MINNEAPOLIS, May 9 /PRNewswire-FirstCall/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported net
income of $787,321, or $0.06 per diluted share outstanding, for the first
quarter ended March 31, 2002, compared to net income of $457,458, or $0.03 per
diluted share outstanding, for the same period a year ago. Revenues increased
$260,938, or 4.1%, to $6,687,394 for the first quarter of 2002, from
$6,426,456 for the same period last year.
Jerry Noyce, Chief Executive Officer, said, "Our results for the first
quarter of 2002 continue to build upon the financial strength of the company.
Our short-term debt continues to decrease. Our revenue growth compared to
last year is attributed to new management contracts we secured during the
fourth quarter of 2001. With our attention focused squarely on sales and
marketing, we have an opportunity to continue this trend of increasing revenue
for the remainder of 2002. Also, the recognition of our remaining deferred
tax assets will allow us to continue reporting a significant improvement in
net income over prior year results."
Health Fitness Corporation is a leading provider of fitness and wellness
management services and programs to corporations, hospitals, communities and
universities located in the United States and Canada. The Company has been
serving customers since 1975 and has more than 180 customer sites.
This press release contains forward-looking statements regarding
management's belief that the company has an opportunity to realize increasing
revenue for the remainder of 2002, and that recognition of deferred tax assets
will cause net income to significantly improve over prior year results. 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, 2001, as well as the Company's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2002. There is no
assurance that the Company will be able to capitalize on any of these
forward-looking statements.
Financial tables follow ...
HEALTH FITNESS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
March 31,
2002 2001
Revenue $6,687,394 $6,426,456
Cost of Revenues 5,213,103 5,059,471
Gross Profit 1,474,291 1,366,985
Operating Expenses
Salaries 665,981 484,761
Selling, general, and administrative 412,248 492,501
Total operating expenses 1,078,229 977,262
Operating Profit 396,062 389,723
Other Income (Expense)
Interest expense (98,622) (129,861)
Gain on sale of subsidiary -- 228,613
Other, net (1,747) (1,017)
Earnings Before Income Taxes 295,693 487,458
Income Tax Expense (Benefit) (491,628) 30,000
Net Earnings $787,321 $457,458
Net Earnings Per Share:
Basic $0.06 $0.04
Diluted 0.06 0.03
Weighted Average Common Shares Outstanding
Basic 12,265,250 12,165,250
Diluted 12,396,891 12,690,417
The accompanying notes are an integral part of the financial statements.
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2002 2001
Assets
Current Assets
Cash $181,717 $221,008
Trade and other accounts receivable, less
allowance for doubtful accounts of $84,700 3,686,914 3,388,856
Prepaid expenses and other 144,908 130,090
Deferred tax asset 617,500 777,300
Total current assets 4,631,039 4,517,254
Property and Equipment, net 153,672 174,912
Other Assets
Goodwill 5,308,761 5,308,761
Intangible assets, less accumulated
amortization of $677,000 and $619,100,
respectively 128,835 186,737
Deferred tax asset 670,800 --
Other 40,920 11,410
$10,934,027 $10,199,074
Liabilities and Stockholders' Equity
Current Liabilities
Note payable $983,443 $1,442,304
Trade accounts payable 110,761 141,736
Accrued salaries, wages, and payroll taxes 1,277,587 915,379
Other accrued liabilities 540,424 392,794
Deferred revenue 1,171,576 1,243,946
Total current liabilities 4,083,791 4,136,159
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;
12,265,250 shares issued and outstanding 122,653 122,653
Additional paid-in capital 16,982,522 16,982,522
Accumulated deficit (10,254,939) (11,042,260)
6,850,236 6,062,915
$10,934,027 $10,199,074
The accompanying notes are an integral part of the financial statements.
SOURCE Health Fitness Corporation
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CONTACT:
Wes Winnekins, CFO of Health Fitness
Corporation, +1-952-897-5275, wwinnekins@hfit.com , or Dennis B.
McGrath of McGrath Buckley Communications Counseling,
+1-651-646-4115, dennis@mcgrath-buckley.com , for Health Fitness
Corporation
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