Wed, 21 Aug 2019

<p><strong><em>Fourth Quarter 2018: Revenues $5.5 Million; Net Loss ($3.1 Million); Adjusted EBITDA $1.1 Million</em></strong></p><p><strong><em>Fiscal Year 2018: Revenues $22.4 Million; Net Loss ($5.9 Million); Adjusted EBITDA $2.9 Million; Cash from Operations $1.4 Million</em></strong></p><p><strong>ATLANTA, GA / ACCESSWIRE / April 22, 2019 / </strong><a href="">Streamline Health Solutions, Inc.</a> (NASDAQ: STRM), provider of integrated solutions, technology-enabled services and analytics supporting revenue cycle optimization for healthcare enterprises, today announced financial results for the fourth quarter and fiscal year 2018, which ended January 31, 2019.</p><p>&nbsp;</p><p>Revenues for the three-month period ended January 31, 2019 were approximately $5.5 million, up slightly from revenues for the quarter ended October 31, 2018, but down approximately 10% from fourth quarter of fiscal 2017. Recurring revenue comprised 88% of total revenue in the quarter ended January 31, 2019. Revenues for fiscal year 2018 were $22.4 million, down approximately 8% from $24.3 million the previous fiscal year. Recurring revenues for the year constituted 80% of overall revenue.</p><p>Net loss for the fourth quarter was approximately ($3.1 million) as compared to net income of $38,000 in the same period a year ago. Excluding the impairment charge of ($3.7 million) described below and the adjustment to costs associated with the New York facility sublease of $0.3 million, net income for the fourth quarter of fiscal 2018 would have been $251,000, which would have been higher than the fourth quarter of fiscal 2017. Net loss for the fiscal year 2018 was approximately ($5.9 million) as compared to a net loss of approximately ($3.1 million) in fiscal year 2017. Net loss for fiscal 2018 would have been ($1.2 million) before the impairment charge of ($3.7 million) and exit costs of ($1.0 million).</p><p>Adjusted EBITDA for the fourth quarter of 2018 was approximately $1.1 million, down from approximately $1.2 million in the fourth quarter of 2017. Adjusted EBITDA for fiscal year 2018 totaled $2.9 million, up approximately 4% from the previous fiscal year.</p><p>&#39;Looking at this fiscal year and next, we are excited about our growth prospects for a number of reasons,&#39; stated David Sides, President and Chief Executive Officer, Streamline Health. &#39;First we doubled our bookings in 2018 over 2017 which we believe is partially a result of focusing our company&#39;s resources on solutions and services in the mid-revenue cycle portion of our industry. This segment of the market is projected to double in size from approximately $3 billion last year to $6 billion by 2026. Second, we have transitioned from investing in the development of new technologies, like eValuator&trade;, to investing in the sales of those new solutions, which is the logical next phase in any normal business cycle. Third, we have a new Chief Revenue Officer who has generated positive growth at his previous places of employment and a new Chairman of the Board with a very successful track record in our industry. On growth, we believe the effect of attrition in our legacy solutions will be less impactful in the years ahead due to our initiative to create multi-year contracts as we grow revenue around it.</p><p>In addition, our cost containment processes have delivered significant improvement in our Adjusted EBITDA which we plan to use to fuel revenue growth.&#39;</p><p>&#39;Looking back at our fourth quarter and fiscal year 2018 performance, we met or exceeded our objectives in some areas and fell short in others. We were pleased at the growth of our backlog, and year-over-year growth in bookings as we view these measures as a leading indicator of the foundation for growth that is expected in fiscal 2019. During the fourth quarter we addressed the need to write off all of the assets of our Clinical Analytics solution which the Company acquired in fiscal 2013 as a move into the healthcare research arena, which resulted in an impairment charge of $3.7 milion. The determination to write off these assets is also a reflection of our efforts to focus solely on the middle of the revenue cycle.&#39;</p><p>Highlights for the fourth quarter ended January 31, 2019 included:</p><p>Revenue for the fourth quarter 2018 was $5.5 million;</p><p>Net loss for the fourth quarter 2018 was $(3.1 million);</p><p>Adjusted EBITDA for the fourth quarter 2018 was $1.1 million;</p><p>Bookings for the fourth quarter 2018 were $1.1 million;</p><p>Bookings for fiscal year 2018 were up to $8.2 million from $4.7 million in fiscal year 2017;</p><p>Total Backlog for fiscal year 2018 was approximately $28.0 million.</p><p>Conference Call</p><p>The Company will conduct a conference call to review the results and provide Fiscal Year 2019 guidance on Tuesday, April 23, 2019 at 9:00 AM ET. Interested parties can access the call by joining the live webcast: <a href="">click here</a> to register. You can also join by phone by dialing 877-269-7756.</p><p>A replay of the conference call will be available from Tuesday, April 23, 2019 at 12:00 PM ET to Tuesday, April 30, 2019 at 12:00 PM ET by dialing 888-203-1112 and entering passcode 13689419. 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, <a href=""></a>.</p><p><em>*Non-GAAP Financial Measures</em></p><p><em>Streamline Health reports its financial results in accordance with U.S. generally accepted accounting principles (&#39;GAAP&#39;). Streamline Health&#39;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&#39;s management believes that this measure provides useful supplemental information regarding the performance of Streamline Health&#39;s business operations.</em></p><p><em>Streamline Health defines &#39;adjusted EBITDA&#39; 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.</em></p><p>About Streamline Health</p><p><a href="">Streamline Health Solutions, Inc.</a> (NASDAQ: STRM) is a healthcare industry leader in capturing, aggregating, and translating enterprise data into knowledge&shy; - actionable insights that support revenue cycle optimization for healthcare enterprises. We deliver integrated solutions and analytics that enable providers to drive reimbursement in a value-based world. 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 <a href=""></a>.</p><p>Safe Harbor statement under the Private Securities Litigation Reform Act of 1995</p><p><em>Statements made by Streamline Health Solutions, Inc. that are not historical facts are</em> <em>forward-looking statements</em> <em>that are</em> <em>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.</em> <em>Forward-looking statements contained in this press release include, without limitation, statements regarding the Company&#39;s growth prospects, estimates of backlog,</em> <em>industry trends and market growth, </em><em>results of investments in sales and marketing, adjusted EBITDA, success of future products</em> <em>and related expectations and assumptions. </em> <em>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</em> <em>and enhancement of current solutions, key strategic alliances with vendors</em> <em>and channel partners</em> <em>that resell the Company&#39;s solutions, the ability of the Company to control costs, the effects of cost-containment measures implemented by the Company, availability of solutions from third</em> <em>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, and the Company&#39;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&#39;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.</em></p><p><strong>Company Contact:</strong></p><p>Randy Salisbury</p><p>SVP, Chief Marketing Officer</p><p>(404) 229-4242</p><p><a href=""></a></p>

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