MINNEAPOLIS -- Health Fitness Corp. grew its third quarter 2009 revenue by 6.9 percent, according to financials released by the company today.
The Minneapolis-based company reported revenue of $19.8 million in third quarter 2009, compared to third quarter 2008 revenue of $18.5 million.
“We are pleased with 6.9 percent quarterly revenue growth in light of a tough economy,” Gregg Lehman, president and chief executive officer, said in a conference call today with analysts.
Gross profit for the quarter increased 7.6 percent to $6.4 million compared to $6 million in third quarter 2008. Gross margin for the quarter was 32.6 percent compared to 32.4 percent in last year’s third quarter. The company reported net earnings of $0.91 million compared to $0.84 million for third quarter 2008.
The company had $4.8 million of new potential annualized revenue, net of contract terminations, during the quarter from six new commitments. The company’s new commitments include a health management commitment from a large insurance plan for $3 million of potential annualized revenue. Service implementation for that will begin in July 2010. Health Fitness Corp. also received a fitness management commitment from an auto manufacturer, representing $1.6 million of potential annualized revenue, which will begin service implementation in January 2010.
“Going into the fourth quarter and 2010, we are optimistic about the potential for continued revenue growth,” Lehman said in a release from the company.
Health Fitness is a finalist in one fitness management proposal and 12 health management proposals, representing potential annualized revenue of $10.7 million.
“Our future revenue growth will continue to be driven by our ability to help self-insured employers reduce the cost of employee health care,” Lehman said. “In addition to the University of Louisville ROI study we published earlier this year, we are currently completing several new ROI analyses that initially show returns ranging from $2.25 to $3.62 for every $1 invested. We are excited about these initial results because they affirm the proposition that health improvement services can reduce the impact of health care costs. We will disclose more details about these successful outcomes in future issue briefs and other communications.”