MINNEAPOLIS, March 28 /PRNewswire/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported net
income of $930,169, or $0.07 per diluted share outstanding for the twelve
months ended December 31, 2000, compared to a net loss of $2,826,904, or
$(0.24) per diluted share outstanding for the same period in 1999.
Revenues for 2000 remained constant at $26,190,671 compared to
$26,195,110 for 1999.
Operating income for 2000 increased to $1,648,142 from $27,788 for 1999 as
a result of decreased operating expenses across the entire company. The
company also incurred $380,103 in re-engineering expenses during 2000 related
to the company's turnaround efforts that began in 1999.
Jerry Noyce, President and Chief Executive Officer, said, "Considerable
progress has been made over the last two years to improve the financial and
competitive position of the Company. The turnaround process the Company
pursued, which is now essentially complete, has allowed us to focus on
managing and growing our core business of providing fitness and wellness
services to the corporate, hospital and community-based fitness markets. 2000
was a pivotal year for us, and we are quite pleased to be able to announce
four straight quarters of profitability. With a stable foundation now in
place, we feel the Company is well-positioned to capitalize on the
opportunities that exist in the markets we serve."
For the fourth quarter ended December 31, 2000, the Company recorded net
income of $221,953, or $0.01 per diluted share outstanding, compared to a net
loss of $147,034, or $(0.01) per diluted share outstanding for the same period
a year ago. Revenues for the fourth quarter of 2000 were $6,670,956 compared
to $6,429,786 for the same period last year. Gross profit improved to
$1,551,265 in the fourth quarter of 2000 compared to $1,456,554 in the fourth
quarter of 1999. Operating expenses, including interest expense, decreased to
$1,304,624 compared to $1,523,785, which is primarily due to a decrease in
interest expense related to decreased borrowings and the refinancing of notes
payable in July 2000, as well as the benefits derived from expense reductions
coming from the Company's turnaround efforts.
Health Fitness Corporation is one of the nation's leading providers of
corporate health, fitness, recreation and occupational health services and
medically based community wellness programs. The company has been serving
customers since 1975 and has more than 150 customer sites across the United
States and Canada.
This press release contains forward-looking statements regarding
management's belief that the Company's turnaround efforts are essentially
complete, and that the Company's core business has been strengthened for
future growth. These statements should be read in conjunction with the
various factors affecting the Company's operations and financial condition
discussed in the section titled "Management's Discussion and Analysis of
Financial Condition and Results of Operations" contained within the Company's
Annual Report on Form 10-K for the year ended December 31, 2000. There is no
assurance that the Company will be able to capitalize on any of its plans
regarding future growth of the Company.
CONSOLIDATED
STATEMENTS OF
OPERATIONS Three Months Ending Twelve Months Ending
12/31/00 12/31/99 12/31/00 12/31/99
Unaudited Unaudited
REVENUE $6,670,956 $6,429,786 $26,190,671 $26,195,110
COST OF REVENUE 5,119,691 4,973,232 19,804,356 20,151,180
GROSS PROFIT 1,551,265 1,456,554 6,386,315 6,043,930
OPERATING EXPENSES
Salaries 404,002 577,264 1,840,436 2,053,509
Selling, general,
and administrative 695,156 574,926 2,517,634 3,214,160
Re-engineering 58,334 143,130 380,103 748,473
Total operating
expenses 1,157,492 1,295,320 4,738,173 6,016,142
OPERATING INCOME
(LOSS) 393,773 161,234 1,648,142 27,788
OTHER INCOME
(EXPENSE)
Interest expense (130,318) (309,758) (681,847) (1,089,904)
Other, net (16,814) 81,293 12,321 (253,568)
INCOME (LOSS) FROM
CONTINUING
OPERATIONS BEFORE
INCOME TAXES 246,641 (67,231) 978,616 (1,315,684)
INCOME TAXES 24,688 79,803 48,447 86,220
INCOME (LOSS) FROM
CONTINUING
OPERATIONS 221,953 (147,034) 930,169 (1,401,904)
DISCONTINUED
OPERATIONS
Loss on disposal
of Physical
Therapy Clinic
segment and
Equipment segment -- -- -- (1,425,000)
LOSS FROM
DISCONTINUED
OPERATIONS -- -- -- (1,425,000)
NET INCOME (LOSS) $ 221,953 $(147,034) $930,169 $(2,826,904)
NET INCOME (LOSS)
PER SHARE FROM
CONTINUING
OPERATIONS
Basic $0.01 $(0.01) $0.08 $(0.12)
Diluted 0.01 (0.01) 0.07 (0.12)
NET LOSS PER
SHARE FROM
DISCONTINUED
OPERATIONS
Basic $-- $-- $-- $(0.12)
Diluted -- -- -- (0.12)
NET INCOME (LOSS)
PER SHARE:
Basic $0.01 $(0.01) $0.08 $(0.24)
Diluted 0.01 (0.01) 0.07 (0.24)
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING
Basic 12,274,857 12,112,015 12,133,085 11,982,610
Diluted 12,419,531 12,112,015 12,451,095 11,982,610
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000 AND 1999
2000 1999
ASSETS
CURRENT ASSETS
Cash $472,930 $139,852
Trade and other accounts receivable,
less allowance for doubtful accounts
of $262,600 and $187,900 at December 31,
2000 and 1999 3,266,277 3,406,552
Trade and other notes receivable -- 308,841
Prepaid expenses and other 47,789 10,939
Total current assets 3,786,996 3,866,184
PROPERTY AND EQUIPMENT, net 257,947 554,885
OTHER ASSETS
Goodwill, less accumulated
amortization of $2,183,400 and
$1,777,600 at December 31, 2000 and 1999 5,783,550 6,163,998
Intangible assets, less accumulated
amortization of $551,900 and $359,100
at December 31, 2000 and 1999 493,947 317,714
Trade and other notes receivable 73,380 340,731
Other 3,448 80,043
$10,399,268 $11,323,555
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Note payable $2,685,802 $2,862,128
Current maturities of long-term
obligations 101,850 341,133
Subordinated notes payable -- 115,000
Trade accounts payable 357,117 672,322
Accrued salaries, wages, and payroll taxes 927,193 924,135
Accrued earn-out -- 186,425
Other accrued liabilities 736,049 407,997
Deferred revenue 1,264,674 1,381,752
Net liabilities of discontinued
operations 106,734 810,987
Total current liabilities 6,179,419 7,701,879
LONG-TERM OBLIGATIONS, less current
maturities 24,954 423,548
COMMITMENTS AND CONTINGENCIES -- --
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value;
5,000,000 shares authorized, none issued or
outstanding -- --
Common stock, $0.01 par value;
25,000,000 shares authorized;
12,165,250 and 12,112,015 shares issued
and outstanding at December 31, 2000
and 1999 121,653 121,120
Additional paid-in capital 16,921,503 16,855,438
Accumulated deficit (12,848,261) (13,778,430)
4,194,895 3,198,128
$10,399,268 $11,323,555
SOURCE Health Fitness Corporation
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http://www.prnewswire.com/comp/000921.html or fax,
800-758-5804, ext. 000921
CONTACT:
Wes Winnekins, CFO of Health Fitness
Corporation, 952-897-5275, wwinnekins@hfit.com , or Dennis B.
McGrath of McGrath Buckley Communications Counseling,
651-646-4115, dennis@mcgrath-buckley.com , for Health Fitness
Corporation
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