Medifast, Inc. (NYSE: MED), a provider of leading clinically proven portion-controlled weight-loss programs, announced today third quarter financial results for the period ended September 30, 2009.
Third Quarter 2009 highlights included:
- Third quarter revenues increased 65% to $45.0 million, compared to 2008;
- Diluted EPS for the quarter increased 109% to $0.23 versus $0.11 year-over-year;
- Direct sales segment, Take Shape for Life, increased sales 105% year-over-year for the quarter;
- Medifast Weight Control Centers quarterly revenues increased 106%;
- Direct response quarterly revenues increased 14% versus a year ago;
- Operating margins improve to 12.4% versus 8.8% in the comparable quarter;
- Generated Free Cash Flow of $5.3 million.
For the third quarter ended September 30, 2009, Medifast reported revenue of $45.0 million, a 65% increase over the $27.3 million reported in the third quarter of 2008. The Company reported net income of $3.4 million, or $0.23 per fully diluted share, compared with $1.5 million, or $0.11 per fully diluted share in the third quarter of 2008, a diluted EPS increase of 109%.
For the nine months ended September 30, 2009, Medifast reported revenue of $119.4 million, an increase of 49% from the $80.0 million reported for the nine months ended September 30, 2008. The Company reported net income of $8.9 million, or $0.60 per fully diluted share, for the nine month period, versus $4.5 million, or $0.32 per fully diluted share, in 2008.
"We are extremely pleased to report yet another quarter of record revenues and net income," commented Michael S. McDevitt, Chief Executive Officer of Medifast, Inc. "The Medifast program is clearly resonating with consumers as a strong value proposition with the best possible support options for rapid and safe weight loss, as well as the recommendation of 20,000 physicians over 30 years. The growth reported in our direct sales, direct response and clinics segments re-enforces our belief that the outlook for all distribution channels remains strong."
Revenues in the direct sales segment, Take Shape for Life, increased 105% to $27.9 million compared with $13.6 million in the same quarter of 2008. Revenue growth was driven by an increase in the number of active health coaches, which resulted in increased customer product sales. The number of active health coaches during the third quarter increased to approximately 5,800 compared with 3,200 during the period a year ago, an increase of 81% and up from 4,650 at the end of the second quarter of 2009. The net increase of 1,150 health coaches during the quarter is a record for the company and should lead to continued strong growth in the segment. The growth in Take Shape for Life is a result of the hard work, commitment and passion of our coaches. To help fuel this growth, the Company continued to improve tools and training, particularly during its July 2009 National Convention. The unique opportunity to supplement income while helping family, friends and associates improve their quality of life continues to gain significant traction.