Coliseum Capital Initiates 6.2% Position in Medifast Inc (MED)

Coliseum Capital, managed by Christopher Shackelton and Adam Gray, has disclosed a new 6.2% stake in Medifast Inc (NYSE:MED). The position amasses 813,800 shares of the common stock and is passive by nature.

Medifast, Inc. (NYSE:MED)

Medifast Inc (NYSE:MED) produces and distributes clinically proven, portion-controlled weight-loss products and programs. The company’s net income was $5.3 million, or $0.39 per share in the fourth quarter of 2013, compared to net income of $1.9 million, or $0.13 per share, for the comparable quarter in 2012. For the fiscal year 2013, Medifast’s net income increased $8.1 million to $24.0 million, or $1.73 per share, compared to net income of $15.9 million, or $1.16 per share last year.

On March 10, Medifast Inc (NYSE:MED) announced that it is going to expand its international presence by launching in Canada. The expansion will take place in the first quarter of 2014, and the program, at launch, will include a variety of 11 Medifast Meal Replacement foods with plans to expand the line over time.

Among the largest shareholders of Medifast is Jacob Gottlieb‘s Visium Asset Management, which in its latest 13F reported holding 1.35 million shares of the company. Israel Englander‘s Millennium Management has been bullish on the company during the October-December period and raised its position by 24% to around 412,200 shares. On the other hand, Jim Simons‘ Renaissance Technologies has reduced slightly its holding to 340,400 shares.

In a separate filing, Coliseum Capital disclosed holding 2,065 units of The Providence Service Corporation (NASDAQ:PRSC)’s Phantom Stock. As of the end of the fourth quarter of 2013, the fund held 2.32 million shares of The Providence Service Corporation.

For the fourth quarter of 2013, The Providence Service Corporation reported net income of $3.4 million, or $0.24 per share, up 17% from $2.9 million, or $0.22 per share, in the prior year period. For the full year of 2013, the company’s net income was $19.4 million, or $1.41 per share, in 2013, a 129% and 120% increase, respectively, from $8.5 million, or $0.64 per share, in 2012.

Renaissance Technologies is also a shareholder of The Providence Service Corporation, holding 816,000 shares as at the end of last year.

Coliseum Capital is an activist hedge fund founded by Christopher Shackelton and Adam Gray. The fund owns 2.56 million shares of LHC Group Inc. (NASDAQ:LHCG), which is the most valuable holding in the fund’s equity portfolio (worth $61.63 million). In December 2013, Coliseum Capital acquired 24,700 shares of Accuride Corporation (NYSE:ACW) in one transaction at a price of $3.38 apiece, bringing the fund’s stake to little over 8.2 million shares.

Disclosure: none

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