MINNEAPOLIS, Aug. 13 /PRNewswire/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported net
income of $222,178, or $0.01 per diluted share outstanding, for the second
quarter ended June 30, 2001, compared to net income of $202,787, or $0.02 per
diluted share outstanding, for the same period last year. For the six-months
ended June 30, 2001, net income was $679,636, or $0.05 per diluted share
outstanding, compared to net income of $630,348, or $0.05 per diluted share
outstanding, for the same period last year.
Revenues for the second quarter of 2001 were $6,578,716, compared to
$6,284,961 for the same period last year. For the six months ended
June 30, 2001, revenues were $13,005,172 compared to revenues of
$13,024,142 for the same period last year.
Jerry Noyce, Chief Executive Officer, said, "We are pleased to announce
positive results for the second quarter of 2001. On the revenue side, we have
made up the revenues lost from the sale of our International Fitness Club
Network in January 2001, which contributed approximately $459,000 to revenues
through June 30, 2000. This pick-up has come from new fitness management
contracts in our corporate and hospital-based lines of business. Operating
profits are down from 2000 levels as a result of increases in employee-related
costs at our corporate and hospital-based fitness facilities, which is
primarily attributed to higher workers' compensation and other employee
benefits. However, this decrease in operating profit was more than offset by
a decrease in interest charges due to lower interest rates and levels of
outstanding debt. I am very encouraged by the positive progress we have made
since the end of 2000, the time at which the Company completed its turnaround
efforts."
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
June 30, 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 Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Revenue $ 6,578,716 $ 6,284,961 $13,005,172 $13,024,142
Cost of Revenues 5,091,116 4,749,313 10,150,586 9,693,651
Gross Profit 1,487,600 1,535,648 2,854,586 3,330,491
Operating Expenses
Salaries 526,633 467,319 1,014,394 985,222
Selling, general,
and
administrative 614,567 606,649 1,104,068 1,229,249
Re-engineering -- 66,867 -- 154,427
Total operating
expenses 1,141,200 1,140,835 2,118,462 2,368,898
Operating Profit 346,400 394,813 736,124 961,593
Other Income
(Expense)
Interest expense (116,906) (200,990) (246,767) (365,842)
Gain on sale
of subsidiary -- -- 228,613 --
Other, net 5,771 8,875 4,753 29,734
Earnings Before
Income Taxes 235,265 202,698 722,723 625,485
Income Taxes 13,087 (89) 43,087 (4,863)
Net Earnings $222,178 $202,787 $679,636 $630,348
Net Earnings Per
Share:
Basic $0.02 $0.02 $0.06 $0.05
Diluted $0.01 $0.02 $0.05 $0.05
Weighted Average
Common Shares
Outstanding
Basic 12,165,250 12,139,906 12,165,250 12,130,831
Diluted 12,711,750 12,541,911 12,701,142 12,532,836
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2001 2000
Assets
Current Assets
Cash $54,607 $472,930
Trade and other
accounts receivable,
less allowance
for doubtful accounts
of $159,600 and $262,600, respectively 3,458,236 3,266,277
Prepaid expenses and other 83,945 47,789
Total current assets 3,596,788 3,786,996
Property and Equipment, net 177,237 257,947
Other Assets
Goodwill, less accumulated
amortization of
$2,384,600 and $2,183,400, respectively 5,492,776 5,783,550
Intangible assets, less accumulated
amortization of $498,300 and $551,900,
respectively 252,538 493,947
Trade and other notes receivable -- 73,380
Other 778 3,448
$9,520,117 $10,399,268
Liabilities and Stockholder's Equity
Current Liabilities
Note payable $1,781,130 $2,685,802
Current maturities of
long-term obligations 65,184 101,850
Trade accounts payable 109,355 357,117
Accrued salaries, wages,
and payroll taxes 1,009,429 927,193
Other accrued liabilities 451,211 842,783
Deferred revenue 1,222,258 1,264,674
Total current liabilities 4,638,567 6,179,419
Long-term Obligations,
less current maturities -- 24,954
Commitments and Contingencies -- --
Stockholder's 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;
12,165,250 shares issued and outstanding 121,653 121,653
Additional paid-in capital 16,928,522 16,921,503
Accumulated deficit (12,168,625) (12,848,261)
4,881,550 4,194,895
$9,520,117 $10,399,268
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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