August 09, 2017
Medifast Q2 2017 Revenue Exceeds Company Guidance
Owings Mills, Maryland-based Medifast Inc., a leading provider of clinically studied healthy living products and programs, today reported financial results for the second quarter ended June 30, 2017. Revenue increased 6.4 percent to $75.7 million from revenue of $71.1 million in the second quarter of 2016.
“Our second quarter financial results reflect the successful execution of our strategic growth initiatives as our efforts have continued to position our business for an accelerated rate of growth,” said Daniel R. Chard, Medifast’s CEO. “We are very pleased to generate revenues and profitability above our expectations for the quarter. We have positive business momentum with our recently rebranded OPTAVIA coach community, and when combined with our scalable infrastructure and strong balance sheet, we believe we are well positioned for future growth and to create value for our shareholders.”
Net income in the second quarter of 2017 was $7.6 million, or 63 cents per diluted share, based on approximately 12.1 million shares outstanding. Second quarter 2016 net income was $3.4 million, or 29 cents per diluted share based on approximately 11.9 million shares outstanding. Adjusted net income in the second quarter of 2016 was $7.5 million, or 63 cents per diluted share, excluding impairment costs.
Revenue in direct selling arm OPTAVIA™, formerly known as Take Shape For Life®, was up 10.6 percent to $63.5 million in the second quarter of 2017, compared to $57.4 million in the second quarter of the prior year. This is the seventh consecutive quarter of growth. The total number of active earning OPTAVIA Coaches in the second quarter of 2017 increased to 13,500, compared to 12,800 in the second quarter of 2016. The average revenue per active earning OPTAVIA Coach for the second quarter of 2017 was $4,713 as compared to $4,479 in second quarter of 2016.
Medifast Direct revenue decreased to $8.6 million in the second quarter of 2017, compared to $9.3 million in the second quarter of 2016. Revenue in the Franchise Medifast Weight Control Centers decreased to $3.4 million from $4.1 million in the second quarter of last year. The decrease in revenue was primarily driven by fewer franchise centers in operation during the period combined with a decline in activity within the centers and a decrease in resellers. The company ended the quarter with 36 franchise centers and two reseller locations in operation compared to 57 franchise centers at the end of the same period last year.
To read the report Q2 2017 report, click here.