Tuesday, February 23, 2010
This afternoon, HealthStream (NASDAQ:HSTM) announced quarterly and year-end financial results. Annual results include an 11 percent year-to-year increase in revenue, to $57.4MM; a 106 percent increase in operating income, to $5.1MM; and, adjusted EBITDA of $10.9MM, up 35 percent from $8.1MM. Annual and quarterly results were influenced by the effect of a $9.1MM deferred tax benefit taken by the company, which said it determined in the 4thQ the company's operations had "achieved sustainable profitability." Contract-value and -subscriber trends remained strong on the learning side; sales and marketing expenses rose; and, the HealthStream research unit continues to cope with customer cutbacks in most surveying categories. The company also noted it intends to spend up to $4MM in 2010 for software, hardware, capitalized software development, etc. Earlier today, the company said, the HealthStream board approved a $4MM stock buyback. The company said it has also given more authority to newly promoted SVP Michael Sousa to drive sales in both learning and research sides of the business. Prior to HealthStream's earnings report, HSTM closed regular trading today at $4.12, up nearly 3.8 percent; and, recorded at least one transaction at $4.30, after hours this evening. HealthStream CEO Bobby Frist is due to address analysts at 8 a.m. CT, Tuesday, Feb. 24.