MINNEAPOLIS, May 20 /PRNewswire/ -- Health Fitness Corporation
(OTC Bulletin Board: HFIT) reported today revenues from continuing operations
increased 12.5 percent to $6,948,000 for the first quarter ending March 31,
1999 compared to revenues of $6,177,000 in the same period last year.
Increased revenues were due to growth in the company's new fitness center
management and International Fitness Club Network contracts.
Net loss was $(1,152,000) for the quarter compared to net income of
$30,000 for the same period last year. The net loss for the first quarter of
1999 included income from continuing operations of $273,000. Gross profit was
$1,766,000 for the first quarter of 1999 compared to $1,614,000 a year ago,
while operating expenses were $1,296,000 compared to $1,182,000 for the same
period last year. Loss from discontinued operations was $(1,425,000) for the
first quarter of 1999 compared to a loss of $(398,000) for the first quarter
of 1998. The increased losses from discontinued operations were due to actual
operating losses exceeding earlier estimates, changes in the net realizable
value of certain assets, changes in the estimated sales price of the
divisions, and increased employee severance costs.
During the quarter, the company focused on strengthening its core
business of managing corporate fitness facilities, improving its capital
resources, and continuing the process to dispose of its freestanding physical
therapy clinics business segment and its fitness equipment business segment.
Health Fitness recently sold the majority of its free-standing physical
therapy clinics, for which the company received $3.6 million in cash. Net
proceeds from the sale of $2.25 million were used to reduce the company's
debt.
The company also announced that Charles E. Bidwell has resigned from his
positions as chairman and as chief financial officer of the company but
retains his position as a director. The Board of Directors elected director
James A. Bernards of Brightstone Capital, Ltd, as chairman; James L. Nichols
of Manchester Companies, Inc. as acting chief financial officer; and Robert
Peterson as vice president of finance.
Health Fitness Corporation of Minneapolis, Minn. is the nation's
largest manager of corporate fitness centers and hospital-based fitness
centers throughout the United States, and 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 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, 1998.
HEALTH FITNESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Ending
March 31
1999 1998
Revenues $6,948,000 $6,177,000
Costs of revenue 5,182,000 4,563,000
Gross profit 1,766,000 1,614,000
Operating expenses 1,296,000 1,182,000
Operating income 470,000 432,000
Interest expense (241,000) (101,000)
Other income 45,000 109,000
Income from continuing operations
before income taxes 274,000 440,000
Income taxes 1,000 12,000
Income from continuing operations 273,000 428,000
Loss from discontinued operations (1,425,000) (398,000)
Net income (loss) $ (1,152,000) $ 30,000
Basic net income (loss) per share $(0.10) $0.00
Diluted net income (loss) per share $(0.09) $0.00
SOURCE Health Fitness Corporation
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http://www.prnewswire.com/comp/000921.html or fax,
800-758-5804, ext. 000921
CONTACT:
Charles Mitchell of Manchester Co.,
612-338-4722, for Health Fitness Corporation
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