OWINGS MILLS, Md., Dec. 26 /PRNewswire-FirstCall/ -- Medifast, Inc. (NYSE: MED) announced today that it has been notified by the New York Stock Exchange (the "NYSE") that it is not in compliance with the NYSE's continued listing standards. Medifast, Inc. is considered below criteria by the NYSE because over a consecutive 30-day trading period its total market capitalization was less than $75 million and the Company's most recently reported shareholders' equity was below $75 million. Under applicable NYSE procedures, the Company has 45 days from the receipt of the notice to submit a plan to the NYSE to demonstrate its ability to achieve compliance with the continued listing standards within 18 months. The Company plans to submit a plan that will demonstrate compliance with the listing standards within the required time frame.
About Medifast: (http://www.choosemedifast.com)
Medifast has been helping people lose weight and achieve better health for 25 years. Its meal replacement foods have been proven effective in multiple clinical studies, recommended by over 15,000 physicians and used by more than 1 million customers. Medifast offers its customers world-class customer service and nutrition support.
Please Note: This release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
Section 21E of the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by use of phrases or terminology
such as "intend" or other similar words or the negative of such
terminology. Similarly, descriptions of Medifast's objectives, strategies,
plans, goals or targets contained herein are also considered
forward-looking statements. Medifast believes this release should be read
in conjunction with all of its filings with the United States Securities
and Exchange Commission and cautions its readers that these forward-looking
statements are subject to certain events, risks, uncertainties, and other
factors. Some of these factors include, among others, Medifast's inability
to attract and retain independent Associates and Members, stability in the
pricing of print, TV and Direct Mail marketing initiatives affecting the
cost to acquire customers, increases in competition, litigation, regulatory
changes, and its planned growth into new domestic and international markets
and new channels of distribution. Although Medifast's believes that the
expectations, statements, and assumptions reflected in these forward-
looking statements are reasonable, it cautions readers to always consider
all of the risk factors and any other cautionary statements carefully in
evaluating each forward-looking statement in this release, as well as those
set forth in its latest Annual Report on Form 10-K and Quarterly Report on
Form 10-Q, and other filings filed with the United States Securities and
Exchange Commission, including its current reports on Form 8-K. All of the
forward-looking statements contained herein speak only as of the date of
this release.
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
(Restated)
September 30, 2007 December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents $2,102,000 $1,085,000
Accounts receivable-net of allowance
for doubtful accounts of $100,000 425,000 448,000
Inventory 8,471,000 8,255,000
Investment securities 1,477,000 1,540,000
Deferred compensation 830,000 673,000
Prepaid expenses and other current assets 3,208,000 2,599,000
Note receivable - current 174,000 174,000
Current portion of deferred tax asset 91,000 90,000
Total current assets 16,778,000 14,864,000
Property, plant and equipment - net 16,005,000 14,020,000
Trademarks and intangibles - net 5,749,000 5,874,000
Deferred tax asset, net of current portion 807,000 517,000
Note receivable, net of current assets 1,250,000 1,355,000
Other assets 84,000 47,000
TOTAL ASSETS $40,673,000 $36,677,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $2,805,000 $2,913,000
Income taxes payable 101,000 535,000
Line of credit - 1,256,000
Current maturities of long-term debt 1,460,000 548,000
Total current liabilities 4,366,000 5,252,000
Other liabilities and deferred credits
Long-term debt, net of current portion 4,615,000 3,509,000
Total liabilities 8,981,000 8,761,000
Stockholders' Equity:
Preferred stock, $.001 par value
(1,500,000 authorized, no shares
issued and outstanding) - -
Common stock; par value $.001 per
share; 20,000,000 shares authorized;
13,709,098 and 13,631,898 shares issued
and outstanding 14,000 14,000
Additional paid-in capital 26,930,000 26,629,000
Accumulated other comprehensive income 367,000 334,000
Retained earnings 9,216,000 5,981,000
36,527,000 32,958,000
Less: cost of 270,534 and 249,184
shares of common stock in treasury (1,971,000) (1,686,000)
Less: Unearned compensation (2,864,000) (3,356,000)
Total stockholders' equity 31,692,000 27,916,000
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $40,673,000 $36,677,000
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
(Restated) (Restated)
Revenue $21,846,000 $19,642,000 $63,975,000 $58,779,000
Cost of sales 5,523,000 4,705,000 15,944,000 14,334,000
Gross Profit 16,323,000 14,937,000 48,031,000 44,445,000
Selling, general, and
administration 14,766,000 13,166,000 43,116,000 37,362,000
Income from operations 1,557,000 1,771,000 4,915,000 7,083,000
Other income/(expense)
Interest expense, net (159,000) (42,000) (284,000) (134,000)
Other income 2,000 24,000 90,000 184,000
(157,000) (18,000) (194,000) 50,000
Income before provision
for income taxes 1,400,000 1,753,000 4,721,000 7,133,000
Provision for income
tax (expense) (446,000) (298,000) (1,486,000) (2,219,000)
Net income $954,000 $1,455,000 $3,235,000 $4,914,000
Basic earnings per share $0.07 $0.11 $0.25 $0.39
Diluted earnings per
share $0.07 $0.11 $0.24 $0.36
Weighted average shares
outstanding -
Basic 12,982,730 12,767,629 12,939,562 12,657,842
Diluted 13,683,809 13,603,208 13,640,641 13,493,421
SOURCE Medifast, Inc. Copyright©2007 PR Newswire. All rights reserved |