Streamline Health Solutions, Inc.

Hello, and welcome to the Streamlined Health Solutions first quarter 2021 earnings conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Jacob Goldberger, Director of Investor Relations and SDMA. Please go ahead, sir.

Thank you for joining us to review the financial results of Streamlined Health Solutions for the first quarter of 2021, which ended April 30th, 2021. As the conference call operator indicated, my name is Jacob Goldberger, and I'm responsible for our company's investor relations activities. Joining me on the call today are T. Green, President and Chief Executive Officer and Chairman of the Board, Tom Gibson, Chief Financial Officer, and Randy Salisbury, Chief Sales and Marketing Officer. At the conclusion of today's private remarks, we will open the call for a question and answer session. If anyone participating on today's call does not have a full-text copy of our press release announcing these results, you can retrieve it from the company's website at www.streamlinehealth.net or from numerous financial websites. Before we begin with our prepared remarks, we want to be sure we are clear for everyone on the record how certain information which may be provided today, as with all of our earnings calls, should be viewed. We therefore submit for the record the following statement. Statements made on this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These are subject to risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those we may discuss. Please refer to the company's press releases and filings made with the U.S. Securities and Exchange Commission, including our most recent Form 10-K Annual Report, which is on file with the SEC for more information about these risks, uncertainties, and assumptions and other factors. As always, we are presenting management's current analysis of these items as of today. Participants on this call should take into account these risks when evaluating the topics we will discuss. Please note, Streamline Health is not undertaking any commitment or obligation to publicly revise any such forward-looking statements made today. On today's call, we will discuss non-GAAP financial measures such as adjusted EBITDA. Management uses these measures to help provide better insight into our financial performance. However, certain items of income and expense are not included in these measures, so these calculations may differ from those which another entity may utilize in calculating their own non-GAAP measures. To help you compare these amounts on consistent terms, please refer to our website at www.streamlinehealth.net and our earnings release for a reconciliation of such non-GAAP measures to the most comparable GAAP measures. I would now like to turn the call over to T. Green, President and Chief Executive. Officer, thank you.

Thank you, Jacob, and thank you all for joining us this morning. As I'm sure most of you are experiencing, our country is beginning to return to more normal procedures. The prevalence of vaccines has slowed the spread of the virus, which is proving beneficial to all of us. Not only are Americans able to return to a sense of normalcy, including gathering with friends and dining out, but our healthcare providers are experiencing the same, returning to more normal operations as the number of COVID patients decreases, allowing for more elective procedures which is a primary source of top line revenue for them. I stated in our previous earnings call that we anticipated a change in the buying patterns of hospitals as they return to more usual decentralized planning and budgeting. And we are in fact seeing this among our many evaluator prospects. But the demand to fund and implement all of the individual department initiatives that have been on the shelf since last March are creating a bottleneck that each healthcare provider is working through in their own way. Most hospitals need to ensure new contracts have approved funds in the macro budget before proceeding to the next step, which is committing internal IT resources so that new initiatives will be implemented on a timely basis. The final step in most instances is legal review and to finalize sales contracts. Every legal department we deal with today is inundated with these new requests and new contracts. I mention this because while we are seeing a fall in our prospects linear planning centered around caring for COVID patients, we are not yet back to normal. As Randy will detail in a few minutes, our pipeline remains strong with more opportunities moving into the last stage of the sales process. We are forced to be patient while we get through the backlog of new technology approvals and signatures. We know the moves necessary to advance our technology to the top of the list, and I believe we are doing a good job of this given the powerful return on investment our evaluator technology has proven to deliver. The end result from my chair is that contract signatures will be lumpy over the near term while we wait for final approvals on a number of contracts. There are reasons for my enthusiasm around our evaluator technology besides the strength of our sales pipeline created by our direct selling efforts. I mentioned last quarter that we are signing new reseller agreements with meaningful players in the healthcare provider industry. During the quarter, we signed a referral agreement with a large consulting firm. And just recently, we signed a referral agreement with R1 RCM, a public company I'm sure many of you are familiar with. R1, NASDAQ symbol RCM, is a leading provider of technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups. We are very excited about the potential for growth from these new agreements and others we are currently negotiating. We will keep you posted as these relationships grow in the coming quarters. Moving now to our financial results. Total revenue for the first quarter of 2021 was $3 million compared to $2.8 million during the first quarter of 2020. Notably, our SAS revenue grew 32% from the first quarter of 2020 to 2021. Recurring revenue accounted for 76% of total revenue this quarter which was the same as the first quarter of 2020. First quarter of 2021 adjusted EBITDA was a loss of $700,000 compared to an adjusted EBITDA loss of $600,000 during the fiscal quarter of 2020. As of April 30, 2021, we had $16.7 million of cash on hand with no bank debt. As we announced late in February, we successfully closed a public offering during the quarter resulting in gross proceeds to the company of $16.1 million. Our cap table remains clean with approximately 43 million fully diluted shares outstanding. As of today, all of which is common stock. Our finance team has completed the paperwork to apply for conversion of our PVP loan secured in April 2020 into a grant. Tom Gibson, our CFO, will provide additional details about our financials hearing his prepared remarks. The Stringline team has built a strong operational foundation that will enable us to support accelerated revenue growth. We are using the new capital we raised in February to make vital investments in sales, marketing, and key software enhancements that will enable us to continue to provide world-class service to our clients and lead an industry movement to improve the financial performance of every healthcare provider through our evaluator pre-bill coding analysis technology. I will now turn the call over to our Chief Sales and Marketing Officer, Randy Salisbury, for an update on sales activities and the state of our pipeline. Randy?