RADNOR, Pa., Aug. 13, 2007 (PRIME NEWSWIRE) -- Health Benefits Direct Corporation (OTCBB:HBDT), a leading technology innovator in the direct marketing and distribution of a wide range of health and life insurance and related products for individuals and families, today announced its results of operations for the second quarter ended June 30, 2007.
Second Quarter 2007 and Recent Operational Highlights
-- Revenues increased 98% and net loss decreased 37% compared to
second quarter of 2006;
-- Number of insurance and related products offered via the
interactive online insurance agency increased to 40 from 28 at
March 31, 2007;
-- Patent-pending Insurint(tm) quote engine, launched for use by the
company's contact center sales force, successfully processed
substantially all second quarter sales;
-- PacifiCare Life and Health Insurance Company, a United Healthcare
company, was added to the company's health insurance portal; and
-- New and improved web portal which allows the consumer the option
to shop for insurance without the help of an agent and featuring
the company's one-of-a-kind "abandoned call back" technology was
released today.
Second Quarter 2007 Financial Results
Revenues for the second quarter of 2007 increased 98% to $5,143,393 as compared to $2,591,672 for the second quarter of 2006.
Operating expenses for the second quarter ended June 30, 2007 totaled $7,966,900 as compared to $6,939,318 for the second quarter ended June 30, 2006. The primary factor contributing to the increase in operating expenses was higher lead expense associated with the increased number of licensed agents employed by the company and increased sales activity.
Net loss for the second quarter of 2007 was $(2,707,139), or $(0.08) per basic and diluted share, as compared to a net loss of $(4,264,486), or $(0.15) per basic and diluted share for the second quarter of 2006.
"We're particularly pleased with our strong revenue growth given our internal transition to our new Insurint quoting technology during the second quarter," said Alvin H. Clemens, Chairman and Chief Executive Officer. "We're continuing to build our product portfolio, carrier relationships, agent tools and lead aggregation processes to support and enhance our continuing growth. Our sales force expansion goal is to add net five new sales agents per month for the remainder of this year."
Year-to-date Results
Revenues for the six months ended June 30, 2007 increased 150% to $9,656,408 as compared to $3,859,979 for the six months ended June 30, 2006. Operating expenses for the six months ended June 30, 2007 totaled $15,788,677 as compared to $10,387,106 for the six months ended June 30, 2006. Net loss for the six months ended June 30, 2007 was $(5,975,637), or $(0.19) per basic and diluted share, as compared to a net loss of $(6,276,845), or $(0.23) per basic and diluted share, for the six months ended June 30, 2006.
At June 30, 2007, Health Benefits Direct had a cash balance of $11,037,198, total assets of $20,108,673, total shareholders' equity of $10,018,870 and no long-term debt.
Health Benefits Direct reported a net increase in cash of $8,725,417 for the six months ended June 30, 2007, as compared to a decrease in cash of $(1,466,197) for the six months ended June 30, 2006. During the first quarter of 2007, aggregate gross proceeds of $11.25 million were raised in a private placement of common stock and warrants to a group of accredited investors.
Charles A. Eissa, President and Chief Operating Officer, commented, "We are continually developing our technology to make it easier for agents to get timely and accurate information from carriers, improve our submission efficiency and support increased sales volume. Since implementation in April, we have processed nearly all of our submitted premiums through our proprietary Insurint(tm) quoting platform, demonstrating the efficacy of our technology."
Conference Call and Webcast
Chairman and Chief Executive Officer Alvin H. Clemens, President and Chief Operating Officer Charles A. Eissa and Chief Financial Officer Anthony R. Verdi will hold a conference call with the financial community today at 5:00 p.m. Eastern to review the Company's financial results and provide an update on business developments.
Interested parties may participate in the conference call by dialing 800-257-6607 (303-275-2170 for international callers). When prompted, ask for the "Health Benefits Direct Second Quarter Conference Call." A telephonic replay of the conference call may be accessed approximately two hours after the call through August 20, 2007, by dialing 800-405-2236 (303-590-3000 for international callers). The replay access code is 11094707#.
The conference call will be webcast simultaneously on the Health Benefits Direct website at www.healthbenefitsdirect.com under About Us: Investor Relations: Events and Presentations. The webcast replay will be archived for 12 months.
About Health Benefits Direct Corporation
Health Benefits Direct Corporation is a technologically innovative contact center based insurance agency that operates an interactive online marketplace enabling consumers to shop for, compare, and apply for health and life insurance and related products for individuals and families. Its streamlined Quick-to-Call sales platform, supported by proprietary online technology, dialing applications and tele-application voice signature process, promotes efficiency for consumers purchasing and carriers underwriting insurance products. Through its subsidiary, Insurint(tm) Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates accurate real-time quotes from multiple highly-rated carriers of health and life insurance and related products. Insurint's user-friendly platform enables agents to view and share with proposed insureds detailed comparisons of multiple products, policy brochures and other useful information instantly, resulting in highly competitive application processing platform for agents and consumers. www.healthbenefitsdirect.com
Safe Harbor Statement
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 Health Benefits Direct's productivity measures. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Actual events could differ materially from those reflected in these forward-looking statements, such as if Health Benefits Direct does not continue to grow its rate of submitted premiums to its carrier partners or if changes are made to the company's revenue recognition policies. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Health Benefits Direct undertakes no obligation to update publicly any forward-looking statement.
- financial tables to follow -
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30,
----------- ----------- ------------ -----------
2007 2006 2007 2006
----------- ----------- ------------ -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues $ 5,143,393 $ 2,591,672 $ 9,656,408 $ 3,859,979
Operating
Expenses:
Salaries,
commission and
related taxes 3,821,704 3,706,808 7,915,624 5,538,358
Lead,
advertising
and other
marketing 1,934,069 969,284 3,795,653 1,571,557
Depreciation and
amortization 561,978 770,042 1,113,084 839,313
Rent, utilities,
telephone and
communications 613,713 535,576 1,264,452 787,195
Professional
fees 633,421 419,954 893,728 788,262
Other general and
administrative 402,015 537,654 806,136 862,421
----------- ----------- ------------ -----------
7,966,900 6,939,318 15,788,677 10,387,106
----------- ----------- ------------ -----------
Loss from
operations (2,823,507) (4,347,646) (6,132,269) (6,527,127)
----------- ----------- ------------ -----------
Other income
(expense):
Registration
rights penalty
reversal -- -- -- 60,537
Interest income 123,569 91,304 172,647 203,582
Interest expense (7,201) (8,144) (16,015) (13,837)
----------- ----------- ------------ -----------
Total other
income
(expense) 116,368 83,160 156,632 250,282
----------- ----------- ------------ -----------
Net loss $(2,707,139) $(4,264,486) $(5,975,637) $(6,276,845)
=========== =========== =========== ===========
Net loss per
common share:
Net loss per
common share
- basic and
diluted $ (0.08) $ (0.15) $ (0.19) $ (0.23)
=========== =========== =========== ===========
Weighted average
common shares
outstanding -
basic and
diluted 34,084,273 27,801,123 31,504,662 26,857,374
=========== =========== =========== ===========
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
June 30, December 31,
2007 2006
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 11,037,198 $ 2,311,781
Accounts receivable, less
allowance for doubtful
accounts 1,317,323 2,197,523
Deferred compensation
advances 861,138 684,998
Prepaid expenses 278,961 107,995
Other current assets 41,937 11,011
----------- -----------
Total current assets 13,536,557 5,313,308
Restricted cash 1,150,000 1,150,000
Property and equipment, net of
accumulated depreciation 1,550,578 1,483,411
Intangibles, net of accumulated
amortization 3,542,431 4,108,833
Other assets 329,107 181,900
----------- -----------
Total assets $20,108,673 $12,237,452
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,220,274 $ 1,160,254
Accrued expenses 1,485,217 1,427,628
Due to related parties -- 63,672
Unearned commission advances 7,384,312 5,155,117
----------- -----------
Total current liabilities 10,089,803 7,806,671
----------- -----------
SHAREHOLDERS' EQUITY:
Preferred stock ($.001 par
value; 10,000,000 shares
authorized; no shares issued
and outstanding) -- --
Common stock ($.001 par value;
90,000,000 shares authorized;
34,098,971 and 28,586,471
shares issued and
outstanding 34,099 28,586
Additional paid-in capital 36,440,694 24,479,129
Accumulated deficit (24,241,893) (18,266,258)
Deferred compensation (2,214,030) (1,810,676)
----------- -----------
Total shareholders' equity 10,018,870 4,430,781
----------- -----------
Total liabilities and
shareholders' equity $20,108,673 $12,237,452
=========== ===========
HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended
June 30,
----------------------------
2007 2006
----------- -----------
(Unaudited) (Unaudited)
Cash Flows From Operating
Activities:
Net loss $ (5,975,637) $ (6,276,845)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and amortization 1,113,084 839,313
Stock-based compensation and
consulting 835,688 894,952
Provision for bad debt 620 305
Changes in assets and liabilities:
Accounts receivable 879,580 (74,071)
Deferred compensation advances (176,140) (534,791)
Prepaid expenses (191,441) (228,823)
Other current assets (30,926) (38,077)
Other assets (147,205) (83,851)
Accounts payable 60,020 295,024
Accrued expenses 57,589 705,537
Due to related parties (63,672) (56,516)
Unearned commission advances 2,229,195 744,366
----------- -----------
Net cash used in operating
activities (1,409,245) (3,813,477)
Cash Flows From Investing
Activities:
Purchase of property and
equipment (352,986) (958,340)
Purchase of intangible assets
and capitalization of
software development (260,862) (1,308,924)
----------- -----------
Net cash used in investing
activities (613,848) (2,267,264)
----------- -----------
Cash Flows From Financing
Activities:
Gross proceeds from sales of
common stock 11,250,000 6,450,000
Gross proceeds from exercise
of warrants 393,750 --
Restricted cash in connection
with letters of credit -- (1,150,000)
Placement and other fees paid
in connection with offering (895,240) (285,826)
Payment on notes payable -- (399,630)
----------- -----------
Net cash provided by financing
activities 10,748,510 4,614,544
----------- -----------
Net increase (decrease) in cash 8,725,417 (1,466,197)
Cash - beginning of period 2,311,781 6,433,426
----------- -----------
Cash - end of period $11,037,198 $ 4,967,229
=========== ===========