MINNEAPOLIS, May 8 /PRNewswire/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported net
income of $427,561, or $0.03 per diluted share outstanding, for the first
quarter ended March 31, 2000, compared to a net loss of $1,151,941, or $(0.09)
per diluted share outstanding, for the same period a year ago. The 1999 net
loss included a $1,425,000 loss from discontinued operations.
Revenues for the first quarter of 2000 were $6,738,891, compared to
$6,947,658 for the same period last year. Although revenues from the
company's core business of fitness center management contracts increased, the
growth was offset by an absence of revenues from the occupational health and
physical therapy network divisions which were sold in the third quarter of
1999.
Despite the decline in revenues, gross profit increased to $1,794,814 in
the first quarter of 2000, compared to $1,765,563 during the same period last
year. Operating income during the quarter increased to $566,782, compared to
$483,169 in the first quarter of 1999. These operating improvements were
achieved largely through increases in management contract revenue and
reductions in selling and administrative expense.
Charles J.B. Mitchell, Jr., acting Chief Executive Officer, said,
"Achieving profitability is an important milestone for Health Fitness. The
company is beginning to realize significant benefits from the re-engineering
actions taken last year to strengthen its core business and divest its other
divisions. We are pleased with these results, and believe the company's
turnaround trend will continue. At the same time, Health Fitness continues to
pursue strategic options for the company in order to strengthen its presence
in the fitness market."
Health Fitness Corporation of Minneapolis, Minn. manages corporate fitness
centers and hospital-based fitness centers throughout the United States and
provides a wide range of additional health and wellness services to
corporations.
This press release contains forward-looking statements regarding
management's belief that a turnaround trend will continue into the future 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
Management's Discussion and Analysis of Financial Condition and Results of
Operations portion of the company's Annual Report on Form 10-K for the year
ended December 31, 1999. There is no assurance that the company will be able
to implement any of the noted strategic options under consideration.
Financial tables follow ...
HEALTH FITNESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
3/31/00 3/31/99
Revenue $6,738,891 $6,947,658
Cost of revenue 4,944,077 5,182,095
Gross profit 1,794,814 1,765,563
Operating expenses 1,228,032 1,282,394
Operating income 566,782 483,169
Interest expense (164,852) (241,245)
Other income 20,857 31,966
Income from continuing operations before
income taxes 422,787 273,890
Income taxes (4,774) 831
Income from continuing operations 427,561 273,059
Loss from discontinued operations -- (1,425,000)
Net income (loss) $427,561 $(1,151,941)
Basic net income (loss) per share $0.04 $(0.10)
Diluted net income (loss) per share $0.03 $(0.09)
Basic weighted average common shares
outstanding 12,121,756 11,884,413
Diluted weighted average common shares
outstanding 12,523,255 13,217,746
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
3/31/00 12/31/99
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $134,590 $139,852
Net trade and other accounts receivable 2,798,610 3,406,552
Trade and other notes receivable 224,990 308,841
Prepaid expenses and other 53,520 10,939
Total current assets 3,211,710 3,866,184
PROPERTY AND EQUIPMENT, net 506,598 554,885
OTHER ASSETS
Net intangible assets 6,319,403 6,481,712
Net trade and other notes receivable 285,630 340,731
Other 7,497 80,043
$10,330,838 $11,323,555
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Note payable $1,994,006 $2,862,128
Current maturities of long-term obligations 319,859 341,133
Trade accounts payable 312,889 672,322
Accrued salaries, wages, and payroll taxes 1,008,769 924,135
Accrued earn-out 93,522 186,425
Other accrued liabilities 513,136 407,997
Subordinated notes payable 115,000 115,000
Net liabilities of discontinued operations 683,227 810,987
Deferred revenue 1,302,992 1,381,752
Total current liabilities 6,343,400 7,701,879
LONG-TERM OBLIGATIONS, less current maturities 347,245 423,548
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value;
5,000,000 shares authorized;
none issued or outstanding -- --
Common stock, $.01 par value;
25,000,000 shares authorized;
12,124,078 and 12,112,015 shares
issued and outstanding, respectively 121,241 121,120
Additional paid-in capital 16,869,820 16,855,438
Accumulated deficit (13,350,868) (13,778,430)
3,640,193 3,198,128
$10,330,838 $11,323,555
SOURCE Health Fitness Corporation
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800-758-5804, ext. 000921
CONTACT:
Charlie Mitchell of Manchester Companies,
612-338-4722
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