August 6, 2020
"This has been a strong quarter for Medifast, with strong demand and engagement among OPTAVIA Coaches and Clients helping to deliver meaningful revenue growth," said Dan Chard, CEO of Medifast. "We have more active earning Coaches than at any point in our history, and Coach productivity is up substantially quarter-over-quarter near all-time highs..."
"We have adapted well in the face of the COVID-19 pandemic, and the fundamentals of our business remain extremely positive. We are focused on our business goals, and we remain confident in our ability to deliver consistent long-term growth for our stockholders."
Second quarter revenue increased 17.6% to $220.0 million from revenue of $187.1 million for the second quarter of 2019. OPTAVIA-branded products represented 83% of consumable units sold for the second quarter compared to 75% for the same period a year ago.
The total number of active earning OPTAVIA Coaches increased 19.3% to 36,500, compared to 30,600 for the second quarter of 2019. The average revenue per active earning OPTAVIA Coach was $5,851 compared to $5,863 for the second quarter last year. While productivity was flat to the same period last year, productivity increased 9.7% sequentially compared to first quarter 2020.
Gross profit increased 13.2% to $159.3 million from $140.7 million for the second quarter of 2019. The company's gross profit as a percentage of revenue decreased 280 basis points year-over-year to 72.4% from 75.2%, which was primarily the result of promotional activity during the quarter as well as higher production costs.
- Revenue increased 17.6% to $220.0 million
- 19.3% growth in active earning OPTAVIA Coaches to 36,500
- Revenue per active earning OPTAVIA Coach increased 9.7% over the first quarter
- Net income increased 2.6% to $21.9 million
The company's balance sheet remains strong with cash, cash equivalents, and investment securities of $145.4 million as of June 30, 2020 compared to $92.7 million at December 31, 2019. The company remains free of interest-bearing debt.
The company declared a quarterly cash dividend of $13.4 million, or $1.13 per share that is payable on August 6, 2020. The company repurchased 46,075 common shares during the second quarter of 2020. There are approximately 2,323,000 shares of common stock remaining under the company's share repurchase program.
The complete Press Release and detailed financial tables can be found here:
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