- Portamedic revenue totaled $24.4 million in the second quarter of 2012, a decline of approximately 9% compared to $26.8 million in the second quarter of 2011, primarily due to an 8% decline in paramedical exams completed during the quarter, along with a 1.9% decrease in revenue per exam.
- Health & Wellness revenue totaled $3.8 million for the second quarter of 2012, a 51% increase from the second quarter of 2011, primarily due to an increase in health screenings completed during the quarter.
- Heritage Labs revenue totaled $2.8 million for the second quarter of 2012, a decrease of approximately 10% compared to the second quarter of 2011, primarily attributable to a decrease in revenue from the Company’s lab kit assembly services.
- Hooper Holmes Services revenue totaled $4.4 million for the second quarter of 2012, a decrease of 20% in comparison to the prior year period, primarily due to reduced demand for the Company’s medical records collection services.
"The new delivery model we announced in June has been designed to improve our service and we believe it will increase revenue in Portamedic, while reducing our cost structure by approximately $4 million in the second half of 2012. On an annual basis, we have reduced Portamedic’s cost structure by approximately $8 million,” said Ransom J. Parker, President and CEO of Hooper Holmes. “At the same time, Health & Wellness experienced continued strong double digit growth in the second quarter, as we completed approximately 70,000 screenings, which is about a 50% increase over second quarter 2011.”Mr. Parker continued, "Looking to the remainder of this year, we expect to end 2012 with year-over-year growth in the fourth quarter, along with profitability, and we believe we are positioned for sustained profitability in 2013.” Conference Call The Company will host a conference call, today, August 10, 2012 at 11:00 a.m. ET to discuss second quarter 2012 results. To participate in the conference call, please dial 877-941-1427 or internationally 480-629-9664 conference ID 4551285 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 August 10, 2012 until midnight on August 17, 2012, by dialing 877-870-5176 or internationally 858-384-5517. The access code for the replay is 4551285. 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 examiners, 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 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 June 30,||Six Months ended June 30,|
|Cost of operations||28,317||28,864||58,090||58,472|
|Selling, general and administrative expenses||11,033||10,556||22,486||21,436|
|Operating loss from continuing operations||(5,524||)||(1,530||)||(8,575||)||(1,497||)|
|Other income (expense):|
|Interest income (expense), net||5||13||10||27|
|Other expense, net||(73||)||(78||)||(145||)||(159||)|
|Loss from continuing operations before income taxes||(5,592||)||(1,595||)||(8,710||)||(1,629||)|
|Income tax expense||3||26||23||49|
|Loss from continuing operations||(5,595||)||(1,621||)||(8,733||)||(1,678||)|
|Gain on sale of subsidiary||65||-||65||-|
|Loss per share:|
|Weighted average number of shares:|
|Basic and diluted||69,679,477||69,599,477||69,674,532||69,594,559|
|Hooper Holmes, Inc.|
|Consolidated Balance Sheets|
|(unaudited; in thousands, except share and per share data)|
|June 30, 2012||December 31, 2011|
|Cash and cash equivalents||$||11,443||$||16,917|
|Accounts receivable, net of allowance for doubtful accounts|
|of $513 and $525 at June 30, 2012 and December 31,|
|Other current assets||1,223||2,140|
|Total current assets||32,506||39,670|
|Property, plant and equipment at cost||50,105||54,333|
|Less: accumulated depreciation and amortization||36,990||41,281|
|Property, plant and equipment, net||13,115||13,052|
|Intangible assets, net||44||195|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Total current liabilities||12,296||11,347|
|Other long term liabilities||1,292||1,185|
|Commitments and Contingencies|
|Common stock, par value $.04 per share; authorized 240,000,000 shares;|
|Issued: 69,708,982 shares and 69,678,982 shares at June 30, 2012 and|
|December 31, 2011, respectively. Outstanding: 69,699,587 shares and|
|69,669,587 shares at June 30, 2012 and December 31, 2011, respectively.||2,788||2,787|
|Additional paid-in capital||149,169||148,839|
|Less: Treasury stock at cost, 9,395 shares as of|
|June 30, 2012 and December 31, 2011||(71||)||(71||)|
|Total stockholders' equity||32,412||40,749|
|Total liabilities and stockholders' equity||$||46,000||$||53,281|