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BASKING RIDGE, N.J. -- August 07, 2009 -- Hooper Holmes (NYSE Amex:HH) today announced financial results for the three and six months ended June 30, 2009.
Consolidated revenues totaled $46.2 million for the second quarter of 2009 compared to $51.2 million for the second quarter of 2008 and $47.4 million in the first quarter of 2009. The Company recorded a net loss of $0.5 million for the second quarter of 2009, or $(0.01) per share compared to net income of $0.1 million, or $0.00 per share in 2008. The net loss for the second 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 the Company's current IT system. In addition, the net loss for the second quarter of 2009 includes $0.7 million of restructuring and other charges. The net income for the second quarter 2008 included income from discontinued operations of $0.4 million.
For the six months ended June 30, 2009, consolidated revenues were $93.6 million compared to $103.6 million in the comparable period of 2008. The Company's net loss for the six months ended June 30, 2009 totaled $2.3 million, or $(0.03) per share, compared to a net loss of $0.5 million, or $(0.01) per share in 2008. The results for the six months ended June 30, 2009 include a non-cash charge of $1.6 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company's current IT system. The 2009 results also include restructuring and other charges totaling $0.9 million. The net loss for the six months ended June 30, 2008 included restructuring and other charges of $1.7 million and $0.5 million of income from discontinued operations.
Revenues by service lines include:
* Portamedic revenue totaled $34.6 million for the second quarter of 2009
compared to $35.0 million for the first quarter of 2009 and $36.4 million
in the second quarter of 2008.
* Heritage Labs revenue totaled $3.1 million for the second quarter of 2009
compared to $3.2 million in the first quarter of 2009 and $3.4 million in
the second quarter of 2008.
* Hooper Holmes Services (formerly Underwriting Solutions and Infolink)
revenue totaled $6.5 million for the second quarter of 2009, a decline
from $6.8 million for the first quarter of 2009 and $10.1 million in the
second quarter of 2008, primarily due to reduced demand for the Company's
outsourced underwriting services.
* Health & Wellness revenue totaled $2.0 million for the second quarter of
2009, a decline from $2.4 million of revenue in the first quarter of 2009
primarily due to seasonality, but an increase of 48% from $1.3 million of
revenue in the comparable second quarter of 2008.
Cash provided by continuing operations approximated $3.1 million in the second quarter of 2009. As of June 30, 2009, cash and cash equivalents totaled $12.4 million, with no borrowings under the Company's credit facility.
Roy H. Bubbs, President and Chief Executive Officer of Hooper Holmes, commented, "The downturn in the economy continues to challenge our customers and as a result our revenues continue to be under pressure. However, we continue to diligently reduce costs through a number of initiatives to better align our costs with forecasted revenue levels. As we execute on these cost reductions, we are not losing focus on expanding revenues and gaining market share. We believe as the year progresses and the economy begins to stabilize, we are taking the right steps to achieve profitability."
Conference Call
The Company will host a conference call, today, August 7, 2009 at 11:00am EDT to discuss second quarter results.
To participate in the conference call, please dial 877-941-2927 or internationally 480-629-9723, conference ID: 4132381 five to ten minutes before the call is scheduled to begin. A live web cast will be hosted on the Company's web site located at www.hooperholmes.com. Listeners may also access a telephone replay of the conference call, available from 2:00 p.m. on August 7, 2009 until midnight on August 14, 2009, by dialing 800-406-7325 or internationally 303-509-3030. The access code for the replay is 4132381.
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 more than three 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.
2009 CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except share and per share data)
Three Months ended Six Months ended
June 30, June 30,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenues $ 46,212 $ 51,217 $ 93,647 $ 103,596
Cost of operations 33,292 38,230 68,331 76,372
---------------------------- ----------- ----------- ----------- -----------
Gross profit 12,920 12,987 25,316 27,224
---------------------------- ----------- ----------- ----------- -----------
Selling, general and
administrative expenses 12,661 13,246 26,493 26,582
Restructuring and other
charges 690 - 878 1,653
---------------------------- ----------- ----------- ----------- -----------
Operating loss from
continuing operations (431) (259) (2,055) (1,011)
---------------------------- ----------- ----------- ----------- -----------
Other income (expense):
Interest income 20 43 44 116
Other expenses, net (69) (56) (202) (112)
---------------------------- ----------- ----------- ----------- -----------
(49) (13) (158) 4
---------------------------- ----------- ----------- ----------- -----------
Loss from continuing
operations before
income taxes (480) (272) (2,213) (1,007)
Income tax expense (benefit) 21 (12) 38 (63)
---------------------------- ----------- ----------- ----------- -----------
Loss from continuing
operations $ (501) $ (260) $ (2,251) $ (944)
---------------------------- ----------- ----------- ----------- -----------
Discontinued operations:
Income from discontinued
operations, net of income
tax - 126 - 212
Income (loss) on sale of
subsidiary - 280 (41) 280
---------------------------- ----------- ----------- ----------- -----------
- 406 (41) 492
---------------------------- ----------- ----------- ----------- -----------
---------------------------- ----------- ----------- ----------- -----------
Net (loss) income $ (501) $ 146 $ (2,292) $ (452)
============================ =========== =========== =========== ===========
Basic and diluted
(loss)/earnings per share:
Continuing operations:
Basic $ (0.01) $ - $ (0.03) $ (0.01)
Diluted $ (0.01) $ - $ (0.03) $ (0.01)
Discontinued operations:
Basic $ - $ 0.01 $ - $ 0.01
Diluted $ - $ 0.01 $ - $ 0.01
Net loss:
Basic $ (0.01) $ - $ (0.03) $ (0.01)
Diluted $ (0.01) $ - $ (0.03) $ (0.01)
============================ =========== =========== =========== ===========
Weighted average number
of shares:
Basic and diluted 68,684,477 68,647,774 68,679,559 68,641,180
Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per share data)
June 30, December 31,
2009 2008
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 12,368 $ 11,547
Accounts receivable, net of
allowance for doubtful accounts
of $2,042 and $3,036 at June 30,
2009 and December 31,
2008, respectively 23,484 25,366
Inventories 3,185 2,865
Income tax receivable 19 31
Other current assets 1,570 2,325
-------- --------
Total current assets 40,626 42,134
Property, plant and equipment at cost 45,096 44,736
Less: accumulated depreciation and
amortization 31,938 29,395
-------- --------
Property, plant and equipment, net 13,158 15,341
Intangible assets, net 1,140 1,429
Other assets 394 365
-------- --------
Total assets $ 55,318 $ 59,269
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,619 $ 6,701
Accrued expenses 10,147 11,452
-------- --------
Total current liabilities 15,766 18,153
Other long-term liabilities 772 348
Commitments and Contingencies
Stockholders' equity:
Common stock, par value $.04 per
share; authorized 240,000,000
shares, issued 68,713,982 and
68,683,982 shares as of
June 30, 2009 and December
31, 2008, respectively 2,748 2,747
Additional paid-in capital 147,149 146,846
Accumulated deficit (111,046) (108,754)
-------- --------
38,851 40,839
Less: Treasury stock at cost, 9,395
shares as of June 30, 2009 and
December 31, 2008 (71) (71)
-------- --------
Total stockholders' equity 38,780 40,768
-------- --------
Total liabilities and
stockholders' equity $ 55,318 $ 59,269
======== ========
Contacts: Hooper Holmes
Roy H. Bubbs, President and Chief Executive Officer
908-766-5000
S.M. Berger & Company
Investors:
Andrew Berger
216-464-6400
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