Nutrisystem, Inc. (NTRI) Up on Strong Fourth Quarter Results

ShareShares of Fort Washington, PA, based Nutrisystem, Inc. (NTRI) rose on Tuesday, against the backdrop of a lower day in stocks overall. Nutrisystem's stock was up 12.77%, rising $2.19 per share, to close at $19.34, on volume of 2,093,168 shares. After the market close on Monday, the company announced the results of its fourth quarter operations, disclosing that both net earnings and revenues showed strong increases for both the quarter and for 2014.

The momentum of Monday evening's announcement carried throughout the trading day on Tuesday.

Founded in 1971, Nutrisystem, provides a weight management system based on a low-calorie, portion-controlled, prepared meal program. The company offers proven weight loss programs designed for women, men, and seniors. It also offers its Nutrisystem D program which is designed to help people with Type 2 diabetes. The company markets pre-packaged foods that are sold to weight loss program participants directly via the Internet and telephone and through independent commissioned representatives.

On Monday - after the market closed - Nutrisystem reported that fourth quarter earnings per share increased to $.18, from $.04 in the fourth quarter of 2013. Revenues increased to $79.2 million in the quarter, a 13% increase over the company's fourth quarter, 2013, total of $69.9 million. Adjusted EBITDA increased by 152%, rising to $11.6 million in the quarter, compared to $4.6 million in the fourth quarter of 2013.

For the full 2014 fiscal year, net income increased 66%, rising to $19.3 million from $11.6 million for all of 2013. Revenue was reported at $403.1 for the year, up 13% over the $358.1 million reported for 2013. EBITDA also increased, rising to $42.7 million in 2014, a 35% increase over the 2013 full year total of $31.6 million.

The company also reported that that its cash, cash equivalents and short term investments increased by $2.9 million during 2014, rising to $29.2 million from $26.3 million at the end of 2013. The company reported that it had no outstanding borrowings under its bank facility.

Nutrisystem issued forward guidance for both the first quarter and the full fiscal 2015 year. First quarter revenue is expected to come in at between $129 million to $134 million, and between $425 million and $445 million for the full year. Adjusted EBITDA is now being forecast to come in at between $4.5 million and $6.7 million for the first quarter, and between $47.8 million and $52.5 million for the full year. GAAP earnings per share are projected between $.02 and $.07 for the first quarter, and between $.73 and $.83 for the full year.

"I am pleased we have delivered six consecutive quarters of year-over-year revenue growth" stated Nutrisystem, President and Chief Executive Officer Dawn Zier, . "Our strong results for fiscal 2014 demonstrate the successful execution of our turnaround plan as well as our ability to be nimble and proactively address evolving customer needs. We're attracting new customers to the brand, successfully launching new products, implementing new pricing strategies, and operating with strategic and financial discipline to drive growth to our top and bottom lines."

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Nutrisystem Introduces 15 New Menu Items
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NuMi by Nutrisystem App Now Available for iPhone as Free App
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Published on Mar 4, 2015
By Kevin Mercadante

Copyrighted 2020. Content published with author's permission.

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