MINNEAPOLIS, Nov. 13 /PRNewswire/ --
Health Fitness Corporation (OTC Bulletin Board: HFIT) today reported net
income of $182,876, or $0.01 per diluted share outstanding, for the third
quarter ended September 30, 2001, compared to net income of $77,868, or $0.01
per diluted share outstanding, for the same period last year. For the
nine-months ended September 30, 2001, net income was $862,506, or $0.07 per
diluted share outstanding, compared to net income of $708,219, or $0.06 per
diluted share outstanding, for the same period last year.
Revenues for the third quarter of 2001 were $6,356,489, compared to
$6,495,863 for the same period last year. For the nine-months ended
September 30, 2001, revenues were $19,361,661 compared to revenues of
$19,520,005 for the same period last year.
Jerry Noyce, Chief Executive Officer, said, "Once again, we are pleased to
announce positive results for the third quarter of 2001. We were able to
achieve increasing operating profits even though we continue to invest in
areas of our business that we believe will allow us to grow. Also, we
substantially increased our net earnings for the quarter as a result of lower
interest charges, which is attributed to the pay-down of our debt balance as
well as lower interest rates. These positive outcomes were achieved despite a
down turn in revenue for the quarter, which is attributed to a loss of a
multi-site contract at the beginning of the quarter. I am confident this lost
business will be replaced within the near future. As a company, we are fully
committed to the enhancement of shareholder value. We believe that objective
can be accomplished by pursuing business opportunities that result in market
share penetration and top-line growth."
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 current and future sales and marketing
plans will enable the Company to grow its revenue base. There is no assurance
that the Company will be able to capitalize on any of its plans regarding
future growth of the Company. 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
September 30, 2001.
HEALTH FITNESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Revenues $6,356,489 $6,495,863 $19,361,661 $19,520,005
Cost of Revenues 4,837,067 5,020,621 14,987,667 14,765,113
Gross Profit 1,519,422 1,475,242 4,373,994 4,754,892
Operating Expenses
Salaries 595,037 451,212 1,609,431 1,436,434
Selling, general,
and
administrative 601,416 563,915 1,705,471 1,742,320
Re-engineering -- 167,342 -- 321,769
Total operating
expenses 1,196,453 1,182,469 3,314,902 3,500,523
Operating Profit 322,969 292,773 1,059,092 1,254,369
Other Income
(Expense)
Interest expense (108,188) (185,687) (354,955) (551,529)
Gain on sale of
subsidiary -- -- 228,613 --
Other, net (16,736) (596) (11,988) 29,138
Earnings Before
Income Taxes 198,045 106,490 920,762 731,978
Income Taxes 15,169 28,622 58,256 23,759
Net Earnings $182,876 $77,868 $862,506 $708,219
Net Earnings Per
Share:
Basic $0.01 $0.01 $0.07 $0.06
Diluted $0.01 $0.01 $0.07 $0.06
Weighted Average
Common Shares
Outstanding
Basic 12,264,163 12,272,792 12,198,583 12,133,675
Diluted 12,503,377 12,273,301 12,400,063 12,146,344
The accompanying notes are an integral part of the financial statements.
HEALTH FITNESS CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2001 2000
Assets
Current Assets
Cash $55,041 $472,930
Trade and other accounts receivable,
less allowance for doubtful accounts
of $159,400 and $262,600, respectively 3,496,435 3,266,277
Prepaid expenses and other 122,756 47,789
Total current assets 3,674,232 3,786,996
Property and Equipment, net 200,632 257,947
Other Assets
Goodwill, less accumulated amortization of
$2,494,600 and $2,183,400, respectively 5,382,821 5,783,550
Intangible assets, less accumulated
amortization of $561,200 and $551,900,
respectively 244,639 493,947
Trade and other notes receivable -- 73,380
Other 778 3,448
$9,503,102 $10,399,268
Liabilities and Stockholder's Equity
Current Liabilities
Note payable $1,456,146 $2,685,802
Current maturities of long-term
obligations 45,397 101,850
Trade accounts payable 155,753 357,117
Accrued salaries, wages, and payroll taxes 1,117,900 927,193
Other accrued liabilities 412,489 842,783
Deferred revenue 1,195,997 1,264,674
Total current liabilities 4,383,682 6,179,419
Long-term Obligations, less current
maturities -- 24,954
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; 12,265,250 and
12,165,250 shares issued and outstanding
respectively 122,653 121,653
Additional paid-in capital 16,982,522 16,921,503
Accumulated deficit (11,985,755) (12,848,261)
5,119,420 4,194,895
$9,503,102 $10,399,268
The accompanying notes are an integral part of the financial statements.
SOURCE Health Fitness Corporation
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CONTACT:
Wes Winnekins, CFO of Health Fitness
Corporation, +1-952-897-5275, wwinnekins@hfit.com
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