This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nutrisystem's CEO Discusses Q1 2012 Results - Earnings Call Transcript

In the meantime, I've taken a very active role on the company as Chairman. Together with my fellow Board members and the management team, we are committed to getting Nutrisystem business back on the growth trajectory and adding shareholder value. Nutrisystem has a strong balance sheet and the Board of Directors continues to remain focused on returning value to shareholders in the form of quarterly dividend.

With that, I'll turn the call over to Joe Redling.

Joe Redling

Thanks Mike. It's great to have you back. Good afternoon and thank you joining us on today's conference call. First quarter results were below our original forecast, but we believe that this is mainly a timing issue. And as David will discuss in a moment, we are reaffirming our full year guidance for both revenues and earnings.

During the year we are going to make investments, we believe will be accretive for the full year earnings, even if that result in a short-term hit for the quarter. New customer starts are the key driver of revenue growth and when our metrics indicate, we have the ability to lean into our immediate spend for extended programs that are producing results, we're going to do that for the benefit of the overall year.

Two examples that this happened in Q1. In Q1 we converted our Costco program from program cards to gift cards. This was a new element of our offering through the Costco channel this year. We tested and prepared sales velocity and profitability of shaping from a prepaid full program card purchase to a simple $100 gift card program. And the gift card program is the clear winner on all measures.

This change shifted about $2 million of revenue from March into Q2, related to cards purchased, but not redeemed. This is a direct result of different redemption patterns of gift cards compared to program cards.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.31%
FB $102.01 0.10%
GOOG $682.40 -0.10%
TSLA $151.04 0.38%
YHOO $27.04 1.05%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs