![]() September 2006 EXHIBIT 99.1 |
![]() 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. 2 |
![]() Hooper Holmes ~ Who We Are • #1 provider of health information services for the life and health insurance industry • Leading provider of Independent Medical Examinations (IME) for casualty and property insurance • More than 250 locations in all fifty states and U.K. • Long-standing customer relationships with top the 100 insurers • New leadership team • (AMEX: HH) $38.5 M 12% $281.8 M 88% Health Information Division Claims Evaluation Division 2005 Revenues 3 |
![]() A Look Inside… Health Information Division Claims Evaluation Division MAAS 4 |
![]() Investment Highlights • #1 market position in core businesses • Emerging leader in workers compensation independent medical examinations • International presence • Loyal base of blue-chip clients • Strong balance sheet with no debt • Committed and talented group of employees • Strategic review underway to reduce costs, improve operational performance and build for the future • Opportunity to leverage core skills of providing medical services in growth markets 5 |
![]() An Industry in Transition… • Consolidation • Competition from banks and larger carriers • Downward trends in life insurance rates • Underwriter customers under pressure • Demand for higher value-added products • Reinsurers increasing demand for process effectiveness …Creates Opportunity for HH The Market 6 |
![]() Long-Standing Relationships with Blue-Chip Customers • Retained 42 of top 45 clients over last 25 years • Market leader with approximately 45% of the Portamedic market share in the U.S. • Almost all major U.S. and U.K. life insurance companies are customers 7 |
![]() 1. Identify cost savings and opportunities • Customer focused approach 2. Deliver maximum efficiency across the business • Examine each function within each division • Process improvement, service enhancement, staffing levels, reinvestment criteria • Identify new opportunities to leverage skill set/products 3. Regular updates to shareholders 2006 Strategic Review - Goals 8 |
![]() 2006 Strategic Review - Implementation Q3’07 Q2’07 Q4’07 Q1’07 Q4’06 Q3’06 Q2’06 Phase 3 Phase 2 Phase 1 Update on Q3 Earnings Call Revenue Enhancement Expense Management Growth Investment 20 Week Plan - Underway 9 |
![]() ![]() Phase 1- Expense Management • Align costs with existing levels of revenues to restore operating margins • Make better use of assets (i.e. Portamedic branch offices and branch office personnel) • Complete integration of operations of CED-acquired companies • Enhance operational controls on a Company-wide basis • Enhance information technology platform to generate cost efficiencies • Consolidate regional service centers into a national service center 2006 Strategic Review - Implementation Improving Efficiency 10 |
![]() ![]() Phase 2 - Revenue Enhancement • Seek opportunities for service enhancement and increased flexibility or pricing • Add new services that enable HH to get closer to customers • Augment sales & marketing resources dedicated to growth businesses • Continue to expand the business within the CED’s core customer base • Introduce new products and services 2006 Strategic Review - Implementation Innovating for Critical Customer Need 11 |
![]() ![]() Phase 3 - Growth Investment • Determine an optimal growth strategy based on core capabilities • Screen organic and acquisition opportunities for growth, profitability and risk 2006 Strategic Review - Implementation Innovating for Critical Customer Need 12 |
![]() Health information to reduce underwriting risk Three-to-five-day response time Unmatched geographic coverage Electronic information-gathering Medical history, physician’s statements Full service call center in Kansas City National reference laboratory at 65% capacity FDA approved kit manufacturer Serves 92% of all UK life assurance companies Field examinations and walk-in clinics Unique digital data capture technology Outsourced underwriting Over 270,000 cases per year Health Information Division MAAS 13 |
![]() Services Provided: • Independent Medical Exams • Peer Reviews • Radiology Reviews • Functional Capacity Evaluations • Bill Reviews • National Case Management for IMEs • #2 provider in Independent Medical Examination Market • Diversified Business Unit – 145,000 IMEs (Independent Medical Exams) Claims Evaluation Division Target Markets: Auto No-fault Workers Comp Disability General Liability 14 |
![]() Revitalized Leadership Team 15 |
![]() Financial Highlights |
![]() Revenue $82.0 $84.4 $77.4 $76.5 $76.8 $75.6 $70.0 $72.0 $74.0 $76.0 $78.0 $80.0 $82.0 $84.0 $86.0 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 17 |
![]() Gross Margin % 28.3% 28.1% 23.4% 21.3% 24.1% 24.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 18 |
![]() SG&A Expense * Above amounts exclude goodwill impairment and restructuring charges. REV% 22.7% 21.9% 22.6% 27.3% 25.3% 25.4% $18.6 $18.5 $17.5 $20.9 $19.4 $19.2 $15.0 $16.0 $17.0 $18.0 $19.0 $20.0 $21.0 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 19 |
![]() Operating Income * Above amounts exclude goodwill impairment and restructuring charges. $4.6 $5.2 $0.6 ($0.9) ($4.6) ($0.4) ($5.0) ($3.0) ($1.0) $1.0 $3.0 $5.0 1 EPS $0.04 $0.05 $0.00 ($0.05) ($0.01) ($0.00) 2005 2006 Q1 Q2 Q3 Q4 Q1 Q2 20 |
![]() (in millions) 6/30/06 12/31/05 Cash & Securities $ 4.7 $ 11.7 Working Capital 32.2 33.8 Total Assets $160.6 $ 162.3 Short-Term Borrowings - 1.0 Long-Term Debt - - Shareholders’ Equity 128.1 128.9 Current Ratio 2.0:1 2.0:1 DSOs 51 days 51 days Period Ending Balance Sheet 21 |
![]() Summary • Strong business fundamentals, weak performance • Leading provider of health information services • Strong balance sheet with no debt • New leadership team… • …improving efficiency and… • …Planning for innovation based on customer need 22 |
![]() September 2006 |