Slide 1: Investor Presentation October 2016
Investor Presentation October 2016 Exhibit 99.1
Slide 2: Safe Harbor Statement
Certain information included in this presentation may constitute forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, Section 21 E of the Securities Exchange Act of 1934 , as amended, and the Private Securities Litigation Reform Act of 1995 . Th
Slide 3: Executive Team Presenters
Michael MacDonald, Executive Chairman Timothy Robinson, Chief Financial Officer 3 Executive Team Presenters
Slide 4: Agenda
» Company Highlights » Focus On Execution… Medifast’s Business Evolution » Weight Loss & Weight Maintenance Options for Success » Financial Highlights » Well Positioned for Future Growth 4 Agenda
Slide 5: Company Highlights
Medifast Confidential 5 COMPANY HIGHLIGHTS
Slide 6: Seasoned Executive Joins Medifast
Daniel (“Dan”) R. Chard • Appointed Chief Executive Officer and a member of the Board of Directors effective October 3, 2016 • Brings over 25 years of direct selling and consumer products experience • Spent 17 years at Nu Skin and held various leadership roles including President, Global Sales & Ope
Slide 7: Medifast Today
Medifast Today Weight Management & Healthy Living Products Company Four Business Units to Reach Customers Vertically Integrated Manufacturing In - house Innovation and Food Science Industry - Leading Margins Strong Balance Sheet Share Repurchase Program Quarterly Dividend of $0.25 pe
Slide 8: Well Positioned for Future Growth
Well Positioned for Future Growth Large , addressable and growing market Differentiated scientific approach to weight loss Highly efficacious product portfolio validated by customer referrals Diversified sales channels meeting distinct customer needs Low cost vertically integrated business model wit
Slide 9: Served Market and Market Opportunity
Served Market Market Opportunity Total Market 1.5% Medifast share of served market $ 18 Bn Served Market ‣ Diet Foods/Meals ‣ Weight Loss Centers ‣ Low Calories Programs ‣ Medical Plans & Surgery ‣ Books & Videos Unserved Market: ‣ Diet Soft Drinks ‣ Artificial Sweeteners ‣ Health Club Revenues Sour
Slide 10: America Striving to Be Healthy
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 America Striving to Be Healthy 2014 OBESITY as BMI% 1985 Diagnosed Diabetes Rate 2.9% 6.2% 10 Sources: CDC Behavioral Risk Factor Surveillance System
Slide 11: Proven Products and Programs
11 Proven Products and Programs Over 20,000 Over Customers 1,000,000 Doctors have recommended Medifast products & programs Since 1980
Slide 12: Four Complementary Strategies to Reach Clients
12 Four Complementary Strategies to Reach Clients 57 Franchise Locations Medical Provider & Wholesale Direct Response and E - commerce 80% 14% 6% 1% TSFL Med Direct Franchise MWCC Medifast Wholesale Revenue by Business Unit 12,800 Independent Health Coaches Note: For the six months ended June 30, 20
Slide 13: Focus on Execution… Medifast's Business Evolution
Medifast Confidential 13 FOCUS ON EXECUTION… MEDIFAST’S BUSINESS EVOLUTION
Slide 14: Areas of Execution in 2015
Areas of Execution in 2015 2 MAINTAINED PROFIT FOCUS Completed Weight Control Center transition Exercised cost discipline and manufacturing efficiencies 3 CREATED VALUE Maintained strong balance sheet and cash flows Repurchased stock Initiated quarterly dividend in 4Q15 14 1 DELIVERED ON S
Slide 15: Strategic Business Evolution
15 Strategic Business Evolution 2011 2012 2014 2015 Beyond 2013 2016 Focus on MWCC Growth – Corporate: + 48 Centers – Franchise: + 14 Centers “One Medifast” Strategy – Internally created shared service model and technology platform to support all channels – Standardized products, offers, pricing
Slide 16: Weight Loss & Weight Maintenance Options for Success
Medifast Confidential 16 WEIGHT LOSS & WEIGHT MAINTAINENCE OPTIONS FOR SUCCESS
Slide 17: Unique Direct Selling Model
Unique Direct Selling Model 12,800 i ndependent h ealth coaches 80% of total revenue Healthy lifestyle f ocus Supporting regional and n ational events 92% of orders go directly to clients, and 8% for coach’s own use Coaches do not hold inventory All commissions based on product sales
Slide 18: Introducing OPTA VIA
18 Introducing OPTA VIA™ Launch – Convention July 2016 Brand Transition – July 2016 – July 2017 Fully exclusive lifestyle brand and product offering that is only available to our Take Shape For Life family of Health C oaches and clients Complete transition by July of 2017 Well positioned f
Slide 19: OPTA VIA Fuelings
19 OPTA VIA™ Fuelings 13 new innovative OPTA VIA™ Fuelings Each product contains : No colors, flavors, sweeteners, or preservatives from artificial sources No genetically engineered ingredients A minimum of 250 million CFU of GanedenBC30® probiotic cultures per Fueling to help support your d
Slide 20: Re-energized Coach Network
20 Re - energized Coach Network Convention 2016 largest event in the company's history - with more than 3,400 registered attendees, >20% growth y/y
Slide 21: Take Shape For Life – Strengthening Network For Growth
Take Shape For Life – Strengthening Network For Growth 12% 13% 20% 20% 12% 10% 1% (0%) (4%) (12%) (11%) (12%) (9%) (3%) (0%) 5% 9% 10% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 21 Executed on 2015 Initiatives – Focus on New Coach Sp
Slide 22: Medifast Direct
22 Medifast Direct Direct Response Business Model 14% of Revenue E - commerce Platform Self - Directed Program Driven by Advertising/Promotion Launched New Achieve P rogram Continuity Options for the Customer and Incentives to S tay on P lan
Slide 23: Medifast Weight Control Center Franchises
23 Medifast Weight Control Center Franchises Local C enters for 1 - to - 1 Counseling Supervised Medifast Programs Onsite Product Purchasing 57 Franchise Centers in the U.S. 6% of Total Revenue As of 6/30/2016
Slide 24: 2016 Strategy
2016 Strategy 24 C ontinue to build direct response capabilities through new ecommerce technology platform and smart merchandising New efforts to stabilize customer acquisition trends Launch new advertising campaign: “Your Year” Build on 2015 Momentum Continue to enhance Coach experience t
Slide 25: Financial Overview
Medifast Confidential 25 FINANCIAL OVERVIEW
Slide 26: Positive Momentum Year-to-Date
P ositive Momentum Year - to - Date On 10/3/16 Announced We Expect to Meet or Exceed Third Quarter Guidance Continue to Expect a Return to Growth in 2016 2Q16 Financial Highlights x R evenue of $71.1 million in - line with expectations of $70 million to $73 million x Earnings per diluted share were
Slide 27: 2011-2015 Revenue
27 2011 - 2015 Revenue - Revenue from continuing operations . 2011 2012 2013 2014 2015 FY16 Guidance $ in millions $273 $319 $324 $285 $273 $275 to $282 $0 $50 $100 $150 $200 $250 $300 $350
Slide 28: 2011-2015 EPS
$1.60 $1.34 $1.96 $1.65 $1.62 $1.38 to $1.43 28 2011 - 2015 EPS - EPS from continuing operations . 2011 2012 2013 2014 2015 FY16 Guidance
Slide 29: 2011-2015 Adjusted EPS
$1.60 $1.75 $1.96 $1.89 $1.73 $1.79 to $1.84 29 2011 - 2015 Adjusted EPS - EPS from continuing operations . - 2012 Non - GAAP EPS excludes two non - recurring items, including a FTC settlement recorded in the second quarter and a sales tax accrual in the fourth quarter . Reported EPS $ 1 . 34 . - 20
Slide 30: Strong Cash & Balance Sheet
30 Strong Cash & Balance Sheet $ 79.6M Cash & Investments No Long - Term Debt Low Working Capital Levels Minimal CAPEX Requirements Strong Free Cash Flows Existing Stock Repurchase Program Quarterly Cash Dividend of $0.25 per share Note: Cash and Investments as well as debt position as
Slide 31: Well Positioned for Future Growth
Well Positioned for Future Growth Large , addressable and growing market Differentiated scientific approach to weight loss Highly efficacious product portfolio validated by customer referrals Diversified sales channels meeting distinct customer needs Low cost vertically integrated business model wit
Slide 32: Key Management Additions
32 Key Management Additions Bill Baker joined Medifast in August as EVP Information Technology . Bill has a strong background in Direct Selling with Rodan & Fields and Arbonne International. Bill is driving our implementation of our new IT platform for Take Shape for Life, scheduled to go live in th
Slide 33: Thank You
YMedifast. Thank You INTEGRITY EFFICACYRESPONSIBILITYVISION Pe