Hooper Holmes Inc Reports Operating Results (10-Q)

Author's Avatar
Aug 10, 2012
Hooper Holmes Inc (HH, Financial) filed Quarterly Report for the period ended 2012-06-30.

Hooper Holmes, Inc. has a market cap of $44.6 million; its shares were traded at around $0.6207 with and P/S ratio of 0.3.

Highlight of Business Operations:

a decrease in average revenue per paramedical examination in the second quarter of 2012 of approximately 1.9% as compared to the second quarter of 2011 ($84.60 in the second quarter of 2012 vs. $86.27 in the second quarter of 2011), and in the six month period ended June 30, 2012, a decrease in average revenue per paramedical examination of approximately 2.2% ($84.07 in the six month period ended June 30, 2012 vs. $85.92 in the six month period ended June 30, 2011).

During the second quarter of 2012, revenue from lab testing (approximately 60% of total Heritage Labs revenue in the second quarter of 2012) decreased 2.1% in comparison to the prior year period. For the six month period ended June 30, 2012, revenue from lab testing decreased 2.1% in comparison to the prior year period. Heritage Labs tested 6.4% fewer specimens compared to the prior year period (117,000 in the second quarter of 2012 vs. 125,000 in the second quarter of 2011), and 6.5% fewer specimens in the first six months of 2012 compared to the same period in 2011 (246,000 vs. 263,000). Heritage Labs average revenue per specimen tested increased in the second quarter of 2012 compared to the prior year period ($16.82 in the second quarter of 2012 vs. $16.13 in the second quarter of 2011), and in the first six months of 2012 compared to the same period in 2011 ($16.77 in the six month period ended June 30, 2012 vs. $16.04 in the six month period ended June 30, 2011). Approximately 59% of this increase in average revenue per specimen tested was due to service price increases, and the remaining increase was the result of increased shipping costs passed on to our customers.

Health Information Services revenue totaled $2.5 million in the second quarter of 2012, a decrease of $0.7 million, or 23.0%, compared to the prior year period, and decreased 16.1% to $5.3 million in the six months ended June 30, 2012 as compared to the prior year period. Revenue from our APS retrieval and PIL decreased 26.0% to $1.9 million in the second quarter of 2012 as compared to the prior year period primarily due to a decrease of 27.3% in the number of units performed during the second quarter 2012 as compared to the prior year period. The decrease in revenue due to the decline in units was offset, to some extent, by a 1.8% increase in the average price per unit in the second quarter 2012 as compared to the prior year period. During the six month period ended June 30, 2012, revenue from our APS retrieval and PIL totaled $4.2 million, a decrease of 18.7% in comparison to the prior year period. The decline in revenue is primarily due to a 20.3% decrease in the number of units performed during the six months ended June 30, 2012. The decrease in revenue due to the decline in units was partially offset by a 2.0% increase in the average price per unit in the six months ended June 30, 2012 as compared to the prior year period. Inspection and Motor Vehicle Report ("MVR") reporting revenue totaled $0.6 million in the second quarter of 2012, a decrease of 10.3% from the prior year period. For the six month period ended June 30, 2012, inspection and MVR reporting revenue declined 4.3% to $1.1 million as compared to the prior year period.

Consumer Services includes our tele-underwriting/interviewing services. Revenues from Consumer Services for the second quarter of 2012 decreased 17.0% to $1.0 million as compared to the prior year period. The decrease in revenue is primarily due to a decline in the number of tele-underwriting/interviewing units completed of 18.7% as compared to the second quarter 2011.The decrease in revenue due to the decline in units was offset, to some extent, by a 2.1% increase in the average price per unit in the second quarter 2012 as compared to the prior year period. For the six month period ended June 30, 2012, revenues decreased 16.4% to $2.1 million as compared to the prior year period. The decrease in revenue is primarily due to a decline in the number of tele-underwriting/interviewing units completed of 17.4% as compared to the six month period ended June 30, 2011. The decrease in revenue due to the decline in units was offset, to some extent, by a 1.2% increase in the average price per unit in the six month period ended June 30, 2012 as compared to the prior year period.

Our consolidated operating loss from continuing operations for the three month period ended June 30, 2012 was $5.5 million, or 15.6% of consolidated revenues, compared to a consolidated operating loss from continuing operations for the three month period ended June 30, 2011 of $1.5 million, or 4.0% of consolidated revenues. For the six month period ended June 30, 2012, our consolidated operating loss from continuing operations was $8.6 million, or 11.6% of consolidated revenues, compared to a consolidated operating loss from continuing operations for the six month period ended June 30, 2011 of $1.5 million, or 1.9% of consolidated revenues.

Read the The complete Report