Nutrisystem, Inc. (NASDAQ: NTRI), a leading provider of weight management products and services, today reported financial results for the third quarter 2012. The company also announced that the Board of Directors has declared a quarterly dividend of $0.175 per share, payable November 29, 2012, to stockholders of record as of November 19, 2012.
The following are financial highlights for the third quarter ended September 30, 2012:
- Revenues were $81.3 million, compared to $85.6 million in Q3 2011.
- Operating income for the quarter was $1.9 million.
- Net income in the quarter was $2.6 million.
- Net income per diluted share in the quarter was 9 cents.
- Adjusted EBITDA was $8.9 million. Adjusted EBITDA is defined as net income excluding non-cash employee compensation, other expense, interest, income taxes, depreciation and amortization, severance and related charges, and impairment of supplier advance.
- One-time charges, the majority of which were related to the writedown of a supplier advance as well as the previously disclosed management transition, totaled $2.9 million on a pretax basis or $2.0 million after tax. These one-time charges negatively impacted earnings per share by 7 cents in the quarter.
- Cash, cash equivalents, and short term investments were $68.8 million at September 30, 2012.
Mike Hagan, chairman of the Nutrisystem board of directors, said, “As we announced earlier this week, Dawn Zier is joining Nutrisystem as president and chief executive officer and a member of our board of directors, and we are looking forward to her contributions. Clearly the past few years have been challenging for Nutrisystem as a tough economy and intense competition have negatively impacted financial results, and this continued in the third quarter. With a fresh outside perspective from a long-time direct-to-consumer marketing professional, along with a sound strategic plan for the 2013 diet season launch, we are confident that we can turn around the company’s financial performance.”