|
BASKING RIDGE, N.J., Feb. 25, 2002 -- Hooper Holmes, Inc. (Amex:HH) today reported financial results for the fourth quarter and year ended December 31, 2001.
Revenue in the fourth quarter grew 5% to $63.6 million from $60.3 million in last year's comparable quarter. Net income for the quarter was $3.8 million, or $0.06 per diluted share which includes a one-time, non-operating provision for legal matters of $0.7 million on an after-tax basis. Excluding this one-time provision, net income for the quarter was $4.5 million, or $0.07 per diluted share. In last year's fourth quarter, the Company reported net income of $4.5 million, or $0.07 per diluted share.
Jim McNamee, Chairman and Chief Executive Officer, stated, "We are pleased to report a stronger than expected quarter in which revenues and earnings surpassed our original guidance. These results are attributable to an improved environment for the life insurance industry, as well as our continued focus on cost management. This focus resulted in a gross margin of 28.9%, a substantial improvement from the 27.5% and 27.4% reported in the third quarter of 2001 and the fourth quarter of 2000, respectively. Additionally, the operating income percentage for the quarter improved 226 basis points over the third quarter of 2001."
For the year ended December 31, 2001, the Company reported revenue of $245.2 million. Net income was $15.2 million, or $0.23 per diluted share. Excluding the aforementioned one-time provision for legal matters, net income for the year was $16.0 million, or $0.24 per diluted share. For the year ended December 31, 2000, revenue was $275.0 million with net income of $21.0 million, or $0.31 per diluted share.
Mr. McNamee commented, "The past year was a challenging one for Hooper Holmes, primarily due to the continued softness in the life insurance underwriting industry which impacted our revenues. In light of this difficult operating environment, we took the steps necessary to improve our product offering and manage our expenses, which resulted in year over year gross margin expansion. With Portamedic Select(TM), e-Nable, and other initiatives, we believe that Hooper Holmes leads our industry in technological advances which provide our Company a unique competitive advantage as the industry appears to be gaining momentum."
Looking ahead, Mr. McNamee stated, "We are cautiously optimistic about the positive trends experienced by the life insurance industry in the fourth quarter. Based on current information, and what appears to be an improving life insurance market place, we anticipate 2002 revenues to grow approximately 6% to 8% over 2001 levels, with earnings per diluted share approximately 15% to 20% above the $0.23 reported in 2001. First quarter 2002 results are expected to track along historical trends, and as such, we anticipate revenue and earnings to be flat or slightly up from the first quarter 2001 amounts of $63.6 million and $4.7 million respectively."
Hooper Holmes will host a conference call today to discuss fourth quarter and year end 2001 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 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.
Consolidated Statements of Income
(in thousands, except share and per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenues $63,590 $60,349 $245,185 $274,974
Cost of operations 45,196 43,814 175,282 197,347
Gross profit 18,394 16,535 69,903 77,627
Selling, general and
administrative
expenses 11,580 10,502 45,792 44,994
Operating income 6,814 6,033 24,111 32,633
Other income
(expense)
Interest expense (39) (69) (204) (1,291)
Interest income 598 1,221 3,290 4,259
Other (expense)
income (1,055) 159 (1,273) 533
(496) 1,311 1,813 3,501
Income before
income taxes 6,318 7,344 25,924 36,134
Income taxes 2,488 2,829 10,677 15,170
Net income 3,830 4,515 15,247 20,964
Earnings per
share:
Basic $0.06 $0.07 $0.23 $0.32
Diluted $0.06 $0.07 $0.23 $0.31
Weighted average
number of
shares:
Basic 64,504,535 65,735,882 64,895,764 64,830,697
Diluted 67,018,472 68,782,030 67,618,151 68,377,742
*Note: Per share calculations are adjusted to reflect a 2-for-1 stock
split effective April 12, 2000.
Hooper Holmes, Inc.
Consolidated Balance Sheets
12/31/01 12/31/00
(audited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents $52,571,616 $45,680,471
Marketable securities 31,225,891 29,188,309
Accounts receivable, net 24,939,364 28,870,624
Other current assets 5,676,399 4,539,330
Total current assets 114,413,270 108,278,734
Property, plant and equipment: 28,188,908 27,382,480
Less: Accumulated depreciation
and amortization 20,355,456 18,058,073
Property, plant and
equipment, net 7,833,452 9,324,407
Goodwill, net 81,515,202 78,815,845
Intangible assets, net 11,995,686 13,865,768
Investment 5,218,750 0
Other assets 994,383 751,128
Total assets $221,970,743 $211,035,882
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt $239,670 196,836
Accounts payable 7,479,797 7,402,862
Accrued expenses:
Insurance benefits 386,093 291,408
Salaries, wages and fees 3,368,318 2,585,457
Payroll and other taxes 289,779 232,348
Income taxes payable 4,683,762 902,721
Other 3,906,661 3,362,025
Total current liabilities 20,354,080 14,973,657
Long term debt, less current
maturities 3,280,496 3,195,295
Deferred income taxes 1,741,617 1,708,954
Minority interest 187,676 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 134,482,010 135,419,195
Accumulated other comprehensive
income 201,589 0
Retained earnings 84,308,815 71,009,995
221,692,377 209,127,357
Less: Treasury stock at cost
(2,949,459 and 1,993,564 shares) 25,285,503 18,050,736
Total stockholders' equity 196,406,874 191,076,621
Total liabilities and stockholders'
equity $221,970,743 $211,035,882
Contacts:
Hooper Holmes, Inc.
Fred Lash, Chief Financial Officer
+1-908-766-5000
Morgen-Walke Associates
Investors:
Theresa Vogt/Lanie Fladell
Media:
Dan Budwick
+1-212-850-5600,
for Hooper Holmes, Inc.
|