BASKING RIDGE, N.J.--(BUSINESS WIRE)-- Hooper Holmes (NYSE Amex:HH) today announced financial results for the three and six months ended June 30, 2009.

Consolidated revenues totaled $46.2 million for the second quarter of 2009 compared to $51.2 million for the second quarter of 2008 and $47.4 million in the first quarter of 2009. The Company recorded a net loss of $0.5 million for the second quarter of 2009, or $(0.01) per share compared to net income of $0.1 million, or $0.00 per share in 2008. The net loss for the second quarter of 2009 includes a non-cash charge of $0.8 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company's current IT system. In addition, the net loss for the second quarter of 2009 includes $0.7 million of restructuring and other charges. The net income for the second quarter 2008 included income from discontinued operations of $0.4 million.

For the six months ended June 30, 2009, consolidated revenues were $93.6 million compared to $103.6 million in the comparable period of 2008. The Company's net loss for the six months ended June 30, 2009 totaled $2.3 million, or $(0.03) per share, compared to a net loss of $0.5 million, or $(0.01) per share in 2008. The results for the six months ended June 30, 2009 include a non-cash charge of $1.6 million attributable to increased depreciation expense resulting from a reduction in the estimated useful life of the Company's current IT system. The 2009 results also include restructuring and other charges totaling $0.9 million. The net loss for the six months ended June 30, 2008 included restructuring and other charges of $1.7 million and $0.5 million of income from discontinued operations.

Revenues by service lines include:

• Portamedic revenue totaled $34.6 million for the second quarter of 2009 compared to $35.0 million for the first quarter of 2009 and $36.4 million in the second quarter of 2008.
• Heritage Labs revenue totaled $3.1 million for the second quarter of 2009 compared to $3.2 million in the first quarter of 2009 and $3.4 million in the second quarter of 2008.
• Hooper Holmes Services (formerly Underwriting Solutions and Infolink) revenue totaled $6.5 million for the second quarter of 2009, a decline from $6.8 million for the first quarter of 2009 and $10.1 million in the second quarter of 2008, primarily due to reduced demand for the Company's outsourced underwriting services.
• Health & Wellness revenue totaled $2.0 million for the second quarter of 2009, a decline from $2.4 million of revenue in the first quarter of 2009 primarily due to seasonality, but an increase of 48% from $1.3 million of revenue in the comparable second quarter of 2008.

Cash provided by continuing operations approximated $3.1 million in the second quarter of 2009. As of June 30, 2009, cash and cash equivalents totaled $12.4 million, with no borrowings under the Company's credit facility.

Roy H. Bubbs, President and Chief Executive Officer of Hooper Holmes, commented, "The downturn in the economy continues to challenge our customers and as a result our revenues continue to be under pressure. However, we continue to diligently reduce costs through a number of initiatives to better align our costs with forecasted revenue levels. As we execute on these cost reductions, we are not losing focus on expanding revenues and gaining market share. We believe as the year progresses and the economy begins to stabilize, we are taking the right steps to achieve profitability."?

Conference Call

The Company will host a conference call, today, August 7, 2009 at 11:00am EDT to discuss second quarter results.

To participate in the conference call, please dial 877-941-2927 or internationally 480-629-9723, conference ID: 4132381 five to ten minutes before the call is scheduled to begin. A live web cast will be hosted on the Company's web site located at www.hooperholmes.com. Listeners may also access a telephone replay of the conference call, available from 2:00 p.m. on August 7, 2009 until midnight on August 14, 2009, by dialing 800-406-7325 or internationally 303-509-3030. The access code for the replay is 4132381.

About Hooper Holmes

Hooper Holmes is a leader in collecting personal health data and transforming it into useful information, enabling customers to take actions that manage or reduce their risks and expenses. As a leading provider of risk assessment services for the insurance industry, Hooper Holmes provides insurers with the widest range of medical exam, data collection, laboratory testing and underwriting services in the industry.

With presence in over 250 markets and a network of thousands of examiners, Hooper Holmes can arrange a medical exam anywhere in the U.S. and deliver the results to its customers. Each year we arrange more medical exams than any other company and process more than three million specimens in our laboratory. We provide a complete service for wellness, disease management, and managed care companies including scheduling support, fulfillment of supplies, blood collection kits, medical screenings, lab testing and data transmission. We underwrite hundreds of thousands of cases annually and complete more than two million telephone interviews.

This press release contains "forward-looking"? statements, as such term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, these forward-looking statements are our ability to successfully implement our business strategy; uncertainty as to our working capital requirements over the next 12 to 24 months; our ability to maintain compliance with the financial covenant in our credit facility; our expectations regarding our operating cash flows; and the rate of life insurance application activity. Additional information about these and other factors that could affect the Company's business is set forth in the Company's annual report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission on March 16, 2009. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events, except as required by law.

HOOPER HOLMES INC.
2009 CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except share and per share data)
				Three Months ended June 30,								Six Months ended June 30,
				2009				2008				2009				2008
Revenues			$	46,212			$	51,217			$	93,647			$	103,596
Cost of operations				33,292				38,230				68,331				76,372
	Gross profit			12,920				12,987				25,316				27,224
Selling, general and administrative expenses				12,661				13,246				26,493				26,582
Restructuring and other charges				690				-				878				1,653
	Operating loss from continuing operations			(431	)			(259	)			(2,055	)			(1,011	)
Other income (expense):
	Interest income			20				43				44				116
	Other expenses, net			(69	)			(56	)			(202	)			(112	)
				(49	)			(13	)			(158	)			4
	Loss from continuing operations before income taxes			(480	)			(272	)			(2,213	)			(1,007	)
Income tax expense (benefit)				21				(12	)			38				(63	)
	Loss from continuing operations		$	(501	)		$	(260	)		$	(2,251	)		$	(944	)
Discontinued operations:
Income from discontinued operations, net of income tax				-				126				-				212
Income (loss) on sale of subsidiary				-				280				(41	)			280
				-				406				(41	)			492
Net (loss) income			$	(501	)		$	146			$	(2,292	)		$	(452	)
Basic and diluted (loss)/earnings per share:
	Continuing operations:
	Basic		$	(0.01	)		$	-			$	(0.03	)		$	(0.01	)
	Diluted		$	(0.01	)		$	-			$	(0.03	)		$	(0.01	)
	Discontinued operations:
	Basic		$	-			$	0.01			$	-			$	0.01
	Diluted		$	-			$	0.01			$	-			$	0.01
	Net loss:
	Basic		$	(0.01	)		$	-			$	(0.03	)		$	(0.01	)
	Diluted		$	(0.01	)		$	-			$	(0.03	)		$	(0.01	)
Weighted average number of shares:
	Basic and diluted			68,684,477				68,647,774				68,679,559				68,641,180

Hooper Holmes, Inc.
Consolidated Balance Sheets
(unaudited; in thousands, except share and per share data)
				June 30, 2009				December 31, 2008
ASSETS
Current assets:
	Cash and cash equivalents		$	12,368			$	11,547
	Accounts receivable, net of allowance for doubtful accounts
	of $2,042 and $3,036 at June 30, 2009 and December 31,
	2008, respectively			23,484				25,366
	Inventories			3,185				2,865
	Income tax receivable			19				31
	Other current assets			1,570				2,325
		Total current assets		40,626				42,134
Property, plant and equipment at cost				45,096				44,736
Less: accumulated depreciation and amortization				31,938				29,395
Property, plant and equipment, net				13,158				15,341
Intangible assets, net				1,140				1,429
Other assets				394				365
		Total assets	$	55,318			$	59,269
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
		Accounts payable	$	5,619			$	6,701
		Accrued expenses		10,147				11,452
		Total current liabilities		15,766				18,153
Other long-term liabilities				772				348
Commitments and Contingencies
Stockholders' equity:
	Common stock, par value $.04 per share; authorized 240,000,000
		shares, issued 68,713,982 and 68,683,982 shares as of
		June 30, 2009 and December 31, 2008, respectively		2,748				2,747
	Additional paid-in capital			147,149				146,846
	Accumulated deficit			(111,046	)			(108,754	)
				38,851				40,839
	Less: Treasury stock at cost, 9,395 shares as of
	June 30, 2009 and December 31, 2008			(71	)			(71	)
	Total stockholders' equity			38,780				40,768
		Total liabilities and stockholders' equity	$	55,318			$	59,269

 

Hooper Holmes

Roy H. Bubbs, 908-766-5000

President and Chief Executive Officer

or

S.M. Berger & Company

Investors: Andrew Berger, 216-464-6400

Source: Hooper Holmes