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Medifast, Inc., a Owings Mills, Maryland-based manufacturer and distributor of clinically proven, healthy living products and programs, yesterday reported financial results for the fourth quarter and full year ended December 31, 2017.
“Our financial results exceeded our expectations and we are pleased to report a strong finish to the year with revenue through our OPTAVIA Coaches model generating record growth,” said Dan Chard, Medifast’s CEO. “Looking ahead, our OPTAVIA coach community is now stronger than ever and very well-positioned to build upon the current business momentum as they share our mission of offering the world lifelong transformation, one healthy habit at a time.”
For the fourth quarter of 2017, Medifast revenue increased 24.8 percent to $78.0 million from revenue of $62.5 million for the fourth quarter last year.
OPTAVIA revenue increased 32.4 percent to $68.6 million in the fourth quarter of 2017, compared to $51.8 million for the fourth quarter last year. This is the ninth consecutive quarter of growth. The total number of active earning OPTAVIA Coaches for the fourth quarter of 2017 increased to 15,000, compared to 12,500 for the fourth quarter of 2016. The average revenue per active earning OPTAVIA Coach for the fourth quarter of 2017 increased 9.7 percent to $4,562 compared to $4,158 for the fourth quarter last year.
Medifast Direct revenue decreased 2.9 percent to $6.6 million in the fourth quarter of 2017, compared to $6.8 million for the fourth quarter of 2016. Fourth quarter advertising spend decreased $0.1 million from $1.6 million for the fourth quarter last year.
Revenue in the Franchise Medifast Weight Control Centers decreased to $2.6 million from $3.6 million for the fourth quarter of last year. The decrease in revenue was primarily driven by fewer franchise centers in operation during the period combined with a decline in activity within the centers and a decrease in resellers. The company ended the quarter with 16 franchise centers and 18 reseller locations in operation compared to 37 franchise centers and 19 reseller locations at the end of the same period last year.
In the fourth quarter, the Wholesale business unit revenue was consistent with the prior year period at $0.2 million. This business model was integrated into the OPTAVIA coach model at year end.
For the fiscal year ended December 31, 2017, Medifast revenue was $301.6 million as compared to revenue of $274.5 million in 2016. As a percentage of revenue, OPTAVIA represented approximately 85.1 percent, Medifast Direct represented 10.6 percent, Franchise Medifast Weight Control Centers represented 4.0 percent, and Medifast Wholesale represented 0.3 percent.
The company expects first quarter revenue to be in the range of $88.5 million to $91.5 million and earnings per diluted share to be in the range of $0.84 to $0.87. For the full year 2018, the company expects revenue of $350 million to $360 million and earnings per diluted share of $3.15 to $3.25.
To read the full Medifast fourth quarter report, click here.