NutriSystem Reports Q2 2018 Results

July 30, 2018 - CEO Dawn Zier reported that; “Our announcements around the recently launched DNA Body Blueprint™ and the branded lines of vitamin packs showcase our focus on science-backed personalized nutrition to drive not only weight loss, but overall health. We believe our efforts to date, coupled with second-half investments in our innovation pipeline, branding and digital media expansion, will pave the way for meaningful growth and profitably expand customer reach in 2019 and beyond.”

  • Revenue was $191.3 million compared to $194.9 million.
  • Gross margin was 53.8% compared to 54.3%.
  • Net income was $26.1 million compared to $24.4 million.
  • Diluted income per common share was $0.87 compared to $0.80.
  • Third quarter revenue is expected to be in the range of $162 to $167 million, net income between $14.9 and $16.5 million, diluted income per common share between $0.50 and $0.55.
  • Full year 2018 revenue is expected to be in the range of $693 to $708 million, net income between $62.4 and $65.5 million compared to the previous range of $61.8 to $64.8 million, diluted income per common share between $2.07 and $2.17 compared to the previous range of $2.04 to $2.14.

Mike Monahan, Chief Financial Officer, commented, “Our second quarter and year-to-date results demonstrate the strength of our business model as we continued to generate solid EBITDA. We were able to repurchase $25 million of stock in the first six months of the year and will continue to use our strong free cash flow to enhance the long-term value of our company.”

Conference Call Information

In the conference call with analysts, management said that cost per acquisition improved and the average value per customer was up. The company expects modest growth in Q3 and Q4, and it will be testing some new ads and allocating $2 million for testing of ads in preparation for the 2019 diet season. The firm expects to put more emphasis on digital marketing, as well as on "social influencers". The company has $83 million of cash and marketable securities on hand.

The complete press release can be found here:

https://seekingalpha.com/pr/17229706-nutrisystem-announces-second-quarter-2018-financial-results-exceeding-expectations

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