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BASKING RIDGE, N.J., Oct. 25, 2000 -- Hooper Holmes, Inc. (Amex:HH) today reported results for the third quarter and nine months ended September 30, 2000.
Revenues for the third quarter increased 14% to $61.3 million from $53.8 million in the comparable quarter last year. Net income was $3.9 million compared to $5.0 million in last year's third quarter. Earnings per diluted share were $0.06 compared to $0.08 in the same quarter last year.
Jim McNamee, Chairman and Chief Executive Officer, commented, "As we announced on September 18th, continued softness within the life insurance industry, combined with the traditional seasonality of the late summer months, penalized the Company's financial performance in the third quarter."
For the nine months ended September 30, 2000, revenues were $214.6 million, a 33.1% increase from the $161.2 million reported in the comparable period last year. Net income was $16.4 million compared to $14.6 million in the first nine months of 1999. Earnings per diluted share of $0.24 were flat compared to the nine month period last year.
Mr. McNamee stated, "The fundamentals of our business remain strong. We currently have $78.3 million in cash and cash equivalents to build upon our core business, both internally and through acquisitions, capitalizing on opportunities to enter new markets. We are encouraged by the progress of our DNA Sciences initiatives and our state-of-the-art Portamedic Select,which are expected to contribute to our long term growth. Going forward, we intend to continue investing in our technological infrastructure and human resources to strengthen our market position."
The Company also announced that it had repurchased over 1.3 million shares of its common stock this year to date. Under its repurchase program, Hooper Holmes is authorized to purchase 2.5 million shares of the common stock outstanding.
Analysts' fourth quarter earnings per diluted share estimates currently range from $0.07 to $0.09 per share, and year end 2000 estimates range from $0.31 to $0.33 per share. Based upon current plans and expectations, the Company anticipates fourth quarter and year end profitability will be within these ranges.
Hooper Holmes, Inc. provides health information services on insurance policy applicants to the life insurance industry. The Company provides these health information services through over 300 locations nationwide.
Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involved in the Company's business. These forward-looking statements are qualified in their entirety by cautionary statements contained in the Company's Securities and Exchange Commission filings.
HOOPER HOLMES INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except share and per share amounts)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues $ 61,270 $ 53,830 $214,624 $161,241
Cost of operations 44,700 37,753 153,533 111,183
Gross profit 16,570 16,077 61,091 50,058
Selling, general and
administrative
expenses 10,881 7,752 34,492 24,822
Operating income 5,689 8,325 26,599 25,236
Other income (expense)
Interest expense (69) (10) (1,222) (30)
Interest income 1,189 310 3,039 749
Other income (expense)
net (7) 119 374 145
1,113 419 2,191 864
Income before income
taxes 6,802 8,744 28,790 26,100
Income taxes 2,915 3,754 12,341 11,539
Net income $3,887 $4,990 $16,449 $14,561
Earnings per share:
Basic $0.06 $0.09 $0.25 $0.25
Diluted $0.06 $0.08 $0.24 $0.24
Weighted average number
of shares:
Basic 66,120,725 57,786,140 64,526,766 57,356,918
Diluted 69,425,058 61,799,940 68,234,937 61,283,202
Note: Per share calculations are adjusted to reflect a two-for-one stock split effective April 26, 2000.
HOOPER HOLMES, INC.
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2000 1999
(unaudited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents $78,325,113 $41,363,019
Accounts receivable 30,173,161 36,836,412
Other current assets 6,008,256 5,233,884
Total current assets 114,506,530 83,433,315
Property, plant and equipment: 27,294,293 26,465,947
Less: Accumulated depreciation 17,545,184 16,075,132
Net property, plant and equipment 9,749,109 10,391,815
Goodwill, net 70,892,010 73,276,965
Intangible assets, net 14,007,211 16,523,290
Other assets 573,211 846,943
Total assets $209,718,071 $184,471,328
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable $ 152,676 $ 142,953
Accounts payable 7,468,754 11,543,665
Accrued expenses:
Insurance benefits 493,839 1,559,552
Salaries, wages and fees 1,158,635 3,209,031
Payroll and other taxes 356,106 349,995
Income taxes payable -- 5,033,946
Discontinued operations 287,658 293,736
Other 2,016,235 5,224,718
Total current liabilities 11,933,903 27,357,596
Long term debt, less current maturities 3,279,817 65,307,047
Deferred income taxes 1,438,892 1,911,027
Minority interest 135,085 203,962
STOCKHOLDERS' EQUITY:
Common stock, par value $.04 per share;
authorized 240,000,000 shares
issued 67,419,474 in 2000,
and 58,391,052 in 1999 2,696,779 2,335,642
Additional paid-in capital 135,242,339 36,357,092
Retained earnings 66,989,247 51,971,602
204,928,365 90,664,336
Less: Treasury stock at cost,
1,163,000 shares in 2000
and 208,664 in 1999 11,987,991 972,640
Total stockholders' equity 192,940,374 89,691,696
Total liabilities
and stockholders' equity $209,728,071 $184,471,328
Contacts:
Fred Lash
Chief Financial Officer
908/766-5000
Investors: Robert P. Jones/Theresa Vogt
Media: Stacey Nield/Dan Budwick
Morgen-Walke Associates
212/850-5600
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