RADNOR, Pa., May 15, 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 first quarter ended March 31, 2009.
During the first quarter, as part of the continued restructure effort, the Company ceased selling health and life insurance products to individuals and families and disposed of a significant portion of its agency business, which is now classified as discontinued operations in the Company's financial statements.
First Quarter Highlights
* Revenues from continuing operations of $1.7 million, compared to
$1.3 million in the first quarter of 2008, due primarily to
increased consulting and implementation services revenue, two
new ASP agreements and maintenance revenues.
* Operating expenses for continuing operations of $4.1 million,
compared to $3.2 million in the first quarter of 2008, primarily
attributable to an increase in Atiam's permanent staffing and
technology consultants, investments in the InsPro product and
expanded marketing efforts -- all to support current client
requirements, future needs as well as growth plans.
* Net loss from continuing and discontinued operations of $1.3
million, or ($0.03) per share, compared with a net loss of $4.3
million, or ($0.12) per share, in the first quarter of 2008.
* Raised $4 million from a private placement of preferred stock
and warrants on January 15, 2009 to an institutional investor.
* Transferred the majority of existing health insurance members
and agreed to refer all 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 existing health
insurance members and referrals of ongoing health insurance
prospects.
* Ceased the direct marketing and sale of health and life
insurance and related products to individuals and families;
reduced staff accordingly.
* At March 31, 2009, the Company had a cash balance of $4.0
million, total assets of $8.7 million and total shareholders'
equity of $5.0 million.
Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer, commented, "Our strategic focus on InsPro and Insurint(tm), our core technology businesses, led to growth in revenues of 34% year-over-year for the first quarter. We have strategically exited the direct marketing and sale of health and life insurance and related products in our Telesales call center and through our non employee agents. These actions led to a gain of $1.2 million from discontinued operations for the first quarter representing the initial amount of consideration paid for the sale of our Telesales call center produced agency business to eHealth. This in turn drove a strong 71% year-over-year reduction in our net loss for the period."
Mr. Verdi continued, "The growth potential of our technology platforms continues to show promise and we look forward to building these businesses through focused execution and disciplined management of our resources."
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 SHEETS
March 31, December 31,
2009 2008
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 4,022,251 $ 1,842,419
Accounts receivable, less allowance
for doubtful accounts $1,069 and $0 754,007 461,875
Tax receivable 26,290 31,290
Prepaid expenses 105,553 126,804
Other current assets 6,073 8,461
------------ ------------
Total current assets 4,914,174 2,470,849
Restricted cash 1,150,000 1,150,000
Property and equipment, net of
accumulated depreciation $296,114
and $267,384 837,710 729,881
Intangibles, net of accumulated
amortization $1,204,646 and
$1,911,461 1,705,612 1,911,461
Other assets 116,914 110,607
------------ ------------
Total assets $ 8,724,410 $ 6,372,798
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 516,099 $ 733,128
Accrued expenses 1,029,435 697,255
Current portion of capital lease
obligations 109,763 89,297
Due to related parties -- 4,315
Deferred revenue 611,194 457,500
Liabilities of discontinued
operations 1,247,951 2,238,315
------------ ------------
Total current liabilities 3,514,442 4,219,810
------------ ------------
LONG TERM LIABILITIES:
Capital lease obligations 250,440 209,511
------------ ------------
Total long term liabilities 250,440 209,511
------------ ------------
SHAREHOLDERS' EQUITY:
Preferred stock ($.001 par value;
10,000,000 shares authorized;
Series A convertible preferred
stock; 3,437,500 shares authorized,
1,000,000 and 0 shares issued and
outstanding (liquidation value
$10,000,000)) 2,038,944 --
Common stock ($.001 par value;
200,000,000 shares authorized;
41,279,645 shares issued and
outstanding) 41,279 41,279
Additional paid-in capital 45,511,515 43,281,139
Accumulated deficit (42,632,210) (41,378,941)
------------ ------------
Total shareholders' equity 4,959,528 1,943,477
------------ ------------
Total liabilities and
shareholders' equity $ 8,724,410 $ 6,372,798
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HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
March 31,
------------ ------------
2009 2008
------------ ------------
(Unaudited) (Unaudited)
Revenues $ 1,722,439 $ 1,285,323
Operating Expenses:
Salaries, employee benefits and
related taxes 2,525,957 1,785,963
Advertising and other marketing 103,725 3,030
Depreciation and amortization 278,362 284,485
Rent, utilities, telephone and
communications 205,470 162,995
Professional fees 696,479 484,328
Other general and administrative 334,619 441,792
------------ ------------
4,144,612 3,162,593
------------ ------------
Loss from operations (2,422,173) (1,877,270)
------------ ------------
Gain (loss) from discontinued
operations 1,176,844 (2,469,858)
Other income (expense):
Interest income 12,111 30,506
Interest expense (20,051) (4,610)
------------ ------------
Total other income (expense) (7,940) 25,896
------------ ------------
Net loss $(1,253,269) $(4,321,232)
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Net loss per common share - basic and
diluted:
Loss from operations $ (0.06) $ (0.05)
Gain (loss) from discontinued
operations 0.03 (0.07)
------------ ------------
Net loss per common share $ (0.03) $ (0.12)
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Weighted average common shares
outstanding - basic and diluted 41,279,645 35,335,465
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HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,
------------ ------------
2009 2008
------------ ------------
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net loss $(1,253,269) $(4,321,232)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation and amortization 278,362 307,378
Stock-based compensation and
consulting 220,376 854,688
Loss on impairment of property and
equipment of discontinued operations 416,764 88,922
Loss on impairment of intangible
assets of discontinued operations 1,222,817 295,633
Gain on the disposal of property and
equipment of discontinued operations (1,562) --
Provision for bad debt -- (22,029)
Changes in assets and liabilities:
Accounts receivable (292,132) (91,817)
Tax receivable 5,000 (36,212)
Prepaid expenses 21,251 (81,958)
Other current assets 2,388 10,092
Other assets (6,306) 1,874
Accounts payable (217,029) (271,177)
Accrued expenses 332,180 (504,079)
Due to related parties (4,315) (28,500)
Deferred revenue 153,694 (80,250)
Income tax payable -- (157,288)
Liabilities of discontinued
operations (2,628,381) 889,619
------------ ------------
Net cash used in operating
activities (1,750,162) (3,146,336)
------------ ------------
Cash Flows From Investing Activities:
Purchase of property and equipment (117,344) (90,595)
Proceeds from the sale of property
and equipment of discontinued
operations 1,562 --
Purchase of intangible assets and
capitalization of software
development -- (92,993)
------------ ------------
Net cash used in investing
activities (115,782) (183,588)
------------ ------------
Cash Flows From Financing Activities:
Gross proceeds from capital leases 85,790 37,411
Payments on capital leases (24,397) (4,340)
Gross proceeds from sales of
preferred stock 4,000,000 --
Gross proceeds from sales of common
stock -- 5,000,000
Fees paid in connection with offering (15,617) (70,238)
------------ ------------
Net cash provided by financing
activities 4,045,776 4,962,833
------------ ------------
Net increase in cash 2,179,832 1,632,909
Cash - beginning of the year 1,842,419 5,787,585
------------ ------------
Cash - end of the period $ 4,022,251 $ 7,420,494
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