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 ...

Core Viewpoint - Medifast, Inc. is expected to report a significant decline in both revenue and earnings for the third quarter of 2024, with revenues projected at $135.5 million, reflecting a 42.6% decrease year-over-year [1] Financial Performance - The consensus estimate for the bottom line remains unchanged at a loss of 15 cents per share, a substantial drop from the previous year's earnings of $2.12 per share [2] - Medifast has a trailing four-quarter earnings surprise of 64.5% on average, with a notable 155.6% surprise in the last reported quarter [2] Market Challenges - The company faces macroeconomic challenges, including increased competition in the health and wellness sector, the rise of GLP-1 medications, and a decline in consumer spending, which are expected to persist [3] - Management anticipates revenues between $125 million and $145 million for Q3 2024, indicating a continued decline in the number of active OPTAVIA Coaches due to challenges in customer acquisition linked to the acceptance of GLP-1 medications [4] Cost Management and Investments - Medifast is experiencing rising selling, general, and administrative (SG&A) costs and plans to invest significantly in customer acquisition, including $9 million on marketing initiatives and $4 million for a coach convention [5][6] - The company is implementing measures to enhance growth, including improving product offerings and customer experience, and testing new growth channels through collaboration with LifeMD [7] Strategic Initiatives - The 'Fuel for the Future' program aims to optimize expenditures and improve efficiency, potentially providing some relief in the upcoming quarter [8] Earnings Prediction - The current Zacks model does not predict an earnings beat for Medifast, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [9]

Core Insights - Medifast, Inc. is adapting to the evolving healthcare landscape influenced by the growing acceptance of GLP-1 medications, which are impacting the weight loss sector [1] - The company's integrated approach, combining OPTAVIA coaches and LifeMD clinicians, provides comprehensive lifestyle support, distinguishing it in the market [2] Expansion and Growth Strategy - Medifast is proactively expanding its product offerings and customer acquisition channels, investing $4.6 million in marketing during Q2 to enhance brand awareness and capture market share [3] - The potential for up to 20 million people in the U.S. using GLP-1 medications by 2030 positions Medifast favorably to tap into this growing market [4] - The company is focused on long-term growth through product innovation, market expansion, and refining client experiences [5] Operational Efficiency - Medifast's "Fuel for the Future" program aims to reduce costs and improve operational efficiency, resulting in a 370 basis point expansion in adjusted gross margin due to IT cost savings and better inventory management [7] Challenges and Market Conditions - The company faces challenges in customer acquisition due to macroeconomic factors, including competition and a slowdown in consumer spending, which have impacted revenue and the number of active OPTAVIA Coaches [8][9] - Rising Selling, General and Administrative (SG&A) costs are affecting profits, prompting the company to make significant investments in marketing and product development, which may impact short-term earnings per share [10] Financial Performance - Medifast's revenues declined in Q2 2024, with expectations for Q3 revenues between $125 million and $145 million, reflecting ongoing challenges in customer acquisition [9] - The company's stock has declined 0.8% over the past three months, contrasting with the industry's growth of 7.6% [12]

Core Viewpoint - Medifast, Inc. has experienced a significant decline in stock price, dropping 48.9% over the past six months, underperforming compared to the industry and broader market indices [1][2] Company Performance - In Q2 2024, Medifast reported revenues of $168.9 million, a decrease of 43.1% year-over-year, attributed to fewer active earning OPTAVIA Coaches and reduced productivity per Coach [5] - The average revenue per active earning OPTAVIA Coach fell by 10.9% to $4,972 from $5,578 due to lower customer acquisition [5] - The total number of active earning OPTAVIA Coaches decreased by 36.2% to 33,900 compared to 53,100 in the same quarter last year [6] Market Challenges - Medifast faces challenges in customer acquisition due to macroeconomic factors, intense competition, and the adoption of GLP-1 medications, which are reshaping the weight loss market [4][6] - The company anticipates continued revenue decline in Q3 2024, projecting revenues between $125 million and $145 million [6] Operational Costs - Rising Selling, General and Administrative (SG&A) costs are impacting Medifast's profitability, prompting the company to invest significantly in marketing and product development [7] - The company expects a loss of 5-70 cents per share for Q3, factoring in $9 million for marketing initiatives and $4 million for a coach convention [8] Strategic Initiatives - Medifast is positioning itself to adapt to the evolving weight loss market, with a focus on aligning its strategies with the growing acceptance of GLP-1 medications [8][9] - The company aims to drive long-term growth through product innovation, market expansion, and enhancing customer and coach experiences [10][11] Future Outlook - Medifast's strategic vision includes leveraging financial strength and expertise to capitalize on growth opportunities in the weight loss sector [9][10] - The company is focused on data-driven decision-making and enhancing operational efficiency to support its growth strategies [11]

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 ...

Core Insights - Medifast, Inc. reported a decline in both earnings and net revenues for Q2 2024, but exceeded Zacks Consensus Estimates for both metrics [1][3][4] - The company is strategically adjusting its operations to adapt to the evolving weight loss industry, including enhanced marketing efforts and a partnership with LifeMD [1][2] Financial Performance - Adjusted earnings per share were 92 cents, down from $2.77 year-over-year, surpassing the Zacks Consensus Estimate of 36 cents [3] - Net revenues totaled $168.9 million, a 43.1% decline year-over-year, primarily due to a decrease in active earning OPTAVIA Coaches and reduced productivity per Coach [3][4] - The average revenue per active earning OPTAVIA Coach decreased by 10.9% to $4,972 from $5,578 [3] - The total number of active earning OPTAVIA Coaches fell by 36.2% to 33,900 from 53,100 year-over-year [4] Profitability Metrics - Adjusted gross profit was $126 million, down 40.2% year-over-year, with a gross profit margin of 74.8%, an increase of 370 basis points year-over-year [4] - Adjusted selling, general and administrative expenses (SG&A) decreased by 33.8% year-over-year to $113.8 million, but as a percentage of revenues, SG&A expenses increased by 940 basis points to 67.5% [5][6] Operational Insights - Adjusted income from operations declined by 68.4% to $12.2 million, with an adjusted operating margin of 7.3%, down 580 basis points year-over-year [7] - The company ended the quarter with cash, cash equivalents, and investments of $165.3 million, with no interest-bearing debt and total shareholders' equity of $205.3 million [8] Future Guidance - Management expects revenues for Q3 to be in the range of $125-$145 million, with projected loss per share between 5-70 cents [9] - The earnings guidance excludes costs related to the partnership with LifeMD and any market price changes of the company's LifeMD investment [9]

Medifast, Inc. (MED) is likely to register a top and bottom-line decline when it reports second-quarter 2024 earnings on Aug 5. The Zacks Consensus Estimate for revenues is pegged at $160.4 million, which indicates a 45.8% slump from the year-ago period. The consensus mark for earnings has remained unchanged in the past 30 days at 36 cents per share, which suggests a substantial decline of 87% from the year-ago quarter's figure. MED has a trailing four-quarter earnings surprise of 48.7%, on average. Factors ...

The Zacks Consensus Estimate for 2024 earnings per share has declined from $2.80 to 94 cents in the past 30 days. Additionally, this Zacks Rank #5 (Strong Sell) stock has slumped 44.1% in the past three months compared with the industry's decline of 4.3%. Medifast has been encountering difficulties in attracting customers, primarily because of a range of macroeconomic elements, such as the increasing popularity of GLP-1 medications, the rapidly changing economy and shifts in social media algorithms. Undoubt ...

Medifast, Inc. (MED) delivered first-quarter 2024 results, with the top and bottom lines declining year over year. While the bottom line missed the Zacks Consensus Estimate, the top line exceeded the same.Medifast is strategically adjusting its operations to meet the changing demands of the weight-loss industry. This involves expanding its customer outreach through enhanced marketing efforts and entering the medically-supported weight-loss domain in partnership with LifeMD.These steps are designed to increa ...