Tivity Health, Inc. (NASDAQ:TVTY) Q1 2016 Earnings Conference Call Transcript

Apr 28, 2016 • 05:00 pm ET

Previous

Tivity Health, Inc. (NASDAQ:TVTY) Q1 2016 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

(Operator Instructions) And our first question comes from Ryan Daniels with William Blair.

Analyst
Ryan Daniels

Adam, a quick housekeeping because I missed it. Can you give me again the year ago SilverSneakers visit for Q1 '17?

Executive
Adam Holland

So that's 24.2 million visits a year ago.

Analyst
Ryan Daniels

Okay. And so that's up about 5.8% year-over-year for the entire quarter. Can you speak to the magnitude of the improvement you saw in March? I think that will probably be one of the key questions for investors. So I'm curious if it was up 5.8% for the quarter. What was it up year-over-year in March?

Executive
Adam Holland

Yes, Ryan. Without giving an exact dollar figure, I'd say that what we saw in March is that the visits were more on our internal plan.

Analyst
Ryan Daniels

Closer to high single digits?

Executive
Adam Holland

Yes, just closer to our original planned expectations.

Analyst
Ryan Daniels

Okay, fair enough. And then I want to ask more about 2019 with some of the changes that are eligible for Medicare Advantage plans. It sounds like, number one, they're easing up on some of the marketing in the MA plan beneficiary. So I'm curious how you think that could potentially benefit you. And then number two, it also seems like there's an ability for MA to offer a lot of ancillary benefits, like meals and transportation, et cetera. So it seems like that could be an area where you really step up the collaboration and partnership with plans going forward. So I'm curious if you think some of those legislative changes will benefit the organization.

Executive
Donato Tramuto

Absolutely, and let me work backwards. That's part of that whole social isolation. If you look at Meal on Wheels, for example, Ryan, what a great way to be partnering with them and to have connections in the home. So we think that, that is going to be a -- and that's what I talked about. If you remember, the C part of our strategy is to collaborate with partners. That's exactly -- you've identified them, whether it be transportation, whether it be just connecting people. For example, it's not just Meal on Wheels. Many of the physical locations have other programs that they offer beyond just the treadmill, and so we're working with them to make sure we escalate those opportunities. And with respect to the first one, the marketing, and that just feeds rightly, nicely into this whole digital strategy. And so there is not a plan out there, I can say that, and I have our Chief Growth Officer who can correct me. There's not a plan out there right now that has not applauded us in terms of what we're doing with respect to digital. And I think the whole reason -- now you know why the silversneakers.com is incredibly important to us. We see that as our great conduit to form a digital relationship and to encourage them, if you will, to get to the gym not just for physical workout but for social interactions. We will be talking about -- I don't