Nutri System, Inc. (NTRI) has reported an 132.53 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $8.85 million, or $0.29 a share in the quarter, compared with $3.81 million, or $0.13 a share for the same period last year.
Revenue during the quarter grew 20.72 percent to $108.95 million from $90.25 million in the previous year period. Gross margin for the quarter expanded 183 basis points over the previous year period to 52.64 percent. Total expenses were 87.81 percent of quarterly revenues, down from 93.34 percent for the same period last year. This has led to an improvement of 553 basis points in operating margin to 12.19 percent.
Operating income for the quarter was $13.28 million, compared with $6.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.69 million compared with $12.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 373 basis points in the quarter to 17.16 percent from 13.43 percent in the last year period.
Dawn Zier, president and chief executive officer, stated, "In 2016, we exceeded top and bottom-line expectations as Nutrisystem continued to expand solutions for those looking to lose weight. We implemented a number of strategic actions designed to strengthen the business and propel future growth such as investments in our multi-brand strategy, new product innovation, new marketing campaigns and an enhanced customer experience."
For fiscal year 2017, Nutri System, Inc. forecasts revenue to be in the range of $630 million to $650 million. It projects net income to be in the range of $46.80 million to $49.70 million. It expects diluted earnings per share to be in the range of $1.55 to $1.65 for the same period.
For the first-quarter, Nutri System, Inc. forecasts revenue to be in the range of $202 million to $207 million. It projects net income to be in the range of $4.30 million to $5.70 million. It expects diluted earnings per share to be in the range of $0.14 to $0.19 for the same period.
Operating cash flow improves significantly
Nutri System, Inc. has generated cash of $50.60 million from operating activities during the year, up 62.32 percent or $19.43 million, when compared with the last year.
The company has spent $29.35 million cash to meet investing activities during the year as against cash outgo of $20.77 million in the last year.
The company has spent $17.82 million cash to carry out financing activities during the year as against cash outgo of $16.83 million in the last year period.
Cash and cash equivalents stood at $9.62 million as on Dec. 31, 2016, up 55.44 percent or $3.43 million from $6.19 million on Dec. 31, 2015.
Working capital increases sharply
Nutri System, Inc. has recorded an increase in the working capital over the last year. It stood at $43.45 million as at Dec. 31, 2016, up 126.27 percent or $24.25 million from $19.20 million on Dec. 31, 2015. Current ratio was at 1.75 as on Dec. 31, 2016, up from 1.33 on Dec. 31, 2015.
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