Medifast, Inc. (NYSE:MED) Q1 2023 Earnings Call Transcript

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So what we also are looking at is that these drugs focus on a very specific group of people, primarily and largely those with a BMI above 30 that have a specific risk or slightly below that but also have a risk factor. So those — that really is on top of our target. So I guess to answer your specific question, we believe that our 60,000 OPTAVIA Coaches nationwide support — nutritional support and our Habits Health lifestyle program are all part of the solution for those who want health and intervention, but we also want to learn health — they also want to learn how to generate solutions for how they change their own lifestyle and their habits. So we want to — we plan and are looking at ways to ensure that we’re relevant for customers who want to be on the GLP-1 drugs and also those who want to do it without.

And again, we’re not ready to announce anything on the call today, but we have some specific initiatives to help us ensure that we’re relevant to our clients who are looking to start their journey to better health and to transform their lives through better health.

Linda Bolton-Weiser: Okay. And then just one last question. Can you just – do you have an operating cash flow and a CapEx number for the quarter?

Jim Maloney: Yes. So the operating cash flow for the quarter, Linda, was — we were actually better by 47%. So the operating — the net cash flow provided by operating activities was $64 million and CapEx was $2 million for the quarter.

Linda Bolton-Weiser: CapEx was, I’m sorry, $2 million?

Jim Maloney: $2 million, correct, yes.

Linda Bolton-Weiser: Okay. Thank you very much.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Dan Chard for any closing remarks.

Dan Chard: I’d just like to conclude by thanking everyone for your time on the call today and for the questions. We appreciate your interest in Medifast and the work we do to deliver lifelong transformation, one healthy habit at a time. As you’ve listened to our message, I think it’s clear that as a business, we’re continuing to take proactive steps to adjust to the changing dynamics of the market. We’ve galvanized our team to adjust our existing work and customer acquisition, enhancing our efforts in coach-led training, programming, and positioning to activate new and former clients. At the same time, we’re intensely focused on a series of growth initiatives such as development of the US Hispanic market and expansion into adjacent product categories.

We have the investment firepower to grow and the deep management experience to take advantage of opportunities that lie ahead. Most importantly, we have a uniquely differentiated model that provides us with a powerful platform to achieve our long-term sustainable growth goals. We’re as dedicated to our mission as we have been ever. And I’m excited by the journey that lies ahead. Thank you, as always, for your interest in Medifast, and we look forward to speaking with you again next quarter.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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