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Hooper Holmes Announces Third Quarter 2017 Financial Results

November 9, 2017 at 8:00 AM EST

OLATHE, Kan., Nov. 09, 2017 (GLOBE NEWSWIRE) -- Hooper Holmes, Inc. (OTCQX:HPHW) today announced third quarter 2017 financial results.

"Third quarter revenue represents a 44 percent improvement compared to the third quarter of 2016, reflecting the benefits of our merger with Provant Health Solutions. Year-to-date we have implemented over $7 million in annualized synergy savings from the merger. During the third quarter our year-to-date, annualized new sales increased to $14 million on a run-rate basis, reflecting continued demand for our services," commented Henry Dubois, Chief Executive Officer of Hooper Holmes.

"We are experiencing an exceptionally strong busy season and expect positive adjusted EBITDA of approximately $4 million in the fourth quarter as we recognize merger synergy cost savings. Although our third quarter revenue increased on a year-over-year basis, the recent hurricanes, wildfires and other factors negatively affected our results.  Given this shortfall, we are prudently adjusting our revenue guidance to a range of $51 to $54 million for the last nine months of 2017, reflecting our expectation of between $26 and $29 million in fourth quarter revenue.  We project break-even adjusted EBITDA for the last nine months of 2017, and we continue to project over $5 million in adjusted EBITDA for the full year 2018,” continued Mr. Dubois.

Hooper Holmes’ revenues totaled $14 million for the third quarter of 2017, an increase of 58 percent compared to the second quarter of 2017.  Adjusted EBITDA for the third quarter 2017 was a loss of $1.5 million, a sequential improvement of 32 percent compared to a loss of $2.2 million in the second quarter of 2017.

Conference Call

The Company will host a conference call today, Thursday, November 9, 2017, at 7:30 a.m. CT (8:30 a.m. ET) to discuss its third quarter 2017 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 888-394-8218, or internationally 323-701-0225,  conference ID: 7881712, 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 16, 2017, by dialing 844-512-2921, or internationally 412-317-6671.  The access code for the replay is 7881712. 

Company Profile

Hooper Holmes, Inc. is a leader in workplace wellness and clinical research support services. The Company 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. Provant, a wholly-owned subsidiary of Hooper Holmes, Inc., is a leader in comprehensive workplace well-being solutions with a growing, global presence. Provant partners with employers and brokers to improve member health and productivity and support healthcare cost management. Provant touches millions of lives by delivering customized well-being strategies and services on-site, telephonically and digitally, utilizing advanced data management technology.

For further information:

Hooper Holmes
Henry E. Dubois
CEO
(913) 764-1045

Investors: Andrew Berger
S.M. Berger & Company
(216) 464-6400

Investors: Scott Gordon
CORE IR
(516) 222-2560

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 in this press release 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, 2016, as the same may be updated from time-to-time in subsequent filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release 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, this press release uses the non-GAAP performance measure Adjusted EBITDA.  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 INC.                  
CONSOLIDATED STATEMENTS OF OPERATIONS                  
(unaudited; in thousands, except share and per share data)                  
                     
                     
                     
          Three months ended September 30,   Nine months ended September 30,  
      2017   2016   2017   2016  
                     
Revenues   $   14,018     $   9,750     $   30,501     $   24,634    
Cost of operations       10,922         7,282         24,036         18,941    
  Gross profit       3,096         2,468         6,465         5,693    
Selling, general and administrative expenses       7,330         3,586         15,982         11,138    
Transaction costs       440         50         2,218         379    
  Operating loss from continuing operations       (4,674 )       (1,168 )       (11,735 )       (5,824 )  
Interest expense       746         878         2,207         2,678    
Other income       -         -         -         (887 )  
  Loss from continuing operations before taxes        (5,420 )       (2,046 )       (13,942 )       (7,615 )  
Income tax expense       5         5         22         15    
  Loss from continuing operations        (5,425 )       (2,051 )       (13,964 )       (7,630 )  
                     
Discontinued operations:                  
  Gain (loss) from discontinued operations       15         (1 )       149         (310 )  
Net loss   $   (5,410 )   $   (2,052 )   $   (13,815 )   $   (7,940 )  
                     
Reconciliation of GAAP results to Non-GAAP results                  
  Interest expense   $   498     $   243     $   1,063     $   681    
  Other debt related costs included in interest expense       248         635         1,144         1,997    
  Income tax expense       5         5         22         15    
  Depreciation and amortization       1,108         682         2,605         2,090    
  Share-based compensation expense       443         78         605         548    
  Severance costs       491         277         700         277    
  Stock payments in connection with debt amendments       -         -         -         50    
  Transaction costs       440         50         2,218         379    
  Transition costs       387         1         415         57    
  Lease and legal settlements       260         -         309         -    
  Portamedic contingent liability       -         -         -         150    
  Write-off of SWK Warrant #2       -         -         -         (887 )  
Adjusted (Non-GAAP) EBITDA   $   (1,530 )   $   (81 )   $   (4,734 )   $   (2,583 )  
                     
Adjusted EBITDA for third quarter 2017 was ($1.5 million) compared to ($0.1 million) for the third quarter of 2016. The above schedule is a description of adjustments made to net loss.  
 
                     
Income (loss) per share                  
  Continuing operations:                  
    Basic   $   (0.21 )   $   (0.22 )   $   (0.72 )   $   (0.89 )  
    Diluted       (0.21 )       (0.22 )       (0.72 )       (0.89 )  
  Discontinued operations:                  
    Basic       0.00         (0.00 )       0.01         (0.04 )  
    Diluted       0.00         (0.00 )       0.01         (0.04 )  
  Net loss:                  
    Basic       (0.21 )       (0.22 )       (0.71 )       (0.93 )  
    Diluted       (0.21 )       (0.22 )       (0.71 )       (0.93 )  
                     
Weighted average number of shares:                   
  Basic and diluted     26,151,194       9,149,418       19,490,112       8,604,846    
                     

 

             
Hooper Holmes, Inc.            
Consolidated Balance Sheets              
(in thousands)              
                   
            September 30, 2017   December 31, 2016  
ASSETS       (unaudited)      
Current assets:              
    Cash and cash equivalents     $   1,590     $   1,866    
  Accounts receivable, net of allowance for doubtful accounts       12,210         4,155    
  Inventories           2,052         1,112    
  Other current assets         1,567         345    
      Total current assets         17,419         7,478    
                   
Property, plant and equipment, net         1,954         1,760    
Intangible assets, net           10,320         4,031    
Goodwill           7,004         633    
Other assets           505         352    
    Total assets           37,202         14,254    
                   
LIABILITIES AND STOCKHOLDERS' DEFICIT          
Current liabilities:              
  Accounts payable           10,899         6,612    
  Accrued expenses           6,319         1,747    
  Short-term debt           12,030         5,821    
  Other current liabilities         4,844         2,621    
  Total current liabilities         34,092         16,801    
                   
Long-term debt           7,723         -    
Other long term liabilities         298         317    
                   
Commitments and contingencies            
                   
Stockholders' deficit:              
  Common stock           1,071         404    
  Additional paid-in capital         177,185         166,084    
  Accumulated deficit         (183,167 )       (169,352 )  
  Total stockholders' deficit         (4,911 )       (2,864 )  
    Total liabilities and stockholders' deficit   $   37,202     $   14,254    
                   


 

Source: Hooper Holmes, Inc.