Aug 12 2011
Hooper Holmes (NYSE Amex:HH) today announced financial results for the quarter ended June 30, 2011.
“We continue to make progress towards stabilizing revenue and investing in the people and processes we need to return to sustained growth and profitability”
Consolidated revenues totaled $37.9 million for the second quarter of 2011, representing a 7% revenue decline from $40.7 million in the second quarter of 2010. The Company recorded a net loss of $1.6 million for the second quarter of 2011, or ($0.02) per share, compared to net income of $1.2 million, or $0.02 per share, for the second quarter of 2010. Net income for the second quarter of 2010 included a $1.6 million reduction in a previously established reserve for interest and penalties pertaining to unclaimed property.
For the six months ended June 30, 2011, consolidated revenues were $78.5 million compared to $82.6 million in the comparable period of 2010. The Company's net loss for the six months ended June 30, 2011 totaled $1.7 million, or ($0.02) per share, compared to net income of $0.5 million, or $0.01 per share, for the six months ended June 30, 2010. The results for the six months ended June 30, 2010 included a $1.6 million reduction in a previously established reserve for interest and penalties pertaining to unclaimed property.
Second quarter 2011 revenues by service line:
- Portamedic revenue totaled $26.8 million in the second quarter of 2011, a decline of approximately 11% compared to $30.1 million in the second quarter of 2010, primarily due to a 7% decline in paramedical exams completed during the quarter, along with a 3.5% decrease in revenue per exam.
- Heritage Labs revenue totaled $3.1 million for the second quarter of 2011, an increase of approximately 9% compared to the second quarter of 2010, primarily attributable to an increase in demand for lab kit assembly services, along with increased revenue per specimen tested.
- Hooper Holmes Services revenue totaled $5.5 million for the second quarter of 2011, basically flat in comparison to the comparable prior year period, as a result of increased demand for outsourced underwriting services, offset by reduced revenue in our tele-underwriting business.
- Health & Wellness revenue totaled $2.6 million for the second quarter of 2011, a 10% increase from the second quarter of 2010, primarily due to an increase in health screenings completed during the quarter.
Net cash provided by operations approximated $2.6 million in the second quarter of 2011, primarily attributable to a reduction in accounts receivable during the second quarter. Capital expenditures totaled $1.0 million in the second quarter of 2011. As of June 30, 2011, cash and cash equivalents totaled $20.9 million, with no outstanding borrowings under the Company's credit facility.
"We continue to make progress towards stabilizing revenue and investing in the people and processes we need to return to sustained growth and profitability," said Ransom J. Parker, President and CEO of Hooper Holmes. "I am pleased by the revenue growth of our Health & Wellness and Heritage Labs service lines, and I'm confident that the changes we are making in our sales organization will drive improvement in Portamedic as we look ahead to 2012."
"The Board and management are committed to building a foundation in 2011 for the sustained performance our shareholders deserve," commented Larry Ferguson, Chairman of the Board. "Through the first two quarters of the year, our results are consistent with our expectations, and we believe we're on the right course."
Source Hooper Holmes