OWINGS MILLS, Md., Oct. 3, 2016 /PRNewswire/ -- Medifast, Inc.®
(NYSE: MED), a leading United
States manufacturer and provider of clinically proven
weight-loss and healthy living products and programs, today
announced that Daniel ("Dan") R. Chard has been appointed as Chief
Executive Officer and as a member of Medifast's Board of Directors,
effective today, bringing the size of the board to 10 members.
Mr. Chard succeeds Michael
MacDonald, who will stay with Medifast in the role of
Executive Chairman of the Board. Mr. Chard was selected by a
search committee led by Mr. MacDonald and Medifast Independent
Director, Glenn Welling, and his
appointment as CEO was unanimously approved by the Company's Board
of Directors. The Company also announced today that it
expects to meet or exceed third quarter guidance for revenue from
continuing operations in the range of approximately $64.0 million to $67.0 million and earnings per
diluted share from continuing operations in the range of
$0.43 to $0.46 per diluted share.
![Medifast logo. Medifast logo.](http://photos.prnewswire.com/prnvar/20120613/NE24271LOGO-b)
"This is a time of exciting transition for Medifast as we
further enhance the strength of our executive team with the
appointment of Dan as CEO. We are fortunate to gain a seasoned
executive in Dan, who possesses extensive direct selling industry
experience growing Nu Skin Enterprises, Inc. as well as at
PartyLite, an affiliate of a portfolio company of The Carlyle
Group. This, along with a strong background in consumer
products, makes him ideally suited to help us take our business to
the next level and accelerate our growth. Dan's unique
combination of leadership skills across operational, international,
and marketing roles will be a tremendous asset to our team as we
build upon the success of Take Shape For Life® and further optimize
our unique multi-channel distribution model. We have made
tremendous progress advancing our strategic objectives and creating
value for our stockholders. With our financial performance,
balance sheet position, executive talent, and momentum in Take
Shape For Life with the recent OPTAVIA™ lifestyle brand and
product line introduction, Medifast is in the strongest position in
our Company's history," said MacDonald. "My passion for this
business, our partners, Health Coaches, franchisees, customers, and
employees remains as strong as ever, and I look forward to working
closely with Dan and the rest of the management team in growing the
Company's business."
Mr. Chard joins Medifast with over 25 years of direct selling
and consumer products experience. Most recently, he served as
President & Chief Operating Officer of PartyLite, an affiliate
of a portfolio company of The Carlyle Group. Over his 17 year
tenure at Nu Skin Enterprises, Inc. ("Nu Skin"), Mr. Chard held
various leadership roles, including Executive Vice President of
Distributor Success and then President, Global Sales &
Operations from 2006 to 2015. He served as President of Nu
Skin Europe from 2004 to 2006 and in many other roles of increasing
responsibility since he joined the company in 1998. Prior to
Nu Skin, Mr. Chard held marketing leadership roles at PUR Recovery
Engineering and The Pillsbury Company. He holds a Bachelor of
Arts in Economics from Brigham Young
University and received his Masters of Business
Administration from the University of Minnesota.
"I am honored to succeed Mike as Medifast's CEO and pleased to
have his continued support and guidance," said Chard. "With an
experienced leadership team and dedicated Health Coaches,
franchisees, business partners, customers, and employees, Medifast
is well positioned to capitalize on numerous growth opportunities
across its distribution channels both domestically and
internationally. I look forward to continuing to build Medifast's
marketplace position, advancing the strong momentum we have in Take
Shape For Life, investing strategically in the key initiatives, and
maintaining operational excellence as we grow the business over the
next several years."
In connection with Mr. Chard's appointment as Chief Executive
Officer, the Compensation Committee of the Company's Board of
Directors approved a one-time sign-on equity award of (i)
restricted shares with a $600,000
value on grant date that will vest one-third per year on each of
the first, second, and third anniversaries of the grant date, and
(ii) 210,000 deferred shares that will vest based upon the
achievement of certain pre-established performance goals over a
three year performance period (which may be extended by six months
in certain circumstances), generally as follows: 70,000 would vest
upon achievement of an average annual TSR of at least 15% at the
end of three years or a stock price of $56.82; an additional 70,000 would vest upon
achievement of an average annual TSR of at least 25% at the end of
three years or a stock price of $72.96; and an additional 70,000 would vest upon
achievement of an average annual TSR of at least 35% at the end of
three years or a stock price of $91.91. The award was granted outside of
the Company's current equity compensation plan and is intended to
qualify as an "employment inducement award" within the meaning of
New York Stock Exchange Listing Rule 303A.08, which requires public
announcement of inducement awards.
MED-G
About Medifast
Medifast (NYSE: MED) is the leading easy-to-use, clinically
proven provider of weight-loss and healthy living products and
programs. Medifast aims to help customers lead a healthier
lifestyle through a holistic approach to weight-loss and weight
management, nutrition education and fitness. Medifast's proven
results are based on the use of structured meal plans featuring
Medifast Meals, which are nutritionally designed to assist
customers with successful weight-loss and weight
management. The company sells its products and programs via
four unique distribution channels: 1) the web and national call
centers, 2) the Take Shape For Life personal coaching division, 3)
Medifast Weight Control Centers, and 4) a national network of
physicians. The company also offers sports nutrition products under
the brand Dual Fuel™ Nutrition that are formulated to provide
athletes and active individuals with the right balance of
carbohydrates and high quality protein for top
performance. Medifast was founded in 1980 and is located
in Owings Mills, Maryland. For more information, log
onto www.MedifastNow.com.
About Take Shape For Life:
Take Shape For Life is a thriving, vibrant community that is
redefining the path to wellbeing and creating Optimal Health™
through a network of Independent Health Coaches, who provide
support and personal encouragement to help Clients safely and
effectively reach and sustain a healthy weight, and adopt habits
for a lifetime of health. Within the Trilogy of Optimal Health,
Take Shape For Life offers individuals an opportunity to create
sustainable health in all areas of their lives – building a healthy
body, developing a healthy mind, and generating healthy
finances. Take Shape For Life provides Health Coaches
with tools and support; an innovative and leading edge lifestyle
program; training and knowledge; and best of all, a community of
like-minded individuals working toward the common goal of getting
America healthy. In 2015, Take Shape For Life, and its parent
company Medifast were ranked in the top 20 of the Direct Selling
Association's largest companies, and is a Code of Ethics
member.
Forward Looking Statements
Please Note: This release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally can be identified by use
of phrases or terminology such as "intend" or other similar words
or the negative of such terminology. Similarly, descriptions of
Medifast's objectives, strategies, plans, goals or targets
contained herein are also considered forward-looking statements.
Medifast believes this release should be read in conjunction with
all of its filings with the United States Securities and Exchange
Commission and cautions its readers that these forward-looking
statements are subject to certain events, risks, uncertainties, and
other factors. Some of these factors include, among others,
Medifast's inability to attract and retain independent Health
Coaches and Members, stability in the pricing of print, TV and
Direct Mail marketing initiatives affecting the cost to acquire
customers, increases in competition, litigation, regulatory
changes, and its planned growth into new domestic and international
markets and new channels of distribution. 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 latest Annual Report on Form 10-K and Quarterly Report
on Form 10-Q, and other filings filed with the United States
Securities and Exchange Commission, including its current reports
on Form 8-K. All of the forward-looking statements contained herein
speak only as of the date of this release.
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SOURCE Medifast, Inc.