NutriSystem Down 10% After Missing Earnings Estimates

Shares of NutriSystem

are down 10% after the company missed earnings estimates yesterday. The company reported financial results for the year ended December 31, 2011. The company also announced that the Board of Directors has declared a quarterly dividend of $0.175 per share, payable March 26, 2012, to shareholders of record as of March 15, 2012. For the year ended December 31, 2011: Revenues were $401.3 million, compared to $509.5 million in 2010. Operating income from continuing operations was $19.1 million, compared to $53.2 million in 2010. Net income was $12.3 million, compared to $33.6 million in 2010. Earnings per diluted share was $0.43, compared to $1.12 per diluted share in 2010. Adjusted EBITDA was $40.1 million, compared to $75.8 million in 2010. Cash, cash equivalents and marketable securities were $57.6 million at December 31, 2011. Joe Redling, Chairman and Chief Executive Officer said, “While our financial performance was disappointing in 2011, I'm proud of how the Nutrisystem team pulled together to improve execution in the tough, competitive and economic environment. We creatively used promotions throughout the year to energize consumer response and conversion. We carefully controlled costs all throughout the business, with reductions in general and administrative and marketing expenses. We reinvested in new products, new sales channels, new celebrity spokespersons, and new advertising and public relations strategies to return to growth in 2012. The net result was Nutrisystem remained profitable for the year with a solid bottom line, and generated significant cash flow to return cash to shareholders while still investing in growth initiatives for the future.”