000 Benefit for accounts receivable allowance (31,000 ) (201,000 )Benefit for income taxes (1,274,000 ) (1,654,000 )Changes in assets and liabilities (1,504,000 ) (1,329,000 )Net cash used in operating activities (3,493,000 ) (5,709,000 )Net cash from operating activities - (2,264,000 ) 5,701,000 discontinued operations Cash flows used in investing activities: Purchases of property and equipment (44,000 ) (52,000 )Capitalization of software development (1,784,000 ) (2,800,000 )costsProceeds from sale of ECM assets 11,288,000 - Net cash provided by (used in) investing 9,460,000 (2,852,000 )activitiesNet cash used in investing activities - - (558,000 )discontinued operations Cash flows from financing activities: Proceeds from issuance of common stock - 9,663,000 Payments for costs directly attributable to - (711,000 )the issuance of common stockProceeds from term loan 2,301,000 4,000,000 Principal payments on term loan (4,000,000 ) (4,030,000 )Redemption of Series A Convertible (5,791,000 )Preferred StockOther (1,244,000 ) (440,000 )Net cash used in financing activities (2,943,000 ) 2,691,000 Net decrease in cash and cash equivalents 760,000 (727,000 )Cash and cash equivalents at beginning of 1,649,000 2,376,000 yearCash and cash equivalents at end of year 2,409,000 $ 1,649,000

STREAMLINE HEALTH SOLUTIONS, INC.New Bookings(Unaudited)

January 31, 2021 Three Months Ended Twelve Months EndedSystems Sales $ 203,000 $ 560,000Professional Services 175,000 808,000Audit Services 37,000 114,000Maintenance and Support 203,000 583,000Software as a Service 1,200,000 5,327,000Q4 2020 Bookings $ 1,818,000 $ 7,392,000Q4 2019 Bookings (1) $ 763,000 $ 7,892,000 (1) January 31, 2020 excludes bookings from the ECM business of approximately$242,000 for the three monthsended January 31, 2020 and $731,000 for thetwelve months ended January 31, 2020.

STREAMLINE HEALTH SOLUTIONS, INC.Reconciliation of loss from continuing operations to non-GAAP Adjusted EBITDA (in thousands)(Unaudited)

Three Months Ended January Twelve Months Ended January 31, 31, 2021 2020 2021 2020 Loss fromcontinuing $ (1,590 ) $ (2,422 ) $ (4,799 ) $ (6,244 ) operationsInterest 12 70 51 309 expenseIncome tax(benefit) 276 (498 ) (1,260 ) (1,632 ) expenseDepreciation 17 11 64 43 Amortization ofcapitalizedsoftware 534 661 1,662 1,494 developmentcostsAmortizationof intangible 121 130 491 554 assetsAmortizationof other 117 272 359 480 costsEBITDA (513 ) (1,776 ) (3,432 ) (4,996 ) Share-basedcompensation 400 214 1,403 934 expenseImpairment oflong-lived - - - - assetsLoss ondisposal of - - - - fixed assetsNon-cashvaluation (9 ) 17 31 64 adjustmentsLoss on exitof operating - - 105 - leaseOthernon-recurring - 786 - 1,342 operatingexpensesOthernon-recurring - 150 - 308 expensesAdjusted $ (122 ) $ (609 ) $ (1,893 ) $ (2,348 ) EBITDAAdjustedEBITDA per dilutedshare:Net loss percommon share $ (0.05 ) $ (0.08 ) $ (0.16 ) $ (0.27 ) ? dilutedAdjustedEBITDA peradjusted $ - $ (0.02 ) $ (0.06 ) $ (0.10 ) dilutedshare(1) Dilutedweighted 30,528,863 29,653,550 30,152,383 22,739,679 averageshares (2)

Includableincremental 682,389 442,627 488,359 2,343,382 shares ?AdjustedEBITDA(3)Adjusteddiluted 31,211,252 30,096,177 30,640,742 25,083,061 shares (1) Adjusted EBITDA per adjusted diluted share for our common stock iscomputed using the more dilutive of the two-class method or the if-convertedmethod.(2) Diluted EPS for our common stock was computed using the if-convertedmethod, which yields the same result as the two-class method.(3) The number of incremental shares that would be dilutive under anassumption that the Company is profitable during the reported period, which isonly applicable for a period in which the Company reports a GAAP net loss. If a GAAP profit is earned in the reported periods, no additional incremental sharesare assumed.