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BASKING RIDGE, N.J., July 26, 2001 -- Hooper Holmes, Inc. (Amex:HH) today reported financial results for the second quarter and six months ended June 30, 2001.
For the second quarter, the Company reported revenue of $60.7 million, with net income of $3.5 million, or $0.05 per diluted share, in line with guidance provided on July 18, 2001. In last year's second quarter, revenue was $67.6 million and net income was $4.7 million, or $0.07 per diluted share.
Jim McNamee, Chairman and Chief Executive Officer, stated: "As we previously announced, the combination of a slower than expected recovery in the life insurance industry, an increasingly difficult economic environment, and competitive factors resulted in lower revenues and earnings for the second quarter. We have implemented initiatives to strengthen our long-term position, including enhanced and repackaged product offerings and continued review of our cost structure. We remain committed to investing in technology as electronic orders increase and to accommodate our faster-growing ADC business."
Mr. McNamee added, "The fundamentals of our business remain solid. With approximately $68 million in cash and marketable securities and minimal debt on the balance sheet, we have the financial flexibility to continue to pursue strategic growth opportunities, such as acquisitions and the development of new products."
For the six months ended June 30, 2001, revenues were $124.4 million versus the $153.4 million reported in the comparable period last year. Net income was $8.2 million, or $0.12 per diluted share, compared to $12.6 million, or $0.19 per diluted share, in the first half of 2000.
Mr. McNamee concluded: "Recognizing the challenges we face this year as the life insurance industry slowly recovers, we anticipate the second half of this year to be similar to the first half. For the traditionally slow third quarter, we expect revenues to be approximately $57.0 million with earnings per diluted share of approximately $0.04 compared to revenues and earnings per share of $61.3 million and $0.06, respectively in the third quarter last year."
Hooper Holmes will host a conference call today to discuss second quarter results at 10 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 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. The Company disclaims any obligation to update these forward-looking statements.
HOOPER HOLMES INC.
2001 CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Revenues $60,730 $67,581 $124,357 $153,354
Cost of operations 43,829 48,860 88,604 108,833
Gross profit 16,901 18,721 35,753 44,521
Selling, general
and administrative
expenses 11,618 11,982 23,299 23,610
Operating income 5,283 6,739 12,454 20,911
Other income (expense)
Interest expense (55) (233) (119) (1,153)
Interest income 831 1,207 1,835 1,849
Other (expense)
income, net (104) 420 (158) 381
672 1,394 1,558 1,077
Income before
income taxes 5,955 8,133 14,012 21,988
Income taxes 2,462 3,468 5,841 9,426
Net income 3,493 4,665 8,171 12,562
Earning per share:
Basic $0.05 $0.07 $0.13 $0.20
Diluted $0.05 $0.07 $0.12 $0.19
Weighted average
number of shares:
Basic 64,936,162 66,497,164 65,069,858 63,721,028
Diluted 67,011,418 70,325,995 67,186,118 67,639,877
Hooper Holmes, Inc.
Consolidated Balance Sheets
6/30/01 12/31/00
(unaudited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents $36,617,815 $45,680,471
Marketable securities 31,666,148 29,188,309
Accounts receivable, net 29,292,001 28,870,624
Other current assets 4,992,275 4,539,330
Total current assets 102,568,239 108,278,734
Property, plant and equipment: 27,711,311 27,382,480
Less: Accumulated depreciation
and amortization 19,278,866 18,058,073
Property, plant and equipment, net 8,432,445 9,324,407
Goodwill, net 81,399,702 78,815,845
Intangible assets, net 12,718,494 13,865,768
Other assets 5,770,743 751,128
Total assets $210,889,623 $211,035,882
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $189,492 196,836
Accounts payable 7,201,016 7,402,862
Accrued expenses:
Insurance benefits 338,765 291,408
Salaries, wages and fees 1,591,413 2,585,457
Payroll and other taxes 263,369 232,348
Income taxes payable 0 902,721
Other 2,803,493 3,362,025
Total current liabilities 12,387,548 14,973,657
Long term debt, less current maturities 3,389,011 3,195,295
Deferred income taxes 1,550,739 1,708,954
Minority interest 168,319 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 134,841,381 135,419,195
Accumulated other comprehensive income 93,185 0
Retained earnings 78,205,177 71,009,995
215,839,706 209,127,357
Less: Treasury stock at cost
(2,441,759 and 1,993,564 shares) 22,445,700 18,050,736
Total stockholders' equity 193,394,006 191,076,621
Total liabilities and
stockholders' equity $210,889,623 $211,035,882
Contacts: Fred Lash, Chief Financial Officer
(908) 766-5000
Morgen-Walke Associates, Inc.
Theresa Vogt, Sarah Torres, Investors
Jennifer Karchmer, Steve DiMattia, Media
(212) 850-5600
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