Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, November 17, 2009
Mon, November 16, 2009 Health Benefits Direct Announces Third Quarter 2009 Financial Results
RADNOR, PA--(Marketwire - November 16, 2009) - Health Benefits Direct Corporation (
During the third quarter, the Company continued its previously announced restructuring activities. As part of these restructuring efforts, in the first quarter of 2009, the Company ceased selling health and life insurance products to individuals and families and disposed of a significant portion of its agency business, which is now classified as discontinued operations in the Company's financial statements.
Third Quarter Highlights
-- Revenues from continuing operations of $1.5 million, compared to $1.4 million in the third quarter of 2008. The increase was due primarily to increased InsPro Technologies (formerly Atiam Technologies LLC) revenues from ASP, maintenance and licensing agreements. -- Operating expenses for continuing operations of $3.7 million, compared to $3.0 million in the third quarter of 2008. The increase was primarily attributable to an increase in InsPro staffing and technology consultants to support current client requirements and growth plans. -- Net loss from continuing operations of $2.2 million, compared to $1.7 million in the third quarter of 2008. This increase is consistent with the Company's strategy to enhance InsPro Technologies' capacity by increasing expenditures for marketing, sales, infrastructure and product development. -- Total net loss from continued and discontinued operations of $1.4 million or ($0.03) per share, compared with total net loss of $1.7 million, or ($0.04) per share in the third quarter of 2008.
"We continue to make progress with our initiatives to further align our operations and cost structure with our promising technology business," said Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer. "We realized an $800,000 net gain from discontinued operations in the third quarter as we continue to reduce expenses that are not essential to our core technology business.
"In conjunction with our plan to continue to invest in our promising subsidiary, InsPro Technologies, we are working on obtaining additional financing through a rights offering of up to $8 million, which will give all of our shareholders the opportunity to participate in an equity investment in the Company on the same economic terms as our private placements in 2008 and 2009," Mr. Verdi concluded.
About Health Benefits Direct Corporation
Through its subsidiary, InsPro Technologies, Health Benefits Direct offers InsPro software, an internet-based marketing and administration system used by Insurance carriers and Third Party Administrators. Through its subsidiary, Insurint Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates real-time quotes from more than 100 health insurance carriers, life insurance carriers and carriers of related insurance products. [ www.healthbenefitsdirect.com ]
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the growth potential of our technology platforms and obtaining additional financing through a rights offering to fund our operations. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Moreover, Health Benefits Direct cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in Health Benefit Direct's most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission and available on Health Benefits Direct's website at [ www.healthbenefitsdirect.com ]. These documents are also available on the Securities and Exchange Commission's website at [ www.sec.gov ]. Health Benefits Direct does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended For the Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2009 2008 2009 2008 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $ 1,475,696 $ 1,426,160 $ 4,733,406 $ 4,120,950 Operating Expenses: Salaries, employee benefits and related taxes 1,805,213 1,587,203 6,151,608 5,156,072 Advertising and other marketing 90,814 6,171 231,923 29,971 Depreciation and amortization 293,696 253,770 859,103 759,285 Rent, utilities, telephone and communications 201,700 149,299 613,017 469,541 Professional fees 942,010 715,080 2,449,555 1,773,352 Other general and administrative 372,011 337,786 1,088,244 1,129,043 ------------ ------------ ------------ ------------ 3,705,444 3,049,309 11,393,450 9,317,264 ------------ ------------ ------------ ------------ Loss from operations (2,229,748) (1,623,149) (6,660,044) (5,196,314) ------------ ------------ ------------ ------------ Gain (loss) from discontinued operations 806,791 (118,548) 423,764 (2,245,592) Other income (expense): Interest income 4,771 14,384 27,082 67,119 Interest expense (28,413) (11,695) (72,449) (27,910) ------------ ------------ ------------ ------------ Total other income (expense) (23,642) 2,689 (45,367) 39,209 ------------ ------------ ------------ ------------ Net loss $ (1,446,599) $ (1,739,008) $ (6,281,647) $ (7,402,697) ============ ============ ============ ============ Net loss per common share - basic and diluted: Loss from operations $ (0.05) $ (0.04) $ (0.16) $ (0.13) Gain (loss) from discontinued operations 0.02 (0.00) 0.01 (0.06) ------------ ------------ ------------ ------------ Net loss per common share - basic and diluted $ (0.03) $ (0.04) $ (0.15) $ (0.19) ============ ============ ============ ============ Weighted average common shares outstanding - basic and diluted 41,279,645 41,354,645 41,279,645 39,248,333 ============ ============ ============ ============ HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, 2009 December 31, 2008 ------------------ ------------------ (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash $ 641,666 $ 1,842,419 Accounts receivable, less allowance for doubtful accounts $3,034 and $0 899,797 461,875 Tax receivable 5,615 31,290 Prepaid expenses 104,819 126,804 Other current assets 11,820 8,461 ------------------ ------------------ Total current assets 1,663,717 2,470,849 Restricted cash 1,150,000 1,150,000 Property and equipment, net of accumulated depreciation of $467,624 and $267,384 846,054 729,881 Intangibles, net of accumulated amortization of $1,616,345 and $1,021,187 1,293,914 1,911,461 Other assets 110,608 110,608 ------------------ ------------------ Total assets $ 5,064,293 $ 6,372,799 ================== ================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Note payable $ 15,016 $ - Accounts payable 780,011 733,128 Accrued expenses 1,062,364 697,256 Current portion of capital lease obligations 123,004 89,297 Due to related parties 40,000 4,315 Deferred revenue 436,128 457,500 Liabilities of discontinued operations 2,305,272 2,238,315 ------------------ ------------------ Total current liabilities 4,761,795 4,219,811 ------------------ ------------------ LONG TERM LIABILITIES: Capital lease obligations 246,057 209,511 ------------------ ------------------ Total long term liabilities 246,057 209,511 ------------------ ------------------ SHAREHOLDERS' EQUITY: Preferred stock ($.001 par value; 10,000,000 shares authorized; Series A convertible preferred stock; 3,437,500 shares authorized, 1,000,000 shares issued and outstanding (liquidation value $10,000,000)) 1,983,984 - Common stock ($.001 par value; 200,000,000 shares authorized; 41,279,645 shares issued and outstanding) 41,279 41,279 Additional paid-in capital 45,691,766 43,281,139 Accumulated deficit (47,660,588) (41,378,941) ------------------ ------------------ Total shareholders' equity 56,441 1,943,477 ------------------ ------------------ Total liabilities and shareholders' equity $ 5,064,293 $ 6,372,799 ================== ================== HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, -------------------------- 2009 2008 ------------ ------------ (Unaudited) (Unaudited) Cash Flows From Operating Activities: Net loss $ (6,281,647) $ (7,402,697) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 859,103 759,285 Stock-based compensation and consulting 450,227 1,571,243 Loss on impairment of property and equipment of discontinued operations 416,764 88,922 Loss on impairment of intangible assets of discontinued operations 1,222,817 295,633 Gain on the disposal of property and equipment of discontinued operations (227,763) 92,374 Provision for bad debt 2,489 63,851 Changes in assets and liabilities: Accounts receivable (440,411) (212,914) Tax receivable 25,675 (31,290) Prepaid expenses 21,985 (55,822) Other current assets (3,359) 11,841 Other assets - 1,722 Accounts payable 46,883 22,462 Accrued expenses 365,109 (397,953) Due to related parties (4,315) (28,500) Deferred revenue (21,372) (149,125) Income tax payable - (157,288) Liabilities of discontinued operations (1,409,421) (2,355,205) ------------ ------------ Net cash used in operating activities (4,977,236) (7,883,461) ------------ ------------ Cash Flows From Investing Activities: Purchase of property and equipment (304,664) (409,352) Proceeds from the sale of property and equipment of discontinued operations 11,495 27,000 Purchase of intangible assets and capitalization of software development - (291,847) ------------ ------------ Net cash used in investing activities (293,169) (674,199) ------------ ------------ Cash Flows From Financing Activities: Gross proceeds from note 32,831 - Payments on note payable (17,816) - Gross proceeds from capital leases 155,055 193,498 Payments on capital leases (84,801) (23,979) Gross proceeds from sales of preferred stock 4,000,000 - Gross proceeds from sales of common stock - 5,000,000 Fees paid in connection with offering (15,617) (70,238) ------------ ------------ Net cash provided by financing activities 4,069,652 5,099,281 ------------ ------------ Net decrease in cash (1,200,753) (3,458,379) Cash - beginning of the year 1,842,419 5,787,585 ------------ ------------ Cash - end of the period $ 641,666 $ 2,329,206 ============ ============
