FORT WASHINGTON, Pa.,
April 30, 2015 /PRNewswire/ --
Nutrisystem, Inc. (NASDAQ: NTRI), a leading provider of weight
management products and services, today reported that the Company
exceeded its previously provided revenue, adjusted EBITDA, and
earnings per share guidance for the first quarter 2015 and is
raising its previously provided outlook for the full year.
Dawn Zier, President and Chief
Executive Officer, stated, "I am pleased that we were able to
deliver double-digit revenue growth for the second diet season in a
row. We achieved our seventh consecutive quarter of year-over-year
revenue growth as we continued to innovate and provide our growing
customer base with the solutions they desire to best reach their
weight loss goals. We saw momentum build throughout the quarter as
we optimized our multi-channel campaigns resulting in better than
expected customer activations, improved paid length of stay, and
higher gross margins."
First Quarter 2015 Compared to First Quarter 2014
- Revenue increased 12% to $137.2
million compared to $122.2
million.
- Gross profit margin improved 310 basis points to 52.0% and
gross profit increased 19% to $71.4
million.
- Adjusted EBITDA grew 146% to $8.0
million compared to $3.2
million.
- Net income increased to $2.9
million compared to $0.2
million.
- Earnings per share increased to $0.10 per share from $0.01 per share.
Ms. Zier added, "Our marketing, product offerings, and
engagement initiatives are resonating well with consumers and
driving favorable financial performance. We are confident in our
ability to deliver ongoing growth and profitability across both our
direct-to-consumer and retail businesses."
Mike Monahan, Chief Financial
Officer, commented, "The improvements in our business performance
enable us to increase our revenue, adjusted EBITDA, and earnings
per share guidance ranges for the full year. Our guidance implies
year-over-year revenue and profit growth supported by continued
investments in media and product innovation."
Second Quarter and Updated Full Year 2015 Guidance
Nutrisystem's second quarter and full year 2015 guidance is as
follows. Reconciliations of certain GAAP to non-GAAP measures are
provided later in this press release.
- Second quarter revenue expected to be in the range of
$123 to $128 million, adjusted EBITDA
between $20.1 and $22.1 million, and
earnings per share between $0.35 and
$0.40.
- Full year revenue expected to be in the range of $440 to $455 million, adjusted EBITDA between
$51.6 and $55.6 million, and earnings
per share between $0.81 and
$0.91.
The Board of Directors has declared a quarterly dividend of
$0.175 per share, payable
May 21, 2015 to stockholders of
record as of May 11, 2015.
Conference Call and Webcast
Management will host a conference call to discuss first quarter
2015 financial results today at 5:00 PM
Eastern time. The conference call will include remarks from
President and Chief Executive Officer Dawn
Zier, Chief Financial Officer Mike
Monahan, and Chief Marketing Officer Keira Krausz. A webcast of the conference call
will be available live on the Investor Relations section of
Nutrisystem's website at www.nutrisystem.com. Interested parties
unable to access the conference call via the webcast may dial
877-407-3982. A replay of the conference call will be available on
the Company website for 30 days following the event and can be
accessed at 877-870-5176 using replay pin number 13606842.
Non-GAAP Financial Measures
Within this announcement, the Company makes reference to certain
adjusted financial measures, which have directly comparable GAAP
financial measures as identified in this press release. These
adjusted measures are provided so that investors have the same
financial data that management uses with the belief that it will
assist the investment community in properly assessing the
performance of the Company for the periods being reported and
future periods. The presentation of this additional information is
not meant to be considered a substitute for measures prepared in
accordance with GAAP.
In this release, EBITDA is defined as net income excluding
interest, income taxes and depreciation and amortization. Adjusted
EBITDA is defined as EBITDA excluding non-cash employee
compensation.
Forward-Looking Statements
Information provided and statements contained in this press
release that are not purely historical, such as second quarter and
full year 2015 guidance, and the Company's financial and
operational outlook, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements only
speak as of the date of this press release and the Company assumes
no obligation to update the information included in this press
release. Statements made in this press release that are
forward-looking in nature may involve risks and uncertainties.
Accordingly, readers are cautioned that any such forward-looking
statements are not guarantees and are subject to certain risks,
uncertainties and assumptions that are difficult to predict,
including, without limitation, risks that consumer spending may
decline or that U.S. and global macroeconomic conditions may worsen
resulting in reduced demand for the Company's products, risks
relating to changes in consumer preferences away from the Company's
food offerings including its pre-packaged foods, risks relating to
the effectiveness and efficiency of the Company's marketing
expenditures which may not result in increased revenue or generate
sufficient levels of brand name and program awareness, risks if the
Company is unable to obtain sufficient quantities, quality and
variety of food products in a timely and low-cost manner from its
food vendors, risks of exposure to product liability claims if the
use of the Company's products results in illness or injury, risks
if the Company becomes subject to health or advertising related
claims from its customers, competitors or governmental and
regulatory bodies, risks relating to increased competition from
other weight management providers, and risks relating to
cybersecurity breaches. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable as of the date made, expectations may prove to have been
materially different from the results expressed or implied by such
forward-looking statements. Unless otherwise required by law, the
Company also disclaims any obligation to update its view of any
such risks or uncertainties or to announce publicly the result of
any revisions to the forward-looking statements made in this press
release.
About Nutrisystem, Inc.
Nutrisystem, Inc. (NASDAQ: NTRI) is a leader in the weight loss
industry, having helped millions of people lose weight over the
course of more than 40 years. The Company's weight loss solutions
include Nutrisystem® My Way®, a 28-day structured food delivery
program, multi-day kits available at select retail outlets and a
new free app and digital platform NuMi® by Nutrisystem. The
Company's current product line offers customers the most meal
choices, including more than 100 foods containing no artificial
preservatives or artificial flavors. Nutrisystem® plans are
consistent with national guidelines for dietary intake meeting
targets for fat, sodium, sugar, cholesterol, fiber and physical
activity and include comprehensive counseling options from trained
weight-loss coaches, registered dietitians and certified diabetes
educators. Plans can be customized to specific dietary needs and
preferences including the Nutrisystem® D® program for people with
Type 2 diabetes or pre-diabetes. For more information, go to
NutrisystemNews.com.
|
NUTRISYSTEM, INC.
AND SUBSIDIARIES
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
(Unaudited, in
thousands, except per share amounts)
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
REVENUE
|
$ 137,225
|
|
$ 122,228
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
Cost of
revenue
|
65,869
|
|
62,421
|
|
Marketing
|
47,663
|
|
41,744
|
|
General and
administrative
|
16,945
|
|
15,918
|
|
Depreciation and
amortization
|
2,224
|
|
1,758
|
|
Total
costs and expenses
|
132,701
|
|
121,841
|
|
Operating
income
|
4,524
|
|
387
|
|
INTEREST EXPENSE,
net
|
49
|
|
45
|
|
Income before income tax expense
|
4,475
|
|
342
|
|
INCOME TAX
EXPENSE
|
1,532
|
|
118
|
|
Net
income
|
$ 2,943
|
|
$ 224
|
|
|
|
|
|
BASIC INCOME PER
COMMON SHARE
|
$ 0.10
|
|
$ 0.01
|
|
DILUTED INCOME PER
COMMON SHARE
|
$ 0.10
|
|
$ 0.01
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING:
|
|
|
|
|
Basic
|
28,392
|
|
28,065
|
|
Diluted
|
28,933
|
|
28,489
|
|
|
|
|
|
DIVIDENDS DECLARED
PER COMMON SHARE
|
$ 0.175
|
|
$ 0.175
|
|
|
|
|
|
|
NUTRISYSTEM, INC.
AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
(Unaudited, in
thousands, except par value amounts)
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$ 24,881
|
|
$ 12,620
|
|
Short term
investments
|
11,695
|
|
16,627
|
|
Receivables
|
22,763
|
|
12,206
|
|
Inventories
|
24,210
|
|
26,899
|
|
Prepaid income
taxes
|
1,591
|
|
0
|
|
Deferred income
taxes
|
2,652
|
|
1,051
|
|
Other current
assets
|
5,765
|
|
7,095
|
|
Total current assets
|
93,557
|
|
76,498
|
|
FIXED ASSETS,
net
|
27,001
|
|
26,851
|
|
DEFERRED INCOME
TAXES
|
3,440
|
|
5,461
|
|
OTHER
ASSETS
|
1,112
|
|
1,082
|
|
Total assets
|
$ 125,110
|
|
$ 109,892
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$ 49,037
|
|
$ 34,261
|
|
Accrued payroll and
related benefits
|
4,732
|
|
6,550
|
|
Income taxes payable
|
0
|
|
301
|
|
Deferred
revenue
|
8,246
|
|
4,424
|
|
Other accrued expenses
and current liabilities
|
6,907
|
|
6,131
|
|
Total current
liabilities
|
68,922
|
|
51,667
|
|
NON-CURRENT
LIABILITIES
|
2,386
|
|
2,710
|
|
Total liabilities
|
71,308
|
|
54,377
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Preferred stock, $.001
par value (5,000 shares authorized, no shares issued and
outstanding)
|
0
|
|
0
|
|
Common stock, $.001
par value (100,000 shares authorized; shares
issued – 29,305 at March 31, 2015 and 28,990 at December 31,
2014)
|
29
|
|
29
|
|
Additional paid-in
capital
|
32,583
|
|
29,992
|
|
Treasury stock, at
cost, 369 shares at March 31, 2015 and 249 shares at December 31,
2014
|
(5,224)
|
|
(3,062)
|
|
Retained
earnings
|
26,388
|
|
28,552
|
|
Accumulated other
comprehensive income
|
26
|
|
4
|
|
Total stockholders' equity
|
53,802
|
|
55,515
|
|
Total liabilities and stockholders' equity
|
$ 125,110
|
|
$ 109,892
|
|
NUTRISYSTEM, INC.
AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
(Unaudited, in
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
$ 2,943
|
|
$ 224
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
2,224
|
|
1,758
|
|
Loss on disposal of
fixed assets
|
14
|
|
0
|
|
Share–based
compensation expense
|
1,208
|
|
1,093
|
|
Deferred income tax
expense (benefit)
|
405
|
|
(491)
|
|
Other non-cash
charges
|
2
|
|
12
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
(10,557)
|
|
(10,138)
|
|
Inventories
|
2,689
|
|
1,720
|
|
Other
assets
|
1,300
|
|
(325)
|
|
Accounts
payable
|
15,101
|
|
13,533
|
|
Accrued payroll and
related benefits
|
(1,818)
|
|
(2,463)
|
|
Deferred
revenue
|
3,822
|
|
4,045
|
|
Income
taxes
|
(1,888)
|
|
437
|
|
Other accrued expenses
and liabilities
|
470
|
|
450
|
|
Net cash provided by operating activities
|
15,915
|
|
9,855
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Purchases of short
term investments
|
(1,752)
|
|
(2,475)
|
|
Proceeds from sales of
short term investments
|
6,716
|
|
2,459
|
|
Capital
additions
|
(2,731)
|
|
(1,312)
|
|
Net cash provided by (used in) investing activities
|
2,233
|
|
(1,328)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Exercise of stock
options
|
268
|
|
91
|
|
Taxes related to
equity compensation awards, net
|
(1,048)
|
|
(353)
|
|
Payment of
dividends
|
(5,107)
|
|
(5,110)
|
|
Net cash used in
financing activities
|
(5,887)
|
|
(5,372)
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
12,261
|
|
3,155
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
12,620
|
|
9,772
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$ 24,881
|
|
$ 12,927
|
|
NUTRISYSTEM, INC.
AND SUBSIDIARIES
|
|
|
ADJUSTED EBITDA
RECONCILIATION TO GAAP RESULTS
|
|
|
(Unaudited, in
thousands)
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Net income
|
$ 2,943
|
|
$ 224
|
|
Interest expense, net
|
49
|
|
45
|
|
Income tax expense
|
1,532
|
|
118
|
|
Depreciation and amortization
|
2,224
|
|
1,758
|
|
EBITDA
|
6,748
|
|
2,145
|
|
Non-cash employee compensation
|
|
|
|
|
expense
|
1,208
|
|
1,093
|
|
Adjusted
EBITDA
|
$ 7,956
|
|
$ 3,238
|
|
NUTRISYSTEM, INC.
AND SUBSIDIARIES
|
|
|
ADJUSTED EBITDA
GUIDANCE RECONCILIATION TO GAAP MEASURES
|
|
|
(Unaudited, in
thousands)
|
|
|
Three Months
Ending
|
|
Year
Ending
|
|
June 30,
2015
|
|
December 31,
2015
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 10,437
|
|
$ 11,749
|
|
$ 24,023
|
|
$ 26,647
|
|
Interest
expense, net
|
60
|
|
60
|
|
230
|
|
230
|
|
Income
tax expense
|
5,473
|
|
6,161
|
|
12,597
|
|
13,973
|
|
Depreciation and amortization
|
2,290
|
|
2,290
|
|
9,100
|
|
9,100
|
|
EBITDA
|
18,260
|
|
20,260
|
|
45,950
|
|
49,950
|
|
Non-cash
employee
compensation expense
|
1,840
|
|
1,840
|
|
5,650
|
|
5,650
|
|
Adjusted
EBITDA
|
$ 20,100
|
|
$ 22,100
|
|
$ 51,600
|
|
$ 55,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA is defined as net income excluding interest, income taxes
and depreciation and amortization. Adjusted EBITDA is defined as
EBITDA excluding non-cash employee compensation.
Statement Regarding Non-GAAP Financial Measures
We believe EBITDA, adjusted EBITDA and adjusted EBITDA guidance
are useful performance metrics for management and investors because
they are indicative of the ongoing operations of the Company. These
non-GAAP measures exclude certain non-cash and non-operating items
to facilitate comparisons and provide a meaningful measurement that
is focused on the performance of the ongoing operations of the
Company.
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SOURCE Nutrisystem, Inc.