Medifast, Inc. (NYSE:MED) Q4 2023 Earnings Call Transcript

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Linda Bolton-Weiser: Okay. And then — can you just remind us in terms of what they provide to patients, do they help them with insurance navigation. And if so, what percentage of their GLP-1 patients have insurance coverage for that?

Dan Chard: They do offer assistance with navigating the insurance question and provide solutions for those who are not insured or underinsured. We don’t report on their specific metrics, so I’ll leave that question to them to answer in terms of what percentage are insured versus uninsured. But I do think — and I think you’re getting at this, and I mentioned this earlier, they have a unique offering during a time of scarcity and some supply constraints to provide those who are looking for an answer through alternative made other than through their compound pharmacy to have a viable way to achieve the benefits of medically supported weight loss. And so I think that was one of the attractive offers that they have along with their very specific type of primary care physician support through their robust platform.

So I think we’re I would say at this stage, we are very pleased with the collaboration that we’re seeing. As we said, where our IT — respective IT teams are actively working as we speak to achieve this integration. And all of that is meant to provide an excellent client experience on our side or patient experience on their side to achieve this lifestyle component that’s becoming more and more relevant as we learn more about what people are looking for and how to achieve the best outcomes while using GLP-1 medications.

Linda Bolton-Weiser: Okay. And then finally, the range for EPS for the first quarter, it seems a little bit wide. Is the variability of getting to the low end versus the high end of EPS, is that just variability around how revenue comes out or is it that you’re unsure of gross margin or the SG&A spending level? What’s the variability there?

James Maloney: Yeah. It’s mainly the SG&A spending, and it depends on the investments that I spoke about earlier, how much of it is actually spent in Q1 — that’s the majority of the variability.

Linda Bolton-Weiser: Okay. All right. Thanks a lot. I appreciate it.

James Maloney: Thank you.

Dan Chard: Thanks, Linda.

Operator: Thank you. There are no questions — there are no further questions at this time. I’d like to hand the floor back to Dan Chard for any closing comments.

Dan Chard: Like to thank you both for your questions and for the opportunity to further expand on our transformative vision on today’s call. Today, we stand at the start of an important shift in this company’s proud and successful history as we broaden our approach and position ourselves to be ever more central to the health and wellness journeys of people across the United States and beyond. We have a remarkable platform built on deep experience, strong collaborations, investment firepower and talented and passionate coaches and employees who can help us deliver on our goals and our mission to make healthy habits second nature has never been more important in a world where obesity remains a significant and growing problem. I’m excited about the opportunity that Medifast has to become an ever more important part of the solution and I look forward to updating you further on our progress on our next call. Thanks, everyone, and have a great day.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.

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