Hooper Holmes (NYSE MKT:HH) today announced financial results
for the third quarter ended September 30, 2014.
Consolidated revenues totaled $7.9 million for the third quarter
of 2014, representing an increase of $2.7 million, or 51%, from the
third quarter of 2013. The Company recorded a net loss of $1.3
million, or $(0.02) per share, for the third quarter of 2014, as
compared to a net loss of $1.7 million, or $(0.02) per share, for
the third quarter of 2013. The net loss for the third quarter of
2014 includes a net loss of $1.4 million from discontinued
operations, and $0.2 million of transition costs associated with
consolidating operations in Olathe, KS.
The Company’s revenue increase is primarily due to an increased
number of screenings. Health & Wellness operations performed
34% more health screenings in the third quarter of 2014 compared to
the same period of 2013.
Sales, General and Administrative (SG&A) expenses for the
three-month period ended September 30, 2014 decreased $0.9 million
to $3.5 million compared to the prior year period. The decrease is
primarily due to reduced corporate headcount.
The Company received $5.1 million in net proceeds in the third
quarter from sales of its New Jersey property and Heritage Labs and
Hooper Holmes Services business units. Cash outflows during the
third quarter included $1.1 million associated with discontinued
operations and transition costs, $0.4 million invested in capital
expenditures, and expenses associated with the fulfillment of a
large number of screening events in advance of cash receipts from
the Company’s customers. As of September 30, 2014, cash and cash
equivalents totaled $4.1 million, with no borrowings outstanding
under the Company's credit facility, and working capital of $4.5
million.
Commenting on the 2014 third quarter, Henry E. Dubois, President
and CEO of Hooper Holmes, stated: “Our third quarter year-over-year
revenue growth positions us well and our ongoing initiatives are
streamlining the business. As a result we have reduced SG&A and
are enhancing service quality.”
Mr. Dubois continued, “Our priorities include continuing to
improve operating efficiency and strengthening gross margins. We
continue our drive towards total cash flow positive results for the
full year 2014 and believe we are well positioned for 2015.”
Conference Call
The Company will host a conference call today, November 13,
2014, at 7:30 am CT / 8:30 a.m. ET to discuss third quarter 2014
results. A slide presentation accompanying management’s
presentation is available on the Company’s website.
To participate in the conference call, please dial 888-430-8705,
or internationally 719-325-2323, conference ID: 6083263 five to ten
minutes before the call is scheduled to begin. A live webcast will
be hosted on the Company’s website located at www.hooperholmes.com.
A replay of the conference call will be available from 10:30 a.m.
CT (11:30 a.m. ET) on November 13, 2014 until 11:00 p.m. CT
(midnight ET) on November 20, 2014, by dialing 877-870-5176, or
internationally 858-384-5517. The access code for the replay is
6083263.
About Hooper Holmes
Hooper Holmes, Inc. mobilizes a national network of health
professionals to provide on-site health screenings, laboratory
testing, risk assessment and sample collection services to wellness
and disease management companies, insurance companies, employers,
government organizations and academic institutions.
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 realize the expected benefits from our strategic
alliance with Clinical Reference Laboratory; our ability to
successfully implement our business strategy; our ability to retain
and grow our customer base; our ability to recognize operational
efficiencies and reduce costs; uncertainty as to our working
capital requirements over the next 12 to 24 months; our ability to
maintain compliance with the financial covenant in our credit
facility; and the rate of growth in the Health and Wellness market.
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, 2013, filed
with the Securities and Exchange Commission on March 31, 2014. 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 September 30, Nine months ended
September 30, 2014 2013
2014 2013 Revenues $ 7,875 $ 5,227 $ 21,852 $ 14,954
Cost of operations 6,021 4,272
16,193 11,141 Gross profit 1,854
955 5,659 3,813 Selling,
general and administrative expenses 3,541 4,386 11,915 13,392 Gain
on sale of real estate (1,830 ) - (1,830 ) - Restructuring charges
- 362 92 667
Operating income (loss) from continuing operations
143 (3,793 ) (4,518 ) (10,246 ) Other
expense: Interest expense (1 ) (54 ) (3 ) (80 ) Interest income 1 1
2 4 Other (expense) income, net (61 ) (82 )
(155 ) (176 ) (61 ) (135 ) (156 )
(252 ) Income (loss) from continuing operations before taxes
82 (3,928 ) (4,674 ) (10,498 ) Income tax expense 5
5 15 14 Income (loss)
from continuing operations 77 (3,933 )
(4,689 ) (10,512 ) Discontinued operations: Gain on
sale of subsidiaries, net of adjustments 1,354 3,682 1,204 3,757
Loss from discontinued operations, net of tax (2,739 )
(1,463 ) (3,321 ) (2,521 ) (Loss) income from
discontinued operations (1,385 ) 2,219
(2,117 ) 1,236 Net loss $ (1,308 ) $ (1,714 ) $
(6,806 ) $ (9,276 ) Income (loss) per share
Continuing operations: Basic $ 0.00 $ (0.06 ) $ (0.07 ) $ (0.15 )
Diluted 0.00 (0.06 ) (0.07 ) (0.15 ) Discontinued operations: Basic
(0.02 ) 0.03 (0.03 ) 0.02 Diluted (0.02 ) 0.03 (0.03 ) 0.02 Net
loss: Basic (0.02 ) (0.02 ) (0.10 ) (0.13 ) Diluted (0.02 )
(0.02 ) (0.10 ) (0.13 ) Weighted
average number of shares: Basic and diluted 70,866,603 69,952,153
70,623,068 69,877,878
Hooper Holmes,
Inc. Consolidated Balance Sheets (unaudited; in
thousands)
September 30, 2014 December 31,
2013 ASSETS Current assets: Cash and cash
equivalents $ 4,082 $ 3,970 Accounts receivable, net of allowance
for doubtful accounts 8,245 8,398 Inventories 1,106 596 Other
current assets 957 1,597 Assets held for sale 246
2,302 Total current assets 14,636 16,863
Property, plant and equipment, net 2,829 2,953 Other assets
934 1,830 Total assets 18,399
21,646
LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable 3,164 3,440
Accrued expenses 6,928 4,036 Total
current liabilities 10,092 7,476 Other long term liabilities
1,328 870 Commitments and contingencies Stockholders'
equity: Common stock 2,835 2,815 Additional paid-in capital 150,700
150,235 Accumulated deficit (146,485 ) (139,679 )
7,050 13,371 Less: Treasury stock at cost (71 ) (71 )
Total stockholders' equity 6,979 13,300
Total liabilities and stockholders' equity $ 18,399 $ 21,646
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400