Nutrisystem, Inc. (NASDAQ:NTRI) Q3 2017 Earnings Conference Call Transcript

Oct 25, 2017 • 05:00 pm ET

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Nutrisystem, Inc. (NASDAQ:NTRI) Q3 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Nutrisystem's Third Quarter 2017 Financial Results Conference Call. At this time, all participants are in a listen-only mode. An interactive question-and-answer session will follow the formal presentation.

(Operator Instructions)

As a reminder, this conference is being recorded.

I'll now like to turn the conference over to your host, Mr. John Mills. Thank you, you may begin.

Executive
John Mills

Thank you. Good afternoon everyone, and thank you for joining us to discuss Nutrisystem's third quarter 2017 financial results. Today, Dawn Zier, President and CEO will provide an overview of the business. Mike Monahan, CFO will review the third quarter results and provide fourth quarter and updated full-year 2017 financial guidance. And Keira Krausz, Chief Marketing Officer, will review and provide insight into the Company's marketing initiatives. We will then open up the call to take your questions. Please note, on today's call we would appreciate participants to limit themselves to two questions.

(Forward-Looking Cautionary Statements)

Nutrisystem's earnings press release for the third quarter of 2017 can be found under the News Release link on the Investor Relations page of the Company's website at nutrisystem.com. The tables attached to that earnings press release include reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

With that, I will now turn the call over to Dawn Zier.

Executive
Dawn Zier

Thank you, John, and thanks to everyone who has joined. As America strives to become healthier, the first step for many is to embark on a weight loss journey that helps benefits realize from even modest weight loss is significant and we are committed to helping consumers achieve their health-oriented goal through a platform of solutions and programs that can be tailored to what works best for them. That is what our multi-brand approach to the market is all about, choices that work and solutions that are safe and effective, scientifically backed and a design to help simplify the busy and sometimes overwhelming life style that many of us lead.

Today, I am pleased to report our 17th consecutive quarter of year-over-year revenue growth, which reflects the strong demand and overwhelmingly positive reception to our program.

In the third quarter, our topline grew by 27% and our earnings per share increased over 80% compared to last year. These very strong results are driven by a number of factors including, one, our success in attracting new customers, building out our relationship with them and better serving them through each phase of their weight loss journey, and two, our ability to grow reactivation revenues as former customers return to us at increased rates as they learned about our new program, expanded option, the new tools and services designed to help them succeed every step of the way.

Because of these results, which exceeded our already high initial expectations we are raising our full year guidance ranges again for 2017 Mike will provide more details in a moment.

I'd now like to share some third quarter highlights across our primary areas of focus,