Innovations - IHRSA

| News & Know How | news
Trustmark Acquires health fitness Corporation
Health Fitness Corporation (NYSE Amex: FIT), a
Minneapolis-based provider of integrated health
and fitness management services, has entered into
a merger agreement with Trustmark Mutual Holding Company,
a health and life insurer and benefits administrator
based in Lake Forest, Illinois.
According to the agreement, Trustmark will buy out, through
its subsidiary, all outstanding Health Fitness Corporation (HFC)
shares of common stock at $8.78 apiece. This price is 22%
above HFC’s closing share price on January 20, the last trading
day prior to the announcement of the merger.
HFC’s board of directors has voted unanimously to accept
the merger and has encouraged shareholders to do so as
well. The transaction was expected to close during the first
quarter of 2010.
“When Trustmark approached Health Fitness, it was immediately
evident that they’d put a great deal of thought and
research into their total population health strategy, and that the
goals and cultures of the two companies align nicely,” reports
Gregg Lehman, HFC’s president and CEO. “We’re excited that
Trustmark’s resources and our combined distribution channels
will support our mission—on a greater scale than previously
third Quarter down, but projections Up!
> While the recently released IHRSA
2009 third Quarter Index demonstrated
a drop in clubs’ financial performance
in several areas, early fourth-quarter
reports indicate that business may now
be on the upswing.
Compared to the third quarter of 2008,
the metrics for the same period in ’09 fell in
the areas of overall revenue, membership/
dues revenue, nondues revenue, and earnings
before interest, taxes, depreciation,
amortization, and rent (EBItDAR). Samestore
sales revenues were down 6.5%, and
same-store membership/dues revenue, by
4.3%. Same-store nondues revenues were
down 9.7%. total membership and nondues
revenue declined by 2.8% and 6.1%,
respectively, and EBItDAR fell by 6.7%.
Despite a lackluster third quarter, health
club operators remained upbeat about
the months ahead. In IHRSA’s September
18 Club Business International | APRIL 2010 | www.ihrsa.org
Monthly trends Survey, 49% of the
respondents said they were anticipating
increased revenues for the fourth quarter.
Company Analysis – 3Q 2008 vs. 3Q 2009
possible—of improving the health and wellbeing of all the
people we serve.”
“Our knowledge of the healthcare system and experience
in complex case-management complement their expertise in
wellness and fitness,” points out Dave McDonough, Trustmark’s
CEO. “Together, we have the foundation for a broad
spectrum of innovative and proven services that help people
improve their health, navigate a complex healthcare system,
and reduce medical costs.” —|
In addition, informal reports from operators
indicate that business was picking up
during the first quarter of 2010. —|
Short takes | Power Systems for Haiti
Power Systems, the fitness-equipment manufacturer, has joined a growing number of clubs and supplier companies contributing to relief
efforts in Haiti. For a limited period, it’s donating $2 for each order placed to the American Red Cross Haiti Relief and Development fund.
“As a group, our employees wanted to participate, and we thought it would be wonderful to also include our customers, as we view them
as part of our family,” says President Julie Pauletto. —|
Mean
Median
percent
change
(mean)
percent
change
(median)
total company revenue $27.8 million $6.6 million 2.2% -3.8%
total membership/
dues revenue
$20.4 million $4.2 million 3.3% -2.8%
total nondues revenue $7.1 million $2.0 million 0.0% -6.1%
Same-store sales revenue $8.98 million $5.27 million -4.2% -6.5%
Same-store membership/
dues revenue
Same-store
nondues revenue
Gregg
lehman
Dave
McDonough
$6.41 million $3.91 million -3.0% -4.3%
$2.56 million $1.59 million -7.1% -9.7%
EBItDAR $9.91 million $1.56 million 1.5% -6.7%