Owings Mills, Maryland-based Medifast Inc., a provider of healthy living products and programs, has announced financial results for the third quarter ended September 30, 2017. Revenue increased 12.6 percent to $77.2 million from revenue of $68.6 million for the third quarter last year.
“Our third quarter results reflect some early successes of our strategic growth initiatives, and we are pleased to report revenue and earnings above our expectations,” said Daniel R. Chard, Medifast’s CEO. “We have created a powerful, transformational message that has helped us achieve our highest number of quarterly active OPTAVIA Coaches in our history along with the highest quarterly revenue for our OPTAVIA business unit in our company’s history. We believe we are well positioned for future growth and value creation for our shareholders as a result of our positive business momentum combined with our scalable infrastructure and strong balance sheet.”
Net income for the third quarter of 2017 was $6.7 million, or 55 cents per diluted share, based on approximately 12.1 million shares outstanding. Third quarter 2016 net income was $6.1 million, or 51 cents per diluted share based on approximately 11.9 million shares outstanding.
OPTAVIA revenue increased 17.5 percent to $66.4 million in the third quarter of 2017, compared to $56.5 million for the third quarter last year. This is the eighth consecutive quarter of growth. The total number of active earning OPTAVIA Coaches for the third quarter of 2017 increased to 14,200, compared to 12,800 for the third quarter of 2016. The average revenue per active earning OPTAVIA Coach for the third quarter of 2017 increased 6.2 percent to $4,693 compared to $4,421 for the third quarter last year.
Medifast Direct revenue decreased 3.7 percent to $7.8 million in the third quarter of 2017, compared to $8.1 million for the third quarter of 2016.
Revenue in the Franchise Medifast Weight Control Centers decreased to $2.8 million from $3.7 million for the third 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 35 franchise centers and 2 reseller locations in operation compared to 55 franchise centers and 1 reseller location at the end of the same period last year.
To read the full Medifast Q3 financial report, click here.