Hooper Holmes Announces Second Quarter 2012 Results

  Hooper Holmes Announces Second Quarter 2012 Results

Business Wire

BASKING RIDGE, N.J. -- August 10, 2012

Hooper Holmes (NYSE MKT:HH) today announced financial results for the quarter
ended June 30, 2012.

Consolidated revenues totaled $35.4 million for the second quarter of 2012,
representing a 7% decline from $37.9 million in the second quarter of 2011.
The Company recorded a net loss of $5.5 million, or ($0.08) per share, for the
second quarter of 2012 compared to a net loss of $1.6 million, or ($0.02) per
share, for the second quarter of 2011. The net loss for the second quarter of
2012 includes $1.6 million of restructuring charges related to our new
Portamedic service delivery model.

For the six months ended June 30, 2012, consolidated revenues were $74.2
million compared to $78.5 million in the comparable period of 2011. The
Company’s net loss for the six months ended June 30, 2012 totaled $8.7
million, or ($0.12) per share, compared to a net loss of $1.7 million, or
($0.02) per share, for the six months ended June 30, 2011. The results for the
six months ended June 30, 2012 include $2.2 million of restructuring charges,
primarily related to our new Portamedic service delivery model.

Second quarter 2012 revenues by service line:

  * Portamedic revenue totaled $24.4 million in the second quarter of 2012, a
    decline of approximately 9% compared to $26.8 million in the second
    quarter of 2011, primarily due to an 8% decline in paramedical exams
    completed during the quarter, along with a 1.9% decrease in revenue per
    exam.
  * Health & Wellness revenue totaled $3.8 million for the second quarter of
    2012, a 51% increase from the second quarter of 2011, primarily due to an
    increase in health screenings completed during the quarter.
  * Heritage Labs revenue totaled $2.8 million for the second quarter of 2012,
    a decrease of approximately 10% compared to the second quarter of 2011,
    primarily attributable to a decrease in revenue from the Company’s lab kit
    assembly services.
  * Hooper Holmes Services revenue totaled $4.4 million for the second quarter
    of 2012, a decrease of 20% in comparison to the prior year period,
    primarily due to reduced demand for the Company’s medical records
    collection services.

The Company's cash balance declined by approximately $2.0 million in the
second quarter of 2012, primarily attributable to net cash used in operations
of approximately $0.9 million and capital expenditures totaling $1.0 million
in the second quarter of 2012. As of June 30, 2012, cash and cash equivalents
totaled $11.4 million, with no outstanding borrowings under the Company’s
credit facility.

"The new delivery model we announced in June has been designed to improve our
service and we believe it will increase revenue in Portamedic, while reducing
our cost structure by approximately $4 million in the second half of 2012. On
an annual basis, we have reduced Portamedic’s cost structure by approximately
$8 million,” said Ransom J. Parker, President and CEO of Hooper Holmes. “At
the same time, Health & Wellness experienced continued strong double digit
growth in the second quarter, as we completed approximately 70,000 screenings,
which is about a 50% increase over second quarter 2011.”

Mr. Parker continued, "Looking to the remainder of this year, we expect to end
2012 with year-over-year growth in the fourth quarter, along with
profitability, and we believe we are positioned for sustained profitability in
2013.”

Conference Call

The Company will host a conference call, today, August 10, 2012 at 11:00 a.m.
ET to discuss second quarter 2012 results.

To participate in the conference call, please dial 877-941-1427 or
internationally 480-629-9664 conference ID 4551285 five to ten minutes before
the call is scheduled to begin. A live web cast will be hosted on the
Company's web site located at www.hooperholmes.com. Listeners may also access
a telephone replay of the conference call, available from 2:00 p.m. on August
10, 2012 until midnight on August 17, 2012, by dialing 877-870-5176 or
internationally 858-384-5517. The access code for the replay is 4551285.

About Hooper Holmes

Hooper Holmes is a leader in collecting personal health data and transforming
it into useful information, enabling customers to take actions that manage or
reduce their risks and expenses. With a presence in hundreds of markets and a
network of thousands of examiners, Hooper Holmes can arrange a medical exam
anywhere in the U.S. and deliver the results to its customers.

Hooper Holmes has four service lines. Portamedic provides a wide range of
medical exam services nationwide. Heritage Labs tests millions of samples
annually and helps life insurers improve underwriting performance by better
applying the predictive powers of today’s tests. Hooper Holmes Health &
Wellness performs risk assessment and risk management services including
biometric screenings, health risk assessments and onsite wellness coaching for
wellness companies, disease management organizations, clinical research
organizations and health plans. Hooper Holmes Services reduces the insurance
sales cycle through integrated data collection, tele-interviewing and
underwriting services.

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 successfully implement our business strategy;
our working capital requirements over the next 12 to 24 months; the level of
our liquidity; operating cash flows; customer and creditor concerns about our
financial health; and the rate of life insurance application activity.
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, 2011, filed with the Securities and Exchange
Commission on March 9, 2012. 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 June 30,       Six Months ended June 30,
                     2012           2011               2012           2011
                                                                         
Revenues           $ 35,401         $ 37,928         $ 74,193         $ 78,505
Cost of              28,317           28,864           58,090           58,472      
operations
  Gross profit       7,084            9,064            16,103           20,033      
Selling,
general and          11,033           10,556           22,486           21,436
administrative
expenses
Restructuring        1,575            38               2,192            94          
charges
  Operating
  loss from          (5,524     )     (1,530     )     (8,575     )     (1,497     )
  continuing
  operations
Other income
(expense):
  Interest
  income             5                13               10               27
  (expense),
  net
  Other              (73        )     (78        )     (145       )     (159       )
  expense, net
                     (68        )     (65        )     (135       )     (132       )
  Loss from
  continuing
  operations         (5,592     )     (1,595     )     (8,710     )     (1,629     )
  before
  income taxes
                                                                         
Income tax           3                26               23               49          
expense
  Loss from
  continuing         (5,595     )     (1,621     )     (8,733     )     (1,678     )
  operations
                                                                         
Discontinued
operations:
  Gain on sale
  of                 65               -                65               -
  subsidiary
                                                                         
Net loss           $ (5,530     )   $ (1,621     )   $ (8,668     )   $ (1,678     )
                                                                         
Loss per
share:
  Continuing
  operations:
  Basic            $ (0.08      )   $ (0.02      )   $ (0.13      )   $ (0.02      )
  Diluted          $ (0.08      )   $ (0.02      )   $ (0.13      )   $ (0.02      )
                                                                         
  Discontinued
  operations:
  Basic            $ -              $ -              $ -              $ -
  Diluted          $ -              $ -              $ -              $ -
                                                                         
  Net loss:
  Basic            $ (0.08      )   $ (0.02      )   $ (0.12      )   $ (0.02      )
  Diluted          $ (0.08      )   $ (0.02      )   $ (0.12      )   $ (0.02      )
                                                                         
Weighted
average number
of shares:
  Basic and          69,679,477       69,599,477       69,674,532       69,594,559
  diluted
                                                                                    

                                                          
Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per share data)
   
                                           June 30, 2012     December 31, 2011
ASSETS
Current assets:
  Cash and cash equivalents              $ 11,443          $ 16,917
  Accounts receivable, net of
  allowance for doubtful accounts
  of $513 and $525 at June 30, 2012
  and December 31,
  2011, respectively                       16,996            18,387
  Inventories                              2,844             2,226
  Other current assets                     1,223             2,140         
      Total current assets                 32,506            39,670
                                                              
Property, plant and equipment at cost      50,105            54,333
Less: accumulated depreciation and         36,990            41,281        
amortization
Property, plant and equipment,             13,115            13,052
net
                                                              
Intangible assets, net                     44                195
Other assets                               335               364           
      Total assets                       $ 46,000          $ 53,281        
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
      Accounts payable                   $ 5,680           $ 5,174
      Accrued expenses                     6,616             6,173         
      Total current liabilities            12,296            11,347
                                                              
Other long term liabilities                1,292             1,185
                                                              
Commitments and Contingencies
                                                              
Stockholders' equity:
  Common stock, par value $.04 per
  share; authorized 240,000,000
  shares;
      Issued: 69,708,982 shares and
      69,678,982 shares at June 30,
      2012 and
      December 31, 2011, respectively.
      Outstanding: 69,699,587 shares
      and
      69,669,587 shares at June 30,
      2012 and December 31, 2011,          2,788             2,787
      respectively.
                                                              
  Additional paid-in capital               149,169           148,839
  Accumulated deficit                      (119,474   )      (110,806     )
                                           32,483            40,820
  Less: Treasury stock at cost, 9,395
  shares as of
  June 30, 2012 and December 31, 2011      (71        )      (71          )
  Total stockholders' equity               32,412            40,749        
      Total liabilities and              $ 46,000          $ 53,281        
      stockholders' equity
                                                              

Contact:

Hooper Holmes
Burt R. Wolder, Senior Vice President, 908-953-6249
or
Investors:
S.M. Berger & Company
Andrew Berger, 216-464-6400