Hooper Holmes Inc (HH, Financial) filed Quarterly Report for the period ended 2010-09-30.
Hooper Holmes Inc has a market cap of $53.7 million; its shares were traded at around $0.74 with a P/E ratio of 19.4 and P/S ratio of 0.2. HH is in the portfolios of Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
SG&A expenses were $33.3 million in the nine month period ended September 30, 2010, a decline of $5.1 million in comparison to the nine month period ended September 30, 2009. Included in SG&A expense is accelerated depreciation expense (non-cash) of approximately $0.6 million and $2.1 million related to the reduction of the estimated useful life of our current IT systems for the nine month periods ending September 30, 2010 and 2009, respectively. During the nine month period ended September 30, 2010, restructuring charges totaled $0.9 million, consisting primarily of severance costs. Results for the nine month period ended September 30, 2009 included restructuring and other charges totaling $1.1 million, consisting primarily of severance, branch office closure costs and legal and other costs related to the 2009 Board of Directors election proxy contest.
For the nine month period ended September 30, 2010, we incurred a loss from continuing operations of $0.7 million, or $0.01 per share on both a basic and diluted basis, compared to a loss from continuing operations of $3.0 million, or $0.04 per share on both a basic and diluted basis, in the nine month period ended September 30, 2009. Included in income from continuing operations for the nine month period ended September 30, 2010 is a $1.6 million gain representing the reversal of a reserve previously established for interest and penalties associated with a state unclaimed property matter for which the audit period has lapsed.
Consolidated revenues for the three month period ended September 30, 2010 were $40.3 million, a decline of $3.4 million or 7.9% from the prior year period. For the nine month period ended September 30, 2010, our consolidated revenues were $123.0 million compared to $137.4 million in the corresponding period of the prior year period. As explained in greater detail below, similar market forces influenced the revenues and operating results of our service lines throughout the three and nine month periods ended September 30, 2010.
During the third quarter of 2010, Heritage Labs tested 8.2% fewer insurance specimens compared to the prior year period (129,000 in the third quarter of 2010 vs. 141,000 in the third quarter of 2009) representing a revenue decline of approximately $0.05 million, and 7.8% less in the first nine months of 2010 compared to the same period in 2009 (389,000 vs. 422,000) representing a revenue decline of approximately $0.3 million. These revenue decreases were partially offset by an increase in Heritage Labs average revenue per insurance specimen tested in the third quarter of 2010 compared to the prior year period ($15.69 in the third quarter of 2010 vs. $14.77 in the third quarter of 2009), and in the first nine months of 2010 compared to the same period in 2009 ($15.55 in the nine month period ended September 30, 2010 vs. $15.14 in the nine month period ended September 30, 2009).
Consolidated cost of operations amounted to $30.1 million for the third quarter of 2010, compared to $32.3 million for the prior year period. For the nine months ended September 30, 2010, cost of operations was $90.8 million compared to $100.6 million for the nine months ended September 30, 2009. The following table shows cost of operations as a percentage of revenues for the corresponding service lines.
Read the The complete Report
Hooper Holmes Inc has a market cap of $53.7 million; its shares were traded at around $0.74 with a P/E ratio of 19.4 and P/S ratio of 0.2. HH is in the portfolios of Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Gross margin for the third quarter of 2010 was 25.5%, compared to 26.3% in the comparable prior year period, primarily due to a gross margin decline in our Portamedic service line. We reduced our selling, general and administrative (“SG&A”) expenses to $10.6 million for the third quarter of 2010, representing a reduction of $1.3 million, or approximately 10.6% from the prior year period. As detailed in the Portamedic highlights, included in SG&A expense is accelerated depreciation expense of nil and approximately $0.6 million for the third quarter 2010 and 2009, respectively, related to the reduction of the estimated useful life of our current customer service order tracking information technology (“IT”) systems. Our 2010 third quarter results also included restructuring charges of approximately $0.7 million, as compared to 2009 third quarter restructuring and other charges totaling $0.3 million.SG&A expenses were $33.3 million in the nine month period ended September 30, 2010, a decline of $5.1 million in comparison to the nine month period ended September 30, 2009. Included in SG&A expense is accelerated depreciation expense (non-cash) of approximately $0.6 million and $2.1 million related to the reduction of the estimated useful life of our current IT systems for the nine month periods ending September 30, 2010 and 2009, respectively. During the nine month period ended September 30, 2010, restructuring charges totaled $0.9 million, consisting primarily of severance costs. Results for the nine month period ended September 30, 2009 included restructuring and other charges totaling $1.1 million, consisting primarily of severance, branch office closure costs and legal and other costs related to the 2009 Board of Directors election proxy contest.
For the nine month period ended September 30, 2010, we incurred a loss from continuing operations of $0.7 million, or $0.01 per share on both a basic and diluted basis, compared to a loss from continuing operations of $3.0 million, or $0.04 per share on both a basic and diluted basis, in the nine month period ended September 30, 2009. Included in income from continuing operations for the nine month period ended September 30, 2010 is a $1.6 million gain representing the reversal of a reserve previously established for interest and penalties associated with a state unclaimed property matter for which the audit period has lapsed.
Consolidated revenues for the three month period ended September 30, 2010 were $40.3 million, a decline of $3.4 million or 7.9% from the prior year period. For the nine month period ended September 30, 2010, our consolidated revenues were $123.0 million compared to $137.4 million in the corresponding period of the prior year period. As explained in greater detail below, similar market forces influenced the revenues and operating results of our service lines throughout the three and nine month periods ended September 30, 2010.
During the third quarter of 2010, Heritage Labs tested 8.2% fewer insurance specimens compared to the prior year period (129,000 in the third quarter of 2010 vs. 141,000 in the third quarter of 2009) representing a revenue decline of approximately $0.05 million, and 7.8% less in the first nine months of 2010 compared to the same period in 2009 (389,000 vs. 422,000) representing a revenue decline of approximately $0.3 million. These revenue decreases were partially offset by an increase in Heritage Labs average revenue per insurance specimen tested in the third quarter of 2010 compared to the prior year period ($15.69 in the third quarter of 2010 vs. $14.77 in the third quarter of 2009), and in the first nine months of 2010 compared to the same period in 2009 ($15.55 in the nine month period ended September 30, 2010 vs. $15.14 in the nine month period ended September 30, 2009).
Consolidated cost of operations amounted to $30.1 million for the third quarter of 2010, compared to $32.3 million for the prior year period. For the nine months ended September 30, 2010, cost of operations was $90.8 million compared to $100.6 million for the nine months ended September 30, 2009. The following table shows cost of operations as a percentage of revenues for the corresponding service lines.
Read the The complete Report
