Hooper Holmes Announces Fourth Quarter And Year-End 2011 Results

Hooper Holmes (NYSE Amex:HH) today announced financial results for the quarter and year ended December 31, 2011.

Consolidated revenues totaled $40.8 million for the fourth quarter of 2011, representing a 6% revenue decline from $43.4 million in the fourth quarter of 2010. The Company recorded a net loss for the fourth quarter of $0.6 million, or ($0.01) per share, compared to net income of $2.2 million, or $0.03 per diluted share, in 2010.

For the year ended December 31, 2011, consolidated revenues were $157.5 million compared to $166.4 million in the comparable period of 2010. The Company’s net loss for the year ended December 31, 2011 totaled $3.5 million, or ($0.05) per share, compared to net income of $1.5 million, or $0.02 per diluted share, in 2010. The results for the year ended December 31, 2011 include a $0.5 million sales tax refund received from a supplier. The results for the year ended December 31, 2010 included a $1.6 million reduction in a previously established reserve for interest and penalties pertaining to unclaimed property, along with restructuring charges of $1.0 million.

Fourth quarter 2011 revenues by service line:
  • Portamedic revenue totaled $26.5 million in the fourth quarter of 2011, a decline of approximately 9% compared to $29.2 million in the fourth quarter of 2010, primarily due to a 4% decline in paramedical exams completed during the quarter, along with a 6% decrease in revenue per exam.
  • Heritage Labs revenue totaled $2.8 million for the fourth quarter of 2011, a decrease of approximately 11% compared to the fourth quarter of 2010, primarily attributable to reduced demand for our lab testing services.
  • Hooper Holmes Services revenue totaled $4.8 million for the fourth quarter of 2011, down 8% in comparison to the prior year period, primarily attributable to reduced revenue from our medical records collection services.
  • Health & Wellness revenue totaled $6.8 million for the fourth quarter of 2011, a 16% increase from the fourth quarter of 2010, primarily due to an increase in health screenings completed during the quarter.

Net cash provided by operations approximated $0.6 million in the fourth quarter of 2011 and capital expenditures totaled $1.5 million. As of December 31, 2011, cash and cash equivalents totaled $16.9 million, with no outstanding borrowings under the Company’s credit facility.

“Our overall financial performance in 2011 was in line with the targets that we have discussed throughout the year. We accomplished our key operating objectives in 2011 and are optimistic that we have positioned the Company for improved financial results in 2012 and beyond,” said Ransom J. Parker, President and CEO of Hooper Holmes. “During 2011 we invested $4.8 million in capital expenditures. These investments in our technology infrastructure will have a positive impact and provide a solid foundation to grow profitably.”

Conference Call

The Company will host a conference call, today, March 9, 2012 at 11:00 a.m. ET to discuss fourth quarter 2011 results.

To participate in the conference call, please dial 877-941-2068 or internationally 480-629-9712 conference ID 4521227 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 March 9, 2012 until midnight on March 16, 2012, by dialing 877-870-5176 or internationally 858-384-5517. The access code for the replay is 4521227.

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. With a presence in hundreds of markets and a network of thousands of health professionals, Hooper Holmes can arrange a medical exam anywhere in the U.S. and deliver the results to its customers.

Hooper Holmes has four service lines. Portamedic provides a wide range of medical exam services nationwide. Heritage Labs tests millions of samples annually and helps health companies and life insurers better understand their applicants and participants and take advantage of the predictive powers of today’s tests. Health & Wellness provides 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. Hooper Holmes Services reduces the insurance sales cycle through integrated data collection, tele-interviewing and underwriting services.

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; our working capital requirements over the next 12 to 24 months; our ability to comply with the covenants in our credit facility; the level of our liquidity; operating cash flows; customer and creditor concerns about our financial health; 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, 2010, filed with the Securities and Exchange Commission on March 14, 2011. 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except share and per share data)
 
 
 
Three Months ended December 31, Twelve Months Ended December 31,
2011 2010 2011 2010
 
Revenues $ 40,827 $ 43,391 $ 157,489 $ 166,370
Cost of operations   31,236     32,136     118,394     122,889
  Gross profit   9,591     11,255     39,095     43,481
Selling, general and administrative expenses 10,033 8,929 42,470 42,221
Restructuring charges   0     117     112     1,026
  Operating (loss) income from continuing operations   (442 )   2,209     (3,487 )   234
Other income (expense):
Interest income (expense), net 6 14 44 110
  Other (expense) income, net   (100 )   (80 )   (20 )   1,302
      (94 )   (66 )   24     1,412
(Loss) income from continuing operations before income taxes (536 ) 2,143 (3,463 ) 1,646
 
Income tax expense 42 23 123 225
           
  (Loss) income from continuing operations $ (578 ) $ 2,120   $ (3,586 ) $ 1,421
 
Discontinued operations:
Gain on sale of subsidiary 0 55 62 55
             
Net (loss) income (578 ) 2,175     (3,524 ) 1,476
 
Basic and diluted (loss) earnings per share:
 
Continuing operations
Basic $ (0.01 ) $ 0.03 $ (0.05 ) $ 0.02
Diluted $ (0.01 ) $ 0.03 $ (0.05 ) $ 0.02
 
Discontinued operations
Basic $ - $ - $ - $ -
Diluted $ - $ - $ - $ -
 
Net (loss) income
Basic $ (0.01 ) $ 0.03 $ (0.05 ) $ 0.02
  Diluted $ (0.01 ) $ 0.03   $ (0.05 ) $ 0.02
 
Weighted average number of shares:
Basic 69,669,587 69,589,587 69,628,135 69,437,710
Diluted 69,669,587 69,811,894 69,628,135 69,896,969
 
   
Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per share data)
   
December 31, 2011 December 31, 2010
ASSETS
Current assets:
Cash and cash equivalents $ 16,917 $ 21,391
Accounts receivable, net of allowance for doubtful accounts
of $525 and $910 at December 31, 2011 and 2010, respectively 18,387 19,484
Inventories 2,226 2,153
Other current assets   2,140     1,899  
Total current assets 39,670 44,927
 
Property, plant and equipment at cost 54,333 49,895
Less: accumulated depreciation and amortization   41,281     38,248  
Property, plant and equipment, net 13,052 11,647
 
Intangible assets, net 195 537
Other assets   364     368  
Total assets $ 53,281   $ 57,479  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,174 $ 6,665
Accrued expenses   6,173     5,941  
Total current liabilities 11,347 12,606
 
Other long term liabilities 1,185 1,247
 
Commitments and Contingencies
 
Stockholders' equity:
Common stock, par value $.04 per share; authorized 240,000,000 shares;
Issued: 69,678,982 shares and 69,598,982 shares at December 31, 2011 and
2010, respectively. Outstanding: 69,669,587 shares and 69,589,587
shares at December 31, 2011 and 2010, respectively. 2,787 2,784
 
Additional paid-in capital 148,839 148,195
Accumulated deficit   (110,806 )   (107,282 )
40,820 43,697
Less: Treasury stock at cost, 9,395 shares as of
December 31, 2011 and 2010   (71 )   (71 )
Total stockholders' equity   40,749     43,626  
Total liabilities and stockholders' equity $ 53,281   $ 57,479  

Copyright Business Wire 2010

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