According to management: "Our ongoing efforts to execute on our strategic goals enabled us to generate results ahead of our expectations with first quarter earnings per share 48% higher than the prior year period," commented Michael C. MacDonald, Medifast's Chairman and Chief Executive Officer. "For the remainder of 2013, we remain optimistic that our profitable growth will continue as we increase consumer reach and grow Medifast's brand awareness. As the strength of our business continues, our team remains focused on realizing further operational efficiency improvements to maximize profitability throughout our Take Shape for Life, Medifast Direct, Medifast Weight Control Centers, and Wholesale Physicians sales channels."
For the first quarter ended March 31, 2013, Medifast net revenue increased 8% to $96.0 million from net revenue of $88.9 million in the first quarter of the prior year.
Revenue in the direct sales channel, Take Shape for Life, increased 12% to $59.4 million in the first quarter of 2013 compared to $53.0 million in the same period last year. Growth for Take Shape for Life was driven by increased customer product sales. The company ended the first quarter with 11,300 active health coaches and the average revenue per health coach per month for the quarter increased 4% to $1,720 compared to $1,650 in the first quarter of 2012.
Net income was $5.9 million, or $0.43 per diluted share based on approximately 13.9 million shares outstanding compared to net income of $4.0 million, or $0.29 per diluted share, for the comparable quarter last year.
For fiscal year 2013 the Company reiterated its previous guidance of net revenue to be in the range of $385 to $400 million and earnings per diluted share in the range of $1.70 to $1.80.