Owings Mills-based Medifast, Inc. (NYSE: MED), reported another increase in net income for their second quarter.
As of June 30, 2011, the Baltimore County weight loss program company delivered $5.94 Million ($0.41 cents per diluted share) in profit, off of a 17% increase in revenue. That's compared to $5.54 Million ($0.38 cents per diluted share) in net income the same time last year.
Medifast's three main distribution channels, Take Shape for Life, Direct Response Marketing, and Medifast Weight Control Centers, contributed to total revenue of $78.25 Million for the quarter. Medifast Wholesale Physicians division also led to the near $12 Million jump in revenue.
Michael S. McDevitt, Medifast's Chief Executive Officer stated "We are pleased with our ability to generate increased sales and earnings growth in the quarter as we continued to make the necessary infrastructure investments to further our scalability across the Medifast Weight Control Centers, in our web platforms for Take Shape for Life and Medifast Direct, as well as adding the necessary resources in both personnel and operations to support Medifast's future long-term expansion," McDevitt continued "Our vertically integrated operations will allow us to continually improve the customer experience across our sales channels and enable us to leverage our operating costs for increased margin expansion and long-term profitable growth."
McDevitt also noted "Going forward, with a 19% increase in health coach attendance at our Annual Take Shape for Life Convention, the successful launch of our official health coach training site and the opportunity to accelerate our Medifast Weight Control Center unit growth to 30 to 35 new centers this year, we believe Medifast has solid momentum for a strong end to fiscal 2011. We are confident that each of our sales channels is better positioned than ever before with the right team, systems, tools and training in place to improve our ability to attract new clients and help ensure their success and in turn further accelerate long-term growth."
The company also increased its cash and cash equivalents more than $10 Million to $28.3 Million as of June 30, 2011.
Medifast said it plans to open 17 to 19 new Weight Control Centers in the third quarter, that increased guidance from 25 to 30 centers to between 30 to 35 centers by the end of the year.