BASKING RIDGE, N.J., Nov 07, 2008 -- Hooper Holmes (AMEX:HH) today announced financial results for the three and nine months ended September 30, 2008.
For the three months ended September 30, 2008, total revenues decreased 4.5% to $47.2 million compared to $49.4 million in the third quarter of 2007. The Company recorded a net loss of $2.7 million for the third quarter of 2008, or $(0.04) per share compared to a net loss of $10.6 million, or $(0.16) per share in 2007. The third quarter 2008 results include a loss from continuing operations of $2.0 million, or $(0.03) per share, compared to a loss from continuing operations of $4.5 million, or $(0.07) per share in the prior year. The third quarter 2007 loss from continuing operations included restructuring and other charges of $1.6 million. The net loss for the third quarter of 2008 includes a loss of $0.6 million from discontinued operations. The net loss for the third quarter of 2007 included a loss from discontinued operations of $6.1 million.
For the nine months ended September 30, 2008, total revenues were $150.8 million compared to $157.3 million in the comparable period of 2007, a decrease of 4.1%. The Company's net loss for the nine months ended September 30, 2008 totaled $3.1 million, or $(0.05) per share, compared to a net loss of $14.2 million, or $(0.21) per share in 2007. The results for the nine months ended September 30, 2008 include a loss from continuing operations of $3.0 million, or $(0.04) per share compared to a loss from continuing operations of $8.2 million, or $(0.12) per share in the prior year. The loss from continuing operations in 2008 includes restructuring and other charges of $1.7 million. The 2007 loss from continuing operations included restructuring and other charges of $2.9 million. The net loss for the nine months ended September 30, 2008 includes a loss of $0.1 million from discontinued operations. The net loss for 2007 included a loss from discontinued operations totaling $6.0 million.
Third Quarter 2008 Results by Business Unit
Our revenues for each business include:
-- Portamedic revenues decreased approximately 4% to $33.1 million
compared to $34.4 million in the third quarter of 2007. This
decrease is the result of a reduction in paramedical exams of
approximately 8.4%, partially offset by higher average revenue per
exam of 4%.
-- Infolink revenues were $6.0 million, a decrease of 9% compared to
$6.6 million in the third quarter of 2007, primarily due to a
decrease in the number of attending physician statements (APS)
orders received from customers during the quarter.
-- Heritage Labs revenues totaled $3.6 million in the third quarter of
2008, down 16% from the prior year primarily due to reduced
revenue from one major client partially offset by increased
revenues from existing clients.
-- Health & Wellness revenues were up in comparison to the prior year,
increasing approximately 31% to $1.4 million in the third quarter
of 2008. During the third quarter, our Health & Wellness business
completed approximately 32,000 health screenings and we currently
provide our services to 24 health management companies.
-- Underwriting Solutions revenues of $3.1 million were relatively
flat in comparison to the prior year.
Roy H. Bubbs, President and Chief Executive Officer of Hooper Holmes, commented, "We continued to make progress in the third quarter. Improved margins and reduced expenses have helped to reduce our operating loss. While the weakening of the U.S. economy may negatively affect the life insurance market, we expect to see further improvements from the strategic initiatives we have implemented within our business units to improve profitable revenues."
Conference Call
The Company will host a conference call, today, November 7, 2008 at 11:00am EST to discuss third quarter results.
To participate in the conference call, please dial 888-790-3758 or 210-839-8398, pass code: Hooper Holmes. 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 through November 21, 2008, by dialing 800-294-4342 or 203-369-3230.
About Hooper Holmes
Hooper Holmes is the 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 the 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 3.8 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 300,000 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 covenants 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, 2007, filed with the Securities and Exchange Commission on March 17, 2008. 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.
2008 CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except share and per share data)
Three Months ended Nine Months ended
September 30, September 30,
---------------------- ---------------------
2008 2007 2008 2007
---- ---- ---- ----
Revenues $47,196 $49,434 $150,792 $157,260
Cost of operations 35,858 38,552 112,076 121,122
-------------------- ------ ------ ------ ------
Gross profit 11,338 10,882 38,716 36,138
-------------------- ------ ------ ------ ------
Selling, general and
administrative
expenses 13,273 13,828 39,937 41,156
Restructuring and
other charges - 1,626 1,653 2,871
-------------------- ------ ------ ------ ------
Operating loss
from continuing
operations (1,935) (4,572) (2,874) (7,889)
-------------------- ------ ------ ------ ------
Other income (expense):
Interest expense (3) (95) (3) (171)
Interest income 65 14 180 34
Other expense, net (159) (48) (342) (245)
-------------------- ------ ------ ------ ------
(97) (129) (165) (382)
-------------------- ------ ------ ------ ------
Loss from
continuing
operations before
income taxes (2,032) (4,701) (3,039) (8,271)
Income tax provision
(benefit) 15 (157) (25) (101)
-------------------- ------ ------ ------ ------
Loss from
continuing
operations (2,047) (4,544) (3,014) (8,170)
-------------------- ------ ------ ------ ------
Discontinued operations:
(Loss) income
from discontinued
operations, net
of income taxes - (6,097) 235 (6,013)
Loss on sale of
subsidiaries (635) - (355) -
-------------------- ------ ------ ------ ------
(635) (6,097) (120) (6,013)
------ ------ ------ ------
-------------------- ------ ------ ------ ------
Net loss $(2,682) $(10,641) $(3,134) $(14,183)
==================== ======= ======== ======= ========
Loss per share:
Continuing
operations:
Basic $(0.03) $(0.07) $(0.04) $(0.12)
Diluted $(0.03) $(0.07) $(0.04) $(0.12)
Discontinued
operations:
Basic $(0.01) $(0.09) $(0.00) $(0.09)
Diluted $(0.01) $(0.09) $(0.00) $(0.09)
Net loss:
Basic $(0.04) $(0.16) $(0.05) $(0.21)
Diluted $(0.04) $(0.16) $(0.05) $(0.21)
=================== ====== ====== ====== ======
Weighted average
number of shares:
Basic 68,674,587 68,634,587 68,652,397 68,422,816
Diluted 68,674,587 68,634,587 68,652,397 68,422,816
Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands except share and per share data)
September 30, 2008 December 31, 2007
------------------ -----------------
ASSETS
Current assets:
Cash and cash equivalents $9,932 $10,580
Accounts receivable, net 28,664 26,386
Inventories 2,963 2,548
Income tax receivable 405 518
Other current assets 1,976 2,083
Assets of subsidiary
held for sale - 6,326
------ ------
Total current assets 43,940 48,441
Property, plant and
equipment, net 15,502 14,083
Intangible assets, net 1,583 2,361
Other assets 1,030 1,053
------ ------
Total assets $62,055 $65,938
======= =======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,165 $6,976
Accrued expenses 14,602 14,879
Liabilities of
subsidiary held for
sale - 1,736
------ ------
Total current
liabilities 22,767 23,591
Other long-term
liabilities 212 438
Commitments and
Contingencies
Stockholders' equity:
Common stock, par value
$.04 per share;
authorized 240,000,000
shares, issued 68,683,982
and 68,643,982 shares as
of September 30, 2008
and December 31, 2007,
respectively 2,747 2,746
Additional paid-in
capital 146,403 146,103
Accumulated deficit (110,003) (106,869)
Treasury stock at cost,
9,395 shares as of
September 30, 2008
and December 31, 2007 (71) (71)
------ ------
Total stockholders'
equity 39,076 41,909
------ ------
Total liabilities
and stockholders'
equity $62,055 $65,938
======= =======