HSTM
$26.36
Healthstream
($1.00)
(3.65%)
Earnings Details
2nd Quarter June 2019
Monday, July 22, 2019 4:30:00 PM
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Summary

HealthStream Reaffirms

Healthstream (HSTM) reported 2nd Quarter June 2019 earnings of $0.07 per share on revenue of $63.8 million. The consensus earnings estimate was $0.02 per share on revenue of $63.0 million. Revenue grew 11.9% on a year-over-year basis.

The company said it continues to expect 2019 revenue of $251.0 million to $258.0 million. The current consensus estimate is revenue of $254.7 million for the year ending December 31, 2019.

HealthStream Inc provides SaaS-based workforce development solutions and research/patient experience solutions for healthcare organizations. It provides HealthStream Workforce Development Solutions & HealthStream Research/Patient Experience Solutions.

Results
Reported Earnings
$0.07
Earnings Whisper
-
Consensus Estimate
$0.02
Reported Revenue
$63.8 Mil
Revenue Estimate
$63.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

HealthStream Announces Second Quarter 2019 Results

NASHVILLE, Tenn.--(BUSINESS WIRE)--HealthStream, Inc. (Nasdaq: HSTM), a leading provider of workforce and provider solutions for the healthcare industry, announced today results for the second quarter ended June 30, 2019. In this earnings release, all results are from continuing operations only, unless otherwise indicated (i.e., results for the three and six months ended June 30, 2019 and 2018 exclude the gain on the sale of our divested Patient Experience business segment which was completed in February 2018 and the results of operations of such segment prior to this divestiture).

  • Our CEO contributed $2.2 million of his personally owned HealthStream stock to the Company in order to facilitate the grant of 78,520 shares of common stock to approximately 820 employees under our 2016 Omnibus Incentive Plan, which resulted in a corresponding $2.2 million charge for stock based compensation and related expense in the second quarter
  • Revenues of $63.8 million in the second quarter of 2019, up 12% from $57.0 million in the second quarter of 2018
  • Operating income of $2.3 million in the second quarter of 2019, down 47% from $4.3 million in the second quarter of 2018, which was negatively impacted in the amount of $2.2 million by the charge associated with the stock grant to employees referenced above
  • Income from continuing operations of $2.4 million in the second quarter of 2019, down 34% from $3.7 million in the second quarter of 2018, which was negatively impacted in the amount of $1.7 million by the charge associated with the stock grant to employees referenced above
  • Earnings per share (EPS) from continuing operations of $0.07 per share (diluted) in the second quarter of 2019, which was negatively impacted by $0.05 from the charge associated with the stock grant to employees referenced above, compared to $0.11 per share (diluted) in the second quarter of 2018
  • Adjusted EBITDA1 from continuing operations of $11.8 million in the second quarter of 2019, up 10% from $10.7 million in the second quarter of 2018

_____________________________________________________________________________
1 Adjusted EBITDA from continuing operations is a non-GAAP financial measure. A reconciliation of adjusted EBITDA from continuing operations to income from continuing operations and disclosure regarding why we believe adjusted EBITDA from continuing operations provides useful information to investors is included later in this release.

Financial Results:
Second Quarter 2019 Compared to Second Quarter 2018
Revenues for the second quarter of 2019 increased by $6.8 million, or 12 percent, to $63.8 million, compared to $57.0 million for the second quarter of 2018.

Revenues from our HealthStream Workforce Solutions segment were $52.4 million for the second quarter of 2019, compared to $47.0 million for the second quarter of 2018. Revenue growth of $5.4 million was positively impacted by higher revenues from our legacy resuscitation products, which were $15.5 million in the second quarter of 2019, compared to $13.2 million in the second quarter of 2018, and growth in our proprietary learning and compliance products. The acquisition of Providigm, LLC, which was completed in January 2019, also added $1.8 million of revenue to the second quarter of 2019.

Revenues from our HealthStream Provider Solutions segment were $11.4 million for the second quarter of 2019, compared to $10.0 million for the second quarter of 2018. Revenue growth of $1.4 million was primarily a result of new Verity platform subscriptions and professional services for implementation of new customers.

Operating income was $2.3 million for the second quarter of 2019, down 47 percent from $4.3 million for the second quarter of 2018. This decline was driven by the $2.2 million impact of the stock grants made under our 2016 Omnibus Incentive Plan as noted above. In addition, operating income was positively impacted by the increase in revenue and negatively impacted by higher royalties, depreciation and amortization, stock based compensation, personnel costs, and other general expenses.

As announced on June 27, 2019, Robert A. Frist, Jr. contributed 78,520 of his personally owned shares of common stock (a value of $2.0 million) to the Company for the benefit of HealthStream employees, without any consideration paid to Mr. Frist. In connection therewith, the Company has approved the grant of the same number of shares under its 2016 Omnibus Incentive Plan to approximately 820 of its employees. It is contemplated that these shares, which will not be subject to any vesting conditions, will be issued later in July. Mr. Frist also contributed an additional 7,852 of his personally owned shares to cover the Company’s costs associated with such grants, such as administrative expenses and employer payroll taxes. Together, these grants resulted in the Company recognizing approximately $2.0 million stock based compensation expense and $0.2 million payroll tax expense in the second quarter of 2019. The only shareholder who will be diluted from these transactions will be Mr. Frist.

Income from continuing operations was $2.4 million in the second quarter of 2019, down 34 percent from $3.7 million in the second quarter of 2018, and EPS from continuing operations was $0.07 per share (diluted) in the second quarter of 2019, compared to $0.11 per share (diluted) for the second quarter of 2018, both of which were negatively impacted in the amount of $1.7 million, or $0.05 per share, by the charge associated with the stock grant to employees referenced above. Net income (from continuing and discontinued operations) was $2.4 million in the second quarter of 2019, compared to $2.5 million in the second quarter of 2018. EPS was $0.07 per share (diluted) for the second quarter of 2019, compared to $0.08 per share (diluted) for the second quarter of 2018.

Adjusted EBITDA from continuing operations increased to $11.8 million for the second quarter of 2019, compared to $10.7 million in the second quarter of 2018. Adjusted EBITDA was not impacted by the stock contribution transaction noted above, except for the $0.2 million payroll tax expense.

Adjusted EBITDA (from continuing and discontinued operations) was $11.8 million for the second quarter of 2019, compared to $9.2 million in the second quarter of 2018.

At June 30, 2019, the Company had cash and cash equivalents and marketable securities of $161.6 million. Capital expenditures incurred during the second quarter of 2019 were $9.8 million.

Year-to-Date 2019 Compared to Year-to-Date 2018
For the first six months of 2019, revenues were $129.0 million, an increase of 15 percent over revenues of $111.9 million for the first six months of 2018. Operating income for the first six months of 2019 decreased by 4 percent to $7.6 million, compared to $8.0 million for the first six months of 2018, and was negatively impacted by the approximately $2.2 million expense associated with the stock grant to employees. Net income from continuing operations for the first six months of 2019 decreased to $7.2 million, compared to $7.3 million for the first six months of 2018. Earnings per share from continuing operations were $0.22 per share (diluted) for the first six months of 2019, compared to $0.23 per share (diluted) for the first six months of 2018. Net income for the first six months of 2019 decreased to $8.4 million, compared to $26.4 million for the first six months of 2018, which decrease was primarily driven by the $19.1 million gain, net of tax, on the sale of the PX business in 2018. Earnings per share were $0.26 per share (diluted) for the first six months of 2019, compared to $0.82 per share (diluted) for the first six months of 2018. Adjusted EBITDA from continuing operations increased by 16 percent to $24.2 million for the first six months of 2019, compared to $20.9 million for the first six months of 2018. Adjusted EBITDA decreased to $25.9 million for the first six months of 2019, compared to $50.5 million for the first six months of 2018, which decrease was driven by the gain on the sale of the PX business in 2018.

Other Business Updates
At June 30, 2019, we had approximately 2.34 million contracted subscriptions to hStream™, our Platform-as-a-Service technology. hStream technology enables healthcare organizations and their respective workforces to easily connect to and gain value from the growing HealthStream ecosystem of applications, tools, and content.

Financial Outlook for 2019
Below we present our updated 2019 financial guidance:

 

 

Full Year 2019 Guidance

Revenue

 

 

 

 

 

 

 

 

 

Workforce Solutions

 

$

207

 

-

$

213

 

million

Provider Solutions

 

 

44

 

-

 

45

 

million

Consolidated

 

$

251

 

-

$

258

 

million

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

11.0

 

-

$

13.0

 

million

 

 

 

 

 

 

 

 

 

 

Adjusted Non-GAAP Operating Income

 

$

13.2

 

-

$

15.2

 

million

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

$

36

 

million

 

 

 

 

 

 

 

 

 

 

Annual Effective Income Tax Rate

 

 

23

 

-

 

25

 

percent

 

Adjusted non-GAAP operating income guidance is a forward-looking non-GAAP financial measure, which represents GAAP operating income guidance excluding the impact of the stock grant to employees of approximately $2.2 million as described above. The Company believes that the presentation of this forward-looking non-GAAP financial measure and the exclusion of this expense from adjusted non-GAAP operating income guidance presents useful information to investors in evaluating the projected underlying operating performance of the Company during 2019 in light of the fact that Mr. Frist contributed stock in an amount sufficient to fully offset the $2.2 million expense of the Company associated with these grants and that these transactions will not result in any dilution of the stockholders of the Company (other than Mr. Frist).

This guidance includes the impact of the acquisition of Providigm, which is included in our Workforce Solutions segment, but does not include the impact of any other acquisitions or strategic investments that we may complete during 2019.

“We completed the first half of 2019 favorably with revenues up 15 percent and adjusted EBITDA from continuing operations up 16 percent, both over the same period last year,” said Robert A. Frist, Jr., Chief Executive Officer, HealthStream. “Entering the second half of 2019, we are encouraged by the growing roster of customers who are choosing our new American Red Cross resuscitation program, including one of the nation’s largest health systems.”

A conference call with Robert A. Frist, Jr., Chief Executive Officer, Scott A. Roberts, Vice President and Interim Chief Financial Officer, and Mollie Condra, Vice President of Investor Relations and Corporate Communications, will be held on Tuesday, July 23, 2019, at 9:00 a.m. (ET). 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 #2796398) for U.S. and Canadian callers and 404-537-3406 (conference ID #2796398) for international callers.

Use of Non-GAAP Financial Measures
This press release presents adjusted EBITDA from continuing operations and adjusted EBITDA, both of which are non-GAAP financial measures 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, stock based compensation, depreciation and amortization, and changes in fair value of cost method investments (“adjusted EBITDA”) is a useful measure for evaluating the operating performance of the Company because adjusted EBITDA reflects net income adjusted for certain non-cash and non-operating items. Management also believes that adjusted EBITDA from continuing operations is a useful measure for evaluating the operating performance of the Company because such measure excludes the results of operations of the PX business that we no longer own and the gain on sale in connection with the sale of such business in February 2018 and thus reflects the Company’s ongoing business operations and assists in comparing the Company’s results of operations between periods. We also believe that adjusted EBITDA and adjusted EBITDA from continuing operations are useful to many investors to assess the Company’s ongoing results from current operations. Adjusted EBITDA and adjusted EBITDA from continuing operations are non-GAAP financial measures and should not be considered as measures of financial performance under GAAP. Because adjusted EBITDA and adjusted EBITDA from continuing operations are not measurements determined in accordance with GAAP, such non-GAAP financial measures are susceptible to varying calculations. Accordingly, adjusted EBITDA and adjusted EBITDA from continuing operations, as presented, may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools.

These non-GAAP financial measures should not be considered 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 healthcare organizations across the U.S. for workforce development, training & learning management, talent management, credentialing, privileging, provider enrollment, performance assessment, and managing simulation-based education programs. Based in Nashville, Tennessee, HealthStream has additional offices in Jericho, New York; Boulder; Colorado; Denver, Colorado; San Diego, California; and Chicago, Illinois. For more information, visit http://www.healthstream.com or call 800-933-9293. 

 
 
 

HEALTHSTREAM, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

2019

 

 

June 30,

2018

 

 

June 30,

2019

 

 

June 30,

2018

 

Revenues, net

 

$

63,781

 

 

$

57,008

 

 

$

128,967

 

 

$

111,866

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (excluding depreciation and amortization)

 

 

26,806

 

 

 

23,236

 

 

 

53,667

 

 

 

45,484

 

Product development

 

 

7,640

 

 

 

6,547

 

 

 

14,567

 

 

 

12,548

 

Sales and marketing

 

 

9,819

 

 

 

8,913

 

 

 

19,340

 

 

 

17,977

 

Other general and administrative expenses

 

 

10,306

 

 

 

8,029

 

 

 

20,276

 

 

 

15,772

 

Depreciation and amortization

 

 

6,942

 

 

 

6,019

 

 

 

13,480

 

 

 

12,091

 

Total operating costs and expenses

 

 

61,513

 

 

 

52,744

 

 

 

121,330

 

 

 

103,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

2,268

 

 

 

4,264

 

 

 

7,637

 

 

 

7,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

852

 

 

 

476

 

 

 

1,674

 

 

 

789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax provision

 

 

3,120

 

 

 

4,740

 

 

 

9,311

 

 

 

8,783

 

Income tax provision

 

 

719

 

 

 

1,084

 

 

 

2,130

 

 

 

1,498

 

Income from continuing operations

 

 

2,401

 

 

 

3,656

 

 

 

7,181

 

 

 

7,285

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations before income tax provision

 

 

 

 

 

 

 

 

 

 

 

(64

)

(Loss) Gain on sale of discontinued operations

 

 

 

 

 

(1,502

)

 

 

1,620

 

 

 

29,490

 

Income tax (benefit) provision

 

 

 

 

 

(391

)

 

 

426

 

 

 

10,319

 

(Loss) Income from discontinued operations

 

 

 

 

 

(1,111

)

 

 

1,194

 

 

 

19,107

 

Net income

 

$

2,401

 

 

$

2,545

 

 

$

8,375

 

 

$

26,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.07

 

 

$

0.11

 

 

$

0.22

 

 

$

0.23

 

Discontinued operations

 

 

 

 

 

(0.03

)

 

 

0.04

 

 

 

0.59

 

Net income per share - basic

 

$

0.07

 

 

$

0.08

 

 

$

0.26

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.07

 

 

$

0.11

 

 

$

0.22

 

 

$

0.23

 

Discontinued operations

 

 

 

 

 

(0.03

)

 

 

0.04

 

 

 

0.59

 

Net income per share - diluted

 

$

0.07

 

 

$

0.08

 

 

$

0.26

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,394

 

 

 

32,312

 

 

 

32,366

 

 

 

32,205

 

 

 

 

32,434

 

 

 

32,378

 

 

 

32,406

 

 

 

32,255

 

Dividends declared per share

 

$

 

 

$

 

 

$

 

 

$

1.00

 

 
 
 

HEALTHSTREAM, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

120,849

 

 

$

134,321

 

Marketable securities

 

 

40,737

 

 

 

34,497

 

Accounts and unbilled receivables, net

 

 

29,836

 

 

 

41,004

 

Prepaid and other current assets

 

 

23,059

 

 

 

31,612

 

Total current assets

 

 

214,481

 

 

 

241,434

 

 

 

 

 

 

 

 

 

 

Capitalized software development, net

 

 

20,764

 

 

 

18,352

 

Property and equipment, net

 

 

28,544

 

 

 

15,866

 

Operating lease right of use assets, net

 

 

30,774

 

 

 

 

Goodwill and intangible assets, net

 

 

158,093

 

 

 

145,522

 

Deferred tax assets

 

 

251

 

 

 

145

 

Deferred commissions

 

 

15,534

 

 

 

16,470

 

Other assets

 

 

8,010

 

 

 

4,159

 

Total assets

 

$

476,451

 

 

$

441,948

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable, accrued and other liabilities

 

$

31,583

 

 

$

40,793

 

Deferred revenue

 

 

66,730

 

 

 

66,061

 

Total current liabilities

 

 

98,313

 

 

 

106,854

 

Deferred tax liabilities

 

 

13,136

 

 

 

11,068

 

Deferred revenue, non-current

 

 

2,669

 

 

 

2,868

 

Operating lease liability, noncurrent

 

 

32,046

 

 

 

 

Other long-term liabilities

 

 

616

 

 

 

2,211

 

Total liabilities

 

 

146,780

 

 

 

123,001

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

288,900

 

 

 

286,597

 

Accumulated other comprehensive income (loss)

 

 

23

 

 

 

(23

)

Retained earnings

 

 

40,748

 

 

 

32,373

 

Total shareholders’ equity

 

 

329,671

 

 

 

318,947

 

Total liabilities and shareholders' equity

 

$

476,451

 

 

$

441,948

 

 
 
 

HEALTHSTREAM, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

8,375

 

 

$

26,392

 

Income from discontinued operations

 

 

(1,194

)

 

 

(19,107

)

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

13,480

 

 

 

12,091

 

Stock based compensation

 

 

3,074

 

 

 

846

 

Amortization of deferred commissions

 

 

4,201

 

 

 

3,735

 

Deferred income taxes

 

 

992

 

 

 

636

 

Provision for doubtful accounts

 

 

48

 

 

 

390

 

Gain on equity method investments

 

 

(69

)

 

 

(5

)

Other

 

 

(84

)

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts and unbilled receivables

 

 

12,019

 

 

 

3,905

 

Prepaid and other assets

 

 

716

 

 

 

(5,570

)

Accounts payable, accrued and other liabilities

 

 

(5,280

)

 

 

(10,385

)

Deferred revenue

 

 

329

 

 

 

3,277

 

Net cash provided by continuing operating activities

 

 

36,607

 

 

 

16,205

 

Net cash used in discontinued operating activities

 

 

 

 

 

(1,003

)

Net cash provided by operating activities

 

 

36,607

 

 

 

15,202

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

Business combinations, net of cash acquired

 

 

(18,018

)

 

 

 

Proceeds from sale of discontinued operations

 

 

6,222

 

 

 

57,828

 

Changes in marketable securities

 

 

(6,121

)

 

 

3,397

 

Proceeds from sale of fixed assets

 

 

12

 

 

 

 

 

Payments to acquire cost method investments

 

 

(3,342

)

 

 

 

Purchases of property and equipment

 

 

(19,598

)

 

 

(3,270

)

Payments associated with capitalized software development

 

 

(8,374

)

 

 

(5,094

)

Net cash (used in) provided by continuing investing activities

 

 

(49,219

)

 

 

52,861

 

Net cash used in discontinued investing activities

 

 

 

 

 

(116

)

Net cash (used in) provided by investing activities

 

 

(49,219

)

 

 

52,745

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

214

 

 

 

2,552

 

Taxes paid related to net settlement of equity awards

 

 

(985

)

 

 

(300

)

Payment of earn-outs related to prior acquisitions

 

 

(37

)

 

 

(37

)

Payment of cash dividends

 

 

(52

)

 

 

(32,353

)

Net cash used in continuing financing activities

 

 

(860

)

 

 

(30,138

)

Net cash used in discontinued financing activities

 

 

 

 

 

 

Net cash used in financing activities

 

 

(860

)

 

 

(30,138

)

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(13,472

)

 

 

37,809

 

Cash and cash equivalents at beginning of period

 

 

134,321

 

 

 

84,768

 

Cash and cash equivalents at end of period

 

$

120,849

 

 

$

122,577

 

 
 
 

Reconciliation of GAAP to Non-GAAP Financial Measures(1)
(In thousands)
(Unaudited)

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

GAAP income from continuing operations

 

$

2,401

 

 

$

3,656

 

 

$

7,181

 

 

$

7,285

 

Interest income

 

 

(884

)

 

 

(510

)

 

 

(1,674

)

 

 

(850

)

Interest expense

 

 

30

 

 

 

32

 

 

 

51

 

 

 

66

 

Income tax provision

 

 

719

 

 

 

1,084

 

 

 

2,130

 

 

 

1,498

 

Stock based compensation expense

 

 

2,558

 

 

 

427

 

 

 

3,074

 

 

 

846

 

Depreciation and amortization

 

 

6,942

 

 

 

6,019

 

 

 

13,480

 

 

 

12,091

 

Change in fair value of cost method investments

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA from continuing operations

 

$

11,766

 

 

$

10,708

 

 

$

24,242

 

 

$

20,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

2,401

 

 

$

2,545

 

 

$

8,375

 

 

$

26,392

 

Interest income

 

 

(884

)

 

 

(510

)

 

 

(1,674

)

 

 

(850

)

Interest expense

 

 

30

 

 

 

32

 

 

 

51

 

 

 

66

 

Income tax provision

 

 

719

 

 

 

693

 

 

 

2,556

 

 

 

11,817

 

Stock based compensation expense

 

 

2,558

 

 

 

427

 

 

 

3,074

 

 

 

755

 

Depreciation and amortization

 

 

6,942

 

 

 

6,019

 

 

 

13,480

 

 

 

12,273

 

Change in fair value of cost method investments

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

11,766

 

 

$

9,206

 

 

$

25,862

 

 

$

50,453

 

(1) This press release contains certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA from continuing operations, 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 2019, 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 for the year ended December 31, 2018, filed on February 25, 2019, and in the Company’s other filings with the Securities and Exchange Commission from time to time. 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.

Scott A. Roberts
Interim Chief Financial Officer
(615) 301-3182
ir@healthstream.com

Media:
Mollie Condra, Ph.D.
Vice President,
Investor Relations &
Communications
(615) 301-3237
mollie.condra@healthstream.com

Source: HealthStream, Inc.