Medifast (MED) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	MEDIFAST INC
Entity Central Index Key	910,329
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,930,133

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 63,532	$ 52,436
Accounts receivable-net of allowance for sales returns and doubtful accounts of $456 and $449 at June 30, 2017 and December 31, 2016	914	1,387
Inventory	18,048	18,311
Investment securities	25,020	24,412
Income taxes, prepaid		1,249
Prepaid expenses and other current assets	3,210	3,502
Total current assets	110,724	101,297
Property, plant and equipment - net	18,505	19,753
Other assets	286	162
Long-term assets of discontinued operations		4
TOTAL ASSETS	129,515	121,216
Current liabilities:
Accounts payable and accrued expenses	25,144	24,300
Current liabilities of discontinued operations		121
Total current liabilities	25,144	24,421
Other liabilities:
Deferred tax liabilities	196	779
Total liabilities	25,340	25,200
Stockholders' Equity:
Common stock; par value $.001 per share; 20,000 shares authorized; 12,124 and 12,027 issued and 11,930 and 11,871 outstanding at June 30, 2017 and December 31, 2016, respectively	12	12
Additional paid-in capital	4,630	2,672
Accumulated other comprehensive income/(loss)	14	(165)
Retained earnings	99,519	93,497
Total stockholders' equity	104,175	96,016
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 129,515	$ 121,216

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for sales returns and doubtful accounts	$ 456	$ 449
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, issued	12,124,000	12,027,000
Common stock, outstanding	11,930,000	11,871,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 75,729	$ 71,144	$ 146,351	$ 143,489
Cost of sales	18,118	17,919	35,848	37,070
Gross profit	57,611	53,225	110,503	106,419
Selling, general, and administrative	46,301	48,201	90,584	95,127
Income from operations	11,310	5,024	19,919	11,292
Other income (expense)
Interest and dividend income, net	141	65	204	180
Other income (expense)	(3)	3	36	(21)
Nonoperating income (expense)	138	68	240	159
Income from operations before income taxes	11,448	5,092	20,159	11,451
Provision for income taxes	3,864	1,695	6,430	3,794
Net income	$ 7,584	$ 3,397	$ 13,729	$ 7,657
Basic earnings (loss) per share
Earnings per share - basic	$ 0.64	$ 0.29	$ 1.15	$ 0.65
Diluted earnings (loss) per share
Earnings per share - diluted	$ 0.63	$ 0.29	$ 1.14	$ 0.64
Weighted average shares outstanding -
Basic	11,929	11,811	11,915	11,817
Diluted	12,056	11,884	12,044	11,891
Cash dividends declared per share	$ 0.32	$ 0.25	$ 0.64	$ 0.50

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Other Comprehensive Income [Abstract]
Net income	$ 7,584	$ 3,397	$ 13,729	$ 7,657
Other comprehensive income, net of tax
Foreign currency translation	4	2	6	14
Change in fair value of marketable securities	39	36	163	107
Adjustment for net losses realized and included in net income		56	10	65
Total change in unrealized gains on marketable securities	39	92	173	172
Other comprehensive income	43	94	179	186
Comprehensive income	$ 7,627	$ 3,491	$ 13,908	$ 7,843

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid- In Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2016	$ 12	$ 2,672	$ (165)	$ 93,497	$ 96,016
Balance (in shares) at Dec. 31, 2016	12,027
Options exercised by executives and directors		568			568
Options exercised by executives and directors (in shares)	21
Share-based compensation		2,215			2,215
Share-based compensation (in shares)	95
Net shares repurchased for employee taxes		(825)			(825)
Net shares repurchased for employee taxes (in shares)	(19)
Net income				13,729	13,729
Other comprehensive income (loss)			179		179
Cash dividends declared to stockholders				(7,707)	(7,707)
Balance at Jun. 30, 2017	$ 12	$ 4,630	$ 14	$ 99,519	$ 104,175
Balance (in shares) at Jun. 30, 2017	12,124

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 13,729	$ 7,657
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and amortization	2,116	2,996
Share-based compensation	2,215	1,192
Gain on sale of disposal of property, plant and equipment	93	(88)
Realized loss on investment securities, net	57	15
Amortization of premium on investment securities	374	62
Deferred income taxes	(700)	(3,027)
Impairment of fixed assets		6,083
Changes in assets and liabilities:
Accounts receivable	477	6
Inventory	263	1,971
Income taxes	1,979	2,905
Prepaid expenses and other current assets	292	(587)
Other assets	(124)	40
Accounts payable and accrued expenses	(22)	(229)
Net cash flow provided by operating activities- continuing operations	20,749	18,996
Net cash flow used in operating activities- discontinued operations		(272)
Net cash dlow provided by operating activities	20,749	18,724
Cash Flow from Investing Activities:
Sale of investment securities	2,039	26,741
Purchase of investment securities	(2,788)	(22,432)
Sale of property and equipment	59	655
Purchase of property and equipment	(1,020)	(753)
Net cash flow (used in) provided by investing activities	(1,710)	4,211
Cash Flow from Financing Activities:
Repayment of capital leases		(108)
Options exercised by executives and directors	568	299
Excess tax benefits from share-based compensation		105
Net shares repurchased for employee taxes	(825)	(743)
Cash dividends paid to stockholders	(7,692)	(5,929)
Net cash used in financing activities	(7,949)	(6,376)
Foreign currency impact	6	14
Increase in cash and cash equivalents	11,096	16,573
Cash and cash equivalents - beginning of the period	52,436	42,037
Cash and cash equivalents - end of period	63,532	58,610
Supplemental disclosure of cash flow information:
Income taxes paid	5,064	3,661
Dividends declared included in accounts payable	$ 4,052	$ 3,100

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation -- The accompanying unaudited condensed consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), for interim information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. 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, 2016 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of results that may be expected for the fiscal year ending December 31, 2017. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the 2016 audited financial statements and notes thereto, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (“2016 Form 10-K”).  Presentation of Financial Statements -- The unaudited condensed consolidated financial statements included herein include the accounts of Medifast, Inc. (the “Company”) and its wholly-owned subsidiaries. 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. Revenue Recognition - Revenue is recognized net of discounts, rebates, promotional adjustments, price adjustments, and estimated returns and upon transfer of title and risk to the customer which occurs at shipping (F.O.B. terms). Upon shipment, the Company has no further performance obligations and collection is reasonably assured as the majority of sales are paid prior to shipping. Accounting Pronouncements Adopted in 2017 -- ASU 2016-09 Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires, among its other provisions, that excess tax benefits (which represent the excess of actual tax benefits received at the date of vesting or settlement over the benefits recognized over the vesting period or upon issuance of share-based payments) and tax deficiencies (which represent the amount by which actual tax benefits received at the date of vesting or settlement is lower than the benefits recognized over the vesting period or upon issuance of share-based payments) be recorded in the income statement as an increase or decrease in income taxes when the awards vest or are settled. This is in comparison to the prior requirement that these excess tax benefits be recognized in additional paid-in capital and these tax deficiencies be recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity. The new guidance is effective for the first quarter of our fiscal year ending December 31, 2017. As a result of this adoption: ·  We recognized discrete tax benefits of $12 thousand and $321 thousand in the provision for income taxes line item of our condensed consolidated statements of income for the three and six months ended June 30, 2017, respectively, related to excess tax benefits upon vesting or settlement in that period. · We elected to adopt the cash flow presentation of the excess tax benefits prospectively, commencing with our cash flow statement for the three months ended March 31, 2017, where these benefits are classified along with other income tax cash flows as an operating activity. · We have elected to, account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period, rather than estimating the number of share-based awards expected to vest. · At this time, we have not changed our policy on statutory withholding requirements and will continue to allow an employee to withhold at the minimum statutory withholding requirements. Amounts paid by us to taxing authorities when directly withholding shares associated with employees’ income tax withholding obligations are classified as a financing activity in our cash flow statement for the three and six months ended June 30, 2017 and 2016. · We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three and six months ended June 30, 2017.  Recent Accounting Pronouncements – We have considered all new accounting pronouncements and have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition, or cash flows, based on current information, except for: ASU 2016-02, Leases (Topic 842) requires the rights and obligations of all leased assets with a term greater than 12 months to be presented on the balance sheet. The pronouncement is effective for fiscal years beginning after December 15, 2018. Management is currently evaluating the effect that the provisions of ASU 2016-02 will have on the Company’s financial statements. ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10) : Recognition and Measurement of Financial Assets and Financial Liabilities, most notably requires the changes in fair value of equity investments to be recognized in net income. The pronouncement also requires the use of the exit price notion, the separate presentation of financial assets and liabilities by measurement category and form of asset, and the separate presentation in other comprehensive income of changes in fair value resulting from a change in the instrument-specific credit risk. The pronouncement is effective for fiscal years beginning after December 15, 2017. Based on the risk level of the Company’s investment portfolio, Management does not expect the pronouncement to have a material impact on the Company’s financial statements. ASU 2015-09, Revenue from Contracts with Customers (Topic 606) , requires the Company to recognize revenue for the transfer of goods or services to customers for the amount the Company expects to be entitled to receive in exchange for those goods or services. The Company will be required to identify the contract, identify the relevant performance obligations, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when the entity satisfies a performance obligation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2017. Management is evaluating the effect that the provisions of ASU 2015-09 will have on the Company’s financial statements .

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2017
Financial Instruments [Abstract]
Financial Instruments	2. 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 represent cash and the available-for-sale securities adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or investment securities (in thousands):    June 30, 2017  Cost Unrealized Gains Unrealized Losses Accrued Interest Estimated Fair Value Cash & Cash Equivalents Investment Securities   Cash $ 33,306 $ - $ - $ - $ 33,306 $ 33,306 $ -   Level 1:  Certificate of deposit 30,000 - - - 30,000 30,000 -  Money market accounts 226 - - - 226 226 -  Government & agency securities 4,056 - (36) 9 4,029 - 4,029  34,282 - (36) 9 34,255 30,226 4,029   Level 2:  Municipal bonds 20,784 - (71) 278 20,991 - 20,991   Total $ 88,372 $ - $ (107) $ 287 $ 88,552 $ 63,532 $ 25,020      December 31, 2016  Cost Unrealized Gains Unrealized Losses Accrued Interest Estimated Fair Value Cash & Cash Equivalents Investment Securities   Cash $ 52,005 $ - $ - $ - $ 52,005 $ 52,005 $ -   Level 1:  Money market accounts 431 - - - 431 431 -  Government & agency securities 2,655 - (48) 9 2,616 - 2,616  3,086 - (48) 9 3,047 431 2,616   Level 2:  Municipal bonds 21,836 - (348) 308 21,796 - 21,796   Total $ 76,927 $ - $ (396) $ 317 $ 76,848 $ 52,436 $ 24,412   The Company had a realized gain of $3 thousand and $13 thousand for the three months ended June 30, 2017 and 2016, respectively, and a realized loss of $57 thousand and $15 thousand for the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017 and 2016, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. The maturities of the Company’s investment securities generally range up to 5 years for municipal bonds and for government and agency securities.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventories [Abstract]
Inventories	3. INVENTORIES Inventories consist principally of packaged meal replacements held in the Company’s warehouses. Inventory is stated at the lower of cost or market, 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 inventory for unsalable or obsolete inventory. Inventories consisted of the following (in thousands):    June 30, 2017 December 31, 2016   Raw materials $ 5,115 $ 6,015  Packaging 1,067 1,202  Non-food finished goods 597 701  Finished goods 12,131 11,219  Reserve for obsolete inventory (862) (826)  $ 18,048 $ 18,311 

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	4. Equity  Issuance of Additional Common Stock  On May 18, 2017, the stockholders of the Company approved the Medifast, Inc. Amended and Restated 2012 Share Incentive Plan (the “Amended and Restated 2012 Plan”) that increased the number of shares of Common Stock by 600,000 , par value $.001 per share, which may be awarded under the Amended and Restated 2012 Plan. As June 30, 2017, the total number of shares authorized for issuance is 1,600,000 .  Stock Repurchase Plan  On June 14, 2017 the Company announced it had established a repurchase plan under Rule 10b5-1 (the “Company’s 10b5-1 Plan”) of the Securities Exchange Act of 1934, as amended, to facilitate the continued repurchase of shares of the Company’s common stock under its existing stock repurchase program. The Company may repurchase up to 850,000 shares of its common stock, which remain available under the outstanding repurchase authorization as of June 14, 2017. The Company’s 10b5-1 Plan permits repurchases commencing June 14, 2017, unless the plan is terminated earlier in accordance with its terms. There is no guarantee as to the exact number of shares of the Company’s common stock, if any, that will be purchased under the Company’s 10b5-1 Plan.  

Shared-based Compensation

Shared-based Compensation	6 Months Ended
	Jun. 30, 2017
Share-based Compensation [Abstract]
Shared-based Compensation	5. SHARE-BASED COMPENSATION Stock Options:  The Company has issued non-qualified and incentive stock options to employees and nonemployee 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 June 30, 2017 generally vest over a period of three years with an expiration term of ten years from the date of grant. The exercise price of these options ranges from $24.26 to $44.73 . Due to the Company’s lack of option exercise history, 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 which 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 weighted average input assumptions used were as follows:     Six months ended June 30,  2017 2016   Expected term (in years) 6 6  Risk-free interest rate 2.05% 1.11%  Expected volatility 38.33% 42.22%  Dividend yield 2.40% 3.56%   The following table is a summary of our stock option activity:     Six months ended June 30,  2017 2016  Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price  (shares in thousands)  Outstanding at beginning of period 129 $ 28.22 98 $ 28.17  Granted 38 44.73 50 27.99  Exercised (21) 27.38 (12) 25.64  Forfeited (16) 36.48 (6) 29.87  Outstanding at end of the period 130 $ 32.10 130 $ 28.22  Exercisable at end of the period 63 $ 28.15 49 $ 27.45  As of June 30, 2017, the weighted-average remaining contractual life was 8.22 years with an aggregate intrinsic value of $1.3 million for outstanding stock options and the weighted-average remaining contractual life was 7.43 years with an aggregate intrinsic value of $837 thousand for exercisable options.  The weighted-average grant date fair value of options granted during the six months ended June 30, 2017 and 2016 was $13.73 and $7.91 , respectively. The unrecognized compensation expense calculated under the fair value method for shares expected to vest as of June 30, 2017 was $631 thousand and is expected to be recognized over a weighted average period of 2.04 years. The Company received $568 thousand and $299 thousand in cash proceeds from the exercise of stock options during the six months ended June 30, 2017 and 2016, respectively. The total intrinsic value for options exercised during the six months ended June 30, 2017 and 2016 was $325 thousand and $69 thousand, respectively.  Restricted Stock: The Company has issued restricted stock to employees and nonemployee directors generally with vesting terms up to five years after the date of grant. The fair value 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 the restricted stock activity:     Six months ended June 30,  2017 2016  Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value  (shares in thousands)  Outstanding at beginning of period 215 $ 27.69 264 $ 26.38  Granted 44 44.73 15 27.68  Vested (58) 26.35 (65) 25.14  Forfeited (8) 35.23 (39) 26.43  Outstanding at end of the period 193 $ 31.66 175 $ 26.95 The total fair value of restricted stock awards vested during the six months ended June 30, 2017 and 2016 was $2.5 million and $1.9 million, respectively. The total costs of the options and restricted stock awards charged against income during the three ended June 30, 2017 and 2016 was $961 thousand and $668 thousand, respectively, and $1.7 million and $1.2 million during the six months ended June 30, 2017 and 2016, respectively. Also included for the three and six months ended June 30, 2017 was $297 thousand and $519 thousand in expense for 323,925 shares that will vest based on certain market and performance conditions. Included in share-based compensation for the three and six months ended June 30, 2016 is $137 thousand and $365 thousand for 59,375 shares of performance awards issuable to certain key employees based on achieving the 2016 financial plan that will vest on December 31, 2017. The total income tax benefit recognized in the condensed consolidated statements of income for restricted stock awards was $449 thousand and $273 thousand for the three months ended June 30, 2017 and 2016, respectively, and $1.1 million and $524 thousand for the six months ended June 30, 2017 and 2016, respectively. The total tax benefit recognized in additional paid-in capital upon vesting of restricted stock awards and exercise of stock options for the three months ended June 30, 2016 was $9 thousand and $105 thousand for the six months ended June 30, 2016. There was $3.8 million of total unrecognized compensation cost related to restricted stock awards as of June 30, 2017 and is expected to be recognized over a weighted-average period of 1.66 years. There was $2.9 million of unrecognized compensation cost related to the 323,925 market and performance award shares discussed above as of June 30, 2017 and is expected to be recognized over a weighted-average period of 2.50 years.

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 2017
Business Segments [Abstract]
Business Segments	6. BUSINESS SEGMENTS  Operating segments are components of an enterprise for which separate financial information is available that is regularly reviewed by the chief operating decision maker in determining how to allocate resources and in assessing performance. The consolidated operating profit of the Company is reviewed by the chief operating decision maker as a single segment and sales are reviewed at the business unit level. In July 2017, the Take Shape For Life® business was rebranded to OPTAVIA TM (“Optavia”).  The following table presents sales by business segment (in thousands):     Three months ended June 30, Six months ended June,  2017 2016 2017 2016   Optavia $ 63,546 $ 57,411 $ 121,501 $ 114,085  Medifast Direct 8,575 9,324 17,523 20,251  MWCC- Franchise 3,378 4,109 6,836 8,355  Medifast Wholesale 230 300 491 798  Revenue $ 75,729 $ 71,144 $ 146,351 $ 143,489  

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	7. EARNING PER SHARE Basic earnings per share (“EPS”) computations are calculated utilizing the weighted average number of shares of common stock outstanding during the periods presented. Diluted EPS is calculated utilizing the weighted average number of shares of 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):    Three months ended June 30, Six months ended June 30,  2017 2016 2017 2016   Numerator:  Net income $ 7,584 $ 3,397 $ 13,729 $ 7,657   Denominator:  Weighted average shares of common stock outstanding 11,929 11,811 11,915 11,817  Effect of dilutive common stock equivalents 127 73 129 74  Weighted average shares of common stock outstanding 12,056 11,884 12,044 11,891   Earnings per share - basic $ 0.64 $ 0.29 $ 1.15 $ 0.65   Earnings per share - diluted $ 0.63 $ 0.29 $ 1.14 $ 0.64  The calculation of diluted earnings per share excluded 10,080 and 87,986 antidilutive options outstanding for the three months ended June 30, 2017 and 2016, respectively, and 8,278 and 98,000 antidilutive options outstanding for the six months ended June 30, 2017 and 2016, respectively. EPS is computed independently for each of the quarters presented; accordingly, the sum of the quarterly earnings per common share may not equal the year-to-date total computed.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Abstract]
Accumulated Other Comprehensive Income (Loss)	8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table sets forth the components of accumulated other comprehensive income (loss), net of tax where applicable (in thousands):     June 30, 2017 December 31, 2016   Foreign currency translation $ 77 $ 71  Unrealized losses on marketable securities (63) (236)  Accumulated other comprehensive income (loss) $ 14 $ (165) 

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
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.
Revenue Recognition	Revenue Recognition - Revenue is recognized net of discounts, rebates, promotional adjustments, price adjustments, and estimated returns and upon transfer of title and risk to the customer which occurs at shipping (F.O.B. terms). Upon shipment, the Company has no further performance obligations and collection is reasonably assured as the majority of sales are paid prior to shipping.
Share-Based Compensation	ASU 2016-09 Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires, among its other provisions, that excess tax benefits (which represent the excess of actual tax benefits received at the date of vesting or settlement over the benefits recognized over the vesting period or upon issuance of share-based payments) and tax deficiencies (which represent the amount by which actual tax benefits received at the date of vesting or settlement is lower than the benefits recognized over the vesting period or upon issuance of share-based payments) be recorded in the income statement as an increase or decrease in income taxes when the awards vest or are settled. This is in comparison to the prior requirement that these excess tax benefits be recognized in additional paid-in capital and these tax deficiencies be recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement. The new guidance also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows rather than, as previously required, a financing activity. The new guidance is effective for the first quarter of our fiscal year ending December 31, 2017. As a result of this adoption: ·  We recognized discrete tax benefits of $12 thousand and $321 thousand in the provision for income taxes line item of our condensed consolidated statements of income for the three and six months ended June 30, 2017, respectively, related to excess tax benefits upon vesting or settlement in that period. · We elected to adopt the cash flow presentation of the excess tax benefits prospectively, commencing with our cash flow statement for the three months ended March 31, 2017, where these benefits are classified along with other income tax cash flows as an operating activity. · We have elected to, account for forfeitures as they occur to determine the amount of compensation cost to be recognized in each period, rather than estimating the number of share-based awards expected to vest. · At this time, we have not changed our policy on statutory withholding requirements and will continue to allow an employee to withhold at the minimum statutory withholding requirements. Amounts paid by us to taxing authorities when directly withholding shares associated with employees’ income tax withholding obligations are classified as a financing activity in our cash flow statement for the three and six months ended June 30, 2017 and 2016. · We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the three and six months ended June 30, 2017. 
Recent Accounting Pronouncements	Recent Accounting Pronouncements – We have considered all new accounting pronouncements and have concluded that there are no new pronouncements that may have a material impact on our results of operations, financial condition, or cash flows, based on current information, except for: ASU 2016-02, Leases (Topic 842) requires the rights and obligations of all leased assets with a term greater than 12 months to be presented on the balance sheet. The pronouncement is effective for fiscal years beginning after December 15, 2018. Management is currently evaluating the effect that the provisions of ASU 2016-02 will have on the Company’s financial statements. ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10) : Recognition and Measurement of Financial Assets and Financial Liabilities, most notably requires the changes in fair value of equity investments to be recognized in net income. The pronouncement also requires the use of the exit price notion, the separate presentation of financial assets and liabilities by measurement category and form of asset, and the separate presentation in other comprehensive income of changes in fair value resulting from a change in the instrument-specific credit risk. The pronouncement is effective for fiscal years beginning after December 15, 2017. Based on the risk level of the Company’s investment portfolio, Management does not expect the pronouncement to have a material impact on the Company’s financial statements. ASU 2015-09, Revenue from Contracts with Customers (Topic 606) , requires the Company to recognize revenue for the transfer of goods or services to customers for the amount the Company expects to be entitled to receive in exchange for those goods or services. The Company will be required to identify the contract, identify the relevant performance obligations, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when the entity satisfies a performance obligation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2017. Management is evaluating the effect that the provisions of ASU 2015-09 will have on the Company’s financial statements

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Financial Instruments [Abstract]
Cash and Available for Sale Securities Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Value by Significant Investment Category	The following tables represent cash and the available-for-sale securities adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or investment securities (in thousands):    June 30, 2017  Cost Unrealized Gains Unrealized Losses Accrued Interest Estimated Fair Value Cash & Cash Equivalents Investment Securities   Cash $ 33,306 $ - $ - $ - $ 33,306 $ 33,306 $ -   Level 1:  Certificate of deposit 30,000 - - - 30,000 30,000 -  Money market accounts 226 - - - 226 226 -  Government & agency securities 4,056 - (36) 9 4,029 - 4,029  34,282 - (36) 9 34,255 30,226 4,029   Level 2:  Municipal bonds 20,784 - (71) 278 20,991 - 20,991   Total $ 88,372 $ - $ (107) $ 287 $ 88,552 $ 63,532 $ 25,020      December 31, 2016  Cost Unrealized Gains Unrealized Losses Accrued Interest Estimated Fair Value Cash & Cash Equivalents Investment Securities   Cash $ 52,005 $ - $ - $ - $ 52,005 $ 52,005 $ -   Level 1:  Money market accounts 431 - - - 431 431 -  Government & agency securities 2,655 - (48) 9 2,616 - 2,616  3,086 - (48) 9 3,047 431 2,616   Level 2:  Municipal bonds 21,836 - (348) 308 21,796 - 21,796   Total $ 76,927 $ - $ (396) $ 317 $ 76,848 $ 52,436 $ 24,412  

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventories [Abstract]
Inventories	Inventories consisted of the following (in thousands):    June 30, 2017 December 31, 2016   Raw materials $ 5,115 $ 6,015  Packaging 1,067 1,202  Non-food finished goods 597 701  Finished goods 12,131 11,219  Reserve for obsolete inventory (862) (826)  $ 18,048 $ 18,311 

Shared-based Compensation (Tabl

Shared-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Share-based Compensation [Abstract]
Schedule of Assumptions Used	The weighted average input assumptions used were as follows:     Six months ended June 30,  2017 2016   Expected term (in years) 6 6  Risk-free interest rate 2.05% 1.11%  Expected volatility 38.33% 42.22%  Dividend yield 2.40% 3.56%  
Schedule of Share-based Compensation, Stock Options, Activity	The following table is a summary of our stock option activity:     Six months ended June 30,  2017 2016  Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price  (shares in thousands)  Outstanding at beginning of period 129 $ 28.22 98 $ 28.17  Granted 38 44.73 50 27.99  Exercised (21) 27.38 (12) 25.64  Forfeited (16) 36.48 (6) 29.87  Outstanding at end of the period 130 $ 32.10 130 $ 28.22  Exercisable at end of the period 63 $ 28.15 49 $ 27.45 
Restricted Stock Activity	The following table summarizes the restricted stock activity:     Six months ended June 30,  2017 2016  Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value  (shares in thousands)  Outstanding at beginning of period 215 $ 27.69 264 $ 26.38  Granted 44 44.73 15 27.68  Vested (58) 26.35 (65) 25.14  Forfeited (8) 35.23 (39) 26.43  Outstanding at end of the period 193 $ 31.66 175 $ 26.95 

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2017
Business Segments [Abstract]
Segment Information	The following table presents sales by business segment (in thousands):     Three months ended June 30, Six months ended June,  2017 2016 2017 2016   Optavia $ 63,546 $ 57,411 $ 121,501 $ 114,085  Medifast Direct 8,575 9,324 17,523 20,251  MWCC- Franchise 3,378 4,109 6,836 8,355  Medifast Wholesale 230 300 491 798  Revenue $ 75,729 $ 71,144 $ 146,351 $ 143,489  

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted EPS (in thousands, except per share data):    Three months ended June 30, Six months ended June 30,  2017 2016 2017 2016   Numerator:  Net income $ 7,584 $ 3,397 $ 13,729 $ 7,657   Denominator:  Weighted average shares of common stock outstanding 11,929 11,811 11,915 11,817  Effect of dilutive common stock equivalents 127 73 129 74  Weighted average shares of common stock outstanding 12,056 11,884 12,044 11,891   Earnings per share - basic $ 0.64 $ 0.29 $ 1.15 $ 0.65   Earnings per share - diluted $ 0.63 $ 0.29 $ 1.14 $ 0.64 

Accumulated Other Comprehensi22

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table sets forth the components of accumulated other comprehensive income (loss), net of tax where applicable (in thousands):     June 30, 2017 December 31, 2016   Foreign currency translation $ 77 $ 71  Unrealized losses on marketable securities (63) (236)  Accumulated other comprehensive income (loss) $ 14 $ (165) 

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Excess tax benefits upon vesting or settlement	$ 12	$ 321

Financial Instruments (Narrativ

Financial Instruments (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financial Instruments [Line Items]
Realized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments	$ 3	$ 13	$ (57)	$ (15)
US Treasury and Government Short-term Debt Securities [Member]
Financial Instruments [Line Items]
Available for Sale Securities Maturity Period			5 years

Financial Instruments (Cash and

Financial Instruments (Cash and Available for Sale Securities Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Value by Significant Investment Category) (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	$ 88,372	$ 76,927
Unrealized Losses	(107)	(396)
Accrued Interest	287	317
Estimated Fair Value	88,552	76,848
Cash & Cash Equivalents	63,532	52,436	$ 58,610	$ 42,037
Investment Securities	25,020	24,412
Cash [Member]
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	33,306	52,005
Estimated Fair Value	33,306	52,005
Cash & Cash Equivalents	33,306	52,005
Fair Value, Inputs, Level 1 [Member]
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	34,282	3,086
Unrealized Losses	(36)	(48)
Accrued Interest	9	9
Estimated Fair Value	34,255	3,047
Cash & Cash Equivalents	30,226	431
Investment Securities	4,029	2,616
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	30,000
Estimated Fair Value	30,000
Cash & Cash Equivalents	30,000
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	226	431
Estimated Fair Value	226	431
Cash & Cash Equivalents	226	431
Fair Value, Inputs, Level 1 [Member] | Government and Agency Securities [Member]
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	4,056	2,655
Unrealized Losses	(36)	(48)
Accrued Interest	9	9
Estimated Fair Value	4,029	2,616
Investment Securities	4,029	2,616
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Cash and Cash Equivalents and Marketable Securities [Line Items]
Cost	20,784	21,836
Unrealized Losses	(71)	(348)
Accrued Interest	278	308
Estimated Fair Value	20,991	21,796
Investment Securities	$ 20,991	$ 21,796

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventories [Abstract]
Raw Materials	$ 5,115	$ 6,015
Packaging	1,067	1,202
Non-food Finished Goods	597	701
Finished Goods	12,131	11,219
Reserve for Obsolete Inventory	(862)	(826)
Inventory	$ 18,048	$ 18,311

Equity (Narrative) (Details)

Equity (Narrative) (Details) - $ / shares	1 Months Ended
	Jun. 30, 2017	Jun. 14, 2017	May 18, 2017	Dec. 31, 2016
Equity [Abstract]
Increase in the number of shares authorized	600,000
Common stock, par value	$ 0.001		$ 0.001	$ 0.001
Shares authorized for issuance	1,600,000
Shares authorized for repurchase	850,000
Remaining shares authorized for repruchase		850,000

Shared-based Compensation (Narr

Shared-based Compensation (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			$ 2,215	$ 1,192
Weighted-average remaining contractual life of options oustanding			8 years 2 months 19 days
Aggregate intrinsic value of options outstanding	$ 1,300		$ 1,300
Weighted-average remaining contractual life of options exercisable			7 years 5 months 5 days
Aggregate intrinsic value of options exercisable	$ 837,000		$ 837,000
Proceeds from stock options exercised			$ 568	299
Share-based compensation arrangement shares to be issued	1,600,000		1,600,000
Intrinsic value of options exercised			$ 325	69
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total income tax benefit recognized related to restricted stock awards	$ 449	$ 273	1,100	$ 524
Employee service share based compensation nonvested awards total compensation cost not yet recognized	3,800		$ 3,800
Compensation cost recognition weighted average period			1 year 7 months 28 days
Award vesting period			5 years
Shares granted			44,000	15,000
Share-based compensation arrangement, fair value of awards vested			$ 2,500	$ 1,900
Shares vested in period			58,000	65,000
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee service share based compensation nonvested awards total compensation cost not yet recognized	631		$ 631
Compensation cost recognition weighted average period			2 years 15 days
Award vesting period			3 years
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit			$ 24.26
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value			13.73	$ 7.91
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit			$ 44.73
Proceeds from stock options exercised			$ 568	$ 299
Share based compensation arrangement by share based payment award options expiration term			10 years
Options and Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	961	668	$ 1,700	1,200
Adjustment to additional paid in capital, income tax effect from share-based compensation		9		105
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee service share based compensation nonvested awards total compensation cost not yet recognized	2,900		$ 2,900
Compensation cost recognition weighted average period			2 years 6 months
Share based compensation expense	$ 297	$ 137	$ 519	$ 365
Share-based compensation arrangement shares to be issued	323,925	59,375	323,925	59,375
Shares vested in period			323,925

Shared-based Compensation (Sche

Shared-based Compensation (Schedule of Assumptions Used) (Detail)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation [Abstract]
Expected term (in years)	6 years	6 years
Risk-free interest rate	2.05%	1.11%
Expected volatility	38.33%	42.22%
Dividend yield	2.40%	3.56%

Shared-based Compensation (Sc30

Shared-based Compensation (Schedule of Share Based Compensation Stock Options Activity) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-Average Remaining Contractual Life (Yrs), Outstanding	8 years 2 months 19 days
Weighted-Average Remaining Contractual Life (Yrs), Exerciseable	7 years 5 months 5 days
Aggregate Intrinsic Value, Outstanding	$ 1.3
Aggregate Intrinsic Value, Exerciseable	$ 837
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Outstanding Beginning Balance	129	98
Shares, Granted	38	50
Shares, Exercised	(21)	(12)
Shares, Forfeited	(16)	(6)
Shares, Outstanding Ending Balance	130	130
Shares, Exerciseable	63	49
Weighted-Average Exercise Price, Outstanding Beginning Balance	$ 28.22	$ 28.17
Weighted-Average Exercise Price, Granted	44.73	27.99
Weighted-Average Exercise Price, Exercised	27.38	25.64
Weighted-Average Exercise Price, Forfeited	36.48	29.87
Weighted-Average Exercise Price, Oustanding Ending Balance	32.10	28.22
Weighted-Average Exercise Price, Exerciseable	$ 28.15	$ 27.45

Shared-based Compensation (Summ

Shared-based Compensation (Summary of Restricted Stock Activity) (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Shares
Unvested at beginning of period	215	264
Granted	44	15
Vested	(58)	(65)
Forfeited	(8)	(39)
Unvested at end of period	193	175
Weighted-Average Grant Date Fair Value
Unvested at beginning of period	$ 27.69	$ 26.38
Granted	44.73	27.68
Vested	26.35	25.14
Forfeited	35.23	26.43
Unvested at end of period	$ 31.66	$ 26.95

Business Segments (Sales by Cha

Business Segments (Sales by Channel) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Net Revenue	$ 75,729	$ 71,144	$ 146,351	$ 143,489
Optavia [Member]
Segment Reporting Information [Line Items]
Net Revenue	63,546	57,411	121,501	114,085
Medifast Direct [Member]
Segment Reporting Information [Line Items]
Net Revenue	8,575	9,324	17,523	20,251
Franchise Weight Control Centers [Member]
Segment Reporting Information [Line Items]
Net Revenue	3,378	4,109	6,836	8,355
Medifast Wholesale [Member]
Segment Reporting Information [Line Items]
Net Revenue	$ 230	$ 300	$ 491	$ 798

Earnings per Share (Narrative)

Earnings per Share (Narrative) (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Anti-dilutive options	10,080	87,986	8,278	98,000

Earnings per Share (Earnings pe

Earnings per Share (Earnings per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net income	$ 7,584	$ 3,397	$ 13,729	$ 7,657
Denominator:
Weighted average shares of common stock outstanding	11,929	11,811	11,915	11,817
Effect of dilutive common stock equivalents	127	73	129	74
Weighted average shares of common stock outstanding	12,056	11,884	12,044	11,891
Basic earnings (loss) per share
Earnings per share	$ 0.64	$ 0.29	$ 1.15	$ 0.65
Diluted earnings (loss) per share
Earnings per share	$ 0.63	$ 0.29	$ 1.14	$ 0.64

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Abstract]
Foreign currency translation	$ 77	$ 71
Unrealized gains / (losses) on marketable securities	(63)	(236)
Accumulated other comprehensive loss	$ 14	$ (165)