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BASKING RIDGE, N.J., April 25, 2001 -- Hooper Holmes, Inc. (Amex:HH) today reported financial results for the first quarter ended March 31, 2001.
For the first quarter ended March 31, 2001, the Company reported revenue of $63.6 million, operating income of $7.2 million, and net income of $4.7 million, or $0.07 per diluted share. For the first quarter of 2000 the Company's revenue was $85.8 million, operating income reached $14.2 million, and net income was $7.9 million, or $0.12 per diluted share. The Company stated that the strength of last year's first quarter results include the positive contribution to revenues of Triple X, a one-time regulatory amendment which affected the life insurance industry in 2000.
Jim McNamee, Chairman and Chief Executive Officer, stated, ``We are pleased to report that 2001 is off to a strong start after a difficult year in 2000. Sequentially, revenues increased by 5% and our gross and operating margins expanded substantially from the fourth quarter of 2000, reflecting ongoing efforts to manage our costs and leverage our infrastructure. In addition, we are seeing encouraging signs of steady improvement in the life insurance underwriting industry which bodes well for continued revenue and earnings growth throughout the year.''
Mr. McNamee added, ``We continue to execute our growth strategy of strengthening our national presence and maximizing technological advances to increase sales and profits. Our proposed acquisition of Medical Examination Services solidifies Hooper Holmes' position in the growing Southeast region, while our recent Teledex software licensing agreement with Amica Life Insurance is our example of leveraging our proprietary technology. Furthermore, our balance sheet remains healthy with $69 million in cash and marketable securities and little debt, giving Hooper Holmes the financial flexibility necessary to pursue strategic growth opportunities. We believe the successful execution of these strategies will enable us to approach revenues of $285 million to $295 million for the current year, with earnings per diluted share 17% to 22% above last year's levels.''
Hooper Holmes will host a conference call today to discuss first quarter results at 10:00 a.m. Eastern Time. The call will be broadcast live over the Internet, and is accessible at the Company's website located at http://www.hooperholmes.com . In addition, an online archive of the broadcast will be available within two hours of the live call.
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 involving in the Company's business. These forward-looking statements are qualified in the 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)
Three Months Ended March 31,
2001 2000
Revenues $63,626 $85,772
Cost of operations 44,775 59,973
Gross profit 18,851 25,799
Selling, general and administrative expenses 11,680 11,628
Operating income 7,171 14,171
Other income (expense)
Interest income (64) (920)
Interest expense 1005 643
Other income, expense, net (55) (39)
886 (316)
Income before income taxes 8,057 13,855
Income taxes 3,379 5,958
Net income $4,678 $7,897
Earnings per share:
Basic $0.07 $0.13
Diluted $0.07 $0.12
Weighted average shares outstanding
Basic 65,205,040 60,944,892
Diluted 67,360,817 64,953,758
Note: Per share calculations are adjusted to reflect a two-for-one
stock split effective April 12, 2000.
Hooper Holmes, Inc.
Consolidated Balance Sheets
March 31, December 31,
2001 2000
(unaudited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents $38,660,618 $45,680,471
Marketable securities 30,337,050 29,188,309
Accounts receivable 32,935,157 28,870,624
Other current assets 4,799,740 4,539,330
Total current assets 106,732,565 108,278,734
Property, plant and equipment: 27,533,409 27,382,480
Less: Accumulated depreciation 18,663,175 18,058,073
Net property, plant and equipment 8,870,234 9,324,407
Goodwill, net 78,188,139 78,815,845
Intangible assets, net 13,128,284 13,865,768
Other assets 5,781,058 751,128
Total assets $212,700,280 $211,035,882
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable $196,836 $196,836
Accounts payable 8,501,948 7,402,862
Accrued expenses:
Insurance benefits 269,054 291,408
Salaries, wages and fees 1,220,580 2,585,457
Payroll and other taxes 302,222 232,348
Income taxes payable 4,327,627 902,721
Other 3,235,411 3,362,025
Total current liabilities 18,053,678 14,973,657
Long term debt, less current maturities 3,410,836 3,195,295
Deferred income taxes 1,670,096 1,708,954
Minority interest 92,506 81,355
Stockholders' equity:
Common stock, par value $.04 per share; authorized
240,000,000 shares issued 67,499,074 in 2001,
and 67,454,174 in 2000 2,699,963 2,698,167
Additional paid-in capital 135,595,465 135,419,195
Other comprehensive income 102,175 0
Retained earnings 75,198,901 71,009,995
213,596,504 209,127,357
Less: Treasury stock at cost (2,615,864
and 1,993,564 shares) 24,123,340 18,050,736
Total stockholders' equity 189,473,164 191,076,621
Total liabilities and
stockholders' equity $212,700,280 $211,035,882
Contacts: Fred Lash, Chief Financial Officer
(908) 766-5000
Morgen-Walke Associates
Theresa Vogt, Sarah Torres, Investors
Jennifer Karchmer, Steve DiMattia, Media
(212) 850-5600
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