Tivity Health, Inc. (NASDAQ:TVTY) Q1 2016 Earnings Conference Call Transcript
Apr 28, 2016 • 05:00 pm ET
our business has helped immensely to deliver the positive results on our EBITDA, which came in at $33.1 million, meeting our internal forecast. Revenue came in at $149.9 million in the first quarter. And as you will hear later in more detail, the actual visits were challenged by the severity of both the weather as well as the flu season particularly in January and February.
Over the years, and as we have grown our eligible lives for SilverSneakers, we have continued the transition of our member base from a PMPM to a hybrid model and subsequently have become more subject to certain weather and macro health factors beyond our control that can impact us within any given quarter, much like what we saw last year with the hurricanes. However, the good news is that as we continue to increase the momentum behind our awareness, enrollment and engagement initiatives supported by a strong digital platform, we believe we will be able to quickly recognize these issues. Additionally and in the future, we intend to offer alternative fitness venues that would capture activity outside the gym when these conditions surface, like flu and weather challenges. Our premise is clear. Even in the flu and weather-strained time periods, we still want seniors to be active even if that activity is conducted in a digital offering. Fortunately, our health plan customers are now recognizing Tivity Health as a company that is taking a holistic approach to their members and are open to the discussion around alternative revenue models for capturing activity, whether it be at a gym, a community center, the home or a place outside the home. More details on this will be shared at our June 1 Investor Day presentation in New York.
And so for now, without further ado, I'll turn the call over to Adam to discuss our first quarter performance. Adam?
Thanks, Donato, and good afternoon, everyone. I'd like to start by recapping some of the key financial metrics for the first quarter. First quarter revenues were $149.9 million compared to $141 million for the first quarter of 2017, an increase of 6.4% over last year. We are especially pleased with our performance in light of the unusually adverse winter weather particularly in the Northeast, coupled with a severe flu season.
Net income was $21.3 million for the quarter compared to net income from continuing operations of $15.5 million in the first quarter last year. Earnings per diluted share was $0.49 compared to adjusted earnings per diluted share of $0.42 in the first quarter last year. We generated EBITDA of $33.1 million for the quarter, providing an EBITDA margin of 22.1%.
SilverSneakers visits were approximately 25.6 million compared to 24.2 million for the first quarter of 2017. During Q1 2018, Prime member pay enrollment increased by approximately 23,000 net new subscribers and now totals approximately 283,000 subscribers compared to 234,000 subscribers at the end of Q1 '17.
While we are pleased with the growth in revenue year-over-year, we believe