Nutrisystem, Inc. (NTRI) has reported an 193.26 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $7.48 million, or $0.25 a share in the quarter, compared with $2.55 million, or $0.09 a share for the same period last year. Revenue during the quarter surged 31.19 percent to $212.68 million from $162.11 million in the previous year period. Gross margin for the quarter expanded 227 basis points over the previous year period to 53.81 percent. Total expenses were 95.58 percent of quarterly revenues, down from 97.66 percent for the same period last year. This has led to an improvement of 209 basis points in operating margin to 4.42 percent.
Operating income for the quarter was $9.40 million, compared with $3.79 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.50 million compared with $7.98 million in the prior year period. At the same time, adjusted EBITDA margin improved 236 basis points in the quarter to 7.29 percent from 4.92 percent in the last year period.
Dawn Zier, President and Chief Executive Officer, stated, "We are pleased to report another strong Diet Season resulting in our 15th consecutive quarter of year-over-year revenue growth. Nutrisystem’s Lean 13 campaign exceeded our expectations around customer acquisition and reactivation. Additionally, our a la carte and shake sales showed significant growth. The official launch of the South Beach Diet is also resonating with consumers and is meeting our expectations."
For fiscal year 2017, Nutrisystem, Inc. expects revenue to be in the range of $650 million to $665 million. Nutri System forecasts net income to be in the range of $49.91 million to $52.91 million. The company projects diluted earnings per share to be in the range of $1.65 to $1.75.
For the second-quarter, Nutrisystem, Inc. expects revenue to be in the range of $178 million to $183 million. Nutri System forecasts net income to be in the range of $17.65 million to $18.94 million. The company projects diluted earnings per share to be in the range of $0.58 to $0.63.
Operating cash flow improves significantly Nutrisystem, Inc. has generated cash of $41.02 million from operating activities during the quarter, up 104.88 percent or $21 million, when compared with the last year period.
The company has spent $6.99 million cash to meet investing activities during the quarter as against cash outgo of $4.89 million in the last year period.
The company has spent $5.63 million cash to carry out financing activities during the quarter as against cash outgo of $6.77 million in the last year period.
Cash and cash equivalents stood at $38.02 million as on Mar. 31, 2017, up 161.32 percent or $23.47 million from $14.55 million on Mar. 31, 2016.
Working capital increases sharply
Nutrisystem, Inc. has recorded an increase in the working capital over the last year. It stood at $46.80 million as at Mar. 31, 2017, up 190.26 percent or $30.68 million from $16.12 million on Mar. 31, 2016. Current ratio was at 1.54 as on Mar. 31, 2017, up from 1.22 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 19 days for the quarter from 6 days for the last year period. Days sales outstanding went down to 9 days for the quarter compared with 12 days for the same period last year.
Days inventory outstanding has decreased to 14 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went down to 43 days for the quarter from 51 for the same period last year.
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