Hooper Holmes (NYSE Amex:HH) today announced financial results for the quarter ended March 31, 2012.
“The Board wishes to emphasize its commitment and support of the significant investments that had to be made in order to establish the proper foundation to support our drive for future revenue growth and profitability”
Consolidated revenues totaled $38.8 million for the first quarter of 2012, representing a 4% revenue decline from $40.6 million in the first quarter of 2011. The Company recorded a net loss of $3.1 million for the first quarter of 2012, or $(0.05) per share, compared to a net loss of $0.1 million, or $0.00 per share, in the first quarter of 2011. The net loss for the first quarter of 2012 includes $0.6 million of restructuring charges. The net loss for the first quarter of 2011 included $0.1 million of restructuring charges.
"The loss for the quarter reflects the incremental costs associated with the investments we made in 2011," said Ransom J. Parker, President and CEO of Hooper Holmes. "It reflects the targeted hiring of IT professionals as part of our systems investments. It reflects hiring new salespeople to sign up new agents and producers, which should lead to unit growth in the back half of this year. It reflects new business development and sales talent in Health and Wellness, to maintain and expand our historically strong growth. A significant portion of the loss is also attributable to the severance costs of adjusting our workforce to reflect the efficiencies we're now recognizing from our new systems and other investments."
Mr. Parker continued, "These results are consistent with our plans to deliver profitable growth. We continue to take actions that are expected to deliver revenue growth in the third and fourth quarters of 2012. Our operating targets are to end 2012 with consolidated revenue growth, led by growth in Portamedic and consistently strong growth in Health & Wellness; positive cash flow from operations; a secure cash position with no borrowings; and profitability, excluding restructuring charges."
"The Board wishes to emphasize its commitment and support of the significant investments that had to be made in order to establish the proper foundation to support our drive for future revenue growth and profitability," said Ronald V. Aprahamian, Chairman of the Board of Hooper Holmes. "While our overall turnaround has taken longer, and cost more than preferred, we believe our management team has taken the right steps that will leave us well positioned going into 2013 and beyond."
First quarter 2012 revenues by service line:
- Portamedic revenue declined 7% to $26.6 million in the first quarter of 2012 compared to $28.6 million in the first quarter of 2011, primarily due to a 5% decline in paramedical exams completed during the quarter, along with a 2% decrease in revenue per exam.
- Heritage Labs revenue totaled $3.1 million for the first quarter of 2012, an increase of 1% compared to the first quarter of 2011, primarily attributable to an increase in lab kit assembly revenue.
- Hooper Holmes Services revenue totaled $5.0 million for the first quarter of 2012, a decrease of 9% in comparison to the prior year period, primarily due to reduced demand for our medical records collection services.
- Health & Wellness revenue totaled $4.1 million for the first quarter of 2012, a 19% increase from the first quarter of 2011, primarily due to a 15% increase in health screenings completed during the quarter.
Net cash used in operations approximated $2.4 million in the first quarter of 2012, primarily attributable to our operating loss, along with an increase in accounts receivable during the first quarter as a result of seasonal payment trends. Capital expenditures totaled $1.0 million in the first quarter of 2012. As of March 31, 2012, cash and cash equivalents totaled $13.5 million, with no outstanding borrowings under the Company's credit facility.