(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest income (expense) | ( | ( | |||||||||||||||||||||
Other income (expense) | ( | ( | ( | ||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Income from operations before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share - basic | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share - diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends declared per share | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Foreign currency translation | |||||||||||||||||||||||
Unrealized losses on investment securities | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Investment securities | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment - net of accumulated depreciation | |||||||||||
Right-of-use assets | |||||||||||
Other assets | |||||||||||
Deferred tax assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Income taxes payable | |||||||||||
Current lease obligations | |||||||||||
Total current liabilities | |||||||||||
Lease obligations, net of current lease obligations | |||||||||||
Total liabilities | |||||||||||
Stockholders' Equity | |||||||||||
Common stock, par value $ | |||||||||||
at September 30, 2023 and December 31, 2022, respectively | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
Less: treasury stock at cost, | ( | ||||||||||
Total stockholders' equity | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash provided by operating activities | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash lease expense | |||||||||||
Share-based compensation | |||||||||||
Loss on sale or disposal of property, plant and equipment | |||||||||||
Amortization of premium on investment securities | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Change in operating assets and liabilities: | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Other assets | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Income taxes payable | |||||||||||
Net cash flow provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Sale and maturities of investment securities | |||||||||||
Purchase of investment securities | ( | ||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Net cash flow used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Options exercised by directors | |||||||||||
Net shares repurchased for employee taxes | ( | ( | |||||||||
Cash dividends paid to stockholders | ( | ( | |||||||||
Stock repurchases | ( | ( | |||||||||
Net cash flow used in financing activities | ( | ( | |||||||||
Foreign currency impact | |||||||||||
Increase (Decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents - beginning of the period | |||||||||||
Cash and cash equivalents - end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Income taxes paid | $ | $ | |||||||||
Dividends declared included in accounts payable | $ | $ | |||||||||
Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Number of Shares Issued | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Options exercised by directors | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net shares repurchased for employee taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Treasury stock from stock repurchases | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Treasury stock retired from stock repurchases | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared to stockholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net shares repurchased for employee taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared to stockholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net shares repurchased for employee taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared to stockholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Number of Shares Issued | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net shares repurchased for employee taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Treasury stock from stock repurchases | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Treasury stock retired from stock repurchases | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared to stockholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net shares repurchased for employee taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Treasury stock from stock repurchases | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Treasury stock retired from stock repurchases | ( | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Stock Repurchases, not yet settled | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared to stockholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net shares repurchased for employee taxes | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Treasury stock from stock repurchases | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Treasury stock retired from stock repurchases | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Settlement of accelerated share repurchase agreement | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared to stockholders | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Packaging | |||||||||||
Non-food finished goods | |||||||||||
Finished goods | |||||||||||
Reserve for obsolete inventory | ( | ( | |||||||||
Total | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares of common stock outstanding | |||||||||||||||||||||||
Effect of dilutive common stock equivalents | |||||||||||||||||||||||
Weighted average shares of common stock outstanding | |||||||||||||||||||||||
Earnings per share - basic | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share - diluted | $ | $ | $ | $ |
Nine months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Awards | Weighted-Average Exercise Price | Awards | Weighted-Average Exercise Price | ||||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Outstanding at end of the period | $ | $ | |||||||||||||||||||||
Exercisable at end of the period | $ | $ |
Nine months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Outstanding at end of the period | $ | $ |
Three months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Share-Based Compensation Expense | Shares | Share-Based Compensation Expense | ||||||||||||||||||||
Options and restricted stock | $ | $ | |||||||||||||||||||||
Market and performance-based share awards granted in 2023 | |||||||||||||||||||||||
Market and performance-based share awards granted in 2022 | |||||||||||||||||||||||
Performance-based share awards granted in 2021 | |||||||||||||||||||||||
Performance-based share awards granted in 2020 | |||||||||||||||||||||||
Total share-based compensation | $ | $ |
Nine months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Shares | Share-Based Compensation Expense | Shares | Share-Based Compensation Expense | ||||||||||||||||||||
Options and restricted stock | $ | $ | |||||||||||||||||||||
Market and performance-based share awards granted in 2023 | |||||||||||||||||||||||
Market and performance-based share awards granted in 2022 | ( | ||||||||||||||||||||||
Performance-based share awards granted in 2021 | |||||||||||||||||||||||
Performance-based share awards granted in 2020 | |||||||||||||||||||||||
Total share-based compensation | $ | $ |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash paid for amounts included in the measurements of lease liabilities | |||||||||||
Operating cash flow used in operating leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for lease obligations | |||||||||||
Operating leases | $ | $ |
2023 (excluding the nine months ended September 30, 2023) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Less: imputed interest | ( | ||||
Total | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Foreign currency translation | $ | $ | |||||||||
Unrealized net losses on investment securities | ( | ||||||||||
Accumulated other comprehensive (loss)/income | $ | $ |
September 30, 2023 | |||||||||||||||||||||||||||||||||||
Cost | Unrealized Gains (Losses) | Accrued Interest | Estimated Fair Value | Cash & Cash Equivalents | Investment Securities | ||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | — | ||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||||
Money market accounts | — | — | |||||||||||||||||||||||||||||||||
Government & agency securities | — | ||||||||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||||
Corporate bonds | ( | — | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Cost | Unrealized Gains (Losses) | Accrued Interest | Estimated Fair Value | Cash & Cash Equivalents | Investment Securities | ||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | — | ||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||||
Money market accounts | — | — | |||||||||||||||||||||||||||||||||
Government & agency securities | — | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Revenue | $ | 235,869 | $ | 390,398 | $ | (154,529) | (39.6) | % | |||||||||||||||
Cost of sales | 58,492 | 107,549 | (49,057) | (45.6) | % | ||||||||||||||||||
Gross profit | 177,377 | 282,849 | (105,472) | (37.3) | % | ||||||||||||||||||
Selling, general, and administrative | 151,868 | 234,693 | (82,825) | (35.3) | % | ||||||||||||||||||
Income from operations | 25,509 | 48,156 | (22,647) | (47.0) | % | ||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest income (expense) | 1,033 | (261) | 1,294 | 495.8 | % | ||||||||||||||||||
Other income (expense) | 7 | (17) | 24 | 141.2 | % | ||||||||||||||||||
1,040 | (278) | 1,318 | 474.1 | % | |||||||||||||||||||
Income from operations before income taxes | 26,549 | 47,878 | (21,329) | (44.5) | % | ||||||||||||||||||
Provision for income taxes | 3,418 | 11,723 | (8,305) | (70.8) | % | ||||||||||||||||||
Net income | $ | 23,131 | $ | 36,155 | $ | (13,024) | (36.0) | % | |||||||||||||||
% of revenue | |||||||||||||||||||||||
Gross profit | 75.2 | % | 72.5 | % | |||||||||||||||||||
Selling, general, and administrative costs | 64.4 | % | 60.1 | % | |||||||||||||||||||
Income from operations | 10.8 | % | 12.3 | % | |||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Revenue | $ | 881,039 | $ | 1,261,332 | (380,293) | (30.2) | % | ||||||||||||||||
Cost of sales | 246,558 | 354,515 | (107,957) | (30.5) | % | ||||||||||||||||||
Gross profit | 634,481 | 906,817 | (272,336) | (30.0) | % | ||||||||||||||||||
Selling, general, and administrative | 516,755 | 754,610 | (237,855) | (31.5) | % | ||||||||||||||||||
Income from operations | 117,726 | 152,207 | (34,481) | (22.7) | % | ||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest income (expense) | 1,314 | (519) | 1,833 | 353.2 | % | ||||||||||||||||||
Other expense | (45) | (37) | (8) | (21.6) | % | ||||||||||||||||||
1,269 | (556) | 1,825 | 328.2 | % | |||||||||||||||||||
Income from operations before income taxes | 118,995 | 151,651 | (32,656) | (21.5) | % | ||||||||||||||||||
Provision for income taxes | 25,615 | 34,601 | (8,986) | (26.0) | % | ||||||||||||||||||
Net income | $ | 93,380 | $ | 117,050 | $ | (23,670) | (20.2) | % | |||||||||||||||
% of revenue | |||||||||||||||||||||||
Gross profit | 72.0 | % | 71.9 | % | |||||||||||||||||||
Selling, general, and administrative costs | 58.7 | % | 59.8 | % | |||||||||||||||||||
Income from operations | 13.4 | % | 12.1 | % | |||||||||||||||||||
2023 | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
July 1 - July 31 | 1,146 | 94.54 | — | 1,323,568 | ||||||||||||||||||||||
August 1 - August 31 | 17 | 84.40 | — | 1,323,568 | ||||||||||||||||||||||
September 1 - September 30 | 23 | 77.56 | — | 1,323,568 |
Exhibit Number | Description of Exhibit | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | The following financial statements from Medifast, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 filed November 6, 2023, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Income, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Changes in Stockholders’ Equity, and (vi) Notes to the Condensed Consolidated Financial Statements (filed herewith). | |||||||
104 | Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
By: | /s/ DANIEL R. CHARD | |||||||
Daniel R. Chard | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Dated: | November 6, 2023 | |||||||
/s/ JAMES P. MALONEY | ||||||||
James P. Maloney | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) | ||||||||
Dated: | November 6, 2023 |
Date: | November 6, 2023 | /s/ Daniel R. Chard | ||||||
Daniel R. Chard | ||||||||
Chief Executive Officer |
Date: | November 6, 2023 | /s/ James P. Maloney | ||||||
James P. Maloney | ||||||||
Chief Financial Officer |
By: | /s/ DANIEL R. CHARD | |||||||
Daniel R. Chard | ||||||||
Chief Executive Officer | ||||||||
November 6, 2023 | ||||||||
/s/ JAMES P. MALONEY | ||||||||
James P. Maloney | ||||||||
Chief Financial Officer | ||||||||
November 6, 2023 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Revenue | $ 235,869 | $ 390,398 | $ 881,039 | $ 1,261,332 |
Cost of sales | 58,492 | 107,549 | 246,558 | 354,515 |
Gross profit | 177,377 | 282,849 | 634,481 | 906,817 |
Selling, general, and administrative | 151,868 | 234,693 | 516,755 | 754,610 |
Income from operations | 25,509 | 48,156 | 117,726 | 152,207 |
Other income (expense) | ||||
Interest income (expense) | 1,033 | (261) | 1,314 | (519) |
Other income (expense) | 7 | (17) | (45) | (37) |
Total other income (expense) | 1,040 | (278) | 1,269 | (556) |
Income from operations before income taxes | 26,549 | 47,878 | 118,995 | 151,651 |
Provision for income taxes | 3,418 | 11,723 | 25,615 | 34,601 |
Net income | $ 23,131 | $ 36,155 | $ 93,380 | $ 117,050 |
Earnings per share | ||||
Basic (in usd per share) | $ 2.12 | $ 3.30 | $ 8.58 | $ 10.37 |
Diluted (in usd per share) | $ 2.12 | $ 3.27 | $ 8.55 | $ 10.30 |
Weighted average shares outstanding | ||||
Basic (in shares) | 10,892 | 10,964 | 10,881 | 11,290 |
Diluted (in shares) | 10,933 | 11,042 | 10,925 | 11,369 |
Cash dividends declared per share (in usd per share) | $ 1.65 | $ 1.64 | $ 4.95 | $ 4.92 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 23,131 | $ 36,155 | $ 93,380 | $ 117,050 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation | 27 | 123 | 125 | 300 |
Unrealized losses on investment securities | (9) | 0 | (9) | (21) |
Other comprehensive income, net of tax | 18 | 123 | 116 | 279 |
Comprehensive income | $ 23,149 | $ 36,278 | $ 93,496 | $ 117,329 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 10,892,000 | 10,928,000 |
Common stock, outstanding (in shares) | 10,892,000 | 10,873,000 |
Treasury stock at cost (in shares) | 0 | 54,000 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The accompanying unaudited condensed consolidated financial statements of Medifast, Inc. and its wholly-owned subsidiaries (“Medifast,” the “Company,” “we,” “us,” or “our”) included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and notes that are normally required by GAAP have been condensed or omitted. However, in the opinion of management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair presentation of the financial position and results of operations have been included and management believes the disclosures that are made are adequate to make the information presented not misleading. The condensed consolidated balance sheet at December 31, 2022 has been derived from the 2022 audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“2022 Form 10-K”). The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results that may be expected for the fiscal year ending December 31, 2023. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, which are included in the 2022 Form 10-K. Presentation of Financial Statements - The unaudited condensed consolidated financial statements included herein include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Recently Issued Accounting Pronouncements - The Company has not adopted any new accounting standards during the nine months ended September 30, 2023. There are no recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial position, results of operations, cash flows, or disclosures.
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consist principally of raw materials, packaging, non-food finished goods and finished packaged meal replacements held in the Company’s warehouses and outsourced distribution centers. Inventories are stated at the lower of cost or net realizable value, utilizing the first-in, first-out method. The cost of finished goods includes the cost of raw materials, packaging supplies, direct and indirect labor and other indirect manufacturing costs. On a quarterly basis, management reviews inventories for unsalable or obsolete inventories. Inventories consisted of the following (in thousands):
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share (“EPS”) computations are calculated utilizing the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of shares of the Company’s common stock outstanding adjusted for the effect of dilutive common stock equivalents. The following table sets forth the computation of basic and diluted EPS (in thousands, except per share data):
The calculation of diluted EPS excluded 13 thousand and 10 thousand antidilutive restricted stock awards for the three months ended September 30, 2023 and 2022, respectively, and 15 thousand and 3 thousand antidilutive restricted stock awards for the nine months ended September 30, 2023 and 2022, respectively. EPS is computed independently for each of the periods presented above, and accordingly, the sum of the quarterly earnings per common share may not equal the year-to-date total computed.
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SHARE-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Stock Options The Company has issued non-qualified and incentive stock options to employees and non-employee directors. The fair value of these options are estimated on the date of grant using the Black-Scholes option pricing model, which requires estimates of the expected term of the option, the risk-free interest rate, the expected volatility of the price of the Company’s common stock, and dividend yield. Options outstanding as of September 30, 2023 generally vested over a period of 3 years and expire 10 years from the date of grant. The exercise price of these options ranges from $26.52 to $66.68. Due to the Company’s lack of option exercise history on the date of grant, the expected term is calculated using the simplified method defined as the midpoint between the vesting period and the contractual term of each option. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant that most closely corresponds to the expected term of the option. The expected volatility is based on the historical volatility of the Company’s common stock over the period of time equivalent to the expected term for each award. The dividend yield is computed as the annualized dividend rate at the grant date divided by the strike price of the stock option. For the nine months ended September 30, 2023 and 2022, the Company did not grant stock options. The following table is a summary of our stock option activity (in thousands, except per share data):
As of September 30, 2023, the weighted-average remaining contractual life for both the outstanding stock options and exercisable stock options was 3.8 years with an aggregate intrinsic value of $0.5 million. The compensation expense calculated under the fair value method for the nine months ended September 30, 2023 was less than $0.1 million and was fully recognized during the period. For the nine months ended September 30, 2023, the Company received $0.1 million in cash proceeds from the exercise of stock options. The total intrinsic value for stock options exercised during the nine months ended September 30, 2023 was $0.3 million. Restricted Stock The Company has issued restricted stock to employees and non-employee directors generally with vesting terms up to 5 years after the date of grant. The fair value of the restricted stock is equal to the market price of the Company’s common stock on the date of grant. Expense for restricted stock is amortized ratably over the vesting period. The following table summarizes our restricted stock activity (in thousands, except per share data):
The Company withheld approximately 10 thousand shares and 8 thousand shares of the Company’s common stock to cover minimum tax liability withholding obligations upon the vesting of shares of restricted stock for the nine months ended September 30, 2023 and 2022, respectively. The total fair value of restricted stock awards vested during the nine months ended September 30, 2023 and 2022 was $2.6 million and $3.4 million, respectively. Market and Performance-based Share Awards The Company has issued market and performance-based share awards to certain key executives who were granted deferred shares and may earn between 0% and 250% of the target number depending upon both the Company’s total stockholder return (“TSR”) and the Company’s performance against predetermined performance goals over a three-year performance period. Market and performance-based share awards that are tied to the Company’s TSR are valued using the Monte Carlo method and are recognized ratably as expense over the award’s performance period. The fair value of the performance-based share awards is equal to the market price of the Company’s common stock on the date of grant adjusted by expected level of achievement over the performance period. Expense for performance-based share awards is amortized ratably over the performance period. In the event that management determines that the Company will not reach the lower threshold of the predetermined performance goals established in the grant agreement, any previously recognized expense is reversed in the period in which such a determination is made. Management determined that the market and performance-based share awards granted in 2022 would not reach the lower threshold of the predetermined performance goal resulting in a $1.4 million decrease in the Company’s share-based compensation expense for the nine months ended September 30, 2023. The Company withheld approximately 22 thousand shares of the Company’s common stock to cover minimum tax liability withholding obligations upon the issuance of shares of market and performance-based share awards for the nine months ended September 30, 2023. No market and performance-based share awards vested and no shares were withheld to cover minimum tax liability withholding obligations for the nine months ended September 30, 2022. The total fair value of market and performance-based share awards issued during the nine months ended September 30, 2023 and 2022 was $5.7 million and $0, respectively. Share-based compensation expense for all types of awards granted is recorded in selling, general, and administrative expense in the accompanying Condensed Consolidated Statements of Income. The total expense during the three months ended September 30, 2023 and 2022 as follows (in thousands):
The total expense during the nine months ended September 30, 2023 and 2022 as follows (in thousands):
The total income tax benefit recognized in the accompanying Condensed Consolidated Statements of Income for stock awards was $0.3 million and $0.4 million for the three months ended September 30, 2023 and 2022, respectively, and $0.4 million and $1.2 million for the nine months ended September 30, 2023 and 2022, respectively. There was $9.3 million of total unrecognized compensation cost related to restricted stock awards as of September 30, 2023, which is expected to be recognized over a weighted-average period of 1.9 years. There was $5.1 million of unrecognized compensation costs related to the 113 thousand market and performance-based shares presented in the table above as of September 30, 2023, which is expected to be recognized over a weighted-average period of 1.8 years.
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LEASES |
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LEASES | LEASES Operating Leases The Company has operating leases for office and warehouse space and certain equipment. In certain of the Company’s lease agreements, the rental payments are adjusted periodically based on defined terms within the lease. The Company did not have any finance leases as of September 30, 2023 and 2022, respectively, or during the nine-month periods then ended, respectively. The Company’s leases relating to office and warehouse space have lease terms ranging from 19 months to 122 months. The Company’s leases relating to equipment have lease terms ranging from 24 months to 203 months, with certain of them having automatic renewal clauses. The Company’s warehouse agreements also contain non-lease components, in the form of payments towards variable logistics services and labor charges, which the Company is obligated to pay based on the services consumed by it. Such amounts are not included in the measurement of the lease liability but are recognized as expenses when they are incurred. The operating lease expense was $1.1 million and $1.7 million for the three months ended September 30, 2023 and 2022, respectively, and $3.9 million and $5.2 million for the nine months ended September 30, 2023 and 2022, respectively. Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):
As of September 30, 2023, the weighted average remaining lease term was 4 years, 2 months and the weighted average discount rate was 2.00%. The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2023 (in thousands):
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ACCUMULATED OTHER COMPREHENSIVE INCOME |
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ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table sets forth the components of accumulated other comprehensive income, net of tax where applicable (in thousands):
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FINANCIAL INSTRUMENTS |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Certain financial assets and liabilities are accounted for at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs used to measure fair value: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. The following tables present the Company’s cash and financial assets that are measured at fair value on a recurring basis for each of the hierarchy levels (in thousands):
The Company had no realized gain or loss for the three and nine months ended September 30, 2023 and 2022.
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DEBT |
9 Months Ended |
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Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Agreement On April 13, 2021, the Company and certain of its subsidiaries (collectively, the “Guarantors”) entered into a credit agreement (the “Credit Agreement”) among the Company, the Guarantors, the lenders party thereto and Citibank, N.A., in its capacity as administrative agent. On May 31, 2022, the Credit Agreement was amended to increase the borrowing capacity and convert the interest rate to be based on Secured Overnight Financing Rate (“SOFR”), from London Inter-Bank Offered Rate (LIBOR) (the “Amended Credit Agreement”). The Amended Credit Agreement provides for a $225.0 million senior secured revolving credit facility with a $20.0 million letter of credit sublimit. The Amended Credit Agreement also provides for an uncommitted incremental facility that permits the Company, subject to certain conditions, to increase the senior secured revolving credit facility by up to $100.0 million. The Amended Credit Agreement matures on April 13, 2026. The Company’s obligations under the Amended Credit Agreement are guaranteed by the Guarantors. The obligations of the Company and the Guarantors are secured by first-priority liens on substantially all of the assets of the Company and the Guarantors, subject to certain exceptions. Under the Amended Credit Agreement, the Company will pay to the administrative agent for the account of each revolving lender a commitment fee on a quarterly basis based on amounts committed but unused under the revolving facility from 0.20% to 0.40% per annum depending on the Company’s Total Net Leverage Ratio (as defined in the Amended Credit Agreement). The Company is also obligated to pay the administrative agent customary fees for credit facilities of this size and type. Revolving borrowings under the Amended Credit Agreement bear interest at a rate per annum equal to (i) the Term SOFR Rate for the interest period plus the Applicable Rate (as defined in the Amended Credit Agreement) based on the Company’s Total Net Leverage Ratio or (ii) the Alternate Base Rate (as defined in the Amended Credit Agreement) as in effect from time to time plus the Applicable Rate based on the Company’s Total Net Leverage Ratio. As of September 30, 2023, the Applicable Rate for Term SOFR Loans is 1.25% per annum and the Applicable Rate for ABR Loans is 0.25% per annum. SOFR based loans also include a Credit Spread Adjustment based on the duration of the borrowing. The Amended Credit Agreement contains affirmative and negative covenants customarily applicable to senior secured credit facilities, including covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries, subject to negotiated exceptions, to incur additional indebtedness and additional liens on their assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments and change the nature of their businesses. The Amended Credit Agreement also contains customary events of default, subject to thresholds and grace periods, including, among others, payment default, covenant default, cross default to other material indebtedness and judgment default. In addition, the Amended Credit Agreement requires the Company to maintain a Total Net Leverage Ratio of no more than 2.75 to 1.00 and an Interest Coverage Ratio of at least 3.50 to 1.00. As of September 30, 2023 and December 31, 2022, the Company had no borrowings outstanding under the Amended Credit Agreement and was in compliance with all covenants.
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ACCELERATED SHARE REPURCHASE ("ASR") PROGRAM |
9 Months Ended |
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Sep. 30, 2023 | |
Equity [Abstract] | |
ACCELERATED SHARE REPURCHASE ("ASR") PROGRAM | ACCELERATED SHARE REPURCHASE (“ASR”) PROGRAMIn the second quarter of fiscal 2022, the Company entered into an ASR agreement with JPMorgan Chase, National Association ("JPMorgan Chase") to purchase shares of its common stock from JPMorgan Chase for an aggregate purchase price of $100.0 million. Pursuant to the ASR program, the Company received an initial delivery of approximately 480 thousand shares of common stock based on the closing price of the common stock on May 31, 2022. Approximately 91 thousand additional shares of the Company's common stock were delivered upon termination of the agreement on August 8, 2022. The final number of shares delivered to the Company under the ASR agreement was based on the average of the daily volume-weighted average trading prices of the Company’s common stock during the term of the ASR program, less a discount. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The accompanying unaudited condensed consolidated financial statements of Medifast, Inc. and its wholly-owned subsidiaries (“Medifast,” the “Company,” “we,” “us,” or “our”) included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and notes that are normally required by GAAP have been condensed or omitted. However, in the opinion of management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair presentation of the financial position and results of operations have been included and management believes the disclosures that are made are adequate to make the information presented not misleading. The condensed consolidated balance sheet at December 31, 2022 has been derived from the 2022 audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“2022 Form 10-K”). The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results that may be expected for the fiscal year ending December 31, 2023. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, which are included in the 2022 Form 10-K.
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Presentation of Financial Statements | Presentation of Financial Statements - The unaudited condensed consolidated financial statements included herein include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements - The Company has not adopted any new accounting standards during the nine months ended September 30, 2023. There are no recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial position, results of operations, cash flows, or disclosures. |
INVENTORIES (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following (in thousands):
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EARNINGS PER SHARE (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS (in thousands, except per share data):
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SHARE-BASED COMPENSATION (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table is a summary of our stock option activity (in thousands, except per share data):
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Schedule of Restricted Stock Activity | The following table summarizes our restricted stock activity (in thousands, except per share data):
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Schedule of Share-based Compensation Expense | The total expense during the three months ended September 30, 2023 and 2022 as follows (in thousands):
The total expense during the nine months ended September 30, 2023 and 2022 as follows (in thousands):
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LEASES (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):
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Schedule of Maturity of Company's Operating Lease Liabilities | The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2023 (in thousands):
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ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | The following table sets forth the components of accumulated other comprehensive income, net of tax where applicable (in thousands):
|
FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Financial Assets Measured at Fair Value on a Recurring Basis | The following tables present the Company’s cash and financial assets that are measured at fair value on a recurring basis for each of the hierarchy levels (in thousands):
|
INVENTORIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,491 | $ 12,670 |
Packaging | 2,269 | 3,611 |
Non-food finished goods | 4,426 | 8,738 |
Finished goods | 49,558 | 97,675 |
Reserve for obsolete inventory | (6,517) | (3,838) |
Total | $ 58,227 | $ 118,856 |
EARNINGS PER SHARE - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Numerator: | ||||||||
Net income | $ 23,131 | $ 30,280 | $ 39,968 | $ 36,155 | $ 39,113 | $ 41,781 | $ 93,380 | $ 117,050 |
Denominator: | ||||||||
Weighted average shares of common stock outstanding (in shares) | 10,892 | 10,964 | 10,881 | 11,290 | ||||
Effect of dilutive common stock equivalents (in shares) | 41 | 78 | 44 | 79 | ||||
Weighted average shares of common stock outstanding (in shares) | 10,933 | 11,042 | 10,925 | 11,369 | ||||
Earnings per share - basic (in usd per share) | $ 2.12 | $ 3.30 | $ 8.58 | $ 10.37 | ||||
Earnings per share - diluted (in usd per share) | $ 2.12 | $ 3.27 | $ 8.55 | $ 10.30 |
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Restricted Stock | ||||
Anti-dilutive awards (in shares) | 13 | 10 | 15 | 3 |
SHARE-BASED COMPENSATION - Stock Options Activity (Details) - $ / shares shares in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Awards | ||
Outstanding at beginning of period (in shares) | 33 | 33 |
Exercised (in shares) | (4) | 0 |
Outstanding at end of the period (in shares) | 29 | 33 |
Exercisable at end of the period (in shares) | 29 | 28 |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (in usd per share) | $ 54.98 | $ 54.98 |
Exercised (in usd per share) | 27.18 | 0 |
Outstanding at beginning of period (in usd per share) | 58.65 | 54.98 |
Exercisable at end of the period (in usd per share) | $ 58.65 | $ 52.76 |
SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock - $ / shares shares in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Shares | ||
Outstanding at beginning of period (in shares) | 60 | 44 |
Granted (in shares) | 86 | 38 |
Vested (in shares) | (25) | (19) |
Forfeited (in shares) | (5) | (1) |
Outstanding at end of period (in shares) | 116 | 62 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of period (in usd per share) | $ 188.11 | $ 183.51 |
Granted (in usd per share) | 97.96 | 176.60 |
Vested (in usds per share) | 169.46 | 156.16 |
Forfeited (in usd per share) | 142.11 | 186.53 |
Outstanding at beginning of period (in usd per share) | $ 127.57 | $ 187.83 |
LEASES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 1.1 | $ 1.7 | $ 3.9 | $ 5.2 |
Weighted average remaining lease term | 4 years 2 months | 4 years 2 months | ||
Weighted average discount rate (as a percent) | 2.00% | 2.00% | ||
Minimum | Operating Lease Arrangement for Real Estate | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in months) | 19 months | 19 months | ||
Minimum | Operating Lease Arrangement for Equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in months) | 24 months | 24 months | ||
Maximum | Operating Lease Arrangement for Real Estate | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in months) | 122 months | 122 months | ||
Maximum | Operating Lease Arrangement for Equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in months) | 203 months | 203 months |
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||
Operating cash flow used in operating leases | $ 4,838 | $ 5,413 |
Right-of-use assets obtained in exchange for lease obligations | $ 753 | $ 103 |
LEASES - Future Minimum Lease Commitments (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 (excluding the nine months ended September 30, 2023) | $ 1,435 |
2024 | 5,955 |
2025 | 6,095 |
2026 | 4,438 |
2027 | 2,553 |
Thereafter | 2,858 |
Total lease payments | 23,334 |
Less: imputed interest | (990) |
Total | $ 22,344 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation | $ 150 | $ 24 |
Unrealized net losses on investment securities | (9) | 0 |
Accumulated other comprehensive (loss)/income | $ 141 | $ 24 |
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Investments, All Other Investments [Abstract] | ||||
Realized gain or loss | $ 0 | $ 0 | $ 0 | $ 0 |
DEBT (Details) - Credit Agreement |
9 Months Ended | ||
---|---|---|---|
Apr. 13, 2021
USD ($)
|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Debt Instrument [Line Items] | |||
Maximum total net leverage ratio | 2.75 | ||
Minimum interest coverage ratio | 3.50 | ||
Outstanding borrowings | $ 0 | $ 0 | |
SOFR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.25% | ||
Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 0.25% | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee (as a percent) | 0.20% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee (as a percent) | 0.40% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 225,000,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 20,000,000 | ||
Uncommitted Incremental Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 |
ACCELERATED SHARE REPURCHASE ("ASR") PROGRAM (Details) - USD ($) shares in Thousands |
Aug. 08, 2022 |
May 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Equity [Abstract] | |||
Repurchase amount | $ 100,000,000 | ||
Initial amount received (in shares) | 91 | 480 |
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