RADNOR, Pa., Nov. 13, 2007 (PRIME NEWSWIRE) -- Health Benefits Direct Corporation (OTCBB:HBDT), a leading technology innovator in the direct marketing and distribution of a wide range of health and life insurance and related products for individuals and families, today announced its results of operations for the third quarter ended September 30, 2007.
Third Quarter 2007 Operational Highlights
* Revenues increased 57% and net loss decreased 14% compared to third quarter of 2006; * The company acquired Atiam Technologies L.P., a provider of comprehensive, web-based insurance administration software applications that support individual insurance products, to diversify and expand operations. Atiam's software suite, InsPro(tm) can provide improved connectivity between carriers and the company's professional grade agent tool, Insurint(tm); and * The total number of licensed insurance agents increased from 96 at June 30, 2007 to 111 at September 30, 2007.
Third Quarter 2007 Financial Results
Revenues for the third quarter of 2007 increased 57% to $5,048,139 as compared to $3,222,434 for the third quarter of 2006.
Operating expenses for the third quarter ended September 30, 2007 totaled $8,640,135 as compared to $7,334,578, a 17% increase compared to the third quarter ended September 30, 2006. The primary factor contributing to the increase in operating expenses was higher salaries, commission and related tax expense associated with the increased number of employees in conjunction with the expansion of the company's sales activity and the continued development of Insurint.
Net loss for the third quarter of 2007 was $(3,493,081), or $(0.10) per basic and diluted share, as compared to a net loss of $(4,061,475), or $(0.14) per basic and diluted share for the third quarter of 2006.
Alvin H. Clemens, Chairman and Chief Executive Officer, stated, "Health Benefits Direct delivered another quarter of year-over-year revenue growth and bottom line improvement. The third quarter was an important period of technological development, with the launch of our new and improved web portal featuring our one-of-a-kind 'abandoned call back' technology and improvements to our proprietary agent tool Insurint. We also added a highly complementary option for carriers through our acquisition of Atiam Technologies L.P. Through this acquisition, we can now offer an administrative platform to carriers seeking to enter or broaden their reach within the individual market and better respond to the retail revolution in health insurance. We are continuing to focus on developing our leading edge technology solutions to support growth in productivity and building relationships that will foster value added service for insureds."
Year-to-date Results
Revenues for the nine months ended September 30, 2007 increased 107% to $14,704,547 as compared to $7,082,413 for the nine months ended September 30, 2006. Operating expenses for the nine months ended September 30, 2007 totaled $24,428,812 as compared to $17,721,684 for the nine months ended September 30, 2006. Net loss for the nine months ended September 30, 2007 was $(9,468,718), or $(0.29) per basic and diluted share, as compared to a net loss of $(10,338,320), or $(0.38) per basic and diluted share, for the nine months ended September 30, 2006.
At September 30, 2007, Health Benefits Direct had a cash balance of $8,868,990, total assets of $18,231,346, total shareholders' equity of $6,834,945 and no long-term debt.
Health Benefits Direct reported a net increase in cash of $6,557,209 for the nine months ended September 30, 2007, as compared to a decrease in cash of $(3,360,326) for the nine months ended September 30, 2006. The increase in cash in 2007 was the result of proceeds of $10,354,760 from financing activities, less $3,146,279 of cash used in operations and $1,045,022 of cash used in investing activities.
Executive Appointment
Effective November 12, 2007, Health Benefits Direct appointed Michael R. Griffith to the new position of Vice President of Sales. Mr. Griffith has been employed for 16 years in the financial services industry. Prior to joining Health Benefits Direct, Mike held the position of senior vice president, Consumer Direct Operations at ABN AMRO Mortgage Group in Sunrise, Florida. While at ABN AMRO, Mr. Griffith held key roles of increasing responsibility covering many aspects of the mortgage banking value chain. He holds a Bachelor of Science degree in Finance from Fairleigh Dickinson University in Madison, New Jersey. Mr. Griffith's role at Health Benefits Direct will encompass many areas of sales leadership including the strategic direction and continued growth of the inside sales organization, carrier relations and product presentment.
Conference Call and Webcast
Chairman and Chief Executive Officer Alvin H. Clemens, President and Chief Operating Officer Charles A. Eissa and Chief Financial Officer Anthony R. Verdi will hold a conference call with the financial community today at 5:00 p.m. Eastern to review the Company's financial results and provide an update on business developments.
Interested parties may participate in the conference call by dialing 800-240-4186 (303-262-2075 for international callers). When prompted, ask for the "Health Benefits Direct Third Quarter Conference Call." A telephonic replay of the conference call may be accessed approximately two hours after the call through November 20, 2007, by dialing 800-405-2236 (303-590-3000 for international callers). The replay access code is 11101940.
The conference call will be webcast simultaneously on the Health Benefits Direct website at www.healthbenefitsdirect.com under About Us: Investor Relations: Events and Presentations. The webcast replay will be archived for 12 months.
About Health Benefits Direct Corporation
Health Benefits Direct Corporation is a technologically innovative contact center based insurance agency that operates an interactive online marketplace enabling consumers to shop for, compare, and apply for health and life insurance and related products for individuals and families. Its streamlined Quick-to-Call sales platform, supported by proprietary online technology, dialing applications and tele-application voice signature process, promotes efficiency for consumers purchasing and carriers underwriting insurance products. Through its subsidiary, Insurint(tm) Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates accurate real-time quotes from multiple highly-rated carriers of health and life insurance and related products. Insurint's user-friendly platform enables agents to view and share with proposed insureds detailed comparisons of multiple products, policy brochures and other useful information instantly, resulting in a highly competitive application processing platform for agents and consumers. www.healthbenefitsdirect.com
Safe Harbor Statement
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 effect of the Company's new and improved web portal featuring its "abandoned call back" technology, the continued development of technology solutions and Atiam Technologies acquisition. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Actual events could differ materially from those reflected in these forward-looking statements, such as if Health Benefits Direct's new web portal does not have a positive impact, if the company is unable to continue its development of technology solutions, does not continue to grow its rate of submitted premiums to its carrier partners or build its services for insureds. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Health Benefits Direct undertakes no obligation to update publicly any forward-looking statement.
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
------------ ------------ ------------ -------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 5,048,139 $ 3,222,434 $14,704,547 $ 7,082,413
Operating
Expenses:
Salaries,
commission
and related
taxes 4,413,794 3,917,483 12,329,418 9,455,841
Lead, advertising
and other
marketing 2,177,789 1,511,262 5,973,442 3,082,819
Depreciation and
amortization 518,098 645,802 1,631,182 1,485,115
Rent, utilities,
telephone and
communications 669,847 536,267 1,934,299 1,323,462
Professional
fees 383,617 206,273 1,277,345 994,535
Other
general and
administrative 476,990 517,491 1,283,126 1,379,912
------------ ------------ ------------ ------------
8,640,135 7,334,578 24,428,812 17,721,684
------------ ------------ ------------ ------------
Loss from
operations (3,591,996) (4,112,144) (9,724,265) (10,639,271)
------------ ------------ ------------ ------------
Other income
(expense):
Loss on
disposal of
property
and equipment (2,592) (339) (2,592) (339)
Registration
rights penalty
reversal -- -- -- 60,537
Interest income 107,317 54,638 279,964 258,220
Interest
expense (5,810) (3,630) (21,825) (17,467)
------------ ------------ ------------ ------------
Total other
income
(expense) 98,915 50,669 255,547 300,951
------------ ------------ ------------ ------------
Net loss $(3,493,081) $(4,061,475) $(9,468,718) $(10,338,320)
============ ============ ============ =============
Net loss per
common share:
Net loss per
common share
- basic and
diluted $ (0.10) $ (0.14) $ (0.29) $ (0.38)
============ ============ ============ =============
Weighted average
common shares
outstanding
- basic and
diluted 34,098,971 28,254,578 32,378,934 27,351,853
============ ============ ============ =============
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
September 30, December 31,
2007 2006
------------- -------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 8,868,990 $ 2,311,781
Accounts receivable, less allowance for
doubtful accounts 1,978,874 2,197,523
Deferred compensation advances 775,120 684,998
Prepaid expenses 218,948 107,995
Other current assets 22,409 11,011
------------- -------------
Total current assets 11,864,341 5,313,308
Restricted cash 1,150,000 1,150,000
Property and equipment, net of
accumulated depreciation 1,496,130 1,483,411
Intangibles, net of accumulated
amortization 3,509,953 4,108,833
Other assets 210,922 181,900
------------- -------------
Total assets $ 18,231,346 $ 12,237,452
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,277,087 $ 1,160,254
Accrued expenses 1,344,404 1,427,628
Due to related parties -- 63,672
Unearned commission advances 8,774,910 5,155,117
------------- -------------
Total current liabilities 11,396,401 7,806,671
------------- -------------
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;
34,098,971 and 28,603,083 shares
issued and outstanding 34,099 28,586
Additional paid-in capital 36,491,171 24,479,129
Accumulated deficit (27,734,974) (18,266,258)
Deferred compensation (1,955,351) (1,810,676)
------------- -------------
Total shareholders' equity 6,834,945 4,430,781
------------- -------------
Total liabilities and
shareholders' equity $ 18,231,346 $ 12,237,452
============= =============
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended
September 30,
---------------------------
2007 2006
------------- -------------
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
Net loss $ (9,468,718) $(10,338,320)
Adjustments to reconcile net loss to
net cash used in operating activities:
operating activities:
Depreciation and amortization 1,631,182 1,485,453
Stock-based compensation and consulting 1,144,845 1,620,357
Provision for bad debt (9,026) (9,886)
Changes in assets and liabilities:
Accounts receivable 227,675 (1,282,767)
Deferred compensation advances (90,122) (512,497)
Prepaid expenses (131,428) (374,130)
Other current assets (11,398) (17,611)
Other assets (29,019) (147,192)
Accounts payable 116,833 390,584
Accrued expenses (83,224) 414,392
Due to related parties (63,672) 68,926
Unearned commission advances 3,619,793 2,904,041
------------- -------------
Net cash provided by (used in)
operating activities (3,146,279) (5,798,650)
------------- -------------
Cash Flows From Investing Activities:
Purchase of property and equipment (451,147) (1,481,530)
Purchase of intangible assets and
capitalization of software development (593,875) (1,415,186)
------------- -------------
Net cash used in investing activities (1,045,022) (2,896,716)
------------- -------------
Cash Flows From Financing Activities:
Gross proceeds from sales
of common stock 11,250,000 6,450,000
Gross proceeds from exercise
of warrants 393,750 525,000
Gross proceeds from exercise
of stock options -- 200,000
Restricted cash in connection with
letters of credit -- (1,154,504)
Placement and other fees paid in
connection with offering (895,240) (285,826)
Payment on notes payable -- (399,630)
------------- -------------
Net cash provided by
financing activities 10,748,510 5,335,040
------------- -------------
Net increase in cash 6,557,209 (3,360,326)
Cash - beginning of period 2,311,781 6,433,426
------------- -------------
Cash - end of period $ 8,868,990 $ 3,073,100
============= =============