NASHVILLE, Tenn.--(BUSINESS WIRE)--
HealthStream (NASDAQ: HSTM) announced today that its chief executive
officer, Robert A. Frist, Jr., has contributed approximately $1.5
million of his personally owned shares of HealthStream common stock to
HealthStream, without any consideration paid to Mr. Frist, for the
benefit of certain HealthStream employees who are not otherwise eligible
to receive equity grants and have at least one year of service with the
Company. To accomplish this, Mr. Frist has contributed 49,310 of his
shares to HealthStream, and HealthStream has approved the grant of that
same number of shares under its 2010 Stock Incentive Plan to eligible
employees, which shares will be issued in late August and will not be
subject to any vesting conditions.
Over 600 HealthStream employees will receive shares of stock from this
contribution, none of whom are executives, vice presidents, or associate
vice presidents who have previously received equity grants under the
Company's stock incentive plan.
"Since our initial launch as a small, two-person company in 1990,
HealthStream has grown into a 1,000-employee, innovative public company
that is improving the quality of healthcare by supporting the workforce
that delivers care," said Robert A. Frist, Jr., chief executive officer,
HealthStream. "I am excited to make this contribution to allow many of
our employees who have not previously participated in our equity
programs to experience a feeling of shared equity in the Company and
become financial stakeholders in the future success of HealthStream."
This grant of HealthStream common stock for employees will result in no
dilution of shares to any existing shareholders other than Mr. Frist. In
addition, Mr. Frist has contributed an additional 4,931 shares (valued
at approximately $150,000) to HealthStream, without consideration paid
to Mr. Frist, which amount is equivalent to the estimated Company costs
associated with the equity grants, such as administrative expenses and
employer payroll taxes which will be associated with the grants. The
Company will record a compensation expense of $1.5 million for this
transaction in the second quarter of 2015. There will be no impact on
adjusted EBITDA.
"I am humbled by our employees' visionary drive and hard work over the
years that are making a difference in healthcare. For those that have
been on this journey, I want to recognize their service with this
expression of my appreciation."
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,
collectively, over 4.4 million healthcare employees in the U.S. for
workforce development, training & learning management, talent
management, credentialing, privileging, provider enrollment, performance
assessment, and managing simulation-based education programs. Our
research solutions provide valuable insight to healthcare providers to
meet HCAHPS requirements, improve the patient experience, engage their
workforce, and enhance physician alignment. Based in Nashville,
Tennessee, HealthStream has additional offices in Laurel, Maryland;
Brentwood, Tennessee; Pensacola, Florida; Jericho, New York; and San
Diego, California. For more information, visit http://www.healthstream.com
or call 800-933-9293.
This press release contains forward-looking statements that involve
risks and uncertainties regarding HealthStream. Investors are cautioned
that such results or events predicted in these statements may differ
materially from actual future events or results. This information has
been included in reliance on the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
such results or events predicted in these statements may differ
materially from actual future events or results. Any
forward-looking statements are subject to significant uncertainties and
other risks referenced in the Company's Annual Report on Form 10-K and
in the Company's other filings with the Securities and Exchange
Commission. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150701005356/en/
HealthStream
Mollie Condra, 615-301-3237
mollie.condra@healthstream.com
Source: HealthStream
News Provided by Acquire Media
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