Slide 1: Investor Presentation May 2016
Investor Presentation May 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: Medifast Today
Medifast Today Weight Management & Healthy Living Products Company Founded in 1980 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 Di
Slide 4: 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 4 1 DELIVERED ON ST
Slide 5: 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 6: Served Market
Served Market Market Size 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 Sources: U.
Slide 7: 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% 7 Sources: CDC Behavioral Risk Factor Surveillance System (
Slide 8: Proven Products and Programs
8 Proven Products and Programs Over 20,000 Over Customers 1,000,000 Doctors have recommended Medifast products & programs Since 1980
Slide 9: Four Business Models to Reach Clients
9 Four Business Models to Reach Clients 58 Franchise Locations Medical Provider & Wholesale Direct Response and E - commerce 78% 15% 6% 1% TSFL Med Direct Franchise MWCC Medifast Wholesale Revenue by Business Unit 12,600 Independent Health Coaches Note: 1Q16
Slide 10: Strategic Business Evolution
10 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 11: Unique Direct Selling Model
Unique Direct Selling Model 12,600 i ndependent h ealth coaches 78% 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 12: Re-energized Coach Network
12 Re - energized Coach Network 360 Regional events in 43 states with 8,000 attendees January 9, 2016! Annual Go Global event sold out in February ! Sundance Leadership Development Conference
Slide 13: 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% 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 13 Executed on 2015 Initiatives – Focus on New Coach Sponsorship
Slide 14: Medifast Direct
14 Medifast Direct Direct Response Business Model 15% of Revenue E - commerce Platform Self - Directed Program Driven by Advertising/Promotion Transitioning to N ew Achieve P rogram Continuity Options for the Customer and Incentives to S tay on P lan
Slide 15: Medifast Weight Control Center Franchises
15 Medifast Weight Control Center Franchises Local C enters for 1 - to - 1 Counseling Supervised Medifast Programs Onsite Product Purchasing 58 Franchise Centers in the U.S. 6% of Total Revenue
Slide 16: 2016 Strategy
2016 Strategy 16 Continue 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 th
Slide 17: Financial Overview
Medifast Confidential 17 FINANCIAL OVERVIEW
Slide 18: First Quarter 2016 Financial Highlights
Started 2016 with positive momentum • R evenue of $72.3 million above expectations of $68 million to $71 million • Adjusted earnings per diluted share were $ 0.42 above expectations of $0.30 to $0.33 • Raised 2016 annual guidance: Revenues of $275 million to $282 million and adjusted earnings per di
Slide 19: 2011-2015 Revenue
19 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 20: 2011-2015 EPS
$1.60 $1.75 $1.96 $1.89 $1.73 $1.75 to $1.80 20 2011 - 2015 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 . - 2014 Non -
Slide 21: Strong Cash & Balance Sheet
21 Strong Cash & Balance Sheet $ 71.6M 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 22: 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