US Market News
2月前
Medifast Announces First Quarter 2026 Financial ResultsMay 4, 2026 4:05 PM
Business Wire Medifast (NYSE: MED), the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system, today reported results for the first quarter ended March 31, 2026. First Quarter 2026 Revenue of $76.0 million, with revenue per active earning coach of $5,432 Independent active earning coaches of 14,000 Net loss of $2.1 million, or $0.19 per diluted share ("EPS") Cash, Cash Equivalents, and Investment Securities of $168.9 million with no debt "We are encouraged by the continued progress we are seeing as we execute our metabolic health strategy, including a second consecutive quarter of year-over-year coach productivity growth, strong coach leadership advancement, and high field engagement. These are metrics that have historically been leading indicators of future growth. Backed by our differentiated science, coach-led model, and a disciplined approach to managing costs, we believe we are well positioned to drive improved performance through the remainder of 2026 and a return to sustainable, long-term growth in the years ahead,” said Dan Chard, CEO of Medifast. First Quarter 2026 Results First quarter 2026 revenue decreased 34.3% to $76.0 million from $115.7 million for the first quarter of 2025 primarily driven by a decrease in the number of active earning coaches. The total number of active earning coaches decreased 44.9% to 14,000 compared to 25,400 for the first quarter of 2025, primarily driven by continued pressure with client acquisition reflecting broader challenges in the operating environment, including rapid adoption of GLP-1 medications for weight loss. While the company continues its transformation to focus on metabolic health, it expects the number of active earning coaches to continue to decline in 2026. The average revenue per active earning coach was $5,432, compared to $4,556 for the first quarter last year, an increase of 19.2% which was driven by greater alignment of the company's network of coaches, prioritizing productive coaches and efficient coach network structures. Gross profit decreased 38.6% to $51.8 million from $84.2 million for the first quarter of 2025. The decrease in gross profit was primarily attributable to lower sales volumes. The company's gross profit as a percentage of revenue was 68.1% compared to 72.8% for the first quarter of 2025. The decrease in gross profit as a percentage of revenue was primarily driven by the loss of leverage on fixed costs. Selling, general, and administrative expenses (“SG&A”) decreased 35.6% to $55.1 million compared to $85.5 million for the first quarter of 2025. The decrease in SG&A was primarily due to a $16.2 million decrease in coach compensation on lower volume and fewer active earning coaches, a $5.6 million decrease in company-led marketing related expenses, a one-time $2.2 million gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, and a $2.0 million decrease in employee compensation resulting from the realignment of the employee base to lower revenue levels. As a percentage of revenue, SG&A decreased 150 basis points year-over-year to 72.4% of revenue, as compared to 73.9% for the first quarter of 2025. The decrease in SG&A as a percentage of revenue was primarily due to approximately 470 basis points of decreased company-led marketing related expenses and 240 basis points of one-time gain on the sale of the company's Maryland Distribution Center building and land previously classified as held for sale, partially offset by 620 basis points of loss of leverage on fixed costs due to lower sales volume. The company's loss from operations for the period was $3.3 million compared to $1.3 million in the prior year period. As a percentage of revenue, loss from operations was 4.3% for the first quarter of 2026 compared to 1.1% in the prior year comparable period due to the factors described above impacting revenue and SG&A expenses. Other income decreased 24.3% to $1.4 million from $1.8 million for the first quarter of 2025 primarily due to unrealized gains on the company's investment in LifeMD common stock in the prior year period. The company sold its investment in LifeMD during the quarter ended June 30, 2025. Income tax expense for the period was $0.2 million, an effective rate of negative 9.3%, as compared to $1.3 million for the first quarter of 2025, an effective rate of 246.8%. Due to the existence of a full valuation allowance against its deferred tax assets recorded as of December 31, 2025, the Company calculated income tax expense for the current period based on actual results for the quarter. As a result, the Company’s income tax provision for the quarter reflects discrete items, primarily state income taxes. The decrease in the effective tax rate was primarily driven by the increased loss incurred in the March 31, 2026 period and the valuation allowance on the net deferred tax assets. In the first quarter of 2026, the company's net loss was $2.1 million, or $0.19 per share, based on approximately 11.0 million shares of common stock outstanding compared to a net loss of $0.8 million, or $0.07 per diluted share, based on approximately 10.9 million shares of common stock outstanding in the prior year period. Capital Allocation and Balance Sheet The company’s balance sheet remains strong with cash, cash equivalents and investment securities of $168.9 million and no debt as of March 31, 2026, compared to $167.3 million in cash, cash equivalents and investment securities and no debt at December 31, 2025. Working capital as defined as current assets less current liabilities as of March 31, 2026 was $160.4 million, compared to $158.7 million of working capital at December 31, 2025. Outlook The company expects second quarter 2026 revenue to be in the range of $60 million to $80 million and second quarter 2026 loss per share to be in the range of $0.50 to $1.00. The company expects full year 2026 revenue to be in the range of $270 million to $300 million and full year 2026 loss per share to range from $1.55 to $2.75. Conference Call Information The conference call is scheduled for today, Monday, May 4, 2026 at 4:30 p.m. ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1759153&tp_key=64a2fbe076 and will be archived online and available through August 4, 2026. In addition, listeners may dial (201) 389-0879 to join via telephone. A telephonic playback will be available from 7:30 p.m. ET, May 4, 2026 through May 11, 2026. Participants can dial (412) 317-6671 and enter passcode 13759893 to hear the playback. About Medifast®: Medifast (NYSE: MED) is the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to help address the challenges of metabolic dysfunction, the company’s holistic approach integrates personalized plans, scientifically developed products and a framework for habit creation — all supported by a dedicated network of independent coaches. Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through a targeted reset. Research demonstrates the company’s comprehensive system activates strong and targeted fat burn to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity. Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making Healthy Lifestyle Second Nature®. For more information, visit Medifastinc.com. MED-F Forward Looking Statements Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the Company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release. MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share amounts) Three months ended March 31, 2026 2025 Revenue $ 76,044 $ 115,728 Cost of sales 24,288 31,483 Gross profit 51,756 84,245 Selling, general, and administrative 55,051 85,507 Loss from operations (3,295 ) (1,262 ) Other income Interest income 1,379 1,301 Other income (expense) (25 ) 487 1,354 1,788 Income (loss) before provision for income taxes (1,941 ) 526 Provision for income taxes 181 1,298 Net loss $ (2,122 ) $ (772 ) Loss per share - basic $ (0.19 ) $ (0.07 ) Loss per share - diluted $ (0.19 ) $ (0.07 ) Weighted average shares outstanding Basic 11,006 10,948 Diluted 11,006 10,948 MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(U.S. dollars in thousands, except par value) March 31, 2026 December 31, 2025 ASSETS Current Assets Cash and cash equivalents $ 71,529 $ 89,303 Inventories, net 21,403 20,228 Investments 97,417 77,970 Prepaid expenses and other current assets 6,965 9,066 Total current assets 202,630 201,683 Property, plant and equipment, net of accumulated depreciation 29,643 31,230 Right-of-use assets 12,921 7,232 Other assets 6,852 7,828 TOTAL ASSETS $ 252,046 $ 247,973 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses $ 38,264 $ 38,359 Current lease obligations 3,920 4,603 Total current liabilities 42,184 42,962 Lease obligations, net of current lease obligations 12,181 6,091 Total liabilities 54,365 49,053 Stockholders' Equity Common stock, par value $.001 per share: 20,000 shares authorized; 11,119 and 10,991 issued and outstanding at March 31, 2026 and December 31, 2025, respectively 11 11 Additional paid-in capital 41,488 40,406 Accumulated other comprehensive income 33 234 Retained earnings 156,149 158,269 Total stockholders' equity 197,681 198,920 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 252,046 $ 247,973 View source version on businesswire.com: https://www.businesswire.com/news/home/20260504656854/en/ Investor Contact:
Medifast, Inc.
Steven Zenker
InvestorRelations @gbomill2 Original: Medifast Announces First Quarter 2026 Financial Results
US Market News
4月前
Medifast Announces Cooperation Agreement with Steamboat CapitalMarch 20, 2026 8:30 AM
Business Wire
Company Agrees to Nominate Parsa Kiai and Jeff Rose as Director Candidates at 2026 Annual Meeting of Stockholders
Medifast, Inc. (NYSE: MED), the metabolic health and wellness company known for its science-backed, coach-guided lifestyle system, today announced the company's Board of Directors has agreed to nominate Parsa Kiai and Jeff Rose from Steamboat Capital Partners LLC as independent director candidates to stand for election at the company’s 2026 Annual Meeting of Stockholders, which is provisionally scheduled for May 19, 2026. These nominations are pursuant to a Cooperation Agreement entered into between the company and Steamboat Capital, which beneficially owns above 5% of the company’s outstanding shares.
The Board of Directors has determined that Medifast’s directors Jeffrey Brown and Michael Hoer will not stand for reelection. Medifast Chairman & Chief Executive Officer Dan Chard will continue in his current role, and as previously announced, will step down as CEO on June 1, 2026, while remaining Chairman. Nicholas Johnson, President of Medifast, is expected to succeed Dan Chard as CEO following his departure.
"We are pleased to nominate these talented independent leaders for election to our Board of Directors at the upcoming Annual Meeting. Their experience and perspectives would complement the work already underway to support Medifast’s development and strategic priorities as a metabolic health company," said Mr. Chard. "Our team remains focused on returning the company to profitability, growing our business and independent coach network, and maintaining a rigorous commitment to scientific innovation in this space. We have been executing with discipline against this strategy, and we look forward to a productive collaboration with Steamboat Capital as we continue our efforts to build on that progress and accelerate improvements in financial performance to maximize returns for our stockholders."
Mr. Chard continued, “On behalf of the entire Board, we also want to thank Jeffrey Brown and Michael Hoer for their service on the Board and for their many contributions to Medifast.”
"We are pleased to have reached this agreement through a constructive and collaborative dialogue with the Medifast Board and management team," said Parsa Kiai Managing Partner and Chief Investment Officer at Steamboat Capital. "We have a strong appreciation for the progress the company is making and believe the market is significantly undervaluing the company’s substantial financial and intrinsic assets as well as its long-term potential. We welcome the opportunity to work with the Board to support Medifast’s continued evolution as a business. Medifast’s independent coach network and comprehensive metabolic health system represent a differentiated and compelling platform, and we’re looking forward to working together in a spirit of collaboration to build on this foundation, drive sustainable profitability, and unlock long-term value for stockholders."
Pursuant to the Cooperation Agreement, Steamboat Capital and certain of its affiliates have agreed to certain customary standstill and voting provisions through the company's 2027 Annual Meeting of Stockholders. The agreement will be filed on a Form 8-K with the Securities and Exchange Commission.
About Parsa Kiai
Parsa Kiai is the Managing Partner and Chief Investment Officer of Steamboat Capital. Mr. Kiai has 22 years of investing and corporate finance experience with expertise in capital allocation. He is responsible for the overall direction of the business of Steamboat Capital and managing the portfolios of the company's clients. Mr. Kiai graduated from Cornell University in 2003 and worked at Goldman, Sachs & Co. in the investment banking division before starting at Steamboat Capital in 2012.
About Jeff Rose
Jeffrey Rose is Chief Operating Officer and Chief Financial Officer of Steamboat Capital. Mr. Rose has 23 years of financial experience and has been a member of the New York Bar for over 30 years. Mr. Rose practiced corporate law for seven years, was Chief Financial Officer and General Counsel of Conquest Capital, a $1 billion alternative investment manager and served on the Investment Committee of GAM’s multi-billion dollar of funds prior to joining Steamboat Capital in 2014. Mr. Rose graduated from Queens College in 1990, NYU Law School in 1993 and Columbia Business School in 2002.
About Medifast
Medifast (NYSE: MED) is the health and wellness company known for its science-backed, coach-guided lifestyle system. Designed to address the challenges of metabolic dysfunction, the company's holistic approach integrates personalized plans, scientifically developed products and a framework for sustainable habit creation — all supported by a dedicated network of independent coaches.
Driven to improve metabolic health through advanced science and comprehensive behavioral support, Medifast has introduced Metabolic Synchronization®, a breakthrough science that reverses metabolic dysfunction through targeted metabolic reset. Research demonstrates that the company's comprehensive system activates strong and targeted fat burning to enhance metabolic health and body composition by reducing visceral fat, preserving lean mass and protecting muscle integrity.
Backed by more than 40 years of clinical heritage, Medifast continues to advance its mission of Lifelong Transformation, Making a Healthy Lifestyle Second Nature®. For more information, visit www.MedifastInc.com.
Forward Looking Statements
Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent coaches; industry competition and new weight loss products, including weight loss medications such as GLP-1s, or services; Medifast’s health or advertising related claims by clients; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by coaches; effectiveness of the Company's strategic pivot towards metabolic health; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; competitors use of artificial intelligence to make their offer more competitive; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. Although Medifast believes that the expectations, statements and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260320613507/en/
Media contact: Jessica Oring, Jessica.Oring@medifastinc.com
Investor contact: Steven Zenker, Steven.Zenker@medifastinc.com
Original: Medifast Announces Cooperation Agreement with Steamboat Capital
XV19
20年前
November 24, 2006 - 1:29 PM EST
MED 13.33 0.28
Today 5d 1m 3m 1y 5y 10y
SYX 12.81 -0.70
Today 5d 1m 3m 1y 5y 10y
WMT 45.84 -0.26
Today 5d 1m 3m 1y 5y 10y
Schaeffer's Daily Market Blog Features: Intel, Wal-Mart Stores, Medifast, Systemax, and Family Dollar
Among the stocks featured in the November 24 edition of Schaeffer's Market Blog are Intel (NASDAQ:INTC), Wal-Mart Stores (NYSE:WMT), Medifast (NYSE:MED), Systemax (NYSE:SYX), and Family Dollar (NYSE:FDO). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .
Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/.
12:12 PM Medifast Short Sellers Getting Squeezed?
We could be seeing some short-covering activity on this day after Thanksgiving for weight and disease management products firm Medifast (NYSE:MED). Shares of the company have rallied nearly nine percent so far today, taking the stock above former resistance at the 11 level. According to Briefing.com, the investors are jumping on the equity due to a positive mention in a newsletter. Meanwhile, about 9.6 percent of the stock's float is sold short, and today's rally could be putting pressure on these bearish investors to buy back their positions. However, with today's light post-holiday volume, it will be interesting to see if MED holds today's gains into next week.
10:26 AM Intel Pulls Back on Restructuring News
Early yesterday morning, semiconductor bellwether Intel (NASDAQ:INTC) announced that it is reviewing the possibility of closing down or reducing the staff at its South Korean operations as part of its restructuring efforts. While it is a light trading day due to the Black Friday sales "holiday" in the States, INTC finds itself falling about one percent on news that normally boosts a company's shares. Technically, the stock is coming off a near-term top in the 22.50 area, a region that has troubled the security since late January. Furthermore, optimism is running high on the Street, with 18 of the 28 analysts covering the shares rating them a "buy" or better. Investors might want to keep an eye on short-term support in the 21.50 region, as a break of this level could indicate more downside potential over the short to intermediate term.
10:13 AM A Few Pesos More
Shares of Wal-Mart Stores (NYSE:WMT) have dipped about one percent this morning after The New York Times reported that the retailing giant received the permission from Mexico to open a bank in the country. Currently, WMT is pinned between its 10-day and 20-day moving averages, where it has spent the past seven trading sessions hovering above support at the 47.50 level. In sentiment, there mixed feelings toward the retailer on the Street, as eight of the 16 analysts covering the shares rate them a "hold," while the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.80 ranks above 84 percent of those taken during the past year. However, with WMT dropping some 8.6 percent since late October, this pessimism is to be expected.
9:53 AM Systemax Jumps on Earnings News
After the close on Wednesday, Systemax (NYSE:SYX) announced second-quarter earnings of $7.11 million, or 19 cents per share, compared to $1.52 million, or four cents per share, for the same period a year ago. Sales for the quarter rose eight percent to $547.2 million. The company also said it intends to release third-quarter results before the end of December. The security has gapped more than 14 percent higher this morning, jumping above former resistance at the 12.50 level. The equity is poised to finish the week back above its 10-week moving average as it bounces off the support of its ascending 20-week trendline.
9:45 AM Family Dollar Misses Extension Deadline
This morning, Family Dollar (NYSE:FDO) announced that it won't file its annual report by the Friday extended deadline, due to its continuing investigation into stock options. The board committee formed to investigate stock-option practices hasn't completed its work. At last check, the security was down more than one percent at $28.62 after being rejected yet again at the 29 level. This region is currently home to the stock's 10-week moving average, which has begun to roll over. This trendline could continue to hinder the equity's rally attempts during the near term. However, the shares have potential support at their 10-day and 20-day moving averages since the 28.30 region.
For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1.
Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1.
About Schaeffer's Investment Research (www.SchaeffersResearch.com)
Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .
Schaeffer's, Cincinnati
Joseph Hargett, 513-589-3800
releases@sir-inc.com
Source: Business Wire (November 24, 2006 - 1:29 PM EST)
News by QuoteMedia
www.quotemedia.com
XV19
20年前
November 14, 2006 - 4:10 PM EST
Medifast Announces Record Third-Quarter and YTD Revenues and Profits
OWINGS MILLS, Md., Nov. 14 /PRNewswire-FirstCall/ --Medifast, Inc. (NYSE: MED) announced today third quarter results for the period ended September 30, 2006. For the quarter-ended September 30, 2006, Medifast reported revenue of $19.6 million, a 79% increase from $11 million in the third quarter of 2005.
The Company reported net income of $1,490,000, or $0.12 per basic share ($0.11 per diluted share), versus $607,000 or $0.05 per basic share ($0.05 per diluted share) in 2005. Net income in the third quarter of 2006 was positively impacted by a tax benefit received as a result of the Company's investment in infrastructure in prior years. The third quarter of 2006 represented the Company's 28th consecutive quarter of profitability.
For the nine months ended September 30, 2006, Medifast reported revenue of $58.8 million, an increase of 97% from $29.9 million for the nine months ended September 30, 2005. The Company reported net income of $4.6 million, or $.37 per basic share ($.34 per diluted share), versus $1.6 million or $.13 per basis share ($.13 per diluted share) in 2005.
The Company had stockholders' equity of $27.2 million and working capital of $13 million at September 30, 2006, compared to $21.3 million and $9.6 million at September 30, 2005, respectively.
'We are pleased with the third quarter results, which were driven by our growing customer base within a multi-channeled business. Our customer acquisition strategy is driving brand awareness, which benefits our direct to consumer business and also drives customers and business opportunity leads into our direct sales network while fueling significant walk-ins to our new medically supervised clinics, which are now operational in test markets. We believe that our diverse infrastructure model, which does not rely on a single distribution method, will allow Medifast to benefit long term in the over $40 billion weight loss category. In a customer driven world, Medifast is positioned to handle the needs of all types of customers. Whether a person is looking to lose weight utilizing the advice of a nutritionist, the support of a health coach, share their experience with others in an online community or stay under medical supervision in a clinic or doctor's office, Medifast provides a program to cater to the individual needs of the customer,' said Michael S. McDevitt, Medifast President and CFO.
'Medifast combines products and programs that have been clinically proven and trusted by physicians for over 25 years with a 21st century business model that recognizes that every consumer is an individual. Medifast is in the business of making people healthy in a time when we are experiencing an obesity epidemic in our country. Medifast is committed to providing a lasting solution for health and we are excited about expanding our programs to include broader recommendations for using Medifast for long term health as we move forward,' stated Bradley T. MacDonald, Chairman and CEO.
2006 Financial Guidance
The company expects to generate revenue of $70 to $72 million for the year with after-tax earnings of $0.38 to $0.40 per diluted share.
Third Quarter Conference Call
The Company will hold a conference call and webcast at 5:00 PM EST on November 14, 2006 to discuss second quarter results.
Interested participants should call (866) 700-6979 when calling within the United States or (617) 213-8836 when calling internationally. Please refer to pass code 61684562. There will be a playback available as well. To listen to the playback, please call (888) 286-8010 when calling within the United States or (617) 801-6888 when calling internationally. Please use pass code 85452066 for the replay. The replay will be available until February 21, 2007.
The webcast may be accessed via the Company's web site at http://www.medifastdiet.com. Interested parties should go to the section marked 'Investor Relations' to listen to the call. The webcast can be accessed until February 21, 2007.
Medifast has been helping people lose weight and achieve better health for 25 years. Its meal replacement foods have been proven effective in multiple clinical studies, recommended by over 15,000 physicians and used by more than 1 million customers. Medifast offers its customers world-class customer service and nutrition support.
This release contains forward-looking statements which may involve known, and unknown risks, uncertainties and other factors that may cause Medifast's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectation on this date.
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2006 December 31, 2005
(Unaudited) (Audited)
ASSETS
Current assets:
Cash $1,114,000 $1,484,000
Accounts receivable-net of
allowance for doubtful accounts
of $100,000 764,000 985,000
Income tax refund receivable 1,048,000 -
Inventory 8,003,000 5,475,000
Investment securities 2,420,000 2,700,000
Deferred compensation 640,000 525,000
Prepaid expenses and other
current assets 2,927,000 3,273,000
Note receivable - current 230,000 -
Deferred tax asset 90,000 -
Total Current Assets 17,236,000 14,442,000
Property, plant and equipment - net 11,578,000 9,535,000
Trademarks and intangibles - net 4,690,000 6,508,000
Deferred tax asset, net of current
portion 282,000 -
Note receivable, net of current
portion 1,305,000 -
Other assets 37,000 60,000
TOTAL ASSETS $35,128,000 $30,545,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $2,661,000 $2,263,000
Income taxes payable 501,000 899,000
Line of credit 612,000 633,000
Current maturities of long-term debt 502,000 561,000
Deferred tax liability - current - 90,000
Total current liabilities 4,276,000 4,446,000
Long-term debt, net of current
portion 3,603,000 3,977,000
Deferred tax liability - non-current - 101,000
Total Liabilities 7,879,000 8,524,000
Stockholders' Equity:
Common stock; par value $.001 per
share; 20,000,000 authorized;
13,544,481 and 12,782,791 shares
issued and outstanding, respectively 14,000 13,000
Additional paid-in capital 26,326,000 21,759,000
Accumulated other comprehensive income 208,000 282,000
Retained Earnings 5,787,000 1,149,000
32,335,000 23,203,000
Less: cost of 240,749 and 210,902
shares of common stock in treasury (1,565,000) (1,075,000)
Less: unearned compensation (3,521,000) (107,000)
Total Stockholders' Equity 27,249,000 22,021,000
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $35,128,000 $30,545,000
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended Three Months Ended
September 30, September 30,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue $58,779,000 $29,865,000 $19,642,000 $10,985,000
Cost of sales 14,334,000 7,370,000 4,705,000 2,675,000
Gross Profit 44,445,000 22,495,000 14,937,000 8,310,000
Selling, general, and
administration 36,880,000 19,163,000 12,967,000 7,044,000
Income from operations 7,565,000 3,332,000 1,970,000 1,266,000
Other income/(expense)
Interest expense (271,000) ( 97,000) (90,000) (47,000)
Loss on sale of
Consumer Choice
Systems (323,000) - - -
Stock compensation
expense (346,000) - (164,000) -
Interest income 137,000 - 48,000 -
Other income (expense) 184,000 10,000 24,000 7,000
Income before provision
for income taxes 6,946,000 3,245,000 1,788,000 1,226,000
Provision for income
tax (expense) (2,307,000) (1,367,000) (298,000) (609,000)
Net income 4,639,000 1,878,000 1,490,000 617,000
Less: Preferred stock
dividend requirement - (291,000) - (10,000)
Net income $4,639,000 $1,587,000 $1,490,000 $607,000
Basic earnings per
share $0.37 $0.13 $0.12 $0.05
Diluted earnings per
share $0.34 $0.13 $0.11 $0.05
Weighted average
shares outstanding -
Basic 12,657,842 12,235,475 12,767,629 12,595,175
Diluted 13,493,421 12,438,531 13,603,208 12,989,147
SOURCE Medifast, Inc.
Source: PR Newswire (November 14, 2006 - 4:10 PM EST)
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