Tivity Health, Inc. (TVTY) Tops Q4 EPS by 9c, Revenues Miss; Offers FY21 EPS Guidance Above Consensus, FY21 Revenue Guidance Below Consensus

Tivity Health, Inc. (NASDAQ: TVTY) reported Q4 EPS of $0.38, $0.09 better than the analyst estimate of $0.29. Revenue for the quarter came in at $100.6 million versus the consensus estimate of $190.02 million.

Fourth Quarter and Full Year Highlights and Business Update:

• Exceeded the financial guidance ranges for revenue and adjusted EBITDA:
  • Revenue from continuing operations was $100.6 million during the fourth quarter and $437.7 million for 2020;
  • Income from continuing operations for 2020 was $56.9 million, an increase of $11.7 million, or 25.8%, over 2019;
  • Adjusted EBITDA from continuing operations was $147.9 million for 2020, representing an increase of $5.3 million, or 3.7%, as compared to the prior year;
• In-person gym visits totaled 45.9 million for 2020 and 9.3 million for the fourth quarter, growing by 9% over the third quarter.
• Virtual visits totaled 0.8 million during the quarter, a 63% increase over the third quarter, with 36% of virtual visit participants being new to SilverSneakers;
• Growth in virtual visits has continued into 2021, with January visits totaling 0.4 million, an increase of 25% compared to December 2020;
• The Company ended the quarter with cash on hand of $100.4 million and a leverage ratio of 2.36, as calculated under its credit agreement. In January 2021, the Company prepaid $45.0 million of principal amortization of term loan debt. The Company's next quarterly installment is due in December 2022.

"We are pleased with our financial performance and the substantial gains achieved in our digital initiatives during 2020. Through the strength of our trusted SilverSneakers brand and passionate team, we were able to rapidly grow virtual engagement and increase our value to members. This momentum coupled with the successful divestiture of Nutrisystem in December positions us for growth in 2021 and beyond," said Richard Ashworth, President and Chief Executive Officer.

Strategic TransformationThe Company announced today its strategy to expand beyond fitness and gym access to a member-centric platform engagement company. Mr. Ashworth commented, "Our strategy is to become the modern destination for healthy living. We will expand beyond fitness by establishing an engagement platform that enables personalized member interaction with all of our offerings, and we will partner with other payors and service providers to aggregate services to members under the SilverSneakers umbrella. The continued development of our suite of digital offerings will enable a more tailored, interactive, and impactful experience across a variety of areas, including fitness, social connection, community involvement, volunteering, and enrichment. In addition, we plan to accelerate growth in our WholeHealth Living offering through market share expansion and improved technology. Taken together, we believe these actions and this strategy will drive value for our shareholders and health plan clients, and most importantly, will make a difference in the lives of the millions of members we serve."

GUIDANCE:

Tivity Health, Inc. sees FY2021 EPS of $1.47-$1.56, versus the consensus of $1.36. Tivity Health, Inc. sees FY2021 revenue of $455-485 million, versus the consensus of $640.66 million.

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

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