News Article | May 10, 2017
"We are thrilled to announce that we are working with Servcorp as it aims to further its brand in the United States as well as internationally," said Ronn Torossian, CEO of 5W Public Relations. "Servcorp has proven to be a challenger within the office space solutions market and our team is looking forward to making Servcorp synonymous with luxury office solutions." Since working together, 5W has secured a number of top-tier profiles and feature stories, including in CNBC, the New York Post, Quartz and Wall Street Journal. 5W Public Relations, a full-service PR Agency, helps some of the world's most admired brands, corporations and personalities achieve more. 5W's bold, resourceful and thoroughly modern approach has measurably increased the positive results of their clients' communication efforts. 5WPR's diverse roster of client experience includes Welch's, Walgreens, Sparkling ICE, Medifast, T-Fal, KRUPS, Zeta Global, Unilever, Ultra Mobile, ROBLOX, Santa Margherita, Camp Bow Wow, JetSmarter, All-Clad and Wendy Williams. Its roster also encompasses clients from government organizations to leading technology startups and businesses. Servcorp is committed to being the world's best executive suites and virtual office provider. With a business founded on principle and a focus on helping business owners reduce costs by sharing the overhead, Servcorp has helped small businesses and large corporations alike succeed. Founded in Sydney in 1978, Servcorp now operates in nearly 150 locations in 24 countries. In 2010, Servcorp expanded into the United States, and has been providing affordable access to the best facilities and technology in some of the best locations in the best cities around the world. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/5w-public-relations-named-agency-of-record-for-luxury-flexible-workspace-leader-servcorp-300455401.html
News Article | May 18, 2017
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Engaged Capital, LLC (together with its affiliates, “Engaged Capital” or “we”), an investment firm specializing in enhancing the value of small and mid-cap North American equities with a 20.5% economic exposure to Rent-A-Center, Inc. (“RCII” or the “Company”) (NASDAQ:RCII), is compelled to remind stockholders of the facts following RCII’s recent letters to stockholders which obfuscate the truth of RCII’s corporate governance and make misleading statements about Engaged Capital’s highly qualified nominees. Reminder #1: The incumbent Board has destroyed significant stockholder value. Are the shareholder returns below1 indicative of incumbent directors that have proven themselves capable of delivering long-term stockholder value? Reminder #2: A primary cause of RCII’s poor performance is poor corporate governance. All three incumbent directors up for election at the 2017 Annual Meeting have been on the Board for the above periods of stockholder value destruction and have served on the Finance Committee, with responsibility for RCII’s key shortcomings, such as financial policies, capital structure, operating plans, and critical growth initiatives. The Board is long tenured, with five of seven directors serving on the Board for over ten years and two directors serving for over twenty years. A poor corporate governance structure led to failed succession planning and failed oversight. Furthermore, in response to Engaged Capital’s campaign for Board change, the incumbent directors have used the Company’s corporate machinery to disenfranchise stockholders and challenged Engaged Capital’s nominees on multiple grounds, amounting to what we consider a thinly veiled attempt to perpetuate the status quo. The Board has approved a three-year plan to turn the business around from its own self-admitted mistakes. Progress to date since Mark Speese returned as CEO is indicative of the challenge ahead. Core U.S. same store sales were negative 12.5% in Q1 2017 and negative 13.0% in April 2017. RCII is attempting this turnaround as its sole strategy while breaching debt covenants and requiring a waiver that restricts outstanding borrowings and that may restrict the dividend, which was already cut by 67% in 2016. Please see accompanying graphics 1, 2 and 3. Reminder #4: We offer an alternative. Engaged Capital is campaigning for stockholder friendly corporate governance and a commitment to openly and fairly evaluate ALL opportunities to enhance stockholder value to find the best path forward for ALL stockholders. Engaged Capital has simply requested that the Board objectively evaluate ALL strategic alternatives available to the Company before blindly embarking on a public turnaround plan. The Board has consistently refused our request. The Board also denied our request to seek stockholder approval to declassify the Board in 2018 as the incumbent directors are apparently fearful at the prospect of facing a stockholder vote on re-election every year. Our campaign is about ensuring that the RCII Board does what it was elected to do – represent the best interests of stockholders by acting as our fiduciaries. Given RCII’s significant underperformance under the incumbent Board’s watch, this MUST include evaluating all opportunities for creating stockholder value. ENGAGED CAPITAL HAS NOMINATED HIGHLY QUALIFIED, INDEPENDENT NOMINEES WITH STRONG TRACK RECORDS OF VALUE CREATION VOTE THE BLUE ENGAGED CAPITAL PROXY CARD FOR ALL THREE ENGAGED CAPITAL NOMINEES TODAY If you have any questions, or require assistance with your vote, please contact Saratoga Proxy Consulting LLC, toll- free at (888) 368-0379, call direct at (212) 257-1311 or email: firstname.lastname@example.org Engaged Capital, LLC (“Engaged Capital”) was established in 2012 by a group of professionals with significant experience in activist investing in North America and was seeded by Grosvenor Capital Management, L.P., one of the oldest and largest global alternative investment managers. Engaged Capital is a limited liability company owned by its principals and formed to create long-term shareholder value by bringing an owner’s perspective to the managements and boards of undervalued public companies. Engaged Capital’s efforts and resources are dedicated to a single investment style, “Constructive Activism” with a focus on delivering superior, long-term, risk-adjusted returns for investors. Engaged Capital is based in Newport Beach, California. 1 FactSet data as of 1/27/2017, the day before Engaged Capital 13D filing. 2 Source: RCII SEC filings. 3 Reported on a non-GAAP basis. 2017 EBITDA based on consensus estimates. Source: RCII SEC filings and FactSet. 4 2013 to 2016 net debt to EBITDA shown on LTM and non-GAAP basis. NTM EBITDA per consensus estimates. Source: RCII SEC filings and FactSet. 5 From day before Mr. Brown was elected to the Medifast board to May 16, 2017. 6 From day before Mr. Brown was appointed to the Nordion board to date of transaction close. 7 Outerwall press release, July 25, 2016. 8 RCII total shareholder return from July 2000 to August 2015. Mr. Fadel was President and COO since July 2000 and December 2002, respectively, to August 2015 and a director from December 2000 to November 2013. 9 From day before effective date of Mr. Fadel’s resignation to 1/27/2017, the day before Engaged Capital 13D filing. All data per FactSet.
News Article | May 25, 2017
"5WPR is thrilled to be working with this innovative and results-driven company," said Ronn Torossian, CEO of 5W Public Relations. "As attendees to previous IBE events, we have always been impressed with the quality of the show and professionalism of the team behind it. We are looking forward to building on this great established base and partaking in IBE's continued growth by further elevating their brand visibility, unique exhibitors and expertise with professional, consumer and business-focused media." "IBE has grown at an astonishing pace and we plan to continue to expand our platform to provide even greater support to indie brands and the entrepreneurs behind them," said Nader Naeymi-Rad, co-founder of IBE. "As we grow, we need partners who have the experience, expertise and capabilities to help us scale. 5W Public Relations has these." "From day one, we recognized the vital need to obtain consistent and high-quality press and media coverage for IBE and, more importantly, for our exhibiting brands," said IBE co-founder Jillian Wright. "This area has always been strategically significant to our business and it is one where we never want to take any chances. With 5W Public Relations, we believe we are in very capable hands." 5W Public Relations, a full-service PR Agency, helps some of the world's most admired brands, corporations and personalities achieve more. 5W's bold, resourceful and thoroughly modern approach has measurably increased the positive results of their clients' communication efforts. 5WPR's diverse roster of client experience includes Welch's, Walgreens, Sparkling ICE, Medifast, T-Fal, KRUPS, Zeta Global, Unilever, Ultra Mobile, ROBLOX, Santa Margherita, Camp Bow Wow, JetSmarter and All-Clad. Its roster also encompasses clients from government organizations to leading technology startups and businesses. IBE debuted in New York City in August of 2015 and has rapidly grown to become the largest professionally-curated exposition of independent beauty, lifestyle and wellness brands. To date, IBE has helped hundreds of brands from around the world and across different categories along their journey towards commercial success. IBE is presented in three top strategic retail markets in N. America: NY, LA, and Dallas. IBE takes place over three days with segments for Brands, Buyers, Press and Shoppers. IBE has also launched a range of new services, including: Best in Show awards, IBE TV media channel, Anthology show book, CONNECT INDIE entrepreneurial education, and Retail Advisory services for Buyers. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/5w-public-relations-named-agency-of-record-for-indie-beauty-expo-new-york-300464053.html
News Article | April 24, 2017
OWINGS MILLS, Md., April 24, 2017 /PRNewswire/ -- Medifast, Inc. (NYSE: MED), a leading United States manufacturer and provider of clinically proven weight-loss and healthy living products and programs, will announce financial results for the first quarter ended March 31, 2017...
News Article | April 19, 2017
Zach Vichinsky, Co-Founder and Principal Real Estate Broker, added, "5W Public Relations is a top PR firm and is known for getting results – we are excited to collaborate with the 5W team and take our brand to the next level." As of March 1, 2017 Bespoke Real Estate currently manages over $950 million of exclusive real estate property and represents 50% of the top eight most expensive properties across the East End. Individually Zach and Cody are amongst the largest brokers in volume for single family residences of individual dwellings in the country. 5W Public Relations, a full-service PR Agency, helps some of the world's most admired brands, corporations and personalities achieve more. 5W's bold, resourceful and thoroughly modern approach has measurably increased the positive results of their clients' communication efforts. 5WPR's diverse roster of client experience includes Walgreens, Sparkling ICE, Medifast, T-Fal, KRUPS, Zeta Global, Unilever, Ultra Mobile, ROBLOX, Santa Margherita, Camp Bow Wow, JetSmarter and All-Clad. Its roster also encompasses clients from government organizations to leading technology startups and businesses. Recognizing a need in the Hamptons for a tailored, data-driven approach to high-end home sales, Bespoke Real Estate brings its expertise to the finest addresses in the East End. Focusing solely on properties and projects valued at $10m and up, along with a hand-selected portfolio of homes and development sites, Bespoke tracks the slightest movements in the market, understanding the nuances of the area down to the neighborhood, block and specific site. Founders and brothers Cody and Zach Vichinsky have the distinct ability to find opportunities where there seemingly are none, excite prospective buyers through custom marketing solutions and facilitate quiet deals among their global network of investors, brokers and influencers. Unlike any other brokerage, we offer a concierge-level of service to each client. Being a Bespoke listing will inherently add value to unique homes and development sites; buyers will know that each is a one-of-a-kind opportunity. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/5w-public-relations-named-agency-of-record-for-bespoke-real-estate-ultra-luxury-real-estate-brokerage-300442001.html
News Article | May 4, 2017
Net income in the first quarter of 2017 was $6.1 million, or $0.51 per diluted share, based on approximately 12.0 million shares outstanding. First quarter 2016 net income was $4.3 million, or $0.36 per diluted share based on approximately 11.9 million shares outstanding. Net income in the first quarter of 2016 would have been $5.0 million, or $0.42 per diluted share, excluding the $0.8 million first quarter 2016 restructuring costs net of taxes. For the first quarter of 2017, Medifast revenue decreased 2.4% to $70.6 million from revenue of $72.3 million in the first quarter of 2016. Revenue in Take Shape For Life, was up 2.3% to $58.0 million in the first quarter of 2017, compared to $56.7 million in the first quarter of the prior year. This is the sixth consecutive quarter of growth. The total number of active earning Health Coaches in the first quarter of 2017 increased to 13,000, compared to 12,600 in the first quarter of 2016. The average revenue per active earning Health Coach for the first quarter of 2017 was $4,463 as compared to $4,490 in first quarter of 2016. Medifast Direct revenue decreased to $8.9 million in the first quarter of 2017, compared to $10.9 million in the first quarter of 2016. First quarter advertising spend decreased to $2.3 million from $4.1 million in the first quarter of 2016. Revenue in the Franchise Medifast Weight Control Centers decreased to $3.5 million from $4.2 million in the first quarter of last year. The decrease in revenue was primarily driven by fewer franchise centers in operation during the period combined with a decline in activity within the centers. The Company ended the quarter with 37 franchise centers and 19 reseller locations in operation compared to 58 franchise centers at the end of the same period last year. First quarter 2017 Wholesale revenue decreased to $0.3 million compared to the prior year period at $0.5 million. Gross profit for the first quarter of 2017 decreased modestly to $52.9 million compared $53.2 million in the first quarter of 2016. The Company's gross profit as a percentage of revenue increased 140 basis points to 74.9% from 73.5% in the first quarter of 2016. The increase as a percentage of revenue was primarily driven by price increases and efficiencies in the Company's supply chain operations. Selling, general and administrative expenses ("SG&A") decreased $2.6 million to $44.3 million compared to $46.9 million in the first quarter of 2016. SG&A as a percentage of revenue decreased 220 basis points to 62.7%, compared to 64.9% in the first quarter of 2016. The decrease in SG&A was primarily a result of reduced and more effective advertising spend in Medifast Direct. In addition, the first quarter of 2016 included $1.2 million in restructuring costs. Excluding restructuring costs, SG&A decreased $1.5 million to $44.3 million in the first quarter of 2017 compared to $45.8 million in the first quarter of 2016. Adjusted selling, general expenses as a percentage of revenue were 62.7% and 63.3% for the first quarter of 2017 and 2016, respectively. Sales and marketing expense decreased $1.4 million in the first quarter of 2017 compared to the first quarter of 2016. The first quarter 2017 effective tax rate was 29.5%, compared to 33.0% in the first quarter of 2016. The decrease in the effective tax rate was due to the change in accounting for taxes associated with share based compensation. The Company's balance sheet remains strong with stockholders' equity of $99.2 million and working capital of approximately $80.5 million as of March 31, 2017. Cash, cash equivalents, and investment securities increased $2.2 million to $79.0 million as of March 31, 2017 compared to $76.8 million at December 31, 2016. The Company remains free of interest bearing debt. The Company declared a quarterly cash dividend of $3.9 million, or $0.32 per share, during the first quarter of 2017. The Company did not repurchase any shares during the first quarter of 2017, and has approximately 850,000 shares remaining on its repurchase authorization as of March 31, 2017. The Company expects second quarter revenue from continuing operations to be in the range of $72.0 million to $75.0 million and earnings per diluted share from continuing operations to be in the range of $0.51 to $0.54 per diluted share. The Company reiterated its guidance for full year 2017 revenue of $290.0 million to $300.0 million and earnings per diluted share of $2.00 to $2.10. The fiscal year 2017 guidance assumes a 33% to 34% effective tax rate. Our Non-GAAP financial measures include adjusted income from continuing operations and adjusted income per diluted share. The Company believes these non-GAAP financial measures are useful to investors because it provides for a more direct comparison of the results for these periods. The non-GAAP financial information is provided in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP. Please refer to the tables in today's press release for a reconciliation of all non-GAAP financial measures. The conference call is scheduled to begin at 4:30 p.m. ET on May 4, 2017. The call will be broadcast live over the Internet hosted at the Investor Relations section of Medifast's website at www.MedifastNow.com, and will be archived online through May 18, 2017. In addition, listeners may dial (855) 560-2579. A telephonic playback will be available from 6:30 p.m. ET, May 4, 2017, through May 11, 2017. Participants can dial (877) 344-7529 to hear the playback and enter passcode 10104793. Medifast (NYSE: MED) is the leading easy-to-use provider of clinically proven weight-loss and healthy living products and programs. Medifast aims to help customers lead a healthier lifestyle through a holistic approach to weight-loss and weight management. Medifast's proven results are based on the use of structured meal plans featuring Medifast Meals, which are nutritionally designed to assist customers with successful weight-loss and weight management. Medifast was founded in 1980 and is located in Owings Mills, Maryland. For more information, log onto www.MedifastNow.com. Please Note: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend" or other similar words or the negative of such terminology. Similarly, descriptions of Medifast's objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Medifast believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Medifast's inability to attract and retain independent Health Coaches and Members, stability in the pricing of print, TV and Direct Mail marketing initiatives affecting the cost to acquire customers, increases in competition, litigation, regulatory changes, and its planned growth into new domestic and international markets and new channels of distribution. Although Medifast believes that the expectations, statements, and assumptions reflected in these forward- looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/medifast-inc-announces-first-quarter-2017-financial-results-300451796.html
News Article | December 5, 2016
Obese people are increasing globally, which is leading to many diseases such as heart diseases, hypertension, cancer, high blood pressure and diabetes. Treatment of such diseases is quite expensive and government has to bear the costs to improve the healthcare infrastructure. Obesity is a very serious medical condition in which body has excess fat deposition. Increase consumption of unhygienic fatty foods or intake of too many calories and genetic inheritance are the main causes of obesity. With the rising population, obese people have increased not only of the developed nations but also of the developing nations too. According to World Health Organization, 1.6 billion adults are overweight worldwide and another 400 million are obese. They also say that 20 million children below 5 years of age are overweight. Obesity reduces life expectancy, Technological advancement, increasing number of diseases, increasing personal disposable income, increase intake of high-calorie food and beverages due to urbanization, reduced physical activity, unhealthy lifestyle are the most important driving factors in obesity management market. There’s a sea change in the consumer’s habits, lifestyle and eating patterns. Companies are emphasizing more on digital advertising and social media to lure consumers for junk food consumption and try products which can be harmful for their health. United States has the most obese people followed by China. US has created and designed special ambulance just for obese people since normal ambulances cannot take the weight of obese people. The high cost of the obesity programme, increasing health awareness of food and beverages by consumers, post obesity programme or surgery harmful effects and complications are acting as a barrier for obesity management market. Obesity Management Market is broadly classified on the basisof the following segments – The obesity management market has grown substantially at a healthy CAGR due to increase per capita spending on diet food and beverages products, rising disposable income, strong desire among men and women to look fit and healthy. With rapid technological advancement and variety of options available in the market, obesity management market is expected to grow. North America represents the largest market for this product category. Asia Pacific will emerge as the fastest growing region in an obesity management market. The obesity management market is expected to register a double-digit CAGR for the forecast period. Depending on geographic regions, obesity management market is segmented into seven key regions: North America, South America, Eastern Europe, Western Europe, Asia Pacific, Japan, and Middle East & Africa. As of 2015, North America dominated the obesity management market in terms of market revenue. Asia is the fastest growing market. There’s a robust demand from Europe for obesity management market. Some of the key market players in obesity management market are Atkins Nutritional Inc, Nutrisystem Inc, Ediets.com, Medifast Inc, Herbal Life, Precor, Life Fitness, Cybex International, Star Trac, Technogym.