First quarter boost for Nutri/System

- Last updated on GMT

Related tags: Weight loss, Stock, Management occupations, Corporate governance

Nutri/System, the US-based producer and marketer of weight loss
products, has reported an improvement in first quarter sales from
$637,000 in 2001 to $1.74 million (€1.89m).

Nutri/System, the US-based producer and marketer of weight loss products, has reported an improvement in first quarter sales from $637,000 in 2001 to $1.74 million (€1.89m).

The company said its profits in 2002 were generated entirely by continuing operations, while in 2001 earnings were primarily attributable to a discontinued operation.

Sales for the quarter were up 50 per cent to $10.4 million from $6.98 million a year earlier, while operating income from continuing operations was up sharply from $65,000 to $1,767,000.

"Once again, we used a portion of our cash flow to repurchase shares of Nutri/System's common stock,"​ said James D. Brown, chief financial officer. "In the first quarter we repurchased 355,000 shares at an average price of $0.81 per share. In the 14 months since we announced the share repurchase programme, we have repurchased 2,375,357 shares of common stock, reducing shares outstanding by 8.3 per cent."

Promoting the company's weight loss products on the QVC television shopping channel had a positive effect on sales, amounting to $3.95 million or 38 per cent of total revenues, said Brian D. Haveson, Nutri/System's chief executive officer.

"Our exposure on QVC also brought visitors and customers to our website. By putting more emphasis on innovative ways to support the Internet business, like QVC exposure, our referral programme and continuity billing, we were able to reduce advertising spending by 46 per cent and see only a 5 per cent reduction in Internet revenues relative to the first quarter of last year," he said.

Related topics: Suppliers

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