Earnings Labs

Medifast, Inc. (MED)

Q4 2014 Earnings Call· Thu, Mar 12, 2015

$10.79

+0.28%

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Transcript

Operator

Operator

Good afternoon and welcome to Medifast Fourth Quarter and Full Year 2014 Earnings Conference Call. On the call with me today are Michael MacDonald, Chairman and Chief Executive Officer; Meg Sheetz, President and Chief Operating Officer; and Tim Robinson, Chief Financial Officer. By now, everyone should have access to the earnings release for the period ending December 31, 2014, that went out this afternoon at approximately 4:05 p.m. Eastern Time. If you've not received the release, it's available on the Investor Relations portion of Medifast's website at www.medifastnow.com. This call is being webcast, and a replay will be available on the company's website. Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. The words believe, expect, anticipate and other similar expressions generally identify forward-looking statements. These statements do not guarantee future performance and therefore, undue reliance should not be placed on them. Actual results could differ materially from those projected in any forward-looking statements. Medifast assumes no obligation to update any forward-looking projections that may be made in today's release or on today's call. All the forward-looking statements contained herein speak only as of the date of today's call. And with that, I'd like to turn the call over to Medifast's Chairman and CEO, Michael MacDonald. Michael C. MacDonald - Executive Chairman & Chief Executive Officer: Thank you, Katie. Good afternoon, everyone, and thank you for joining us. I will begin today's call with a brief retrospective, look at our business over the last several years then review our 2014 accomplishments, followed by a discussion of our key strategic initiatives for 2015. Tim will then discuss our financial results for the fourth quarter and full year in more detail before we open…

Operator

Operator

Thank you. Our first question comes from Frank Camma at Sidoti. Frank A. Camma - Sidoti & Co. LLC: Good afternoon, guys. Michael C. MacDonald - Executive Chairman & Chief Executive Officer: Good afternoon, Frank. Margaret E. MacDonald-Sheetz - President, Chief Operating Officer & Director: How are you? Timothy G. Robinson - Chief Financial Officer & Head-Investor Relations: Hi, Frank. Frank A. Camma - Sidoti & Co. LLC: Good, good. Hey, a couple of questions mostly on the Take Shape For Life. You spoke about the number of things you're doing there for improvement, obviously, changing out or improving management and some of the other items. But the environment for direct selling in the U.S. has been pretty challenged especially last year. I just wonder, if you could talk about maybe what specifically has impacted two things for you, in particular, one being the head count or the health coach count and two, the actual productivity? Margaret E. MacDonald-Sheetz - President, Chief Operating Officer & Director: Sure. This is Meg. Frank A. Camma - Sidoti & Co. LLC: Okay. Hi, Meg. Margaret E. MacDonald-Sheetz - President, Chief Operating Officer & Director: Last year, I think the biggest impact to us was that our coaches, although with great effort, did not adapt the behaviors that aligned with where we want them to go for the integrated compensation structure, the new compensation plan. I would say the compensation plan is a very effective comp plan. We could do a better job at helping them train and really find the, we're calling a duplication model pathway, to really making sure that every single person can explain the comp plan in an effective way, defining it as activities per health coach that are what activities do I have to do, how much per hour…

Operator

Operator

Seeing no further questions. I'd like to turn the conference back over to management for closing remarks. Michael C. MacDonald - Executive Chairman & Chief Executive Officer: Thanks for your participation in today's call. We look forward to providing you with an update on our business when we report results for the first quarter. Have a great evening.

Operator

Operator

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.