Posts Tagged ‘Nutrisystem’
Even if we succeed in acquiring or building such businesses, we will face a number of risks and uncertainties, including: Gain loss on disposal of fixed assets. None, as all information required in these schedules is included in the Notes to the Consolidated Financial Statements. Provisions of our certificate of incorporation as amended may have the effect of deterring unsolicited takeovers or delaying or preventing a third party from acquiring control of us, even if our stockholders might otherwise receive a premium for their shares over then current market prices. All the meals and snacks of this plan include good carbohydrates and protein. This delightful cookbook offers a variety of simple to complex recipes such as homemade cannoli, banana beignets and homemade tater tots. Costs incurred related to planning or maintenance of internal-use software and website development are charged to expense as incurred.
Revenue is primarily generated through customer starts and the customer ordering behavior, including length of time on our program and the diet program selection. 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.
Total costs and expenses. Income from continuing operations before income taxes. Income from continuing operations. The revenue decrease resulted primarily from a decrease in customer starts due to the weakening economy. Gross margin as a percent of revenue decreased to The decrease in gross margin was primarily attributable to increased food and freight costs.
We are continuing to experience pressure on gross margins but are focusing on these costs and are working on a full supply chain optimization effort. Marketing expense as a percent of revenue increased to During , we tested a number of different promotional offers to see what drove the best response rate in the current economy.
These tests, while impacting the marketing expense, will provide valuable insight into We successfully launched our new ecommerce platform during which increased the computer services expense after the development work on this website was completed. While we will continue to incur maintenance and support for our website, we believe the additional support needed for the initial launch will decline in Other expense primarily represents the realized gains and losses from currency.
The impairment charge primarily resulted from lower-than-expected operating results and projections of future performance coupled with the current non-strategic business direction of Zero Water and the overall general economic decline which indicated that the full carrying value of the equity investment was not recoverable. Any excess cash in was invested in treasury and money market accounts as compared to marketable securities in Revenue growth in the first half of was strong yet the second half of was impacted by competitive and economic pressures.
Table of Contents Other Expense. Other expense represents the realized gains and losses from currency. Contractual Obligations and Commercial Commitments. Following is a summary of our contractual obligations. We have no other commercial commitments. Fulfillment and food purchase commitments. The Company has entered into supply agreements with various food vendors.
Additionally, the Company has entered into an agreement with our outside fulfillment provider which contains minimum space requirements. The Company anticipates it will meet all annual purchase commitments. In addition, we have no off-balance sheet financing arrangements. The capital and credit markets have become more volatile as a result of the recent global economic conditions.
This has caused a general tightening in the credit markets, lower levels of liquidity and increased financing costs. Despite these factors, we believe that available capital resources are sufficient to fund our working capital requirements, capital expenditures, income tax obligations, dividends and share repurchases for the foreseeable future.
Our principal sources of liquidity during this period were cash flow from operations. We currently have no off-balance sheet financing arrangements. The decrease in cash flow from operations is primarily attributable to lower net income offset by less of an inventory build during as compared to The repurchased shares have been retired.
We commenced our operational transition of NuKitchen during the fourth quarter of Table of Contents Seasonality. Typically in the weight loss industry, revenue is strongest in the first calendar quarter and lowest in the fourth calendar quarter.
We believe our business experiences seasonality, driven by the predisposition of dieters to initiate a diet and the price and availability of certain media. This seasonality can be seen in our results for and , however, in , third quarter revenue was higher than the first quarter due in part to favorable conditions in the market for certain media. Recently Issued Accounting Pronouncements. We believe that we are not subject to any material risks arising from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices or other market changes that affect market risk instruments.
As such, a change in interest rates of 1 percentage point would not have a material impact on our operating results and cash flows. We have recently expanded internationally into Canada but believe we have low exposure to changes in foreign exchange rates at this point and have not yet hedged our operating exposure to foreign currency fluctuations.
The information required by this Item is set forth on pages 38 through 60 hereto and is incorporated by reference herein. Disclosure Controls and Procedures. Internal control over financial reporting includes policies and procedures that: Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. In our opinion, NutriSystem, Inc. None, as all information required in these schedules is included in the Notes to the Consolidated Financial Statements.
Notes to Consolidated Financial Statements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of NutriSystem, Inc. Cash and cash equivalents.
Current assets of discontinued operation. Accrued payroll and related benefits. Other accrued expenses and current liabilities. Current liabilities of discontinued operation. Accumulated other comprehensive income. The accompanying notes are an integral part of these consolidated financial statements. Net loss from discontinued operation. Exercise of stock options. Purchase and retirement of common shares. Exercise of share-based instruments held by consultants, net of liability classification upon adoption of SFAS R.
Tax benefit from stock option exercises. Foreign currency translation adjustment. Tax benefit from equity compensation awards. Adjustments to reconcile net income to net cash provided by operating activities-.
Loss on discontinued operation. Gain loss on disposal of fixed assets. Deferred income tax expense benefit. Changes in operating assets and liabilities. Other accrued expenses and liabilities. Net cash provided by operating activities of continuing operations.
Net cash used in provided by operating activities of discontinued operation. Net cash provided by operating activities. Purchases of marketable securities. Sales of marketable securities.
Cash paid for acquisition of business. Proceeds from the sale of fixed assets. Purchase of equity investment. Net cash used in provided by investing activities of continuing operations. Net cash provided by used in investing activities of discontinued operation. Net cash used in provided by investing activities. Borrowings under credit facility. Repayments of borrowings under credit facility.
Tax benefit from equity compensation awards, net. Repurchase and retirement of common stock. Net cash used in financing activities of continuing operations. Net cash used in financing activities of discontinued operation. Net cash used in financing activities.
Effect of exchange rate changes on cash and cash equivalents. Nature of the Business. This subsidiary has been treated as a discontinued operation. Accordingly, the operating results of this discontinued operation have been presented separately from continuing operations and are included in loss on discontinued operation, net of income tax in the accompanying consolidated statements of operations for all periods presented.
The assets and liabilities have also been presented separately in the accompanying consolidated balance sheets see Note Presentation of Financial Statements.
All significant intercompany accounts and transactions have been eliminated. Cash, Cash Equivalents and Marketable Securities. Cash and cash equivalents include only securities having a maturity of three months or less at the time of purchase.
These securities were redeemed at cost during The reset date is the date on which the underlying interest rate is revised based on a Dutch auction. Typically interest reset dates are every 35 days for these types of securities.
Inventories are valued at the lower of cost or market, with cost determined using the first-in, first-out FIFO method. Table of Contents Included in fixed assets is the capitalized cost of internal-use software and website development incurred during the application development stage.
Capitalized costs are amortized using the straight-line method over the estimated useful life of the asset, which is generally two to five years. Costs incurred related to planning or maintenance of internal-use software and website development are charged to expense as incurred.
The investment in Zero Water is accounted for using the equity method of accounting and is classified as equity investment in the accompanying consolidated balance sheets. The Company periodically reviews the carrying value of its investment in Zero Water to determine if circumstances exist indicating impairment to the carrying value of the investment. This determination requires significant estimates by management, including the expected course of action at the balance sheet date that would lead to such cash flows.
Subsequent changes in estimates could impact the determination of whether an impairment exists. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the fair value of the property. Identifiable Intangible Assets and Goodwill. Valuation of Long-Lived and Intangible Assets. Assets and liabilities are translated into U. Table of Contents Revenue Recognition. Revenue from product sales is recognized when the earnings process is complete, which is upon transfer of title to the product.
This transfer occurs upon shipment. Recognition of revenue upon shipment meets the revenue recognition criteria in that persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and determinable and collection is reasonably assured.
Customers may return unopened product within 30 days of purchase in order to receive a refund or credit. Estimated returns are accrued at the time the sale is recognized and actual returns are tracked monthly. The Company reviews its history of actual versus estimated returns to ensure reserves are appropriate.
Revenue from product sales includes amounts billed for shipping and handling and is presented net of returns and billed sales tax. Shipping-related costs are included in cost of revenue in the accompanying consolidated statements of operations.
The Company has supply arrangements with these vendors that require the Company to make minimum purchases. The Company accounts for this rebate on an accrual basis as purchases are made at a rebate percent determined based upon the estimated total purchases from the vendor.
The estimated rebate is recorded as a reduction in the carrying value of purchased inventory and is reflected in the consolidated statements of operations when the associated inventory is sold. Historically, the actual rebate received from the vendor has closely matched the estimated rebate recorded. An adjustment is made to the estimate upon determination of the final rebate.
The Company records rental costs, including costs related to fixed rent escalation clauses and rent holidays, on a straight-line basis over the lease term. Lease allowances utilized for space improvement are recorded as leasehold improvement assets and amortized over the shorter of the economic useful life of the asset or the lease term.
Tenant lease incentive allowances received are recorded as deferred rent and amortized as reductions to rent expense over the lease term. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date.
FIN 48 prescribes a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. A tax benefit from an uncertain position was previously recognized if it was probable of being sustained. Under FIN 48, the liability for unrecognized tax benefits is classified as noncurrent unless the liability is expected to be settled in cash within 12 months of the reporting date.
The Company records accrued interest and penalties related to unrecognized tax benefits as part of interest expense. This statement defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.
Currently, the Company has not elected to treat any of its financial assets or liabilities under the fair value option. Table of Contents Earnings Per Share. Diluted EPS reflects the potential dilution from the exercise or conversion of securities into common stock, such as stock options and unvested restricted stock, using the treasury stock method. The following table sets forth the computation of basic and diluted EPS: Effect of dilutive stock options and unvested restricted stock.
In , and , common stock equivalents from stock options and unvested restricted stock representing ,, 89, and 63, shares of common stock, respectively, were excluded from weighted average shares outstanding for diluted income per common share purposes because the effect would be anti-dilutive.
The cost of all share-based awards to employees, including grants of employee stock options and restricted stock, is recognized in the financial statements based on the fair value of the awards at grant date. The fair value of stock option awards is determined using the Black-Scholes valuation model on the date of grant. The fair value of share-based awards is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. The Company relies primarily upon historical experience to estimate expected forfeitures and recognizes compensation expense on a straight-line basis from the date of grant.
The Company issues new shares upon exercise of stock options or granting of restricted stock. Interest payments in , and were not material. The initial measurement, decreases in value and changes in the level of ownership of the equity method investment are addressed. The preparation of financial statements in accordance with U. Actual results could differ from these estimates. Pro forma statement of operations data is not included for NuKitchen as the operations are not material in relation to the consolidated financial statements.
The following summarizes cash, cash equivalents and marketable securities: These securities were sold at par value in January Fixed assets consist of the following: Computer hardware and software. Table of Contents 6. The identifiable intangible assets are amortized over the above noted periods on a straight-line basis. Estimated amortization expense for identifiable intangible assets for the next five years is as follows: This investment is accounted for under the equity method of accounting.
The charge was recorded as equity and impairment loss in the accompanying consolidated statements of operations. The Credit Facility provides for interest at either a floating rate, which will be a base rate, or a Eurocurrency rate equal to the London Inter-Bank Offered Rate for the relevant term, plus an applicable margin. The base rate will. The Credit Facility is also subject to 0.
The Credit Facility contains financial and other covenants, including a maximum leverage ratio and minimum interest coverage ratio, and includes limitations on, among other things, liens, certain acquisitions, consolidations and sales of assets.
The Company may declare and pay cash dividends up to specified amounts if certain ratios are maintained and no events of default have occurred. The Company leases its warehouse, corporate headquarters and certain equipment.
These leases generally have initial terms of one to 10 years and have renewal options for additional periods. Certain of the leases also contain escalation clauses based upon increases in costs related to the properties. These suits, which were nominally brought on behalf of NutriSystem, Inc.
The federal complaints allege violations of Sections 10 b and 20 a of the Securities Exchange Act of and claims for. Table of Contents breach of fiduciary duty, waste, and unjust enrichment against all defendants and insider selling against certain defendants. Like the federal derivative action, the state court action is nominally brought on behalf of the Company and names a majority of the current Board of Directors as defendants.
This action has been stayed. One agreement also provides rebates if certain volume thresholds are exceeded. Table of Contents The timing and actual number of shares repurchased depends on a variety of factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. The Company has authorized 5,, shares of preferred stock issuable in series upon resolution of the Board of Directors. Unless otherwise required by law, the Board of Directors can, without stockholder approval, issue preferred stock in the future with voting and conversion rights that could adversely affect the voting power of the common stock.
The issuance of preferred stock may have the effect of delaying, averting or preventing a change in control of the Company. The income tax benefit attributable to discontinued operation consists of the following: A new tip has been added for Nutrisystem. Read more at finance. See more updates for Nutrisystem Join SponsorPitch. This SponsorPitch page is about Nutrisystem and contains information about this organization's sponsorship activity, sponsorship decision makers and sponsorship preferences.
This page is not endorsed by or affiliated with Nutrisystem, though it may be actively managed and updated by company representatives.
If you currently work at this organization, click the Manage Sponsor button to request management privileges. All trademarks, service marks and copyrights are property of their respective owners. It takes so much of time and dedication, because you have to prepare a menu, shop for groceries, prepare the food, and then finally stick to it.
To top it all, the dietary food that you prepare at home lacks taste, yet you strive to have it in the aim of achieving effective weight loss. However, in reality, you can lose weight even by consuming tasty food, that too without going through all the preparation processes which are delivered at your doorstep from Nutrisystem.
However, later it completely moved its business strategy to online only. The company has earned so much of popularity and it is the market leader in weight loss programs. Nutrisystem has been helping millions of people in achieving their weight loss goals. In addition, it also helps those who want to keep control of their weight and health. The portion-controlled diet program is very simple and easy to follow. Nutrisystem program has several plans as listed below.
All plans comes with Turbo 13 kit which is the latest addition for Nutrisystem plans for women has three sub plans namely Basic, Core and Uniquely Yours.
In basic plan, foods are preselected for you.