MINNEAPOLIS, May 15 /PRNewswire-FirstCall/ -- Health Fitness Corporation
(OTC Bulletin Board: HFIT) today announced financial results for the first
quarter ended March 31, 2003.
Revenue was $7,518,205 during the first quarter, up $830,811 or 12.4% over
revenue of $6,687,394 reported for the first quarter a year ago. Earnings
before income taxes were $450,010, an increase of $154,317, or 52.2% from
$295,693 in the first quarter of 2002. Net earnings for the quarter were
$267,980, down $519,341, or 66% from the same quarter last year. The decline
in the quarter to quarter net earnings comparison is attributable to increased
income tax expense resulting from the company's recognition of $625,300 in tax
benefits during the first quarter of 2002.
Health Fitness Corporation (HFC) CEO and President Jerry Noyce said the
sharp gain in revenue is due to the addition of new management contracts and
the expansion of services from existing contracts. He explained the revenue
gains and decreased interest expenses combined to boost gross profit, noting
that increased salary expense, due to increased employee benefit costs and the
addition of key marketing and sales employees, offset some of this gain.
"The sales and marketing strategies we have implemented over the past two
years continue to improve our top-line performance," Noyce said. "Our ongoing
efforts to control operating expense as our business grows should continue to
benefit our bottom line performance. Our objective for the remainder of 2003
is to keep executing the plan that has been producing improved results and
financial progress for the company."
Health Fitness Corporation is the leading provider of results-oriented
fitness, assessment, wellness, and occupational health services to
corporations, hospitals, universities and communities. HFC has been serving
clients since 1975 and manages approximately 200 sites across the United
States and Canada. For more information about HFC, visit http://www.hfit.com .
This press release contains forward-looking statements within the meaning
of federal securities laws. These statements include statements regarding
intent, belief, or current expectations of the Company and its management and
specifically include the statement regarding the Company's objective for the
remainder of 2003. These forward-looking statements are not guarantees of the
future performance and involve a number of risks and uncertainties that may
cause the Company's actual results to differ materially from the results
discussed in these statements. 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, 2002,
as well as the Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2003. 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 STATEMENT OF EARNINGS
(unaudited)
Three Months Ended
March 31,
2003 2002
REVENUE $7,518,205 $6,687,394
COST OF REVENUE 5,863,806 5,213,103
GROSS PROFIT 1,654,399 1,474,291
OPERATING EXPENSES
Salaries 783,542 665,981
Selling, general, and admin. 409,314 412,248
Total Operating Expenses 1,192,856 1,078,229
OPERATING INCOME 461,543 396,062
OTHER INCOME (EXPENSE)
Interest Expense (10,505) (98,622)
Other, net (1,028) (1,747)
EARNINGS BEFORE INCOME TAXES 450,010 295,693
Income Tax Expense (Benefit) 182,030 (491,628)
NET EARNINGS $267,980 $787,321
NET EARNINGS PER SHARE
Basic $0.02 $0.06
Diluted 0.02 0.06
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 12,308,321 12,265,250
Diluted 12,404,312 12,396,891
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, 2003 March 31, 2002
ASSETS
CURRENT ASSETS
Cash $86,850 $91,658
Trade and other accounts receivable, less
allowance for doubtful accounts of
$79,400 and $83,500 4,293,134 4,036,888
Prepaid expense and other 287,797 266,734
Deferred tax asset 731,500 731,500
Total current assets 5,399,281 5,126,780
PROPERTY AND EQUIPMENT, net 184,426 176,206
OTHER ASSETS
Goodwill 5,308,761 5,308,761
Deferred tax asset 2,101,872 2,254,876
Other 212,744 89,188
$13,207,084 $12,955,811
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Note payable $437,529 $304,589
Trade accounts payable 278,681 409,150
Accrued salaries, wages and payroll taxes 1,457,000 1,072,982
Other accrued liabilities 250,721 415,856
Accrued benefits 180,010 267,042
Deferred revenue 1,245,048 1,407,437
Total current liabilities 3,848,989 3,877,056
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; 12,322,908 and 12,297,661
shares issued and outstanding 123,229 122,977
Additional paid-in capital 17,008,475 16,997,367
Accumulated deficit (7,773,609) (8,041,589)
9,358,095 9,078,755
$13,207,084 $12,955,811
SOURCE Health Fitness Corporation
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Related links:
http://www.hfit.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/000921.html
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
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