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Business Segments
 9 Months Ended
Sep. 30, 2013
Segment Reporting, Disclosure Of Entity's Reportable Segments [Abstract]  
Business Segments
11.
Business Segments
 
Operating segments are components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker about how to allocate resources and in assessing performance. The Company has two reportable operating segments: Medifast, and MWCC and Wholesale. The Medifast reporting segment consists of the following distribution channels: Medifast Direct and Take Shape For Life. The MWCC and Wholesale segment consists of Medifast Corporate and Franchise Weight Control Centers as well as Medifast Wholesale Physicians.
 
Total assets and operating expense not identified with a specific segment are listed as “Other” and include items such as auditors’ fees, attorney’s fees, stock compensation expense and corporate governance related to NYSE, Sarbanes Oxley and SEC regulations. Evaluation of the performance of operating segments is based on their respective income from operations before taxes. The accounting policies of the segments are the same as those of the Company. The presentation and allocation of assets, liabilities and results of operations may not reflect the actual economic costs of the segments as stand-alone businesses. If a different basis of allocation were utilized, the relative contributions of the segments might differ, but management believes that the relative trends in segments would likely not be impacted.
 
The following tables present segment information for the three and  nine months ended September 30, 2013 and 2012:
 
 
 
Three Months Ended September, 2013
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
73,324,000
 
$
13,156,000
 
$
-
 
$
86,480,000
 
Cost of Sales
 
 
18,120,000
 
 
3,507,000
 
 
-
 
 
21,627,000
 
Selling, General and Administrative Expense
 
 
44,970,000
 
 
8,434,000
 
 
1,408,000
 
 
54,812,000
 
Depreciation and Amortization
 
 
1,939,000
 
 
684,000
 
 
69,000
 
 
2,692,000
 
Interest(net) and other
 
 
(306,000)
 
 
3,000
 
 
(226,000)
 
 
(529,000)
 
Income before income taxes
 
$
8,601,000
 
$
528,000
 
$
(1,251,000)
 
$
7,878,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
91,370,000
 
$
12,450,000
 
$
44,576,000
 
$
148,396,000
 
  
 
 
Three Months Ended September 30, 2012
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
76,777,000
 
$
14,191,000
 
$
-
 
$
90,968,000
 
Cost of Sales
 
 
18,986,000
 
 
3,646,000
 
 
-
 
 
22,632,000
 
Selling, General and Administrative Expense
 
 
46,118,000
 
 
9,311,000
 
 
1,012,000
 
 
56,441,000
 
Depreciation and Amortization
 
 
2,068,000
 
 
841,000
 
 
58,000
 
 
2,967,000
 
Interest(net) and other
 
 
30,000
 
 
5,000
 
 
(86,000)
 
 
(51,000)
 
Income before income taxes
 
$
9,575,000
 
$
388,000
 
$
(984,000)
 
$
8,979,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
82,402,000
 
$
17,362,000
 
$
28,536,000
 
$
128,300,000
 
  
 
 
Nine Months Ended September, 2013
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
238,625,000
 
$
40,970,000
 
$
-
 
$
279,595,000
 
Cost of Sales
 
 
58,790,000
 
 
10,613,000
 
 
-
 
 
69,403,000
 
Selling, General and Administrative Expense
 
 
145,028,000
 
 
26,058,000
 
 
4,626,000
 
 
175,712,000
 
Depreciation and Amortization
 
 
5,583,000
 
 
2,135,000
 
 
194,000
 
 
7,912,000
 
Interest(net) and other
 
 
(228,000)
 
 
7,000
 
 
(677,000)
 
 
(898,000)
 
Income before income taxes
 
$
29,452,000
 
$
2,157,000
 
$
(4,143,000)
 
$
27,466,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
91,370,000
 
$
12,450,000
 
$
44,576,000
 
$
148,396,000
 
  
 
 
Nine Months Ended September 30, 2012
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
230,550,000
 
$
42,914,000
 
$
-
 
$
273,464,000
 
Cost of Sales
 
 
57,694,000
 
 
10,539,000
 
 
-
 
 
68,233,000
 
Selling, General and Administrative Expense
 
 
138,140,000
 
 
31,426,000
 
 
7,783,000
 
 
177,349,000
 
Depreciation and Amortization
 
 
5,955,000
 
 
2,071,000
 
 
193,000
 
 
8,219,000
 
Interest(net) and other
 
 
76,000
 
 
14,000
 
 
(1,241,000)
 
 
(1,151,000)
 
Income before income taxes
 
$
28,685,000
 
$
(1,136,000)
 
$
(6,735,000)
 
$
20,814,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
82,402,000
 
$
17,362,000
 
$
28,536,000
 
$
128,300,000