Attached files
| file | filename |
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| 8-K - RESULTS OF OPERATIONS AND FINANCIAL CONDITION - HOOPER HOLMES INC | form8k.htm |
| EX-99.2 - TRANSCRIPT OF EARNINGS CONFERENCE CALL - HOOPER HOLMES INC | exhibit99-2.htm |
News
Release
For
further information:
Hooper
Holmes
Roy H.
Bubbs
President
and Chief Executive Officer
(908)
766-5000
Investors:
Andrew Berger
S.M.
Berger & Company
(216)
464-6400
Hooper
Holmes Announces Fourth Quarter and Year-End 2009 Results
BASKING
RIDGE, N.J., March 12, 2010 -- Hooper Holmes (NYSE Amex:HH) today announced
financial results for the fourth quarter and year ended December 31,
2009.
Consolidated
revenues totaled $45.0 million for the fourth quarter of 2009, representing a 5%
revenue decline from the $47.4 million in the fourth quarter of
2008. The Company recorded net income of $3.0 million for the fourth
quarter of 2009, or $0.04 per share, compared to net income of $1.2 million, or
$0.02 per share in 2008. The fourth quarter 2009 results include a
$1.5 million federal tax benefit pertaining to the utilization of fully reserved
net operating losses, pursuant to the Business Assistance Act signed into law in
the fourth quarter of 2009. Net income for the fourth quarter of 2008
included a reversal of approximately $1.6 million in SG&A incentive
accruals, along with a loss of $0.2 million from discontinued
operations.
For the
year-ended December 31, 2009, consolidated revenues were $182.4 million compared
to $198.2 million in 2008. The Company’s net income for the
year-ended December 31, 2009 was approximately breakeven, or $0.00 per share,
compared to a net loss of $1.9 million, or ($0.03) per share in
2008. The results for the year-ended December 31, 2009 include a
non-cash charge of $2.7 million attributable to increased depreciation expense
resulting from a reduction in the estimated useful life of the Company’s current
IT system, along with restructuring and other charges totaling $1.2
million. The 2009 results also include a $1.5 million federal tax
benefit pertaining to the utilization of fully reserved net operating
losses. The net loss in 2008 included restructuring and other charges
of $1.6 million and a $0.3 million loss from discontinued
operations.
Fourth
quarter 2009 revenues by service line:
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Portamedic
revenue declined 3% to $32.3 million in the fourth quarter of 2009
compared to $33.2 million in the fourth quarter of 2008, primarily due to
a 4% decline in paramedical exams completed during the
quarter.
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Heritage
Labs revenue totaled $3.1 million for the fourth quarter of 2009, an
increase of 5% compared to the fourth quarter of
2008.
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Hooper
Holmes Services (formerly Underwriting Solutions and Infolink) revenue
totaled $5.5 million for the fourth quarter of 2009, a decline from $8.4
million in the fourth quarter of 2008, primarily due to reduced demand for
the Company’s outsourced underwriting
services.
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Health
& Wellness revenue totaled $4.1 million for the fourth quarter of
2009, an increase of 39% from $3.0 million in the comparable fourth
quarter of 2008.
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Cash
provided by continuing operations approximated $3.1 million in the fourth
quarter of 2009, and $8.7 million for the year-ended December 31,
2009. Capital expenditures totaled $0.7 million in the fourth quarter
of 2009 and $3.1 million for the year-ended December 31, 2009. As of
December 31, 2009, cash and cash equivalents totaled $16.5 million, with no
borrowings under the Company’s credit facility.
Roy H.
Bubbs, President and CEO commented, “We are encouraged by the improvements
realized in the fourth quarter, and the entire year, including a significant
reduction in costs, improved cash flow and positive indications on several new
revenue initiatives. However, economic conditions in the insurance
industry remain challenging and are expected to negatively impact our revenues
and operating results in the first quarter, and possibly throughout
2010.”
Conference
Call
The
Company will host a conference call, today, March 12, 2010 at 11:00am ET to
discuss fourth quarter 2009 results.
To
participate in the conference call, please dial 877-941-1427 or internationally
480-629-9664 conference ID 4259042 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 12, 2010 until midnight
on March 19, 2010, by dialing 800-406-7325 or internationally
303-590-3030. The access code for the replay is 4259042.
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. As a 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 several 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 thousands of cases annually and complete
more than a million telephone interviews.
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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 maintain compliance with the financial covenant in our
credit facility; the level of our liquidity in 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, 2008, filed with the Securities and
Exchange Commission on March 16, 2009. 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.
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