THE CHOICE IS YOURS
2010 Annual Report
Medifast empowers its customers with CHOICES. Through
clinically proven weight-loss programs and a wide range of
more than 70 meal replacements, Medifast helps build the
right path for lasting weight loss and better health.
Medifast customers also choose the support they need.
With high-touch walk-in centers, free health coaches, medical
professional support, and a vibrant, online community,
Medifast offers a wide variety of programs that suit the
individual preferences of anyone looking to effectively lose
weight and get healthy.
The Choice is Yours.
Choose Medifast.
Letter to
Shareholders
Dear Shareholders,
In 2010, Medifast celebrated 30 years as a
leading provider of weight-management
products and programs to combat the obesity
epidemic in the United States. Medifast’s
proprietary technology as a medically
formulated, portion-controlled meal-
replacement program has been time tested and
designed not only to help customers lose weight
quickly and safely but also to improve and
maintain their health for the long term.
What truly differentiates Medifast from its
competitors is the variety of choices we give
our customers in successfully completing their
weight-loss journey. With four distinct service
channels and a menu of over 70 meal items
to choose from, our customers regale in good
choices.
Since 1980, over 20,000 doctors across the
country have recommended Medifast to help
their patients lose weight. But today’s Medifast
customers also find their weight-management
solutions on the Internet, through participation
in coaching and counseling programs, and
through our weight-management centers, a retail
presence in professional office buildings and
shopping centers.
Today, Medifast meets our customers’ needs in
all of these scenarios with the same effective
products at the support level that they choose.
Medifast offers unique protocols in each
channel—reinforcing our commitment to
customer satisfaction through customer-oriented
choice and customer-oriented results.
As a result of meeting our customers’ needs,
our company has been named the #1 Best
Small Company in America by Forbes magazine
for 2010. This honor is based on the past five
years’ financial performance of companies
that do less than $1 billion in annual revenue.
In fact, Medifast has attained a record of over
45 quarters of consecutive profitability and a
44% combined aggregate growth rate in our
business since 1999, far exceeding the long-term
performance of our national competitors for
that time period.
The Company in 2010 attained record revenues
of $257.6 million, an increase of 52%, and
improved profits by 73% to $19.6 million
compared to 2009. Over the past dozen years,
u Michael S. McDevitt
Chief Executive Officer
u Bradley T. MacDonald
Executive Chairman of
Medifast, Inc.
u Margaret Sheetz
President and Chief
Operating Officer
stockholder equity has grown from minus $1
million to more than $72 million at the end of
last year with a year-end cash and investment
balance of $34.4 million. This growth was
accomplished primarily by utilizing internal
resources and without taking on significant new
debt.
To accommodate this unprecedented growth,
the Company is now embarking on the largest
expansion in its history. We expanded facilities
and infrastructure, including a new distribution
center in Texas to support our West Coast
customer base, and leased two additional
office facilities in Owings Mills, MD, to support
the organic growth of our business units.
The significant expansion in manufacturing
operations created more than 250 new Medifast
jobs in 2010. This commitment to U.S. domestic
employment growth is woven into the fabric
of our business plan and will continue to bring
desperately needed manufacturing jobs to
Maryland, Texas, and beyond.
Growth, however, is not without challenges.
In March 2011, our new independent auditor
requested the re-evaluation of whether our
historical and then current practices with
respect to the timing for recognition of certain
expenses were appropriate under generally
accepted accounting principles. Given the
proximity of their request to the due date for
our SEC filings, we requested an automatic
extension from the SEC to file Form 10K. This
provided the time for our new auditor to confer
with our predecessor auditor and management
to accurately resolve the questions. After due
consideration, we determined to restate our
financial statements for the years 2008 and 2009
to reflect the recognition of certain expenses
in the year in which they were incurred rather
than when they were paid. A restatement was
issued on March 31, 2011 for the years ending
December 31, 2008 and 2009. The change in
recognition, however, was not material to our
December 31, 2010 results that reflect profit
growth of 73% year over year.
The Board’s Audit Committee held numerous
meetings during this audit period, and
management of the company was actively
engaged in the audit process. We continue
to invest in our internal audit capability to
complement our historical and forecasted
growth. We are well aware of the unfortunate
volatility in the stock price that, in our judgment,
is primarily due to the short selling that
occurred despite our record of 45 consecutive
profitable quarters for our business. The bottom
line is strong. The Company’s earnings report
after the extension far exceeded the Board’s
approved forecast for both revenues and
profits, and continued our lengthy record of
outperformance.
We continue to be fully committed to
combating the national obesity epidemic and
helping to make America healthy by providing
the best array of weight-management products
and services available. We will continue to put
a premium on customer choice and are looking
forward to achieving our goal for another
banner year of growth and financial success in
fiscal year 2011.
We whole-heartedly thank our valued
customers, Medifast employees, Take Shape For
Life Health Coaches, Medifast Weight Control
Center Operators, Medifast Medical Providers,
Board of Directors, and Shareholders for your
continued support of Medifast, Inc.
Best Regards,
Bradley T. MacDonald
Executive Chairman of Medifast, Inc.
Michael S. McDevitt
Chief Executive Officer
1
Medifast Board of Directors
Seated from left to right:
Margaret Sheetz, President and Chief Operating Officer; Sr. Catherine T. Maguire, RSM; Jeannette M. Mills; and Jerry D. Reece
Standing from left to right:
Charles P. Connolly; Harvey C. “Barney” Barnum, Jr; Donald F. Reilly, OSA; George J. Lavin, Jr., Esq; Michael S. McDevitt, Chief Executive
Officer; Bradley T. MacDonald, Executive Chairman of the Board; John P. McDaniel; Jason L. Groves, Esq; Barry B. Bondroff, CPA
Not Pictured: Michael C. MacDonald
2
Medifast u 2010 Annual Report
MULTIPLE
DISTRIBUTION
CHANNELS,
ONE MISSION
People who are overweight or obese represent a diverse
population; there is no one method of support that works equally
well for everyone.
Medifast implements its products and programs through four
unique distribution channels to accommodate different needs and
preferences and ensure that as many people as possible can reach
and maintain their weight loss goals.
Direct-to-
Consumer
Direct
Selling
Retail
Presence in
Professional
Office
Buildings and
Shopping
Centers
Licensed
Health
Care
Providers
3
Medifast Direct
Medifast Direct is a popular
choice for self-starters who
are highly motivated and who
may prefer to pursue their
weight loss goals privately and
independently.
In this direct-to-consumer
channel, customers order
Medifast products directly
through the Company’s website
or through its in-house contact
center. The products are
then shipped directly to the
customer.
This business is driven by an
aggressive multimedia customer
acquisition strategy that
includes print, radio, television,
and Web advertising, direct mail,
and public relations and social
media initiatives.
The Medifast Direct channel
focuses on targeted marketing
programs and provides
customer support through its
in-house contact center and
team of registered, licensed
dietitians, certified personal
trainers, and a behavior
specialist through toll-free
phone access, email, and online
discussion boards.
In addition, Medifast continues
to build on its solid Web
technology, providing
customized meal planning
and client support. Medifast’s
online community, MyMedifast,
provides support forums and a
library of articles on weight loss,
health, and nutrition, as well as
meal planning tools and social
media functions.
JESSICA WESTMORELAND
Medifast Direct client
“I chose Medifast because
since I got healthy, my
relationships have changed
in a positive way. I am
happier, more confident,
and, for once, I feel
deserving of love and
friendship.”
4
Medifast u 2010 Annual Report
“I chose Medifast and Take
Shape For Life because
of my Health Coach. The
other day a newbie at my
gym actually asked me if I
was a trainer! In May 2009,
that would never have
entered anyone’s mind! I
love what Take Shape For
Life has done for me!”
Linda Sue Hundley
TSFL Health Coach
Take Shape For Life
Take Shape For Life is the direct
selling division of Medifast. At
the heart of this physician-led
business model is the Take
Shape For Life Health Coach,
who is trained and educated
to support clients on the
Medifast 5 & 1 Plan® with
encouragement, education, and
mentoring.
Three unique components
make up a “triad of health”
that is the basis for the Take
Shape For Life program. The
combination of the Medifast
Program, the support of the
Health Coach, and co-founder
Dr. Wayne S. Andersen’s Habits
of Health system is what sets
Take Shape For Life apart and
helps create lasting well-being.
Take Shape For Life offers
the BeSlim® lifestyle as a way
to facilitate long-term weight
maintenance. Take Shape For
Life also shows clients how to
achieve a balance of physical,
mental, and financial well-being,
which is referred to as the
Trilogy of Optimal Health®.
In addition to the
encouragement and support
of their Health Coaches, clients
of Take Shape For Life can avail
themselves of program support
calls and access to doctors,
nurses, and registered, licensed
dietitians through toll-free
phone access, email, and online
discussion boards.
Take Shape For Life provides
an exciting home-business
opportunity for those clients
who wish to share their success
with others by becoming
Health Coaches themselves.
Since 2003, Take Shape For
Life has been a member of
the Direct Selling Association
(DSA), a national trade
association representing over
200 direct selling companies
doing business in the
United States.
Leo V. Williams, III
Chairman of
Take Shape For Life
5
Medifast Weight Control Centers
“I chose Medifast because
the support I received
from my Medifast Weight
Control Center staff was
incredible. I never felt
judged—they truly wanted
to see me succeed and did
everything in their power
to see that I did.”
CHRISTINA ROBERTO
MWCC member
For customers who prefer a
more structured approach with
greater personal accountability,
Medifast Weight Control
Centers is the ideal choice.
Members receive the nutritional
and full-scale behavioral
support tools needed for
enduring health and well-being,
based on their individual goals.
Medifast Weight Control
Centers bring a retail presence
in professional office buildings
and shopping centers, offering
comprehensive Medifast
plans for weight loss and
maintenance, a medical review,
customized member counseling,
and InBody™ composition
analysis.
Medifast Weight Control
Centers’ local advertising
includes radio, print, television,
billboard, and Web initiatives;
the business channel also
benefits from the nationally
advertised Medifast brand,
which encourages walk-ins and
referrals from other Medifast
business channels.
6
Medifast u 2010 Annual Report
Medifast Medical Providers
Medifast Medical Providers are those licensed
health care providers who have implemented
the Medifast Program within their practices. They
carry an inventory of Medifast products that they
resell to their patients.
Medifast Medical Providers provide appropriate
medical monitoring, testing, and support for their
patients who are on the Medifast Program. This
is especially vital for those Medifast clients with
co-morbidities such as diabetes, heart disease,
and hypertension.
The Company offers an additional in-house
support program to assist Medical Providers and
their staff, including access to registered, licensed
dietitians, certified personal trainers, and a
behavior specialist through toll-free phone access
and email, as well as Web- and phone-based
training sessions and informative program guides.
GARY MANKO, M.D.
Medical Provider
“I chose Medifast because
my overweight patients
have heard they ‘need to
lose weight’ thousands of
times, but no one has given
them something that works
like the Medifast Program.
For the first time, I have a
solution that gives people a
likelihood of success, and a
program that’s easy to do.”
7
Obesity Percentage in America (BMI > 30) in U.S. Adults
1985
1999
2009
No Data
< 10%
10% - 14%
15% - 19%
20% - 24%
25% - 29%
> 30%
8
Medifast u 2010 Annual Report
A SAFE AND EFFECTIVE
SOLUTION TO AMERICA’S
OBESITY EPIDEMIC
The consequences of obesity and poor nutrition in America are sobering:
The obesity epidemic was much less urgent in 1980 when Medifast started, but today, according to the Centers for Disease Control and
Prevention, two-thirds of Americans are overweight or obese and at increased risk for heart disease, diabetes, and other health problems.
u Less than one-third of U.S. adults are at a healthy weight.1
u Obesity-related illness costs America 39.3 million lost work days.2
u For decades, the U.S. has been slipping in international rankings of life expectancy, while other
countries have improved health care, nutrition, and lifestyles.3
u According to the U.S. Surgeon General and the Harvard School of Public Health, obesity poses a
major public health challenge. Each year, obesity and/or overweight contribute to an estimated
112,000 – 216,000 preventable deaths, respectively.4,5
1 National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), of the U.S. National Institutes of Health.
2 Environ Health Prospect. 2004 August, 112 (11): A616 – A618
3 Olshansky SJ, Passaro DJ, Hershow RC, et al. A potential decline in life expectancy in the United States in the 21st century. New England Journal of
Medicine 2005; 352:1138 – 1145.
4 The Surgeon General’s vision for a healthy and fit nation. [Rockville, MD]: U.S. Department of Health and Human Services, Public Health Service, Office
of the Surgeon General; 2010. http://www.surgeongeneral.gov/library/obesityvision/obesityvision2010.pdf
5 Danaei G, Ding EL, Mozaddarian D, Taylor B, Rehm J, Murray CJL, & Ezzati M. The preventable causes of death in the United States: Comparative risk
assessment of dietary, lifestyle, and metabolic risk factors. PLoS Medicine 2009; 6 (4): e1000058.
9
Medifast Meals
Medically formulated, portion-controlled meal
replacements meet consumer demand for a
safe and effective weight-loss solution, helping
them lose weight quickly and safely, and also
improve and maintain their health for the long
term. When part of a thoughtfully created
nutritional and behavioral program,
Medifast Meals provide balanced
nutrition, fast weight loss, and lasting
results, unique in a market where
researchers have estimated
that approximately 70% of
dieters who lose weight
will gain it back
within one to five
years.
Medifast
offers products
with a formulation
that is nutritionally
balanced, making them
satisfying and safe for
individuals with type 2 diabetes.
The Medifast 5 & 1 Plan is simple and easy to
follow, even for those clients with busy lifestyles.
Medifast Meals come in portion-controlled,
individual servings that clients can eat right out
of the package, or mix with water and either
microwave or chill. Clients do not have to count
calories, carbs, or “points.”
The product line includes over 70 different
meals and flavors, including shakes, soups, stew,
chili, oatmeal, eggs, fruit drinks, iced teas, hot
beverages, bars, pudding, pretzel sticks, cheese
puffs, soft serve, pancakes, and brownies.
Each Medifast Meal shares a similar nutritional
“footprint,” providing a special balance of
protein and good carbohydrates like fiber, plus
fortification with vitamins and minerals. Medifast’s
special formula helps to ensure clients get the
nutrition their bodies need while providing a
feeling of fullness to facilitate compliance and
more comfortable weight loss.
10
Medifast u 2010 Annual Report
The Weight Loss Phase
The Medifast 5 & 1 Plan for weight loss is simple.
Each day, the client eats six times, once every
two to three hours. The Medifast 5 & 1 Plan
puts the body in a mild fat-burning state to help
facilitate fast, safe weight loss.
Clients choose five Medifast Meals (the “5”) and
one self-prepared Lean & Green™ Meal (the
“1”) consisting of measured portions of lean
protein and non-starchy vegetables.
Medifast’s team of registered, licensed dietitians
has developed variations on the Medifast
5 & 1 Plan to support healthy weight loss for
vegetarians, teens, nursing mothers, seniors,
people with type 2 diabetes, people with gout,
bariatric surgery patients, and those taking
prescribed anticoagulant drugs, among others.
Before
JACKIE POWELL
lost 100 lbs
Results not typical.
Typical weight loss on the
Medifast 5 & 1 Plan is up
to 2 to 5 lbs per week.
11
Transition and Maintenance Phases
Up to 70% of people who lose weight on
diets regain that weight within one to
five years, often with additional pounds.
To counteract this trend, Medifast is refining its
comprehensive approach to prevent weight
regain in clients who have reached their healthy
weight goal.
The transition phase gradually reintroduces
additional healthy food groups and increases the
client’s caloric intake over the course of several
weeks. The maintenance phase uses principles of
proper nutrition and portion control, along with
behavior modification techniques, to retrain the
brain and body to be satisfied with appropriate
quantities of healthy food choices.
In this way, clients can learn to enjoy the benefits
of a healthier weight and improved well-being for
the long term.
NANCY PETTIT
TSFL Health Coach
“I chose Medifast because
as Health Coaches for Take
Shape For Life, my husband
and I can play a role in so
many people becoming
healthy, while creating a
business that provides us
with personal satisfaction.”
12
Medifast u 2010 Annual Report
CREATING A
HEALTHIER
FUTURE
THROUGH
GOOD
SCIENCE,
GOOD PEOPLE,
AND GOOD
BUSINESS
13
THE MEDIFAST
VISION
In 2010, Medifast celebrated 30 years of developing, manufacturing,
and marketing medically formulated, portion-controlled meal
replacements for weight loss.
These products—Medifast Meals—have established the heart of
the Medifast Program that helps people lose weight quickly, easily,
and safely, and also improve and maintain their health for the long
term. Now, as always, every Medifast Meal is manufactured in the
United States.
Medifast also offers Essential 1®, a line of supplements to
support areas of wellness such as cardiovascular health and
digestive health.*
*These statements have not been evaluated by the
Food and Drug Administration. These products are not
intended to diagnose, treat, cure, or prevent any disease.
14
Medifast u 2010 Annual Report
Science
Medifast continues to build its products,
programs, and brand on reliable science and
quantitative data.
platform that provides a long-term look at
client weight loss outcomes, demographics, and
program-related data.
Our Scientific Advisory Board continually reviews
the effectiveness, safety, and nutritional benefits
of Medifast’s products and programs. The work
of this cross-displinary group builds on Medifast’s
heritage of medically sound approaches to
weight loss and the incorporation of leading-edge
clinical research into the Company’s products
and programs.
In March 2010 Nutrition Journal published a study
demonstrating the efficacy and health benefits of
the Medifast 5 & 1 Plan.1 Three clinical trials are
now in progress to substantiate the Company’s
product and program claims even further.
Medifast Weight Control Centers are now
equipped with RemedyMD®, a meta-registry
These data allow us to continually improve
client experience and results, differentiating
Medifast in the weight loss marketplace with a
new level of efficiency and accountability that
further substantiates the Company’s product and
program claims.
Our Product Development team is focusing on
future products to answer clients’ requests for
additional convenience items, savory Medifast
Meals, and products suitable for breakfast.
1 Davis LM, Coleman C, Kiel J, Rampolla J, Hutchisen T,
Ford L, Andersen WS, Hanlon-Mitola A. Efficacy of a meal
replacement diet plan compared to a food-based diet plan
after a period of weight loss and weight maintenance: a
randomized controlled trial. Nutrition Journal 2010, 9:11.
MEDIFAST SCIENTIFIC ADVISORY BOARD
From left to right: Walter Eugene Egerton III, M.D., Chief Medical Officer, Maryland General Hospital; John
P. Foreyt, Ph.D., Professor, Baylor College of Medicine, Department of Psychiatry and Behavioral Sciences,
Department of Medicine; Guy H. Johnson, Ph.D., President, Johnson Nutrition Solutions, LLC, Executive
Director, the McCormick Science Institute; Debra L. Miller, Ph.D., Director of Nutrition, The Hershey
Company; Lawrence J. Cheskin, M.D., F.A.C.P., Director, Johns Hopkins Weight Management Center; Jeff
S. Volek, Ph.D., RD, Human Performance Laboratory, Associate Professor, Department of Kinesiology,
University of Connecticut
Not pictured: Sylvia B. Rowe, MA, President, SR Strategy, Adjunct Professor, Tufts Freidman School of
Nutrition Science & Policy, Adjunct Professor, University of Massachusetts Amherst
15
People
2010 was a year for major developments in
human capital infrastructure, as the Company laid
the groundwork for accelerated growth through
its employees. In particular, the addition of
experienced executives to several teams further
strengthened our ability to serve our clients, both
internal and external. Overall, the Company
supported business growth by creating
more than 250 new jobs in Texas and
Maryland in the midst of a difficult 2010
economy.
Seeing the potential of the Company to
emerge as a national leader in successful, lasting
weight loss, Medifast consolidated its core
values, mission, and vision in 2010. The Board of
Directors reviewed the Company’s heritage and
outlined a direction for the future, subsequently
distilling a set of enduring ideals that represent
Medifast’s unique culture.
Together with its scientific and technical
achievements, the Company’s human resources
are well-equipped to change the course of health
in America.
16
Medifast u 2010 Annual Report
Business: Sales Channel Technology
In March 2011, Medifast successfully launched
both a new e-commerce platform for its
Medifast Direct and Take Shape For Life channels
and a new in-store operating system for its
Medifast Weight Control Centers.
The e-commerce launch was the largest redesign
and upgrade of e-commerce platforms in the
Company’s history. The Company re-launched
websites for Medifast Direct, its direct-to-
consumer channel, and Take Shape For
Life, its personal coaching channel. The
overhaul reflects the Company’s
dedication to delivering high-quality
websites along with state-of-the-
art e-commerce platforms.
The newly designed co-branded Take
Shape For Life websites provide Health
Coaches the ability to customize an “About
Me” section and create an integrated online
presence, including personal blogs and links to
their social media sites such as Facebook, Twitter,
and YouTube.
The new operating system for Medifast Weight
Control Centers, complete with customer data
tracking tools, is designed to provide both a
consumer-facing and an employee-facing system.
It is created with analytic tools that communicate
the members progress during their weight loss
and weight-maintenance journeys.
Medifast sees this system providing
comprehensive support and data tracking
functions to assist the member in reaching their
personalized weight-loss goals, while providing
efficiency and scalability for the business and in-
center employees.
On the communications front, a full system
upgrade of the Company’s phone system
improved continuity in the contact center, as well
as scalability for future expansion.
Through the acquisition of additional office space,
a new headquarters for Take Shape For Life was
established at the Owings Mills campus.
17
Business: Supply Chain Technology
Extensive systems integration
upgrades to our order
processing structure enabled
Medifast to accelerate from
300 to 700 orders handled per
hour (12,000 orders per day
with three shifts), effectively
eliminating order back-up in the
Company’s distribution centers
during high-volume ordering
periods.
On July 6, 2010, Medifast
opened a 50,000-square-foot
distribution center in Coppell,
Texas, just outside of Dallas, to
support West Coast shipping
and customer service for
Medifast Direct, Take Shape
For Life, and Medifast Weight
Control Centers. The Texas
Distribution Center, equipped
with an automation conveyer
pick-and-pack system, provides
disaster and recovery backup
for the company’s fulfillment
operation, as well as for the
Maryland-based customer
contact center.
The Company also upgraded
its interoffice network to
accommodate the new Texas
Distribution Center and
additional office space
on the Owings
Mills campus in
Maryland. A
new enterprise
computer patch
management
system and anti-
virus platform ensure
increased security and
efficiency across all teams.
18
Medifast u 2010 Annual Report
The Medifast Formula
These ideals were released to employees as The Medifast
Formula in late 2010. The Medifast Formula serves as a blueprint
for the Company’s employees, outlining our vision, mission, and
purpose—a unique asset in the industry—and a set of criteria
for developing personnel.
Vision
We provide hope, health, and happiness for millions of
Americans through clinically proven weight-management
products, programs, and support.
Mission
Medifast combats the obesity epidemic and improves the
health of our nation in two ways: first, through clinically proven
weight-management products and protocols; and second,
through multiple, innovative support programs.
Values
Committed to core values
u Our integrity and ethics are based on moral
values and the Golden Rule.
u Leadership means setting high standards and a positive
personal example.
u Focused, results-driven teamwork by Medifast employees
collaborating to achieve shared goals improves our Company
more than any one individual or entity.
u We trust one another and forgive honest mistakes.
u We promote learning and education as a vehicle for
personal development.
u We are committed to personal health and wellness.
u We reward innovation and initiative.
Guided by our core values, we create the ultimate client
experience through performance management.
u We value diversity as a strength and asset—to Medifast
and to our world.
u We are good citizens and active members of our community.
Dedicated to performance management
u We are committed to the efficiency and profitability of
the Company.
u Successful growth requires honest and robust
communication throughout our organization.
u Professional development is the responsibility of both the
Company and the individual.
u Measurement and feedback are essential to the continuous
improvement of our people and processes.
u Our agility and flexibility are keys to meeting the evolving
needs of our clients and the challenges of our changing
environment.
19
2010 BUSINESS
ACHIEVEMENTS
Medifast is named:
u #7 – Fortune’s Top companies:
Best investments
u #29 – Fortune’s 100 Fastest
Growing Companies
u #43 – Fortune’s Top companies:
Sales growth
u #75 – Fortune’s Top companies:
Profit growth
20
Medifast u 2010 Annual Report
FUTURE
SUCCESS:
CUSTOMER
EXPERIENCE
DEFINED BY
CHOICE
u Four channels that ensure each client can choose the best
means to achieve their individual and personal success
u A wide selection of high quality products and protocols
throughout each of our multiple, innovative support programs
u Close attention to individuals’ goals and needs, and careful
listening that yields deeper understanding and supports
optimal choices for each client
u Employee empowerment at all levels to serve our clients’
every need and offer them more options to create health
21
Medifast Peer Comparison Charts
With record revenues in 2010, Medifast has been able to post best
in class performance metrics for growth, liquidity, and shareholder
earnings. Medifast will continue its commitment to the sound
business practice that has brought 45 consecutive quarters of
business profitability and a 44% combined aggregate growth
rate in our business since 1999—far exceeding the long-term
performance of our national competitors for the same time period.
The financial comparison charts have been put together using
reliable third-party private and public financial information.
Medifast, Inc. does not warrant the accuracy or reliability of this
information but makes this comparison as a best effort to show
the financial performance indicators of Medifast compared to
other public companies in the weight-loss industry.
22
Medifast u 2010 Annual Report
23
Medifast Peer Comparison Charts
The “Quick Ratio,” aka “Liquid Ratio” or “Acid Test,” measures the ability of a company to use its near cash or quick assets to extinguish
or retire its current liabilities immediately. Quick assets include those current assets that presumably can be quickly converted to cash at
close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.
24
Medifast u 2010 Annual Report
25
57
THE CHOICE IS YOURS
11445 Cro nhill Dr ive u Owi ngs Mills, Ma r yland 21117 u 2010 Annual Report