March 21, 2012
Medifast Reports 16 Percent Increase in Net Revenue for 2011
Medifast, Inc., a leading manufacturer and provider of weight-loss programs, recently released financial results for the fourth quarter and fiscal year ended December 31, 2011.
For the fourth quarter ended December 31, 2011, Medifast net revenue increased 10 percent to $69.6 million from net revenue of $63.0 million in the fourth quarter of the prior year. Each of the Company’s three primary distribution channels, Take Shape for Life, Direct Response Marketing, Medifast Weight Control Centers and Wholesale Physicians, contributed to the year-over-year revenue increase.
Revenue in the direct sales channel, Take Shape for Life, increased 4 percent to $43.3 million in the fourth quarter of 2011 compared to $41.5 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches. The Company ended the quarter with approximately 9,600 active health coaches, an increase of 7 percent compared to 9,000 in the fourth quarter of 2010. The average revenue per health coach per month for the fourth quarter was $1,450 compared to $1,550 in fourth quarter of 2010.
For the fiscal year ended December 31, 2011, Medifast reported a net revenue increase of 16 percent to $298.2 million from net revenue of $257.6 million in 2010.
“We ended the year with a renewed strategic focus on driving operational excellence throughout our Take Shape for Life, Medifast Direct, Medifast Weight Control Center and Wholesale Physicians sales channels, and our internal support divisions to better position our business for maximum profitability long-term,” stated Michael C. MacDonald, Chairman and Chief Executive Officer. “Going forward, our executive team is continuing to review and enhance our overall cost structure to further leverage our sales momentum, improve our margins and deliver improved earnings results, while continuing to focus on enhancing the customer experience in each of our sales channels.”
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