HealthStream, Inc. (NASDAQ: HSTM), a leading provider of workforce,
patient experience, and provider solutions for the healthcare industry,
announced today results for the third quarter ended September 30, 2015.
Highlights:
-
Revenues of $53.8 million in the third quarter of 2015, up 21% from
$44.5 million in the third quarter of 2014
-
Operating income of $4.3 million in the third quarter of 2015, down 9%
from $4.7 million in the third quarter of 2014. Operating income for
the 2015 third quarter was adversely impacted by the $2.1 million
reduction resulting from the deferred revenue write-down associated
with the HealthLine Systems acquisition
-
Net income of $2.6 million in the third quarter of 2015, down 24% from
$3.4 million in the third quarter of 2014, and earnings per share
(EPS) of $0.08 per share (diluted) in the third quarter of 2015,
compared to $0.12 per share (diluted) in the third quarter of 2014,
both of which were also adversely impacted by the deferred revenue
write-down mentioned above
-
Adjusted EBITDA1 of $9.3 million in the third quarter of
2015, up 17% from $7.9 million in the third quarter of 2014, which was
also adversely impacted by the aforementioned deferred revenue
write-down
Financial Results:
Third Quarter 2015 Compared to Third Quarter 2014
Revenues for the third quarter of 2015 increased by $9.3 million, or 21
percent, to $53.8 million, compared to $44.5 million for the third
quarter of 2014.
Revenues from our HealthStream Workforce Solutions segment increased by
$5.9 million, or 17 percent, when compared to the third quarter of 2014.
Revenues from our subscription-based solutions increased by
approximately $5.7 million, or 17 percent, over the prior year third
quarter due to a higher number of subscribers and more courseware
consumption by subscribers. Revenues from ICD-10-readiness training
products were approximately $6.3 million in the third quarter of 2015,
compared to $7.4 million in the prior year third quarter.
Revenues from our HealthStream Patient Experience Solutions segment
increased by $555,000, or seven percent, when compared to the third
quarter of 2014. Revenues from Patient Insights™ surveys—a survey
research product that generates recurring revenues—increased by
$862,000, or 14 percent, when compared to the third quarter of 2014.
Revenues from other products, including surveys conducted on annual or
bi-annual cycles and consulting/coaching services, collectively
decreased by $307,000, or 14 percent, when compared to the third quarter
of 2014.
Revenues from our HealthStream Provider Solutions segment increased by
$2.9 million when compared to the third quarter of 2014. Revenues from
the HealthLine Systems (HLS) acquisition, which was consummated
on March 16, 2015, were $2.7 million during the third quarter of 2015.
In September 2015, HealthStream introduced Echo, Inc. to the marketplace
as a newly formed company, combining its HLS and SyMed Development
businesses.
Generally accepted accounting principles (GAAP) require companies to
write down beginning balances of acquired deferred revenue balances as
part of “fair value” accounting as defined by GAAP. During the third
quarter of 2015, HealthStream reported a $2.1 million reduction to GAAP
revenues and corresponding reductions of $2.1 million to operating
income and $1.3 million to net income as a result of the deferred
revenue write-down for the HLS acquisition. During the third quarter of
2014, HealthStream reported a $150,000 reduction to GAAP revenues and
corresponding reductions of $150,000 to operating income and $108,000 to
net income as a result of deferred revenue write-downs. The table
reconciling GAAP to non-GAAP financial measures included in this release
shows the impact of beginning balance deferred revenue write-downs on
financial results.
Operating income was $4.3 million for the third quarter of 2015 compared
to $4.7 million for the third quarter of 2014. The decline in operating
income resulted from a variety of factors. Increases in revenue in the
third quarter of 2015 were partially offset by increased operating
expenses associated with personnel additions, higher royalties,
depreciation and amortization, and other general expenses. In addition,
operating income in the third quarter of 2015 was impacted by the $2.1
million deferred revenue write-down for the HLS acquisition.
Net income was $2.6 million in the third quarter of 2015 compared to
$3.4 million in the third quarter of 2014. Earnings per share were $0.08
per share (diluted) for the third quarter of 2015, compared to $0.12 per
share (diluted) for the third quarter of 2014. Both net income and
earnings per share for the prior year third quarter were positively
influenced by a lower effective tax rate, which resulted from
approximately $670,000 of tax benefits associated with research and
development tax credits.
Adjusted EBITDA (which we define as net income before interest, income
taxes, share-based compensation, and depreciation and amortization)
increased by 17 percent to $9.3 million for the third quarter of 2015,
compared to $7.9 million for the third quarter of 2014.
At September 30, 2015, the Company had cash and marketable securities of
$144.8 million. Capital expenditures totaled $3.7 million for the third
quarter of 2015.
Year-to-Date 2015 Compared to Year-to-Date 2014
For the first nine months of 2015, revenues were $153.1 million, an
increase of 22 percent over revenues of $125.3 million in the first nine
months of 2014. Operating income for the first nine months of 2015
decreased by four percent to $11.7 million, compared to $12.1 million
for the first nine months of 2014. Net income for the first nine months
of 2015 decreased by 12 percent to $6.8 million, compared to $7.7
million for the first nine months of 2014. Earnings per share were $0.23
per share (diluted) for the first nine months of 2015 compared to $0.28
per share (diluted) for the first nine months of 2014. During the first
nine months 2015, HealthStream reported a $5.3 million reduction to GAAP
revenues and corresponding reductions of $5.3 million to operating
income and $3.1 million to net income, primarily as a result of the
deferred revenue write-down for the HLS acquisition. During the first
nine months of 2014, HealthStream reported a $1.2 million reduction to
GAAP revenues and corresponding reductions of $1.2 million to operating
income and $772,000 to net income as a result of deferred revenue
write-downs. Both net income and earnings per share for the prior year
were positively influenced by a lower effective tax rate, which resulted
from approximately $670,000 of tax benefits associated with research and
development tax credits. Adjusted EBITDA increased by 25 percent to
$26.5 million for the first nine months of 2015 compared to $21.3
million for the first nine months of 2014.
Other Business Updates
At September 30, 2015, we had approximately 4,451,000 total subscribers
implemented to use and 4,528,000 total subscribers contracted to use our
subscription-based solutions. “Contracted subscribers” include both
those already implemented and those under contract that are in the
process of implementation. Revenue recognition commences when a contract
is fully implemented.
Annualized revenue per implemented subscriber for Workforce Solutions
We view the metric, “Annualized Revenue per Implemented Subscriber for
our Workforce Solutions” (“Workforce ARIS”), as one of several
insightful measures of our progress in growing the value of our customer
base. Workforce ARIS represents the quarter's revenue from our
subscription-based solutions, annualized, then divided by the quarter's
average total number of implemented subscribers. Our subscription-based
solutions include subscriptions to our platform applications, plus
courseware/content subscriptions.
For the third quarter of 2015, HealthStream’s Workforce ARIS was $35.82,
down slightly compared to last year’s third quarter of $35.91, while
increasing by $0.48 per implemented subscriber over the second quarter
of 2015. Subscription-based revenues increased 17 percent compared to
last year’s third quarter while implemented subscribers increased 16
percent over the same period last year.
Financial Outlook for 2015
For 2015, we anticipate that consolidated revenues will grow 19 to 22
percent as compared to 2014. We anticipate that revenue growth in our
Workforce Solutions segment will be in the 17 to 19 percent range and
approximately five to seven percent in our Patient Experience Solutions
segment. We anticipate our Provider Solutions segment’s revenue to
contribute between $12.5 million and $14 million in revenues during
2015. We expect the HLS acquisition to contribute between $7 million to
$9 million of this total, which is the estimated amount after the
write-down of the acquired deferred revenue balance as required under
GAAP.
We anticipate that the Company's 2015 full-year operating income will
decrease between 15 and 25 percent as compared to full-year 2014
results. This operating income range takes into account the following:
-
Between $6.5 million and $7.0 million of write-down to the deferred
revenue balances of HLS;
-
Approximately $1 million of transaction costs related to the HLS
acquisition incurred in the first quarter of this year;
-
An increased rate of investment over full-year 2014 in HealthStream’s
product development related to new products, enhancements to existing
products, and integration of acquired products—including an increase
in investment in HLS’s products;
-
An increase in expense related to sales and marketing investments,
including the Company’s customer Summit, which was held in Nashville
during the second quarter of 2015; and
-
Share-based compensation and related expenses of $1.65 million, which
was reflected in the second quarter, associated with stock awarded to
employees through the special contribution to the Company of
personally held shares by HealthStream’s CEO as previously disclosed.
We anticipate that our full-year 2015 capital expenditures will be
between $13 million and $15 million. We expect our effective tax rate
during 2015 to be between 42 percent and 44 percent.
The aforementioned guidance does not include the impact from any other
acquisitions that we may complete during 2015.
Commenting on third quarter 2015 results, Robert A. Frist, Jr., chief
executive officer of HealthStream, said, “Our results this quarter
position us well to finish the year strong—as reflected in our updated
financial guidance. This is an exciting time for HealthStream as we
further innovate for our customers with powerful solutions that support
their workforce—like we did with the launch of KnowledgeQ™ last week.
The introduction of Echo, Inc., HealthStream’s newly formed company
comprised of our HealthLine Systems and SyMed Development
businesses, established us as the market leader in medical staff
credentialing, payer credentialing, provider enrollment, provider
analytics, and contact center solutions—and there are numerous emerging
innovations in development from Echo. Across the Company, we believe
that our innovative solutions are helping healthcare organizations to
develop their workforce and improve outcomes and, in turn, improve the
quality of healthcare.”
A conference call with Robert A. Frist, Jr., chief executive officer,
Gerard M. Hayden, Jr., senior vice president and chief financial
officer, and Mollie Condra, vice president of investor relations and
corporate communications, will be held on Tuesday, October 20, 2015, at
9:00 a.m. (EDT). To listen to the conference, please dial 877- 647-2842
(no conference ID needed) if you are calling within the domestic U.S. or
Canada. If you are an international caller, please dial 914-495-8564 (no
conference ID needed). The conference may also be accessed by going to http://ir.healthstream.com/events.cfm
for the simultaneous Webcast of the call, which will subsequently be
available for replay. The replay telephone numbers are 855-859-2056
(conference ID #56007526) for U.S. and Canadian callers and 404-537-3406
(conference ID #56007526) for international callers.
Use of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures,
including non-GAAP net income, non-GAAP operating income, non-GAAP
revenue, and adjusted EBITDA, which are used by management in analyzing
the Company’s financial results and ongoing operational performance.
In order to better assess the Company’s financial results, management
believes that net income before interest, income taxes, share-based
compensation, depreciation and amortization (“adjusted EBITDA”) is a
useful measure for evaluating the operating performance of the Company
because adjusted EBITDA reflects net income adjusted for non-cash and
non-operating items. We believe that adjusted EBITDA is also used by
many investors to assess the Company’s results from current operations.
Adjusted EBITDA is a non-GAAP financial measure and should not be
considered as a measure of financial performance under GAAP. Because
adjusted EBITDA is not a measurement determined in accordance with GAAP,
it is susceptible to varying calculations. Accordingly, adjusted EBITDA,
as presented, may not be comparable to other similarly titled measures
of other companies.
Over the past few years, the Company has acquired businesses whose net
tangible assets include deferred revenue. In accordance with GAAP
reporting requirements, the Company may record a write down of deferred
revenue to fair value as defined in GAAP. If the Company is required to
record a write-down of deferred revenue, it may result in lower
recognized revenue, operating income, and net income in subsequent
periods.
In connection therewith, this release presents below non-GAAP revenues,
non-GAAP operating income, and non-GAAP net income, which in each such
case reflects the corresponding GAAP figures adjusted to exclude the
impact of the deferred revenue write-down associated with fair value
accounting for acquired businesses as referenced above. Management
believes that the presentation of these non-GAAP financial measures
assists investors in understanding the Company’s performance between
periods excluding the impact of this deferred revenue write-down and
provides a useful measure of the ongoing performance of the Company.
Both on a quarterly and year-to-date basis, the revenue for the acquired
business is deferred and typically recognized over a one to two year
period following the completion of any particular acquisition, so our
GAAP revenues for this one to two year period will not reflect the full
amount of revenues that would have been reported if the acquired
deferred revenue was not written down to fair value.
These non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance which
are prepared in accordance with GAAP and may be different from non-GAAP
financial measures used by other companies. Investors are encouraged to
review the reconciliations of our GAAP to non-GAAP financial measures,
which are set forth below in this release.
About HealthStream
HealthStream (NASDAQ: HSTM) is dedicated to improving patient outcomes
through the development of healthcare organizations’ greatest asset:
their people. Our unified suite of solutions is contracted by,
collectively, approximately 4.5 million healthcare employees in the U.S.
for workforce development, training & learning management, talent
management, credentialing, privileging, provider enrollment, performance
assessment, and managing simulation-based education programs. Our
research solutions provide valuable insight to healthcare providers to
meet HCAHPS requirements, improve the patient experience, engage their
workforce, and enhance physician alignment. Based in Nashville,
Tennessee, HealthStream has additional offices in Laurel, Maryland;
Brentwood, Tennessee; Pensacola, Florida; Jericho, New York; and San
Diego, California. For more information, visit http://www.healthstream.com
or call 800-933-9293.
1 Adjusted EBITDA is a non-GAAP financial measure. A
reconciliation of adjusted EBITDA to net income and disclosure regarding
why we believe Adjusted EBITDA provides useful information to investors
is included in this release.
|
|
|
|
|
|
HEALTHSTREAM, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Revenues
|
|
|
$
|
53,835
|
|
|
$
|
44,525
|
|
|
$
|
153,136
|
|
|
|
$
|
125,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (excluding depreciation and amortization)
|
|
|
|
23,126
|
|
|
|
19,115
|
|
|
|
65,752
|
|
|
|
|
54,778
|
|
Product development
|
|
|
|
6,195
|
|
|
|
4,211
|
|
|
|
16,654
|
|
|
|
|
12,052
|
|
Sales and marketing
|
|
|
|
8,377
|
|
|
|
7,585
|
|
|
|
26,052
|
|
|
|
|
21,783
|
|
Other general and administrative
|
|
|
|
7,173
|
|
|
|
6,058
|
|
|
|
20,851
|
|
|
|
|
16,651
|
|
Depreciation and amortization
|
|
|
|
4,639
|
|
|
|
2,815
|
|
|
|
12,148
|
|
|
|
|
7,938
|
|
Total operating expenses
|
|
|
|
49,510
|
|
|
|
39,784
|
|
|
|
141,457
|
|
|
|
|
113,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
4,325
|
|
|
|
4,741
|
|
|
|
11,679
|
|
|
|
|
12,149
|
|
Other income (expense), net
|
|
|
|
28
|
|
|
|
49
|
|
|
|
(7
|
)
|
|
|
|
117
|
|
Income before income taxes
|
|
|
|
4,353
|
|
|
|
4,790
|
|
|
|
11,672
|
|
|
|
|
12,266
|
|
Income tax provision
|
|
|
|
1,739
|
|
|
|
1,354
|
|
|
|
4,862
|
|
|
|
|
4,519
|
|
Net income
|
|
|
$
|
2,614
|
|
|
$
|
3,436
|
|
|
$
|
6,810
|
|
|
|
$
|
7,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic
|
|
|
$
|
0.08
|
|
|
$
|
0.12
|
|
|
$
|
0.23
|
|
|
|
$
|
0.28
|
|
Net income per share, diluted
|
|
|
$
|
0.08
|
|
|
$
|
0.12
|
|
|
$
|
0.23
|
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
31,643
|
|
|
|
27,605
|
|
|
|
29,527
|
|
|
|
|
27,542
|
|
Diluted
|
|
|
|
32,029
|
|
|
|
28,047
|
|
|
|
29,905
|
|
|
|
|
27,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTHSTREAM, INC.
Condensed Consolidated Balance Sheets
(In thousands)
|
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|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
2015
|
|
|
2014(1)
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|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
67,441
|
|
|
|
$
|
81,995
|
|
|
|
Marketable securities
|
|
|
|
77,367
|
|
|
|
|
38,973
|
|
|
|
Accounts and unbilled receivables, net
|
|
|
|
35,178
|
|
|
|
|
34,845
|
|
|
|
Prepaid and other current assets
|
|
|
|
21,688
|
|
|
|
|
18,798
|
|
|
|
Total current assets
|
|
|
|
201,674
|
|
|
|
|
174,611
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized software development, net
|
|
|
|
13,768
|
|
|
|
|
12,706
|
|
|
|
Property and equipment, net
|
|
|
|
11,847
|
|
|
|
|
9,442
|
|
|
|
Goodwill and intangible assets, net
|
|
|
|
142,018
|
|
|
|
|
56,709
|
|
|
|
Other assets
|
|
|
|
5,410
|
|
|
|
|
3,794
|
|
|
|
Total assets
|
|
|
$
|
374,717
|
|
|
|
$
|
257,262
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable, accrued and other liabilities
|
|
|
$
|
20,542
|
|
|
|
$
|
23,543
|
|
|
|
Deferred revenue
|
|
|
|
64,931
|
|
|
|
|
53,716
|
|
|
|
Total current liabilities
|
|
|
|
85,473
|
|
|
|
|
77,259
|
|
|
|
Deferred tax liabilities, non-current
|
|
|
|
5,829
|
|
|
|
|
5,838
|
|
|
|
Deferred revenue, noncurrent
|
|
|
|
3,893
|
|
|
|
|
3,657
|
|
|
|
Other long-term liabilities
|
|
|
|
766
|
|
|
|
|
2,649
|
|
|
|
Total liabilities
|
|
|
|
95,961
|
|
|
|
|
89,403
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
279,023
|
|
|
|
|
174,926
|
|
|
|
Comprehensive loss
|
|
|
|
(47
|
)
|
|
|
|
(37
|
)
|
|
|
Accumulated deficit
|
|
|
|
(220
|
)
|
|
|
|
(7,030
|
)
|
|
|
Total shareholders’ equity
|
|
|
|
278,756
|
|
|
|
|
167,859
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
374,717
|
|
|
|
$
|
257,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Derived from audited financial statements contained in the
Company’s filing on Form 10-K for the year ended December 31, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HEALTHSTREAM, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
6,810
|
|
|
|
$
|
7,747
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
12,148
|
|
|
|
|
7,938
|
|
|
Deferred income taxes
|
|
|
|
123
|
|
|
|
|
4,519
|
|
|
Share-based compensation
|
|
|
|
2,787
|
|
|
|
|
1,222
|
|
|
Excess tax benefits from equity awards
|
|
|
|
(3,721
|
)
|
|
|
|
129
|
|
|
Provision for doubtful accounts
|
|
|
|
184
|
|
|
|
|
170
|
|
|
Loss on equity method investments
|
|
|
|
98
|
|
|
|
|
34
|
|
|
Other
|
|
|
|
938
|
|
|
|
|
1,082
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts and unbilled receivables
|
|
|
|
2,649
|
|
|
|
|
(1,891
|
)
|
|
Prepaid and other assets
|
|
|
|
(1,253
|
)
|
|
|
|
(4,156
|
)
|
|
Accounts payable, accrued and other liabilities
|
|
|
|
(670
|
)
|
|
|
|
(3,037
|
)
|
|
Deferred revenue
|
|
|
|
5,426
|
|
|
|
|
14,918
|
|
|
Net cash provided by operating activities
|
|
|
|
25,519
|
|
|
|
|
28,675
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Business combinations, net of cash acquired
|
|
|
|
(88,075
|
)
|
|
|
|
(12,298
|
)
|
|
Changes in marketable securities
|
|
|
|
(39,334
|
)
|
|
|
|
(3,906
|
)
|
|
Investments in non-marketable equity investments
|
|
|
|
(2,000
|
)
|
|
|
|
(325
|
)
|
|
Purchases of property and equipment
|
|
|
|
(6,012
|
)
|
|
|
|
(3,044
|
)
|
|
Payments associated with capitalized software development
|
|
|
|
(5,329
|
)
|
|
|
|
(4,025
|
)
|
|
Net cash used in investing activities
|
|
|
|
(140,750
|
)
|
|
|
|
(23,598
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
|
98,014
|
|
|
|
|
--
|
|
|
Borrowings under revolving credit facility
|
|
|
|
28,000
|
|
|
|
|
--
|
|
|
Repayments under revolving credit facility
|
|
|
|
(28,000
|
)
|
|
|
|
--
|
|
|
Proceeds from exercise of stock options
|
|
|
|
328
|
|
|
|
|
872
|
|
|
Excess tax benefits from equity awards
|
|
|
|
3,721
|
|
|
|
|
(129
|
)
|
|
Taxes paid related to net settlement of equity awards
|
|
|
|
(753
|
)
|
|
|
|
(160
|
)
|
|
Payment of earn-outs related to acquisitions
|
|
|
|
(633
|
)
|
|
|
|
(270
|
)
|
|
Net cash provided by financing activities
|
|
|
|
100,677
|
|
|
|
|
313
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(14,554
|
)
|
|
|
|
5,390
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
81,995
|
|
|
|
|
59,537
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
67,441
|
|
|
|
$
|
64,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures(1)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
2,614
|
|
|
|
$
|
3,436
|
|
|
|
$
|
6,810
|
|
|
|
$
|
7,747
|
|
|
|
Interest income
|
|
|
|
(150
|
)
|
|
|
|
(73
|
)
|
|
|
|
(259
|
)
|
|
|
|
(190
|
)
|
|
|
Interest expense
|
|
|
|
26
|
|
|
|
|
13
|
|
|
|
|
162
|
|
|
|
|
38
|
|
|
|
Income tax provision
|
|
|
|
1,738
|
|
|
|
|
1,354
|
|
|
|
|
4,862
|
|
|
|
|
4,519
|
|
|
|
Share-based compensation expense
|
|
|
|
440
|
|
|
|
|
388
|
|
|
|
|
2,787
|
|
|
|
|
1,222
|
|
|
|
Depreciation and amortization
|
|
|
|
4,639
|
|
|
|
|
2,815
|
|
|
|
|
12,148
|
|
|
|
|
7,938
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
9,307
|
|
|
|
$
|
7,933
|
|
|
|
$
|
26,510
|
|
|
|
$
|
21,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenues
|
|
|
$
|
53,835
|
|
|
|
$
|
44,525
|
|
|
|
$
|
153,136
|
|
|
|
$
|
125,351
|
|
|
|
Add: deferred revenue write-down
|
|
|
|
2,099
|
|
|
|
|
150
|
|
|
|
|
5,341
|
|
|
|
|
1,222
|
|
|
|
Non-GAAP revenues
|
|
|
$
|
55,934
|
|
|
|
$
|
44,675
|
|
|
|
$
|
158,477
|
|
|
|
$
|
126,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
$
|
4,325
|
|
|
|
$
|
4,741
|
|
|
|
$
|
11,679
|
|
|
|
$
|
12,149
|
|
|
|
Add: deferred revenue write-down
|
|
|
|
2,099
|
|
|
|
|
150
|
|
|
|
|
5,341
|
|
|
|
|
1,222
|
|
|
|
Non-GAAP operating income
|
|
|
$
|
6,424
|
|
|
|
$
|
4,891
|
|
|
|
$
|
17,020
|
|
|
|
$
|
13,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
2,614
|
|
|
|
$
|
3,436
|
|
|
|
$
|
6,810
|
|
|
|
$
|
7,747
|
|
|
|
Add: deferred revenue write-down, net of tax
|
|
|
|
1,261
|
|
|
|
|
108
|
|
|
|
|
3,114
|
|
|
|
|
772
|
|
|
|
Non-GAAP net income
|
|
|
$
|
3,875
|
|
|
|
$
|
3,544
|
|
|
|
$
|
9,924
|
|
|
|
$
|
8,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This press release contains certain non-GAAP financial measures,
including non-GAAP net income, non-GAAP operating income, non-GAAP
revenue, and adjusted EBITDA, which are used by management in
analyzing its financial results and ongoing operational
performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This press release includes certain forward-looking statements
(statements other than solely with respect to historical fact),
including statements regarding expectations for the financial
performance for 2015 that involve risks and uncertainties regarding
HealthStream. These statements are based upon management’s beliefs, as
well as assumptions made by and data currently available to management.
This information has been, or in the future may be, included in reliance
on the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. The Company cautions that forward-looking statements
involve known and unknown risks, uncertainties, and other factors that
may cause the actual results, performance, or achievements to be
materially different from future results, performance, or achievements
expressed or implied by the forward-looking statements, including,
without limitation, as the result of risks referenced in the Company’s
Annual Report on Form 10-K and in the Company’s other filings with the
Securities and Exchange Commission. Consequently, such forward-looking
information should not be regarded as a representation or warranty or
statement by the Company that such projections will be realized. Many of
the factors that will determine the Company’s future results are beyond
the ability of the Company to control or predict. Readers should not
place undue reliance on forward-looking statements, which reflect
management’s views only as of the date hereof. The Company undertakes no
obligation to update or revise any such forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151019006440/en/
Copyright Business Wire 2015