GlobeNewswire Inc | Sep 8, 2021 04:30PM EDT

September 08, 2021

Second quarter 2021 Revenues of $2.9 million; ($0.1 million) Net Loss; ($0.8 million) Adjusted EBITDA

Atlanta, GA , Sept. 08, 2021 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (NASDAQ: STRM) (Streamline), 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 of fiscal year 2021, which ended July 31, 2021.

Total revenues for the second quarter of fiscal 2021 were $2.9 million, consistent with the prior year period. SaaS revenue grew approximately 59%, compared to the same quarter a year ago. The consistent revenue volume during the quarter was the result of higher revenue from SaaS offset by lower revenue from professional services, software licenses and maintenance and support. Recurring revenue comprised 84% of second quarter fiscal 2021 revenue compared to 71% of second quarter fiscal 2020 revenue.

Net loss for the second quarter of fiscal 2021 was ($0.1 million) as compared to a net loss of ($1.1 million) during the second quarter of fiscal 2020. Second quarter fiscal 2021 net loss included $11,000 of income from discontinued operations of the Companys legacy ECM business, the sale of which closed on February 24, 2020, compared to $28,000 of income from discontinued operations during the second quarter of fiscal 2020. Income from discontinued operations was offset by a loss from continuing operations for the three months ended July 31, 2021 and 2020 of ($0.1 million) and ($1.2 million), respectively. Loss from continuing operations for the three months ended July 31, 2021 included $2.3 million of income associated with loan forgiveness.

Adjusted EBITDA for the second quarter of fiscal 2021 was a loss of ($0.8 million), compared to an adjusted EBITDA loss of ($0.4 million) in the second quarter of fiscal 2020.

As a result of our teams execution to restructure and position Streamline for growth, we were thrilled to enter a new chapter with our recent acquisition of Avelead. Thanks to our focus on improved sales and customer success, we are ready to capitalize on our tremendous market opportunity while maintaining strong relationships with our existing customers. stated Tee Green, President and Chief Executive Officer, Streamline.

We believe that the Delta variant of COVID has delayed our reporting of successes on the sales side, however, it has not deterred our improving the systems and processes that enable the growth we are expecting. Today, we are more capable than ever of supporting our healthcare provider customers through pre-bill revenue cycle solutions to ensure their revenue integrity and improved financial performance.

Highlights from the second quarter ended July 31, 2021 included:

Revenue for the second quarter of fiscal 2021 was $2.9 million; SaaS ? revenue grew 11%, sequentially, compared to the first quarter of fiscal 2021; ? Loss from continuing operations for the second quarter of fiscal 2021 was ($0.1 million); ? Adjusted EBITDA for the second quarter of fiscal 2021 was ($0.8 million); ? Total bookings (total contract value) for the second quarter of fiscal 2021 were $1.6 million.

Conference Call

The Company will conduct a conference call to review the results and to provide additional detail about its recent acquisition on Thursday, September 9, 2021 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 877-407-8291.

A replay of the conference call will be available from Thursday September 9, 2021 at 12:00 PM ET to Thursday, September 16, 2021 at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415 with conference ID 13722259. 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.

Non-GAAP Financial Measures

Streamline reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Streamlines management also evaluates and makes operating decisions using various other measures. One such measure is adjusted EBITDA, which is a non-GAAP financial measure. Streamlines management believes that this measure provides useful supplemental information regarding the performance of Streamlines business operations.

Streamline 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

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 at www.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 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 Companys 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 Companys 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, the Companys 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 managements 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.

ContactJacob GoldbergerDirector, Investor Relations and FP&A303-887-9625Jacob.goldberger@streamlinehealth.net

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

Three Months Ended Six Months Ended July 31, July 31, 2021 2020 2021 2020 Revenues: Software $ - $ 215,000 $ 135,000 $ 215,000 licensesProfessional 30,000 160,000 108,000 312,000 servicesAudit Services 443,000 463,000 947,000 1,007,000 Maintenance 1,087,000 1,228,000 2,144,000 2,486,000 and supportSoftware as a 1,308,000 821,000 2,485,000 1,711,000 serviceTotal revenues 2,868,000 2,887,000 5,819,000 5,731,000 Operating expenses:Cost ofsoftware 143,000 125,000 279,000 202,000 licensesCost ofprofessional 261,000 269,000 475,000 510,000 servicesCost of audit 376,000 373,000 765,000 733,000 servicesCost ofmaintenance 80,000 182,000 166,000 368,000 and supportCost ofsoftware as a 578,000 403,000 1,188,000 808,000 serviceSelling,general and 2,515,000 2,284,000 5,068,000 4,576,000 administrativeResearch and 964,000 509,000 1,941,000 1,193,000 developmentNon-routine 336,000 - 777,000 - costsLoss on exitof membership - - - 105,000 agreementTotaloperating 5,253,000 4,145,000 10,659,000 8,495,000 expensesOperating loss (2,385,000 ) (1,258,000 ) (4,840,000 ) (2,764,000 )Other(expense) income:Interest (9,000 ) (13,000 ) (22,000 ) (27,000 )expenseMiscellaneous (8,000 ) (64,000 ) 6,000 (82,000 )expenseForgiveness ofPPP loan and 2,327,000 - 2,327,000 - accruedinterestLoss before (75,000 ) (1,335,000 ) (2,529,000 ) (2,873,000 )income taxesIncome taxbenefit 4,000 172,000 (5,000 ) 733,000 (expense)Loss fromcontinuing $ (71,000 ) $ (1,163,000 ) $ (2,534,000 ) $ (2,140,000 )operationsIncome fromdiscontinued operations:Gain on saleof - 4,000 - 6,013,000 discontinuedoperationsIncome fromdiscontinued 11,000 104,000 332,000 241,000 operationsIncome tax - (80,000 ) - (1,576,000 )expenseIncome fromdiscontinued 11,000 28,000 332,000 4,678,000 operationsNet (loss) $ (60,000 ) $ (1,135,000 ) $ (2,202,000 ) $ 2,538,000 income Basic Earnings per Share:Continuing $ (0.00 ) $ (0.04 ) $ (0.06 ) $ (0.07 )operationsDiscontinued 0.00 0.00 0.01 0.16 operationsNet (loss) $ (0.00 ) $ (0.04 ) $ (0.05 ) $ 0.09 incomeWeightedaverage number 41,288,709 30,026,658 39,393,333 29,897,236 of commonshares - basic DilutedEarnings per Share:Continuing $ (0.00 ) $ (0.04 ) $ (0.06 ) $ (0.07 )operationsDiscontinued 0.00 0.00 0.01 0.15 operationsNet (loss) $ (0.00 ) $ (0.04 ) $ (0.05 ) $ 0.08 incomeWeightedaverage numberof common 41,737,231 30,421,473 39,960,998 30,229,595 shares ?diluted

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

July 31, January 31, 2021 2021 Assets Current assets: Cash and cash equivalents $ 15,847,000 $ 2,409,000 Accounts receivable, net 2,625,000 2,929,000 Contract receivables 236,000 174,000 Prepaid and other current assets 788,000 1,216,000 Current assets from discontinued operations 181,000 587,000 Total current assets 19,677,000 7,315,000 Non-current assets: Property and equipment, net 76,000 104,000 Right of use asset on operating lease 306,000 391,000 Capitalized software development costs, net 5,667,000 5,945,000 Intangible assets, net 393,000 624,000 Goodwill 10,712,000 10,712,000 Other non-current assets 1,003,000 873,000 Long-term assets from discontinued operations 3,000 13,000 Total non-current assets 18,160,000 18,662,000 $ 37,837,000 $ 25,977,000 Liabilities and Stockholders? Equity Current liabilities: Accounts payable $ 363,000 $ 272,000 Accrued expenses 1,324,000 908,000 Current portion of term loan - 1,534,000 Deferred revenues 4,474,000 3,862,000 Current portion of operating lease obligation 201,000 198,000 Current liabilities from discontinued 283,000 595,000 operationsTotal current liabilities 6,645,000 7,369,000 Non-current liabilities: Term loan, net of current portion - 767,000 Deferred revenues, less current portion 163,000 130,000 Operating Lease obligations, less current 129,000 222,000 portionTotal non-current liabilities 292,000 1,119,000 Total liabilities 6,937,000 8,488,000 Stockholders? equity 30,900,000 17,489,000 $ 37,837,000 $ 25,977,000

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

Six Months Ended July 31, 2021 2020 Cash flows from continuing operating activities:Loss from continuing operations $ (2,534,000 ) $ (2,140,000 )Depreciation 37,000 31,000 Amortization of capitalized software 984,000 651,000 development costsAmortization of intangible assets 231,000 247,000 Amortization of other deferred costs 242,000 153,000 Valuation adjustments - 31,000 Loss on exit of membership agreement - 105,000 Share-based compensation expense 1,122,000 575,000 Benefit for accounts receivable (1,000 ) (15,000 )allowanceForgiveness of PPP Loan and accrued (2,327,000 ) - interestBenefit for income taxes - (733,000 )Changes in assets and liabilities 709,000 (876,000 ) Net cash used in operating activities (1,537,000 ) (1,971,000 ) Net cash from operating activities - 436,000 (2,374,000 )discontinued operations Cash flows used in investing activities:Capitalization of software development (706,000 ) (1,094,000 )costsPurchases of property and equipment (3,000 ) (34,000 )Proceeds from sale of ECM assets 800,000 11,288,000 Net cash provided by investing 91,000 10,160,000 activities Cash flows from financing activities: Proceeds from issuance of common stock 16,100,000 - Payments for costs directlyattributable to the issuance of common (1,318,000 ) - stockProceeds from term loan - 2,301,000 Principal payments on term loan - (4,000,000 )Other (334,000 ) (58,000 )Net cash provided by (used in) 14,448,000 (1,757,000 )financing activitiesNet increase in cash and cash 13,438,000 4,058,000 equivalentsCash and cash equivalents at beginning 2,409,000 1,649,000 of periodCash and cash equivalents at end of $ 15,847,000 $ 5,707,000 period

STREAMLINE HEALTH SOLUTIONS, INC.New Bookings(Unaudited)

July 31, 2021 Three Months Six Months Ended EndedSoftware licenses $ - 135,000 Professional Services 149,950 348,950 Audit Services 21,800 407,800 Maintenance and Support - 135,000 Software as a Service 1,455,000 3,180,000 Q2 2021 Bookings $ 1,626,750 $ 4,206,750 Q2 2020 Bookings $ 2,865,000 $ 4,150,000

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

Three Months Ended July 31, Six Months Ended July 31, 2021 2020 2021 2020 Loss fromcontinuing $ (71 ) $ (1,163 ) $ (2,534 ) $ (2,140 )operationsInterest 9 13 22 27 expenseIncome tax(benefit) (4 ) (172 ) 5 (733 )expenseDepreciation 16 17 37 31 Amortizationofcapitalized 478 362 984 651 softwaredevelopmentcostsAmortizationof intangible 116 124 231 247 assetsAmortizationof other 126 78 242 153 costsEBITDA 670 (741 ) (1,013 ) (1,764 )Share-basedcompensation 557 349 1,122 613 expenseNon-cashvaluation - 14 - 31 adjustmentsLoss on exitof operating - - - 105 leaseOthernon-recurring 336 - 793 - operatingexpensesForgivenessof PPP Loan (2,327 ) - (2,327 ) - and accruedinterestAdjusted $ (764 ) $ (378 ) $ (1,425 ) $ (1,015 )EBITDAAdjustedEBITDA per dilutedshare:Net loss percommon share $ (0.00 ) $ (0.04 ) $ (0.05 ) $ 0.08 ? dilutedAdjustedEBITDA per $ (0.02 ) $ (0.01 ) $ (0.04 ) $ (0.03 )adjusteddiluted share Dilutedweighted 41,288,709 30,026,658 39,393,333 29,897,236 averagesharesIncludableincrementalshares ? 448,522 394,815 567,665 332,359 AdjustedEBITDAAdjusteddiluted 41,737,231 30,421,473 39,960,998 30,229,595 shares