SOURCE: Health Benefits Direct Corporation

May 15, 2007 16:01 ET

Health Benefits Direct Corporation Announces First Quarter 2007 Financial Results

RADNOR, PA -- (MARKET WIRE) -- May 15, 2007 -- Health Benefits Direct Corporation (OTCBB: HBDT), a leading innovator in the direct marketing and sales of a wide range of health and life insurance products to individuals, today announced its results of operations for the first quarter ended March 31, 2007.

First Quarter 2007 Operational Highlights

--  Number of licensed insurance agents employed by the company increased
    107% to 95 from 46 at March 31, 2006;
--  Number of insurance products offered via the interactive online
    insurance agency increased to 28 from 20 at March 31, 2006;
--  Aggregate gross proceeds of $11.25 million were raised in a private
    placement of common stock and warrants to a group of accredited investors
First Quarter 2007 Financial Results

Revenues for the first quarter of 2007 increased 256% to $4,513,015 as compared to $1,268,307 for the first quarter of 2006.

Operating expenses for the first quarter ended March 31, 2007 totaled $7,821,777 as compared to $3,447,788 for the first quarter ended March 31, 2006. The primary factors contributing to the increase in operating expenses included 1) higher salaries, wages and commissions associated with the increase in employees, 2) higher lead expense associated with the increased number of licensed agents employed by the company, and 3) expenses associated with the substantial increase in operations as compared with the prior year.

Net loss for the first quarter of 2007 was $(3,268,498), or $(0.11) per basic and diluted share, as compared to a net loss of $(2,012,359), or $(0.08) per basic and diluted share for the first quarter of 2006.

At March 31, 2007, Health Benefits Direct had a cash balance of $9,156,487, total assets of $22,456,061, total shareholders' equity of $12,360,631 and no long-term debt.

Alvin H. Clemens, Chairman and Chief Executive Officer of Health Benefits Direct, stated, "Our first quarter was an exciting period for our company. Operationally, we grew our number of licensed insurance agents and products offered to consumers, resulting in a strong revenue increase compared to the same period last year. We also expanded our carrier coverage platform, and with the recent additions of Aetna and UniCare, Health Benefits Direct will offer coverage availability from all five of the largest major medical insurance carriers in the nation. We have reinforced our proprietary online portal technology, one of the most important features of which is our industry-leading abandon callback automation, and we recently expanded our management team to accommodate our ongoing growth and expansion efforts.

"Our financial position is solid following our successful completion of a private placement which raised over $11 million in gross proceeds for working capital purposes. We are approaching positive cash flow from operations, and based on an extremely healthy and growing market for retail healthcare insurance, we expect continuing growth throughout 2007."

Conference Call and Webcast

Executive 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 800-240-4186 (303-262-2143 for international callers). When prompted, ask for the "Health Benefits Direct First Quarter Conference Call." A telephonic replay of the conference call may be accessed approximately two hours after the call through May 22, 2007, by dialing 800-405-2236 (303-590-3000 for international callers). The replay access code is 11089607#.

The conference call will be webcast simultaneously on the Health Benefits Direct website at 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 an insurance agency that operates an interactive online marketplace and contact centers enabling consumers to shop for, compare, and purchase individual health and life insurance and related products for individuals and families. Health Benefits Direct's sales platform combines its proprietary, integrated online technology and dialing application to connect consumers who express an interest in purchasing health or life insurance or related products with its knowledgeable, licensed agents housed in one of its contact center locations. or

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 the company's business strategy and operations. 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 is unable to effectively implement any new carriers or products or maintain its existing carrier relationships or products, or to effectively execute its business strategy and grow its business. 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.


                                                For the Three Months Ended
                                                        March 31,
                                                    2007          2006
                                                ------------  ------------
                                                (Unaudited)   (Unaudited)

Revenues                                        $  4,513,015  $  1,268,307

Operating Expenses:
   Salaries, commission and related taxes          4,093,920     1,831,550
   Lead, advertising and other marketing           1,861,584       602,273
   Depreciation and amortization                     551,106        69,271
   Rent, utilities, telephone and communications     650,739       251,619
   Professional fees                                 260,307       368,308
   Other general and administrative                  404,121       324,767
                                                ------------  ------------

                                                   7,821,777     3,447,788
                                                ------------  ------------

Loss from operations                              (3,308,762)   (2,179,481)
                                                ------------  ------------

Other income (expense):
   Registration rights penalty reversal                    -        60,537
   Interest income                                    49,078       112,278
   Interest expense                                   (8,814)       (5,693)
                                                ------------  ------------

      Total other income (expense)                    40,264       167,122
                                                ------------  ------------

Net loss                                        $ (3,268,498) $ (2,012,359)
                                                ============  ============

Net loss per common share:
   Net loss per common share - basic and
    diluted                                     $      (0.11) $      (0.08)
                                                ============  ============

Weighted average common shares outstanding -
 basic and diluted                                28,896,388    25,903,138
                                                ============  ============

                        CONSOLIDATED BALANCE SHEET
                              March 31, 2007

                                                  March 31,   December 31,
                                                    2007          2006
                                                ------------  ------------

   Cash                                         $  9,156,487  $  2,311,781
   Accounts receivable, less allowance for
    doubtful accounts                              5,574,693     2,197,523
   Deferred compensation advances                    897,083       684,998
   Prepaid expenses                                   94,841       107,995
   Other current assets                               27,021        11,011
                                                ------------  ------------

      Total current assets                        15,750,125     5,313,308

Restricted cash                                    1,150,000     1,150,000
Property and equipment, net of accumulated
 depreciation                                      1,521,321     1,483,411
Intangibles, net of accumulated amortization       3,889,932     4,108,833
Other assets                                         144,683       181,900
                                                ------------  ------------

      Total assets                              $ 22,456,061  $ 12,237,452
                                                ============  ============


   Accounts payable                             $  1,587,100  $  1,160,254
   Accrued expenses                                1,405,431     1,427,628
   Due to related parties                             39,163        63,672
   Unearned commission advances                    7,063,736     5,155,117
                                                ------------  ------------

      Total current liabilities                   10,095,430     7,806,671
                                                ------------  ------------

   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; 34,061,471 and
    28,586,471 shares issued and
    outstanding)                                      34,061        28,586
   Additional paid-in capital                     35,952,015    24,479,129
   Accumulated deficit                           (21,534,754)  (18,266,258)
   Deferred compensation                          (2,090,691)   (1,810,676)
                                                ------------  ------------

      Total shareholders' equity                  12,360,631     4,430,781
                                                ------------  ------------

      Total liabilities and shareholders'
       equity                                   $ 22,456,061  $ 12,237,452
                                                ============  ============

Contact Information

  • Contact:

    Melissa Dixon
    The Piacente Group
    Tel: 212-481-2050
    Email: Email Contact