MINNEAPOLIS, May 15 /PRNewswire/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported net
income of $457,458, or $0.03 per diluted share outstanding, for the first
quarter ended March 31, 2001, compared to net income of $427,561, or $0.03 per
diluted share outstanding, for the same period a year ago.
Revenues for the first quarter of 2001 were $6,426,456, compared to
$6,738,891 for the same period last year. This revenue decrease was primarily
attributed to the sale of the Company's International Fitness Club Network
(IFCN) subsidiary on January 1, 2001. For the first quarter of 2000, the IFCN
subsidiary contributed approximately $327,000 to total revenues.
Despite the decline in revenues, net income increased on a comparative
quarterly basis as a result of a decrease in operating expenses and interest
expense, as well as from a one-time gain of approximately $229,000 from the
sale of the IFCN subsidiary.
Jerry Noyce, Chief Executive Officer, said, "We are pleased to be able to
announce continued improvement in the profitability of the Company. This
quarter represents five straight quarters of profitability, which is continued
affirmation of the successful turnaround of the business. Going forward, we
see a number of growth opportunities within our core business of managing
corporate and hospital fitness centers. We are very confident about the
ongoing process to build Health Fitness into a recognized industry leader."
Health Fitness Corporation is one of the 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, as well as
the Company's Quarterly Report on Form 10-Q for the quarter ended March 31,
2001. There is no assurance that the Company will be able to capitalize on
any of its plans regarding future growth of the Company.
HEALTH FITNESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
3/31/01 3/31/00
Revenue $6,426,456 $6,738,891
Cost of revenue 5,059,471 4,944,077
Gross profit 1,366,985 1,794,814
Operating expenses 977,262 1,228,032
Operating income 389,723 566,782
Interest expense (129,861) (164,852)
Gain on sale of subsidiary 228,613 --
Other income (1,017) 20,857
Income before income taxes 487,458 422,787
Income taxes 30,000 (4,774)
Net income $457,458 $427,561
Basic net income per share $0.04 $0.04
Diluted net income per share $0.03 $0.03
Basic weighted average common shares
outstanding 12,165,250 12,121,756
Diluted weighted average common shares
outstanding 12,690,417 12,523,255
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
3/31/01 12/31/00
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $202,944 $472,930
Net trade and other accounts receivable 3,225,446 3,266,277
Prepaid expenses and other 107,533 47,789
Total current assets 3,535,923 3,786,996
PROPERTY AND EQUIPMENT, net 198,372 257,947
OTHER ASSETS
Net goodwill 5,602,730 5,783,550
Net intangible assets 310,437 493,947
Net trade and other notes receivable -- 73,380
Other 3,173 3,448
$9,650,635 $10,399,268
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $1,764,815 $ 2,685,802
Current maturities of long-term obligations 92,745 101,850
Trade accounts payable 225,208 357,117
Accrued salaries, wages, and payroll taxes 1,072,138 927,193
Other accrued liabilities 640,173 842,783
Deferred revenue 1,192,325 1,264,674
Total current liabilities 4,987,404 6,179,419
LONG-TERM OBLIGATIONS, less current maturities 3,859 24,954
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;
12,165,000 shares issued and outstanding 121,653 121,653
Additional paid-in capital 16,928,522 16,921,503
Accumulated deficit (12,390,803) (12,848,261)
4,659,372 4,194,895
$9,650,635 $10,399,268
SOURCE Health Fitness Corporation
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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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