SOURCE: Health Benefits Direct Corporation

April 02, 2007 16:01 ET

Health Benefits Direct Corporation Announces Fourth Quarter and Fiscal Year 2006 Financial Results

RADNOR, PA -- (MARKET WIRE) -- April 2, 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 fourth quarter and fiscal year ended December 31, 2006.

Alvin H. Clemens, Chairman and Chief Executive Officer of Health Benefits Direct, stated, "Our strong year-over-year growth in revenues is primarily attributable to the increase in the number of licensed agents that we employ and the expanded mix of insurance products that we offer through our online agency. We closed the year with a record for the highest monthly production in the history of the company, and we continue to drive solid growth from our expanding number of licensed agents, product offerings and technology.

"We are especially pleased with the sequential quarterly revenue growth during 2006 and in particular the fourth quarter where revenue increased 60% over the third quarter. These results not only demonstrate the progress we have made in our short history but also the potential power of our business model -- high quality carrier relationships and products, innovative technologies, recurring revenues and a commitment to customer service."

Fiscal Year 2006 Results

Revenues for the fiscal year ended December 31, 2006 increased 360% to a record $12,240,101 as compared to $2,660,491 for the fiscal year ended December 31, 2005.

Operating expenses for the fiscal year ended December 31, 2006 totaled $26,551,476 as compared to $5,728,768 for the fiscal year ended December 31, 2005. The primary factors contributing to the annual 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) a substantial increase in operations in 2006.

Net loss for the fiscal year ended December 31, 2006 was $(13,967,824), or $(0.51) per basic and diluted share, as compared to a net loss of $(3,170,577), or $(0.36) per basic and diluted share for the fiscal year 2005.

At December 31, 2006, Health Benefits Direct had total shareholders' equity of $4,430,781 and no long-term debt.

Fourth Quarter Results

Revenues for the three months ended December 31, 2006 increased 399% to $5,157,688 as compared to $1,033,161 for the same period in 2005. Operating expenses for the three months ended December 31, 2006 totaled $8,831,332 as compared to $2,182,239 for the same period in 2005. Net loss for the three months ended December 31, 2006 was $(3,631,044), or $(0.13) per basic and diluted share, as compared to a net loss of $(1,232,588), or $(0.14) per basic and diluted share, for the same period in 2005.

2006 Operational Highlights

Health Benefit Direct's key operational highlights for the year ended December 31, 2006 included:

--  The completion of a $14.7 million equity financing, which commenced in
    late 2005 and was completed in January in multiple closings;
    
--  The commencement of trading on the OTC Bulletin Board under the symbol
    "HBDT";
    
--  The opening of new state of the art facilities in Deerfield Beach, FL
    and New York, NY;
    
--  The online launch of a newly designed and upgraded consumer web
    portal;
    
--  A streamlining of the company's management structure with Alvin H.
    Clemens as Chairman and CEO; and
    
--  The addition of nationally branded, highly rated health insurance
    carriers, including United Healthcare (underwritten by Golden Rule
    Insurance Company), Humana Inc. and Time Insurance Company (marketed under
    the name Assurant Health).
    
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. www.hbdc.com or 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 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 in general. 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.



            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET


                                                December 31,  December 31,
                                                    2006          2005
                                                ------------  ------------
                       ASSETS

CURRENT ASSETS:
  Cash                                          $  2,311,781  $  6,433,426
  Accounts receivable, less allowance for
   doubtful accounts                               2,197,523       194,261
  Deferred compensation advances                     684,998       173,696
  Prepaid expenses                                   107,995             -
  Other current assets                                11,011             -
                                                ------------  ------------

   Total current assets                            5,313,308     6,801,383

Restricted cash                                 $  1,150,000  $          -
Property and equipment, net of accumulated
 depreciation                                      1,483,411       274,061
Intangibles, net of accumulated amortization       4,108,833       133,456
Other assets                                         181,900        22,659
                                                ------------  ------------

   Total assets                                 $ 12,237,452  $  7,231,559
                                                ============  ============

      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
 Line of credit                                 $          -  $    399,630
 Accounts payable                                  1,160,254       381,312
 Accrued expenses                                  1,427,628       410,524
 Due to related parties                               63,672       207,754
 Unearned commission advances                      5,155,117       886,939
                                                ------------  ------------

   Total current liabilities                       7,806,671     2,286,159
                                                ------------  ------------

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; 28,586,471 and 20,241,471
   shares issued and outstanding)                     28,586        20,241
  Additional paid-in capital                      24,479,129     9,315,260
  Accumulated deficit                            (18,266,258)   (4,298,434)
  Deferred compensation                           (1,810,676)      (91,667)
                                                ------------  ------------

   Total shareholders' equity                      4,430,781     4,945,400
                                                ------------  ------------

   Total liabilities and shareholders' equity   $ 12,237,452  $  7,231,559
                                                ============  ============




            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS



                   For the Three Months Ended       For the Years Ended
                          December 31,                 December 31,
                   --------------------------  ---------------------------
                       2006          2005          2006           2005
                   ------------  ------------  -------------  ------------
                    (Unaudited)   (Unaudited)    (Unaudited)   (Unaudited)

Revenues           $  5,157,688  $  1,033,161  $  12,240,101  $  2,660,491


Operating Expenses:
 Salaries,
  commission and
  related taxes       4,377,521     1,055,691     13,754,445     2,967,924
 Lead, advertising
  and other
  marketing           2,100,238       399,108      5,174,260       901,036
 Depreciation and
  amortization          661,588        42,835      2,146,703       102,350
 Rent, utilities,
  telephone and
  communications        734,631       231,623      1,970,275       468,816
 Professional fees      356,500       139,307      1,211,605       220,883
 Management
  salaries -
  related parties             -        15,300              -       487,800
 Other general and
  administrative        600,854       298,375      2,294,188       579,959
                   ------------  ------------  -------------  ------------

                      8,831,332     2,182,239     26,551,476     5,728,768
                   ------------  ------------  -------------  ------------

Loss from
 operations          (3,673,644)   (1,149,078)   (14,311,375)   (3,068,277)
                   ------------  ------------  -------------  ------------

Other income
 (expense):
 Loss on disposal
  of property and
  equipment                   -       (16,420)          (339)      (16,420)
 Loss on
  impairment of
  intangible asset            -             -              -             -
 Registration
  rights penalty
  reversal                    -       (60,537)        60,537       (60,537)
 Interest income         45,137         2,962        303,357         2,962
 Interest expense        (2,537)       (9,515)       (20,004)      (28,305)
                   ------------  ------------  -------------  ------------

   Total other
    income
    (expense)            42,600       (83,510)       343,551      (102,300)
                   ------------  ------------  -------------  ------------

Net loss           $ (3,631,044) $ (1,232,588) $ (13,967,824) $ (3,170,577)
                   ============  ============  =============  ============

Net loss per
 common share:
  Net loss per
   common share -
   basic and
   diluted         $      (0.13) $      (0.14) $       (0.51) $      (0.36)
                   ============  ============  =============  ============

Weighted average
 common shares
 outstanding -
 basic and diluted   28,539,732     8,832,446     27,578,861     8,832,446
                   ============  ============  =============  ============

Contact Information

  • Contact:

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