Hooper Holmes (NYSE Amex:HH) today announced financial results for the fourth quarter and year ended December 31, 2009.
Consolidated revenues totaled $45.0 million for the fourth quarter of 2009, representing a 5% revenue decline from the $47.4 million in the fourth quarter of 2008. The Company recorded net income of $3.0 million for the fourth quarter of 2009, or $0.04 per share, compared to net income of $1.2 million, or $0.02 per share in 2008. The fourth quarter 2009 results include a $1.5 million federal tax benefit pertaining to the utilization of fully reserved net operating losses, pursuant to the Business Assistance Act signed into law in the fourth quarter of 2009. Net income for the fourth quarter of 2008 included a reversal of approximately $1.6 million in SG&A incentive accruals, along with a loss of $0.2 million from discontinued operations.
For the year-ended December 31, 2009, consolidated revenues were $182.4 million compared to $198.2 million in 2008. The Company’s net income for the year-ended December 31, 2009 was approximately breakeven, or $0.00 per share, compared to a net loss of $1.9 million, or ($0.03) per share in 2008. The results for the year-ended December 31, 2009 include a non-cash charge of $2.7 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company’s current IT system, along with restructuring and other charges totaling $1.2 million. The 2009 results also include a $1.5 million federal tax benefit pertaining to the utilization of fully reserved net operating losses. The net loss in 2008 included restructuring and other charges of $1.6 million and a $0.3 million loss from discontinued operations.
Fourth quarter 2009 revenues by service line:
- Portamedic revenue declined 3% to $32.3 million in the fourth quarter of 2009 compared to $33.2 million in the fourth quarter of 2008, primarily due to a 4% decline in paramedical exams completed during the quarter.
- Heritage Labs revenue totaled $3.1 million for the fourth quarter of 2009, an increase of 5% compared to the fourth quarter of 2008.
- Hooper Holmes Services (formerly Underwriting Solutions and Infolink) revenue totaled $5.5 million for the fourth quarter of 2009, a decline from $8.4 million in the fourth quarter of 2008, primarily due to reduced demand for the Company’s outsourced underwriting services.
- Health & Wellness revenue totaled $4.1 million for the fourth quarter of 2009, an increase of 39% from $3.0 million in the comparable fourth quarter of 2008.
Cash provided by continuing operations approximated $3.1 million in the fourth quarter of 2009, and $8.7 million for the year-ended December 31, 2009. Capital expenditures totaled $0.7 million in the fourth quarter of 2009 and $3.1 million for the year-ended December 31, 2009. As of December 31, 2009, cash and cash equivalents totaled $16.5 million, with no borrowings under the Company’s credit facility.
Roy H. Bubbs, President and CEO commented, “We are encouraged by the improvements realized in the fourth quarter, and the entire year, including a significant reduction in costs, improved cash flow and positive indications on several new revenue initiatives. However, economic conditions in the insurance industry remain challenging and are expected to negatively impact our revenues and operating results in the first quarter, and possibly throughout 2010.”