Medifast Announces Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter 2024
-
Revenue of
, with revenue per active earning coach of$119.0 million $4,391 - Independent active earning OPTAVIA coaches of 27,100
-
Net income of
(non-GAAP adjusted net income of$0.8 million )$1.1 million -
Earnings per diluted share ("EPS") of
(non-GAAP adjusted EPS of$0.07 )$0.10 -
Cash, Cash Equivalents, and Investment Securities of
and no debt$162.3 million
Full Year 2024
-
Revenue of
$602.5 million -
Net income of
(non-GAAP adjusted net income of$2.1 million )$20.2 million -
EPS of
(non-GAAP adjusted EPS of$0.19 )$1.84
“This past year was a pivotal year for Medifast, as we continued to transform our business to meet the changing nature of a health and wellness market that has been revolutionized by the rising acceptance of GLP-1 medications,” said Dan Chard, Chairman & CEO.
“Throughout the year, our team has shown resilience and adaptability as we navigated evolving market dynamics, enabling Medifast to remain positioned to be a leader in health and wellness in a GLP-1 world. We're committed to offering solutions that meet the diverse needs of our customers, whether they are focusing solely on our habit-based approach to weight loss, using GLP-1 medications, or transitioning off them.”
Chard continued, “As we look ahead, our top priorities center on reestablishing growth across all of our key metrics, including driving coach productivity through accelerated customer acquisition, and expanding the number of active earning coaches. These efforts should allow us to broaden our reach, restore revenue and profitability growth and deliver long-term value to all our stakeholders.”
Fourth Quarter 2024 Results
Fourth quarter 2024 revenue decreased
Gross profit decreased
Selling, general, and administrative expenses (“SG&A”) decreased
Income from operations decreased
Other income decreased
The effective tax rate was
In the fourth quarter of 2024, net income was
Full Year Fiscal 2024 Results
For the fiscal year ended December 31, 2024, revenue decreased
Capital Allocation and Balance Sheet
The company’s balance sheet remains strong with cash, cash equivalents, and investment securities of
Outlook
The company expects first quarter 2025 revenue to be in the range of
Conference Call Information
The conference call is scheduled for today, Tuesday, February 18, 2025 at 4:30 PM 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=1705513&tp_key=7b87c842ba and will be archived online and available through May 18, 2025. In addition, listeners may dial (201) 389-0879 to join via telephone. A telephonic playback will be available from February 18, 2025 at 8:30 PM ET through Tuesday, February 25, 2025 at 11:59 PM ET. Participants can dial (412) 317-6671 and enter passcode 13751326 to hear the playback.
About Medifast®:
Medifast (NYSE: MED) is the 40+ year old 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 provides unparalleled coaching support along with community, tailored nutrition and healthy habits, and empowers people to master their weight loss journey through each stage of life. Through the company's collaboration with national virtual primary care provider LifeMD® (Nasdaq: LFMD) and its affiliated medical group, customers now have 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 MedifastInc.com and OPTAVIA.com 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 such as GLP-1s, 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, 2024, 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 December 31, |
|
Year ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
119,003 |
|
|
$ |
191,015 |
|
|
$ |
602,463 |
|
|
$ |
1,072,054 |
|
Cost of sales |
|
30,784 |
|
|
|
49,646 |
|
|
|
157,840 |
|
|
|
296,204 |
|
Gross profit |
|
88,219 |
|
|
|
141,369 |
|
|
|
444,623 |
|
|
|
775,850 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative |
|
87,510 |
|
|
|
132,693 |
|
|
|
441,745 |
|
|
|
649,448 |
|
|
|
|
|
|
|
|
|
||||||||
Income from operations |
|
709 |
|
|
|
8,676 |
|
|
|
2,878 |
|
|
|
126,402 |
|
|
|
|
|
|
|
|
|
||||||||
Other income |
|
|
|
|
|
|
|
||||||||
Interest income |
|
953 |
|
|
|
1,176 |
|
|
|
4,804 |
|
|
|
2,490 |
|
Other expense |
|
(387 |
) |
|
|
(50 |
) |
|
|
(3,895 |
) |
|
|
(95 |
) |
|
|
566 |
|
|
|
1,126 |
|
|
|
909 |
|
|
|
2,395 |
|
|
|
|
|
|
|
|
|
||||||||
Income before provision for income taxes |
|
1,275 |
|
|
|
9,802 |
|
|
|
3,787 |
|
|
|
128,797 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
475 |
|
|
|
3,766 |
|
|
|
1,696 |
|
|
|
29,382 |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
800 |
|
|
$ |
6,036 |
|
|
$ |
2,091 |
|
|
$ |
99,415 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - basic |
$ |
0.07 |
|
|
$ |
0.55 |
|
|
$ |
0.19 |
|
|
$ |
9.13 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - diluted |
$ |
0.07 |
|
|
$ |
0.55 |
|
|
$ |
0.19 |
|
|
$ |
9.10 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
10,938 |
|
|
|
10,893 |
|
|
|
10,930 |
|
|
|
10,884 |
|
Diluted |
|
10,983 |
|
|
|
10,935 |
|
|
|
10,963 |
|
|
|
10,921 |
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per share |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4.95 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
MEDIFAST, INC. AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||
( |
|||||
|
|
|
|
||
|
December 31, 2024 |
|
December 31, 2023 |
||
ASSETS |
|
|
|
||
Current Assets |
|
|
|
||
Cash and cash equivalents |
$ |
90,928 |
|
$ |
94,440 |
Inventories, net |
|
42,421 |
|
|
54,591 |
Investments |
|
71,416 |
|
|
55,601 |
Income taxes, prepaid |
|
— |
|
|
8,727 |
Prepaid expenses and other current assets |
|
9,639 |
|
|
10,670 |
Total current assets |
|
214,404 |
|
|
224,029 |
|
|
|
|
||
Property, plant and equipment - net of accumulated depreciation |
|
37,527 |
|
|
51,467 |
Right-of-use assets |
|
11,155 |
|
|
15,645 |
Other assets |
|
9,667 |
|
|
14,650 |
Deferred tax assets, net |
|
11,460 |
|
|
4,117 |
|
|
|
|
||
TOTAL ASSETS |
$ |
284,213 |
|
$ |
309,908 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
Current Liabilities |
|
|
|
||
Accounts payable and accrued expenses |
$ |
56,494 |
|
$ |
86,415 |
Income taxes payable |
|
1,485 |
|
|
— |
Current lease obligations |
|
6,182 |
|
|
5,885 |
Total current liabilities |
|
64,161 |
|
|
92,300 |
|
|
|
|
||
Lease obligations, net of current lease obligations |
|
9,943 |
|
|
16,127 |
Total liabilities |
|
74,104 |
|
|
108,427 |
|
|
|
|
||
Commitments |
|
|
|
||
|
|
|
|
||
Stockholders' Equity |
|
|
|
||
Common stock, par value 0.001 per share: 20,000 shares authorized; |
|
|
|
||
10,938 and 10,896 issued and outstanding |
|
|
|
||
at December 31, 2024 and December 31, 2023 |
|
11 |
|
|
11 |
Additional paid-in capital |
|
33,136 |
|
|
26,573 |
Accumulated other comprehensive income |
|
180 |
|
|
248 |
Retained earnings |
|
176,782 |
|
|
174,649 |
Total stockholders' equity |
|
210,109 |
|
|
201,481 |
|
|
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
284,213 |
|
$ |
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, 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:
|
Three months ended December 31, 2024 |
|||||||
|
GAAP |
|
Unrealized Loss on
|
|
Non-GAAP |
|||
Cost of sales |
$ |
30,784 |
|
$ |
— |
|
$ |
30,784 |
Gross profit |
|
88,219 |
|
|
— |
|
|
88,219 |
Selling, general, and administrative |
|
87,510 |
|
|
— |
|
|
87,510 |
Income from operations |
|
709 |
|
|
— |
|
|
709 |
Other income |
|
566 |
|
|
355 |
|
|
921 |
Provision for income taxes |
|
475 |
|
|
89 |
|
|
564 |
Net income |
|
800 |
|
|
266 |
|
|
1,066 |
Diluted earnings per share (1) |
|
0.07 |
|
|
0.02 |
|
|
0.10 |
|
Three months ended December 31, 2023 |
||||||||||||
|
GAAP |
|
IT and Supply Chain
|
|
LifeMD
|
|
Non-GAAP |
||||||
Cost of sales |
$ |
49,646 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
49,646 |
Gross profit |
|
141,369 |
|
|
— |
|
|
|
— |
|
|
|
141,369 |
Selling, general, and administrative |
|
132,693 |
|
|
(2,555 |
) |
|
|
(5,000 |
) |
|
|
125,138 |
Income from operations |
|
8,676 |
|
|
2,555 |
|
|
|
5,000 |
|
|
|
16,231 |
Other income |
|
1,126 |
|
|
— |
|
|
|
— |
|
|
|
1,126 |
Provision for income taxes |
|
3,766 |
|
|
583 |
|
|
|
1,141 |
|
|
|
5,490 |
Net income |
|
6,036 |
|
|
1,972 |
|
|
|
3,859 |
|
|
|
11,867 |
Diluted earnings per share (1) |
|
0.55 |
|
|
0.18 |
|
|
|
0.35 |
|
|
|
1.09 |
|
Year ended December 31, 2024 |
|||||||||||||||
|
GAAP |
|
Supply Chain
|
|
Unrealized Loss
|
|
LifeMD
|
|
Non-GAAP |
|||||||
Cost of sales |
$ |
157,840 |
|
$ |
(2,579 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
155,261 |
Gross profit |
|
444,623 |
|
|
2,579 |
|
|
|
— |
|
|
— |
|
|
|
447,202 |
Selling, general, and administrative |
|
441,745 |
|
|
(12,502 |
) |
|
|
— |
|
|
(5,000 |
) |
|
|
424,243 |
Income from operations |
|
2,878 |
|
|
15,081 |
|
|
|
— |
|
|
5,000 |
|
|
|
22,959 |
Other income |
|
909 |
|
|
— |
|
|
|
4,089 |
|
|
— |
|
|
|
4,998 |
Provision for income taxes |
|
1,696 |
|
|
3,770 |
|
|
|
1,022 |
|
|
1,250 |
|
|
|
7,738 |
Net income |
|
2,091 |
|
|
11,311 |
|
|
|
3,067 |
|
|
3,750 |
|
|
|
20,219 |
Diluted earnings per share (1) |
|
0.19 |
|
|
1.03 |
|
|
|
0.28 |
|
|
0.34 |
|
|
|
1.84 |
|
Year ended December 31, 2023 |
||||||||||||
|
GAAP |
|
IT and Supply Chain
|
|
LifeMD
|
|
Non-GAAP |
||||||
Cost of sales |
$ |
296,204 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
296,204 |
Gross profit |
|
775,850 |
|
|
— |
|
|
|
— |
|
|
|
775,850 |
Selling, general, and administrative |
|
649,448 |
|
|
(2,555 |
) |
|
|
(5,000 |
) |
|
|
641,893 |
Income from operations |
|
126,402 |
|
|
2,555 |
|
|
|
5,000 |
|
|
|
133,957 |
Other income |
|
2,395 |
|
|
— |
|
|
|
— |
|
|
|
2,395 |
Provision for income taxes |
|
29,382 |
|
|
583 |
|
|
|
1,141 |
|
|
|
31,106 |
Net income |
|
99,415 |
|
|
1,972 |
|
|
|
3,859 |
|
|
|
105,246 |
Diluted earnings per share (1) |
|
9.10 |
|
|
0.18 |
|
|
|
0.35 |
|
|
|
9.64 |
(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/20250218029135/en/
Investor Contact:
Medifast, Inc.
Steven Zenker
InvestorRelations@medifastinc.com
(443) 379-5256
Source: Medifast