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The Chairman of the Board, Brad MacDonald of Medifast, Inc.
Medifast, Inc. has now attained five (5) quarters of profits since the liquidation of Montana Naturals. Gross margins again have climbed to 50%. Current sales and infrastructure is profitable and the "teleweb" strategy of expanding its customer base is working. SG&A was slashed by 60%, margins improved by 5%, and net income from continuing operations was $700,000 with the tax provision asset. Net income increased to $1,048,000 with extraordinary items. The Company has an accumulated deficit of ($8,322,000) going forward that gives the Company favorable tax treatment in the near future. The Company earned $.19 a share vs. ($.60) loss in 1999 on an earnings per share basis and improved its equity position from a minus ($818,000), to a favorable $1,210,000, an increase of over $2,000,000 from 1999. Liquidating the unprofitable Montana Naturals, Inc. subsidiary and implementing the "Lifestyles" program, for medical practitioners and their patients has significantly improved the gross margins and cash flow of the Company.
The Board and management team have turned the Company around and have positioned it for future growth and prosperity. The Company has a dynamic, young, and vibrant management team, highly educated, technology literate, and entrepreneurial. As they faced the new millennium under extreme adversity, they turned the Company around into a profitable enterprise with tenacity, skill and a superior work ethic. This year, the Company will improve operations, build profitable revenues and market share as it attempts to increase shareholder value. Special thanks to Medifast customers, vendors, business associates and shareholders for their patience and support. The Medifast management team is committed to work diligently to increase the value of the Company and build a better future.
This release contains forward-looking statements which may involve known and unknown risks, 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.
SOURCE: Medifast, Inc.
Contact: Bradley T. MacDonald, Chairman & Chief Executive Officer of
Medifast, 410-581-8042, ext. 231