Medifast, Inc. (MED) reported third-quarter 2024 results, with the bottom and top lines surpassing the Zacks Consensus Estimate. However, both metrics declined year over year. Results were hurt by challenging customer acquisition, thanks to increased competition from GLP-1 medications and shifting consumer spending behaviors.Medifast’s adjusted earnings were 35 cents per share in the third quarter, down from $2.12 in the year-ago quarter. Nevertheless, the metric surpassed the Zacks Consensus Estimate pegge ...

Medifast (MED) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of a loss of $0.15 per share. This compares to earnings of $2.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 333.33%. A quarter ago, it was expected that this weight-loss company would post earnings of $0.36 per share when it actually produced earnings of $0.92, delivering a surprise of 155.56%.Over the last four quarte ...

Medifast, Inc. (NYSE:MED) Q3 2024 Earnings Conference Call November 4, 2024 4:30 PM ET Company Participants Steven Zenker - Vice President-Investor Relations Dan Chard - Chairman & Chief Executive Officer Jim Maloney - Chief Financial Officer Conference Call Participants Jim Salera - Stephens Inc. Linda Bolton-Weiser - D.A. Davidson Operator Greetings, and welcome to the Medifast Third Quarter 2024 Earnings Conference Call. At this time, all participants are on a listen-only mode. A brief question-and-answe ...

Financial Performance - Revenue for Q3 2024 was $140,163,000, a decrease of 40.5% compared to $235,869,000 in Q3 2023[6] - Gross profit for Q3 2024 was $105,674,000, down 40.5% from $177,377,000 in Q3 2023[6] - Net income for Q3 2024 was $1,129,000, a significant decline of 95.1% from $23,131,000 in Q3 2023[6] - Earnings per share (EPS) for Q3 2024 was $0.10, compared to $2.12 in Q3 2023, reflecting a decrease of 95.3%[6] - Net income for the nine months ended September 30, 2024, was $1,290,000, a significant decrease from $93,380,000 in the same period of 2023, reflecting a decline of approximately 98.6%[11] - The company reported a net income of $1.1 million for the three months ended September 30, 2024, compared to $23.1 million for the same period in 2023, indicating a decrease of approximately 95.2%[33] Assets and Liabilities - Total assets as of September 30, 2024, were $291,237,000, down from $309,908,000 as of December 31, 2023[9] - Total liabilities decreased to $83,895,000 as of September 30, 2024, from $108,427,000 at the end of 2023[9] - As of September 30, 2024, the total equity balance is $207,342,000, with retained earnings of $175,977,000[13] Cash Flow and Dividends - The company reported a net cash flow provided by operating activities of $29,423,000 for the nine months ended September 30, 2024, down from $137,135,000 in the same period of 2023[11] - Cash dividends declared per share were $0.00 in Q3 2024, compared to $1.65 in Q3 2023[6] - Cash dividends paid to stockholders decreased significantly to $715,000 from $55,039,000, a reduction of about 98.7%[11] Expenses - Selling, general, and administrative expenses for the nine months ended September 30, 2024, were $354,235 thousand, down from $516,755 thousand in the same period of 2023, reflecting a reduction of 31.4%[6] - Advertising expenses for the nine months ended September 30, 2024, totaled approximately $16.4 million, a significant increase from $3.0 million for the same period in 2023[23] - The total share-based compensation expense for the nine months ended September 30, 2024, was $5.2 million, compared to $5.8 million for the same period in 2023, reflecting a decrease of approximately 9.8%[43] Inventory - As of September 30, 2024, total inventories decreased to $40.1 million from $54.6 million as of December 31, 2023, representing a decline of approximately 26.6%[30] - The company reported a decrease in inventories to $14,496,000 from $60,629,000, indicating a reduction of about 76%[11] Shareholder Information - The number of shares issued increased from 10,896,000 on December 31, 2023, to 10,937,000 on March 31, 2024[13] - The weighted average shares outstanding for basic earnings per share were 10,937 thousand for the three months ended September 30, 2024, compared to 10,892 thousand for the same period in 2023[6] Credit and Financing - The Company entered into a credit agreement providing for a $225 million senior secured revolving credit facility, maturing on April 13, 2026, with no borrowings outstanding as of September 30, 2024[59][64] - The applicable rate for Term SOFR Loans as of September 30, 2024, was 1.25% per annum, with a commitment fee ranging from 0.20% to 0.40% based on the Company's Total Net Leverage Ratio[62][61] Supply Chain Optimization - The Company completed a supply chain optimization initiative, closing its Maryland Distribution Center, with no associated impairment on the asset group[65] - For the nine months ended September 30, 2024, the total supply chain optimization charges amounted to $12,502 thousand, which includes accelerated depreciation charges of $9,190 thousand and a loss on impairment of equipment held for sale of $2,499 thousand[67] Accounting and Compliance - The company is currently evaluating the impact of adopting ASU 2023-09 on its consolidated financial statements, which is effective for annual periods beginning after December 15, 2024[27] - The company is currently evaluating the impact of adopting ASU 2023-07 on its consolidated financial statements, which will require additional segment disclosures starting after December 15, 2023[28]

Medifast® Q3 2024 Earnings Supplement © 2024 Medifast, Inc. All Rights Reserved. Safe Harbor Statement2 This presentation 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 w ...

Medifast, Inc. (MED) is likely to register a decrease in both top and bottom lines when it reports third-quarter 2024 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $135.5 million, which indicates a 42.6% decline from the year-ago period.The consensus mark for the bottom line has remained unchanged in the past 30 days at a loss of 15 cents, indicating a substantial decline from the prior-year quarter’s $2.12. MED has a trailing four-quarter earnings surprise of 64.5%, on average ...

Medifast, Inc. (MED) is making significant strides in adapting to the evolving healthcare landscape with the growing availability and acceptance of GLP-1 medications, which are influencing the weight loss sector. Medifast's integrated approach, combined with the expertise of OPTAVIA coaches, LifeMD clinicians and its customer-centric strategy, makes it unique in supporting individuals beyond just medication. This holistic solution could be a key differentiator as it ensures comprehensive lifestyle support f ...

Medifast, Inc. (MED) has seen its shares dive 48.9% in the past six months against the industry's growth of 0.6%. This weight management and healthy living product company has also trailed the broader Zacks Consumer Staples sector and the S&P 500's respective growth of 6.4% and 6.5%. Closing the trading session at $18.26 on Wednesday, the stock hovers close to its 52-week low of $17.73. This significant decline in Medifast's stock price can be attributed to several factors that have weighed on the company's ...

Medifast, Inc. (MED) has been strategically positioning itself to thrive in the rapidly evolving weight loss market, particularly as the adoption of GLP-1 medications reshapes industry dynamics. With projections indicating that up to 20 million people in the United States could be using GLP-1 medications by 2030, Medifast is seizing this transformative opportunity by aligning its efforts with the market's evolving needs. Medifast's Expansion Initiatives Medifast is actively enhancing its product offerings, ...

Medifast, Inc. (MED) , a leading weight management and healthy living products company, has faced a tough period, with its stock declining significantly by 24.7% over the past three months. This decline is notably steeper compared with the industry's decline of 5.4% and the Zacks Food - Miscellaneous sector's marginal decline of 1% in the same timeframe. The current stock price is down 79% from its 52-week high of $92.13, highlighting the severity of the downturn. Medifast's stock is trading below its 50-da ...