May 7 2010
Hooper Holmes (NYSE Amex:HH) today announced financial results for the first quarter ended March 31, 2010.
“While the year is off to a challenging start, management is focused on plans to address these challenges. Both the Board of Directors and the management of Hooper Holmes are committed to a goal of 5% profitability.”
Consolidated revenues totaled $41.9 million for the first quarter of 2010, representing a 12% revenue decline from the $47.4 million in the first quarter of 2009. The Company recorded a net loss of $0.7 million for the first quarter of 2010, or a loss of ($0.01) per share, compared to a net loss of $1.8 million, or a loss of ($0.03) per share for the first quarter of 2009. The net loss for the first quarter of 2010 and 2009 includes non-cash charges of $0.5 million and $0.8 million, respectively, attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company's current IT system. In addition, the net loss for the first quarter of 2010 includes $0.1 million of restructuring charges. The net loss for the first quarter of 2009 included $0.2 million of restructuring charges.
First quarter 2010 revenues by service line:
- Portamedic revenue declined 11% to $31.1 million in the first quarter of 2010 compared to $35.0 million in the first quarter of 2009, primarily due to a 10% decline in paramedical exams completed during the quarter.
- Heritage Labs revenue totaled $2.8 million for the first quarter of 2010, a decrease of 13% compared to the first quarter of 2009, primarily attributable to reduced demand for lab testing services and specimen collection kits.
- Hooper Holmes Services revenue totaled $5.4 million for the first quarter of 2010, a 20% decline from $6.8 million in the first quarter of 2009, primarily due to reduced demand for the Company's outsourced underwriting services, along with a decline in the Company's medical records collection services.
- Health & Wellness revenue totaled $2.5 million for the first quarter of 2010, a 6% increase from revenue in the comparable first quarter of 2009.
Net cash provided by operations approximated $1.9 million in the first quarter of 2010. Capital expenditures totaled $0.6 million in the first quarter. As of March 31, 2010, cash and cash equivalents totaled $17.7 million, with no borrowings under the Company's credit facility.
"Our first quarter revenue decline is primarily attributable to the economy and its negative impact on the life insurance industry, and to a lesser extent, poor weather in certain regions of the U.S.," said Roy H. Bubbs, President and CEO of Hooper Holmes. "We are working hard on initiatives to offset the continued challenges the life insurance industry is having on our business. I am pleased with the new programs and services we recently announced and we are optimistic about their future potential. By improving revenues and lowering costs, we expect to be profitable in the second quarter and for the balance of the year."
Larry Ferguson, Chairman of the Board of Hooper Holmes, commented "While the year is off to a challenging start, management is focused on plans to address these challenges. Both the Board of Directors and the management of Hooper Holmes are committed to a goal of 5% profitability."
SOURCE Hooper Holmes