March 3, 2015 – According to Dawn Zier, President and CEO: “I am pleased we have delivered six consecutive quarters of year-over-year revenue growth. Our strong results for fiscal 2014 demonstrate the successful execution of our turnaround plan as well as our ability to be nimble and proactively address evolving customer needs. We’re attracting new customers to the brand, successfully launching new products, implementing new pricing strategies, and operating with strategic and financial discipline to drive growth to our top and bottom lines.”
Revenue increased 13% to $403.1 million, compared to $358.1 million in 2013. Net income increased 66% to $19.3 million, compared to adjusted net income of $11.6 million in 2013. Q4 2014 revenue grew 13% to $79.2 million, compared to $69.9 million in the fourth quarter of 2013.
First Quarter and Full Year 2015 Guidance
First quarter revenue expected to be in the range of $129 to $134 million. Full year revenue expected to be in the range of $425 to $445 million. Last year, the firm spent $107+ million on marketing and advertising, equal to 26.7% of sales.
Complete financial tables can be found here:
Conference Call Details – Marketdata Commentary
Marketdata analysts listened to the conference call after the market’s close on March 3. The firm reported $27 mill. in retail sales (Walmart, Sam’s Club), and it grew reactivation revenues. They successfully implemented a 4-5 price increase and improved customer length of stay. They also pointed out that 100 of their 150 food products don’t contain artificial preservatives, in tune with consumer preferences. Management shares Marketdata’s opinion that diet and fitness apps serve to complement rather than replace their weight loss program. We feel that this company is on the right track, and the financial results prove it–sales grew in 2014 rather than the declines posted by some major competitors. They are expanding retail channels, have programs for different dieter groups, are innovative, are not afraid of having partners, and invest heavily in marketing to spur demand.