Streamline Health Solutions, Inc.

Greetings and welcome to Streamlined Health Solutions second quarter 2021 earnings conference call and corporate update. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, you may press star one on your telephone keypad. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jacob Goldberger, Director of Investor Relations, FP&A. Please go ahead.

Thank you for joining us for the Corporate Update and Financial Results Review of Streamlined Health Solutions for the second quarter of 2021, which ended July 31, 2021. As the conference call operator indicated, my name is Jacob Goldberger. Joining me on the call today are T. Green, President and Chief Executive Officer and Chairman of the Board, Javad Shaikh, President and Chief Executive Officer of AdLead, a streamlined health company, Randy Salisbury, Chief Sales and Marketing Officer, and Tom Gibson, Chief Financial Officer. At the conclusion of today's prepared 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 our results, you can retrieve it from the company's website at www.streamlinehealth.net. or from numerous financial websites. Before we begin with 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 and unaudited figures related to our recent acquisition of AdWords. 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.

Go ahead, T. Thank you, Jacob, and thank you all for joining us this morning. In addition to our quarterly report, we're excited to discuss our recent acquisition of Abilene. As Jacob mentioned, today we are joined by Javad Shaikh, who founded and grew Abilene and will continue to lead that business going forward. Javad will not be making a regular appearance on these calls, but we want you all to hear directly from him about Avalit Solutions and his vision for the future. He will also be available for Q&A following today's call. Our company follows a straightforward formula for revenue growth, and that is innovation, like our paradigm-shifting evaluator software, plus service, like our customer success team, equals growth. I plus S equals G. Regarding our innovative evaluator solution, we continue to expand its capabilities and improve its features and benefits. Our customer success team provides support and reviews evaluators' top and bottom line effects on our customers' revenue. This service and innovation combination continues to yield growth. Today, we have a strong stable of referenceable customers, an expanding list of reseller partners, and growing number of large, well-known healthcare providers in our sales pipeline. Moving now to our financial results. As a reminder, Avalit is not included in these figures. Total revenue for the second quarter of 2021 was $2.9 million, in line with the second quarter of 2020. Notably, our SAS revenue grew 59% from second quarter 2020 to 2021. Recurring revenue accounted for 84% of total revenue this quarter, compared to 71% for the second quarter of 2020. Second quarter 2020, adjusted EBITDA was a loss of $800,000 compared to an adjusted EBITDA loss of $400,000 during the second quarter of 2020. As of July 31, 2021, we had $15.8 million of cash on hand with no bank debt. In connection with our acquisition of Avali, we utilized approximately $13 million of our cash and entered into a $10 million term loan with BridgeBank. We also issued $8 million of restricted stock to the sellers to round out the purchase price at closing. Our cap table remains clean with only one class of common stock. Tom Gibson, our CFO, will provide additional details about our financials during his prepared remarks. Over the last two years, the Streamline team has made significant strides to position our company for growth. We eliminated our outstanding preferred stock to clean up our cap table, cleared the bank debt on our balance sheet, found a great fit for our legacy ECM business, and successfully raised $16 million in our March 2021 offering. These achievements put us in a position to complete our recent acquisition of Abilene, a major milestone for our company. Our leadership team was impressed with Abilene's solutions And we're not the only ones. Some of the largest hospital systems in the nation have embraced Avalie's revenue cycle solutions. As a result, the company has enjoyed rapid revenue growth as of June 30, 2021. Avalie's SAS ARR run rate was $5.7 million. And total revenue for the trailing 12 months totaled $10.2 million. We expect that Avalie's SAS revenue for fiscal 2021 will be more than twice that of fiscal 2020. By combining Avali with Streamline, we have nearly doubled our consolidated revenue, moved closer to profitability, and expanded our portfolio of products and revenue cycle management for all of our customers. We are thrilled to welcome Javad Shaikh and the Avali team to Streamline. They have done a tremendous job building a successful business. Now it is my pleasure to introduce the newest member of our team, Javad Shaikh, the President and CEO of Avali, a streamlined health company.