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BASKING RIDGE, NJ, June 29, 2000 -- Hooper Holmes, Inc.(AMEX:HH) today announced that revenues and earnings for the secondquarter ending June 30, 2000 are expected to be lower thanpreviously anticipated due to the Triple X phenomenon and higherthan expected costs related to the Paramedical Services of America("PSA") acquisition.
Based on preliminary data for the second quarter, revenues areexpected to be 25% to 30% above the $54.5 million reported in thesecond quarter of 1999. Earnings per share are expected to be inthe range of $0.06-$0.07 compared to $0.08 in last year's secondquarter.
Jim McNamee, Chairman and Chief Executive Officer, commented,"As disclosed in our press release on May 19, we believe thatTriple X, the one-time regulatory amendment affecting the insuranceindustry, appears to have resulted in a revenue shift from thesecond quarter into the first quarter. In addition, while theintegration of PSA continues to progress, we expect our efforts tobring PSA's cost structure in line with Hooper Holmes' to takesomewhat longer than previously anticipated.
Mr. McNamee added, "Although we are not pleased with theextent of the revenue trough related to Triple X, or the slowerthan expected pace of aligning PSA's cost structure, thefundamentals of our core businesses remain strong with revenuesexpected to grow nearly 30% in the second quarter, including thecontribution of PSA. In addition, Portamedic SelectT, a pre-underwriting solution for direct response life and health insurers,is on track to begin beta testing in early July. We continue toactively pursue opportunities to expand Hooper Holmes' expertise innew markets. However, in the near term, we expect the factorseffecting the second quarter to translate into approximately 15% to20% earnings growth for the full year. Longer term, we areconfident that our strong market position and ability to leverageour infrastructure will enable us to resume historical levels ofgrowth in the upcoming year."
Hooper Holmes expects to report second quarter results on July25, 2000.
Hooper Holmes, Inc. provides health information services oninsurance policy applicants to the life insurance industry. TheCompany provides these health information services through over 300locations nationwide.
Certain information contained herein includes information thatis forward-looking. The matters referred to in forward-lookingstatements may be affected by the risks and uncertainties involvingin the Company's business. These forward-looking statements arequalified in the entirety by cautionary statements contained in theCompany's Securities and Exchange Commission filings.
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CONTACT: Fred Lash
Chief Financial Officer
908/766-5000
Investors: Robert P. Jones/Theresa Schillero
Media: Stacey Nield
Morgen-Walke Associates
212/850-5600
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