RADNOR, Pa., March 31, 2009 (GLOBE NEWSWIRE) -- Health Benefits Direct Corporation (OTCBB:HBDT), a leading technology innovator in the marketing, sales and administration of a range of insurance products, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2008.
Fourth Quarter Highlights
* Revenues of $5.6 million, compared to $6.0 million in the fourth
quarter of 2007, due to reduced marketing and selling activity
in Telesales.
* Operating expenses decreased to $7.2 million from $10.6 million
in the fourth quarter of 2007 as a result of cost cutting
initiatives completed earlier in the year.
* Net loss of $1.6 million, or ($0.04) per share, compared with a
net loss of $4.5 million, or ($0.13) per share, in the fourth
quarter of 2007.
* At December 31, 2008, the Company had a cash balance of $1.8
million, total assets of $8.7 million and total shareholders'
equity of $1.9 million.
Fiscal Year Highlights
* Revenues increased 17% to $24.1 million, compared to $20.7
million in fiscal 2007, due to $5.6 million in revenues from
Atiam offset by lower Telesales revenues.
* Revenues of $97,177 from Insurint, the Company's proprietary,
professional-grade web-based agent portal introduced to the
market this year.
* Net loss of $9.0 million, or $0.23 per share, compared with a
net loss of $14.1 million, or $0.43 per share, in fiscal 2007.
* Net decrease in cash of $3.9 million in fiscal 2008, compared to
a net increase of $3.5 million for fiscal 2007. The decrease in
cash in 2008 was the result of net cash of $5.2 million from
financing activities, which included $5 million from a private
placement of common stock and warrants to certain institutional
investors, less $8.3 million of net cash used in operations and
$0.8 million of net cash used in investing activities.
Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer, commented, "We are very pleased with the significant progress we made during 2008 in restructuring our operations and executing on our strategic plan to better position the Company for long-term growth and profitability. By focusing on our technology businesses and exiting the agency segment of our business, we believe we are well positioned for future growth in our core markets. Additionally, we implemented strategic cost reductions to decrease our operating costs, and these efforts are reflected in our improved fourth quarter financial results.
"We remain confident about the growth potential of our technology platforms, which are gaining increasing acceptance in the market. We now have nine InsPro clients, and we are pleased with the progress we are making in growing this business. We recently enhanced the quoting capability of Insurint by adding more than 100 insurance companies to that platform and have also launched a powerful new integrated co-browsing tool."
Subsequent Events
* Raised $4 million from a private placement of preferred stock
and warrants on January 21, 2009 to an institutional investor.
* Transferred the majority of its existing health insurance
members and agreed to refer all of its ongoing health insurance
prospects to an unaffiliated third party on February 20, 2009.
* Received $1.3 million in cash, of which $1.0 million was used to
repay certain liabilities and transferred $1.4 million of
liabilities in exchange for the transfer of its existing health
insurance members and referrals of its ongoing health insurance
prospects. This business represents approximately 66% of the
Company's total revenues.
* Ceased the direct marketing and sale of health and life
insurance and related products to individuals and families and
reduced staff.
* The Company's cash balance at February 28, 2009 was $4.5 million.
Anthony Verdi remarked, "We completed another major step in the Company's restructuring with the sale of its agency business. We are now focused on providing InsPro and Insurint the financial support and resources needed to demonstrate the strength of these growing technology businesses."
About Health Benefits Direct Corporation
Through its subsidiary, Atiam Technologies, Health Benefits Direct offers InsPro software, an internet-based marketing and administration system used by Insurance carriers and Third Party Administrators. Through its subsidiary, Insurint Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates real-time quotes from more than 100 health insurance carriers, life insurance carriers and carriers of related insurance products. www.healthbenefitsdirect.com
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the growth potential of our technology platforms and providing the financial support and resources needed to demonstrate the strength of these growing technology businesses. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Moreover, Health Benefits Direct cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in Health Benefit Direct's most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission and available on Health Benefits Direct's website at www.healthbenefitsdirect.com. These documents are also available on the Securities and Exchange Commission's website at www.sec.gov. Health Benefits Direct does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, December 31,
2008 2007
----------- -----------
ASSETS
CURRENT ASSETS:
Cash $ 1,842,419 $ 5,787,585
Accounts receivable, less allowance for
doubtful accounts $2,173 and $59,106 919,868 1,720,014
State tax receivable 31,290 --
Deferred compensation advances 36,186 578,372
Prepaid expenses 177,833 182,087
Other current assets 8,461 22,285
----------- -----------
Total current assets 3,016,057 8,290,343
Restricted cash 1,150,000 1,150,000
Property and equipment, net of
accumulated depreciation $1,545,150
and $1,115,562 1,163,948 1,592,480
Intangibles, net of accumulated
amortization $4,859,779 and $3,108,771 3,198,407 5,095,960
Other assets 180,641 165,871
----------- -----------
Total assets $ 8,709,053 $16,294,654
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 912,751 $ 1,483,064
Accrued expenses 2,030,948 1,406,641
Current portion of capital lease
obligations 89,297 14,707
Sub-tenant security deposit 39,093 --
Due to related parties 4,315 28,500
Unearned commission advances 3,022,161 8,450,585
Deferred revenue 457,500 209,125
Income tax payable -- 157,288
----------- -----------
Total current liabilities 6,556,065 11,749,910
----------- -----------
LONG TERM LIABILITIES:
Deferred tax liability -- --
Capital lease obligations 209,511 44,241
----------- -----------
Total long term liabilities 209,511 44,241
----------- -----------
SHAREHOLDERS' EQUITY:
Preferred stock ($.001 par value;
10,000,000 shares authorized; no shares
issued and outstanding) -- --
Common stock ($.001 par value;
90,000,000 shares authorized; 41,279,645
and 34,951,384 shares issued and
outstanding 41,279 34,951
Additional paid-in capital 43,281,139 36,868,409
Accumulated deficit (41,378,941) (32,402,857)
----------- -----------
Total shareholders' equity 1,943,477 4,500,503
----------- -----------
Total liabilities and
shareholders' equity $ 8,709,053 $16,294,654
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HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months For the Years Ended
Ended December 31, December 31,
------------------------- -------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
Revenues $ 5,629,551 $ 6,005,203 $ 24,128,027 $ 20,709,750
Operating
Expenses:
Salaries,
commission
and related
taxes 3,128,724 5,214,749 17,132,830 17,544,167
Lead, advertising
and other
marketing 482,687 2,516,253 4,390,483 8,489,695
Depreciation and
amortization 616,494 655,585 2,568,145 2,286,767
Rent, utilities,
telephone and
communications 1,371,976 786,436 3,509,713 2,720,735
Professional fees 988,503 784,762 2,948,503 2,062,107
Loss on
impairment of
property and
equipment -- -- 88,922 --
Loss on impairment
of intangible
asset 85,078 -- 380,711 125,000
Other general and
administrative 570,268 651,194 2,072,431 1,934,320
------------ ------------ ------------ ------------
7,243,730 10,608,979 33,091,738 35,162,791
------------ ------------ ------------ ------------
Loss from
operations (1,614,179) (4,603,776) (8,963,711) (14,453,041)
------------ ------------ ------------ ------------
Other income
(expense):
Gain (Loss) on
disposal of
property and
equipment 45,895 -- (46,479) (2,592)
Interest income 6,794 70,743 73,913 350,707
Interest expense (11,903) (9,848) (39,807) (31,673)
------------ ------------ ------------ ------------
Total other
income (expense) 40,786 60,895 (12,373) 316,442
------------ ------------ ------------ ------------
Net loss $ (1,573,393)$ (4,542,881)$ (8,976,084)$(14,136,599)
============ ============ ============ ============
Net loss per
common share:
Net loss per
common share -
basic and
diluted $ (0.04)$ (0.13)$ (0.23)$ (0.43)
============ ============ ============ ============
Weighted average
common shares
outstanding -
basic and diluted 41,279,645 34,867,255 39,734,505 33,006,127
============ ============ ============ ============
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended
December 31,
----------------------------
2008 2007
------------ -------------
Cash Flows From Operating Activities:
Net loss $ (8,976,084) $ (14,136,599)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 2,568,145 2,286,767
Stock-based compensation and consulting 1,516,686 1,772,031
Loss on impairment of property and
equipment 88,922 --
Loss on impairment of intangible assets 380,711 --
Loss on the disposal of property and
equipment 46,479 --
Provision for bad debt 46,748 (20,317)
Changes in assets and liabilities:
Accounts receivable 753,398 1,140,843
State tax receivable (31,290) --
Deferred compensation advances 542,186 106,626
Prepaid expenses 4,254 (71,944)
Other current assets 13,824 (11,274)
Other assets (14,770) (61,308)
Accounts payable (570,313) 288,532
Accrued expenses 599,301 (143,662)
Sub-tenant security deposit 39,093 --
Due to related parties (24,185) (35,172)
Unearned commission advances (5,428,424) 3,295,468
Deferred revenue 248,375 51,837
Income tax payable (157,288) 37,288
------------ -------------
Net cash used in operating
activities (8,354,232) (5,500,884)
------------ -------------
Cash Flows From Investing Activities:
Purchase of property and equipment (533,661) (555,787)
Proceeds from the sale of property and
equipment 64,950 --
Purchase of intangible assets and
capitalization of software development (291,847) (1,331,233)
------------ -------------
Net cash used in investing
activities (760,558) (1,887,020)
------------ -------------
Cash Flows From Financing Activities:
Capital leases obligations assumed -- 19,081
Gross proceeds from capital leases 282,271 41,875
Payments on capital leases (42,409) (2,008)
Gross proceeds from sales of common
stock 5,000,000 11,250,000
Gross proceeds from exercise of
warrants -- 450,000
Placement and other fees paid in
connection with offering (70,238) (895,240)
------------ -------------
Net cash provided by financing
activities 5,169,624 10,863,708
------------ -------------
Net increase (decrease) in cash (3,945,166) 3,475,804
Cash - beginning of the year 5,787,585 2,311,781
------------ -------------
Cash - end of the year $ 1,842,419 $ 5,787,585
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