Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - HOOPER HOLMES INC | q32016hhearningspresenta.htm |
| 8-K - 8-K - HOOPER HOLMES INC | hh8-kreq32016earningsrelea.htm |
Hooper Holmes Confidential
News Release
For further information:
Hooper Holmes
Henry E. Dubois
President and CEO
(913) 764-1045
Investors: Andrew Berger
S.M. Berger & Company
(216) 464-6400
Hooper Holmes Announces Third Quarter 2016 Financial Results
OLATHE, Kan., Thursday, November 10, 2016 -- Hooper Holmes, Inc. (NYSE MKT:HH) today
announced financial results for the quarter ended September 30, 2016.
Consolidated revenues totaled $9.75 million for the third quarter of 2016, an increase of 5.2%
compared to the third quarter of 2015. The Company recorded a net loss of $2.1 million for the
third quarter of 2016, which represents an improvement of 3.1% versus the third quarter of 2015.
Adjusted EBITDA for the third quarter 2016 was a loss of $81,000, a significant improvement
compared to the third quarter 2015.
Gross profit for the 2016 third quarter increased to $2.5 million, a 15.9% improvement compared
to the same period in 2015. Selling, general and administrative expenses for the three month
period ended September 30, 2016, totaled $3.6 million, a decrease of 4.1% compared to the third
quarter of 2015.
Henry Dubois, President and CEO of Hooper Holmes commented, "Gross profit and adjusted
EBITDA improved for the third consecutive quarter. While we have experienced a longer than
usual lead time in ramping up revenue from new contracts, revenues have increased 8.9% on a
year-to-date basis, compared to 2015. As top line revenue increases, along with better gross and
operating margins, we expect to be generating cash flows from operations."
Mr. Dubois continued, "Revenue from our top 10 Channel Partners and Clinical Research
customers grew 25% in the 2016 third quarter compared to the 2015 third quarter, and 18% year-
to-date on a year-over-year basis. Revenue from our top 10 Direct customers grew 17%
compared to the 2015 third quarter. As a result of these trends our business in the fourth quarter
2016 is off to a good start and should compare favorably to the fourth quarter 2015. We believe
this gives us a solid base on which to grow as we continue to execute our plans to improve
financial performance. As 2017 begins we expect to see continued year-over-year
improvements."
Hooper Holmes Confidential
2
Conference Call
The Company will host a conference call today, Thursday, November 10, 2016, at 7:30 a.m. CT
(8:30 a.m. ET) to discuss its third quarter 2016 financial results. A slide presentation will
accompany the conference call and is available on the Company’s website located at
www.hooperholmes.com.
To participate in the conference call, please dial 888-438-5493 or internationally 1-719-457-
2651, conference ID: 5250866, five to ten minutes before the call is scheduled to begin. A live
webcast will be hosted on the Company's website located at www.hooperholmes.com. A replay
of the conference call will be available through November 17, 2016, by dialing 844-512-2921, or
internationally 1-412-317-6671. The access code for the replay is 5250866.
About Hooper Holmes
Hooper Holmes mobilizes a national network of health professionals to provide on-site health
screenings, laboratory testing, risk assessment and sample collection services to wellness and
disease management companies, employers and brokers, government organizations and
academic institutions nationwide. Under the Accountable Health Solutions brand, the Company
combines smart technology, healthcare and behavior change expertise to offer comprehensive
health and wellness programs that improve health, increase efficiencies and reduce healthcare
delivery costs.
More information is available at hooperholmes.com and at accountablehealthsolutions.com.
This press release contains 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 measures EBITDA and 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.
Hooper Holmes Confidential
3
Hooper Holmes, Inc.
Consolidated Balance Sheets
(in thousands)
September 30, 2016 December 31, 2015
ASSETS (unaudited)
Current assets:
Cash and cash equivalents 825$ 2,035$
Accounts receivable, net of allowance for doubtful accounts 7,403 5,565
Inventories 1,481 567
Other current assets 431 331
Total current assets 10,140 8,498
Property, plant and equipment, net 1,939 2,771
Intangible assets, net 4,356 5,331
Goodwill 633 633
Other assets 394 450
Total assets 17,462 17,683
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable 5,555 5,339
Accrued expenses 2,526 2,313
Short-term debt 6,924 5,330
Other current liabilities 2,591 2,873
Total current liabilities 17,596 15,855
Other long term liabilities 444 1,611
Commitments and contingencies
Stockholders' (deficit) equity:
Common stock 402 3,121
Additional paid-in capital 165,988 156,195
Accumulated deficit (166,968) (159,028)
(578) 288
Less: Treasury stock at cost - (71)
Total stockholders' (deficit) equity (578) 217
Total liabilities and stockholders' (deficit) equity 17,462$ 17,683$
Hooper Holmes Confidential
4
HOOPER HOLMES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except share and per share data)
2016 2015 2016 2015
Revenues 9,750$ 9,272$ 24,634$ 22,615$
Cost of operations 7,282 7,143 18,941 18,060
Gross profit 2,468 2,129 5,693 4,555
Selling, general and administrative expenses 3,586 3,740 11,138 10,212
Transaction costs 50 57 379 737
Operating loss from continuing operations (1,168) (1,668) (5,824) (6,394)
Interest expense, net 878 388 2,678 1,097
Other income (0) - (887) -
Loss from continuing operations before taxes (2,046) (2,056) (7,615) (7,491)
Income tax expense 5 5 15 15
Loss from continuing operations (2,051) (2,061) (7,630) (7,506)
Discontinued operations:
Loss from discontinued operations (1) (57) (310) (82)
Net loss (2,052)$ (2,118)$ (7,940)$ (7,588)$
Reconciliation of GAAP results to Non-GAAP results
Interest expense 243$ 208$ 681$ 366$
Other debt related costs included in interest expense 635 180 1,997 731
Income tax expense 5 5 15 15
Depreciation and amortization 682 672 2,090 1,546
Share-based compensation expense 78 167 548 360
Severance costs 277 - 277 -
Stock payments in connection with debt amendments - - 50 -
Transaction costs 50 57 379 737
Transition costs 1 247 57 505
Portamedic contingent liability - 168 150 168
Write-off of SWK Warrant #2 - - (887) -
Adjusted (Non-GAAP) EBITDA (81)$ (414)$ (2,583)$ (3,160)$
Income (loss) per share
Continuing operations:
Basic (0.22)$ (0.40)$ (0.89)$ (1.49)$
Diluted (0.22) (0.40) (0.89) (1.49)
Discontinued operations:
Basic (0.00) (0.01) (0.04) (0.02)
Diluted (0.00) (0.01) (0.04) (0.02)
Net loss:
Basic (0.22) (0.41) (0.93) (1.51)
Diluted (0.22) (0.41) (0.93) (1.51)
Weighted average number of shares:
Basic and diluted 9,149,418 5,185,986 8,604,846 5,026,095
Three months ended September 30, Nine months ended September 30,
Adjusted EBITDA for third quarter 2016 was ($0.1 million), compared to ($0.4 million) in the third quarter of 2015. The above schedule is a description of adjustments
made to net loss.