Medifast announced its fourth quarter and full-year results for 2020, citing a fourth quarter revenue increase of 55.3% over the same period from the previous year, and resulting in $264.9 million. Total revenue for 2020 represented a 31% increase, year-over-year, and $934.8 million.
The number of active earning OPTAVIA Coaches during the fourth quarter rose to 44,200, a record number representing a 39% increase. The revenue active OPTAVIA Coaches earned also increased, climbing 13.4% to $5,932 in the fourth quarter.
“This has been another very strong year for Medifast, with our independent OPTAVIA Coaches attracting and retaining a record number of new clients,” said Dan Chard, Chairman and Chief Executive Officer of Medifast. “Despite the continued macroeconomic challenges from the COVID-19 pandemic, we have seen significant revenue and earnings growth along with a new record level of active earning coaches. That powerful momentum maintained in the fourth quarter, as people continue prioritizing health and wellness in their lives. The strength of the OPTAVIA® brand and our differentiated business model resonates deeply with coaches and clients, and provides a realistic and effective offer for those looking to adopt a healthier lifestyle. As a company, Medifast continues to build its infrastructure to take advantage of the growth opportunities ahead while maintaining a strong balance sheet. We are well positioned for the next phase of our development, and are confident in our ability to deliver meaningful stockholder value for the long-term.”
With a net income of $102.9 million for the year and $28 million for the fourth quarter, the company’s growth over the previous year was 32% and 40.8% respectively. The company also ended 2020 with no interest-bearing debt and with $174.5 million in cash, cash equivalents and investment securities.
Earnings per diluted share increased 35% year-over-year to $8.68, and increased 42% in Q4, to $2.36. The company’s selling, general and administrative expenses (SG&A) also increased to $161.3 million in the fourth quarter of 2020, as compared to $109.4 million in Q4 of 2019, which is primarily attributed to higher OPTAVIA commission expenses connected to a growth in OPTAVIA sales, salaries and benefits.