Feb. 27, 2017 – Dawn Zier, the firm’s CEO reported that: “In 2016, we exceeded top and bottom-line expectations…..We expect our momentum to continue in 2017 with NutriSystem having a strong start to the diet season, coupled with the official launch of the South Beach Diet…We believe we are well–positioned to deliver our fourth consecutive year of double-digit revenue growth…”
Revenues rose 18% in 2016, to $545 million (up from $462 mill. in 2015). Net income rose 36% to $35.5 million. First quarter 2017 revenues are expected to be in the range of $202-207 million, and full–year 2017 revenues are expected to reach $630-650 million. Consequently, Q1 sales should account for 32% of total year sales.
Conference Call Findings
In a conference call, management reported that the South Beach Diet brand was off to a strong start in January, and revenues from this line are expected at $20-25 million for the year. More traction and revenues are expected to kick in during 2018. The firm’s gross profit margin stood at 52.9%, with additional improvement expected this year. Marketing spend stood at 27.9% of sales. The company posted $142 mill. in reactivation revenues in 2016. Retail channel sales of $35 mill. are expected this year, on modest growth. The company reported strong growth across all lines and channels during 2016, attributed to a combination of things; an increase in the average spend per customer, upsells (Turbo shakes, etc.) to customers, an increase in new customers and reactivations, pricing, effective marketing, plus their growing digital channel. Management says that their messages and programs have been made very responsive and mobile-friendly–giving customers and prospects the ability to reach the company and interact 7 days a week, 17 hrs. per day, via online, chat, and phone and via a variety of devices.
The complete Press Release and financial tables can be found here:
http://www.snl.com/IRWebLinkX/file.aspx?IID=4089088&FID=38257861