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HealthFitness Announces 2008 Second Quarter Results
Date:8/4/2008

ent, essentially even with the same period last year. The company anticipates that operating expenses, as a percent of revenue, will decline as it achieves additional revenue growth and productivity enhancements.

Second Quarter Commitments and RFPs

During the quarter, the company secured two new health management commitments, up-sold health management services to two fitness management customers and expanded services for four fitness management customers, all of which may realize annualized revenue of $2.4 million. This total annualized revenue will be partially offset by a potential annualized revenue loss of $0.2 million from fitness management contract cancellations. Additionally, during the 2008 second quarter, the company received 25 new RFPs for health management services and three new RFPs for fitness management services.

Lehman added, "To counteract longer customer evaluation periods, we are refining our health management sales approach to focus on our unique value proposition and ability to reduce costs during the first year of a customer engagement. For the interim, I have taken a more direct managerial role within our sales organization to oversee this important work and to ensure that we are maximizing our sales opportunities. We believe that by focusing on lowering employers' direct and indirect health care costs, coupled with a solution-based sales approach, we can better cultivate existing and upcoming RFPs and grow the number of customer commitments."

2008 First-Half Results

For the six months ended June 30, 2008, revenue increased 12 percent to $37.5 million, from $33.6 million for the same period last year. Gross profit increased 13.7 percent to $10.9 million from $9.6 million for the prior-year period.

Operating income was $1.2 million for the six months ended June 30, 2008, compared to $1.3 million during the prior-year period, reflecting infrastructure investments the company has made to address future b
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SOURCE Health Fitness Corporation
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