| EXHIBIT 99.1
News Release | |
170 Mt. Airy Road | ||
Basking Ridge, NJ 07920 | ||
CONTACT: | ||
Fred Lash | ||
Chief Financial Officer | ||
908-766-5000 | ||
FOR IMMEDIATE RELEASE | ||
Investors: Lauren Levine/Lanie Fladell | ||
Media: Sean Leous | ||
FD Morgen-Walke | ||
212-850-5600 | ||
HOOPER HOLMES REPORTS FIRST QUARTER 2003 FINANCIAL RESULTS
BASKING RIDGE, NJ, April 24, 2003, Hooper Holmes, Inc. (AMEX:HH) today reported financial results for the first quarter ended March 31, 2003.
Total revenues for the quarter grew 13% to $74.9 million from $66.5 million in the first quarter last year, reflecting contributions from the Company’s acquisitions of D&D Associates and Medicals Direct Group plc in 2002.
Revenues for the Health Information Business Unit, comprised of the Company’s Portamedic, Infolink, Heritage Labs and Medicals Direct divisions, were $66.1 million, or 88% of total revenues. Medicals Direct increased its revenues 65% to $3.3 million compared to $2.0 million in the 2002 first quarter, prior to being acquired by Hooper Holmes in August 2002. Revenues for the Diversified Business Unit, comprised of D&D Associates, were $8.7 million, or 12% of total revenues, a 16% improvement over D&D’s $7.5 million in revenue for the first quarter of 2002, prior to being acquired by Hooper Holmes in November 2002.
Net income for the first quarter 2003 was $4.7 million, or $0.07 per diluted share, compared to $5.8 million, or $0.09 per diluted share, reported in the first quarter of 2002. Net income was impacted by lower revenues from the core health information business and increased SG&A expenses related to higher insurance, legal and administrative costs. Additionally, the acquisitions in late 2002, on a comparative basis, added $2.0 million of SG&A.
Commenting on the quarter, Mr. McNamee stated, “The positive effect of acquisitions more than offset the impact of continued softness in life insurance applications on our U.S. health information business. This balance demonstrates the effectiveness of our ongoing efforts to diversify our revenues, a key element of our business plan.”
Mr. McNamee continued, “We are forging ahead, continuing to execute our strategy of leveraging our leading health information business to expand our presence in complementary areas of the life and health insurance industries. As we move further along, we are evaluating those U.S. regions with no-fault automobile insurance programs where IME’s play an important role. Our plan is to be
operating in additional states this year, and we have targeted six opportunities in four states that we are actively pursuing.”
Looking ahead, Mr. McNamee stated, “Based on current information, we expect second quarter 2003 revenues to range between $75 million and $77 million. For the full year 2003, we continue to expect revenues to range between $300 million and $320 million, with earnings growth in the range of 20% to 25% over 2002 earnings, excludinge-Nable charges in 2002.”
Hooper Holmes will host a conference call today to discuss first quarter results at 9:30 a.m. Eastern Time. The call will be broadcast live over the Internet, and is accessible at the Company’s website located athttp://www.hooperholmes.com. In addition, an online archive of the broadcast will be available within two hours of the live call until the next quarterly conference call.
Hooper Holmes, Inc. provides outsourced risk assessment services, including underwriting and claims information to the life, health, automobile, and workers’ compensation insurance industries. The Company provides these health information services through over 275 locations nationwide and in the United Kingdom.
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 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. The Company disclaims any obligation to update these forward-looking statements.
-TABLES TO FOLLOW-
HOOPER HOLMES INC.
2003 CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
Three Months ended March 31, | ||||||||
2003 | 2002 | |||||||
Revenues | $ | 74,850 |
| $ | 66,490 |
| ||
Cost of operations |
| 52,099 |
|
| 45,901 |
| ||
Gross profit |
| 22,751 |
|
| 20,589 |
| ||
Selling, general and administrative expenses |
| 14,949 |
|
| 11,236 |
| ||
Operating income |
| 7,802 |
|
| 9,353 |
| ||
Other income (expense): | ||||||||
Interest expense |
| (60 | ) |
| (29 | ) | ||
Interest income |
| 215 |
|
| 555 |
| ||
Other income, expense, net |
| (326 | ) |
| (190 | ) | ||
| (171 | ) |
| 336 |
| |||
Income before income taxes |
| 7,631 |
|
| 9,689 |
| ||
Income taxes |
| 2,973 |
|
| 3,876 |
| ||
Net income | $ | 4,658 |
| $ | 5,813 |
| ||
Earnings per share: | ||||||||
Basic | $ | 0.07 |
| $ | 0.09 |
| ||
Diluted | $ | 0.07 |
| $ | 0.09 |
| ||
Weighted average number of shares: | ||||||||
Basic |
| 64,744,169 |
|
| 64,871,744 |
| ||
Diluted |
| 66,222,850 |
|
| 67,724,851 |
| ||
-MORE-
HOOPER HOLMES, INC.
CONSOLIDATED BALANCE SHEETS
3/31/2003 | 12/31/2002 | |||||
(unaudited) | (audited) | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 23,242,137 | $ | 23,298,151 | ||
Marketable securities |
| 21,597,437 |
| 22,761,101 | ||
Accounts receivable, net |
| 31,477,879 |
| 27,809,521 | ||
Other current assets |
| 6,340,293 |
| 6,823,818 | ||
Total current assets |
| 82,657,746 |
| 80,692,591 | ||
Property, plant and equipment: |
| 31,055,667 |
| 30,620,147 | ||
Less: Accumulated depreciation and amortization |
| 22,486,277 |
| 21,924,363 | ||
Property, plant and equipment, net |
| 8,569,390 |
| 8,695,784 | ||
Goodwill, net |
| 118,994,353 |
| 117,075,544 | ||
Intangible assets, net |
| 27,924,733 |
| 28,474,439 | ||
Other assets |
| 1,323,529 |
| 1,291,172 | ||
Total assets | $ | 239,469,751 | $ | 236,229,530 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Current maturities of long-term debt | $ | 0 | $ | 172,776 | ||
Accounts payable |
| 10,492,169 |
| 10,436,388 | ||
Accrued expenses: | ||||||
Insurance benefits |
| 29,531 |
| 484,748 | ||
Salaries, wages and fees |
| 1,462,051 |
| 1,816,791 | ||
Payroll and other taxes |
| 441,599 |
| 449,093 | ||
Income taxes payable |
| 4,073,355 |
| 2,703,713 | ||
Other |
| 5,183,775 |
| 5,853,132 | ||
Total current liabilities |
| 21,682,480 |
| 21,916,641 | ||
Long term debt, less current maturities |
| 3,060,668 |
| 3,313,983 | ||
Other long term liabilities |
| 806,195 |
| 806,195 | ||
Deferred income taxes |
| 3,416,349 |
| 3,483,114 | ||
Minority interest |
| 1,113,554 |
| 902,650 | ||
Stockholders’ equity: | ||||||
Common stock, par value $.04 per share; authorized 240,000,000 shares, issued 67,499,074 in 2003 and 2002. |
| 2,699,963 |
| 2,699,963 | ||
Additional paid-in capital |
| 127,962,449 |
| 128,079,363 | ||
Accumulated other comprehensive income |
| 112,813 |
| 160,873 | ||
Retained earnings |
| 99,857,814 |
| 96,009,551 | ||
| 230,633,039 |
| 226,949,750 | |||
Less: Treasury stock at cost (2,802,451 and 2,754,151 shares) |
| 21,242,534 |
| 21,142,803 | ||
Total stockholders’ equity |
| 209,390,505 |
| 205,806,947 | ||
Total liabilities and stockholders’ equity | $ | 239,469,751 | $ | 236,229,530 | ||
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