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BASKING RIDGE, N.J., April 28, 2005 -- Hooper Holmes, Inc. (HH) today reported financial results for the first quarter ended March 31, 2005.
Total revenues for the quarter increased 3% to $82.5 million from $80.0 million in the first quarter of 2004. Net income was $2.4 million, or $0.04 per diluted share (including a $0.6 million after-tax restructuring charge, related to employee terminations and branch office closures) compared to $3.1 million, or $0.05 per diluted share, in the 2004 first quarter.
Revenues for the Company's Health Information Division ("HID") grew 2% to $71.9 million in the 2005 first quarter compared to $70.3 million in the first quarter, 2004.
Highlights of the HID's performance in the first quarter of 2005 include:
-- Mid-America Agency Services (MAAS), our outsourced underwriting
business, which we acquired on May 1, 2004, which added $4.5 million in
revenues for the quarter;
-- Medicals Direct, our UK subsidiary, which increased revenues 12% to
$10.6 million as a result of aggressive expansion efforts and select
small acquisitions made in 2004;
-- Heritage Labs, which generated 14% revenue growth to $4.8 million, due
to additional market share gains;
-- Infolink, which generated 6% revenue growth to approximately $7.0
million, on the continued success of its call center; and
-- Portamedic revenues, which were $45.0 million compared to $50.0 million
in the same period last year.
Revenues for the Company's Claims Evaluation Division ("CED") increased approximately 9% to $10.6 million in the first quarter of 2005, primarily as a result of the acquisition of Michigan Evaluation Group on May 1, 2004.
Jim McNamee, Chairman, President and Chief Executive Officer of Hooper Holmes, stated, "Our first quarter results were in-line with our expectations, which represents a solid performance given the ongoing reorganization activities and related charge that we incurred. All our business units met our expectations for the quarter, with the exception of our Portamedic examinations business, which, nevertheless saw a strong finish to the quarter.
Mr. McNamee concluded, "During 2005 we will continue with a prudent restructuring to position the Company for long-term growth. We continue to believe that if our core examinations business stabilizes the Company can achieve a 15% to 20% improvement in earnings over 2004, excluding any additional restructuring charges."
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 until the next quarterly conference call.
Hooper Holmes provides outsourced risk assessment services to the life insurance industry through over 265 locations nationwide and in the United Kingdom, as well as claims evaluation information services to the automobile, and workers' compensation insurance industries.
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.
2005 CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
Three Months ended March 31,
2005 2004
Revenues $ 82,505 $ 79,993
Cost of operations 58,846 57,148
Gross profit 23,659 22,845
Selling, general and
administrative expenses 19,460 17,793
Operating income 4,199 5,052
Other income (expense):
Interest expense (180) (148)
Interest income 47 105
Other expense, net (95) (123)
(228) (166)
Income before income taxes 3,971 4,886
Income taxes 1,595 1,805
Net income $2,376 $3,081
Earnings per share:
Basic $ 0.04 $ 0.05
Diluted $ 0.04 $ 0.05
Weighted average number of shares:
Basic 65,238,859 64,876,031
Diluted 66,455,731 66,747,322
HOOPER HOLMES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
3/31/05 12/31/04
ASSETS
Current Assets:
Cash and cash equivalents $ 11,968 $ 16,973
Marketable securities 6,179 6,886
Accounts receivable, net 49,188 42,001
Other current assets 7,082 7,242
Total current assets 74,417 73,102
Property, plant and equipment: 37,167 36,740
Less: Accumulated depreciation
and amortization 26,087 25,540
Property, plant and equipment, net 11,080 11,200
Goodwill 155,422 155,502
Intangible assets 34,063 35,380
Other assets 703 521
Total assets $ 275,685 $ 275,705
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,062 $ 1,067
Accounts payable 14,628 14,701
Accrued expenses:
Salaries, wages and fees 1,047 1,105
Income taxes payable 3,764 2,512
Other 14,073 15,453
Total current liabilities 34,574 34,838
Long term debt, less current maturities -- 1,000
Other long term liabilities 3,848 3,881
Deferred income taxes 7,301 7,475
Minority interest 260 254
Stockholders' equity:
Common stock, par value $.04 per
share; authorized 240,000,000 shares,
issued 67,499,074 in 2005 and 2004. 2,700 2,700
Additional paid-in capital 125,919 126,086
Accumulated other comprehensive income 1,306 1,466
Retained earnings 116,821 115,424
246,746 245,676
Less: Treasury stock at cost
(2,248,595 shares in 2005
and 2,297,995 shares in 2004) 17,044 17,419
Total stockholders' equity 229,702 228,257
Total liabilities and
stockholders' equity $ 275,685 $ 275,705
Contact:
Hooper Holmes, Inc.
Fred Lash, Chief Financial Officer
+1-908-766-5000
Investors: Joh Capodanno or Lanie Marcus
or Media: Sean Leous, all of Financial Dynamics
+1-212-850-5600
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