MINNEAPOLIS, April 1 /PRNewswire/ -- Health Fitness Corporation
(Nasdaq: HFIT) today reported record revenues from continuing operations for
the year ended December 31, 1998. However, bad debt expense and adjustments
of the net realizable value of certain assets totaling $1,315,000, resulted in
a net loss from continuing operations for the year.
As reported in November 1998, Health Fitness adopted a plan to dispose of
its free standing physical therapy clinics division. Today Health Fitness
reported that it has formally adopted a plan to dispose of its equipment
retail and commercial sales division. Revenues from continuing operations rose
19% in 1998 to $25,643,000 from 1997. Gross profit rose 23% to $6,034,000 in
1998 from 1997. Net loss from continuing operations in 1998 was $941,000, or
a diluted loss per share from continuing operations of $.08 per share.
The Company recorded a net loss of $8,109,000 for the year ended December
31, 1998. The net loss includes a loss from discontinued operations of
$1,893,000 and a loss on the disposal of discontinued operations of
$5,274,000.
According to CEO, Loren Brink, "Health Fitness Corporation continues to
exhibit strong growth in revenues and profitability in its base business, the
management of corporate fitness facilities. Given the significant financial
downturn in the Rehabilitation Industry, we believe disposing of the clinic
division is definitely the right strategy for the company."
"The company is looking forward to continued strong growth in its
continuing operations. Continued revenue growth, along with sizable cuts in
overhead costs should translate into a positive bottom line shortly after the
clinic sale and refinancing of the company's remaining debt."
Health Fitness Corporation is a preventive healthcare service company
headquartered in Minneapolis. It is the nation's largest manager of corporate
fitness centers, currently managing 140 corporate and hospital-based fitness
centers across the United States. The company also provides a wide range of
additional preventive health care services to corporations.
This press release contains forward-looking statements regarding the
Company's anticipated future operations and growth; these statements should be
read in conjunction with the various factors affecting the Company's ability
to finance and manage such growth, including but not limited to the Company's
ability to sell its discontinued operations and refinance its credit facility
which comes due in July 1999, all as discussed in detail in the Management's
Discussion and Analysis of Financial Condition and Results of Operations
portion of the Company's 1997 Annual Report on Form 10-KSB.
HEALTH FITNESS CORPORATION
(In thousands, except per-share amounts)
Year Ended
December 1998
Revenue $ 25,643
Cost of revenues 19,609
Gross profit 6,034
Income loss from continuing operations (941)
Loss from discontinued operations (7,168)
Net loss $ (8,109)
Income (loss) per share from continuing operations
Basic ($.08)
Diluted ($.08)
Net income (loss) per share
Basic ($.72)
Diluted ($.72)
Weighted average number of
common shares outstanding
Basic 11,319
Diluted 11,319
SOURCE Health Fitness Corporation
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Company News On-Call:
http://www.prnewswire.com/comp/000921.html or fax,
800-758-5804, ext. 000921
CONTACT:
Loren S. Brink of Health Fitness Corporation,
612-831-6830
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