Health Benefits Direct Announces First Quarter 2008 Financial Results


RADNOR, Pa., May 15, 2008 (PRIME NEWSWIRE) -- Health Benefits Direct Corporation (OTCBB:HBDT), a leading technology innovator in the direct marketing and sales of a wide range of individual health insurance, family health insurance, life insurance and other related products for the individual and family insurance market, today announced its results of operations for the first quarter ended March 31, 2008.

First Quarter Operational Highlights



 * Revenues increased 42% compared to the first quarter of 2007.
 * Raised aggregate gross proceeds of $5 million from a private
   placement of common stock and warrants to certain institutional
   investors.
 * Closed New York office and reduced agency sales and support staff
   in Florida as part of overall strategic initiative to reduce
   operating costs.
 * Signed first contract to provide the Insurint(tm) platform to
   independent agents and successfully deployed the technology
   subsequent to quarter-end

"We are pleased to report an increase in our revenues for the first quarter of 2008 which were largely due to the performance of Atiam, a technology company that we acquired in October of last year, and, to a lesser extent, an increase in commission revenue in our Telesales business," stated Anthony Verdi, Chief Operating Officer and Chief Financial Officer of Health Benefits Direct. "Atiam contributed significant revenue and a modest profit to our results and, as part of our technology portfolio, further positions us for continued growth and execution on our strategy to be a technology innovator to the insurance industry. As part of this, Atiam's InsPro product continues to be highly visible and well received in the insurance carrier and TPA market place."

Mr. Verdi continued, "Our recently accelerated initiatives to increase our operating efficiency, including closing the New York office and reducing the sales and support staff in Florida, are already beginning to show positive results as evidenced by our first quarter financial results."

First Quarter 2008 Financial Results

Net loss for the first quarter of 2008 was $(4,321,232), or $(0.12) per basic and diluted share, as compared to a net loss of $(3,268,498), or $(0.11) per basic and diluted share for the first quarter of 2007. The net loss for the first quarter of 2008 included non-recurring restructuring and other charges amounting to approximately $1.6 million.

Revenues for the first quarter of 2008 increased 42% to $6,388,021 as compared to $4,513,015 for the first quarter of 2007. Atiam's revenue accounted for $1,285,323, or 28%, of the increase. Atiam's operating results prior to our October 1, 2007 acquisition of Atiam are excluded from our 2007 comparable quarter results.

Operating expenses for the first quarter ended March 31, 2008, totaled $10,350,594 as compared to $7,821,777, a 32% increase as compared to the first quarter ended March 31, 2007. Atiam's expenses accounted for $1,246,292 or, 16%, of the increase over 2007. Operating expenses include approximately $1.6 million of unique charges in the first quarter of 2008.

Salaries, wages and related taxes in the Telesales business segment for the first quarter of 2008 included approximately $1 million of non-recurring charges pertaining to the departure of certain executives and a director, together with expenses related to the Company's closing of its New York office. Depreciation and rent expense for the first quarter of 2008 included approximately $0.2 million of non-recurring charges pertaining to Company's closing of its New York office.

Additionally, the Company recorded an approximate $0.4 million charge for the impairment of leasehold improvements for its New York Office and certain intangible assets in the first quarter of 2008.

At March 31, 2008, Health Benefits Direct had a cash balance of $7,420,494, total assets of $16,848,984 and total shareholders' equity of $5,936,331.

Mr. Verdi concluded, "As announced in January of this year, we signed an agreement to provide our Insurint(tm) platform to AHCP, a leading health insurance agency and we are pleased to report that their independent insurance agents are taking advantage of Insurint(tm). For the first time, Insurint(tm) is being actively used outside of our own agency and we are proud to have reached this critical milestone. We look forward to reporting on the progress of this important business segment in coming quarters."

About Health Benefits Direct Corporation

Health Benefits Direct Corporation is a technologically innovative contact center based insurance agency that operates an interactive online marketplace enabling consumers to shop for, compare, and apply for individual health insurance, family health insurance, life insurance and other related products for the individual and family insurance market. Its streamlined Quick-to-Call sales platform, supported by proprietary online technology, dialing applications and tele-application voice signature process, promotes efficiency for consumers purchasing and insurance carriers underwriting individual and family insurance products. Through its subsidiary, Insurint (tm) Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates accurate real-time quotes from multiple highly-rated health insurance carriers, life insurance carriers and carriers of related insurance products. Insurint's user-friendly platform enables agents to view and share with proposed insureds detailed comparisons of multiple insurance products, policy brochures and other useful information instantly, resulting in highly competitive application processing platform for insurance agents and consumers. Through its subsidiary, Atiam Technologies, Health Benefits Direct offers the InsPro system, an internet-based marketing and administration system used by Insurance carriers and Third Party Administrators. www.healthbenefitsdirect.com

Safe Harbor Statement

In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the effect of the agreement to offer the Insurint platform to AHCP's agents or the anticipated launch date of this offering to AHCP agents. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Moreover, Health Benefits Direct cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially and which are identified from time to time in Health Benefits Direct's reports filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Health Benefits Direct undertakes no obligation to update publicly any forward-looking statement.



         HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS

                                            For the Three Months Ended
                                                     March 31,
                                            ------------  ------------
                                                2008          2007
                                            ------------  ------------
                                             (Unaudited)   (Unaudited)

 Revenues                                   $  6,388,021  $  4,513,015


 Operating expenses:
 Salaries, commission and related taxes        5,776,986     4,093,920
 Lead, advertising and other marketing         1,998,733     1,861,584
 Depreciation and amortization                   715,716       551,106
 Rent, utilities, telephone and
  communications                                 811,988       650,739
 Professional fees                               528,727       260,307
 Other general and administrative                518,444       404,121
                                            ------------  ------------

                                              10,350,594     7,821,777
                                            ------------  ------------

 Loss from operations                         (3,962,573)   (3,308,762)
                                            ------------  ------------

 Other income (expense):
   Loss on impairment of property and
    equipment                                    (88,922)           --
   Loss on impairment of intangible asset       (295,633)           --
   Interest income                                30,506        49,078
   Interest expense                               (4,610)       (8,814)
                                            ------------  ------------

     Total other income (expense)               (358,659)       40,264
                                            ------------  ------------

 Net loss                                   $ (4,321,232) $ (3,268,498)
                                            ============  ============

 Net loss per common share:
   Net loss per common share - basic and
    diluted                                 $      (0.12) $      (0.11)
                                            ============  ============

 Weighted average common shares outstanding
  - basic and diluted                         35,335,465    28,896,388
                                            ============  ============


         HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEET

                                              March 31,   December 31,
                                                2008          2007
                                            ------------  ------------
                                             (Unaudited)
                   ASSETS

 CURRENT ASSETS:
  Cash                                      $  7,420,494  $  5,787,585

  Accounts receivable, less allowance for
   doubtful accounts $35,080 and $59,106       1,732,037     1,720,014
  Tax receivable                                  36,212            --
  Deferred compensation advances                 345,732       578,372
  Prepaid expenses                               218,949       182,087
  Other current assets                            12,193        22,285
                                            ------------  ------------

   Total current assets                        9,765,617     8,290,343

 Restricted cash                               1,150,000     1,150,000
 Property and equipment, net of accumulated
  depreciation $1,274,178 and $1,115,562       1,348,983     1,592,480
 Intangibles, net of accumulated
  amortization $3,416,560 and $3,108,771       4,420,387     5,095,960
 Other assets                                    163,997       165,871
                                            ------------  ------------

 Total assets                               $ 16,848,984  $ 16,294,654
                                            ============  ============

    LIABILITIES AND SHAREHOLDERS' EQUITY

 CURRENT LIABILITIES:
  Accounts payable                          $    986,835  $  1,483,064
  Amount payable to private placement
   investor
  Accrued expenses                             1,579,788     1,406,641
  Current portion of capital lease
   obligations                                    22,776        14,707
  Sub-tenant security deposit                      7,301            --
  Due to related parties                              --        28,500
  Unearned commission advances                 8,117,836     8,450,585
  Deferred revenue                               128,875       209,125
  Income tax payable                                  --       157,288
                                            ------------  ------------

 Total current liabilities                    10,843,411    11,749,910
                                            ------------  ------------

 LONG TERM LIABILITIES:
   Capital lease obligations                      69,242        44,241
                                            ------------  ------------

   Total long term liabilities                    69,242        44,241
                                            ------------  ------------

 SHAREHOLDERS' EQUITY:
  Preferred stock ($.001 par value;
   10,000,000 shares authorized; no shares
   issued and outstanding)                            --            --
  Common stock ($.001 par value; 90,000,000
   shares authorized; 41,255,635 and
   34,951,384 shares issued and outstanding       41,255        34,951
  Additional paid-in capital                  42,619,165    36,868,409
  Accumulated deficit                        (36,724,089)  (32,402,857)
                                            ------------  ------------

   Total shareholders' equity                  5,936,331     4,500,503
                                            ------------  ------------

   Total liabilities and shareholders'
    equity                                  $ 16,848,984  $ 16,294,654
                                            ============  ============


         HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS

                                            For the Three Months Ended
                                                    March 31,
                                            --------------------------
                                                2008          2007
                                            ------------  ------------
                                             (Unaudited)   (Unaudited)
 Cash Flows From Operating Activities:
  Net loss                                  $ (4,321,232) $ (3,268,498)
  Adjustments to reconcile net loss to net
   cash (used in) operating activities:
   Depreciation and amortization                 715,716       551,106
   Stock-based compensation and consulting       854,688       514,861
   Loss on impairment of property and
    equipment                                     88,922            --
   Loss on impairment of intangible assets       295,633            --
   Provision for bad debt                        (22,029)      (25,179)
  Changes in assets and liabilities:
   Accounts receivable                            10,006       813,009
   Tax receivable                                (36,212)           --
   Deferred compensation advances                232,640      (212,085)
   Prepaid expenses                              (36,862)        4,379
   Other current assets                           10,092       (16,010)
   Other assets                                    1,874        37,217
   Accounts payable                             (496,229)     (135,654)
   Accrued expenses                              148,143       (87,437)
   Sub-tenant security deposit                     7,301            --
   Due to related parties                        (28,500)      (24,509)
   Unearned commission advances                 (332,749)    1,908,619
   Deferred revenue                              (80,250)           --
   Income tax payable                           (157,288)           --
                                            ------------  ------------

    Net cash (used in) operating activities   (3,146,336)       59,819
                                            ------------  ------------

 Cash Flows From Investing Activities:
  Purchase of property and equipment             (90,595)     (176,403)
  Purchase of intangible assets and
   capitalization of software development        (92,993)     (193,710)
                                            ------------  ------------

    Net cash used in investing activities       (183,588)     (370,113)
                                            ------------  ------------

 Cash Flows From Financing Activities:
  Gross proceeds from capital leases              37,411            --
  Payments on capital leases                      (4,340)           --
  Gross proceeds from sales of common stock    5,000,000     6,817,500
  Gross proceeds from exercise of warrants            --       337,500
  Placement and other fees paid in
   connection with offering                      (70,238)           --
                                            ------------  ------------

    Net cash provided by financing
     activities                                4,962,833     7,155,000
                                            ------------  ------------

    Net increase in cash                       1,632,909     6,844,706

 Cash - beginning of the year                  5,787,585     2,311,781
                                            ------------  ------------

 Cash - end of the period                   $  7,420,494  $  9,156,487
                                            ============  ============

            

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