Hooper Holmes (NYSE MKT:HH) today announced financial results
for the quarter ended September 30, 2015, reporting an 18% increase
in revenues, a 15% improvement in gross profit and a significantly
reduced net loss compared to the quarter ended September 30, 2014.
The Company also filed an initial S-1 registration statement with
the Securities and Exchange Commission to raise $4.0 million in
capital through a rights offering to existing shareholders.
Consolidated revenues totaled $9.3 million for the third quarter
of 2015, representing an increase of 18% from $7.9 million in the
third quarter of 2014, due to additional revenue from the
acquisition of Accountable Health Solutions, Inc. (AHS) and
increased biometric screenings. The Company completed 139,000
biometric screenings during the third quarter of 2015, representing
an increase of 17% from 119,000 biometric screenings completed in
the third quarter of 2014. Gross profit totaled $2.1 million for
the third quarter of 2015, representing an increase of 15% from
$1.9 million in the third quarter of 2014, due to increased revenue
and our expanded suite of health and wellness products and
services. Margins were impacted by operational investments of $700
thousand during the third quarter 2015 for process improvements,
oversight and staff training, which are expected to be leveraged as
revenues increase.
Selling, general and administrative expense totaled $3.7 million
for the third quarter of 2015 compared to $3.5 million in the third
quarter of 2014. Excluding the impact of one-time events, the
Company recorded a net loss of $1.6 million, or $0.02 per share,
for the third quarter of 2015, compared to a net loss of $4.5
million, or $0.06 per share, in the third quarter of 2014. As of
September 30, 2015, cash and cash equivalents totaled $1.5 million,
an increase of $0.3 million from the three month period ending June
30, 2015, with $3.4 million in borrowings outstanding under the
Company's credit facility.
Henry Dubois, President and CEO of Hooper Holmes commented, "Our
business momentum continues to build. Year to date, we have won new
sales providing approximately $5.0 million of revenue in 2015 and
an estimated $11.0 million in revenue in 2016. To support our
operations, sales growth, and service our debt obligations
associated with the AHS acquisition we plan to raise $4.0 million
by offering existing shareholders the opportunity to purchase
additional shares through a rights offering. Directors, executive
officers, related parties and a key shareholder, as disclosed in
our S-1, are fully engaged in this capital raise. I am pleased to
report that we have more than $1 million in non-binding commitments
from this group. We hope to launch this program in early December
and close the transaction in the first quarter of 2016. The
registration statement is available on our website, and with the
SEC."
Conference Call
The Company will host a conference call today, Thursday,
November 12, 2015, at 7:30 a.m. CT (8:30 a.m. ET) to discuss third
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 888-438-5519,
or internationally 719-785-1765, conference ID: 3408680, 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 12, 2015
until 11:00 p.m. CT (midnight ET) on November 19, 2015, by dialing
877-870-5176, or internationally 858-384-5517. The access code for
the replay is 3408680.
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 September 30, Nine months ended September
30, 2015 2014 2015 2014 Revenues
$ 9,272 $ 7,875 $ 22,615 $ 21,852 Cost of operations 7,143
6,021 18,060 16,193
Gross profit 2,129 1,854
4,555 5,659 Selling, general and
administrative expenses 3,740 3,541 10,212 12,007 Transaction costs
57 - 737 - Gain on sale of real estate (1,830 )
(1,830 ) Operating income (loss) from continuing
operations (1,668 ) 143 (6,394 ) (4,518 ) Interest expense, net
(388 ) (61 ) (1,097 ) (156 ) Income
(loss) from continuing operations before taxes (2,056 ) 82 (7,491 )
(4,674 ) Income tax expense 5 5
15 15 Income (loss) from continuing operations
(2,061 ) 77 (7,506 ) (4,689 )
Discontinued operations: Gain on sale of subsidiaries, net
of adjustments - 1,354 - 1,204 Loss from discontinued operations,
net of tax (57 ) (2,739 ) (82 ) (3,321
) Loss from discontinued operations (57 ) (1,385 )
(82 ) (2,117 ) Net loss $ (2,118 ) $ (1,308 ) $
(7,588 ) $ (6,806 ) Reconciliation of GAAP results to
Non-GAAP results Gain on sale of real estate/restructuring - (1,830
) - (1,738 ) Gain on sale of lab services - (1,354 ) - (1,204 ) AHS
transaction & integration costs 304 - 1,242 - Close-out cost of
2013 Portamedic sale 168 - 168
- Adjusted (Non-GAAP) net loss $ (1,646 ) $
(4,492 ) $ (6,178 ) $ (9,748 ) Adjusted net loss for third
quarter 2015 was $1.6 million, compared to $4.5 million of adjusted
net loss in the third quarter of 2014. The above schedule is a
description of adjustments made to net loss. Income
(loss) per share Continuing operations: Basic $ (0.03 ) $ 0.00 $
(0.10 ) $ (0.07 ) Diluted (0.03 ) 0.00 (0.10 ) (0.07 ) Discontinued
operations: Basic (0.00 ) (0.02 ) (0.00 ) (0.03 ) Diluted (0.00 )
(0.02 ) (0.00 ) (0.03 ) Net loss: Basic (0.03 ) (0.02 ) (0.10 )
(0.10 ) Diluted (0.03 ) (0.02 ) (0.10 )
(0.10 ) Weighted average number of shares: Basic and diluted
77,789,792 70,866,603 75,391,420 70,623,068
Adjusted net loss is not a recognized term under GAAP. These
non-GAAP financial measures should not be substituted for GAAP net
earnings or GAAP diluted earnings per share, respectively, as
measures of Hooper Holmes’ performance, but instead should be
utilized as supplemental measures of financial performance in
evaluating our business.
Hooper Holmes, Inc. Consolidated Balance
Sheets (unaudited; in thousands)
September 30, 2015 December 31,
2014 ASSETS Current assets: Cash and cash
equivalents $ 1,528 $ 5,201 Accounts receivable, net of allowance
for doubtful accounts 7,546 3,178 Inventories 822 897 Other current
assets 452 202 Total current assets
10,348 9,478 Property, plant and equipment, net 3,183 3,054
Intangible assets 5,498 - Goodwill 657 - Other assets 662
607 Total assets 20,348
13,139
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable 4,688 2,508 Accrued expenses
5,276 4,083 Short-term debt 5,195 -
Total current liabilities 15,159 6,591 Long-term debt, net
of discount 65 - Other long term liabilities 1,702 1,191
Commitments and contingencies Stockholders' equity: Common
stock 3,119 2,835 Additional paid-in capital 156,116 150,747
Accumulated deficit (155,742 ) (148,154 ) 3,493 5,428
Less: Treasury stock at cost (71 ) (71 ) Total
stockholders' equity 3,422 5,357 Total
liabilities and stockholders' equity $ 20,348 $ 13,139
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151112005456/en/
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400