Online weight loss firm Nutri/System has reported net income of US$1.7m for the Q1 ended 31 March 2002, as compared to a net income of US$637,000 in the same quarter last year.
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Nutri/System earned US$0.06 per diluted share in the Q1, up from US$0.02 year on year. Earnings in 2002 arose entirely from continuing operations, in line with guidance given by Nutri/System earlier in the year, while in 2001 earnings were primarily attributable to a discontinued operation.
Q1 revenue reached US$10.4m, up 50% from the same quarter of 2001 and operating income from continuing operations reached US$1.7m, up sharply from US$65,000 in the Q1 of 2001.
Nutri/System ended the Q1 with cash and cash equivalents of US$3.5m, an increase of US$2.4m from the beginning of the year.
“Once again, we used a portion of our cash flow to repurchase shares of Nutri/System’s common stock,” said James D. Brown, CFO. “In the Q1 we repurchased 355,000 shares at an average price of US$0.81 per share. In the 14 months since we announced the share repurchase programme, we have repurchased 2,375,357 shares of common stock, reducing shares outstanding by 8.3%.”
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By GlobalDataBrian D. Haveson, Nutri/System’s CEO, added: “As expected, QVC provided a big boost to sales in the Q1 of this year, amounting to US$3.95m or 38% of total revenues.
“Our exposure on QVC also brought visitors and customers to our web site. By putting more emphasis on innovative ways to support the Internet business, like QVC exposure, our referral program and continuity billing, we were able to reduce advertising spending by 46% and see only a 5% reduction in Internet revenues relative to the Q1 of last year.”
