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HealthFitness Announces 2008 Third Quarter Results
Date:11/3/2008

wth will be partially offset by a potential annualized revenue loss of $1.1 million from fitness and health management contract cancellations. Additionally, during the 2008 third quarter, the company received 20 new RFPs for health management services and five new RFPs for fitness management services.

Lehman added, "Due to current economic conditions, we witnessed continued lengthening of sales cycles during the quarter as companies take longer to evaluate our services among a broad array of other corporate initiatives. We are encouraged that companies seem to be taking a long-term view and are still demonstrating significant interest in the value proposition that our health and fitness services can provide to their companies. This bears itself out in the relatively robust condition of our RFP pipeline during the quarter. In the quarters ahead, we will maintain our keen focus on providing an attractive suite of services to our corporate customers, further refining our sales approach and closely monitoring and controlling expense levels."

2008 Nine-Month Results

For the nine months ended September 30, 2008, revenue increased 10.4 percent to $56.0 million, from $50.7 million for the same period last year. Gross profit rose 16.7 percent to $16.9 million, or 30.1 percent of revenue, from $14.5 million, or 28.5 percent of revenue, for the prior-year period.

Operating income was $2.7 million for the nine months ended September 30, 2008, up from $1.5 million during the prior-year period, primarily reflecting revenue increases and gross margin enhancement. Net earnings applicable to common shareholders climbed to $1.5 million from $0.7 million during the same period last year. Net earnings per diluted share totaled $0.15 compared to $0.07 for the same period last year.

For the nine months ended September 30, 2008, the company received a total of 15 health management commitments and expanded services with two existing health management cust
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SOURCE Health Fitness Corporation
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