Hooper Holmes Announces Preliminary Third Quarter 2013 Results

  Hooper Holmes Announces Preliminary Third Quarter 2013 Results

Business Wire

BASKING RIDGE, N.J. -- November 14, 2013

Hooper Holmes, Inc. (NYSE MKT:HH) today announced preliminary financial
results for the quarter ended September 30, 2013.

On September 30, 2013, the Company closed on the sale of its Portamedic
service line. As a result, financial results related to the Portamedic service
line are reported as discontinued operations.

Due to the complexity of issues surrounding the accounting for the recent sale
of the Portamedic service line, the Company has not yet finalized its
financial statements for the quarter ended September 30, 2013. The Company
believes the final financial statements will not change materially from the
results included in this release and is releasing these results to provide
investors with information prior to the investor call, scheduled for 8:30 a.m.
ET on November 15, 2013. The Company plans to finalize its financial
statements and file its Form 10-Q for the quarter ended September 30, 2013 by
November 19, 2013.

Consolidated revenues totaled $11.0 million for the third quarter of 2013,
representing an 11% decline from $12.3 million in the third quarter of 2012.
The Company recorded a net loss of $1.7 million, or $(0.02) per share, for the
third quarter of 2013 compared to a net loss of $2.2 million, or $(0.03) per
share, for the third quarter of 2012. The net loss for the third quarter of
2013 includes $0.4 million of restructuring charges, $3.5 million of gain on
the sale of Portamedic, and a loss from discontinued operations, net of income
taxes, of $2.0 million. The net loss for the third quarter of 2012 included a
$1.0 million loss from discontinued operations, net of income taxes.

For the nine months ended September 30, 2013, consolidated revenues were $34.2
million compared to $35.8 million in the comparable period of 2012. The
Company’s net loss for the nine months ended September 30, 2013 totaled $9.3
million, or $(0.13) per share, compared to a net loss of $10.9 million, or
$(0.16) per share, for the nine months ended September 30, 2012. The results
for the nine months ended September 30, 2013 includes $0.7 million of
restructuring charges, $0.2 million of asset impairment, $3.6 million gain on
the sale of Portamedic, and a loss from discontinued operations, net of income
taxes, of $4.7 million. The net loss for the nine months of 2012 included $0.4
million of restructuring charges and a $5.5 million loss from discontinued
operations, net of income taxes.

Third quarter 2013 revenues by service line:

  *Health & Wellness revenue totaled $5.0 million for the third quarter of
    2013, a 6% decline from the third quarter of 2012, reflecting lower
    volumes from one customer, expected to rebound in 2014, as it made changes
    in its business systems which reduced demand.
  *Heritage Labs revenue totaled $2.6 million for the third quarter of 2013,
    a decrease of approximately 16% compared to the third quarter of 2012,
    primarily attributable to a decrease in revenue from the Company’s life
    insurance lab testing services.
  *Hooper Holmes Services revenue totaled $3.4 million for the third quarter
    of 2013, a decrease of 13% in comparison to the prior year period,
    primarily due to reduced demand for the Company’s medical records
    collection services, partially offset by increased revenues from the
    Company’s underwriting services.

As of September 30, 2013, cash and cash equivalents totaled $6.7 million, with
$2.6 million of borrowings outstanding under the Company’s credit facility.
Hooper Holmes' accounts receivables were approximately $16 million at
September 30, 2013.

Commenting on the 2013 third quarter, Henry E. Dubois, President and CEO of
Hooper Holmes, stated: “As a result of the sale of Portamedic, our liquidity
position is improved and we anticipate cash flow from operations to improve
without the Portamedic service line. Since the end of the third quarter we
have paid off our debt balance and are now building cash. Looking ahead, we
expect to end 2013 with a strengthened balance sheet.”

"We are working hard to build a health & wellness culture as we consolidate
our operations in Olathe, KS," continued Mr. Dubois. "This transition will
take a couple quarters to complete, but once finished, Hooper Holmes will
operate as a leaner company with a solid foundation to support our long-term
objectives. Our national network of health professionals, proprietary
technology platform and lab testing capabilities are valuable assets that help
clients benchmark employee populations, monitor them for improvement and drive
down healthcare costs. Demand is improving for our call center, risk
assessment and outsourced underwriting services. We are dedicated to
profitably growing our business and providing improved results for our
shareholders.”

Conference Call

The Company will host a conference call tomorrow, November 15, 2013 at 8:30
a.m. ET to discuss third quarter 2013 results.

To participate in the conference call, please dial 877-941-2069, or
internationally 480-629-9713, conference ID: 4649286 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 11:30 a.m. ET on November 13, 2013 until midnight
ET on November 20, 2013, by dialing 877-870-5176, or internationally
858-384-5517. The access code for the replay is 4649286.

About Hooper Holmes

Hooper Holmes is a leader in collecting personal health data and transforming
it into useful information, enabling customers to take actions to manage or
reduce their risks and expenses. Hooper Holmes mobilizes a national network of
health professionals to provide on-site health screenings, laboratory testing,
risk assessments, and support clinical research. Hooper Holmes’ services help
organizations benchmark employee populations, monitor them for improvement and
drive down healthcare costs.

Hooper Holmes has three divisions. 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.
Heritage Labs tests millions of samples annually and helps insurers better
apply the predictive powers of today’s tests. Hooper Holmes Services provides
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;
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 our expectations regarding our operating cash flows;
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, 2012, filed with the Securities and Exchange
Commission on April 1, 2013. 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                Nine Months ended
                     September 30,                     September 30,
                     2013             2012             2013             2012
                                                                        
Revenues           $ 10,993         $ 12,299         $ 34,193         $ 35,786
Cost of             8,730           8,762           25,663          25,529
operations
Gross profit        2,263           3,537           8,530           10,257
Selling,
general and          5,002            4,655            15,372           15,054
administrative
expenses
Impairment of
long- lived          0                0                212              0
assets
Restructuring       362             0               671             445
charges
Operating loss
from                (3,101)         (1,118)         (7,725)         (5,242)
continuing
operations
Other expense:
Interest             (54)             (2)              (80)             (8)
expense
Interest             0                6                4                22
income
Other expense,      (131)           (71)            (343)           (217)
net
                   (185)           (67)            (419)           (203)
Loss from
continuing
operations           (3,286)          (1,185)          (8,144)          (5,445)
before income
taxes
                                                                        
Income tax           5                4                14               11
expense
                                                                 
Loss from
continuing          (3,291)         (1,189)         (8,158)         (5,456)
operations
                                                                        
Discontinued
operations:
Gain on sale
of Portamedic        3,543            0                3,618            65
and subsidiary
Loss from
discontinued
operations,        (1,966)         (1,004)         (4,736)         (5,470)
net of income
taxes
Income (loss)
from                1,577           (1,004)         (1,118)         (5,405)
discontinued
operations
Net loss           $ (1,714)        $ (2,193)        $ (9,276)        $ (10,861)
                                                                        
                                                                        
Earnings
(loss) per
share
Continuing
operations:
Basic              $ (0.05)         $ (0.02)         $ (0.12)         $ (0.08)
Diluted            $ (0.05)         $ (0.02)         $ (0.12)         $ (0.08)
                                                                        
Discontinued
operations:
Basic              $ 0.02           $ (0.01)         $ (0.01)         $ (0.08)
Diluted            $ 0.02           $ (0.01)         $ (0.01)         $ (0.08)
                                                                        
Net loss:
Basic              $ (0.02)         $ (0.03)         $ (0.13)         $ (0.16)
Diluted            $ (0.02)         $ (0.03)         $ (0.13)         $ (0.16)
                                                                        
Weighted
average number
of shares:
Basic and            69,952,153       69,789,628       69,877,878       69,713,178
diluted
                   


Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per share data)
                                                          
                                              September 30,       December 31,
                                              2013                2012
ASSETS
Current assets:
Cash and cash equivalents                   $ 6,655             $ 8,319
Accounts receivable, net of allowance
for doubtful accounts
of $622 and $662 at September 30,
2013 and December 31,
2012, respectively                            15,983              17,018
Inventories                                   1,773               1,290
Other current assets                          1,607               374
Assets held for sale                         -                  3,839
Total current assets                          26018               30,840
                                                                  
Property, plant and equipment at cost         21,092              20,920
Less: accumulated depreciation and           16,474              15,479
amortization
Property, plant and equipment, net            4,618               5,441
                                                                  
Other assets                                 2,094              137
Total assets                                $ 32,730            $ 36,418
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings                       $ 2,608             $ -
Accounts payable                              8,127               6,783
Accrued expenses                              5,895               4,439
Liabilities held for sale                    -                  220
Total current liabilities                     16,630              11,442
                                                                  
Other long term liabilities                   920                 1,115
                                                                  
Commitments and Contingencies
                                                                  
Stockholders' equity:
Common stock, par value $.04 per
share; Authorized: 240,000,000
shares;
Issued: 70,140,864 shares and
69,844,782 shares at September 30,
2013 and
December 31, 2012, respectively;
Outstanding: 70,131,469 shares and
69,865,387 shares at September 30,
2013 and December 31, 2012,                   2,806               2,794
respectively.
                                                                  
Additional paid-in capital                    150,125             149,542
Accumulated deficit                          (137,680)          (128,404)
                                              15,251              23,932
Less: Treasury stock at cost, 9,395
shares as of
September 30, 2013 and December 31,          (71)               (71)
2012
Total stockholders' equity                   15,180             23,861
Total liabilities and stockholders'         $ 32,730            $ 36,418
equity

Contact:

Hooper Holmes
Henry E. Dubois, 908-953-6314
President and CEO
or
Investors:
S.M. Berger & Company
Andrew Berger, 216-464-6400