XV19
18 years ago
November 24, 2006 - 1:29 PM EST
MED 13.33 0.28
Today 5d 1m 3m 1y 5y 10y
SYX 12.81 -0.70
Today 5d 1m 3m 1y 5y 10y
WMT 45.84 -0.26
Today 5d 1m 3m 1y 5y 10y
Schaeffer's Daily Market Blog Features: Intel, Wal-Mart Stores, Medifast, Systemax, and Family Dollar
Among the stocks featured in the November 24 edition of Schaeffer's Market Blog are Intel (NASDAQ:INTC), Wal-Mart Stores (NYSE:WMT), Medifast (NYSE:MED), Systemax (NYSE:SYX), and Family Dollar (NYSE:FDO). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .
Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/.
12:12 PM Medifast Short Sellers Getting Squeezed?
We could be seeing some short-covering activity on this day after Thanksgiving for weight and disease management products firm Medifast (NYSE:MED). Shares of the company have rallied nearly nine percent so far today, taking the stock above former resistance at the 11 level. According to Briefing.com, the investors are jumping on the equity due to a positive mention in a newsletter. Meanwhile, about 9.6 percent of the stock's float is sold short, and today's rally could be putting pressure on these bearish investors to buy back their positions. However, with today's light post-holiday volume, it will be interesting to see if MED holds today's gains into next week.
10:26 AM Intel Pulls Back on Restructuring News
Early yesterday morning, semiconductor bellwether Intel (NASDAQ:INTC) announced that it is reviewing the possibility of closing down or reducing the staff at its South Korean operations as part of its restructuring efforts. While it is a light trading day due to the Black Friday sales "holiday" in the States, INTC finds itself falling about one percent on news that normally boosts a company's shares. Technically, the stock is coming off a near-term top in the 22.50 area, a region that has troubled the security since late January. Furthermore, optimism is running high on the Street, with 18 of the 28 analysts covering the shares rating them a "buy" or better. Investors might want to keep an eye on short-term support in the 21.50 region, as a break of this level could indicate more downside potential over the short to intermediate term.
10:13 AM A Few Pesos More
Shares of Wal-Mart Stores (NYSE:WMT) have dipped about one percent this morning after The New York Times reported that the retailing giant received the permission from Mexico to open a bank in the country. Currently, WMT is pinned between its 10-day and 20-day moving averages, where it has spent the past seven trading sessions hovering above support at the 47.50 level. In sentiment, there mixed feelings toward the retailer on the Street, as eight of the 16 analysts covering the shares rate them a "hold," while the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.80 ranks above 84 percent of those taken during the past year. However, with WMT dropping some 8.6 percent since late October, this pessimism is to be expected.
9:53 AM Systemax Jumps on Earnings News
After the close on Wednesday, Systemax (NYSE:SYX) announced second-quarter earnings of $7.11 million, or 19 cents per share, compared to $1.52 million, or four cents per share, for the same period a year ago. Sales for the quarter rose eight percent to $547.2 million. The company also said it intends to release third-quarter results before the end of December. The security has gapped more than 14 percent higher this morning, jumping above former resistance at the 12.50 level. The equity is poised to finish the week back above its 10-week moving average as it bounces off the support of its ascending 20-week trendline.
9:45 AM Family Dollar Misses Extension Deadline
This morning, Family Dollar (NYSE:FDO) announced that it won't file its annual report by the Friday extended deadline, due to its continuing investigation into stock options. The board committee formed to investigate stock-option practices hasn't completed its work. At last check, the security was down more than one percent at $28.62 after being rejected yet again at the 29 level. This region is currently home to the stock's 10-week moving average, which has begun to roll over. This trendline could continue to hinder the equity's rally attempts during the near term. However, the shares have potential support at their 10-day and 20-day moving averages since the 28.30 region.
For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1.
Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1.
About Schaeffer's Investment Research (www.SchaeffersResearch.com)
Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method .
Schaeffer's, Cincinnati
Joseph Hargett, 513-589-3800
releases@sir-inc.com
Source: Business Wire (November 24, 2006 - 1:29 PM EST)
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XV19
18 years ago
November 14, 2006 - 4:10 PM EST
Medifast Announces Record Third-Quarter and YTD Revenues and Profits
OWINGS MILLS, Md., Nov. 14 /PRNewswire-FirstCall/ --Medifast, Inc. (NYSE: MED) announced today third quarter results for the period ended September 30, 2006. For the quarter-ended September 30, 2006, Medifast reported revenue of $19.6 million, a 79% increase from $11 million in the third quarter of 2005.
The Company reported net income of $1,490,000, or $0.12 per basic share ($0.11 per diluted share), versus $607,000 or $0.05 per basic share ($0.05 per diluted share) in 2005. Net income in the third quarter of 2006 was positively impacted by a tax benefit received as a result of the Company's investment in infrastructure in prior years. The third quarter of 2006 represented the Company's 28th consecutive quarter of profitability.
For the nine months ended September 30, 2006, Medifast reported revenue of $58.8 million, an increase of 97% from $29.9 million for the nine months ended September 30, 2005. The Company reported net income of $4.6 million, or $.37 per basic share ($.34 per diluted share), versus $1.6 million or $.13 per basis share ($.13 per diluted share) in 2005.
The Company had stockholders' equity of $27.2 million and working capital of $13 million at September 30, 2006, compared to $21.3 million and $9.6 million at September 30, 2005, respectively.
'We are pleased with the third quarter results, which were driven by our growing customer base within a multi-channeled business. Our customer acquisition strategy is driving brand awareness, which benefits our direct to consumer business and also drives customers and business opportunity leads into our direct sales network while fueling significant walk-ins to our new medically supervised clinics, which are now operational in test markets. We believe that our diverse infrastructure model, which does not rely on a single distribution method, will allow Medifast to benefit long term in the over $40 billion weight loss category. In a customer driven world, Medifast is positioned to handle the needs of all types of customers. Whether a person is looking to lose weight utilizing the advice of a nutritionist, the support of a health coach, share their experience with others in an online community or stay under medical supervision in a clinic or doctor's office, Medifast provides a program to cater to the individual needs of the customer,' said Michael S. McDevitt, Medifast President and CFO.
'Medifast combines products and programs that have been clinically proven and trusted by physicians for over 25 years with a 21st century business model that recognizes that every consumer is an individual. Medifast is in the business of making people healthy in a time when we are experiencing an obesity epidemic in our country. Medifast is committed to providing a lasting solution for health and we are excited about expanding our programs to include broader recommendations for using Medifast for long term health as we move forward,' stated Bradley T. MacDonald, Chairman and CEO.
2006 Financial Guidance
The company expects to generate revenue of $70 to $72 million for the year with after-tax earnings of $0.38 to $0.40 per diluted share.
Third Quarter Conference Call
The Company will hold a conference call and webcast at 5:00 PM EST on November 14, 2006 to discuss second quarter results.
Interested participants should call (866) 700-6979 when calling within the United States or (617) 213-8836 when calling internationally. Please refer to pass code 61684562. There will be a playback available as well. To listen to the playback, please call (888) 286-8010 when calling within the United States or (617) 801-6888 when calling internationally. Please use pass code 85452066 for the replay. The replay will be available until February 21, 2007.
The webcast may be accessed via the Company's web site at http://www.medifastdiet.com. Interested parties should go to the section marked 'Investor Relations' to listen to the call. The webcast can be accessed until February 21, 2007.
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.
This release contains forward-looking statements which may involve known, and unknown risks, uncertainties and other factors that may cause Medifast's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Medifast cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectation on this date.
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2006 December 31, 2005
(Unaudited) (Audited)
ASSETS
Current assets:
Cash $1,114,000 $1,484,000
Accounts receivable-net of
allowance for doubtful accounts
of $100,000 764,000 985,000
Income tax refund receivable 1,048,000 -
Inventory 8,003,000 5,475,000
Investment securities 2,420,000 2,700,000
Deferred compensation 640,000 525,000
Prepaid expenses and other
current assets 2,927,000 3,273,000
Note receivable - current 230,000 -
Deferred tax asset 90,000 -
Total Current Assets 17,236,000 14,442,000
Property, plant and equipment - net 11,578,000 9,535,000
Trademarks and intangibles - net 4,690,000 6,508,000
Deferred tax asset, net of current
portion 282,000 -
Note receivable, net of current
portion 1,305,000 -
Other assets 37,000 60,000
TOTAL ASSETS $35,128,000 $30,545,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $2,661,000 $2,263,000
Income taxes payable 501,000 899,000
Line of credit 612,000 633,000
Current maturities of long-term debt 502,000 561,000
Deferred tax liability - current - 90,000
Total current liabilities 4,276,000 4,446,000
Long-term debt, net of current
portion 3,603,000 3,977,000
Deferred tax liability - non-current - 101,000
Total Liabilities 7,879,000 8,524,000
Stockholders' Equity:
Common stock; par value $.001 per
share; 20,000,000 authorized;
13,544,481 and 12,782,791 shares
issued and outstanding, respectively 14,000 13,000
Additional paid-in capital 26,326,000 21,759,000
Accumulated other comprehensive income 208,000 282,000
Retained Earnings 5,787,000 1,149,000
32,335,000 23,203,000
Less: cost of 240,749 and 210,902
shares of common stock in treasury (1,565,000) (1,075,000)
Less: unearned compensation (3,521,000) (107,000)
Total Stockholders' Equity 27,249,000 22,021,000
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $35,128,000 $30,545,000
MEDIFAST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended Three Months Ended
September 30, September 30,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue $58,779,000 $29,865,000 $19,642,000 $10,985,000
Cost of sales 14,334,000 7,370,000 4,705,000 2,675,000
Gross Profit 44,445,000 22,495,000 14,937,000 8,310,000
Selling, general, and
administration 36,880,000 19,163,000 12,967,000 7,044,000
Income from operations 7,565,000 3,332,000 1,970,000 1,266,000
Other income/(expense)
Interest expense (271,000) ( 97,000) (90,000) (47,000)
Loss on sale of
Consumer Choice
Systems (323,000) - - -
Stock compensation
expense (346,000) - (164,000) -
Interest income 137,000 - 48,000 -
Other income (expense) 184,000 10,000 24,000 7,000
Income before provision
for income taxes 6,946,000 3,245,000 1,788,000 1,226,000
Provision for income
tax (expense) (2,307,000) (1,367,000) (298,000) (609,000)
Net income 4,639,000 1,878,000 1,490,000 617,000
Less: Preferred stock
dividend requirement - (291,000) - (10,000)
Net income $4,639,000 $1,587,000 $1,490,000 $607,000
Basic earnings per
share $0.37 $0.13 $0.12 $0.05
Diluted earnings per
share $0.34 $0.13 $0.11 $0.05
Weighted average
shares outstanding -
Basic 12,657,842 12,235,475 12,767,629 12,595,175
Diluted 13,493,421 12,438,531 13,603,208 12,989,147
SOURCE Medifast, Inc.
Source: PR Newswire (November 14, 2006 - 4:10 PM EST)
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