OWINGS MILLS, Md., Nov. 14 /PRNewswire-FirstCall/ -- Medifast, Inc.
(NYSE: MED) announced today third quarter results for the period
ended September 30, 2006. For the quarter-ended September 30, 2006,
Medifast reported revenue of $19.6 million, a 79% increase from $11
million in the third quarter of 2005. The Company reported net
income of $1,490,000, or $0.12 per basic share ($0.11 per diluted
share), versus $607,000 or $0.05 per basic share ($0.05 per diluted
share) in 2005. Net income in the third quarter of 2006 was
positively impacted by a tax benefit received as a result of the
Company's investment in infrastructure in prior years. The third
quarter of 2006 represented the Company's 28th consecutive quarter
of profitability. For the nine months ended September 30, 2006,
Medifast reported revenue of $58.8 million, an increase of 97% from
$29.9 million for the nine months ended September 30, 2005. The
Company reported net income of $4.6 million, or $.37 per basic
share ($.34 per diluted share), versus $1.6 million or $.13 per
basis share ($.13 per diluted share) in 2005. The Company had
stockholders' equity of $27.2 million and working capital of $13
million at September 30, 2006, compared to $21.3 million and $9.6
million at September 30, 2005, respectively. "We are pleased with
the third quarter results, which were driven by our growing
customer base within a multi-channeled business. Our customer
acquisition strategy is driving brand awareness, which benefits our
direct to consumer business and also drives customers and business
opportunity leads into our direct sales network while fueling
significant walk-ins to our new medically supervised clinics, which
are now operational in test markets. We believe that our diverse
infrastructure model, which does not rely on a single distribution
method, will allow Medifast to benefit long term in the over $40
billion weight loss category. In a customer driven world, Medifast
is positioned to handle the needs of all types of customers.
Whether a person is looking to lose weight utilizing the advice of
a nutritionist, the support of a health coach, share their
experience with others in an online community or stay under medical
supervision in a clinic or doctor's office, Medifast provides a
program to cater to the individual needs of the customer," said
Michael S. McDevitt, Medifast President and CFO. "Medifast combines
products and programs that have been clinically proven and trusted
by physicians for over 25 years with a 21st century business model
that recognizes that every consumer is an individual. Medifast is
in the business of making people healthy in a time when we are
experiencing an obesity epidemic in our country. Medifast is
committed to providing a lasting solution for health and we are
excited about expanding our programs to include broader
recommendations for using Medifast for long term health as we move
forward," stated Bradley T. MacDonald, Chairman and CEO. 2006
Financial Guidance The company expects to generate revenue of $70
to $72 million for the year with after-tax earnings of $0.38 to
$0.40 per diluted share. Third Quarter Conference Call The Company
will hold a conference call and webcast at 5:00 PM EST on November
14, 2006 to discuss second quarter results. Interested participants
should call (866) 700-6979 when calling within the United States or
(617) 213-8836 when calling internationally. Please refer to pass
code 61684562. 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 85452066 for the replay. The
replay will be available until February 21, 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 February 21, 2007. Medifast has been
helping people lose weight and achieve better health for 25 years.
Its meal replacement foods have been proven effective in multiple
clinical studies, recommended by over 15,000 physicians and used by
more than 1 million customers. Medifast offers its customers
world-class customer service and nutrition support. 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. MEDIFAST, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30,
2006 December 31, 2005 (Unaudited) (Audited) ASSETS Current assets:
Cash $1,114,000 $1,484,000 Accounts receivable-net of allowance for
doubtful accounts of $100,000 764,000 985,000 Income tax refund
receivable 1,048,000 - Inventory 8,003,000 5,475,000 Investment
securities 2,420,000 2,700,000 Deferred compensation 640,000
525,000 Prepaid expenses and other current assets 2,927,000
3,273,000 Note receivable - current 230,000 - Deferred tax asset
90,000 - Total Current Assets 17,236,000 14,442,000 Property, plant
and equipment - net 11,578,000 9,535,000 Trademarks and intangibles
- net 4,690,000 6,508,000 Deferred tax asset, net of current
portion 282,000 - Note receivable, net of current portion 1,305,000
- Other assets 37,000 60,000 TOTAL ASSETS $35,128,000 $30,545,000
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable and accrued expenses $2,661,000 $2,263,000 Income taxes
payable 501,000 899,000 Line of credit 612,000 633,000 Current
maturities of long-term debt 502,000 561,000 Deferred tax liability
- current - 90,000 Total current liabilities 4,276,000 4,446,000
Long-term debt, net of current portion 3,603,000 3,977,000 Deferred
tax liability - non-current - 101,000 Total Liabilities 7,879,000
8,524,000 Stockholders' Equity: Common stock; par value $.001 per
share; 20,000,000 authorized; 13,544,481 and 12,782,791 shares
issued and outstanding, respectively 14,000 13,000 Additional
paid-in capital 26,326,000 21,759,000 Accumulated other
comprehensive income 208,000 282,000 Retained Earnings 5,787,000
1,149,000 32,335,000 23,203,000 Less: cost of 240,749 and 210,902
shares of common stock in treasury (1,565,000) (1,075,000) Less:
unearned compensation (3,521,000) (107,000) Total Stockholders'
Equity 27,249,000 22,021,000 TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $35,128,000 $30,545,000 MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Nine Months Ended Three
Months Ended September 30, September 30, 2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $58,779,000
$29,865,000 $19,642,000 $10,985,000 Cost of sales 14,334,000
7,370,000 4,705,000 2,675,000 Gross Profit 44,445,000 22,495,000
14,937,000 8,310,000 Selling, general, and administration
36,880,000 19,163,000 12,967,000 7,044,000 Income from operations
7,565,000 3,332,000 1,970,000 1,266,000 Other income/(expense)
Interest expense (271,000) ( 97,000) (90,000) (47,000) Loss on sale
of Consumer Choice Systems (323,000) - - - Stock compensation
expense (346,000) - (164,000) - Interest income 137,000 - 48,000 -
Other income (expense) 184,000 10,000 24,000 7,000 Income before
provision for income taxes 6,946,000 3,245,000 1,788,000 1,226,000
Provision for income tax (expense) (2,307,000) (1,367,000)
(298,000) (609,000) Net income 4,639,000 1,878,000 1,490,000
617,000 Less: Preferred stock dividend requirement - (291,000) -
(10,000) Net income $4,639,000 $1,587,000 $1,490,000 $607,000 Basic
earnings per share $0.37 $0.13 $0.12 $0.05 Diluted earnings per
share $0.34 $0.13 $0.11 $0.05 Weighted average shares outstanding -
Basic 12,657,842 12,235,475 12,767,629 12,595,175 Diluted
13,493,421 12,438,531 13,603,208 12,989,147 DATASOURCE: Medifast,
Inc. CONTACT: Investor Relations, Medifast, ; or Media: Kerry
O'Neill, Warschawski, +1-410-367-2700, , for Medifast Web Site:
http://www.medifastdiet.com/
Copyright