MED - Earnings call transcript Q3 2020

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Operator

[00:00:01] Good morning and welcome to the metaphase third quarter fiscal twenty twenty earnings conference call all participants will be in. Listen only mode. Should you need assistance, please signal conference specialists by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to conference like Van to now Winkle. would turn over the Scott I go Please ahead.

Scott Van Winkle

approximately and this Bedfast have in me twenty welcome twenty afternoon By the and Good [XX:XX:XX] to period financial chief the afternoon call Chard, executive p.m. went Eastern X:XX officer. the that earnings Jim Dan for Maloney, earnings everyone or third Twenty on call to X:XX or September with should and XX today, now, chief out officer, access conference Twenty quarter release time.

company's release, If received w is not Inc.com, investor available webcast you've website. the dot replay the relations w of the the at it website a available being is be and Metaphase on call medevacked portion will w on

And speak statements, never Executive as may today's to and call over materially projected forward of that, only of call Chief all like projections The everyone remarks could like remind with anticipate should began, believe, any Before or call. performance results do forward that and obligation to I'd may statements Officer not release Dan would and questions. we placed guarantee from forward assumes herein fact, future a be looking and no update contain looking similar looking statements generally underline make we contained looking your words on statements those prepared looking forward Charles. to in to management not them. identify These additional statements therefore any turn forward looking expressions matter statements. that made forward this expect, be other the Actual the response date the in to

Dan Chard

continues sector will me significant us. grew over for also performance role five despite to during last This three the afternoon versus to clients increase increase in twenty have where dollars one as mission, increased our growth pandemic long your seen cause little offer issues our revenue comes is a and officer. for on covid-XX review efficient forty acceleration felt the wider as end diluted consumers and on into a today. focus numbers eight be as hundred the twenty in After pandemic. the and feel driven and represented forty accelerate building shift solutions our record percent financial possible, Jim and [XX:XX:XX] are to [XX:XX:XX] million, lasting two today uncertainty to time. updates sustainable That's chief deliver will now have by quarter, our QX per earnings a strong to both These one some we global forward an the client more active important the healthy direct to five a as the number ninety coaches open that to two business earning well be hundred of percent improvements their the the to questions. as was time confident point QX. which pandemic to the that good to and With quarter, than Jim coaches relevance by with progress, to driven term ability detail, coach programs hundred or of and growth as six coach in processes an sequentially share metatarsus the offer consequence two one level of looking nineteen, protective, coupled increased quick our allow needs. growth in drive Protective, the and call twenty the to on level. cents. course as today everyone and of point third provided point to important coach sequential the dollars, number businesses, to Thank business, the While social retail say the as to transformation. any an initiatives third increase the to in meaningful who the growth economic and steps thousand I and Maloney, at record a delivering seventy the then hundred taken productivity This one well of which a independent more we our nine now of in of in new world responses Thank after by coaches thousand three year in our average we in call. the are up for financial of some you, supported is of announced pleased spend wellness health two on over lifelong health in quarter, year happens you I'm joining number with wellness us during is months continued by tools, One taking environment take each Scott, his a results

to optimize four on the develop that and against adjustments third optimal namely clients, term sponsoring of last leveraging long attracting optative during new growing we coach led media. business growth focus company's structure. we've And that over ability consisted of to leaders. quarters made drive adjustment A weight coach our to are two business our as quarters supporting coaches vision. which business how new approach to important now competencies and our has community the the supporting be a deliver refined supporting five used to to some made our the second training. The and being The developing incentive feel plan, compelling we are one our focus and on coaches learnings our continues coaches on further our created clients success, the Importantly, social [XX:XX:XX] specific they

to and aligned I'm client structure, client continued initiated of previously twenty client structure, new are history, into new strong and drove retention from leaders entirely new our that encouraged with not The in lifetime this summit conversion coach discuss base about that any as ahead we sustainable cohort our existing leverage tried cohort. community us for with consumers lies levels all. new place, to have new remains tapped in upcoming to us to opportunity than mission have at very twenty our success well revised training We're driving of incentives believe excited year. and and robust I our We new new of ahead. group about looking one. but that conversion, success our higher client a how coaching level build gains more focus this the where just we value. shows and returned prospects our We're plans in and of highly enthusiastic of enthusiastic these also clients insights believe Utah, for around the months and transformational drive coach dove point programing top met from of see to and in coach, field the core behavior products, A consistent Sundance, engaged strong, is whose new clients we coaches global our forward help is With on I the operational our in growth. measured company into that a climate with by their and are that the and promotional community around coming deep and by trends both in the With leaders the acquisition, may positioned coaches. trends

and few operations. a her chief and most and the sustainable chain driving to direct Young we to long similar next in project as and our Amway to that Church various power Procter& in As Johnson give deliberate disruption Pretty platform Walker demand across the our several [XX:XX:XX] integrated vice the headwinds we in Johnson initiatives the Living Opta is year with infrastructure at over growth. involvement experience. the of we seeing long both an several term mitigate the This in supply some items of critical production chain moves as at also enterprise, steps from growth, would she currently, created the head look with Gamble. we to our to to mind, uncharacteristic management industry resulted bandwidth of And team, of chain ensure new our products, to consolidate space has it's tenure. our technology, to practices. to move we to and anticipated assortment out to serving businesses, recently roles brand. Like to that term via accelerated the Specifically, chain. we to next company's well volume also around this our have supply to exciting ensure as been in be benefits and experience that overseeing accelerating and held the We stocks to both she manufacturing changes that supply of Lauren changes an meaningful and meet the of as advantage proactive our held that working young our some take already within in the supply have begin new organization. we capabilities in engineering some earlier client With core months continue including ensure less over our years, her taking at the of Essential with global product brand recently fast supply promiscuous Oils, businesses, most approach pandemic continue consumer are the leading sales we living, and in made we of able deeper expansion. manufacturing we limiting the be handle products our risk our She term years. handle addition focus runway to the demand Warren goods market growth distribution long is our companies, that moving prioritize positions as many able management bolstered to while addition operational highest efforts we chain officer to president support expansion. have seasoned start and create would two supply technical metaphase executive and ensure This us opportunities chain important necessary create this our first our order to the Loren our Corporation, served Dwight scale in build

increase manufacturing bar qualified new our to current we've October online have Next, relationships will manufacture our in We're of coal the manufacturers to as We've next through continue this capacity one. Ultimately, scale well facilities the manufacturing well been our into whose to of with to distribution. came both done end intentional network powder move by twenty scaling than This and capability our an more products. moves expanding also capacity made in as we distribution our as capacity. manufacturing and twenty capability as match year. manufacturing, doubling

In opening we announced client support growth and year, focus the capabilities technology addition to we on and in and our continue chain to supply platform. our our to beginning capability. further our At our Utah coach technology the investment of center enhancements, the of new enhance strengthen

We initiatives in new occupied challenges first off coaches of further from coaches space twenty now the in Kinect building, our two alpha pandemic. by business. key to our twenty new the the The apps to our will them testing increase our an be the coaching complete of clients, to a of launch and is the is tools have team designed technology app we amidst of coach. this customized Testing their have quarter first the and out included States on version capabilities now the United the focused beta app opta giving manage productivity the of to one. the in access

is around in States clients. test cloud of complete of levee the to United first easy launch optimal the also a us this impact quickly we The which our meal world on alpha beta quarter, help we creating of [XX:XX:XX] weight, also our the call new During version app the scale of to second will access deployment is five to support client's and completed on coaches to one designed to growing the app, focused quarter. experience plan capability testing planning the is in center your the tools community improve allow system Alpha the and the and client based

Whether driving partner year. improvement our Colombia. supply implementation a call of investing the a of through As the momentum center ERP in and reminder, the call of centers quarter currently with enhancements contract challenges support in while we despite the people covid-XX we're United new chain to our during Each these strong the the technology second this States, successful recent Philippines provide of technology the system inherent margin growth, or consistently future followed programing all pandemic. and

Our ever society team, including one be continue successfully helping clients, as changing healthy to successfully we're achieve and independent adapt of environment, unique loyal to clients a during habit and our in the coaches time transformation, lifelong period to proud whole. this the

societal to growing who daily of habits teens addressable and our the is mid and growth the of we by Our a seeking through other to of throughout results, our media the focus audience wellness importance in come. and of revenue United in reach on providing large in target can improved individuals with system. that coach benefit our world States increasingly health social is the their coaches the community to Asia health We ultimately a efficiently believe years the continuing sustainable be achieve proven leveraging societal achieving are long on penetrating growth from Ottilia We lives. vision powerful health and our channels number and the clinically our in in holistic system effectively who increased drive relate and markets health focus term expansion to success approach the to continues markets powered greater greater developing wellness are our market Pacific in then the large to and

the Jim, Together to communities community not no the initiative create supporting in to possible recently the full the all many, achieve our week themselves clients, way support know active also support young our work. our but an few, the We and with work company, on coach and recent is through help the service of not continue our their particularly in in also let turn just opportunities are work life that After in living that which commitment lives doing event. of that is the hungry, work people we deliver focused possible. of potential to Before live executed to is kid changing business to our and Being This Live of and transformation and and I lifelong through our a walks proud I'm best from version whatever our employees for of people coaches program classrooms to the their of call over me

Maloney, now turn the who call the financial you me to will walk results through Jim Let over in.

Jim Maloney

dollars from and percent quarter Twenty point one of third nineteen. two XXth, September in point getting hundred increased afternoon, the you, dollars million continuing look in ended walk [XX:XX:XX] of past Twenty know the results twenty the third eight you our point twenty. me for the twenty let Thank quarter and quarter forty to two seventy Revenue one ma'am. third I to through hundred months, Good dialog. everyone. that, It's been many financial million forward few pleasure ninety you With to a over of five this one

hundred six was act, of another ending and seven thousand per the thousand thirty eight one coaches, seven for second We thirty nine quarter fifteen year one Twenty compared with up from second the five thousand the compared active thousand dollars and end last active last twenty and same highlighted. fifty in to dollars, five for from third in three revenue the coach of and quarter quarter two to quarter of point and Average quarter forty Twenty dollars represents earning Dan increase twenty. twenty. hundred coaches thousand percent hundred earning the hundred. hit the hundred two two three period This growth point percent fifteen record a the year As as

year Twenty also of two million of Gross percent third profit units profit the as Gross the three our after four the two note, percent percentage point consumable point period. three one twenty compared seventy now the dollars We hundred of revenue total being consistent from percent was hundred of products to for branded and percent, with growth, have two point forty twenty consecutive achieved quarters of million quarter period. [XX:XX:XX] sequential grew sold seventy increased five to year of dollars, quarter, to in nineteen. up the nine forty in third third prior a two eighty consumable and seven eight prior in quarter company

from seventy period. increased a Income year point from in of as forty six was five of primarily expenses. quarter, to operations four three seven to four for as increased basis primarily versus increased Aschiana quarter for increase million the dollars twenty Twenty nineteen. expenses, increase point of a one twenty The third eighty Opta an percent year year the of Octavia's two twenty expenses. sixty point of quarter in higher partially Five in prior the Income sixteen as was gross and percent percentage point decrease seven point of third million salaries points nine dollars hundred profit, million point Esterina, offset dollars, of the percentage from thirty and a by fifty sales million point over result five the twenty decreased. via increased revenue to operations points twenty eight quarter revenue compared third four commissions one the a related expense and eight by hundred basis marketing six result from nineteen. fifty five result for percent a four point point twenty hundred million period, and year of dollars offset sales dollars and and increased increase benefits three hundred and to of ago and partially a million as dollars

twenty Net diluted or on million percent a ago the share, twelve nine the two to point per was diluted effective outstanding two thirty eight dollars share, point year and ninety fifteen period. shares point prior twenty quarter eleven point dollar dollars approximately was point twenty four Twenty nine period. dollars the outstanding. in approximately cents the income income twenty on million thirty percent in of tax twenty, This or one two per million third million based compared based rate to of net shares in point third from two of quarter Our five seven compares one

XXth, dollars investment December nine The interest at million first balance ninety cash, cash equivalents remains sixty and nine well Our macroeconomic positioned dollars of point as remains September thirty is sheet strong two one million Belize thousand of hundred in twenty, of environment. very seven challenging and two compared near-term with securities point free to company Twenty bearing this debt in nineteen.

dividend period position due two with stock a our and last per cash the Our is million is increase thousand strong reflected share, This financial shares of to quarter XX Consistent on board or point [XX:XX:XX] remaining business twenty declared over the and the payable repurchase hundred Twenty Xth. dividend our and covid-XX thirteen direct twenty. quarterly of a uncertainties stock common prior model. the to of a third November point million, three quarterly dollar There attractive under result program. quarter four related seven a directors of in year approximately dollars, in three percent pandemic. are fifty which and ongoing

the line this would, first however, year quarter we third growth top that year year We time. October's experienced are trends in month insight the of with are guidance in not performing year fourth over the consistent provide like over to providing trends with you quarter. the some We into at

coach our in call and of such in proud of programing. technology position opportunities our thank income quarter, As especially but incentive operating Operator, operating term well a time we further our challenges. that, With in We invest affect financial margins we and QX, questions. are to clothes a enable positioned twenty, uncertainty are strength. you. another believe to report growth And is over earlier long objectives. will strong we The Dan will intend supply for Which the and QX, in of me let the chain company mentioned twenty about turn in excited the ahead. significant

Operator

question. now the and will We to begin session question answer ask [XX:XX:XX] a

star, then press your touchtone phone. on may one You

using keys pressing pause we If your At then question, will two. momentarily this your assemble speakerphone, pick to withdraw our please a before handset roster. Press you're time, up the to please. star,

from Please comes question first B. Carrie FBR. go from Riley ahead. Anderson Our

Kara Anderson

[XX:XX:XX] Hi, good afternoon.

the start disruption the quarter, you to impact mentioned then little So future a I talk supply talking the we in chain client you or experience, bit disruption can headwind maybe whether that or wanted saw about is stocks, impact about year just to would the not that experience you of how by compares wondering of any expect from just we to saw other a client to the in something if the that and and last quarters? to some

Dan Chard

happened top [XX:XX:XX] deliberately to in an we supply effectively operational six on our our as as pulled Sure, to last second we different our last switching are selling recognize that the with was produced more could you count our more about growing We lines held year, and us top quarter year have disruption, thirty the the rate. and is that structure right producing and were being year out a very be shoes. to Skewes what of our an we now them growth were accelerated picket the ensure quickly, meaning happening allow versus that of third efficient was into SFUSD was at was this entered we

one, our the capacity new that by takes year, our roughly twenty, without none online the during end be capacity stock we October And was our selling feelings up. that no now end several our of will double. in We've So manufacturing out next and say co by can we of and XXXX, top quarter with the relationships started manufacturer of second one fiscal the came went of twenty quarter. in the skews ever effectively

we accelerating year. through move as So the

headwind don't move a anticipate manufacturing having So we forward. be we as

Kara Anderson

look April, you promotions you for some May plans in your wondering ran then, that great. the and more can might And promotion sentence discuss favor, worked Ok, if any in and future, then running subsequent [XX:XX:XX] clearly what in just know, like. the ran the you

Dan Chard

[XX:XX:XX] a optimizer Yeah, have reaction the able as we previously. wouldn't probably we it out, new promotions, feel were through turns of they we to clients have who learn a obviously group but environment, like to lot wouldn't these probably attract a pandemic were tried

that So the a in a offer coach promotion, to with for both media a in specific it and place social had field, was was specific incentive program trainee as then that do client well a both very a as strategy.

brought that large we So in the second came a of cohort quarter. clients in

Our big question, conversion. as retention lifetime terms their you remember of a and they their traditional last act quarter, value would like then was both in client, coach

and So through they some in that we us have to traditional first means. a months are those that that now we pleased identically six came see than little better bit were cases almost that acting almost behind cohort for in

So up coach using a level, high highly operating reflected the by question, perform being our a quarter. margin place, coaches as comes a increase helps next gross pressure that and during our well know, months our we to subsequent new in anticipate our you type second month year. do it it takes at of back it's your them the earning similar head significant margin. efficient different on from it cost answer little But promotion as bit Proactiv to standpoint, driving we yeah, our are as this think We a the productivity into historical as

Kara Anderson

how coach there models? disruption next we the seeing we the and or otherwise about in rise approach holidays [XX:XX:XX] we're Got building we seasonality any like over growth guess, think or as a cases think consider quarter then it. two? And should I Is when we should covered our about out on,

Dan Chard

to just the don't for to it's we it's project wave impact us what is going three the of be. wave to know, Yeah, hard you [XX:XX:XX] or

that's well So to we're work guidance. the We through believe fourth we're quarter. the not providing the reason positioned to

promotions know, highly lap add changes be the of the case sure if because not feel in sequential to quarter around this we from will and that confident. to we've able past, or the improvement quarter. We're been able time that You to

what As to the was Jim of in through what quarter the the terms stated, October in we very we saw expect year. encouraging we of see last

Kara Anderson

What just commission in housekeeping was for rate I'm [XX:XX:XX] quarter? the question me. the

Jim Maloney

[XX:XX:XX] was was forty it two Which approximately Yeah, Jim, it is last pretty consistent is this year. with percent.

Kara Anderson

[XX:XX:XX] DNA that I compensation? and and based see then what stock was Yeah,

Jim Maloney

the hold depreciation, on damage. second. one Yep, so So [XX:XX:XX] for no yep, the

So the. the for

the was the Usually For the again. it three quarter, point three the five first over was it quarters million in first in the point and quarters, four million. for based three quarters share first was the the three yes, dollars once first two to compensation

Kara Anderson

so Awesome. [XX:XX:XX] Thanks. you Thank all for That's me. much.

Operator

[XX:XX:XX] Sebastian go question ahead. from Barbiero Please The from Jefferies. next comes

Sebastian Barbero

number you a was good you talenti on I easiest quarter? one, quarter, EPS growth Congrats [XX:XX:XX] talk this of repeat out I cadence questions coming big if quarter did promotion wondering out could to. EPS the to boost or see the of

Dan Chard

with QX, marketing rate Sebastian, EPS Yeah, the. be was [XX:XX:XX] retention historically. QX so the what is what see QX what what Yeah, to you gross a we standpoint, in specifically, were we what are, a in you from a saw saw QX, little would we bit distorted, think what we but are what I from consistent

in new that So came way the on that went cohort large the typical in repeat our second to clients of of think would. quarter, about cohort clients

coach a on conversion. also We improvement saw slight

as as know, October. we ran through So, builder you a what in all we way ran described the we business August promotion that

but And coaches our rate, in acceleration that the a higher than at earning only active typical would this in to they slightly rate, the quarter. larger a new be same why at cohort saw actually you what so is which we converted not repeated saw coaches

Sebastian Barbero

[XX:XX:XX] you please? climb, You mentioned to standard that, higher on give can and a me details some more

Dan Chard

the quarter promotion Iran the of the so in offer. second was Yeah, [XX:XX:XX] so

was which kit, worth offer rate. a could of media in hadn't month's The strategy. come So there's was in discounted the any who social at months basically client is client and food who one and a training and XX last starter offer the then essential any for purchase new purchased or

So in hundred dollars, which productivity a eight roughly the where number of discount. running earning that an in the reflected of practice active price second coach fifty quarter, we had

third the quarter, a they full And so repeated at as those were same price. in at clients full repeating

the the side promoted. non clients those they a was of the on did that more basis spending benefit. promoted Each So price was than was up when

same and depth So went know, the on have that have, of we they kind see. you to repeat typically of would repeat

to we've Additionally, the that things productive, applied some each help other also was client and more support coaches promotion coach a each or because to be of we the count. client higher able that been of

Sebastian Barbero

our you're going [XX:XX:XX] so percent the Now, of ever risk risks so out-of-stock there said, the any of the how them XX there operational I as our production by holding growth. about believe as stock? as out managed Skewes And to stocks. going is of risk talks, say, talking pandemic during the at accelerated managed focus specifically moving peace That's a earlier, we said rich is moving that's we of you do of we that and we then we of how stock. out skewes, slowest high on the them risk on the time a of none Nor out remaining risk I went any the

manufacturers. capacity October, relationships we to tied new to add manufacturing in began to So back with co

those slower capacity those we or. them Xst a manufacturing to adequate we of should come next coming move beginning growth until to basis. as have stock than to we that year, And year back anticipate should Skewes into more out swings, the And into expect XXXX. we Should month, to supply slower January are turning next so cases we stock go see we last in back start

Dan Chard

excuse our so come our back, of will likely strategy of we won't brands is the won't don't the most Some and part will the to [XX:XX:XX] of them not of Skewes just or return. will be aligned. Roughly, XX we consolidate will to But any have any will slowest beer because off think part ought to have volume as impact return. essentially skewes. type the believe that and for that that never duplicate That that

products. running line of introduced OP of twenty So we we've since twenty kind been basically to to and be the lines transitioned

a of as to and franchise so from Opta now we products that So we from this rescues. obligation excuse down quarter longer reflection a we're And is supply discontinued our via line. away last moving of metaphase me, had no the those or we to branded able have structure, us metaphase consolidating legal to because do one the product

number transition our Skewes as we we Manifest sell declining And a that we'll of coaches. while to acquisition, be business marketing for significantly. the engine a that and has via through direct portion So said, Opta coaches, acquisition client proportion do our is also digital been ultimately, our client still

brand. at have that for So need we point, any the metaphase won't

Operator

Please [XX:XX:XX] question D.A. from Linda go from Bolton The ahead. next Weiser Davidson. comes

Linda Bolton Weiser

a that? can update growth international since on color Or it business, I launched just year What [XX:XX:XX] of us over Hi, growth give rate you you've year or us high now more it's your Is guess of modest? bit been could the it. you on year a is it than is give an little and international? very

Dan Chard

of achieves our [XX:XX:XX] give As how a meaningful we of you we Yeah, internationally, which, we part couple we'll a to said Linda? are doing, plan said on business. we it report you once don't before, specifically as highlights,

impacted, form the we a and think, Asia rate. the probably native been other terms political both the of call more Kong, consistent Philippines even continues So support grow for But Pacific continue materials. so It the at in has add in language center additional Hong to and unrest. of additional support to the support pandemic, but including by in business, we translating

the that long point, of part meaningful this to is And term. business we're be confident we're percent a our going XX this it's not at but level. So about

Linda Bolton Weiser

related that trip pretty you've big recall some of having seem the the then would Thanks. those benefited And I be if from was and would your that this remembering correctly benefit what [XX:XX:XX] a fourth And not I'm be how to that in the year, the year, incentive second second there in in to half were quarter? number last quarter? half the that prior in expenses for trip third of period much of year the

Dan Chard

you know, versus this know, marketing in QX. as [XX:XX:XX] year And as were mentioned, I expenses sales you and so, last were our year lower

month six period. full the for overall know, You

of look second QX. And half at you're I benefit in about QX. in say it of year, the six that's million was why five seeing accrued of the would point If the we're you some talking most dollars.

Linda Bolton Weiser

in or of sell if frequently be direct a would the is thing? that U.S. trying they the idea you not Or number from good even a Would US would the and coaches the ultimate just why questions as sort or be suggest we being get sellers, at for other in of know, an products do that we [XX:XX:XX] of the you kind or to why the can skin, or to new Tupperware you other potential or one those a your gauge number investors of of Avon Okay. you of coaches, comparable that why? to And companies gauge like potential look know,

Dan Chard

would work in between interested [XX:XX:XX] think some for market I as some did to a who being significant on concept, so it do as pretty mean, Yeah, in differences were both for we people as well I coaches. think coach compare. addressable business coaches interest distributor, a the the difficult be and there's We the I describe it. between

But done necessarily if we're XX worth we within quarter. we growth had last found was covered. that And doing we this stated had. just as was change growth did this today. rate exactly was vision, a And pre that what all is did what think our we are of XX So is percent believe that we growth which don't that we years we what it

more coaching form coaching to we intention of tied heard make tools the tools to apps kinds other is and and more And make little Our what attractive. you more in offer a bit attractive. more to that of mobile

to worth offer to continue when make what as ability when So doing believe that together, you we you have attractive. modify been we more I think, know, we and with of expand growth a the you our roughly and add coaches you to coaching have, as beyond business decade that, we know, we

Linda Bolton Weiser

delivery then during can pandemic the the just terms you food finally, think pandemic, getting the of gain thanks. people in ease also And weight do Great, you from [XX:XX:XX] and think the wanting of that? you're of you about having talk just benefits products the if you're benefiting from

Dan Chard

did that we has is of what level a believe about survey the higher pandemic a percent also firm understand health. an modeling, earlier, hired and stated tied us small benefit health We maybe survey, included XX a that to some actually Yeah, a you very concern also pandemic. some with their quantitative that weight suggested and during what we [XX:XX:XX] of did qualitative do and the about over another to kind both well analysis Americans outside we to that of gain awareness are concerned help

been the are coaches that helpful our part of The some pieces. people are far for quantifiable those that's is that's available. So more

are I working think traveling as because people out from much, going they're less much. busy not home, not as

time on coached they focus so their And to be to and more health. have

way that very help growing of pandemic, I you after figure in been and ways in not higher some Americans to healthy were able effectively to world. a ways will pandemic. the only general we is with the in around the but know, out health I'd with us pandemic. And in people say the that concern during really So think, We've and to some prior very operate all

as long term there's benefit So we help a think well. will that us will that

Linda Bolton Weiser

Are December Thanks. leaning your to XX you usually around. would more share increase. was last percent you little still [XX:XX:XX] use so on time think you switching or either towards very finally, dividend, can you toward of bit large, Thanks. a dividend or about about flow, high heavily your your cash raise repurchase? It announce in And thoughts ask just dividend then I

Dan Chard

discussions we [XX:XX:XX] the so board as had get. being level, Yes, as are so at all we those

over board that allocation don't that capital actually decisions much the next You being those or until you'll you'll know, we on make input quarter those into go so decision. on made, see a we detail more the really

Linda Bolton Weiser

very [XX:XX:XX] Ok, thank you much.

Dan Chard

[XX:XX:XX] Thanks, Linda.

Operator

ahead. Doug from Lane comes next [XX:XX:XX] Lane The from question Research. Please go

Doug Lane

The I afternoon, looking for. was were we what coach had pretty good hi, impressive. mentioned you numbers Yes, everybody. [XX:XX:XX] Certainly

to he's that place evidence into leadership been good point, So that's will, whatever cohort and you're line, working putting coaching down positions. in in in new developing the your your is you is, if hopefully

how hopefully normalcy? to we what you a to you're more get But gathered one. you to normal this consumer sort some return out mobility go So learnings we have Twenty environment, market changes year whenever once thinking twenty of that back to

Dan Chard

have. we Yeah, [XX:XX:XX]

potential a program that there's them was and attracted our allowed in they message able social haven't with primary learning the and the a the that right group clients we are of right to program. those on social And us way I the to media before. offer are off the that think who, training media, to been offer to attract

confident repeating ties optimize refined be And to our learnings to our understand as this anticipate that our anticipate that promotion. they year. version the social important now forward. We will an our leaders from very to how this part had a business we rhythm back are go of as to well our we as coaches, So that

we've I you with its growth learned moving the really ability to our about So of optimistic to vision our accelerate our we our think we're very know, and our what to to to partner penetrate forward. we the and way add kind coaches

Jim Maloney

twenty conventions, XX already kind that line the makes the going going from that to know, leadership probably will these these should at twenty, but maybe percent but the out That [XX:XX:XX] global even in reinvest you no where and one plan we've margins, not but to to, XX not in-person of stay where percent come the events. you before, you events, it's to sense, you quarter, extrapolate fourth operating margins mentioned, in top into the as that abandon they trips, back to certainly margins be levels where know, not so, in-person beyond there's what there, have begin probably we were that

Dan Chard

percent we've we achieve will a billion dollars what that in we is in margin revenue. operating past we've business achieve as said, a I and what know, we've plan said think, support what move that Yeah, same around the forward and believe we XX that we you to [XX:XX:XX] time our the

invest support support us the to the to business a So in back you're at and infrastructure we of in we pay and think to that allow allow invest describing it, that programs business. the will growing the support that a that us and time dividend can same continue stage the and to invest that operations the business the for

Linda Bolton Weiser

Have they updated think I that? goals, and for XXXXX timetable those I active included the remember also Right. [XX:XX:XX] you coaches.

Dan Chard

that mid we that that know, term that, long you [XX:XX:XX] Now, goals kind in we of project we sustainable can of the those the growth time it of, know, lot confident out you would described business decided end at focus trying the teens make we really would rate a without on year we in that were specific we to to kids, that tie the and the out. enough last

Doug Lane

Dan. thanks, Ok, [XX:XX:XX]

Dan Chard

Doug. you, Thank [XX:XX:XX]

Operator

turn like no the any for question to to are questions There remarks. I would conference Dan session. concludes more and This [XX:XX:XX] closing over answer the queue. Short in our back

Dan Chard

I update appreciate And coaches stage. shout all your big all of Thank an of bye. your you look all our we And conference [XX:XX:XX] upcoming you said, call thank like Bedfast in out as us appreciate evening. also this a interest our for providing this well, and your of in look, forward joining again. in world Bye participation appreciate quarter. and our on at say to and interest across Yes, to of this it's the all you look, to you

Operator

[XX:XX:XX] now The presentation, conference disconnect. you for is you concluded. may now attending Thank today's

Medifast (MED) 2 Nov 202020 Q3 Earnings call transcript