Hooper Holmes Announces First Quarter 2001 Financial Results

Apr 26, 2001, 01:00 ET from Hooper Homes, Inc.

    BASKING RIDGE, N.J., April 25 /PRNewswire/ -- Hooper Holmes, Inc.
 (Amex:   HH) today reported financial results for the first quarter ended March
 31, 2001.
     For the first quarter ended March 31, 2001, the Company reported revenue
 of $63.6 million, operating income of $7.2 million, and net income of $4.7
 million, or $0.07 per diluted share.  For the first quarter of 2000 the
 Company's revenue was $85.8 million, operating income reached $14.2 million,
 and net income was $7.9 million, or $0.12 per diluted share.  The Company
 stated that the strength of last year's first quarter results include the
 positive contribution to revenues of Triple X, a one-time regulatory amendment
 which affected the life insurance industry in 2000.
     Jim McNamee, Chairman and Chief Executive Officer, stated, "We are pleased
 to report that 2001 is off to a strong start after a difficult year in 2000.
 Sequentially, revenues increased by 5% and our gross and operating margins
 expanded substantially from the fourth quarter of 2000, reflecting ongoing
 efforts to manage our costs and leverage our infrastructure.  In addition, we
 are seeing encouraging signs of steady improvement in the life insurance
 underwriting industry which bodes well for continued revenue and earnings
 growth throughout the year."
     Mr. McNamee added, "We continue to execute our growth strategy of
 strengthening our national presence and maximizing technological advances to
 increase sales and profits.  Our proposed acquisition of Medical Examination
 Services solidifies Hooper Holmes' position in the growing Southeast region,
 while our recent Teledex software licensing agreement with Amica Life
 Insurance is our example of leveraging our proprietary technology.
 Furthermore, our balance sheet remains healthy with $69 million in cash and
 marketable securities and little debt, giving Hooper Holmes the financial
 flexibility necessary to pursue strategic growth opportunities.  We believe
 the successful execution of these strategies will enable us to approach
 revenues of $285 million to $295 million for the current year, with earnings
 per diluted share 17% to 22% above last year's levels."
     Hooper Holmes will host a conference call today to discuss first quarter
 results at 10:00 a.m. Eastern Time.  The call will be broadcast live over the
 Internet, and is accessible at the Company's website located at
 http://www.hooperholmes.com .  In addition, an online archive of the broadcast
 will be available within two hours of the live call.
 
     Hooper Holmes, Inc. provides health information services on insurance
 policy applicants to the life insurance industry.  The Company provides these
 health information services through over 300 locations nationwide.
 
     Certain information contained herein includes information that is forward-
 looking.  The matters referred to in forward-looking statements may be
 affected by the risks and uncertainties involving in the Company's business.
 These forward-looking statements are qualified in the entirety by cautionary
 statements contained in the Company's Securities and Exchange Commission
 filings.
 
 
                       HOOPER HOLMES INC. & SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
               (in thousands, except share and per share amounts)
 
                                                   Three Months Ended March 31,
                                                        2001          2000
 
     Revenues                                         $63,626        $85,772
     Cost of operations                                44,775         59,973
      Gross profit                                     18,851         25,799
     Selling, general and administrative expenses      11,680         11,628
      Operating income                                  7,171         14,171
     Other income (expense)
      Interest expense                                    (64)          (920)
      Interest income                                    1005            643
      Other income, expense, net                          (55)           (39)
                                                          886           (316)
     Income before income taxes                         8,057         13,855
     Income taxes                                       3,379          5,958
     Net income                                        $4,678         $7,897
     Earnings per share:
      Basic                                             $0.07          $0.13
      Diluted                                           $0.07          $0.12
     Weighted average shares outstanding
      Basic                                        65,205,040     60,944,892
      Diluted                                      67,360,817     64,953,758
 
      Note: Per share calculations are adjusted to reflect a two-for-one
           stock split effective April 12, 2000.
 
 
                              Hooper Holmes, Inc.
                          Consolidated Balance Sheets
 
                                                  March 31,      December 31,
                                                     2001            2000
                                                  (unaudited)     (audited)
     ASSETS
     Current Assets:
      Cash and cash equivalents                   $38,660,618    $45,680,471
      Marketable securities                        30,337,050     29,188,309
      Accounts receivable                          32,935,157     28,870,624
      Other current assets                          4,799,740      4,539,330
       Total current assets                       106,732,565    108,278,734
 
     Property, plant and equipment:                27,533,409     27,382,480
      Less: Accumulated depreciation               18,663,175     18,058,073
 
       Net property, plant and equipment            8,870,234      9,324,407
 
     Goodwill, net                                 78,188,139     78,815,845
     Intangible assets, net                        13,128,284     13,865,768
     Other assets                                   5,781,058        751,128
      Total assets                               $212,700,280   $211,035,882
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Note payable                                   $196,836       $196,836
      Accounts payable                              8,501,948      7,402,862
      Accrued expenses:
       Insurance benefits                             269,054        291,408
       Salaries, wages and fees                     1,220,580      2,585,457
       Payroll and other taxes                        302,222        232,348
       Income taxes payable                         4,327,627        902,721
       Other                                        3,235,411      3,362,025
        Total current liabilities                  18,053,678     14,973,657
 
     Long term debt, less current maturities        3,410,836      3,195,295
     Deferred income taxes                          1,670,096      1,708,954
     Minority interest                                 92,506         81,355
 
     Stockholders' equity:
      Common stock, par value $.04 per share; authorized
       240,000,000 shares issued 67,499,074 in 2001,
       and 67,454,174 in 2000                       2,699,963      2,698,167
     Additional paid-in capital                   135,595,465    135,419,195
     Other comprehensive income                       102,175              0
     Retained earnings                             75,198,901     71,009,995
                                                  213,596,504    209,127,357
     Less: Treasury stock at cost (2,615,864
      and 1,993,564 shares)                        24,123,340     18,050,736
      Total stockholders' equity                  189,473,164    191,076,621
 
     Total liabilities and
      stockholders' equity                       $212,700,280   $211,035,882
 
 

SOURCE Hooper Homes, Inc.
    BASKING RIDGE, N.J., April 25 /PRNewswire/ -- Hooper Holmes, Inc.
 (Amex:   HH) today reported financial results for the first quarter ended March
 31, 2001.
     For the first quarter ended March 31, 2001, the Company reported revenue
 of $63.6 million, operating income of $7.2 million, and net income of $4.7
 million, or $0.07 per diluted share.  For the first quarter of 2000 the
 Company's revenue was $85.8 million, operating income reached $14.2 million,
 and net income was $7.9 million, or $0.12 per diluted share.  The Company
 stated that the strength of last year's first quarter results include the
 positive contribution to revenues of Triple X, a one-time regulatory amendment
 which affected the life insurance industry in 2000.
     Jim McNamee, Chairman and Chief Executive Officer, stated, "We are pleased
 to report that 2001 is off to a strong start after a difficult year in 2000.
 Sequentially, revenues increased by 5% and our gross and operating margins
 expanded substantially from the fourth quarter of 2000, reflecting ongoing
 efforts to manage our costs and leverage our infrastructure.  In addition, we
 are seeing encouraging signs of steady improvement in the life insurance
 underwriting industry which bodes well for continued revenue and earnings
 growth throughout the year."
     Mr. McNamee added, "We continue to execute our growth strategy of
 strengthening our national presence and maximizing technological advances to
 increase sales and profits.  Our proposed acquisition of Medical Examination
 Services solidifies Hooper Holmes' position in the growing Southeast region,
 while our recent Teledex software licensing agreement with Amica Life
 Insurance is our example of leveraging our proprietary technology.
 Furthermore, our balance sheet remains healthy with $69 million in cash and
 marketable securities and little debt, giving Hooper Holmes the financial
 flexibility necessary to pursue strategic growth opportunities.  We believe
 the successful execution of these strategies will enable us to approach
 revenues of $285 million to $295 million for the current year, with earnings
 per diluted share 17% to 22% above last year's levels."
     Hooper Holmes will host a conference call today to discuss first quarter
 results at 10:00 a.m. Eastern Time.  The call will be broadcast live over the
 Internet, and is accessible at the Company's website located at
 http://www.hooperholmes.com .  In addition, an online archive of the broadcast
 will be available within two hours of the live call.
 
     Hooper Holmes, Inc. provides health information services on insurance
 policy applicants to the life insurance industry.  The Company provides these
 health information services through over 300 locations nationwide.
 
     Certain information contained herein includes information that is forward-
 looking.  The matters referred to in forward-looking statements may be
 affected by the risks and uncertainties involving in the Company's business.
 These forward-looking statements are qualified in the entirety by cautionary
 statements contained in the Company's Securities and Exchange Commission
 filings.
 
 
                       HOOPER HOLMES INC. & SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
               (in thousands, except share and per share amounts)
 
                                                   Three Months Ended March 31,
                                                        2001          2000
 
     Revenues                                         $63,626        $85,772
     Cost of operations                                44,775         59,973
      Gross profit                                     18,851         25,799
     Selling, general and administrative expenses      11,680         11,628
      Operating income                                  7,171         14,171
     Other income (expense)
      Interest expense                                    (64)          (920)
      Interest income                                    1005            643
      Other income, expense, net                          (55)           (39)
                                                          886           (316)
     Income before income taxes                         8,057         13,855
     Income taxes                                       3,379          5,958
     Net income                                        $4,678         $7,897
     Earnings per share:
      Basic                                             $0.07          $0.13
      Diluted                                           $0.07          $0.12
     Weighted average shares outstanding
      Basic                                        65,205,040     60,944,892
      Diluted                                      67,360,817     64,953,758
 
      Note: Per share calculations are adjusted to reflect a two-for-one
           stock split effective April 12, 2000.
 
 
                              Hooper Holmes, Inc.
                          Consolidated Balance Sheets
 
                                                  March 31,      December 31,
                                                     2001            2000
                                                  (unaudited)     (audited)
     ASSETS
     Current Assets:
      Cash and cash equivalents                   $38,660,618    $45,680,471
      Marketable securities                        30,337,050     29,188,309
      Accounts receivable                          32,935,157     28,870,624
      Other current assets                          4,799,740      4,539,330
       Total current assets                       106,732,565    108,278,734
 
     Property, plant and equipment:                27,533,409     27,382,480
      Less: Accumulated depreciation               18,663,175     18,058,073
 
       Net property, plant and equipment            8,870,234      9,324,407
 
     Goodwill, net                                 78,188,139     78,815,845
     Intangible assets, net                        13,128,284     13,865,768
     Other assets                                   5,781,058        751,128
      Total assets                               $212,700,280   $211,035,882
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Note payable                                   $196,836       $196,836
      Accounts payable                              8,501,948      7,402,862
      Accrued expenses:
       Insurance benefits                             269,054        291,408
       Salaries, wages and fees                     1,220,580      2,585,457
       Payroll and other taxes                        302,222        232,348
       Income taxes payable                         4,327,627        902,721
       Other                                        3,235,411      3,362,025
        Total current liabilities                  18,053,678     14,973,657
 
     Long term debt, less current maturities        3,410,836      3,195,295
     Deferred income taxes                          1,670,096      1,708,954
     Minority interest                                 92,506         81,355
 
     Stockholders' equity:
      Common stock, par value $.04 per share; authorized
       240,000,000 shares issued 67,499,074 in 2001,
       and 67,454,174 in 2000                       2,699,963      2,698,167
     Additional paid-in capital                   135,595,465    135,419,195
     Other comprehensive income                       102,175              0
     Retained earnings                             75,198,901     71,009,995
                                                  213,596,504    209,127,357
     Less: Treasury stock at cost (2,615,864
      and 1,993,564 shares)                        24,123,340     18,050,736
      Total stockholders' equity                  189,473,164    191,076,621
 
     Total liabilities and
      stockholders' equity                       $212,700,280   $211,035,882
 
 SOURCE  Hooper Homes, Inc.