Hooper Holmes Provides Business Updates
February 10 2016 - 8:00AM
Business Wire
- Record Pipeline of New Sales
- Management to Present at SeeThruEquity
Investor Conference
- NYSE MKT Accepts Plan of
Compliance
Hooper Holmes, Inc. (NYSE MKT:HH) today provided a business
update that includes an update on new sales momentum, management’s
participation at the SeeThruEquity Investor Conference on Monday,
February 22, 2016, and the NYSE MKT’s acceptance of the Company’s
plan on compliance.
Henry Dubois, President and CEO of Hooper
Holmes commented, “2016 is starting out with strong business
momentum as we execute our growth oriented business plan. Our
recent wins represent the compelling value our products and
services offer customers. Favorable trends are occurring across all
of our lines of business and we are making progress towards our
2016 financial goals of revenue in excess of $42 million and
positive EBITDA and operating cash flow.”
Update on New Sales
Through February 5, 2016, Hooper Holmes closed a record amount
of new business and continues to experience strong growth momentum.
In addition to the previously announced $12 million multi-year
contract extension with one of the Company’s largest clinical
research partners, Hooper Holmes has recently closed an additional
$1.2 million of new revenue bringing the total new revenue to $13.2
million, of which $2.0 million is expected to be delivered in
2016.
The new wins in the first six weeks of 2016 include a large
employer headquartered in North Dakota with more than 4,000
participant lives in the healthcare industry that will be using the
full suite of wellness services. The Company also received an
expanded contract with a large children’s hospital network in the
Midwest. The hospital system has decided to include health coaching
services as an additional benefit to its employees as a way to
further increase the overall health of their workforce.
SeeThruEquity Investor Conference
On February 22, 2016, management will be attending the
SeeThruEquity & The Brewer Group 2nd Annual Innovations
Investor Conference in Miami, Florida. The Company will be
presenting as well as meeting with investors throughout the
day.
NYSE MKT Plan of Compliance
Hooper Holmes also announced that the Company received a letter
from the NYSE MKT LLC (the “Exchange”) on February 4, 2016, stating
that the Exchange has accepted the Company’s plan of compliance
(the “Company’s Plan”), allowing the Company’s continued listing on
the NYSE in response to an earlier notice from the Exchange that
the company was not in compliance with section 1003(a)(ii) of the
NYSE MKT Company Guide (the “Company Guide”), which requires
companies reporting losses from continuing operations and net
losses in its four most recent fiscal years to have $4.0 million of
shareholders’ equity.
In the February 4th letter, the Exchange also notified the
Company that it had determined that the Company’s securities have
been selling for a low price per share for a substantial period of
time, resulting in non-compliance with section 1003(f)(v) of the
Company Guide and must become compliant with this section by August
4, 2016.
The Company’s Plan, referenced above and submitted to the
Exchange on January 8, 2016, offered remediation plans for both of
these deficiencies. In the February 4th letter, the Exchange
notified the Company that it accepted the Company’s Plan and
granted the Company an extension until May 8, 2017 (the “Plan
Period”) to regain compliance with section 1003(a)(ii) of the
Company Guide. The Company will be subject to periodic review by
the Exchange during the Plan Period. Failure to make progress
consistent with the Plan or to regain compliance with the continued
listing standards of the Company Guide by the end of the Plan
Period could result in the Company being delisted from the
Exchange. The Company is working diligently to regain compliance
with the Company Guide by the required timeframes.
Mr. Dubois concluded: “We are committed to meeting the
expectations set forth by the Exchange. We have built a solid
foundation to grow and support our business and have improved our
capital structure through the success of our Rights Offering. I
also appreciate the continued support from our customers, channel
partners, employees and shareholders, as we continue working to
create long-term value for all our stakeholders.”
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; our ability to fulfill the conditions of our plan to
comply with the NYSE MKT’s minimum requirement for shareholders’
equity; 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160210005446/en/
Hooper Holmes, Inc.Joanna Ficklin, 240-888-3499Vice President,
MarketingorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400