Navigation Links
SOKO Fitness & Spa Group Announces Third Quarter FY2009 Financial Results
Date:4/15/2009

HARBIN, China, April 15 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board: SOKF), a leading operator of fitness clubs and spas in Northern China, announced its operating results for the fiscal third quarter ended February 28, 2009.

Total revenue for the quarter was $5.1 million, an increase of 42% over the same quarter in the previous year. For the nine months ended February 28, 2009, revenues were $14 million, an increase of 55% from the prior year. SOKO also reaffirmed its previous FY2009 revenue guidance in a range of $16.3 to $18.3 million and its pro forma net income guidance of $6.5 to $7.1 million.

Net income during the quarter grew 29% to $1.85 million from $1.43 million for the same quarter of 2008. For the nine months ended February 28, 2009, net income increased to $5.2 million, an increase of 49%. Third quarter Earnings per share were $0.11 vs. $0.13 in the prior period. The decline was caused by the dilution from the stock offering. EPS for the 9 months were $0.30 vs. $0.32 in the previous year. Higher earnings were offset by a higher share count.

Revenue growth was driven primarily by the opening of two spas during the period. We increased product sales in our spas. Fitness and yoga membership fee revenues increased by 135% year to year, mainly as a result of the acquisition of a majority interest in Letian in March 2008. Letian contributed about 52% to our fitness revenue for Q3 FY2009.

Operating margin increased to 64.6%, compared to 62.5%. The increase in our gross profit margin was mainly driven by our ability to obtain high volume discounts because of our larger size as well as by the increases in our fitness segment.

Operating expenses increased by approximately $0.6 million to $1.4 million for the three months ended February 28, 2009 year to year. As a percentage of revenues, expenses increased to 28.2% from 22.6%. This increase was mainly driven by the high cost of being a public company as well as the start-up costs for building management teams for our new facilities.

We have reclassified some direct labor costs from operating expenses to cost of sales. The impact of this change is to lower gross margins and lower operating expenses/sales. The reclassification has no impact on either sales or net income. The numbers below for both 2008 and 2009 reflect the impact of the reclassification and are comparable with each other.

"We are very pleased with the results of our business," Mr. Liu Tong, Chairman of SOkO commented. "We focus our business on Northeast, which is the most famous traditional industry base of China, and expect to open more spas and fitness centers in the future. We believe we have significant opportunities for expansion, and look forward to becoming the dominant company in the fitness and beauty business in the northeast."



                            SOKO INCOME STATEMENT

                        FOR THE NINE MONTHS ENDED  FOR THE THREE MONTHS ENDED
                         FEBRUARY 28, FEBRUARY 29,  FEBRUARY 28,  FEBRUARY 29,
                               2009          2008          2009          2008

    Net Sales           $13,996,019    $9,048,287    $5,110,861    $3,593,350

    Cost of Sales        (4,822,521)   (3,330,316)   (1,807,084)   (1,347,769)

    Gross Profit          9,173,498     5,717,971     3,303,777     2,245,581

    Gross Margin              65.54%        63.19%        64.64%        62.49%

    Operating Expenses    3,839,238     2,251,863     1,438,622       810,904

    Operating Income      5,334,260     3,466,108     1,865,155     1,434,677

    Net Income           $5,175,220    $3,464,687    $1,855,474    $1,433,961

    Diluted Income per
     common share             $0.30         $0.32         $0.11         $0.13

    Weighted average
     common share
     outstanding
      Diluted            17,000,000    10,725,000    17,000,000    10,725,000


About SOKO Fitness & Spa Group, Inc.:

SOKO Fitness & Spa Group, Inc., is a leading operator of fitness clubs and spas in Northeast China. The Company provides programs, services, and products uniquely combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about SOKO's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. SOKO does not undertake any obligation to update any forward- looking statement, except as required under applicable law.

    For more information, please contact:

     The U.S. Office:
     Mu Yan:
     Tel:   +1-484-716-1081
     Email: muyan@sokofitness.com

     China Office:
     Yu Xia
     Tel:   +86-451-8770-2255
     Email: yuxia@sokofitness.com

'/>"/>
SOURCE SOKO Fitness & Spa Group, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Despite Ailing Economy, Planet Fitness Thrives
2. SOKO Fitness & Spa Group, Inc. to hold 2009 Q3 Earnings Call on Apr. 16
3. Golds Gym Passes Massive $22 Billion Fitness Stimulus Package
4. got milk?(R) and the NBA Showcase New National Teen Health and Fitness Initiative at Marina Del Rey Middle School in Los Angeles
5. Equinox Fitness Clubs Continues National Expansion with the Opening of its Second Boston Location
6. HealthFitness Announces New Employee Health Partnership With State of Nebraska
7. Swimmer Dara Torres Sports a White Upper Lip to Praise Milk as Her Post-Exercise Fitness Drink
8. SOKO Fitness & Spa Group, Inc. Opens Xinyang Spa in Harbin
9. Planet Fitness Clubs Offer Memberships for $1
10. New Dakim Campaign Promotes Brain Fitness for Seniors with Elderly Holding Signs Declaring My Brain Is Not Retired
11. Public transit users 3 times more likely to meet fitness guidelines: UBC research
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/23/2017)... ... March 23, 2017 , ... The physicians of KSF Orthopaedic Center ... Houston Area. The new location is located at 2255 E. Mossy Oaks Rd., Suite ... This newest location will provide patients living in the north Houston area (The Woodlands, ...
(Date:3/23/2017)... ... March 23, 2017 , ... Texas Physical Therapy ... 960 Gruene Road in Building 2. The clinic is the group’s second in New ... says opening the company’s second New Braunfels location brings things full circle for the ...
(Date:3/23/2017)... (PRWEB) , ... March 23, 2017 , ... The IoT ... and WiFi connectivity are making a huge impact on businesses and individual consumers alike. ... estimates the IoT will have a value anywhere from $4 trillion to $11 trillion ...
(Date:3/23/2017)... ... ... of adults are unaware of the dangers that infectious bacteria play in mouth disease, while ... a day that dentists recommend. The ramifications of improper oral upkeep go far beyond bad ... 164 million hours of work each year due to dental issues. That is why Mediaplanet ...
(Date:3/23/2017)... ... ... March is National Kidney Month – the perfect time to pause and ... health. Every day, two kidneys filter about 120 to 150 quarts of blood. Put ... waste, regulating fluid levels and blood pressure, supporting bone health and promoting red blood ...
Breaking Medicine News(10 mins):
(Date:3/24/2017)... Research and Markets has announced the ... Strategies" report to their offering. ... Pain Management in the ... their physical pain, emphasizing consumer survey analysis, including trends over ... adults who have selected illnesses/conditions strongly associated with physical pain ...
(Date:3/24/2017)... 24, 2017 ShangPharma, a leading ... cost-effective drug development and discovery services, technology, ... industry, announced today the intent for a ... be consolidating the Contract Research Organizations (CRO) ... ChemPartner. These entities include ChemPartner Shanghai, ChemPartner ...
(Date:3/24/2017)... , Mar. 24, 2017 Research and Markets ... Pipeline Analysis, 2016" report to their offering. ... The IPF pipeline is very strong with a ... Merck & Co., Inc., Biogen and Sanofi are involved in the development ... of which one is in Phase III stage, 15 are in Phase ...
Breaking Medicine Technology: