Greetings. Welcome to Streamline Health Solutions corporate update call. At this time, all participants are in listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. At this time, I'll turn the conference over to Jacob Goldberger. Jacob, you may begin. Thank you for joining us for the Streamline Health Solutions corporate update. As the conference call operator indicated, my name is Jacob Goldberger. Joining me on the call today are Tee Green, Executive Chairman, Ben Stilwill, Chief Executive Officer, and B.J. Reeves, Interim Chief Financial Officer. Earlier today, we issued a press release announcing the execution of a strategic restructuring. If anyone participating on today's call does not have a full text copy of our press release announcing these developments, 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 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 Booked SaaS ACV. 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 previously published financial results for a reconciliation of such non-GAAP measures to the most comparable GAAP measures. I would now like to turn the call over to Tee Green, Executive Chairman. Thank you, Jacob, and thank you all for joining us this morning. In response to the receipt of a termination notice from a legacy client, we elected to accelerate a planned restructuring to reshape our organization, resulting in a talented, effective, and leaner team. In conjunction with this restructuring, I am thrilled to announce that Ben Stilwill is stepping into the CEO role, and he will be supported by B.J. Reeves as our interim CFO. Ben is a brilliant leader and has been a key contributor to Streamline's ongoing evolution since he joined us in 2013. There's no part of this organization that he has not had a positive influence on, and his contributions have earned him the respect of myself, the board, and of our team members. We are confident that Ben is the right leader for this company, and that he will skillfully guide the organization to deliver impact for our nation's health systems and generate shareholder value as a result. I'm also pleased to welcome B.J. to the interim CFO role. B.J. is a talented financial executive with more than 26 years of accounting experience. He has helped to shape the existing Streamline accounting department and joined us in 2020 with broad knowledge of accounting practices from his career at public software and healthcare companies. I will continue with Streamline as Executive Chairman, and my dedication to this company will not change. I believe more strongly than ever in our mission to ensure our health system clients are compensated for the care they provide. With that, I'd like to hand the call to Ben Stilwill, CEO. Thank you, Tee. As Tee mentioned, this restructuring was accelerated due to the receipt of a termination notice from a large legacy public hospital system client. Anecdotally, we've heard that the client is undergoing meaningful financial stress, which is reflected in their financial results and share price. At a high level, we believe the termination decision was the result of a rushed attempt to find savings in their IT department, which had been struggling following a serious data breach unrelated to Streamline in March 2023. This led not only to strained relationships with internal management and their desire to appropriately fund IT, but also a very defensive approach to access for vendors like us. We will continue to serve the client through December 31st, 2023, and we'll make every effort to help the client understand what they are giving up by moving on from our RevID solution, and we will make every effort to win their business back. During this restructuring process, we prioritize our ability to retain revenue and implement our existing backlog while accelerating sales growth. In service of those goals, we've adjusted client support spending in line with client demand and significantly reduced our corporate and IT footprint in line with the size of our organization. We anticipate a decrease in our roadmap velocity and plan to keep R&D focused on client-facing improvements rather than net new features. I expect that the development progress we've already achieved this year for RevID and the implementation of AI/ML techniques with eValuator are sufficient to maintain a technological moat until we have the resources to invest in accelerating our R&D spending. Within sales, we've emphasized key strategies that can generate near-term ROI. Those strategies include a tight focus on certain products that are competitive to eValuator, where we know we have a stronger offering. An emphasis on a large channel partner who has executed previously and who has become significantly more aggressive for RevID, and the development of a new and effective channel partner. We remain confident in our ability to accomplish our corporate objectives this year, including a client utilizing both our flagship solutions, RevID and eValuator, an Epic-based facility utilizing RevID, and generating improved performance from our partner channel. With that, I'll hand the call over to our interim CFO, B.J. Reeves. Thank you, Ben, and thank you, Tee. I appreciate the opportunity to speak with you all today. As a result of the restructuring, the company identified annualized expense savings of approximately $5.8 million. The majority of the expected savings are attributable to a reduction in force, which we executed on October 13th, 2023. The remainder of the savings will be largely executed on throughout the remainder of fiscal 2023. We anticipate the savings will be recognized across our expense reporting categories, and we expect to record a one-time restructuring expense in the range of approximately $800,000-$1.2 million, which includes severance payments and benefits to employees affected by our reduction in force. We expect that the one-time restructuring expense will be substantially recognized by the end of fiscal 2023. At the time of the legacy client termination, Streamline was recognizing an annualized run rate of $4.5 million of SaaS revenue from that legacy client and expects that revenue will continue through the termination date of December 31, 2023. That client accounted for $5.1 million of Streamline's $17.6 million of booked SaaS ACV, as reported in our fiscal second quarter 2023 financial results. As a result of the impacts of the legacy client termination and restructuring, the company has suspended previous guidance. We expect to provide updates on our future expectations with the release of our fiscal third quarter 2023 financial results in December. I will now turn the call back to Ben for his closing remarks. Thank you, B.J. We strongly believe in the impact our solutions bring to our current and future clients. We've seen numerous third-party reports emphasizing shifting macro conditions and health system priorities that we expect to translate to increased demand for the pre-bill revenue cycle solutions we offer. More than half of respondents in a survey conducted by KLAS in September listed investment in new technologies to support their revenue cycle as a top priority. We are also seeing increased demand through our partner channel, where we have successfully closed three new deals with our largest partner recently, and we believe that pace can accelerate meaningfully. We know the value our solutions provide and the importance of our dedication to pre-bill revenue integrity. It appears the macro headwinds we've experienced over the past couple of years are shifting in our favor. I am grateful for the opportunity to lead this team and have high expectations for our ability to thrive as an organization. Streamline is made up of dedicated, hardworking individuals who each day are rising to meet new challenges in support of our mission to ensure our nation's health systems are paid for all of the care they provide. Thank you for your continued support of our team. I look forward to updating you again in December, when we will report our fiscal third quarter financial results. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
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