BASKING RIDGE, N.J., May 8, 2009 -- Hooper Holmes (NYSE Amex:HH) today announced financial results for the first quarter ended March 31, 2009.
For the three months ended March 31, 2009, total revenues decreased 9% to $47.4 million compared to $52.4 million for the first quarter of 2008. The Company recorded a net loss of $1.8 million for the first quarter of 2009, or a net loss of $0.03 per share compared to a net loss of $0.6 million, or a net loss of $0.01 per share for the first quarter of 2008. The net loss for the first quarter of 2009 includes a non-cash charge of $0.8 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of our current IT system. In addition, the net loss for the first quarter of 2009 includes $0.2 million of restructuring charges. The net loss for the first quarter of 2008 included $1.7 million of restructuring and other charges.
Business segment revenues include:
-- Portamedic revenues decreased approximately 6% to $35.0 million
compared to $37.3 million for the first quarter of 2008. This
decrease is the result of a reduction in paramedical exams of
approximately 10%, partially offset by higher average revenue per
exam of 4%.
-- Infolink revenues were $5.0 million, a decrease of 25% compared
to $6.6 million in the first quarter of 2008, primarily due to a
decrease in revenues from our attending physician statements
(APS) business.
-- Heritage Labs revenues totaled $3.3 million in the first quarter
of 2009, a decrease of 9% compared to the first quarter of 2008,
primarily due to reduced revenue from one major client
approximating $1.1 million, partially offset by increased
revenues from new and existing clients.
-- Health & Wellness revenues increased 26% to $2.4 million,
compared to $1.9 million for the first quarter of 2008. During
the first quarter of 2009, the Health & Wellness business
completed approximately 52,000 health screenings and it currently
provides services to 34 health management companies.
-- Underwriting Solutions revenues decreased 38% to $1.8 million
compared to $2.9 million for the prior year's first quarter, due
to reduced demand for our outsourced underwriting services.
Roy H. Bubbs, President and Chief Executive Officer of Hooper Holmes, commented, "Hooper Holmes was not immune from the global economic slowdown as consumers cut back or postponed their purchases of life insurance products. We continue to manage our overall business in these challenging times by maintaining a healthy balance sheet and aligning our costs with forecasted revenue levels.
"We are working closely with our customers to provide them with market leading services, excellent customer support and innovative product offerings. We continue to invest in our growth businesses and as a result we invested $0.9 million in new facilities at Heritage Labs, where our Health & Wellness division is also based, positioning both businesses for future growth. We feel our recently-completed study with Leerink Swann, the healthcare investment bank, will enhance our strategic initiatives and has the potential to produce new revenues and cost savings this year.
"From current conversations with life insurance providers we believe that business has begun to show signs of stabilization. We are cautiously optimistic that the decline in sales will begin to moderate and we continue to manage our business for profitability."
Conference Call
The Company will host a conference call, today, May 8, 2009 at 11:00 a.m. ET to discuss first quarter results.
To participate in the conference call, please dial 877-941-6010 or 480-629-9772, conference ID: 406 9458 five to 10 minutes before the call is scheduled to begin. A live webcast will be hosted on the Company's website located at www.hooperholmes.com. A replay of the conference call will be available from 2:00 p.m. on May 8, 2009 until midnight on May 15, 2009, by dialing 800-406-7325 or 303-590-3030. The access code for the replay is 4069458.
About Hooper Holmes
Hooper Holmes is a leader in collecting personal health data and transforming it into useful information, enabling customers to take actions that manage or reduce their risks and expenses. As a leading provider of risk assessment services for the insurance industry, Hooper Holmes provides insurers with the widest range of medical exam, data collection, laboratory testing and underwriting services in the industry.
With presence in over 250 markets and a network of thousands of examiners, Hooper Holmes can arrange a medical exam anywhere in the U.S. and deliver the results to its customers. Each year we arrange more medical exams than any other company and process 3.8 million specimens in our laboratory. We provide a complete service for wellness, disease management, and managed care companies including scheduling support, fulfillment of supplies, blood collection kits, medical screenings, lab testing and data transmission. We underwrite hundreds of thousands of cases annually and complete more than two million telephone interviews.
This press release contains "forward-looking" statements, as such term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, these forward-looking statements are our ability to successfully implement our business strategy; uncertainty as to our working capital requirements over the next 12 to 24 months; our ability to maintain compliance with the financial covenant in our credit facility; our expectations regarding our operating cash flows; and the rate of life insurance application activity. Additional information about these and other factors that could affect the Company's business is set forth in the Company's annual report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on March 16, 2009. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events, except as required by law.
Hooper Holmes, Inc.
Consolidated Statements of Operations
(unaudited; in thousands, except share and per-share data)
Three Months Ended March 31,
--------------------------
2009 2008
------------ ------------
Revenues $ 47,435 $ 52,379
Cost of operations 35,039 38,142
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Gross profit 12,396 14,237
Selling, general and administrative
expenses 13,832 13,336
Restructuring and other charges 188 1,653
------------ ------------
Operating loss from continuing operations (1,624) (752)
Other income (expense):
Interest income 24 73
Other expense, net (133) (56)
------------ ------------
(109) 17
------------ ------------
Loss from continuing operations before
income taxes (1,733) (735)
Income tax expense (benefit) 17 (51)
------------ ------------
Loss from continuing operations (1,750) (684)
------------ ------------
Discontinued operations:
Income from discontinued operations,
net of income tax - 86
Loss on sale of subsidiary (41) -
------------ ------------
(41) 86
------------ ------------
Net loss $ (1,791) $ (598)
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Basic and diluted earnings (loss) per share:
Continuing operations
Basic $ (0.03) $ (0.01)
Diluted $ (0.03) $ (0.01)
Discontinued operations
Basic $ - $ -
Diluted $ - $ -
Net loss
Basic $ (0.03) $ (0.01)
Diluted $ (0.03) $ (0.01)
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Weighted average number of shares -
basic and diluted 68,674,587 68,634,587
Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per-share data)
March 31, December 31,
2009 2008
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 10,202 $ 11,547
Accounts receivable, net of allowance for
doubtful accounts of $2,680 and $3,036 at
March 31, 2009 and December 31, 2008,
respectively. 26,139 25,366
Inventories 2,472 2,865
Income tax receivable 25 31
Other current assets 2,847 2,325
----------- ------------
Total current assets 41,685 42,134
Property, plant and equipment at cost 44,920 44,736
Less: accumulated depreciation and
amortization 30,424 29,395
----------- ------------
Property, plant and equipment, net 14,496 15,341
Intangible assets, net 1,320 1,429
Other assets 395 365
----------- ------------
Total assets $ 57,896 $ 59,269
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,901 $ 6,701
Accrued expenses 11,677 11,452
----------- ------------
Total current liabilities 18,578 18,153
Other long-term liabilities 186 348
Commitments and Contingencies
Stockholders' equity:
Common stock, par value $0.04 per share;
authorized 240,000,000 shares, issued
68,683,982 as of March 31, 2009 and
December 31, 2008 2,747 2,747
Additional paid-in capital 147,001 146,846
Accumulated deficit (110,545) (108,754)
----------- ------------
39,203 40,839
Less: Treasury stock at cost, 9,395 shares
as of March 31, 2009 and December 31, 2008 (71) (71)
----------- ------------
Total stockholders' equity 39,132 40,768
----------- ------------
Total liabilities and stockholders'
equity $ 57,896 $ 59,269
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