EX-99.1 2 dex991.htm CONFERENCE PRESENTATION ON SEPTEMBER 20, 2006 Conference presentation on September 20, 2006
September 2006
EXHIBIT 99.1

Certain information contained herein includes information
that is forward-looking. The matters referred to in forward-
looking statements may be affected by the risks and
uncertainties involving the Company’s business. These
forward-looking statements are qualified in the entirety by
cautionary statements contained in the Company’s Securities
and Exchange Commission filings. The Company disclaims
any obligation to update these forward-looking statements.
2

Hooper Holmes ~ Who We Are
•
#1 provider of health
information services for the life
and health insurance industry
•
Leading provider of
Independent Medical
Examinations (IME) for casualty
and property insurance
•
More than 250 locations in all
fifty states and U.K.
•
Long-standing customer
relationships with top the 100
insurers
•
New leadership team
•
(AMEX: HH)
$38.5 M
12%
$281.8 M
88%
Health Information Division
Claims Evaluation Division
2005 Revenues
3

A Look Inside…
Health Information
Division
Claims Evaluation
Division
MAAS
4

Investment Highlights
•
#1 market position in core businesses
•
Emerging leader in workers compensation
independent medical examinations
•
International presence
•
Loyal base of blue-chip clients
•
Strong balance sheet with no debt
•
Committed and talented group of employees
•
Strategic review underway to reduce costs, improve
operational performance and build for the future
•
Opportunity to leverage core skills of providing
medical services in growth markets
5

An Industry in Transition…
•
Consolidation
•
Competition from banks and larger carriers
•
Downward trends in life insurance rates
•
Underwriter customers under pressure
•
Demand for higher value-added products
•
Reinsurers
increasing demand for process effectiveness
…Creates Opportunity for HH
The Market
6

Long-Standing Relationships with
Blue-Chip Customers
•
Retained 42 of top 45 clients over last 25 years
•
Market leader with approximately 45% of the
Portamedic market share in the U.S.
•
Almost all major U.S. and U.K. life insurance
companies are customers
7

1.
Identify cost savings and opportunities
•
Customer focused approach
2.
Deliver maximum efficiency across the business
•
Examine each function within each division
•
Process improvement, service enhancement,
staffing levels, reinvestment criteria
•
Identify new opportunities to leverage skill
set/products
3.
Regular updates to shareholders
2006 Strategic Review -
Goals
8

2006 Strategic Review -
Implementation
Q3’07
Q2’07
Q4’07
Q1’07
Q4’06
Q3’06
Q2’06
Phase 3
Phase 2
Phase 1
Update on Q3
Earnings Call
Revenue
Enhancement
Expense
Management
Growth
Investment
20 Week Plan -
Underway
9

Phase 1-
Expense Management
•
Align costs with existing levels of revenues to restore
operating margins
•
Make better use of assets (i.e. Portamedic branch offices
and branch office personnel)
•
Complete integration of operations of CED-acquired
companies
•
Enhance operational controls on a Company-wide basis
•
Enhance information technology platform to generate cost
efficiencies
•
Consolidate regional service centers into a national service
center
2006 Strategic Review -
Implementation
Improving Efficiency
10

Phase 2 -
Revenue Enhancement
•
Seek opportunities for service enhancement and increased
flexibility or pricing
•
Add new services that enable HH to get closer to customers
•
Augment sales & marketing resources dedicated to growth
businesses
•
Continue to expand the business within the CED’s
core
customer base
•
Introduce new products and services
2006 Strategic Review -
Implementation
Innovating for Critical Customer Need
11

Phase 3 -
Growth Investment
•
Determine an optimal growth strategy based on core
capabilities
•
Screen organic and acquisition opportunities for growth,
profitability and risk
2006 Strategic Review -
Implementation
Innovating for Critical Customer Need
12

Health information to reduce underwriting risk
Three-to-five-day response time
Unmatched geographic coverage
Electronic information-gathering
Medical history, physician’s statements
Full service call center in Kansas City
National reference laboratory at 65% capacity
FDA approved kit manufacturer
Serves 92% of all UK life assurance companies
Field examinations and walk-in clinics
Unique digital data capture technology
Outsourced underwriting
Over 270,000 cases per year
Health Information Division
MAAS
13

Services Provided:
•
Independent Medical Exams
•
Peer Reviews
•
Radiology Reviews
•
Functional Capacity Evaluations
•
Bill Reviews
•
National Case Management for IMEs
•
#2 provider in Independent Medical Examination Market
•
Diversified Business Unit –
145,000 IMEs
(Independent Medical
Exams)
Claims Evaluation Division
Target Markets:  Auto
No-fault
Workers Comp
Disability
General Liability
14

Revitalized Leadership Team
15

Financial
Highlights

Revenue
$82.0
$84.4
$77.4
$76.5
$76.8
$75.6
$70.0
$72.0
$74.0
$76.0
$78.0
$80.0
$82.0
$84.0
$86.0
Q1
Q2
Q3
Q4
Q1
Q2
2005
2006
17

Gross Margin %
28.3%
28.1%
23.4%
21.3%
24.1%
24.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Q1
Q2
Q3
Q4
Q1
Q2
2005
2006
18

SG&A Expense
* Above amounts exclude goodwill impairment and restructuring charges.
REV%
22.7%     21.9%       22.6%    27.3%       25.3%     25.4%
$18.6
$18.5
$17.5
$20.9
$19.4
$19.2
$15.0
$16.0
$17.0
$18.0
$19.0
$20.0
$21.0
Q1
Q2
Q3
Q4
Q1
Q2
2005
2006
19

Operating Income
* Above amounts exclude goodwill impairment and restructuring charges.
$4.6
$5.2
$0.6
($0.9)
($4.6)
($0.4)
($5.0)
($3.0)
($1.0)
$1.0
$3.0
$5.0
1
EPS
$0.04        $0.05         $0.00       ($0.05)      ($0.01)      ($0.00)
2005                                                       2006
Q1                Q2                 Q3                Q4      
Q1                Q2
20

(in millions)
6/30/06
12/31/05
Cash & Securities
$  4.7
$  11.7
Working Capital
32.2
33.8
Total Assets
$160.6
$ 162.3
Short-Term Borrowings
-
1.0
Long-Term Debt
-
-
Shareholders’
Equity
128.1
128.9
Current Ratio
2.0:1
2.0:1
DSOs
51 days
51 days
Period Ending
Balance Sheet
21

Summary
•
Strong business
fundamentals, weak
performance
•
Leading provider of
health information
services
•
Strong balance sheet
with no debt
•
New leadership team…
•
…improving efficiency
and…
•
…Planning for
innovation based on
customer need
22

September 2006