During the quarter, we incurred approximately $0.4 million of
unplanned expenses. Of this amount, approximately $0.3 million is
attributed to the non-cash stock and stock option expense for two new
board members, in addition to costs to enhance and improve our
corporate governance and compliance procedures. The remaining
$0.1 million of unplanned expenses is due to higher legal and
business consulting services, which were largely nonrecurring in
nature. These expense increases were partially offset by a decrease
in amortization expense related to a prior acquisition.
-- Operating margin for the third quarter declined to 1.3%, from 12.3%
for the prior year period. Excluding the effect of the $0.3 million
workers compensation premium refund we received in the third quarter
of 2006, operating margin was 10.3% for the third quarter of 2006.
This decrease is primarily due to planned investments we made to
support our future growth plans, in addition to unplanned expenses we
incurred during the third quarter of 2007.
-- We ended the third quarter with approximately $0.3 million of cash,
working capital of $8.0 million, an increase of $2.2 million since
December 31, 2006, no long term debt and stockholders' equity of
$26.2 million, an increase of $2.4 million since the end of 2006. We
believe our strong balance sheet, in addition to our existing credit
facility, will provide sufficient working capital to fund any
additional 2007 capital and operational investments.
Financial Highlights for the Nine Months Ended September 30, 2007 Compared to the Same Period Last Year.
-- Health management segment revenue grew 27.3% to $19.0 million, from
$14.9 million for the same
|SOURCE Health Fitness Corporation|
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