Form 8-K HOOPER HOLMES INC For: Mar 31
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of
Report: (Date of earliest event reported): March 31, 2015
Hooper Holmes, Inc.
(Exact
name of registrant as specified in its charter)
New York |
1-9972 |
22-1659359 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
560 N. Rogers Road, Olathe, KS 66062
(Address of principal
executive offices) (Zip Code)
Registrant’s telephone number, including area code (913) 764-1045
Not Applicable
(Former names or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 |
Results of Operations and Financial Condition |
On March 31, 2015, Hooper Holmes, Inc. (the “Company”) issued a press release announcing its preliminary operating results and financial condition for the quarter and year ended December 31, 2014. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference. The presentation discussed during the fourth quarter investor call on March 31, 2015 is attached as Exhibit 99.2, which is also incorporated herein by reference.
The information furnished in this section of the Current Report on Form 8-K and Exhibits attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 |
Financial Statements and Exhibits |
(d) Exhibits |
|
99.1 Press Release, dated March 31, 2015. |
|
99.2 Presentation used during the fourth quarter investor conference call on March 31, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Hooper Holmes, Inc. |
|||||
|
|||||
Date: |
March 31, 2015 |
By: |
/s/ Tom Collins |
||
Tom Collins |
|||||
Senior Vice President and |
|||||
Chief Financial Officer |
Exhibit 99.1
Hooper Holmes Announces 2014 Financial Results
OLATHE, Kan.--(BUSINESS WIRE)--March 31, 2015--Hooper Holmes, Inc. (NYSE MKT: HH) today announced financial results for the year ended December 31, 2014.
For the year ended December 31, 2014, consolidated revenues from continuing operations were $28.5 million, an increase of approximately 18% compared to $24.2 million for the full year 2013. The Company’s net loss for the year ended December 31, 2014 totaled $8.5 million, or $(0.12) per share, compared to a net loss of $11.3 million, or $(0.16) per share, for the year ended December 31, 2013.
Results for the year ended December 31, 2014 included $1.9 million of transition costs related to continuing operations, a gain of $1.8 million related to the sale of real estate and a net loss from discontinued operations of $2.6 million.
As of December 31, 2014, cash and cash equivalents totaled $5.2 million, compared to $4.0 million at December 31, 2013, and working capital of $2.9 million, with no borrowings outstanding under the Company’s credit facility.
Consolidated revenues from continuing operations totaled $6.7 million for the fourth quarter of 2014, compared to $9.2 million in the fourth quarter of 2013. The Company recorded a net loss of $1.7 million, or $(0.02) per share, for the fourth quarter of 2014 compared to a net loss of $2.0 million, or $(0.03) per share, for the fourth quarter of 2013.
Commenting on 2014 financial results, Henry E. Dubois, President and CEO of Hooper Holmes, stated: “2014 was a record year for our Health & Wellness business, with the first increase in year-end cash balance since 2010. We grew year over year revenues, delivered positive cash flow and reduced SG&A to our going forward run rate. Our job now is to leverage our assets for growth.”
Conference Call
The Company will host a conference call today, March 31, 2015 at 8:30 a.m. ET to discuss 2014 results. A slide presentation will accompany the conference call and will be available on the Company’s website located at www.hooperholmes.com.
To participate in the conference call, please dial 888-505-4375, or internationally 719-325-2315, conference ID: 6751907 five to ten minutes before the call is scheduled to begin. A live webcast will be hosted on the Company's website located at www.hooperholmes.com. A replay of the conference call will be available from 10:30 a.m. CT (11:30 a.m. ET) on March 31, 2015 until 11:00 p.m. CT (midnight ET) on April 7, 2015, by dialing 877-870-5176, or internationally 858-384-5517. The access code for the replay is 6751907.
About Hooper Holmes
Hooper Holmes, Inc. mobilizes a national network of health professionals to provide on-site health screenings, laboratory testing, risk assessment and sample collection services to wellness and disease management companies, insurance companies, employers, government organizations and academic institutions.
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 realize the expected benefits from our strategic alliance with Clinical Reference Laboratory; our ability to successfully implement our business strategy; our ability to retain and grow our customer base; our ability to recognize operational efficiencies and reduce costs; 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; and the rate of growth in the Health and Wellness market. 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, 2013, filed with the Securities and Exchange Commission on March 31, 2014. 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. |
||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(unaudited; in thousands, except share and per share data) | ||||||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | $ | 6,671 | $ | 9,217 | $ | 28,524 | $ | 24,171 | ||||||||||
Cost of operations | 5,544 | 6,614 | 21,737 | 17,767 | ||||||||||||||
Gross profit | 1,127 | 2,603 | 6,787 | 6,404 | ||||||||||||||
Selling, general and administrative expenses | 2,226 | 4,387 | 14,138 | 17,571 | ||||||||||||||
Gain on sale of real estate | (16 | ) | - | (1,846 | ) | - | ||||||||||||
Restructuring and impairment charges | 55 | 142 | 146 | 1,014 | ||||||||||||||
Operating income (loss) from continuing operations | (1,138 | ) | (1,926 | ) | (5,651 | ) | (12,181 | ) | ||||||||||
Other expense: | ||||||||||||||||||
Interest expense | - | (6 | ) | (1 | ) | (86 | ) | |||||||||||
Interest income | 1 | 1 | 1 | 5 | ||||||||||||||
Other (expense) income, net | (84 | ) | (223 | ) | (239 | ) | (399 | ) | ||||||||||
(83 | ) | (228 | ) | (239 | ) | (480 | ) | |||||||||||
Income (loss) from continuing operations before taxes | (1,221 | ) | (2,154 | ) | (5,890 | ) | (12,661 | ) | ||||||||||
Income tax expense | 8 | 5 | 23 | 19 | ||||||||||||||
Income (loss) from continuing operations | (1,229 | ) | (2,159 | ) | (5,913 | ) | (12,680 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||||
Gain on sale of subsidiaries, net of adjustments | (464 | ) | (327 | ) | 739 | 3,430 | ||||||||||||
Loss from discontinued operations, net of tax | 24 | 487 | (3,301 | ) | (2,025 | ) | ||||||||||||
(Loss) income from discontinued operations | (440 | ) | 160 | (2,562 | ) | 1,405 | ||||||||||||
Net loss | $ | (1,669 | ) | $ | (1,999 | ) | $ | (8,475 | ) | $ | (11,275 | ) | ||||||
Income (loss) per share | ||||||||||||||||||
Continuing operations: | ||||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.18 | ) | ||||||
Diluted | (0.02 | ) | (0.03 | ) | (0.08 | ) | (0.18 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||||
Basic | (0.01 | ) | 0.00 | (0.04 | ) | 0.02 | ||||||||||||
Diluted | (0.01 | ) | 0.00 | (0.04 | ) | 0.02 | ||||||||||||
Net loss: | ||||||||||||||||||
Basic | (0.02 | ) | (0.03 | ) | (0.12 | ) | (0.16 | ) | ||||||||||
Diluted | (0.02 | ) | (0.03 | ) | (0.12 | ) | (0.16 | ) | ||||||||||
Weighted average number of shares: | ||||||||||||||||||
Basic and diluted | 70,866,603 | 70,226,295 | 70,684,452 | 69,965,814 | ||||||||||||||
Hooper Holmes, Inc. |
|||||||||||
Consolidated Balance Sheets | |||||||||||
(unaudited; in thousands) |
|||||||||||
December 31, 2014 |
December 31, 2013 |
||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 5,201 | $ | 3,970 | |||||||
Accounts receivable, net of allowance for doubtful accounts | 3,178 | 8,398 | |||||||||
Inventories | 897 | 596 | |||||||||
Other current assets | 202 | 1,597 | |||||||||
Assets held for sale | - | 2,302 | |||||||||
Total current assets | 9,478 | 16,863 | |||||||||
Property, plant and equipment, net | 3,054 | 2,953 | |||||||||
Other assets | 607 | 1,830 | |||||||||
Total assets | 13,139 | 21,646 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||
Current liabilities: | |||||||||||
Accounts payable | 2,508 | 3,440 | |||||||||
Accrued expenses | 4,083 | 4,036 | |||||||||
Total current liabilities | 6,591 | 7,476 | |||||||||
Other long term liabilities | 1,191 | 870 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Common stock | 2,835 | 2,815 | |||||||||
Additional paid-in capital | 150,747 | 150,235 | |||||||||
Accumulated deficit | (148,154 | ) | (139,679 | ) | |||||||
5,428 | 13,371 | ||||||||||
Less: Treasury stock at cost | (71 | ) | (71 | ) | |||||||
Total stockholders' equity | 5,357 | 13,300 | |||||||||
Total liabilities and stockholders' equity | $ | 13,139 | $ | 21,646 |
CONTACT:
Hooper Holmes
Henry E. Dubois, President and CEO,
913-764-1045
or
Investors:
S.M. Berger & Company
Andrew
Berger, 216-464-6400
Exhibit 99.2
Hooper Holmes, Inc. March 31, 2015 Earnings Presentation Speakers: Henry Dubois, Chief Executive Officer Tom Collins, Chief Financial Officer 1
Safe Harbor Statement 2 The presentation contains forward-looking statements concerning plans, objectives, goals, strategies, future events or performances, which are not statements of historical fact. The forward-looking statements contained in this release reflect our current beliefs and expectations. Actual results or performance may differ materially from what is expressed in the forward-looking statements. You are referred to the documents filed by us with the SEC, specifically reports on Form 10-K and Form 10- Q including risk factors that could cause actual results to differ from forward-looking statements. These reports are available at www.sec.gov. This presentation should be used in conjunction with the earnings call dated March 31, 2015. This presentation contains information from third-party sources, including data from studies conducted by others and market data and industry forecasts obtained from industry publication. Although Hooper Holmes, Inc. believes that such information is reliable, Hooper Holmes, Inc. has not independently verified any of this information and Hooper Holmes, Inc. does not guarantee the accuracy or completeness of this information.2
Summary - Discussed March 2014 2014 Direction: Cash Flow Positive, Health & Wellness Growth H&W is engine for growth Well positioned through service quality, Health Professional network, data capabilities and customer partnerships Clean balance sheet, no debt, access to Capital Drive to product line and business profitability Multiple market and channel opportunities Continued focus on long-term strategy 3
2014 full year revenue grew $4.3mm, or 18%, year-over-year on strong unit growth Units increased 58,000, or 14%, over 2013 Screenings shifted to earlier in the year as employers renewed health plans sooner 1 Over 80% of 2014 revenue came from recurring business 1 Source: 2014 United Benefit Advisors’ Health Plan Survey Key Takeaways 18% Growth 14% Growth # of Screenings Full Year 2014 Results vs. Full Year 2013 4
5 5 SG&A Expense ($mm) Income From Continuing Operations ($mm) 4Q SG&A decreased $2.2mm and YTD SG&A decreased $3.4mm compared to prior year even as screening volume increased Progress continued on SG&A throughout 2014; 4Q run-rate to be carried forward into 2015 Income from continuing operations improved 53% year-over-year inclusive of the costs associated with transforming the business to focus on Health & Wellness Key Takeaways 30% Improvement Ex. Transition Full Year 2014 Results vs. Full Year 2013 – continued 2013 2014 $17.6 $14.1 5
2014 Review – Turning The Focus To Health & Wellness First Half 2014 Consolidated operations and technology infrastructure in Olathe, Kansas Teamwork with channel partners - exploring new channels, refining offerings 36% more screenings and 44% revenue increase year-over-year Including higher margin from Clinical Research Organizations due to protocol requirementsSecond Half 2014 Closed strategic Clinical Reference Laboratory (CRL) alliance which brings new capabilities, capital from sale of Lab and Services business to CRL Closed sale of Basking Ridge, New Jersey real estate Increased year-over-year revenue Customers advanced screenings from 4Q to 3Q Finalized exit from life insurance business Continued focus on building $100mm revenue business over next four to five years 6
2015 Initiatives 7 Focus on
growth Expanding our wellness customer base Additional focus on clinical
research market Mobile application roll out Health Professional network
2015 Initiatives – Focus On Clinical Research Market 8 Hooper well positioned to meet key needs of Clinical Research Organizations Highly trained sample collection Extensive process management skills Development of study protocols to meet research needs Fast and accurate communication to study participants & partners Nationwide network of Health Professionals 8
2015 Initiatives – Mobile Application Health Professionals access the mobile screening app through wireless tablets Fully customizable for screenings of all types Increases revenue opportunities as some partners and customers require electronic data capture only 9 Use of mobile application drives efficiency and quality in data collection leading to Data entry and consent form savings Fewer data capture and entry errors Immediate data availability 9
2015 Initiatives – Health Professional Network Continue to increase Health Professional loyalty and nationwide network size through: Targeted recruitment and outreach Expansion focused on network size and quality HP network mirrors the population density of the United States 10
11 Strategy Objectives p Continued growth in H&W and Clinical Trials screenings Operational and technology improvements that support all service offerings Explore opportunities for new product offerings and to add new capabilities Financials Objectives Generate positive operating cash flow for full year 2015 SG&A run rate for full year similar to what was delivered in 4Q 2014 Little to no Discontinued Operations activity Profitable growth 2015 Objectives and Outlook Growth Outlook Per Employee Benefit Research Institute, 36% of employers expect to add wellness programs in 2015 Strong sales pipeline leading to expansion of wellness customer base Additional focus on Clinical Trials opportunities
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Middlefield Canadian Income PCC: Net Asset Value(s)
- Lido Advisors' Greg Kushner, Alexandra Browne, and Michael Karsa Recognized Among Forbes' Top Wealth Advisors
- NorthEast Community Bancorp, Inc. Reports Results for the Three Months Ended March 31, 2024
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!