Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - HOOPER HOLMES INC | q32016pressreleasevfinal.htm |
| 8-K - 8-K - HOOPER HOLMES INC | hh8-kreq32016earningsrelea.htm |
Q3 2016 Earnings
Presentation
November, 2016
Presented By: Henry Dubois, Chief Executive Officer
Steven Balthazor, Chief Financial Officer
(NYSE Mkt: HH)
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Safe Harbor Statement
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This presentation may contain forward-looking statements within the meaning of the federal securities
laws. Forward-looking statements may generally be identified by the use of words such as "anticipate,"
"believe," "expect," "intends," "plan," and "will" or, in each case, their negative, and other variations or
comparable terminology. These forward-looking statements include all statements other than historical
facts. Any forward-looking statement made by management during this call is not a guarantee of future
performance, and actual results may differ materially from those expressed in or suggested by the forward-
looking statements, as a result of various factors, including, without limitation the factors discussed in the
“Risk Factors” section of the company’s Annual Report on Form 10-K for the year ended December 31,
2015, as the same may be updated from time-to-time in subsequent filings with the Securities and
Exchange Commission. Any forward-looking statement made by management on this call speaks only as of
the date hereof, and the Company has no obligation, and does not intend, to update any forward-looking
statements after the date hereof, except as required by federal securities laws. In addition, management
uses the non-GAAP performance measure Adjusted EBITDA on this call. You can find a reconciliation of
such measures to their nearest GAAP equivalent in the Company’s earnings release, which is available on
our website.
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Q3 2016 HIGHLIGHTS
$9.75mm Health & Wellness revenue. YTD Revenue increased 9% compared to 2015
̶ Adjusted EBITDA near break-even
Higher percentage of Q3 revenues from top Channel Partner and Clinical customers
Longer lead time from agreement in principle to contracting for new large customers delays
revenue timing
Expecting full year revenue growth of ~12% growth over 2015
Building Long Term Growth
Gross Margin (%) Revenue($000’s) Adjusted EBITDA ($000’s)
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Improved Q3 2016 Operating Performance
Adjusted EBITDA ($000’s) 80% Improvement Q3 2015 - 2016
Q3 2015 Q3 2016
Net Loss ($2,118) ($2,052)
Interest expense $208 $243
Other Debt related costs in Int exp $180 $635
Income taxes $5 $5
Depreciation & amortization $672 $682
Share-based compensation $167 $78
Non recurring Costs $0 $277
Transaction Costs $57 $50
Transition Costs $247 $1
Portamedic contigent liability $168 $0
Adjusted EBITDA ($414) ($81)
SG&A (% of Revenue)
Adjusted EBITDA ($000’s)
Gross Margin ($000’s)
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Growth in core business Key Takeaways
Core Customer Growth in Q3 2016
R
ev
en
u
e
C
la
ss
if
ic
atio
n
b
y
sal
e
s
segme
n
ts
Core business solid and
growing
Growth in Channel Partners
revenue reflects strength of
our screening services
Direct sales channel reflects
customers who contract
directly with us for one or
more services. These
contracts are typically multi-
year commitments
Clinical research organizations
contracts are typically long
term in nature
Biometric screenings sold
through all sales channels
Flu shots sold through both
Direct and Channel Partner
sales channels
Revenue Distribution
+25.2%
+16.7%
Building Competitive Advantage
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New Screening services
exceed expectations
Upgraded
Wellness
Platform
Integrated flu shots and
cotinine fingerstick tests
with wellness screenings
Updated online scheduler
Enhanced Wellness Support
NowSM onsite health
coaching
New capabilities to help
members learn, change
behavior and improve health
Assigns personal health tracks
based on individual risk
New, dynamic content to
drive actions
Increased
HP Network
utilization
Leverage health professionals to
deliver “teachable moment” result
Boost health coaching enrollment
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2017 Outlook Levers for Growth
Improved Operating Performance
Compared to Q3 2015:
Building Long-Term Growth
Creating Value for Shareholders
• Gross margin improved 16%
• SG&A decreased 4.1%
• Adjusted EBITDA improved 80%
• Higher percentage of Q3 revenues from top
Channel Partner and Clinical customers
• New customers revenue taking longer to
ramp up, will add to base
• Robust demand for integrated vaccinations
• Wellness platform enhancements
• Expanding Health Professional network
utilization
• Scalable delivery model, national network
• Proven portal, incentive, engagement and
rewards programs
• Right coaching resources to improve health
outcomes
• Targeting 10-15% revenue growth for
the full year
• Improved financial performance