Healthstream, Inc. · NASDAQ:HSTM
Healthstream — Q1 2006 Earnings Presentation
21 slides from Healthstream's earnings presentation, 2006
Slide 1: HealthStream
== HealthStream’
Slide 2: Forward-looking statements
This presentation includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for the financial performance for 2006 that involve risks and uncertainties regarding HealthStream. These statements are based upo
Slide 3: Mission: improve quality of healthcare through education
To improve the quality of healthcare by improving the quality and accessibility of healthcare education.
Slide 4: HealthStream Learning Center
HealthStream Learning CenterTM Used by approximately 1 out of every 4 healthcare Professionals in acute-care Hospitals Over 31 million courses have been completed (cumulatively, as of 15 April 2006) 93% Renewal Rate (by FTEs, First Quarter 2006)
Slide 5: HealthStream Positioning
HealthStream Positioning Healthcare (3 » Education ao Ne Technology
Slide 6: HealthStream Target Market
HealthStream Target Market 5,000,000 Acute-Care Hospital Employees
Slide 7: Mission & Customer Value Proposition
Mission & Customer Value Proposition A safer organization for patient care through required regulatory training Workforce Development for hospital staff Facilitating rapid adoption of new technologies for better patient outcomes
Slide 8: HealthStream Customer Hospitals
HealthStream Customer Hospitals Approximately 1,200 facilities, representing 1,259,000 fully implemented healthcare professionals
Slide 9: Novi, Michigan
@9 STANFORD q HOSPITAL & CLINICS Stanford University Medical Center TRINITY & HEALTH Novi, Michigan HCA , a. Tener, oc ts & VY BON SECOURS HEALTH SYSTEM SS Sutter Health Community Based, Not For Profi Ww YALE-NEW HAVEN HOSPITAL © HeatthStream’
Slide 10: Result: Customer Adoption - HLC Course Completions
Result: Customer Adoption - HLC Course Completions 31,000,000 April 15, 2006 32 30 28 26 24 22 20 18 16 14 12 millions 10 8 6 4 1,000,000 2 March 20, 2002 0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06
Slide 11: Increasing the Value of Each Subscriber
Increasing the Value of Each Subscriber AACN Courseware Series from HealthStream • 9,800 subscriptions • at least $200 per user, per year • Over 100 Customer Contracts
Slide 12: Pharmaceutical / Medical Device product training delivery
Allowing Pharmaceutical / Medical Device companies to deliver innovative product training to approximately 1,300,000 hospital-based professionals nationwide. Three easy steps: Target facilities 1 Deliver courses 2 Receive feedback 3
Slide 13: HealthStream Research Products
HealthStream Research Products • Offers physician, employee, and patient surveys • 38 health system customers • Survey analyses provide roadmaps for workforce development
Slide 14: Financial Strength
Financial Strength Annual Revenue Growth Cash, Investments, and Interest Receivable ($ millions) 30 Projected 27.4 $31–$31.5 25 20.1 20 18.2 15.8 15 13.5 10 9.7 No Long-term $12.0 Million Debt 5 Q1 2006 2.6 $7.5 million 0 1999 2000 2001 2002 2003 2004 2005 2006 As of 31 March 2006 As of 31 March 200
Slide 15: Internet-based HealthStream Learning Center Revenues
Internet-based HealthStream Learning Center Revenues 100 68% 67% 68% 65% 65% 63% 60% 59% 60% 59% 55% 56% 54% 52% 50 percent 50% 39% 40% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2002 2003 2004 2005 2006
Slide 16: Revenue per Employee
Revenue per Employee 220 $202,000 $ 170 120 Dollars 70 $52,400 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 2004 2005 2006 -30
Slide 17: EBITDA ($millions)
EBITDA* ($millions) 1.8 1.5 1.2 1.3 0.7 0.6 0.7 0.5 0.07 0.02 0.3 0.02 -0.07 -0.5 -0.3 -0.6 $ Millions-1.5 -1.5 -1.7 -2.5 -2.3 -2.5 -2.7 -3.1 -3.1 -3.5 -4.1 -4.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 2004 2005 2006 *Excluding one-time gain and cumulative effec
Slide 18: Net Income (loss)
Net Income (loss) $658,000 1 (1) (3) $ Millions * (5) $(4,381,000) (7) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 2004 2005 2006 * Excludes $5 million charge for change in accounting principle for goodwill.
Slide 19: HealthStream's Management Team
HealthStream’s Management Team Robert A. Frist Arthur E. Newman Chief Executive Officer & Executive Vice President Chairman of the Board 6 years 16 years Susan A. Brownie Chief Financial Officer & Senior Vice President 6 years
Slide 20: Independent Board of Directors
Independent Board of Directors Years of Service Jeffrey McLaren Safer Sleep 16 years James Daniell, M.D. Centennial Medical Center 11 years Thompson S. Dent Med-Tel International 11 years Frank Gordon Crofton Capital 3 years Linda Rebrovick Dell Computer Corporation 4 years William Stead, M.D. Vande
Slide 21: Forward-looking statements
This presentation includes certain forward-looking statements (statements other than solely with respect to historical fact), including statements regarding expectations for the financial performance for 2006 that involve risks and uncertainties regarding HealthStream. These statements are based upo