Hooper Holmes, Inc. (NYSE MKT:HH) today announced financial
results for the quarter ended March 31, 2016.
Consolidated revenues totaled $7.2 million for the first quarter
of 2016, representing an increase of 27.5% compared to $5.7 million
during the first quarter of 2015. The Company recorded a net loss
of $3.4 million, or $0.03 per share for the first quarter of 2016
compared to a net loss of $2.1 million, or $0.03 per share for the
first quarter of 2015. On an adjusted EBITDA basis, the Company's
net loss for the first quarter 2016 was $1.4 million, a 10.1%
improvement compared to the first quarter 2015.
Gross profit for the 2016 first quarter increased approximately
100% to $1.5 million, compared to $0.7 million for the same period
last year. As a percent of sales, gross profit was 20.2% compared
to 12.9% for the 2015 first quarter. Selling, general and
administrative expense for the three month period ending March 31,
2016, totaled $3.8 million compared to $2.7 million in the first
quarter of 2015, reflecting the addition of staff and other
expenses associated with increased revenues from the provision of
portal, wellness and coaching services to direct customers.
As of March 31, 2016, cash and cash equivalents totaled $2.0
million, with $2.6 million in borrowings outstanding under the
Company’s credit facility.
Henry Dubois, President and CEO of Hooper Holmes commented, "The
results we announced this morning reflect strong revenue growth,
higher gross margins, and improving adjusted EBITDA. The momentum
in our business continues, and we are making progress towards our
2016 financial goals of revenue of $42+ million and positive
adjusted EBITDA and operating cash flow. Looking ahead, we will
continue to execute our business plan to improve financial
performance and deliver significantly improved shareholder
value."
Conference Call
The Company will host a conference call today, Thursday, May 12,
2016, at 7:30 a.m. CT (8:30 a.m. ET) to discuss its first quarter
2016 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 888-378-0320
or internationally 1-719-457-2697, conference ID: 5726444, 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 May 19, 2016, by dialing 877-870-5176, or
internationally 1-858-384-5517. The access code for the replay is
5726444.
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. The forward-looking statements contained in this press
release reflect the Company’s current beliefs and expectations.
Actual results or performance may differ materially from what is
expressed in the forward looking statements. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those expected. These
risks and uncertainties include, but are not limited to, risks
related to customer concerns about our financial health, our
liquidity, uncertainty as to our working capital requirements over
the next 12 to 24 months, our ability to maintain compliance with
the financial covenants contained in our credit facility and term
loan, declines in our business, our competition, and our ability to
retain and grow our customer base and its related impact on
revenue, our ability to recognize operational efficiencies and
reduce costs, our ability to realize the expected benefits from the
acquisition of Accountable Health Solutions, and such other factors
as discussed in Part I, Item 1A, Risk Factors, and Part II, Item 7,
Management’s Discussion and Analysis of Financial Conditions and
Results of Operations of our Annual Report on Form 10-K for the
year ended December 31, 2015, and similar discussions in our other
filings with the Securities and Exchange Commission ("SEC"). 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 Balance
Sheets (in thousands)
March 31, 2016
December 31, 2015 ASSETS (unaudited)
Current assets: Cash and cash equivalents $ 2,031 $ 2,035 Accounts
receivable, net of allowance for doubtful accounts 5,700 5,565
Inventories 683 567 Other current assets 324 331 Total current
assets 8,738 8,498 Property, plant and equipment, net 2,475
2,771 Intangible assets, net 5,011 5,331 Goodwill 633 633 Other
assets 438 450 Total assets 17,295 17,683
LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
4,756 5,339 Accrued expenses 4,733 5,186 Short-term debt 4,606
5,330 Total current liabilities 14,095 15,855 Other long
term liabilities 1,470 1,611 Commitments and contingencies -
- Stockholders' equity: Common stock 5,129 3,121 Additional
paid-in capital 159,128 156,195 Accumulated deficit (162,456)
(159,028) 1,801 288 Less: Treasury stock at cost (71) (71) Total
stockholders' equity 1,730 217 Total liabilities and stockholders'
equity $ 17,295 $ 17,683
HOOPER HOLMES
INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited;
in thousands, except share and per share data)
Three months ended March 31, 2016 2015
Revenues $ 7,241 $ 5,681 Cost of operations 5,781 4,949
Gross profit 1,460 732 Selling, general and administrative expenses
3,827 2,660 Transaction costs 108 87 Operating loss from continuing
operations (2,475) (2,015) Interest expense, net 789 83 Loss from
continuing operations before taxes (3,264) (2,098) Income tax
expense 5 5 Loss from continuing operations (3,269) (2,103)
Discontinued operations: Loss from discontinued operations
(159) (4) Net loss $ (3,428) $ (2,107) Reconciliation of
GAAP results to Non-GAAP results Interest expense $ 212 $ - Other
debt related costs included in Interest expense 577 83 Income taxes
5 5 Depreciation & amortization 701 293 Share-based
compensation expense 80 89 Stock payments 150 - Transaction Costs
108 87 Transition Costs 52 - Portamedic contingent liability
150 - Adjusted (Non-GAAP) EBITDA $ (1,393) $ (1,550)
Adjusted EBITDA for first quarter 2016 was
($1.4 million), compared to ($1.6 million) of adjusted EBITDAin the
first quarter of 2015. The above schedule is a description of
adjustments made to net loss.
Income (loss) per share Continuing operations: Basic
$ (0.03) $ (0.03) Diluted (0.03) (0.03) Discontinued operations:
Basic (0.00) (0.00) Diluted (0.00) (0.00) Net loss: Basic (0.03)
(0.03) Diluted (0.03) (0.03) Weighted average number
of shares: Basic and diluted 120,848,209 70,866,603
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version on businesswire.com: http://www.businesswire.com/news/home/20160512005258/en/
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400