Every day, more lives are transformed all over the world – one healthy habit at a time. Read the latest about how Medifast and the OPTAVIA® movement is impacting people’s lives.
Medifast, Inc. (OTC Bulletin Board: MDFT) revenues have increased by 29% and margins by 7% YTD in September. The Medifast brand is a premium medical meal replacement and medically supervised weight management program for physicians and their patients. As a result of its teleweb strategy, income from operations increased to 685K YTD vs. 201K last year, and net income was 567K YTD vs. 690K last year, however, 603K in 2000 was other income and an extraordinary item. The company has reported 2 cents a share for the quarter and 7 cents YTD. The company now has total capital of $2 million, a $2.8 million improvement since 1999. It is projected that the company will generate almost 800K in cash flow by year end. The company also expects to announce a major strategic partnership prior to year end that will significantly increase its manufacturing output during 2002.
Chairman MacDonald says, "Medifast has terrific operating leverage. Manufacturing can triple output without significant investment. Medifast branded products are well known and have been used by over 700,000 patients since 1983 with an established network of physicians. IRS Pub. 502 may allow Medifast users to take a tax deduction for over 30 medical conditions including obesity. The company saves 39% of its cash flow as a result of the tax benefits of previous losses. Overall, the company is currently undervalued but that should change as it continues to make progress with increased revenues and profits that will increase shareholder equity."
The Medifast technology strategy was developed at Villanova University with the help of Fr. Don Reilly, OSA, Mr. Scott Zion and Mr. Mike MacDonald of the Medifast Board of Directors. The Medifast e-commerce site http://www.medifastdiet.com/ and the Physician Lifestyles Program, which supports the Medifast physician patient base, were responsible for the increase in sales and margins. Medifast has now achieved eight (8) consecutive profitable quarters. In 2000, Medifast earned $0.19 per share. Divesting of the unprofitable Montana Naturals operation and focusing on its core Medifast® business has returned the Company to long-term profitability.
This release contains forward-looking statements, which may involve known and unknown risks and uncertainties and other factors that may cause Medifast's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectation on this date.
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SOURCE: Medifast, Inc.
Contact: Bradley T. MacDonald, Chairman & Chief Executive Officer of Medifast, +1-410-581-8042, ext. 231
Web site: http://www.medifast.net/