BASKING RIDGE, N.J., Nov 06, 2009 -- Hooper Holmes (NYSE Amex:HH) today announced financial results for the three and nine months ended September 30, 2009.
Consolidated revenues totaled $43.8 million for the third quarter of 2009, representing a 7% revenue decline from the $47.2 million in the third quarter of 2008. This is an improvement for the third quarter of 2009 in comparison to the 10% revenue decline experienced in the first half of 2009. The Company recorded a net loss of $0.7 million for the third quarter of 2009, or $(0.01) per share compared to a net loss of $2.7 million, or $(0.04) per share in 2008. The net loss for the third quarter of 2009 includes a non-cash charge of $0.6 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company's current IT system. In addition, the net loss for the third quarter of 2009 includes $0.3 million of restructuring and other charges. The net loss for the third quarter of 2008 included a loss from discontinued operations of $0.6 million.
For the nine months ended September 30, 2009, consolidated revenues were $137.4 million compared to $150.8 million in the comparable period of 2008. The Company's net loss for the nine months ended September 30, 2009 totaled $3.0 million, or $(0.04) per share, compared to a net loss of $3.1 million, or $(0.05) per share in 2008. The results for the nine months ended September 30, 2009 include a non-cash charge of $2.1 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company's current IT system. The 2009 results also include restructuring and other charges totaling $1.1 million. The net loss for the nine months ended September 30, 2008 included restructuring and other charges of $1.7 million and a $0.1 million loss from discontinued operations.
Revenues by service lines include:
-- Portamedic revenue declined 4% to $32.4 million in the third
quarter of 2009 compared to $33.7 million in the third quarter of
2008, an improvement from the 6% revenue decline experienced in
the first half of 2009.
-- Heritage Labs revenue totaled $2.9 million for the third quarter
of 2009, relatively flat in comparison to the third quarter of
2008.
-- Hooper Holmes Services (formerly Underwriting Solutions and
Infolink) revenue totaled $5.9 million for the third quarter of
2009, a decline from $9.1 million in the third quarter of 2008,
primarily due to reduced demand for the Company's outsourced
underwriting services.
-- Health & Wellness revenue totaled $2.5 million for the third
quarter of 2009, an increase of 77% from $1.4 million of revenue
in the comparable third quarter of 2008.
Cash provided by continuing operations approximated $2.3 million in the third quarter of 2009, and $5.6 million for the nine months ended September 30, 2009. Capital expenditures totaled $0.5 million in the third quarter 2009 and $2.5 million for the nine months ended September 30, 2009. As of September 30, 2009, cash and cash equivalents totaled $14.2 million, with no borrowings under the Company's credit facility.
Roy H. Bubbs, President and CEO, commented, "I am encouraged by the progress made in the third quarter, which is traditionally a slow quarter for the life insurance industry. We significantly reduced our loss in comparison to the prior year."
Larry Ferguson, Chairman of the Board, commented, "I am pleased to report our Board and Management Team are working well together in addressing our cost structure, short term operating issues, corporate governance, and strategic issues that we believe will continue to drive increased value to our shareholders."
Conference Call
The Company will host a conference call, today, November 6, 2009 at 11:00am EST to discuss third quarter results.
To participate in the conference call, please dial 888-846-5003 or internationally 480-629-9856, conference ID: 4180100 five to ten minutes before the call is scheduled to begin. A live web cast will be hosted on the Company's web site located at www.hooperholmes.com. Listeners may also access a telephone replay of the conference call, available from 2:00 p.m. on November 6, 2009 until midnight on November 13, 2009, by dialing 800-406-7325 or internationally 303-590-3030. The access code for the replay is 4180100.
About Hooper Holmes
Hooper Holmes is a leader in collecting personal health data and transforming it into useful information, enabling customers to take actions that manage or reduce their risks and expenses. As a leading provider of risk assessment services for the insurance industry, Hooper Holmes provides insurers with the widest range of medical exam, data collection, laboratory testing and underwriting services in the industry.
With presence in over 250 markets and a network of thousands of examiners, Hooper Holmes can arrange a medical exam anywhere in the U.S. and deliver the results to its customers. Each year we arrange more medical exams than any other company and process more than three million specimens in our laboratory. We provide a complete service for wellness, disease management, and managed care companies including scheduling support, fulfillment of supplies, blood collection kits, medical screenings, lab testing and data transmission. We underwrite hundreds of thousands of cases annually and complete more than two million telephone interviews.
This press release contains "forward-looking" statements, as such term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, these forward-looking statements are our ability to successfully implement our business strategy; uncertainty as to our working capital requirements over the next 12 to 24 months; our ability to maintain compliance with the financial covenant in our credit facility; our expectations regarding our operating cash flows; and the rate of life insurance application activity. Additional information about these and other factors that could affect the Company's business is set forth in the Company's annual report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on March 16, 2009. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events, except as required by law.
HOOPER HOLMES INC.
2009 CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except share and per share data)
Three Months ended Nine Months ended
September 30, September 30,
2009 2008 2009 2008
Revenues $ 43,790 $ 47,196 $ 137,437 $ 150,792
Cost of
operations 32,272 35,970 100,603 112,342
Gross
profit 11,518 11,226 36,834 38,450
Selling,
general and
administrative
expenses 11,867 13,172 38,360 39,754
Restructuring
and other
charges 261 -- 1,139 1,653
Operating
loss from
continuing
operations (610) (1,946) (2,665) (2,957)
Other income
(expense):
Interest
income 22 64 66 180
Other
expenses,
net (133) (150) (335) (262)
(111) (86) (269) (82)
Loss from
continuing
operations
before
income
taxes (721) (2,032) (2,934) (3,039)
Income tax
(benefit)
expense (2) 15 36 (48)
Loss from
continuing
operations $ (719) $ (2,047) $ (2,970) $ (2,991)
Discontinued
operations:
Income from
discontinued
operations,
net of
income tax -- -- -- 212
Loss on sale
of subsidiary -- (635) (41) (355)
-- (635) (41) (143)
Net loss (719) (2,682) (3,011) (3,134)
Loss per share:
Continuing
operations:
Basic $ (0.01) $ (0.03) $ (0.04) $ (0.04)
Diluted $ (0.01) $ (0.03) $ (0.04) $ (0.04)
Discontinued
operations:
Basic $ -- $ (0.01) $ -- $ --
Diluted $ -- $ (0.01) $ -- $ --
Net loss:
Basic $ (0.01) $ (0.04) $ (0.04) $ (0.05)
Diluted $ (0.01) $ (0.04) $ (0.04) $ (0.05)
Weighted
average
number of
shares:
Basic and
diluted 68,704,587 68,674,587 68,687,994 68,652,397
Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per share data)
Sept. 30, Dec. 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $ 14,225 $ 11,547
Accounts receivable, net of allowance
for doubtful accounts of 22,907 25,366
$1,572 and $3,036 at September 30, 2009
and December 31, 2008,
respectively
Inventories 2,856 2,865
Other current assets 1,623 2,356
Total current assets 41,611 42,134
Property, plant and equipment at cost 44,776 44,736
Less: accumulated depreciation and
amortization 32,677 29,395
Property, plant and equipment, net 12,099 15,341
Intangible assets, net 1,036 1,429
Other assets 304 365
Total assets $ 55,050 $ 59,269
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,610 $ 6,701
Accrued expenses 10,553 11,452
Total current liabilities 16,163 18,153
Other long-term liabilities 646 348
Commitments and Contingencies
Stockholders' equity:
Common stock, par value $.04 per share;
authorized 240,000,000 2,749 2,747
shares, issued 68,713,982 and 68,683,982
shares as of September
30, 2009 and December 31, 2008, respectively
Additional paid-in capital 147,328 146,846
Accumulated deficit (111,765) (108,754)
38,312 40,839
Less: Treasury stock at cost, 9,395
shares as of September 30, (71) (71)
2009 and December 31, 2008
Total stockholders' equity 38,241 40,768
Total liabilities and
stockholders' equity $ 55,050 $ 59,269