Hooper Holmes, Inc. (NYSE MKT:HH) today announced financial
results for the fourth quarter and full year ended December 31,
2015.
For the fourth quarter of 2015, consolidated revenues from
continuing operations totaled $9.5 million, a 42% improvement
compared to $6.7 million for the fourth quarter of 2014. The
Company performed approximately 152,000 screening units for the
fourth quarter of 2015, a 20% improvement compared to 127,000
screening units for the fourth quarter of 2014.
For the year ended December 31, 2015, consolidated revenues from
continuing operations were $32.1 million, an increase of
approximately 13% from the prior year of $28.5 million, as
screening unit growth offset reductions that were expected from the
previously announced end of a large clinical research contract. The
Company's net loss for the year ended December 31, 2015, was $10.9
million, compared to a net loss of $8.5 million for the year ended
December 31, 2014. On an adjusted EBITDA basis, excluding one-time
events, the Company's net loss for the year ended December 31, 2015
was $4.5 million, a 35% improvement compared to 2014.
For the year ended December 31, 2015, the Company performed
approximately 515,000 health screenings, an increase of
approximately 9% compared to 474,000 health screenings for the year
ended December 31, 2014. As of December 31, 2015, cash and cash
equivalents totaled $2.0 million, with $3.3 million in borrowings
outstanding under the Company’s credit facility. On January 27,
2016, the Company announced the results of a rights offering which
raised $3.5 million in new capital.
Henry Dubois, President and CEO of Hooper Holmes commented,
"2015 was a transformational year for our business. We integrated a
major acquisition, introduced new Health and Wellness services, and
signed new customers. In the first quarter of 2016 we strengthened
our capital structure and won new sales which we expect to
contribute at least $3.3 million in new 2016 revenue. The year is
off to a strong start, and we are making progress towards our 2016
financial goals of revenue in excess of $42 million and positive
EBITDA and operating cash flow."
Conference Call
The Company will host a conference call today, Tuesday, March
29, 2016, at 7:30 a.m. CT (8:30 a.m. ET) to discuss 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 888-438-5491,
or internationally 719-785-1753 conference ID: 4689706 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 through April 5,
2016, by dialing 877-870-5176, or internationally 858-384-5517. The
access code for the replay is 4689706.
Sidoti Conference
On Thursday, March 31, 2016, Hooper Holmes will be participating
at the Sidoti Emerging Growth Convention. The conference will be
held at the New York Marriott Marquis at Times Square. Henry
Dubois, President and CEO of Hooper Holmes, will present at 8:30
a.m. ET.
The Company will also meet one-on-one with institutional
investors during the day. Investors interested in attending and
scheduling a one-on-one meeting with management should click the
link below:
https://www.meetmax.com/sched/event_35923/investor_reg_new.html?cmd=register&event_id=35923&attendee_role_id=INVESTOR.
The Company’s presentation will be available in the Investor
Relations section of Hooper Holmes’ website:
http://www.hooperholmes.com/investors/.
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.
More information is available at hooperholmes.com and at
accountablehealthsolutions.com.
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 December 31, Twelve months ended December
31, 2015 2014
2015 2014 Revenues
$ 9,499 $ 6,671 $ 32,115 $ 28,524 Cost of operations 7,528
5,544 25,590 21,737
Gross profit 1,971 1,127
6,525 6,787 Selling, general and
administrative expenses 3,824 2,226 14,037 14,138 Transaction costs
290 - 1,027 - Gain (loss) on sale of real estate and restructuring
- 39 - (1,700 )
Operating loss from continuing operations (2,143 ) (1,138 ) (8,539
) (5,651 ) Interest expense, net (700 ) 1 (1,796 ) - Other
(expense) income, net - (84 ) -
(239 ) Loss from continuing operations before taxes (2,843 )
(1,221 ) (10,335 ) (5,890 ) Income tax expense 5
8 19 23 Loss from
continuing operations (2,848 ) (1,229 )
(10,354 ) (5,913 ) Discontinued operations: Gain
(loss) on sale of subsidiaries, net of adjustments - (464 ) - 739
Gain (loss) from discontinued operations, net of tax (438 )
24 (520 ) (3,301 ) Loss from
discontinued operations (438 ) (440 ) (520 )
(2,562 ) Net loss $ (3,286 ) $ (1,669 ) $ (10,874 ) $ (8,475
) Reconciliation of GAAP results to Non-GAAP results
Interest expense $ 255 $ - $ 621 $ - Amortization of deferred
financing fees 59 83 387 343 Accretion of debt discount on warrants
351 - 780 - Accretion of termination fees 40 - 88 - Mark to market
of the additional warrant feature (6 ) - (80 ) - Income tax expense
5 8 19 23 Depreciation and amortization 666 307 2,211 1,220 Stock
compensation expense 80 49 440 503 Transaction & transition
costs 486 83 1,728 1,885 Gain (loss) on sale of real estate and
restructuring - 39 - (1,700 ) Gain (loss) on sale of lab services -
464 - (889 ) Close-out cost of 2013 Portamedic sale -
- 168 150 Adjusted
(Non-GAAP) EBITDA $ (1,350 ) $ (636 ) $ (4,512 ) $ (6,940 )
Adjusted EBITDA for fourth quarter 2015 was $1.4 million, compared
to $.6 million of adjusted EBITDA in the fourth quarter of 2014.
The above schedule is a description of adjustments made to net
loss. Income (loss) per share Continuing operations:
Basic $ (0.04 ) $ (0.02 ) $ (0.14 ) $ (0.08 ) Diluted (0.04 ) (0.02
) (0.14 ) (0.08 ) Discontinued operations: Basic (0.01 ) (0.01 )
(0.01 ) (0.04 ) Diluted (0.01 ) (0.01 ) (0.01 ) (0.04 ) Net loss:
Basic (0.04 ) (0.02 ) (0.14 ) (0.12 ) Diluted (0.04 )
(0.02 ) (0.14 ) (0.12 ) Weighted
average number of shares: Basic and diluted 77,996,947 70,866,603
76,048,156 70,684,452
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)
December 31,
2015 December 31, 2014 ASSETS
Current assets: Cash and cash equivalents $ 2,035 $ 5,201 Accounts
receivable, net of allowance for doubtful accounts 5,565 3,178
Inventories 567 897 Other current assets 331
202 Total current assets 8,498 9,478 Property, plant
and equipment, net 2,771 3,054 Intangible assets 5,331 - Goodwill
633 - Other assets 613 607 Total assets
17,846 13,139
LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
5,339 2,508 Accrued expenses 5,186 4,083 Short-term debt
5,493 - Total current liabilities 16,018 6,591
Long-term debt, net of discount - - Other long term
liabilities 1,611 1,191 Commitments and contingencies
Stockholders' equity: Common stock 3,121 2,835 Additional paid-in
capital 156,195 150,747 Accumulated deficit (159,028 )
(148,154 ) 288 5,428 Less: Treasury stock at cost (71
) (71 ) Total stockholders' equity 217
5,357 Total liabilities and stockholders' equity $ 17,846
$ 13,139
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160329005559/en/
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400