SOURCE: Health Benefits Direct Corporation

Health Benefits Direct Corporation

August 14, 2009 16:43 ET

Health Benefits Direct Announces Second Quarter 2009 Financial Results

RADNOR, PA--(Marketwire - August 14, 2009) - Health Benefits Direct Corporation (OTCBB: HBDT), a leading technology innovator in the marketing, sales and administration of a range of insurance technology products, today announced its financial results for the second quarter ended June 30, 2009.

During the second 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.

Second Quarter Highlights

--  Revenues from continuing operations of $1.5 million, compared to $1.4
    million in the second quarter of 2008, due primarily to increased InsPro
    revenues from consulting, ASP and maintenance agreements.
--  Operating expenses for continuing operations of $3.5 million, compared
    to $3.1 million in the second quarter of 2008, primarily attributable to an
    increase in InsPro Technologies' (formerly Atiam Technologies LLC) staffing
    and technology consultants to support current client requirements, future
    needs and growth plans.
--  Net loss from continuing operations of $2.0 million, compared to $1.7
    million in the second 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.
--  Negotiated a new sublease agreement and recorded an abandoned lease
    accrual of $2.0 million for our Florida office, which is reported in loss
    from discontinued operations.
--  Atiam Technologies renamed to InsPro Technologies.
--  At June 30, 2009, the Company had a cash balance of $2.1 million,
    total assets of $6.6 million and total shareholders' equity of $1.5
    million.
    

"Throughout the second quarter, we made further progress with our restructuring initiatives where our goal is to focus on our technology businesses and reduce expenses," said Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer. "Among our major accomplishments in the second quarter was the successful negotiation of a new sublease for the majority of our Florida office space. This agreement expands a current tenant's sublease to approximately 30,000 out of 50,000 square feet, which we anticipate will significantly mitigate the future cash outflow for the Florida office. This new agreement is effective in the third quarter and continues through February 2011. As a result of this revised sublease we recorded an approximate $2.0 million accrual for our future obligations for the Florida office in the second quarter.

"With the greater portion of our occupancy expenses covered through two subleases and the unreimbursed costs of the Florida and New York offices accounted for, we are now better positioned to focus resources on our promising technology platforms and execute our strategy to maximize our earnings potential and create shareholder value," 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 providing the financial support and resources needed to demonstrate the strength of these growing technology businesses. 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.

- financial tables to follow -

            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS



                                                    June 30,     December
                                                      2009       31, 2008
                                                  -----------  -----------
                                                  (Unaudited)
                  ASSETS

CURRENT ASSETS:
  Cash                                            $ 2,084,769  $ 1,842,419
  Accounts receivable, less allowance for
   doubtful accounts $1,069 and $0                    683,628      461,875
  Tax receivable                                       26,290       31,290
  Prepaid expenses                                    123,433      126,804
  Other current assets                                    885        8,461
                                                  -----------  -----------

    Total current assets                            2,919,005    2,470,849

  Restricted cash                                   1,150,000    1,150,000
  Property and equipment, net of accumulated
   depreciation $377,144 and $267,384                 918,167      729,881
  Intangibles, net of accumulated amortization
   $1,410,496 and $1,021,187                        1,499,763    1,911,461
  Other assets                                        110,608      110,607
                                                  -----------  -----------

    Total assets                                  $ 6,597,543  $ 6,372,798
                                                  ===========  ===========

      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable                                    $    29,351  $         -
  Accounts payable                                    482,830      733,128
  Accrued expenses                                    994,752      697,255
  Current portion of capital lease obligations        128,524       89,297
  Due to related parties                                    -        4,315
  Unearned commission advances                              -            -
  Deferred revenue                                    524,223      457,500
  Liabilities of discontinued operations            2,699,450    2,238,315
                                                  -----------  -----------

    Total current liabilities                       4,859,130    4,219,810
                                                  -----------  -----------

LONG TERM LIABILITIES:
    Deferred tax liability                                  -            -
    Capital lease obligations                         270,350      209,511
                                                  -----------  -----------

    Total long term liabilities                       270,350      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
   $10,000,000))                                    2,038,944            -
  Common stock ($.001 par value; 200,000,000
   shares authorized;
   41,279,645 shares issued and outstanding)           41,279       41,279
  Additional paid-in capital                       45,601,829   43,281,139
  Accumulated deficit                             (46,213,989) (41,378,941)
                                                  -----------  -----------

    Total shareholders' equity                      1,468,063    1,943,477
                                                  -----------  -----------

    Total liabilities and shareholders' equity    $ 6,597,543  $ 6,372,798
                                                  ===========  ===========









            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS




                    For the Three Months Ended   For the Six Months Ended
                             June 30,                    June 30,
                    --------------------------  --------------------------
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------

                    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Revenues            $  1,535,271  $  1,409,467  $  3,257,710  $  2,694,790


Operating Expenses:
  Salaries, employee
   benefits and
   related taxes       1,820,438     1,782,906     4,346,395     3,568,869
  Advertising and
   other marketing        37,384        20,770       141,109        23,800
  Depreciation and
   amortization          287,045       221,030       565,407       505,515
  Rent, utilities,
   telephone and
   communications        205,847       157,247       411,317       320,242
  Professional fees      811,066       573,944     1,507,545     1,058,272
  Other general and
   administrative        381,614       349,465       716,233       791,257
                    ------------  ------------  ------------  ------------

                       3,543,394     3,105,362     7,688,006     6,267,955
                    ------------  ------------  ------------  ------------

Loss from
 operations           (2,008,123)   (1,695,895)   (4,430,296)   (3,573,165)
                    ------------  ------------  ------------  ------------

Gain (loss) from
 discontinued
 operations           (1,559,871)      342,814      (383,027)   (2,127,044)

Other income
 (expense):
  Interest income         10,200        22,229        22,311        52,735
  Interest expense       (23,985)      (11,605)      (44,036)      (16,215)
                    ------------  ------------  ------------  ------------

      Total other
       income
       (expense)         (13,785)       10,624       (21,725)       36,520
                    ------------  ------------  ------------  ------------

Net loss            $ (3,581,779) $ (1,342,457) $ (4,835,048) $ (5,663,689)
                    ============  ============  ============  ============

Net loss per common
 share - basic and
 diluted:
  Loss from
   operations       $      (0.05) $      (0.04) $      (0.11) $      (0.09)
  Gain (loss) from
   discontinued
   operations              (0.04)         0.01         (0.01)        (0.06)
                    ------------  ------------  ------------  ------------
  Net loss per
   common share -
   basic and
   diluted          $      (0.09) $      (0.03) $      (0.12) $      (0.15)
                    ============  ============  ============  ============

Weighted average
 common shares
 outstanding -
 basic and diluted    41,279,645    41,808,004    41,279,645    38,410,827
                    ============  ============  ============  ============






        HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                 For the Six Months Ended
                                                         June 30,
                                                --------------------------
                                                    2009          2008
                                                ------------  ------------
                                                (Unaudited)   (Unaudited)
Cash Flows From Operating Activities:
  Net loss                                      $ (4,835,048) $ (5,663,689)
  Adjustments to reconcile net loss to net cash
   used in operating activities:
    Depreciation and amortization                    565,407       505,784
    Stock-based compensation and consulting          310,691     1,371,632
    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            (10,228)            -
    Provision for bad debt                            16,048        63,850
  Changes in assets and liabilities:
    Accounts receivable                             (237,801)     (433,388)
    Tax receivable                                     5,000       (36,212)
    Deferred compensation advances                         -             -
    Prepaid expenses                                   3,371      (143,720)
    Other current assets                               7,576         9,477
    Other assets                                           -         1,729
    Accounts payable                                (250,298)       96,925
    Accrued expenses                                 297,497      (320,644)
    Sub-tenant security deposit                            -             -
    Due to related parties                            (4,315)      (28,500)
    Unearned commission advances                           -             -
    Deferred revenue                                  66,723      (149,125)
    Income tax payable                                     -      (157,288)
    Liabilities of discontinued operations        (1,168,218)      (49,410)
                                                ------------  ------------

      Net cash used in operating activities       (3,594,014)   (4,548,025)
                                                ------------  ------------

Cash Flows From Investing Activities:
  Purchase of property and equipment                (288,930)     (234,945)
  Proceeds from the sale of property and
   equipment of discontinued operations               11,495             -
  Purchase of intangible assets and
   capitalization of software development                  -      (267,202)
                                                ------------  ------------

      Net cash used in investing activities         (277,435)     (502,147)
                                                ------------  ------------

Cash Flows From Financing Activities:
  Gross proceeds from note                            32,831             -
  Payments on note                                    (3,481)            -
  Gross proceeds from capital leases                 154,025       126,097
  Payments on capital leases                         (53,959)      (12,207)
  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    4,113,799     5,043,652
                                                ------------  ------------

      Net increase (decrease) in cash                242,350        (6,520)

Cash - beginning of the year                       1,842,419     5,787,585
                                                ------------  ------------

Cash - end of the period                        $  2,084,769  $  5,781,065
                                                ============  ============


Contact Information

  • Contact:

    Brandi Piacente
    The Piacente Group
    212-481-2050
    Email Contact