Medifast Announces Third Quarter 2024 Financial Results
Medifast (NYSE: MED) reported Q3 2024 financial results with revenue of $140.2 million, down 40.6% from $235.9 million in Q3 2023. The company had 30,000 active earning OPTAVIA coaches, a 36.3% decrease from 47,100 in the previous year. Net income was $1.1 million ($0.10 per diluted share), compared to $23.1 million ($2.12 per diluted share) in Q3 2023. The company maintains a strong balance sheet with $170.0 million in cash and no debt. For Q4 2024, Medifast expects revenue between $100-120 million and projects a diluted loss per share of $0.10 to $0.65.
Medifast (NYSE: MED) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato di 140,2 milioni di dollari, in calo del 40,6% rispetto ai 235,9 milioni di dollari dello stesso trimestre del 2023. L'azienda ha avuto 30.000 coach OPTAVIA attivi, con una diminuzione del 36,3% rispetto ai 47.100 dell'anno precedente. L'utile netto è stato di 1,1 milioni di dollari (0,10 dollari per azione diluita), rispetto ai 23,1 milioni di dollari (2,12 dollari per azione diluita) nel terzo trimestre del 2023. L'azienda mantiene un bilancio solido con 170,0 milioni di dollari in contante e senza debiti. Per il quarto trimestre del 2024, Medifast prevede un fatturato compreso tra 100 e 120 milioni di dollari e stima una perdita diluita per azione tra 0,10 e 0,65 dollari.
Medifast (NYSE: MED) informó los resultados financieros del tercer trimestre de 2024 con ingresos de 140,2 millones de dólares, una caída del 40,6% desde los 235,9 millones de dólares en el tercer trimestre de 2023. La compañía tenía 30,000 entrenadores de OPTAVIA activos, una disminución del 36,3% desde 47,100 en el año anterior. La renta neta fue de 1,1 millones de dólares (0,10 dólares por acción diluida), en comparación con 23,1 millones de dólares (2,12 dólares por acción diluida) en el tercer trimestre de 2023. La empresa mantiene un balance sólido con 170,0 millones de dólares en efectivo y sin deudas. Para el cuarto trimestre de 2024, Medifast espera ingresos entre 100 y 120 millones de dólares y proyecta una pérdida diluida por acción de 0,10 a 0,65 dólares.
메디패스트 (NYSE: MED)는 2024년 3분기 재무 결과를 발표했으며, 수익은 1억 4020만 달러로 2023년 3분기 2억 3590만 달러에 비해 40.6% 감소했습니다. 이 회사는 30,000명의 활동적인 OPTAVIA 코치가 있었으며, 이는 전년의 47,100명에서 36.3% 감소한 수치입니다. 순이익은 110만 달러(희석 주당 0.10 달러)로, 2023년 3분기 2310만 달러(희석 주당 2.12 달러)와 비교됩니다. 이 회사는 1억 7000만 달러의 현금을 보유하고 있으며, 부채는 없습니다. 2024년 4분기에 대해 메디패스트는 수익이 1억에서 1억 2000만 달러 사이일 것으로 예상하며, 주당 희석 손실은 0.10에서 0.65 달러로 예상하고 있습니다.
Medifast (NYSE: MED) a publié les résultats financiers du troisième trimestre 2024 avec des revenus de 140,2 millions de dollars, en baisse de 40,6 % par rapport à 235,9 millions de dollars au troisième trimestre 2023. L'entreprise comptait 30 000 entraîneurs OPTAVIA actifs, soit une diminution de 36,3 % par rapport aux 47 100 de l'année précédente. Le revenu net a été de 1,1 million de dollars (0,10 dollar par action diluée), contre 23,1 millions de dollars (2,12 dollars par action diluée) au troisième trimestre 2023. L'entreprise maintient un solide bilan avec 170,0 millions de dollars en liquidités et sans dettes. Pour le quatrième trimestre 2024, Medifast s'attend à des revenus compris entre 100 et 120 millions de dollars et prévoit une perte diluée par action de 0,10 à 0,65 dollar.
Medifast (NYSE: MED) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Umsatz von 140,2 Millionen Dollar, was einem Rückgang von 40,6% gegenüber 235,9 Millionen Dollar im dritten Quartal 2023 entspricht. Das Unternehmen hatte 30.000 aktive OPTAVIA-Coaches, was einem Rückgang von 36,3% gegenüber 47.100 im Vorjahr entspricht. Der Nettogewinn betrug 1,1 Millionen Dollar (0,10 Dollar pro verwässerter Aktie), verglichen mit 23,1 Millionen Dollar (2,12 Dollar pro verwässerter Aktie) im dritten Quartal 2023. Das Unternehmen hat eine starke Bilanz mit 170,0 Millionen Dollar in bar und ohne Schulden. Für das vierte Quartal 2024 erwartet Medifast einen Umsatz zwischen 100 und 120 Millionen Dollar und plant einen verwässerten Verlust pro Aktie zwischen 0,10 und 0,65 Dollar.
- Strong cash position of $170.0 million with no debt
- Maintained healthy gross profit margin of 75.4%
- Expected annual savings of $500,000 from credit facility termination
- Revenue declined 40.6% year-over-year to $140.2 million
- Net income decreased 95.2% to $1.1 million from $23.1 million
- Active earning OPTAVIA coaches decreased 36.3% to 30,000
- Average revenue per coach declined to $4,672 from $5,008
- Projected Q4 2024 loss per share between $0.10 to $0.65
- SG&A as percentage of revenue increased 950 basis points to 73.9%
Insights
The Q3 2024 results reveal significant challenges for Medifast, with concerning declines across key metrics. Revenue dropped
The outlook appears particularly challenging, with Q4 2024 guidance projecting revenue between
The company's pivot to include GLP-1 medication support through LifeMD partnership appears reactive to market disruption rather than proactive positioning. The
Third Quarter 2024
-
Revenue of
, with revenue per active earning coach of$140.2 million $4,672 - Independent active earning OPTAVIA coaches of 30,000
-
Net income of
(non-GAAP adjusted net income of$1.1 million )$3.9 million -
Income per diluted share of
(non-GAAP adjusted earnings per share ("EPS") of$0.10 )$0.35 -
Cash, Cash Equivalents, and Investment Securities of
with no debt$170.0 million
“Medical innovation has transformed the weight loss industry, so at Medifast we’re creating a health and wellness business of the future by meeting the unique needs of customers regardless of their approach to their health goals,” said Dan Chard, Chairman & CEO.
“We offer comprehensive support for medication users including access to clinicians through LifeMD, as well as programs and products to help maintain muscle and minimize side effects. We’re developing customized solutions for those looking to maintain their weight and build a healthier lifestyle beyond medication usage. Importantly, our clinically-studied coach-led program remains a powerful solution for those not using medications at all, combining the community support, a habit-based approach and nutritional products that are a hallmark of all our OPTAVIA programs, having already helped over 3 million people achieve improved health.”
Chard concluded, “With tailored plans, personal solutions and a focused approach to driving customer acquisition, we believe that our strategy can drive sustainable growth in the quarters and years ahead.”
Third Quarter 2024 Results
Third quarter 2024 revenue decreased
Gross profit decreased
Selling, general, and administrative expenses (“SG&A”) decreased
The company's income from operations for the period was
The effective tax rate was
In the third quarter of 2024, the company's net income was
Capital Allocation and Balance Sheet
The company’s balance sheet remains strong with
Outlook
The company expects fourth quarter 2024 revenue to be in the range of
Conference Call Information
The conference call is scheduled for today, Monday, November 4, 2024 at 4:30 p.m. ET. The call will be broadcast live over the Internet, hosted on the Investor Relations section of Medifast’s website at www.MedifastInc.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1691825&tp_key=981ddaa9cf and will be archived online and available through February 4, 2025. In addition, listeners may dial 201-389-0879 to join via telephone.
A telephonic playback will be available from 7:30 p.m. ET, November 4, 2024, through November 11, 2024. Participants can dial 412-317-6671 and enter passcode 13749320 to hear the playback.
About Medifast®:
Medifast (NYSE: MED) is the health and wellness company known for its habit-based and coach-guided lifestyle solution OPTAVIA®, which provides people with a simple yet comprehensive approach to address obesity and support a healthy lifestyle. OPTAVIA's holistic solution includes lifestyle plans with clinically proven health benefits, scientifically developed products, and a framework for habit creation – all reinforced by independent coach support for customers on their weight loss journeys. Through its collaboration with national virtual primary care provider LifeMD® (Nasdaq: LFMD) and its affiliated medical group, the holistic solution now includes access to GLP-1 medications where clinically appropriate. Medifast remains committed to its mission of offering Lifelong Transformation, Making a Healthy Lifestyle Second Nature™. Visit the OPTAVIA and Medifast websites for more information and follow @Medifast on X and LinkedIn.
MED-F
Forward Looking Statements
Please Note: This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by use of phrases or terminology such as “intend,” “anticipate,” “expect” or other similar words or the negative of such terminology. Similarly, descriptions of Medifast’s objectives, strategies, plans, goals, outlook or targets contained herein are also considered forward-looking statements. These statements are based on the current expectations of the management of Medifast and are subject to certain events, risks, uncertainties and other factors. Some of these factors include, among others, Medifast's inability to maintain and grow the network of independent OPTAVIA Coaches; Industry competition and new weight loss products, including weight loss medications, or services; Medifast’s health or advertising related claims by OPTAVIA customers; Medifast's inability to continue to develop new products; effectiveness of Medifast's advertising and marketing programs, including use of social media by OPTAVIA Coaches; the departure of one or more key personnel; Medifast's inability to protect against online security risks and cyberattacks; risks associated with Medifast's direct-to-consumer business model; disruptions in Medifast's supply chain; product liability claims; Medifast's planned growth into domestic markets including through its collaboration with LifeMD, Inc.; adverse publicity associated with Medifast's products; the impact of existing and future laws and regulations on Medifast’s business; fluctuations of Medifast's common stock market price; increases in litigation; actions of activist investors; the consequences of other geopolitical events, overall economic and market conditions and the resulting impact on consumer sentiment and spending patterns; and Medifast's ability to prevent or detect a failure of internal control over financial reporting. 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other filings filed with the United States Securities and Exchange Commission, including its quarterly reports on Form 10-Q and current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
MEDIFAST, INC. AND SUBSIDIARIES |
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||
( |
||||||||||||||
|
||||||||||||||
|
Three months ended
|
|
Nine months ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
$ |
140,163 |
|
|
$ |
235,869 |
|
$ |
483,460 |
|
|
$ |
881,039 |
|
Cost of sales |
|
34,489 |
|
|
|
58,492 |
|
|
127,056 |
|
|
|
246,558 |
|
Gross profit |
|
105,674 |
|
|
|
177,377 |
|
|
356,404 |
|
|
|
634,481 |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general, and administrative |
|
103,568 |
|
|
|
151,868 |
|
|
354,235 |
|
|
|
516,755 |
|
|
|
|
|
|
|
|
|
|||||||
Income from operations |
|
2,106 |
|
|
|
25,509 |
|
|
2,169 |
|
|
|
117,726 |
|
|
|
|
|
|
|
|
|
|||||||
Other (expense) income |
|
|
|
|
|
|
|
|||||||
Interest income |
|
1,333 |
|
|
|
1,033 |
|
|
3,851 |
|
|
|
1,314 |
|
Other (expense) income |
|
(1,861 |
) |
|
|
7 |
|
|
(3,508 |
) |
|
|
(45 |
) |
|
|
(528 |
) |
|
|
1,040 |
|
|
343 |
|
|
|
1,269 |
|
|
|
|
|
|
|
|
|
|||||||
Income before provision for income taxes |
|
1,578 |
|
|
|
26,549 |
|
|
2,512 |
|
|
|
118,995 |
|
|
|
|
|
|
|
|
|
|||||||
Provision for income taxes |
|
449 |
|
|
|
3,418 |
|
|
1,222 |
|
|
|
25,615 |
|
|
|
|
|
|
|
|
|
|||||||
Net income |
$ |
1,129 |
|
|
$ |
23,131 |
|
$ |
1,290 |
|
|
$ |
93,380 |
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share - basic |
$ |
0.10 |
|
|
$ |
2.12 |
|
$ |
0.12 |
|
|
$ |
8.58 |
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share - diluted |
$ |
0.10 |
|
|
$ |
2.12 |
|
$ |
0.12 |
|
|
$ |
8.55 |
|
|
|
|
|
|
|
|
|
|||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|||||||
Basic |
|
10,937 |
|
|
|
10,892 |
|
|
10,928 |
|
|
|
10,881 |
|
Diluted |
|
10,971 |
|
|
|
10,933 |
|
|
10,959 |
|
|
|
10,925 |
|
|
|
|
|
|
|
|
|
|||||||
Cash dividends declared per share |
$ |
— |
|
|
$ |
1.65 |
|
$ |
— |
|
|
$ |
4.95 |
|
MEDIFAST, INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||
( |
|||||
|
|||||
|
September 30,
|
|
December 31,
|
||
|
|
|
|
||
ASSETS |
|
|
|
||
Current Assets |
|
|
|
||
Cash and cash equivalents |
$ |
115,307 |
|
$ |
94,440 |
Inventories, net |
|
40,095 |
|
|
54,591 |
Investments |
|
54,648 |
|
|
55,601 |
Income taxes, prepaid |
|
8,229 |
|
|
8,727 |
Prepaid expenses and other current assets |
|
6,696 |
|
|
10,670 |
Total current assets |
|
224,975 |
|
|
224,029 |
|
|
|
|
||
Property, plant and equipment - net of accumulated depreciation |
|
39,003 |
|
|
51,467 |
Right-of-use assets |
|
12,290 |
|
|
15,645 |
Other assets |
|
10,967 |
|
|
14,650 |
Deferred tax assets, net |
|
4,002 |
|
|
4,117 |
|
|
|
|
||
TOTAL ASSETS |
$ |
291,237 |
|
$ |
309,908 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
Current Liabilities |
|
|
|
||
Accounts payable and accrued expenses |
$ |
66,270 |
|
$ |
86,415 |
Current lease obligations |
|
6,106 |
|
|
5,885 |
Total current liabilities |
|
72,376 |
|
|
92,300 |
|
|
|
|
||
Lease obligations, net of current lease obligations |
|
11,519 |
|
|
16,127 |
Total liabilities |
|
83,895 |
|
|
108,427 |
|
|
|
|
||
Stockholders' Equity |
|
|
|
||
Common stock, par value |
|
|
|
||
10,937 and 10,896 issued and outstanding |
|
|
|
||
at September 30, 2024 and December 31, 2023, respectively |
|
11 |
|
|
11 |
Additional paid-in capital |
|
31,005 |
|
|
26,573 |
Accumulated other comprehensive income |
|
349 |
|
|
248 |
Retained earnings |
|
175,977 |
|
|
174,649 |
Total stockholders' equity |
|
207,342 |
|
|
201,481 |
|
|
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
291,237 |
|
$ |
309,908 |
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding results, the company discloses various non-GAAP financial measures in the quarterly earnings press release and other public disclosures. The following GAAP financial measures have been presented on an as adjusted basis: cost of sales, gross profit, SG&A expenses, income from operations, other income (expense), provision for income taxes, net income, effective tax rate, and diluted earnings per share. Each of these non-GAAP financial measures excludes the impact of certain amounts as further identified below that the company believes are not indicative of its core ongoing operational performance. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included below. These non-GAAP financial measures are not intended to replace GAAP financial measures.
These non-GAAP financial measures are used internally to evaluate and manage the company's operations because the company believes they provide useful supplemental information regarding the company's on-going economic performance. The company has chosen to provide this information to investors to enable them to perform more meaningful comparisons of operating results and as a means to emphasize the results of on-going operations.
The following tables reconcile the non-GAAP financial measures included in this release:
MEDIFAST, INC. AND SUBSIDIARIES |
|||||||||||||
CONDENSED CONSOLIDATED NON-GAAP (UNAUDITED) |
|||||||||||||
( |
|||||||||||||
|
|||||||||||||
|
Three Months Ended September 30, 2024 |
||||||||||||
|
GAAP |
|
Unrealized Loss on Investment in LifeMD Common Stock |
|
LifeMD Prepaid Services Amortization |
|
Non-GAAP |
||||||
Cost of sales |
$ |
34,489 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
34,489 |
Gross profit |
|
105,674 |
|
|
|
— |
|
|
— |
|
|
|
105,674 |
Selling, general, and administrative |
|
103,568 |
|
|
|
— |
|
|
(1,652 |
) |
|
|
101,916 |
Income from operations |
|
2,106 |
|
|
|
— |
|
|
1,652 |
|
|
|
3,758 |
Other income (expense) |
|
(528 |
) |
|
|
1,984 |
|
|
— |
|
|
|
1,456 |
Provision for income taxes |
|
449 |
|
|
|
496 |
|
|
413 |
|
|
|
1,358 |
Net income |
|
1,129 |
|
|
|
1,488 |
|
|
1,239 |
|
|
|
3,856 |
Diluted earnings per share(1) |
|
0.10 |
|
|
|
0.14 |
|
|
0.11 |
|
|
|
0.35 |
|
Three Months Ended September 30, 2023 |
||||||||||
|
GAAP |
|
Unrealized Loss on Investment in LifeMD Common Stock |
|
LifeMD Prepaid Services Amortization |
|
Non-GAAP |
||||
Cost of sales |
$ |
58,492 |
|
$ |
— |
|
$ |
— |
|
$ |
58,492 |
Gross profit |
|
177,377 |
|
|
— |
|
|
— |
|
|
177,377 |
Selling, general, and administrative |
|
151,868 |
|
|
— |
|
|
— |
|
|
151,868 |
Income from operations |
|
25,509 |
|
|
— |
|
|
— |
|
|
25,509 |
Other income |
|
1,040 |
|
|
— |
|
|
— |
|
|
1,040 |
Provision for income taxes |
|
3,418 |
|
|
— |
|
|
— |
|
|
3,418 |
Net income |
|
23,131 |
|
|
— |
|
|
— |
|
|
23,131 |
Diluted earnings per share(1) |
|
2.12 |
|
|
— |
|
|
— |
|
|
2.12 |
|
Nine Months Ended September 30, 2024 |
|||||||||||||||||||
|
GAAP |
|
Supply Chain Optimization and Restructuring of External Manufacturing Agreements |
|
OPTAVIA Convention Cancellation |
|
Unrealized Loss on Investment in LifeMD Common Stock |
|
LifeMD Prepaid Services Amortization |
|
Non-GAAP |
|||||||||
Cost of sales |
$ |
127,056 |
|
$ |
(2,579 |
) |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
124,477 |
Gross profit |
|
356,404 |
|
|
2,579 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
358,983 |
Selling, general, and administrative |
|
354,235 |
|
|
(12,502 |
) |
|
|
(3,000 |
) |
|
|
|
|
(5,000 |
) |
|
|
333,733 |
|
Income from operations |
|
2,169 |
|
|
15,081 |
|
|
|
3,000 |
|
|
|
— |
|
|
5,000 |
|
|
|
25,250 |
Other income |
|
343 |
|
|
— |
|
|
|
— |
|
|
|
3,734 |
|
|
— |
|
|
|
4,077 |
Provision for income taxes |
|
1,222 |
|
|
3,770 |
|
|
|
750 |
|
|
|
934 |
|
|
1,250 |
|
|
|
7,926 |
Net income |
|
1,290 |
|
|
11,311 |
|
|
|
2,250 |
|
|
|
2,800 |
|
|
3,750 |
|
|
|
21,400 |
Diluted earnings per share(1) |
|
0.12 |
|
|
1.03 |
|
|
|
0.21 |
|
|
|
0.26 |
|
|
0.34 |
|
|
|
1.95 |
|
Nine Months Ended September 30, 2023 |
||||||||||||||||
|
GAAP |
|
Supply Chain Optimization and Restructuring of External Manufacturing Agreements |
|
OPTAVIA Convention Cancellation |
|
Unrealized Loss on Investment in LifeMD Common Stock |
|
LifeMD Prepaid Services Amortization |
|
Non-GAAP |
||||||
Cost of sales |
$ |
246,558 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
246,558 |
Gross profit |
|
634,481 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
634,481 |
Selling, general, and administrative |
|
516,755 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
516,755 |
Income from operations |
|
117,726 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
117,726 |
Other income |
|
1,269 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,269 |
Provision for income taxes |
|
25,615 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
25,615 |
Net income |
|
93,380 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
93,380 |
Diluted earnings per share(1) |
|
8.55 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8.55 |
(1) The weighted-average diluted shares outstanding used in the calculation of these non-GAAP financial measures are the same as the weighted-average shares outstanding used in the calculation of the reported per share amounts. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104875720/en/
Investor Contact:
Medifast, Inc.
Steven Zenker
InvestorRelations@medifastinc.com
(443) 379-5256
Source: Medifast
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