The solutions that we provide toconsumers dedicated to improving their quality of life have proven to beeffective and we are dedicated to delivering our value proposition to themarket in the most efficient and cost-effective manner possible.'
Gross margins increased to 75.8% from 74.8% for the first quarter of 2008compared with a year ago. The gross margin improved due to efficienciesgained from new machinery purchases in prior year as well as new shippingrules that resulted in additional shipping revenue from customers nettingagainst shipping expense
2008 Full-Year Guidance
Management reiterates expectations of revenue growth for full-year 2008 inthe range of 8-10%; and diluted earnings per share growth in the range of30-35% for the year ended December 31, 2008.
First Quarter 2008 Conference Call
Interested parties can access the call by dialing (877) 407-8031 or (201)689-8031, or can listen via a live Internet web cast, which can be found athttp://www.choosemedifast.com in the section marked 'Investor Relations.' Areplay of the call is available via web cast at http://www.choosemedifast.comuntil August 12, 2008 or by playback at (877) 660-6853 or (201) 612-7415through June 12, 2008. Please use account #286 and conference id #282077 forthe replay.
About Medifast:
Medifast (NYSE: MED) is the leading easy-to-use, clinically provenportion-controlled weight loss program. Medifast has been recommended by15,000 physicians and used by over one million customers. Medifast iscommitted to enriching lives by providing innovative choices for lastinghealth. Medifast programs have been proven effective through studies by majoruniversity teaching hospitals. The company sells its products and programs viafour unique distribution channels: 1) the web and national call centers, 2)national network of physicians, 3) medically supervised Medifast WeightControl Centers, and 4) the Take Shape For Life direct-selling division, anetwork of health coaches. Medifast was founded in 1980 and is located inOwings Mills, Maryland. For more information, log ontohttp://www.ChooseMedifast.com.
Please Note: This release contains 'forward-looking statements' within themeaning of Section 27A of the Securities Act of 1933, as amended, Section 21Eof the Securities Exchange Act of 1934, as amended, and the Private SecuritiesLitigation Reform Act of 1995. These forward-looking statements generally canbe identified by use of phrases or terminology such as 'intend' or othersimilar words or the negative of such terminology. Similarly, descriptions ofMedifast's objectives, strategies, plans, goals or targets contained hereinare also considered forward-looking statements. Medifast believes this releaseshould be read in conjunction with all of its filings with the United StatesSecurities and Exchange Commission and cautions its readers that theseforward-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 initiativesaffecting the cost to acquire customers, increases in competition, litigation,regulatory changes, and its planned growth into new domestic and internationalmarkets and new channels of distribution. Although Medifast's believes thatthe expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider allof the risk factors and any other cautionary statements carefully inevaluating each forward-looking statement in this release, as well as thoseset forth in its latest Annual Report on Form 10-K and Quarterly Report onForm 10-Q, and other filings filed with the United States Securities andExchange Commission, including its current reports on Form 8-K. All of theforward-looking statements contained herein speak only as of the date of thisrelease.
Contact: Brendan Connors Lytham Partners, LLC Vice President - Finance Joe Diaz 410-581-8042 Joe Dorame ir@choosemedifast.com Robert Blum 602-889-9700
MEDIFAST, INC.