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Hooper Holmes Announces Third Quarter 2016 Financial Results

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OLATHE, Kan., Nov. 10, 2016 (GLOBE NEWSWIRE) -- Hooper Holmes, Inc. (NYSE MKT: HH) today announced financial results for the quarter ended September 30, 2016.

Consolidated revenues totaled $9.75 million for the third quarter of 2016, an increase of 5.2% compared to the third quarter of 2015. The Company recorded a net loss of $2.1 million for the third quarter of 2016, which represents an improvement of 3.1% versus the third quarter of 2015. Adjusted EBITDA for the third quarter 2016 was a loss of $81,000, a significant improvement compared to the third quarter 2015. 

Gross profit for the 2016 third quarter increased to $2.5 million, a 15.9% improvement compared to the same period in 2015. Selling, general and administrative expenses for the three month period ended September 30, 2016, totaled $3.6 million, a decrease of 4.1% compared to the third quarter of 2015. 

Henry Dubois, President and CEO of Hooper Holmes commented, "Gross profit and adjusted EBITDA improved for the third consecutive quarter.  While we have experienced a longer than usual lead time in ramping up revenue from new contracts, revenues have increased 8.9% on a year-to-date basis, compared to 2015. As top line revenue increases, along with better gross and operating margins, we expect to be generating cash flows from operations."

Mr. Dubois continued, "Revenue from our top 10 Channel Partners and Clinical Research customers grew 25% in the 2016 third quarter compared to the 2015 third quarter, and 18% year-to-date on a year-over-year basis. Revenue from our top 10 Direct customers grew 17% compared to the 2015 third quarter. As a result of these trends our business in the fourth quarter 2016 is off to a good start and should compare favorably to the fourth quarter 2015. We believe this gives us a solid base on which to grow as we continue to execute our plans to improve financial performance. As 2017 begins we expect to see continued year-over-year improvements."

Conference Call

The Company will host a conference call today, Thursday, November 10, 2016, at 7:30 a.m. CT (8:30 a.m. ET) to discuss its third quarter 2016 financial results. A slide presentation will accompany the conference call and is available on the Company's website located at www.hooperholmes.com.

To participate in the conference call, please dial 888-438-5493 or internationally 1-719-457-2651, conference ID: 5250866, 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 through November 17, 2016, by dialing 844-512-2921, or internationally 1-412-317-6671.  The access code for the replay is 5250866. 

About Hooper Holmes

Hooper Holmes 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, employers and brokers, government organizations and academic institutions nationwide. Under the Accountable Health Solutions brand, the Company combines smart technology, healthcare and behavior change expertise to offer comprehensive health and wellness programs that improve health, increase efficiencies and reduce healthcare delivery costs.

More information is available at hooperholmes.com and at accountablehealthsolutions.com.

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, and other variations or comparable terminology.  These forward-looking statements include all statements other than historical facts.   Any forward-looking statement made by management during this call is not a guarantee of future performance, and actual results may differ materially from those expressed in or suggested by the forward-looking statements, as a result of various factors, including, without limitation the factors discussed in the "Risk Factors" section of the company's Annual Report on Form 10-K for the year ended December 31, 2015, as the same may be updated from time-to-time in subsequent filings with the Securities and Exchange Commission. Any forward-looking statement made by management on this call speaks only as of the date hereof, and the Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. In addition, management uses the non-GAAP performance measures EBITDA and Adjusted EBITDA on this call.  You can find a reconciliation of such measures to their nearest GAAP equivalent in the Company's earnings release, which is available on our website.

Hooper Holmes, Inc.     
Consolidated Balance Sheets     
(in thousands)      
         
      September 30, 2016 December 31, 2015
ASSETS   (unaudited)  
Current assets:      
 Cash and cash equivalents   $825  $2,035 
 Accounts receivable, net of allowance for doubtful accounts    7,403   5,565 
 Inventories    1,481   567 
 Other current assets   431   331 
  Total current assets   10,140   8,498 
         
Property, plant and equipment, net   1,939   2,771 
Intangible assets, net    4,356   5,331 
Goodwill    633   633 
Other assets    394   450 
  Total assets    17,462   17,683 
         
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY    
Current liabilities:      
 Accounts payable    5,555   5,339 
 Accrued expenses    2,526   2,313 
 Short-term debt    6,924   5,330 
 Other current liabilities   2,591   2,873 
 Total current liabilities   17,596   15,855 
         
Other long term liabilities   444   1,611 
         
Commitments and contingencies     
         
Stockholders' (deficit) equity:     
 Common stock    402   3,121 
 Additional paid-in capital   165,988   156,195 
 Accumulated deficit   (166,968)  (159,028)
       (578)  288 
 Less: Treasury stock at cost   -   (71
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