x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
13-3714405
|
|
(State
or other jurisdiction
of
organization)
|
(I.R.S.
employer
Identification
no.)
|
Class
|
Outstanding at
August 9, 2010
|
|
Common
stock, $.001 par value per share
|
15,419,601
shares
|
Part
I - Financial Information:
|
||
Item
1 – Financial Statements
|
||
Condensed
Consolidated Balance Sheets as of June 30, 2010 (unaudited) and December
31, 2009 (audited)
|
3
|
|
Condensed
Consolidated Statements of Income (unaudited) for the Three and Six months
Ended June 30, 2010 and 2009
|
4
|
|
Condensed
Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for
the Six months Ended June 30,2010
|
5
|
|
Condensed
Consolidated Statements of Cash Flows (unaudited) for the Six months Ended
June 30, 2010 and 2009
|
6
|
|
Notes
to Unaudited Condensed Consolidated Financial Statements
|
7
|
|
Item
2 - Management’s Discussion and Analysis of Financial Condition And
Results of Operations
|
14
|
|
Item
3 – Quantitative and Qualitative Disclosures about Market
Risk
|
24
|
|
Item
4 – Controls and Procedures
|
24
|
|
Part
II - Other Information:
|
||
Item
1 – Legal Proceedings
|
25
|
|
Item
1A – Risk Factors
|
25
|
|
Item
5 – Other Information
|
25
|
|
Item
6 - Exhibits
|
27
|
(Unaudited)
|
(Audited)
|
|||||||
June 30, 2010
|
December 31, 2009
|
|||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 24,243,000 | $ | 10,604,000 | ||||
Accounts
receivable-net of allowance for sales returns and doubtful
accounts of $230,000 and $100,000 respectively
|
1,004,000 | 676,000 | ||||||
Inventory
|
15,122,000 | 11,232,000 | ||||||
Investment
securities
|
6,908,000 | 5,699,000 | ||||||
Deferred
compensation
|
- | 641,000 | ||||||
Income
taxes - prepaid
|
2,315,000 | 2,211,000 | ||||||
Prepaid
expenses and other current assets
|
1,924,000 | 3,123,000 | ||||||
Note
receivable - current
|
46,000 | 46,000 | ||||||
Deferred
tax asset
|
133,000 | 100,000 | ||||||
Total
current assets
|
51,695,000 | 34,332,000 | ||||||
Property,
plant and equipment - net
|
26,138,000 | 23,237,000 | ||||||
Trademarks
and intangibles - net
|
3,526,000 | 4,104,000 | ||||||
Note
receivable, net of current assets
|
110,000 | 112,000 | ||||||
Other
assets
|
245,000 | 379,000 | ||||||
TOTAL
ASSETS
|
$ | 81,714,000 | $ | 62,164,000 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable and accrued expenses
|
12,656,000 | 4,967,000 | ||||||
Income
taxes payable
|
- | 22,000 | ||||||
Current
maturities of long-term debt
|
796,000 | 796,000 | ||||||
Total
current liabilities
|
13,452,000 | 5,785,000 | ||||||
Other
liabilities
|
||||||||
Long-term
debt, net of current portion
|
5,046,000 | 5,444,000 | ||||||
Deferred
tax liability
|
1,366,000 | 1,360,000 | ||||||
Total
liabilities
|
19,864,000 | 12,589,000 | ||||||
Stockholders'
Equity:
|
||||||||
Preferred
stock, $.001 par value (1,500,000 authorized, no shares issued and
outstanding)
|
- | - | ||||||
Common
stock; par value $.001 per share; 20,000,000 shares
authorized;
|
||||||||
15,419,601
issued and 15,050,693 outstanding at 6/30/10 and 15,398,941 issued and
15,031,103 shares outstanding at 12/31/09
|
16,000 | 16,000 | ||||||
Additional
paid-in capital
|
30,523,000 | 28,456,000 | ||||||
Accumulated
other comprehensive income (loss)
|
(36,000 | ) | 159,000 | |||||
Retained
earnings
|
34,702,000 | 24,264,000 | ||||||
Less:
cost of 368,908 and 367,838 shares of common stock in
treasury
|
(3,355,000 | ) | (3,320,000 | ) | ||||
Total
stockholders' equity
|
61,850,000 | 49,575,000 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 81,714,000 | $ | 62,164,000 |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenue
|
$ | 66,660,000 | $ | 41,721,000 | $ | 127,245,000 | $ | 76,326,000 | ||||||||
Cost
of sales
|
17,194,000 | 10,908,000 | 32,011,000 | 19,888,000 | ||||||||||||
Gross
Profit
|
49,466,000 | 30,813,000 | 95,234,000 | 56,438,000 | ||||||||||||
Selling,
general, and administration
|
40,210,000 | 26,025,000 | 77,777,000 | 47,635,000 | ||||||||||||
Income
from operations
|
9,256,000 | 4,788,000 | 17,457,000 | 8,803,000 | ||||||||||||
Other
income/(expense)
|
||||||||||||||||
Interest
income/ (expense), net
|
44,000 | 3,000 | 71,000 | (1,000 | ) | |||||||||||
Other
expense
|
(96,000 | ) | (32,000 | ) | (110,000 | ) | (67,000 | ) | ||||||||
(52,000 | ) | (29,000 | ) | (39,000 | ) | (68,000 | ) | |||||||||
Income
before provision for income taxes
|
9,204,000 | 4,759,000 | 17,418,000 | 8,735,000 | ||||||||||||
Provision
for income taxes
|
(3,666,000 | ) | (1,760,000 | ) | (6,979,000 | ) | (3,251,000 | ) | ||||||||
Net
income
|
$ | 5,538,000 | $ | 2,999,000 | $ | 10,439,000 | $ | 5,484,000 | ||||||||
Basic
earnings per share
|
$ | 0.40 | $ | 0.22 | $ | 0.75 | $ | 0.41 | ||||||||
Diluted
earnings per share
|
$ | 0.38 | $ | 0.20 | $ | 0.71 | $ | 0.37 | ||||||||
Weighted
average shares outstanding -
|
||||||||||||||||
Basic
|
14,014,744 | 13,417,667 | 13,970,333 | 13,277,293 | ||||||||||||
Diluted
|
14,742,033 | 15,039,547 | 14,666,398 | 14,899,173 |
Par Value
|
Additional
|
Accumulated
|
||||||||||||||||||||||||||
Number
|
$0.001
|
Paid-In
|
Retained
|
other comp
|
Treasury
|
|||||||||||||||||||||||
of Shares
|
Amount
|
Capital
|
Earnings
|
income/(loss)
|
Stock
|
Total
|
||||||||||||||||||||||
Balance,
December 31, 2009
|
15,398,941 | $ | 16,000 | $ | 28,456,000 | $ | 24,263,000 | $ | 159,000 | $ | (3,320,000 | ) | $ | 49,574,000 | ||||||||||||||
Share-based
compensation to executives and directors
|
1,219,000 | 1,219,000 | ||||||||||||||||||||||||||
Shares
issued
|
10,660 | 200 | 50,000 | 50,200 | ||||||||||||||||||||||||
Exercise
of stock options
|
10,000 | 100 | 34,000 | 34,100 | ||||||||||||||||||||||||
Purchase
of treasury stock
|
(35,000 | ) | (35,000 | ) | ||||||||||||||||||||||||
Adjustment
for stock compensation tax benefit
|
764,000 | 764,000 | ||||||||||||||||||||||||||
Net
change in unrealized gain on investments, net of
taxes
|
(195,000 | ) | (195,000 | ) | ||||||||||||||||||||||||
Net
income
|
10,439,000 | 10,439,000 | ||||||||||||||||||||||||||
Balance,
June 30, 2010
|
15,419,601 | $ | 16,300 | $ | 30,523,000 | $ | 34,702,000 | $ | (36,000 | ) | $ | (3,355,000 | ) | $ | 61,850,300 |
Six Months Ended June 30,
|
||||||||
2010
|
2009
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 10,439,000 | $ | 5,484,000 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Depreciation
and amortization
|
$ | 2,817,000 | $ | 2,536,000 | ||||
Realized
loss (gain) on investment securities
|
15,000 | 67,000 | ||||||
Common
stock issued for services
|
50,000 | 122,000 | ||||||
Vesting
of share-based compensation
|
1,219,000 | 1,119,000 | ||||||
Deferred
income taxes
|
(5,000 | ) | (220,000 | ) | ||||
Changes
in assets and liabilities which provided (used) cash:
|
||||||||
Accounts
receivable
|
(328,000 | ) | (134,000 | ) | ||||
Inventory
|
(3,890,000 | ) | 2,668,000 | |||||
Prepaid
expenses & other current assets
|
1,200,000 | 312,000 | ||||||
Deferred
compensation
|
577,000 | (4,000 | ) | |||||
Other
assets
|
134,000 | (2,000 | ) | |||||
Income
taxes
|
(127,000 | ) | (646,000 | ) | ||||
Accounts
payable and accrued expenses
|
7,688,000 | 582,000 | ||||||
Net
cash provided by operating activities
|
19,789,000 | 11,884,000 | ||||||
Cash
Flow from Investing Activities:
|
||||||||
Purchase
of investment securities
|
(1,378,000 | ) | (127,000 | ) | ||||
Purchase
of property and equipment
|
(5,139,000 | ) | (1,857,000 | ) | ||||
Net
cash (used in) investing activities
|
(6,517,000 | ) | (1,984,000 | ) | ||||
Cash
Flow from Financing Activities:
|
||||||||
Repayment
of long-term debt, net
|
(398,000 | ) | (128,000 | ) | ||||
Increase
in line of credit
|
- | (471,000 | ) | |||||
Decrease
in note receivable
|
2,000 | 68,000 | ||||||
Excess
tax benefits from share-based payment arrangements
|
764,000 | - | ||||||
Proceeds
from issuance of common stock
|
34,000 | - | ||||||
Purchase
of treasury stock
|
(35,000 | ) | (102,000 | ) | ||||
Net
cash provided by (used in) financing activities
|
367,000 | (633,000 | ) | |||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
13,639,000 | 9,267,000 | ||||||
Cash
and cash equivalents - beginning of the period
|
10,604,000 | 973,000 | ||||||
Cash
and cash equivalents - end of period
|
$ | 24,243,000 | $ | 10,240,000 | ||||
Supplemental
disclosure of cash flow information:
|
||||||||
Interest
paid
|
$ | 55,000 | $ | 37,000 | ||||
Income
taxes
|
$ | 5,304,000 | $ | 4,132,000 |
|
1.
|
Basis
of Presentation
|
|
2.
|
Presentation
of Financial Statements
|
|
3.
|
Recent
Accounting Pronouncements
|
|
4.
|
Revenue
Recognition
|
|
5.
|
Inventories
|
2010
|
2009
|
|||||||
Raw
Materials
|
$ | 5,775,000 | $ | 3,900,000 | ||||
Packaging
|
3,243,000 | 2,628,000 | ||||||
Finished
Goods
|
6,104,000 | 4,704,000 | ||||||
$ | 15,122,000 | $ | 11,232,000 |
|
6.
|
Intangible
Assets
|
As of June 30, 2010
|
As of December 31, 2009
|
|||||||||||||||
Gross Carrying
|
Accumulated
|
Gross Carrying
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Customer
lists
|
$ | 8,567,000 | $ | 6,544,000 | $ | 8,567,000 | $ | 6,086,000 | ||||||||
Non-compete
agreements
|
$ | 840,000 | $ | 840,000 | $ | 840,000 | $ | 840,000 | ||||||||
Trademarks,
patents, and copyrights finite life
|
1,622,000 | 1,046,000 | 1,622,000 | 926,000 | ||||||||||||
infinite
life
|
927,000 | - | 927,000 | - | ||||||||||||
Total
|
$ | 11,956,000 | $ | 8,430,000 | $ | 11,956,000 | $ | 7,852,000 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Customer
lists
|
$ | 229,000 | $ | 365,000 | $ | 458,000 | $ | 730,000 | ||||||||
Trademarks
and patents
|
60,000 | 60,000 | 120,000 | 120,000 | ||||||||||||
Total
Trademarks and Intangibles
|
$ | 289,000 | $ | 425,000 | $ | 578,000 | $ | 850,000 |
|
7.
|
Earnings
per Share
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net
income
|
$ | 5,538,000 | $ | 2,999,000 | $ | 10,439,000 | $ | 5,484,000 | ||||||||
Denominator:
|
||||||||||||||||
Weighted
average shares of common stock outstanding
|
14,014,744 | 13,417,667 | 13,970,333 | 13,277,293 | ||||||||||||
Effect
of dilutive common stock equivalents
|
727,289 | 1,621,880 | 696,065 | 1,621,880 | ||||||||||||
Weighted
average diluted common shares outstanding
|
14,742,033 | 15,039,547 | 14,666,398 | 14,899,173 | ||||||||||||
EPS
|
||||||||||||||||
Basic
|
$ | 0.40 | $ | 0.22 | $ | 0.75 | $ | 0.41 | ||||||||
Diluted
|
$ | 0.38 | $ | 0.20 | $ | 0.71 | $ | 0.37 |
|
8.
|
Estimates
|
|
9.
|
Deferred
Compensation Plan
|
|
10.
|
Fair
Value Measurements
|
|
Level
1
|
Valuation
is based upon quoted prices for identical instruments traded in active
markets.
|
|
Level
2
|
Valuation
is based upon quoted prices for similar instruments in active markets,
quoted prices for identical or similar instruments that are not active,
and model-based valuation techniques for which all significant assumptions
are observable in the market.
|
|
Level
3
|
Valuation
is generated from model-based techniques that use significant assumptions
not observable in the market. These unobservable assumptions
reflect our own estimates of assumptions that market participants would
use in pricing the asset or liability. Valuation techniques
include use of option pricing models, discounted cash flow models and
similar techniques.
|
Level I
|
Level II
|
Level III
|
Total
|
|||||||||||||
Investment
securities
|
$ | 6,908,000 | - | - | $ | 6,908,000 | ||||||||||
Cash
equivalents
|
24,243,000 | - | - | 24,243,000 | ||||||||||||
Total
Assets
|
$ | 31,151,000 | $ | - | $ | - | $ | 31,151,000 | ||||||||
Liabilities
|
5,842,000 | - | 5,842,000 | |||||||||||||
Total
Liabilities
|
$ | - | 5,842,000 | $ | - | $ | 5,842,000 |
|
11.
|
Share
Based Compensation
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||
Outstanding
at beginning of year
|
10,000 | $ | 3.83 | |||||
Options
exercised
|
(10,000 | ) | 3.83 | |||||
Options
forfeited or expired
|
- | - | ||||||
Outstanding
at June 30, 2010
|
- | $ | - | |||||
Options
exercisable at June 30, 2010
|
- | $ | - |
Shares
|
Weighed-Average
Grant Date Fair
Value
|
|||||||
Unvested
at January 1, 2010
|
1,204,378 | $ | 5.57 | |||||
Granted
|
5,000 | 21.14 | ||||||
Vested
|
(215,541 | ) | 5.66 | |||||
Forfeited
|
- | - | ||||||
Unvested
at June 30, 2010
|
993,837 | 5.63 |
|
12.
|
Reclassifications
|
|
13.
|
Business
Segments
|
Three Months Ended June 30,
2010
|
||||||||||||||||
Medifast
|
All Other
|
Eliminations
|
Consolidated
|
|||||||||||||
Revenues,
net
|
$ | 60,559,000 | $ | 6,101,000 | $ | 66,660,000 | ||||||||||
Cost
of Sales
|
15,839,000 | 1,355,000 | 17,194,000 | |||||||||||||
Selling,
General and Adminstrative Expenses
|
34,245,000 | 4,546,000 | 38,791,000 | |||||||||||||
Depreciation
and Amortization
|
1,148,000 | 271,000 | 1,419,000 | |||||||||||||
Interest
(net) and Other
|
87,000 | (35,000 | ) | 52,000 | ||||||||||||
Provision
for income taxes
|
3,666,000 | - | 3,666,000 | |||||||||||||
Net
income (loss)
|
$ | 5,574,000 | $ | (36,000 | ) | $ | 5,538,000 | |||||||||
Segment
Assets
|
$ | 58,602,000 | $ | 23,112,000 | $ | 81,714,000 | ||||||||||
Three Months Ended June 30,
2009
|
||||||||||||||||
Medifast
|
All Other
|
Eliminations
|
Consolidated
|
|||||||||||||
Revenues,
net
|
$ | 37,763,000 | $ | 3,958,000 | $ | 41,721,000 | ||||||||||
Cost
of Sales
|
10,095,000 | 813,000 | 10,908,000 | |||||||||||||
Selling,
General and Adminstrative Expenses
|
21,569,000 | 3,148,000 | 24,717,000 | |||||||||||||
Depreciation
and Amortization
|
1,052,000 | 256,000 | 1,308,000 | |||||||||||||
Interest
(net) and Other
|
(4,000 | ) | 33,000 | 29,000 | ||||||||||||
Provision
for income taxes
|
1,760,000 | - | 1,760,000 | |||||||||||||
Net
income (loss)
|
$ | 3,291,000 | $ | (292,000 | ) | $ | 2,999,000 | |||||||||
Segment
Assets
|
$ | 40,905,000 | $ | 14,126,000 | $ | 55,031,000 | ||||||||||
Six Months Ended June 30,
2010
|
||||||||||||||||
Medifast
|
All Other
|
Eliminations
|
Consolidated
|
|||||||||||||
Revenues,
net
|
$ | 115,288,000 | $ | 11,957,000 | $ | 127,245,000 | ||||||||||
Cost
of Sales
|
29,469,000 | 2,542,000 | 32,011,000 | |||||||||||||
Selling,
General and Adminstrative Expenses
|
66,039,000 | 8,921,000 | 74,960,000 | |||||||||||||
Depreciation
and Amortization
|
2,242,000 | 575,000 | 2,817,000 | |||||||||||||
Interest
(net) and Other
|
98,000 | (59,000 | ) | 39,000 | ||||||||||||
Provision
for income taxes
|
6,979,000 | - | 6,979,000 | |||||||||||||
Net
income (loss)
|
$ | 10,461,000 | $ | (22,000 | ) | $ | 10,439,000 | |||||||||
Segment
Assets
|
$ | 58,602,000 | $ | 23,112,000 | $ | 81,714,000 | ||||||||||
Six Months Ended June 30,
2009
|
||||||||||||||||
Medifast
|
All Other
|
Eliminations
|
Consolidated
|
|||||||||||||
Revenues,
net
|
$ | 69,423,000 | $ | 6,903,000 | $ | 76,326,000 | ||||||||||
Cost
of Sales
|
18,390,000 | 1,498,000 | 19,888,000 | |||||||||||||
Selling,
General and Adminstrative Expenses
|
39,313,000 | 5,786,000 | 45,099,000 | |||||||||||||
Depreciation
and Amortization
|
2,042,000 | 494,000 | 2,536,000 | |||||||||||||
Interest
(net) and Other
|
(4,000 | ) | 72,000 | 68,000 | ||||||||||||
Provision
for income taxes
|
3,251,000 | - | 3,251,000 | |||||||||||||
Net
income (loss)
|
$ | 6,431,000 | $ | (947,000 | ) | $ | 5,484,000 | |||||||||
Segment
Assets
|
$ | 40,905,000 | $ | 14,126,000 | $ | 55,031,000 |
|
·
|
Commissions
– The primary way a health coach is compensated is though earning
commissions on product sold. Health coaches earn commissions by
referring product sales through their own replicated website or through
the Company’s in-house call center. The clients of health
coaches are responsible to order and pay for product and their order is
shipped directly from the Company to their home or designated
address. Health coaches are not required to purchase or store
product in order to receive a commission. In addition, health
coaches do not receive a commission on their product orders for their
personal use. The Company pays retail commission on a weekly
basis.
|
|
·
|
Bonuses
– health coaches are offered several bonus opportunities, including growth
bonus, generation bonus, elite leadership bonus, rolling consistency
bonus, client acquisition bonus, and customer assist bonus. The
Company pays bonuses on a monthly
basis.
|
Three Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
$ Change
|
% Change
|
|||||||||||||
Revenue
|
$ | 66,660,000 | $ | 41,721,000 | $ | 24,939,000 | 60 | % | ||||||||
Cost
of sales
|
17,194,000 | 10,908,000 | 6,286,000 | 58 | % | |||||||||||
Gross
Profit
|
49,466,000 | 30,813,000 | $ | 18,653,000 | 61 | % | ||||||||||
Selling,
general, and administration
|
40,210,000 | 26,025,000 | $ | 14,185,000 | 55 | % | ||||||||||
Income
from operations
|
9,256,000 | 4,788,000 | 4,468,000 | 93 | % | |||||||||||
Other
income/(expense)
|
||||||||||||||||
Interest
income (expense), net
|
44,000 | 3,000 | $ | 41,000 | 1367 | % | ||||||||||
Other
income/(expense)
|
(96,000 | ) | (32,000 | ) | $ | (64,000 | ) | 200 | % | |||||||
(52,000 | ) | (29,000 | ) | (23,000 | ) | 79 | % | |||||||||
Income
before provision for income taxes
|
9,204,000 | 4,759,000 | $ | 4,445,000 | 93 | % | ||||||||||
Provision
for income tax (expense)
|
(3,666,000 | ) | (1,760,000 | ) | (1,906,000 | ) | 108 | % | ||||||||
Net
income
|
$ | 5,538,000 | $ | 2,999,000 | $ | 2,539,000 | 85 | % | ||||||||
% of revenue
|
||||||||||||||||
Gross
Profit
|
74.2 | % | 73.9 | % | ||||||||||||
Selling,
general, and administration
|
60.3 | % | 62.4 | % | ||||||||||||
Income
from Operations
|
13.9 | % | 11.5 | % |
Six Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
$ Change
|
% Change
|
|||||||||||||
Revenue
|
$ | 127,245,000 | $ | 76,326,000 | $ | 50,919,000 | 67 | % | ||||||||
Cost
of sales
|
32,011,000 | 19,888,000 | 12,123,000 | 61 | % | |||||||||||
Gross
Profit
|
95,234,000 | 56,438,000 | $ | 38,796,000 | 69 | % | ||||||||||
Selling,
general, and administration
|
77,777,000 | 47,635,000 | $ | 30,142,000 | 63 | % | ||||||||||
Income
from operations
|
17,457,000 | 8,803,000 | 8,654,000 | 98 | % | |||||||||||
Other
income/(expense)
|
||||||||||||||||
Interest
income (expense), net
|
71,000 | (1,000 | ) | $ | 72,000 | -7200 | % | |||||||||
Other
income/(expense)
|
(110,000 | ) | (67,000 | ) | $ | (43,000 | ) | 64 | % | |||||||
(39,000 | ) | (68,000 | ) | 29,000 | -43 | % | ||||||||||
Income
before provision for income taxes
|
17,418,000 | 8,735,000 | $ | 8,683,000 | 99 | % | ||||||||||
Provision
for income tax (expense)
|
(6,979,000 | ) | (3,251,000 | ) | (3,728,000 | ) | 115 | % | ||||||||
Net
income
|
$ | 10,439,000 | $ | 5,484,000 | $ | 4,955,000 | 90 | % | ||||||||
% of revenue
|
||||||||||||||||
Gross
Profit
|
74.8 | % | 73.9 | % | ||||||||||||
Selling,
general, and administration
|
61.1 | % | 62.4 | % | ||||||||||||
Income
from Operations
|
13.7 | % | 11.5 | % |
Net
Sales by Segment for the Three Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Segments
|
Sales
|
% of Total
|
Sales
|
% of Total
|
||||||||||||
Medifast
|
$ | 60,559,000 | 91 | % | $ | 37,776,000 | 91 | % | ||||||||
All
Other
|
6,101,000 | 9 | % | 3,945,000 | 9 | % | ||||||||||
Total
Sales
|
$ | 66,660,000 | 100 | % | $ | 41,721,000 | 100 | % | ||||||||
Net
Sales by Segment for the Six Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Segments
|
Sales
|
% of Total
|
Sales
|
% of Total
|
||||||||||||
Medifast
|
$ | 115,288,000 | 91 | % | $ | 69,422,000 | 91 | % | ||||||||
All
Other
|
11,957,000 | 9 | % | 6,904,000 | 9 | % | ||||||||||
Total
Sales
|
$ | 127,245,000 | 100 | % | $ | 76,326,000 | 100 | % |
Net
Profit by Segment for the Three Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Segments
|
Profit
|
% of Total
|
Profit
|
% of Total
|
||||||||||||
Medifast
|
$ | 5,574,000 | 101 | % | $ | 3,305,000 | 110 | % | ||||||||
All
Other
|
(36,000 | ) | -1 | % | (306,000 | ) | -10 | % | ||||||||
Total
Net Profit
|
$ | 5,538,000 | 100 | % | $ | 2,999,000 | 100 | % | ||||||||
Net
Profit by Segment for the Six Months Ended June 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Segments
|
Profit
|
% of Total
|
Profit
|
% of Total
|
||||||||||||
Medifast
|
$ | 10,462,000 | 100 | % | $ | 6,431,000 | 117 | % | ||||||||
All
Other
|
(23,000 | ) | 0 | % | (947,000 | ) | -17 | % | ||||||||
Total
Net Profit
|
$ | 10,439,000 | 100 | % | $ | 5,484,000 | 100 | % |
Period
|
Total Number of Shares
Purchased
|
Average Price Paid
per Share
|
Total Number of Shares
Purchased as Part of Publicly
Announced Plans or Programs
|
Maximum Number of Shares
that May Yet Be Purchased
Under the Plans or Programs
|
||||||||||||
April
1 - April 30,2010
|
- | - | - | 365,000 | ||||||||||||
May
1 - May 31, 2010
|
- | - | - | 365,000 | ||||||||||||
June
1 - June 31, 2010
|
- | - | - | 365,000 |
BY:
|
/S/
MICHAEL S. MCDEVITT
|
August
9, 2010
|
|
Michael
S. McDevitt
|
|||
Chief
Executive Officer
|
|||
(principal
executive officer and principal financial officer)
|
BY:
|
/S/
BRENDAN N. CONNORS
|
August
9, 2010
|
|
Brendan
N. Connors
|
|||
Chief
Financial Officer
|
|||
(principal
executive officer and principal financial officer)
|
31.1
|
Certification
of Chief Executive Officer pursuant to Item 601(b)(31) of Regulation S-K,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
Certification
of Chief Financial Officer pursuant to Item 601(b)(31) of Regulation S-K,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of
2002
|