Tivity Health, Inc. (TVTY) Tops Q1 EPS by 6c

Tivity Health, Inc. (NASDAQ: TVTY) reported Q1 EPS of ($0.12), $0.06 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $337.7 million versus the consensus estimate of $337.24 million.

First Quarter Highlights and Business Update:

• The Healthcare Business Unit exceeded adjusted EBITDA guidance;
• The Nutrition Business Unit exceeded revenue and adjusted EBITDA guidance driven by new customer growth in Nutrisystem;
• Accelerated and expanded digital capabilities and virtual offerings to keep SilverSneakers members focused on health, activity, and social connectivity;
• Innovated with health plan partners and other agencies to create broader nutrition and fitness offerings;
• Initiated cost reductions including the furlough of 13% of the workforce, reduction of base salaries for highly compensated employees for approximately four months, and reduction of board cash compensation; and
• Enhanced liquidity further with working capital management and tax savings under the CARES Act.

"Both our Healthcare and Nutrition business units performed well during January, February, and the first two weeks of March. While the coronavirus pandemic impacted our business beginning in mid-March, the momentum early in the quarter, the strength of our brands, and the ingenuity of our colleagues allowed us to pivot and deliver a solid first quarter," said Bob Greczyn, Tivity Health's Interim Chief Executive Officer.

Mr. Greczyn continued, "Several key Nutrisystem metrics trended positively in the first quarter including new customer starts, cost to acquire customers, and average price per order, as well as others. While our Healthcare business has been recently pressured as a result of nearly all our partner locations being closed due to the pandemic, our team promptly implemented innovative and meaningful methods to continue to serve the members of our fitness programs through a variety of virtual settings. Early 2020 momentum coupled with our team's thoughtful cost management actions delivered a strong cash flow quarter and enhanced our liquidity position. I believe that our response and the actions taken over the past several weeks will set the Company up for success and help to partially offset any near-term financial impact. We will continue to be diligent in our actions to ensure the long-term success of the company."

Outlook

"Given the rapidly evolving nature of COVID-19, we are withdrawing our guidance for 2020," said Mr. Greczyn. "We remain confident in our business model and believe in the strength and resilience of our brands. While there are challenges to navigate in the near term, we believe our fundamentals, as well as our end-markets, are solid and the long-term prospects for our business remain intact."

For earnings history and earnings-related data on Tivity Health, Inc. (TVTY) click here.

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