March 10, 2017
Medifast Reports Q4 Profit on Higher Sales
Take Shape For Life parent Medifast Inc. (MED—NYSE) posted a fourth-quarter profit of $4.1 million.
The bottom line increased from $3.9 million in the same period of 2015. On a per-share basis, quarterly earnings were 34 cents, compared to 33 cents a year earlier.
Revenue rose 2 percent to $62.5 million, driven by growth in the Take Shape For Life direct sales division. Take Shape For Life Health Coaches sell the company’s weight-loss and wellness products, and support clients in achieving their health goals. The business logged its fifth consecutive quarter of year-over-year growth, with sales up 8 percent to $51.8 million.
“2016 was a year of strong execution reflecting our continued disciplined approach to effectively managing our business,” said Daniel R. Chard, CEO of Medifast. “We grew our revenue for the first time since 2013, increased our profitability year-over-year, and raised our quarterly dividend for 2017, all of which supported a strong return for shareholders in 2016.”
For the year, revenue was $274.5 million, versus $272.8 million in 2015. Take Shape For Life accounted for 81 percent of annual revenue. Earnings fell to $17.8 million, or $1.49 per share, from the prior year’s $19.6 million, or $1.62 per share.
In 2017, the company expects to generate $290 million to $300 million in revenue, with earnings in the range of $2.00 to $2.10 per share.