May 7, 2015 - According to Medifast's CEO: "We are pleased to get off to a good start this year by exceeding our first quarter top and bottom line guidance," said Michael C. MacDonald. "We continue to execute well operationally while putting the plans in place to advance our three key strategic priorities; to grow and simplify Take Shape For Life, optimize Medifast Direct revenues and deliver product and program innovation."
Income from continuing operations was $4.4 million, or $0.36 per diluted share, compared to $6.5 million, or $0.49 per diluted share. For Q1, Medifast net revenue from continuing operations fell 7% to $73.4 million from net revenue of $79.2 million in Q1 2014.
Revenue in the direct sales channel, Take Shape for Life, fell by 9% to $52.1 million in Q1 2015 compared to $57.0 million in the same period last year. The company ended Q1 with about 10,500 active Health Coaches and the average revenue per Health Coach per month for the quarter was $1,564 compared to $1,626 in Q1 2014. The Direct channel revenue fell by 16% to $14.4 million, compared to $17.1 million in Q1 2014. Revenue in the Franchise Weight Control Centers channel increased 31% to $4.7 million from $3.6 million in Q1 last year.
There were 70 franchise centers in operation at the end of Q1 2015 vs. 49 centers at the end of the same period last year. Gross profit for Q1 2015 was $53.8 million, compared to $57.9 million in Q1 2014. The company's gross profit as a percentage of net revenue increased 20 basis points to 73.3% versus 73.1%.
Outlook... Medifast expects Q2 2015 net revenue from continuing operations to be in the range of approximately $72.0 to $74.0 million. For fiscal year 2015, the company reiterated its previous guidance of revenue from continuing operations to be in the range of $285 to $300 million.
The complete press release and financial tables can be found here: