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HealthFitness Announces Third Quarter 2009 Financial Results
Date:11/4/2009

------- ------- Staffing Services $4,730 $4,552 Program Services $5,320 $3,624 Total Health Mgmt. $10,050 $8,176 GROSS PROFIT Q3 2009 Q3 2008 ------- ------- Staffing Services $1,233 $1,280 Program Services $2,814 $2,142 Total Health Mgmt. $4,047 $3,422

During the third quarter, health management segment revenue grew 22.9 percent to $10.1 million compared to $8.2 million in the third quarter of 2008. Within the segment, staffing services revenue increased 3.9 percent and program services revenue grew 46.8 percent compared to the third quarter of 2008. During the third quarter, compared to the same quarter last year, eHealth platform enrollment increased 23 percent; biometric screening participation increased 21 percent; health advising sessions increased 53 percent and health coaching enrollment increased 265 percent.

Gross margin for the health management segment was 40.3 percent for the quarter, down from 41.8 percent for the prior-year period. Within the segment, gross margin for program services decreased to 52.9 percent, from 59.1 percent for the prior-year period. This decrease is primarily attributed to the mix of program services delivered, the addition of telephonic health coaches during the quarter, and higher costs for our eHealth platform. Gross margin for staffing services decreased to 26.1 percent for the quarter, compared to 28.1 percent for the prior-year period, which is attributed to higher wages and benefits for on-site staff.

    Fitness Management

                                          (in thousands)
    REVENUE                           Q3 2009      Q3 2008
            
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SOURCE Health Fitness Corporation
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