Nutrisystem, Inc. (NASDAQ: NTRI), a leading provider of weight management products and services, today reported financial results for the second quarter 2012. The company also announced that the Board of Directors has declared a quarterly dividend of $0.175 per share, payable August 16, 2012, to stockholders of record as of August 6, 2012.
The following are financial highlights for the second quarter ended June 30, 2012:
- Revenues were $124.6 million, up 7.3 percent compared to $116.1 million in Q2 2011.
- Operating income for the quarter was $6.9 million.
- Net income in the quarter was $4.1 million.
- Net income in the quarter per diluted share was 14 cents.
- Adjusted EBITDA excluding one-time charges was $17.7 million. Adjusted EBITDA is defined as net income (loss) excluding non-cash employee compensation, other expense, interest, income taxes, depreciation and amortization, and severance and related charges.
- One-time charges related to the upcoming management transition as well as related charges totaled $6.6 million on a pretax basis or $4.9 million after tax, and negatively impacted earnings per share by 17 cents in the quarter.
- Cash, cash equivalents, and short term investments were $70.5 million at June 30, 2012.
Joe Redling, President and Chief Executive Officer, said, “Revenue growth was solid in the second quarter as the early Easter enabled us to quickly kick off the summer shape-up season, the Janet Jackson weight loss reveal generated significant customer excitement, and the countdown of our 40 th Anniversary Promotion produced good results. Our objectives for the remainder of 2012 are to continue to leverage our new tiered pricing structure to improve gross margins; to execute on the retail rollout which began this quarter; and to build momentum for our diabetes product offering in conjunction with our recently being announced as a National Strategic Partner of the American Diabetes Association.”
David Clark, Chief Financial Officer, added, “We continue to forecast mid-single-digit revenue growth for the year, as well as earnings per share in the range of 45 to 55 cents before one-time charges. For the third quarter, we expect earnings per share in the range of 13 to 18 cents per share before one-time charges. These charges of $6.6 million in the second quarter were lower than our original forecast of $7.2 million due to timing differences; we expect approximately $600,000 of these charges in the third quarter.”