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NutriSystem Inc (NTRI) filed Quarterly Report for the period ended 2011-09-30.
Nutrisystem Inc has a market cap of $312.6 million; its shares were traded at around $11.2 with a P/E ratio of 13.5 and P/S ratio of 0.7. The dividend yield of Nutrisystem Inc stocks is 6.2%. Nutrisystem Inc had an annual average earning growth of 72.4% over the past 10 years.
This is the annual revenues and earnings per share of NTRI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NTRI.
Highlight of Business Operations:
In the nine months ended September 30, 2011 and 2010, the direct channel represented 96% of our revenue. Revenues through the direct channel were $83.0 million and $320.7 million in the three and nine months ended September 30, 2011, respectively, compared to $117.4 million and $404.4 million, respectively, in the comparable periods of 2010. Revenue is primarily generated through customer starts, reactivation of former customers and the customer ordering behavior, including length of time on our program and the diet program selection. The decrease in 2011 is primarily attributable to a decline in new customers, on-program revenue and reactivation revenue. Critical to increasing customer starts is our ability to deploy marketing dollars while maintaining marketing effectiveness. Factors influencing our marketing effectiveness include the quality of the advertisements, promotional activity by our competitors, as well as the price and availability of appropriate media.Revenue. Revenue decreased to $85.6 million in the third quarter of 2011 from $121.2 million for the third quarter of 2010. The revenue decline occurred across all of our sales channels due to discounted promotional offerings which led to lower average selling prices, decreased reactivation revenue and fewer customer starts and on-program customers. In the third quarter of 2011 and 2010, the direct channel accounted for 97% of total revenue compared to 3% for QVC.
Revenue. Revenue decreased to $334.4 million in the nine months ended September 30, 2011 from $421.7 million in the comparable period of 2010. The revenue decline occurred across all of our sales channels due to bargain-focused consumer behavior and the discounted promotional offerings which have led to lower average selling prices and fewer customer starts and on-program customers. In the nine months ended September 30, 2011 and 2010, the direct channel accounted for 96% of total revenue compared to 4% for QVC.
Costs and Expenses. Cost of revenue decreased to $162.7 million in the nine months ended September 30, 2011 from $186.6 million in the comparable period of 2010. Gross margin as a percent of revenue decreased to 51.3% in the nine months ended September 30, 2011 from 55.7% for the comparable period of 2010. The decrease in gross margin was primarily attributable to our promotional pricing and the introduction of our frozen foods, which have higher costs, into most of our weight loss programs during the first quarter of 2011.
Marketing expense decreased to $92.8 million in the nine months ended September 30, 2011 from $127.2 million in the comparable period of 2010. Marketing expense as a percent of revenue decreased to 27.8% in the nine months ended September 30, 2011 from 30.2% for the comparable period of 2010. During the beginning of the first quarter of 2011, we experienced significant pressures on response and conversion rates across all sales channels causing a decrease in new customers and directly impacting our marketing efficiency. As a result, we reduced the spending for advertising media but increased our promotional incentives to increase demand and leverage marketing efficiency. Substantially all marketing spending during the nine months ended September 30, 2011 promoted the direct business. The decrease in marketing is primarily attributable to decreased spending for advertising media ($34.0 million) and public relations and consulting ($1.7 million). These decreases were partially offset by increased television production
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