Hooper Holmes (NYSE MKT:HH) today announced financial results
for the quarter ended March 31, 2015.
Consolidated revenues totaled $5.7 million for the first quarter
of 2015, representing a decrease from $7.3 million in the first
quarter of 2014. The Company recorded a net loss of $2.1 million,
or $0.03 per share, for the first quarter of 2015, an improvement
from the net loss of $2.7 million, or $0.04 per share, for the
first quarter of 2014.
Selling, general and administrative expense for the three month
period ended March 31, 2015 decreased $1.8 million to $2.7 million,
representing a decrease of approximately 38% compared to the prior
year period, as a result of efficiencies achieved through the
relocation of the corporate headquarters to Olathe, Kansas.
As of March 31, 2015, cash and cash equivalents totaled $1.4
million, with no borrowings outstanding under the Company's credit
facility.
On April 17, 2015 the Company announced the acquisition of the
assets representing the health and wellness business of Accountable
Health Solutions, Inc. (AHS). AHS’ unaudited financial statements
reflect approximately $15 million in net sales during calendar year
2014. The purchase price was $7 million, comprising $4 million cash
and approximately $3 million in unregistered common stock, subject
to a working capital adjustment. The acquisition is expected to be
accretive to Hooper Holmes’ earnings in 2015. Financing for the
transaction was provided through a $5 million, three-year, secured
term loan.
Henry Dubois, President and CEO of Hooper Holmes commented, “As
we discussed on March 31st, we maintained roughly the same unit
volume in the first quarter 2015 compared to the 2014 first
quarter, while revenue was down due to the end of a long-term
clinical study, and one large customer’s decision not to screen
this year.”
Mr. Dubois continued, “Beginning with the second quarter 2015,
revenue and margin from AHS will be reflected in our consolidated
results, offsetting some of the pressure we experienced
sequentially. We believe AHS will accelerate Hooper’s growth in
health and wellness services, positioning the company to improve
its financial trends. We expect AHS will immediately improve and
diversify our revenue base, add scale, increase screening volumes,
and help us more efficiently utilize our health professional
network.”
Conference Call
The Company will host a conference call today, Thursday, May 14,
2015, at 7:30 a.m. CT (8:30 a.m. ET) to discuss first quarter 2015
financial results. A slide presentation will accompany the
conference call and is available on the Company’s website located
at www.hooperholmes.com.
To participate in the conference call, please dial 888-437-9445,
or internationally 719-457-2727, conference ID: 3572762 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 May 14, 2015 until 11:00 p.m. CT (midnight
ET) on May 21, 2015, by dialing 877-870-5176, or internationally
858-384-5517. The access code for the replay is 3572762.
About Hooper Holmes
Hooper Holmes 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, employers and brokers, government
organizations and academic institutions nationwide. Under the
Accountable Health Solutions brand, the Company combines smart
technology, healthcare and behavior change expertise to offer
comprehensive health and wellness programs that improve health,
increase efficiencies and reduce healthcare delivery costs.
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 this
acquisition and our strategic alliance with Clinical Reference
Laboratory; our ability to successfully implement our business
strategy and integrate Accountable Health Solutions’ business with
ours; 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 financing for this
acquisition; 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, 2014,
filed with the Securities and Exchange Commission on March 31,
2015. 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,
2015
2014
Revenues $ 5,681 $ 7,299 Cost of operations 4,949
5,643 Gross profit 732
1,656 Selling, general and administrative expenses
2,747 4,457 Operating loss from continuing
operations (2,015 ) (2,801 ) Other expense: Interest
expense - (1 ) Interest income - - Other (expense) income, net
(83 ) (44 ) (83 ) (45 ) Loss from
continuing operations before taxes (2,098 ) (2,846 ) Income tax
expense 5 5 Loss from continuing
operations (2,103 ) (2,851 ) Discontinued
operations: Loss on sale of subsidiaries, net of adjustments - (150
) (Loss) income from discontinued operations, net of tax (4
) 316 (Loss) income from discontinued
operations (4 ) 166 Net loss $ (2,107 ) $
(2,685 ) Earnings (loss) per share Continuing
operations: Basic $ (0.03 ) $ (0.04 ) Diluted (0.03 ) (0.04 )
Discontinued operations: Basic (0.00 ) 0.00 Diluted (0.00 ) 0.00
Net loss: Basic (0.03 ) (0.04 ) Diluted (0.03 )
(0.04 ) Weighted average number of shares: Basic and
diluted 70,866,603 70,410,649
Hooper
Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands)
March 31,
2015
December 31,
2014
ASSETS
Current assets: Cash and cash equivalents $ 1,387 $ 5,201 Accounts
receivable, net of allowance for doubtful accounts 4,869 3,178
Inventories 696 897 Other current assets 274
202 Total current assets 7,226 9,478 Property, plant
and equipment, net 2,974 3,054 Other assets 491
607 Total assets 10,691 13,139
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities: Accounts payable 1,962 2,508 Accrued expenses
4,305 4,083 Total current liabilities
6,267 6,591 Other long term liabilities 1,084 1,191
Commitments and contingencies Stockholders' equity: Common
stock 2,835 2,835 Additional paid-in capital 150,837 150,747
Accumulated deficit (150,261 ) (148,154 ) 3,411 5,428
Less: Treasury stock at cost (71 ) (71 ) Total
stockholders' equity 3,340 5,357 Total
liabilities and stockholders' equity $ 10,691 $ 13,139
Hooper HolmesHenry E. Dubois, President and CEO,
913-764-1045orInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400