MINNEAPOLIS, Nov. 13 /PRNewswire/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported
continued operating improvements and a positive outlook for the future of the
company's core fitness center management businesses.
For the three months ended September 30, 2000, Health Fitness reported net
income of $78,000, or $0.01 per diluted share outstanding compared to a net
loss of $941,000, or $(0.08) per diluted share outstanding, for the same
period in 1999. Revenues for the three-month period increased .5% to
$6,496,000 compared to $6,467,000 reported in 1999. Operating income for the
third quarter of 2000 increased to $293,000 compared to an operating loss of
$269,000 during the same period in 1999. Exclusive of re-engineering expenses
which include merger related costs associated with the terminated Healthtrax
merger, net income for the quarter would have been $245,000, or $0.02 per
share.
For the nine-month period ending September 30, 2000, the company reported
net income of $708,000, or $0.06 per diluted share outstanding, compared to a
net loss of $2,680,000, or $(0.22) per diluted share outstanding, for the
first nine months of 1999. Revenues for the first nine months of 2000
decreased 1.2% to $19,520,000 compared to $19,765,000 in the first nine months
of 1999. Operating income increased to $1,254,000 in the first nine months of
2000 compared to a loss of $133,000 in the same period a year ago. Exclusive
of re-engineering costs, net income would have been $1,030,000, or $0.08 per
share for the first nine months of the year.
Revenues increased during the three-month and nine-month period in the
company's core business of fitness center management services, but were offset
in the nine-month period by decreases in revenues from the company's
occupational health programs and physical therapy network businesses which
were divested in August of 1999. Operating income increased in both the
three-month and nine-month periods primarily due to decreased operating
expenses and lower bad debt write-offs.
James A. Bernards, Chairman of the Board, said, "The Board of Directors
continues to be excited about the trend that Health Fitness has created in the
first three quarters of this year. With the help of The Manchester Companies,
the management team has executed a turnaround plan that has substantially
improved the financial condition of the company and has validated the core
fitness center management business lines. We see some exciting opportunities
in these business lines, and our attention is now focused on positioning the
company to take advantage of these opportunities."
Health Fitness Corporation of Minneapolis, Minn. manages corporate fitness
centers and hospital-based fitness centers throughout the United States and
provides a wide range of additional health and wellness services to
corporations.
This press release contains forward-looking statements regarding
management's belief that a turnaround trend will continue into the future,
that the company's core business has been strengthened for future growth, and
that the company has exciting opportunities for growth. These statements
should be read in conjunction with the various factors affecting the company's
operations and financial condition 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, 1999.
There is no assurance that the company will be able to continue such
improvements or take advantage of such opportunities.
HEALTH FITNESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ending Nine Months Ending
9/30/00 9/30/99 9/30/00 9/30/99
Revenue $6,495,863 $6,467,158 $19,520,005 $19,765,324
Costs of revenue 4,991,275 4,982,471 14,684,926 15,177,948
Gross profit 1,504,588 1,484,687 4,835,079 4,587,376
Operating expenses 1,211,815 1,753,974 3,580,710 4,720,822
Operating income (loss) 292,773 (269,287) 1,254,369 (133,446)
Interest expense (185,687) (302,522) (551,529) (780,146)
Other income (expense) (596) (363,669) 29,138 (334,861)
Income from continuing
operations before
income taxes 106,490 (935,478) 731,978 (1,248,453)
Income taxes 28,622 5,582 23,759 (6,413)
Income (loss) from
continuing operations 77,868 (941,060) 708,219 (1,254,866)
Loss from discontinued
operations -- -- -- (1,425,000)
Net income (loss) $77,868 $(941,060) $708,219 $(2,679,866)
Basic net income (loss)
per share $0.01 $(0.08) $0.06 $(0.22)
Diluted net income
(loss) per share $0.01 $(0.08) $0.06 $(0.22)
Basic weighted average
common shares
Outstanding 12,272,792 11,982,132 12,133,675 11,939,001
Diluted weighted
average common
shares Outstanding 12,273,301 11,982,132 12,146,344 11,939,001
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
9/30/00 12/31/99
ASSETS
CURRENT ASSETS
Cash $97,207 $139,852
Net trade accounts receivable 3,576,511 3,406,552
Trade and other notes receivable 48,252 308,841
Prepaid expenses and other 88,340 10,939
Total current assets 3,810,310 3,866,184
PROPERTY AND EQUIPMENT, net 344,674 554,885
OTHER ASSETS
Net intangible assets 6,425,473 6,481,712
Trade and other notes receivable 25,128 340,731
Other 5,629 80,043
$10,611,214 $11,323,555
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Note payable $2,891,961 $2,862,128
Current maturities of long-term obligations 122,564 341,133
Subordinated notes payable -- 115,000
Trade accounts payable 244,820 672,322
Accrued salaries, wages, and payroll taxes 1,122,964 924,135
Accrued earn-out -- 186,425
Other accrued liabilities 790,474 407,997
Deferred revenue 1,163,227 1,381,752
Net liabilities of discontinued operations 319,819 810,987
Total current liabilities 6,655,829 7,701,879
LONG-TERM OBLIGATIONS, less current maturities 36,910 423,548
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; 12,150,250 and 12,112,015 shares
issued and outstanding, respectively 121,502 121,120
Additional paid-in capital 16,867,184 16,855,438
Accumulated deficit (13,070,211) (13,778,430)
3,918,475 3,198,128
$10,611,214 $11,323,555
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 Companies,
612-338-4722, for Health Fitness Corporation
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