MINNEAPOLIS, MN — Health Fitness Corp.'s financial results for the second quarter and six months ended June 30, 2004, showed a boost due to its acquisition of Johnson & Johnson's Health & Fitness Services Business.
For the quarter ended June 30, revenue increased 69.8 percent to $13 million from $7.7 million for the same quarter last year. Gross profit increased 117.7 percent to $3.4 million from $1.6 million for the same quarter last year. As a percent of revenue, gross profit increased to 26.2 percent compared to 20.4 percent for the second quarter last year.
For the six-month period, revenue increased 69.1 percent to $25.8 million from $15 million for the same period last year. Gross profit increased 101.8 percent to $6.5 million from $3.2 million for the same period last year. As a percent of revenue, gross profit increased to 25.3 percent compared to 21.2 percent for the same period in 2003. Jerry Noyce, HFC CEO and president, said the gains were primarily attributed to HFC's December 2003 acquisition of the Health & Fitness Services Business of Johnson & Johnson Health Care Systems Inc. Also contributing to these gains was growth from HFC's Health Enhancement Program (HEP) services. “Our recent acquisition of the Johnson & Johnson health and fitness business has clearly strengthened our financial position,” Noyce said. “We are also encouraged by the progress being made in selling HEP services at our managed fitness centers. As the leading provider of corporate health management services, our goal is to build upon our current success by helping companies address the issues of rising healthcare costs and enable them to establish work environments focused on employee health and productivity.”