Hooper Holmes (NYSE Amex:HH) today announced financial results for the quarter ended September 30, 2011.
“We believe that our 2011 operating and capital investments are working and that we are making solid progress toward returning the Company to a growth trajectory.”
Consolidated revenues totaled $38.2 million for the third quarter of 2011, representing a 5% revenue decline from $40.3 million in the third quarter of 2010. The Company recorded a net loss for the third quarter of $1.3 million, or ($0.02) per share, compared to a net loss of $1.2 million, or ($0.02) per share, in 2010. The net loss for the third quarter of 2011 includes a $0.6 million sales tax refund received from a supplier, which positively impacted gross profit. The net loss for the third quarter of 2010 included restructuring charges of $0.7 million.
For the nine months ended September 30, 2011, consolidated revenues were $116.7 million compared to $123.0 million in the comparable period of 2010. The Company's net loss for the nine months ended September 30, 2011 totaled $2.9 million, or ($0.04) per share, compared to a net loss of $0.7 million, or ($0.01) per share, for the nine months ended September 30, 2010. The results for the nine months ended September 30, 2011 include a $0.6 million sales tax refund received from a supplier. The results for the nine months ended September 30, 2010 included a $1.6 million reduction in a previously established reserve for interest and penalties pertaining to unclaimed property, along with restructuring charges of $0.9 million.
Third quarter 2011 revenues by service line:
- Portamedic revenue totaled $24.8 million in the third quarter of 2011, a decline of approximately 12% compared to $28.2 million in the third quarter of 2010, primarily due to an 8.6% decline in paramedical exams completed during the quarter, along with a 4.3% decrease in revenue per exam.
- Heritage Labs revenue totaled $2.7 million for the third quarter of 2011, a decrease of approximately 3% compared to the third quarter of 2010, primarily attributable to reduced demand for our lab testing services.
- Hooper Holmes Services revenue totaled $5.0 million for the third quarter of 2011, down 13% in comparison to the prior year period, primarily attributable to reduced revenue from our medical records collection services.
- Health & Wellness revenue totaled $5.7 million for the third quarter of 2011, a 55% increase from the third quarter of 2010, primarily due to an increase in health screenings completed during the quarter.
Net cash used in operations approximated $1.4 million in the third quarter of 2011, primarily attributable to an increase in accounts receivable during the third quarter. Capital expenditures totaled $1.4 million in the third quarter of 2011. As of September 30, 2011, cash and cash equivalents totaled $18.0 million, with no outstanding borrowings under the Company's credit facility.
"During the third quarter, we reduced the rate of revenue decline to 5% year over year compared to 9% in 2010. Additionally, we grew Health & Wellness revenues, won a major government study, began a new solutions sales partnership in the brokerage space, renewed carrier approval contracts and continued to expand iParamed," said Ransom J. Parker, President and CEO of Hooper Holmes. "We believe that our 2011 operating and capital investments are working and that we are making solid progress toward returning the Company to a growth trajectory."