RADNOR, Pa., Aug. 14, 2008 (PRIME NEWSWIRE) -- Health Benefits Direct Corporation (OTCBB:HBDT), a leading technology innovator in the direct marketing, sales and administration 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 financial results for the second quarter ended June 30, 2008.
Second Quarter Operational Highlights
* Revenues increased 24%, to $6.4 million, compared to the second quarter of 2007 * Revenues included technology fees related to the initial deployment of our proprietary web-based agent portal Insurint(tm) * Operating expenses decreased compared to the second quarter of 2007 with expense controls in the Telesales segment more than offsetting the inclusion of Atiam's operations * Loss from operations was $1.4 million compared to $2.8 million in the comparable quarter of 2007
"Our revenues increased again this quarter due to the performance of our Atiam business, which on a year to date basis represents 20% of our revenues," said Anthony Verdi, Acting Principal Executive Officer and Chief Financial Officer of Health Benefits Direct. "Atiam's flagship software product InsPro continues to be well received by insurance carriers and third party administrators, both on a licensed and application service provider basis. We have also been successful in assisting clients in converting their current systems to InsPro and customizing the functionality of the InsPro product to further support their needs."
Mr. Verdi continued, "In addition, for the first time this quarter, we earned revenues relating to Insurint(tm), our professional grade agent sales tool. The use of our Insurint(tm) platform by independent insurance agents to market and sell health insurance and related products is an important endorsement of our proprietary technology."
Mr. Verdi further stated, "These financial results represent the first steps in restructuring our operations as we focus more resources on commercializing the Company's technology portfolio, while implementing strategic cost reduction initiatives to increase operating efficiency."
Second Quarter 2008 Financial Results
Revenues for the second quarter of 2008 increased 24% to $6.4 million, compared to $5.1 million for the second quarter of 2007, primarily due to the Atiam acquisition. Revenues for the core Telesales business segment were $5.0 million this quarter, compared to $5.1 million for the second quarter of 2007. Atiam's operating results prior to the October 1, 2007 acquisition of Atiam are excluded from 2007 comparable quarter results.
Operating expenses for the second quarter ended June 30, 2008, were $7.7 million compared to $8.0 million in the second quarter ended June 30, 2007. Operating expenses for the core Telesales business segment were $6.2 million, down 22% from operating expenses of $8.0 million in the second quarter of 2007. The reduction in Telesales operating expenses is due to the Company's closing of its New York sales office and reduction of selling and operating expenses in its Florida office. The Company entered into a sub-lease agreement for the New York office for the balance of the lease term.
Salaries, wages and related taxes in the Telesales business segment for the second quarter of 2008 included an approximate $0.3 million non-recurring stock-based compensation charge pertaining to the departure of a certain executive.
Depreciation and rent expense for the second quarter of 2008 included approximately $0.2 million of non-recurring charges pertaining to Company's closing of its New York office.
Net loss for the second quarter of 2008 was $1.3 million or ($0.03) per basic and diluted share, as compared to a net loss of $2.7 million or ($0.08) per basic and diluted share for the second quarter of 2007.
At June 30, 2008, Health Benefits Direct had a cash balance of $5.8 million, total assets of $14.5 million and total shareholders' equity of $5.1 million.
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 independent 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 For the Six
Months Ended Months Ended
June 30, June 30,
----------- ----------- ----------- -----------
2008 2007 2008 2007
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 6,394,436 $ 5,143,393 $12,782,457 $ 9,656,408
Operating
expenses:
Salaries,
commission and
related taxes 4,178,714 3,821,704 9,955,700 7,915,624
Lead,
advertising
and other
marketing 1,070,765 1,934,069 3,069,498 3,795,653
Depreciation and
amortization 607,714 561,978 1,323,430 1,113,084
Rent, utilities,
telephone and
communications 689,691 613,713 1,501,679 1,264,452
Professional
fees 668,381 633,421 1,197,108 893,728
Loss on
impairment
of property and
equipment -- -- 88,922 --
Loss on
impairment
of intangible
asset -- -- 295,633 --
Other general
and
administrative 532,252 402,015 1,050,696 806,136
----------- ----------- ----------- -----------
7,747,517 7,966,900 18,482,666 15,788,677
----------- ----------- ----------- -----------
Loss from
operations (1,353,081) (2,823,507) (5,700,209) (6,132,269)
----------- ----------- ----------- -----------
Other income
(expense):
Interest
income 22,229 123,569 52,735 172,647
Interest
expense (11,605) (7,201) (16,215) (16,015)
----------- ----------- ----------- -----------
Total other
income
(expense) 10,624 116,368 36,520 156,632
----------- ----------- ----------- -----------
Net loss $(1,342,457) $(2,707,139) $(5,663,689) $(5,975,637)
=========== =========== =========== ===========
Net loss per
common share:
Net loss per
common share
- basic and
diluted $ (0.03) $ (0.08) $ (0.15) $ (0.19)
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
basic and
diluted 41,808,004 34,084,273 38,410,827 31,504,662
=========== =========== =========== ===========
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
June 30, 2008
June 30, December 31,
2008 2007
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 5,781,065 $ 5,787,585
Accounts receivable, less allowance
for doubtful accounts $0 and
$59,106 1,334,939 1,720,014
Tax receivable 36,212 --
Deferred compensation advances 252,261 578,372
Prepaid expenses 279,575 182,087
Other current assets 12,808 22,285
------------ ------------
Total current assets 7,696,860 8,290,343
Restricted cash 1,150,000 1,150,000
Property and equipment, net of
accumulated depreciation
$1,441,280 and $1,115,562 1,325,543 1,592,480
Intangibles, net of accumulated
amortization $3,856,483 and
$3,108,771 4,154,672 5,095,960
Other assets 164,142 165,871
------------ ------------
Total assets $ 14,491,217 $ 16,294,654
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,369,062 $ 1,483,064
Amount payable to private
placement investor
Accrued expenses 1,631,313 1,406,641
Current portion of capital lease
obligations 44,332 14,707
Sub-tenant security deposit 7,301 --
Due to related parties -- 28,500
Unearned commission advances 6,139,886 8,450,585
Deferred revenue 60,000 209,125
Income tax payable -- 157,288
------------ ------------
Total current liabilities 9,251,894 11,749,910
------------ ------------
LONG TERM LIABILITIES:
Capital lease obligations 128,505 44,241
------------ ------------
Total long term liabilities 128,505 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;
41,354,645 and 34,951,384 shares
issued and outstanding 41,354 34,951
Additional paid-in capital 43,136,010 36,868,409
Accumulated deficit (38,066,546) (32,402,857)
------------ ------------
Total shareholders' equity 5,110,818 4,500,503
------------ ------------
Total liabilities and
shareholders' equity $ 14,491,217 $ 16,294,654
============ ============
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
--------------------------
2008 2007
------------ ------------
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net loss $ (5,663,689) $ (5,975,637)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation and amortization 1,323,430 1,113,084
Stock-based compensation and
consulting 1,371,632 835,688
Loss on impairment of property and
equipment 88,922 --
Loss on impairment of intangible
assets 295,633 --
Provision for bad debt 63,850 620
Changes in assets and liabilities:
Accounts receivable 321,225 879,580
Tax receivable (36,212) --
Deferred compensation advances 326,111 (176,140)
Prepaid expenses (97,488) (191,441)
Other current assets 9,477 (30,926)
Other assets 1,729 (147,205)
Accounts payable (114,002) 60,020
Accrued expenses 199,668 57,589
Sub-tenant security deposit 7,301 --
Due to related parties (28,500) (63,672)
Unearned commission advances (2,310,699) 2,229,195
Deferred revenue (149,125) --
Income tax payable (157,288) --
------------ ------------
Net cash used in operating
activities (4,548,025) (1,409,245)
------------ ------------
Cash Flows From Investing Activities:
Purchase of property and equipment (234,945) (352,986)
Purchase of intangible assets and
capitalization of software
development (267,202) (260,862)
------------ ------------
Net cash used in investing
activities (502,147) (613,848)
------------ ------------
Cash Flows From Financing Activities:
Gross proceeds from capital leases 126,097 --
Payments on capital leases (12,207) --
Gross proceeds from sales of common
stock 5,000,000 11,250,000
Gross proceeds from exercise of
warrants -- 393,750
Placement and other fees paid in
connection with offering (70,238) (895,240)
------------ ------------
Net cash provided by
financing activities 5,043,652 10,748,510
------------ ------------
Net increase (decrease) in
cash (6,520) 8,725,417
Cash - beginning of the year 5,787,585 2,311,781
------------ ------------
Cash - end of the period $ 5,781,065 $ 11,037,198
============ ============