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BASKING RIDGE, N.J., April 25 -- Hooper Holmes, Inc. (Amex: HH) today reported financial results for the first quarter ended March 31, 2002.
Revenues for the quarter grew 5% to $66.5 million from $63.6 million in the first quarter last year. Net income was $5.8 million, or $0.09 per diluted share, 24% above the $4.7 million, or $0.07 per diluted share, reported in the 2001 first quarter. First quarter results in 2001 would have been approximately $0.007 higher, if the discontinuation of goodwill amortization in accordance with the Statement of Financial Accounting Standards No. 142 had been applied in 2001 as the Company was required to do this year.
Jim McNamee, Chairman and Chief Executive Officer, stated, ``We are pleased to report solid increases in our revenues and earnings this quarter which reflect a strengthening environment for the life insurance industry. In addition, our diligent management of costs has yielded significant benefits. Most notably, our operating margins expanded to over 14% from 11% in the same quarter last year and our earnings increased 24% on a 5% revenue gain, indicating a return to our historical levels of operating leverage.''
Looking ahead, Mr. McNamee stated, ``Based on current information, and what appears to be an improving life insurance market place, we anticipate second quarter 2002 results to be similar in terms of revenues and earnings per share, to those of the first quarter.''
Hooper Holmes will host a conference call today to discuss first quarter results at 9:30 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
March 31,
2002 2001
Revenues $66,490 $63,626
Cost of operations 45,901 44,775
Gross profit 20,589 18,851
Selling, general and administrative
expenses 11,236 11,680
Operating income 9,353 7,171
Other income (expense):
Interest expense (29) (64)
Interest income 555 1,005
Other (expense) income (190) (55)
336 886
Income before income taxes 9,689 8,057
Income taxes 3,876 3,379
Net income $5,813 $4,678
Earnings per share:
Basic $0.09 $0.07
Diluted $0.09 $0.07
Weighted average number of shares:
Basic 64,871,744 65,205,040
Diluted 67,724,851 68,255,775
Hooper Holmes, Inc.
Consolidated Balance Sheets
3/31/02 12/31/01
(unaudited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents $49,139,705 $52,571,616
Marketable securities 34,806,680 31,225,891
Accounts receivable, net 31,935,491 24,939,364
Other current assets 6,889,322 5,676,399
Total current assets 122,771,198 114,413,270
Property, plant and equipment: 28,632,045 28,188,908
Less: Accumulated depreciation and
amortization 20,885,878 20,355,456
Property, plant and equipment, net 7,746,167 7,833,452
Goodwill, net 82,607,793 81,515,202
Intangible assets, net 10,587,303 11,995,686
Investment 5,875,000 5,218,750
Other assets 1,019,255 994,383
Total assets $230,606,716 $221,970,743
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $106,925 $239,669
Accounts payable 9,358,093 7,479,797
Accrued expenses:
Insurance benefits 157,404 386,093
Salaries, wages and fees 2,034,354 3,368,318
Payroll and other taxes 373,835 289,779
Income taxes payable 5,517,628 4,683,762
Other 3,598,448 3,906,662
Total current liabilities 21,146,687 20,354,080
Long term debt, less current maturities 3,393,794 3,280,496
Deferred income taxes 1,581,910 1,741,617
Minority interest 330,111 187,676
Stockholders' equity:
Common stock, par value $.04 per share;
authorized 240,000,000 shares, issued
67,499,074 in 2002 and 2001 2,699,963 2,699,963
Additional paid-in capital 131,838,243 134,482,010
Accumulated other comprehensive income 68,320 201,589
Retained earnings 89,475,110 84,308,815
224,081,636 221,692,377
Less: Treasury stock at cost (2,324,459
and 2,949,459 shares) 19,927,422 25,285,503
Total stockholders' equity 204,154,214 196,406,874
Total liabilities and stockholders'
equity $230,606,716 $221,970,743
Contacts: Fred Lash, Chief Financial Officer, Hooper Holmes, Inc.,
+1-908-766-5000; or Investors - Theresa Vogt or Lanie Fladell, or
Media - Dan Budwick, all of Morgen-Walke Associates, +1-212-850-5600,
for Hooper Holmes, Inc.
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