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Company
Location |
Stock
Information |
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209 10th Avenue South
Suite 450
Nashville, TN 37203
Phone:
615.301.3100
Fax: 615.301.3200
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Current price as of close on March 6, 2006: $3.18
Buy Opinion: $2.92 - $3.32
Short Term Sell: $3.90 - $4.65
Long Term Sell (6-12 Months): $4.80+
Annual Sales: $27.36 Million (ttm)
Book Value Per Share: $1.19
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Company Profile
HealthStream, Inc. provides Internet-based
services and solutions to meet the training and education needs of the
healthcare industry in the United States.
Its products include HealthStream Learning Center, an Internet-based learning platform, which
has approximately 1,168,000 contracted hospital-based subscribers;
Competency Compass, an online performance assessment and management
solution; HealthStream Express, an Internet-based learning platform; and
HospitalDirect, a software application that delivers product training in
hospitals.
HealthStream’s services to pharmaceutical and medical device
companies include online educational and training activities for
healthcare professionals, and content development services, as well as
online training for medical industry representatives. In addition, the
company offers healthcare organizations service capabilities to convert
existing course materials to a Web-enabled format through its
HealthStream Authoring Center product. It markets its products and
services primarily through its direct sales force.
HealthStream was
co-founded by Robert A. Frist, Jr. The company was incorporated in 1990
and is headquartered in Nashville, Tennessee. HealthStream, Inc.
acquired Data Management & Research, Inc., which offers healthcare
organizations a range of quality and satisfaction surveys, data analyses
of survey results, and other research-based measurement tools, in March
2005.
Highlights
Quarterly Revenue Up 48%
Quarterly Net Income Up Over 1400%
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Recent News
Update (April 22, 2006):
Recent
Business Information
On
February 23, 2006, HSTM announced it has signed a 13-hospital health
system in Texas as a customer for its flagship HealthStream Learning
Center product. The deal with Texas Health Resources runs through August
of 2009, according to a release announcing the deal. The health system
has 16,000 employees throughout its hospital facilities. Financial terms
of the deal weren't disclosed.
On February 21, 2006, HSTM said
Susan Brownie, its senior vice president of finance and human resources,
will be promoted to chief financial officer and senior vice president.
The company said Brownie's promotion will be effective upon filing of
its financial statement for 2005. Brownie replaces Arthur Newman, who
will now become executive vice president, the company said.
Fourth
Quarter Highlights
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Revenues of $8.0
million in the fourth quarter of 2005, up 48% over the fourth quarter
of 2004
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Net income of $1.2
million in the fourth quarter of 2005, compared to net income of
$77,000 in the fourth quarter of 2004
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EBITDA of $1.7
million in the fourth quarter of 2005, compared to EBITDA of $572,000
in the fourth quarter of 2004
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Michael D. Shmerling
joins HealthStream's board of directors
Full Year (2005)
Highlights
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Revenues for the
year of $27.4 million, up 36% over 2004
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Net income for the
year of $1.9 million, compared to a net loss of $1.0 million for 2004
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1,173,000 healthcare
professional subscribers fully implemented on our Internet-based
learning network at December 31, 2005, up from 1,040,000 at December
31, 2004, a 13% year over year increase
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EBITDA of $4.3
million for 2005, up from EBITDA of $818,000 for 2004
Research &
Press Releases
To
hear the 4th Quarter, 2005 earnings conference call, click
HERE.
To see a copy of their latest annual
report (2004 - Released July 18, 2005), click
HERE.
Management
 Robert
A. Frist, Jr., co-founder, has served as chief executive
officer and chairman of the board of directors since 1990. Mr. Frist
serves on the board of directors of Passport Health Communications, an
online health insurance verification provider and HealthLeaders, a
healthcare publisher. He graduated with a Bachelor of Science in
business with concentrations in finance, economics and marketing from
Trinity University. As chief executive officer, Mr. Frist is positioning
HealthStream as a leader in online healthcare education. He is the
architect of HealthStream's strategic business model and a driving force
in its e-business initiatives.
 Susan
A. Brownie has served as senior vice president since January
2005. Prior to her current position, Ms. Brownie’s five-year+ tenure at
HealthStream included serving as vice president of finance & corporate
controller, while also assuming managerial oversight of the Human
Resources Department in 2004. Before joining HealthStream in 1999, Ms.
Brownie worked for KPMG LLP, where she worked as a senior manager. In
that position, she served clients in the technology, retail, and service
industries. Susan received a bachelor’s of business administration
degree from the College of William and Mary and is a Certified Public
Accountant.
Ms. Brownie will take over the CFO duties
once the annual report has been filed.
Conclusion
Continuing education for healthcare.
Sounds good, doesn't it? Basically, HSTM provides a service to
healthcare companies that provides the continuing education that
professionals must go through to keep current. Many positions require
that the employee attend training and continuing education programs to
keep current, perhaps keep a license, etc... HSTM provides that service
so that the company does not have to burden itself with another complete
department to provide that service.
HSTM looks to have bottomed here. It's
earnings highlights, revenue and prospects seemed to have improved
remarkably. New clients as well as better results have gotten the
attention of investors again. This may be a long, slow climb higher, but
one we believe in. Please consider HSTM for your portfolio. We believe
you'll be happy with that choice! |
Symbol: HSTM