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Business Segments
 6 Months Ended
Jun. 30, 2014
Segment Reporting, Disclosure Of Entity's Reportable Segments [Abstract]  
Business Segments
10.
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 includes of what is referred to in MD&A as “Medifast 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 expense related to compliance with 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 six months ended June 30, 2014 and 2013:
 
 
 
Three Months Ended June 30, 2014
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
69,254,000
 
$
11,629,000
 
$
-
 
$
80,883,000
 
Cost of Sales
 
 
16,794,000
 
 
3,729,000
 
 
-
 
 
20,523,000
 
Selling, General and Administrative Expense
 
 
40,212,000
 
 
8,448,000
 
 
1,746,000
 
 
50,406,000
 
Depreciation and Amortization
 
 
1,983,000
 
 
503,000
 
 
56,000
 
 
2,542,000
 
Interest(net) and other
 
 
46,000
 
 
(1,039,000)
 
 
(280,000)
 
 
(1,273,000)
 
Income before income taxes
 
$
10,219,000
 
$
(12,000)
 
$
(1,522,000)
 
$
8,685,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
74,955,000
 
$
11,644,000
 
$
43,137,000
 
$
129,736,000
 
 
 
 
Three Months Ended June 30, 2013
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
82,907,000
 
$
14,165,000
 
$
-
 
$
97,072,000
 
Cost of Sales
 
 
20,447,000
 
 
3,695,000
 
 
-
 
 
24,142,000
 
Selling, General and Administrative Expense
 
 
49,199,000
 
 
8,788,000
 
 
1,712,000
 
 
59,699,000
 
Depreciation and Amortization
 
 
1,829,000
 
 
693,000
 
 
68,000
 
 
2,590,000
 
Interest(net) and other
 
 
49,000
 
 
3,000
 
 
(289,000)
 
 
(237,000)
 
Income before income taxes
 
$
11,383,000
 
$
986,000
 
$
(1,491,000)
 
$
10,878,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
84,593,000
 
$
14,043,000
 
$
43,805,000
 
$
142,441,000
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
143,363,000
 
$
24,049,000
 
$
-
 
$
167,412,000
 
Cost of Sales
 
 
35,953,000
 
 
7,165,000
 
 
-
 
 
43,118,000
 
Selling, General and Administrative Expense
 
 
83,023,000
 
 
16,858,000
 
 
3,228,000
 
 
103,109,000
 
Depreciation and Amortization
 
 
3,955,000
 
 
1,010,000
 
 
112,000
 
 
5,077,000
 
Interest(net) and other
 
 
27,000
 
 
(1,030,000)
 
 
(580,000)
 
 
(1,583,000)
 
Income before income taxes
 
$
20,405,000
 
$
46,000
 
$
(2,760,000)
 
$
17,691,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
74,955,000
 
$
11,644,000
 
$
43,137,000
 
$
129,736,000
 
 
 
 
Six Months Ended June 30, 2013
 
 
 
Medifast
 
MWCC &
Wholesale
 
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
165,301,000
 
$
27,814,000
 
$
-
 
$
193,115,000
 
Cost of Sales
 
 
40,670,000
 
 
7,106,000
 
 
-
 
 
47,776,000
 
Selling, General and Administrative Expense
 
 
100,058,000
 
 
17,624,000
 
 
3,217,000
 
 
120,899,000
 
Depreciation and Amortization
 
 
3,644,000
 
 
1,451,000
 
 
126,000
 
 
5,221,000
 
Interest(net) and other
 
 
78,000
 
 
3,000
 
 
(450,000)
 
 
(369,000)
 
Income before income taxes
 
$
20,851,000
 
$
1,630,000
 
$
(2,893,000)
 
$
19,588,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
$
84,593,000
 
$
14,043,000
 
$
43,805,000
 
$
142,441,000