Press Releases
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.
The company reported fourth quarter revenue of $15.3 million, compared to revenue of $10.2 million for the same period in 2005, an increase of 50%. The company reported net income of $443,000, or $.03 per basic share ($.03 per diluted share), compared to $849,000, or $.05 per basic share ($.04 per diluted share) for the fourth quarter of 2005. The fourth quarter of 2006 represented the Company's 29th consecutive quarter of profitability.
In the fourth quarter SG&A expense was largely affected by expenses associated with becoming Sarbanes Oxley compliant. In order to meet this requirement, the Company had to increase resources and expenses in the areas of consulting and personnel. These expenses occurred mainly in the 4th quarter and decreased diluted EPS by approximately $.02. The Company expects the expense to be immaterial next year and into the future.
The Company had stockholders' equity of $28.2 million and working capital of $9.6 million at December 31, 2006, compared to $22 million and $10 million at December 31, 2005, respectively.
"We are extremely pleased with 2006 year-end results, which were driven by our innovative business model that allows the clinically proven Medifast brand to serve many different target customers through unique programs for support and education. We have multiple platforms for growth and a strong brand that is trusted by the medical community and our growing customer base. 2006 was a fantastic year for our company as we were recognized by Forbes Magazine, listing Medifast 28th of the top 200 small companies in the United States. While we grew significantly in 2006, we also concentrated on building infrastructure to support future growth and we are excited about the potential of Medifast to enrich millions of lives by providing innovative choices for lasting health," said Michael S. McDevitt, Chief Executive Officer.
2007 Full-Year Guidance
For 2007, the Company expects to report revenue of $85 to $88 million, representing a year over year increase of 15% to 19%, with after-tax profit of $0.45 to $0.46 per diluted share, an increase of 18% to 21% from 2006. On a quarterly basis, full-year 2007 guidance will be reviewed, reiterated or updated as necessary.
Fourth Quarter and Year-End Conference Call
Medifast will release full-year financial results for the period ended December 31, 2006 on Friday, March 16 after the market closes. The Company will hold a conference call and webcast at 5:00 PM EDT.
Interested participants should call (800) 901-5259 when calling within the United States or (617) 786-4514 when calling internationally. Please refer to pass code 83279785. There will be a playback available as well. To listen to the playback, please call (888) 286-8010 when calling within the United States or (617) 801-6888 when calling internationally. Please use pass code 89127658 for the replay. The replay will be available until June 23, 2007.
The webcast may be accessed via the Company's web site at http://www.medifastdiet.com/. Interested parties should go to the section marked "Investor Relations" to listen to the call. The webcast can be accessed until June 23, 2007.
About Medifast: (http://www.medifastdiet.com/)
Medifast
Tables to follow: MEDIFAST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2006 and 2005 2006 2005 ASSETS Current assets: Cash and cash equivalents $1,085,000 $1,484,000 Accounts receivable-net of allowance for doubtful accounts of $100,000 448,000 985,000 Inventory 8,255,000 5,475,000 Investment securities 1,540,000 2,700,000 Deferred compensation 673,000 525,000 Prepaid expenses and other current assets 2,599,000 3,273,000 Note receivable - current 174,000 - Current portion of deferred tax asset 90,000 - Total current assets 14,864,000 14,442,000 Property, plant and equipment - net 14,020,000 9,535,000 Trademarks and intangibles - net 6,274,000 6,508,000 Deferred tax asset, net of current portion 367,000 - Note receivable, net of current assets 1,355,000 - Other assets 47,000 60,000 TOTAL ASSETS $36,927,000 $30,545,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $2,913,000 $2,263,000 Income taxes payable 535,000 899,000 Dividends payable - - Line of credit 1,256,000 633,000 Current maturities of long-term debt 548,000 561,000 Deferred tax liability - current - 90,000 Total current liabilities 5,252,000 4,446,000 Other liabilities and deferred credits Long-term debt, net of current portion 3,509,000 3,977,000 Deferred tax liability - non-current - 101,000 Total liabilities 8,761,000 8,524,000 Stockholders' Equity: Preferred stock, $.001 par value (1,500,000 authorized, no shares issued and outstanding) - - Common stock; par value $.001 per share; 20,000,000 shares authorized; 13,631,898 and 12,782,791 shares issued and outstanding 14,000 13,000 Additional paid-in capital 26,629,000 21,759,000 Accumulated other comprehensive income 334,000 282,000 Retained earnings 6,231,000 1,149,000 33,208,000 23,203,000 Less: cost of 249,184 and 210,902 shares of common stock in treasury (1,686,000) (1,075,000) Less: Unearned compensation (3,356,000) (107,000) Total stockholders' equity 28,166,000 22,021,000 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $36,927,000 $30,545,000 The accompanying notes are an integral part of these consolidated financial statements MEDIFAST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 2006 2005 2004 Revenue $74,086,000 $40,129,000 $27,340,000 Cost of sales (18,237,000) (10,161,000) (6,746,000) Gross profit 55,849,000 29,968,000 20,594,000 Selling, general, and administration (47,737,000) (25,894,000) (17,590,000) Income from operations 8,112,000 4,074,000 3,004,000 Other income (expense): Interest expense (369,000) (317,000) (245,000) Interest income 175,000 158,000 154,000 Stock compensation exp (533,000) - - Loss on sale of CCS (323,000) - - Other income (expense) 276,000 15,000 (7,000) (774,000) (144,000) (98,000) Income before provision for income taxes 7,338,000 3,930,000 2,906,000 Provision for income taxes (2,256,000) (1,203,000) (1,159,000) Net income 5,082,000 2,727,000 1,747,000 Less: Preferred stock dividend requirement - (291,000) (18,000) Net income attributable to common shareholders $5,082,000 $2,436,000 $1,729,000 Basic earnings per share $0.40 $0.20 $0.16 Diluted earnings per share $0.38 $0.19 $0.14 Weighted average shares outstanding - Basic 12,699,066 12,258,734 10,832,360 Diluted 13,482,894 12,780,959 12,413,424 The accompanying notes are an integral part of these consolidated financial statements
First Call Analyst:
FCMN Contact: bconnors@medifastdiet.com
SOURCE: Medifast, Inc.
CONTACT: Media, Kerry O'Neill, Warschawski of Medifast, Inc.,
+1-410-367-2700, or Investor Relations,
Web site: http://www.medifastdiet.com/