Hooper Holmes (NYSE Amex:HH) today announced financial results for the quarter ended March 31, 2012. Consolidated revenues totaled $38.8 million for the first quarter of 2012, representing a 4% revenue decline from $40.6 million in the first quarter of 2011. The Company recorded a net loss of $3.1 million for the first quarter of 2012, or $(0.05) per share, compared to a net loss of $0.1 million, or $0.00 per share, in the first quarter of 2011. The net loss for the first quarter of 2012 includes $0.6 million of restructuring charges. The net loss for the first quarter of 2011 included $0.1 million of restructuring charges. "The loss for the quarter reflects the incremental costs associated with the investments we made in 2011," said Ransom J. Parker, President and CEO of Hooper Holmes. "It reflects the targeted hiring of IT professionals as part of our systems investments. It reflects hiring new salespeople to sign up new agents and producers, which should lead to unit growth in the back half of this year. It reflects new business development and sales talent in Health and Wellness, to maintain and expand our historically strong growth. A significant portion of the loss is also attributable to the severance costs of adjusting our workforce to reflect the efficiencies we’re now recognizing from our new systems and other investments." Mr. Parker continued, "These results are consistent with our plans to deliver profitable growth. We continue to take actions that are expected to deliver revenue growth in the third and fourth quarters of 2012. Our operating targets are to end 2012 with consolidated revenue growth, led by growth in Portamedic and consistently strong growth in Health & Wellness; positive cash flow from operations; a secure cash position with no borrowings; and profitability, excluding restructuring charges." "The Board wishes to emphasize its commitment and support of the significant investments that had to be made in order to establish the proper foundation to support our drive for future revenue growth and profitability," said Ronald V. Aprahamian, Chairman of the Board of Hooper Holmes. "While our overall turnaround has taken longer, and cost more than preferred, we believe our management team has taken the right steps that will leave us well positioned going into 2013 and beyond."
First quarter 2012 revenues by service line:
- Portamedic revenue declined 7% to $26.6 million in the first quarter of 2012 compared to $28.6 million in the first quarter of 2011, primarily due to a 5% decline in paramedical exams completed during the quarter, along with a 2% decrease in revenue per exam.
- Heritage Labs revenue totaled $3.1 million for the first quarter of 2012, an increase of 1% compared to the first quarter of 2011, primarily attributable to an increase in lab kit assembly revenue.
- Hooper Holmes Services revenue totaled $5.0 million for the first quarter of 2012, a decrease of 9% in comparison to the prior year period, primarily due to reduced demand for our medical records collection services.
- Health & Wellness revenue totaled $4.1 million for the first quarter of 2012, a 19% increase from the first quarter of 2011, primarily due to a 15% increase in health screenings completed during the quarter.
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 life insurers improve underwriting performance by better applying the predictive powers of today’s tests. Hooper Holmes Health & Wellness performs risk assessment and risk management services including biometric screenings, health risk assessments and onsite wellness coaching for wellness companies, disease management organizations, clinical research organizations and health plans. 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; 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, 2011, filed with the Securities and Exchange Commission on March 9, 2012. 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 March 31,|
|Cost of operations||29,773||29,608|
|Selling, general and administrative expenses||11,453||10,880|
|Operating (loss) income||(3,051||)||33|
|Other income (expense):|
|Interest income (expense), net||5||14|
|Other expense, net||(72||)||(81||)|
|Loss before income taxes||(3,118||)||(34||)|
|Income tax expense||20||23|
|Basic and diluted loss per share:|
|Weighted average number of shares:|
|Basic and diluted||69,669,587||69,589,587|
|Hooper Holmes, Inc.|
|Consolidated Balance Sheets|
|(unaudited; in thousands, except share and per share data)|
|March 31, 2012||December 31, 2011|
|Cash and cash equivalents||$||13,452||$||16,917|
|Accounts receivable, net of allowance for doubtful accounts of $511 and $525 at March 31, 2012 and December 31, 2011, respectively||20,532||18,387|
|Other current assets||1,585||2,140|
|Total current assets||38,075||39,670|
|Property, plant and equipment at cost||54,888||54,333|
|Less: accumulated depreciation and amortization||41,610||41,281|
|Property, plant and equipment, net||13,278||13,052|
|Intangible assets, net||117||195|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Total current liabilities||12,944||11,347|
|Other long term liabilities||1,133||1,185|
|Commitments and Contingencies|
|Common stock, par value $.04 per share; authorized 240,000,000 shares;|
|Issued: 69,678,982 shares at March 31, 2012 and December 31, 2011.|
|Outstanding: 69,669,587 shares at March 31, 2012 and December 31, 2011.||2,787||2,787|
|Additional paid-in capital||148,987||148,839|
|Less: Treasury stock at cost, 9,395 shares as of March 31, 2012 and December 31, 2011||(71||)||(71||)|
|Total stockholders' equity||37,759||40,749|
|Total liabilities and stockholders' equity||$||51,836||$||53,281|