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NutriSystem Inc Reports Operating Results (10-K)

March 07, 2011 | About:
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10qk

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NutriSystem Inc (NTRI) filed Annual Report for the period ended 2010-12-31.

Nutrisystem Inc has a market cap of $369.04 million; its shares were traded at around $13.81 with a P/E ratio of 12.22 and P/S ratio of 0.72. The dividend yield of Nutrisystem Inc stocks is 5.07%. Nutrisystem Inc had an annual average earning growth of 89.2% over the past 10 years.

Highlight of Business Operations: Nutrisystem is currently operating primarily in the U.S. and Canada. Gallup surveys indicate that approximately 42% of the people in the U.S., or an estimated 96 million were dieting during 2008. Of those people, approximately 56 million were attempting to lose weight and 40 million were attempting to maintain their weight. Approximately 8% participated in commercial weight loss programs and 56% conducted some form of self-directed diet. We believe the Nutrisystem program is well positioned to attract both types of dieters.
Our food items have accounted for 99% of our revenues for each of the years ended December 31, 2010, 2009 and 2008, respectively. No other product or service has accounted for more than 1% of consolidated revenue in any of the last three years. In January 2008, we expanded operations into Canada and in October 2009, we announced our Nutrisystem J Diet in Japan. Approximately 98% of our revenues for each of the years ended December 31, 2010, 2009 and 2008 were generated in the United States.
We continue to partner with our fulfillment provider to reduce the warehouse order turn-around time for processing and shipping orders. In 2010, approximately 99% of all direct customer initial orders were shipped within two business days of the date the order was received. In addition, we can ship to approximately 99% of the domestic population within five business days using standard ground transportation. In 2010, we made capital investments in new material handling equipment and a new warehouse management system to target improvements in productivity, cost, quality and service.
In 2010, approximately 18%, 17% and 10%, respectively, of inventory purchases were from three suppliers. We have supply arrangements with certain of these vendors that require us to make certain minimum purchases. In 2009, these vendors supplied 18%, 19% and 8%, respectively, of total purchases and in 2008 these vendors supplied 15%, 19% and 5%, respectively, of total purchases.
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