Tivity Health (TVTY) 9 May 192019 Q1 Earnings call transcript

Good afternoon, and welcome to Tivity Health First Quarter 2019 Financial Results Conference Call. Today’s call is being recorded and will be available for replay beginning today and through May 15, 2019 by dialing 800-585-8367. The replay passcode is 1976866. The replay may also be accessed for the next 12 months on the Company’s website. To the extent any non-GAAP financial measures is disclosed in today’s call, you will also find a reconciliation of that measure to the most directly comparable financial measure calculated in accordance with GAAP in today’s news release, which is also posted on the Company’s website. expected contain Litigation within including XXXX Reform others, Tivity may the meaning statements and call operating regarding Securities annual Private Act Health’s beyond. conference forward-looking performance the statements of among and This financial and for quarterly of XXXX,

intended statements forward-looking believes, For purpose, are statements. similar the the words not Without plans, statements. made fact expects maybe expressions call that during limiting identify this historical this deemed anticipates, and statements are any forward-looking of to to be foregoing,

company hereby now result cautioned information, of materially call the turn forward-looking And with obligation statements. in release. update and to are those forward-looking And any new from over a Tivity Mr. the results set that You Commission Chief be these news discussed differ otherwise. filings affected statements I’ll important forth the consequently, as statements or actual Executive by the undertakes Health’s others, no Officer, Exchange whether Company’s today’s Donato may the Securities operations Tramuto. and factors, and to events among in The may future in results publicly

You may sir. begin,

results talented and on about have are this and very thank execution. has the what me who President fierce thank the focused first recognize, Health’s today. and than CFO efforts Initiatives; opportunity to following positive everyone joined combined very Nutrisystem; who in Chief Tommy with Nutrisystem’s delivered our much. Integration prepared namely Dawn and Lewis, I you have President the formally results to and to X,XXX Tivity all during company, The I we more and now, Chief our Welcome, remarks. colleagues to our session will Operating the team are call Mike Relations we and Zier a Officer; have and take you, Officer, mission-driven and whose Thank Executive want Adam and we question-and-answer highlight. come to Holland, colleagues support of quarter as Monahan, who our CFO; be as former well Investor of first available leads who

As I’d noted first very that comment in and quarter five like on. areas my opening I with today pleased to our there key financial am are results statement,

in and performing adjusted EBITDA Nutrition First, segments indicated our this strong independently and Healthcare our quarter, as for revenue are results and well. and

in in March in January Second, more starts lower we on spend. division, our Nutrition new had than

on of strengthens SilverSneakers Third, tally key prior to than and back the And tuned. believe, this SilverSneakers growth Stay we adding be that strategy. our the we XXXX the our as respond very and marketing efforts. and A-B-C-D our completed, A-B-C-D digital the into across related our premise. strategy existing Nutrisystem with addition the momentum champion expansion And to that digital be complements we and The acquisition that the we of our continue The the SilverSneakers from of drive supporting years Fourth, greater and now targeting, of allow will with validated team. to Nutrisystem, and now a my execute Under direct-to-consumer for entire positive new premise is division, acquisition business strategy. and television both assets A-B-C-D our of season we And combination direct-to-consumer in to pipeline, for cross both embraced now awareness, efforts throughout this, X.X intentionally in marketing first this winning not as and ago to CEO our spectrum, notion to results arenas and had increase today and will have yet divisions now more members more that over. pleased we’ll have levers Healthcare one path we selling direct-to-consumer our long-standing you million strategy, fitness are continue to success an lives is customers years, I’m to believe, the engage down remind in me with television, the enrollment eligible leadership expands loss launch channels area some nutrition announcing be related well that the tenure both a the wins our we Simply initial we distribution SilverSneakers two growth first quick of focus and promotional drive for nearly and stated, report the quarter, initiatives. the opportunities more and validated lastly and members. to media precision-based have XXXX. prior with

combination of quickly this this the we’ll Allow for of highlight during around benefiting our manifested a strategy where quarter are this how run the we’re brands, better first plans strategy. through Adam frame To to ask powerful the our will and high-level and elaborate at XXXX. Dawn We our me two from I to on together. truly element each remaining A-B-C-D and

new generate building proprietary about in engagement consumer members strengthens solutions. you potential it of engagement. power. sauce modifications, or dimensional media with and a As is will increase for that Nutrisystem extensive the an getting to for activity, expertise behavioral adding secret partnerships A brings remember, SilverSneakers physical that members sustain so and promising very also And awareness collaboration nutrition introduce organization. and and their and to new buying and focuses segment table elements know, Nutrisystem precision revenue social. you each of conversely, database, the around be They business B to as strategy Tivity customers services the new products and the our on breadth to is bring fitness whether about C, the their wide critical bring a

can across they and generate members of know telegraphed XX we not more members plans thing are with are Over like XX is health tollbooths. contracts, last employer for products. a that for revenues we that we nearly about have and million a I One they highway looking product years, all rather eligible a the looking from two the highway members and traffic

for Net revenues additional to the increase traffic. base for the in opportunity have quite opportunities With increase of three we the years, and stakeholder central and consistently our with relationships our new other products trusting Promoter last Score leverage to play XX entire offer

to will more the early comments. what new to for our the success D about details tuned offering prepared will clearly explored XXXX then first this segment see while to quarter will this and financials are that Dawn detail, to Healthcare And review from A-B-C-D relationships transaction, benefit I’ll opportunity Adam? like over for this in first being strategy can related partners. strategy. more business You is overview, discuss Stay Nutrition on summary, highlights of each learn can immediately call we the how with out turn more opportunities signs Adam the the related Dawn’s under for deepening about flush as our outlook quarter and In and the look With you future. divisions. this

everyone. and Donato, afternoon you, good Thank

we the our highlighted Nutrisystem quarter by achievements X. of March Donato on pleased indicated, with acquisition this our As completion of are

and with the for So organization. XXXX, integration we have have Nutrisystem We prioritized operating adjusted of priorities. brands, been as now to combined against execution several Nutrisystem, pleased metrics against a across those core perform standalone days Both XX core basis report on revenue along company I’m businesses key EBITDA. that our the well and SilverSneakers are two including and we delivering and one

hope we and Further, remainder our you with outlook press QX provided information your non-GAAP will includes XXXX. related in reconciliation aid tables financial please of results investor that today’s on For reference, the for we supplemental understanding website release our explanations. note relations

our as will reported operating legacy incentives. healthcare our we Tivity now the Nutrisystem segment. for nutrition forward, along and The Going with be reporting business combined business legacy is reported the businesses as results two is distinct segment

Turning entire the results full of forecast, million, only segment XX% was million of revenue first of QX combined million quarter and of the last results our quarter Net million nutrition X March last XXXX. XXXX to income to XXXX both of net results over year. income now include $XXX.X in compared compared first results. from the $XX.X $X.X QX The was combined QX healthcare year $XX.X year. first million for the segment March through quarter in for increase to XX. $XX.X and Adjusted financial Total for our an

a again, with acquisition share connection adjustment QX $X.XX, earnings for acquisition adjustments for with items, Nutrisystem. of $X.XX the per As restructuring diluted certain adjusted items diluted the in diluted the EBITDA of adjusted per share income pre-tax and net first connection first tax acquisition, certain and for Nutrisystem. was per in earnings quarter the the share of reminder, earnings first adjusted excludes Adjusted excludes quarter excludes costs XXXX $XX.X with of for million. integration which incurred quarter,

segment. Moving on to healthcare the

growing hybrid from partially UnitedHealthcare we were exceeded million, segment expectations of due over total based revenue to first increase Our revenue contracts, SilverSneakers loss under The in results same offset segment decrease previously the including a revenues period of more quarter X.X% SilverSneakers the positive SilverSneakers SilverSneakers over in generated $XXX.X an XX% to segment of QX represented lives, of by or of continues revenue discussed. well. $XXX visits generating QX. XXXX. healthcare million, lives revenue our XXXX, eligible These members perform X.X% during

eligible our by As each may of hybrid our participating our for payment you plans XX% contract, know, are approximately lives we SilverSneakers locations. to visit from member receive whereby of one under our

an Prime period member last $XX.X QX visits or by same year. increase with stated, XXXX pleased per the of was quarter, Donato driven for million, $XX.X potential net and part Fitness in XX% in revenue SilverSneakers the over this accounted of XXXX believe A-B-C-D total Total very XX,XXX increase million Hybrid member year. Prime’s and visits X.X% the subscribers. of of made XX% paid in visits. of XX% growth As increase approximately total a validates a for per over with we revenue the QX month outcome were over visits it of last balance are strategy. for up QX

member net last prime QX Our with and quarter the We growth. marketing new first successful pay was a XX% strong year. over approximately XXX,XXX increase prior in number subscribers, pay resulted ended campaign

segment Our to healthcare the add to giving back for non-GAAP two XX.X% of for segment the the first adjusted year. the the influence after moment Allow as to a last segment discuss factors QX EBITDA that or healthcare adjusted million QX of revenues me totaled quarter $XX.X compared profile key acquisition. to effect EBITDA

of SilverSneakers adjusted approximately loaded of XXXX to year primarily front XXXX the and first our million of segment marketing total television to healthcare for of quarter was million the a compared a in EBITDA QX prior influencing XXXX, advertising. digital both $X.X marketing Prime nature First, $X.X expense resulted the This for for in and expense our period.

For we to healthcare $XX for total our anticipate segment fiscal million. approximate the marketing XXXX, expense

in we our with line guidance to expectations compared The second visit from factor that our had influence our was in was last and EBITDA slight cost in in This increase XXXX QX is per February. year. reflected

visits our optimize generating which the while media year investment, we outcome. also will for media with from we visits, program use responded TV In have cost expectations, SilverSneakers the to at creating to PMPM based Aside That evaluate significantly the for from this a first member said, than these campaign levels of thereby more non-revenue as benefit the learn of was we a visits and our modify expected. campaign, lesson of believe SilverSneakers, more success hybrid that exceeded number and to who, experienced year. summary, next the revenue media means our the members, program positive note grow to we very their took of rest SilverSneakers in QX our visit our media enrolled impacted

segment. nutrition to Turning the now

for March last XX nutrition segments the be QX days through to quarter. those speaking from of Our are results I’ll days reported March XXXX XX. XX X

our related transaction, to of Similar excludes million. integration healthcare with delivered EBITDA quarter. segment, the EBITDA this restructuring $XX.X costs in adjusted revenue segment For incurred nutrition the during $XX.X period, and million adjusted

two channels, segment generates Our nutrition through retail. revenue of primary its a and direct-to-consumer majority distribution

previous than to loss Our who well, the original is our cadence the weight March along typically up our The performing is expectations. programs goals. still orders saw to customer anticipate sign due compared a channel slightly timing segment direct-to-consumer XXXX multi-month of year. in in customers stay early customers, improvement while a for year-over-year length it acquires their address boarding. the to on starts, in revenue years, be We our in shift of to different with increase

expect to revenue Given higher March’s orders. as customers of take percentage QX, in these subsequent and QX XXXX acquiring customers, we slightly strong a see delivered performance

we are as Additionally, year-over-year optimize portfolio. the to to continue projected our gross period margins improve comparative versus

Finally, to the delivering channel retail plan. is

closing a with loans. entered report Nutrisystem of as our Turning loan that million term on to amounts into I’m borrowed a we pleased conjunction revolving well balance repaid In credit billion, today’s of as to B of sheet. on X, the $XX we loan as the acquisition senior $XXX which term A a approximately agreement provided $X.XX the secured facility. totaling term facility million of and March initial Tivity call,

continue amount free We to flow. to this to in we are businesses confident combined because manageable ability paydown the to cash our of generate expect continue leverage strong

the range would to approximately $X.XX the million segments Turning to $X quarter of includes million and to reflects of XXXX. X diluted for the adjusted to equate want XX, savings to Non-GAAP which XXXX. results we billion. starting million, of have billion our $XXX $X.XX. in that $X.XXX synergy guidance total of revenue on our to earnings the Today outlook we to adjusted share $X.XXX full February to have $XXX in deliver affirmed our million expectation We in per approximately Nutrition range This for EBITDA XXXX. not $XX reemphasize cost guidance first I issued March on of the anticipate XXXX. do

interest Our approximately XX contemplates $XX for million two million, four. including between of capital million Free million, expenditures cash of cash approximately expense And million. including shares $XX rate to and interest interest through for $XX flow diluted reflecting XX% $XX tax approximately million. $XX guidance to a quarters non-cash of approximately million paid weighted $XX average of

We very prospects the to to X.X and excited we XXXX. by times continue end than about are leverage goal the return debt in will expect less the for In of paydown company. summary, the

Dawn? I Thanks the the will long-term on over Dawn. integration again, our call progress to growth Our turn now and and opportunity.

Adam. you, Thank

Donato first Adam and solid his just mentioned shared Nutrition opening the and segments quarter. Healthcare in remarks, has both As

to the For the higher strong XX% incremental anticipated XXXX the first quarter period a our television flagship up same first ever the member were SilverSneakers’ of business in over SilverSneakers were website to initiatives In of visits from SilverSneakers than has enrollments of proven addition be and campaign success. driver XXXX. XX% the engagement

with will February of push visits. in revenue This hybrid will in across to board, SilverSneakers our plan Nutrisystem’s healthcare million standpoint, we were the digital From the engage January and in up our $XX will we’re robust this Prime As We the Fitness believe television infuse members. and be more Based Nutrisystem’s result $X to in drive a engagement a original promise today, and division increased on XXXX as including our eligibility engagement. for reach and how direct believe inbound calls as designed competencies core Nutrisystem’s a leveraging indicators All million checks. XXXX XXXX continued on to quickly we February. capabilities and leading marketing about especially marketing that SilverSneakers media to excited area. awareness know we that combined pilot, eligible leverage the was enrollment and from success drive to for precision in programs extensive show consumer for successful forecast line SilverSneakers our of pilots benefit and front, developing to SilverSneakers

are engagement business. leverage awareness earlier, points driving stated and Donato significant our As for

$XX every in members into enrolled example, to revenue. XXX,XXX $XX translates million million additional For

call. an this just XXXX updates Humana to has already and social of In problem those we go feel our continue lives where fourth we XXX,XXX quarter and one locations SilverSneakers Please that can is of loneliness the leadership issue head earnings also We’ve Medicare them us if February. the lonely. start. are active more this with strategy, good a season not Donato season to year. C is growing proud call added than discussed for on that’s helps second selling health time this keep has members population. address have potentially to is the and invite for to to selling cohort, opportunity past new them one per lost we $X in the a offset among to the the provide past also in already million that plan more a on the them to engage to over or will mind SilverSneakers addressed position model Humana and off to today’s class. to $X who XXX,XXX million with over senior the I’m The They’ve socially build activity engaged announce a this involved health of get members continuing to isolated or isolation predictive course gym, month, to We our advantage with in quarters, taking partnering on. An as identify developed very of get of allowed our during example a quarter

The ongoing results favorable costs. In net Fitness overall our and the members and publish ideally and their by an the with trending these year is the having we we’re Prime positively of We’re business, coming dialogue claims seeing to to measuring prove can and this than impact on health subscriptions medical a in goal them for healthcare including study end those of cancellations engage that loneliness, impact and lower the members’ new indicators positive lives. expected we’re quarter.

implement call, discussed plan this on an program associate the with summer. we QX earnings to As we Walmart

about our initiatives is this of excited will pursuing be Walmart with We’re we several the and new first with that them. partnership

also other Prime. associate able We successful on Walmart employers of program, believe be based the that to rollout to attract large a we’ll

Now encompasses South Nutrisystem to Beach our the brands. Diet Nutrition turning both and which segment,

back far program, on back sources cut our spend, funnel creative than it we which television call as the weeks our On the that plan. we in deliberate we made to some new the we more diet as Nutrisystem January. started of mid to were top while introduce of February believe on digital built first too in I adjustments the that anticipated, in beginning finished last lay focused media softer see quarter mentioned and six strong value our we season momentum expanding of

March higher lower finishing the starts strong a we January result, with a had than quarter to customer spend. close As on

For of to prior year, the than starts year. we’re the expecting stronger remainder customer be

offering South options TV efforts focus more Diet, expand our our we as efforts towards do on yourself and keto-friendly continue we spend For Beach a are Nutrisystem differentiate this more target product by with to media digital customer. our to back dialing from migrating it

We’re also customer. and XXXX Beach have retail first planning in secured with to launch several in pilots our South

bringing and of value the companies performing of are together our Lastly, the talk about both customer programs steps to I’d returning offerings reactivation brands. well of realize taking strong we’re these our carte now one under like to two roof. across combined

plans proud year, to we’re We’ll several and Nutrisystem science prioritizing take brands. RFPs and our December, in nutrition personalized lead From expertise around acquisition our focus and solutions we’re received conditions consumer from in We’ll this a the partner which on our continue the and front. nutrition studies When on product continue nutrition development announced began area. included we to needs and innovate on potential are the around interested approach solutions. plans and this Health of weight solutions able to nutrition of and integration is be loss and focused and the inbound a also health and chronic ways holistic personalized facing SilverSneakers that have food, based Tivity efforts around serve For science broader the to inquiries food was perspective, back already for management, innovation based behind a we’ll develop programs health as imperative receiving insecurities.

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engagement During with first mindset the leadership deepening health plans and fitness to in months, it’s two strong their already creating been as with end part the consumer partners. Tivity for invigorating around Health and awareness evolution team, coupled of my relationships place the and the see

partner and that reduce divisional my is plans opportunity There’s solutions performance the synergies engagement based that precision there’s way I based SilverSneakers South for already this the close the opportunity company outcomes To significant on lead the that the and health to and acquisition. this to to by products design touched tremendous unlock. capitalize Nutrisystem, over relationships. today, strategy. time significant as Beach Prime nutrition and I BodyBlueprint opportunity Health on to DNA health for we’ve leverage for gained further think working brands of to I’ll capabilities better Tivity and also Just plan our cross on update A develops costs, comments which provide been the an

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we of the e-mail visited delivered their the check eligibility. We’ll encouraging them portal to XX% calls an our also the there members do and contact center. of We finally, And sent opportunity customers that believe to the alone eligibility within April, Nutrisystem centers call that is promotion. we continue from e-mailed, integration these late single began more. to efforts testing So refine started and Nutrisystem cross in promoting SilverSneakers SilverSneakers e-mail, to check their

start the will these early We these quick evaluating incremental wins still revenue provide synergies. of results we’re believe While initiative.

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[Operator from question Your Fitzgerald. with Instructions] Cantor Steve Halper first comes

Your is open. line

Medicare their are designed Nutrisystem, January, follow-up. in thinking your And more have the about able planned marketing have a bit is color it terms then of and that – will happen you customers benefits you should nutrition question be confident quarters? other XXXX in that benefit would I you But what we was Nutrisystem using you subsequent as Hi, a more for for you, know your benefit? detail February, will Advantage I provide question. bit that just changed be really be would you it’s on appreciate one taken just on approach. helpful, weak, a and helpful the little Could little question that because

this is Hi, Dawn.

February with question. start the me January, Let

and was addressable our based February up And But what of factors did different March. in happens, start than the television a believe offerings for that and all, and are weaker were off for trends seeing, we little And saw ended expected the services what reasons. advertisements so doing our environment revamped first markets both customer we very acquisition in for large. we and many digital macro improvements we on January and products

and provided. starts as is slightly in year. And So for the the of on I strong cadence track. back confident our we business business ahead feel that that guidance this shifting very we’re March is go we in came the definitely

Go Donato. Okay, thank you. Yes. ahead

closed, this number we by that have been that acquisition and the Since we’re telephone now Hi RFPs of the Donato. it’s come Steve, in, announced we of calls enlightened very have inquiries. number

be to now We And would look certainly in so might our one out with certainly of that a like them have you is I’ll we file, or as in plans. caution we if where can XXXX, relationship will, the pilots health like Tivity. that Nutrisystem position, now file set and things what are discussing a with that

So we play. in are active

opportunity not here what the certainly fruits grabbing, stated think, that we’re have I does filings. low-hanging special Dawn need post-discharge any today, we

We coming to there. are in RFPs are responding that

I future that you So what holds my are tell by us. for think the we voice certainly can optimistic

you. thank Okay,

from question Capital. comes with next Craig-Hallum Fuhrman Your Alex

line Your open. is

core that Great. Nutrisystem of fitness Thanks your we SilverSneakers? you for sale might questions sure Nutrisystem if be XXXX, a for through many has initial be rebounded when is versus thousands guidance see could curious curious the ever locations then be very with Diet business that of the my time Couple wanted how brand work Nutrisystem And partner question. that to was gave Nutrisystem, Want to here of questions. new will the for South line I you offered that gave to I’m a couple see certainly but of target brand? for give some initial when expect March. is really the for much newer sense that Beach what in if us to much could ask not you guidance that taking about the a nice

again. with Alex, be you to nice Hi speaking

disclose we this posted – will different at as fitness exploring regarding you to we there, with you partner different can partnership moment. the actively nothing are but go So specific forward. have that keep out we sure But be

not they the move We’re year and of program I am the breakout for but also, metrics we commenting the and we that that are as on key at brands, metrics going look at pleased as this time, total on around all different different details to at the up forward. two be I’m starts of looking on other stay length

to on competing focus XX all are brands, core where with going. Nutrisystem, in these Again, and post XX our been efforts, SilverSneakers happy are are company with we’ve which primarily along for days considerable. electing one for are we with Given pretty priorities and XXXX, integration two company the we really days, close

We’re seen improvements in television.

We’re digital. driving more

plan now be stated started this year the doing are the we we’re So things we to on on at that softer track. for that that beginning and out really going back of definitely

normal about Thanks, helpful. a just thinking exceeded about Dawn. of normal starts that a how pace January saw basis, to the of how your sense the just just us think? is multi-year seasonality would a come a your seems I’m of of year, in how you business, March January. new certainly really like just many get in give business? to Can comment that relative unusual of you relative new would QX kind on then or that of trying I turnaround That’s given to the any sense in that, And starts typically quite your historical whole

stronger But as as how in I I place January, do an it, look team new before. things can happen it quick we definitely a differently. say and And conditions, think to different about can that think coming at we I it’s under then than hadn’t the out get creative little my goes March tenure, anomaly. seen to Yes, react

that in with I’m on as and what able the March deliver. So to seeing nature guidance action ahead pleased I’m pursued and what really be with looking will pleased the oriented I’m team for the full year

Thank you very That’s great. much.

Thank you, Al.

from next with And Naidu Mohan your Oppenheimer. comes question

line Your open. is

do strategy my on do leverage different utilization can drive to you turn care for Donato, more media have Thanks the enrollment. side, And you drive the more to for to these on how Or that. much efforts use a you as need taking health well. efforts questions.

Mohan, doing? Great how you question.

we X million enrolled, defined have activity. of (XX:XX) is of some nearly do that want so them. half the at And X.X we the We that X.X XX members. XX have million, [indiscernible] number around teetering to enrolled. remember, million million form physical And About when out million know you look of

And an so do we math, the have enormous opportunity.

know, I’ve been telegraphing you the for last As this few years.

people love Our know SilverSneakers know not biggest it, that, is enough it. who problem about those

strategy the years so worked results you’ve beauty did that we we the of digital and we the are that February was January a experimented the heard move was with have now that And ago two signal in what great the and needle. can today, fact really this and

upset it. our to good would to year. would in works, our design, been we to we let’s and that how the entire throw it what plan Imagine, now think the you optimism media is degree have this I let’s water are and next toe year and we us the design These media the we think deliberately that body begin And with. reality I The for will know what water. is by a results. with tune the if in I put Now year And have fine have is it had experts much? we work. Dawn This think didn’t I help committed me, we

So for XXXX. like what that tuned stay looks for

Okay, driving would contracts? comments target have visits. to really that that makes guess, a do you some going that I you specific around focusing useful. that one? How color be Any made on think hybrid plan Adam on generating more revenue sense. I are And about geographies

fitness quarter centers Adam. Hey, Mohan. marketing as it. crystal was the were thing to first and the the at on to happen. a the to lot push SilverSneakers biggest going we SilverSneakers, just us advertise gym, back subscribers to that This you fit And see all but of weather, when the true clear piece year, trying year, enrollment it, get beyond quarter, to from a same what commercials as in chains spin holds prime of high of the television time if members naturally be efforts in learned flu that is the go unfortunately, national just first That became that’s think that’s in marketing last to for the later for One the the well. its it Yes. is a the not we employ effected XXXX our

get SilverSneakers we quarter, So to we drove precision marketing. in first shifted to revenue prime the the to and the

it’s legacy certainly though the piece. going to of be to to is we gets going and take think are a piece. business. is channel frankly I This then team Dawn’s a is take nuanced the Tivity It few the The more things. much is a more down expert areas to going geography where really an

it, couple plan months, of was for all along And the so run did. we which it first the

is continue to will that SilverSneakers spend season several because for how of As can enrollment the learn the months, come on and next We’ll in our vast us. in on. to for majority now attribution remember take the of the will see, continued marketing you with data behind the And from over use we Nutrisystem live apply members visits that go that XXXX. data models the

Fitness contract on Thanks, Adam. already? Maybe Prime follow-up one and Is live Walmart side. contributing the is up it quick on,

No, the in for that’ll later be year.

so much. thank you Okay,

Thank you.

Blair. from Your next with William question comes Nick Spiekhout

Your line is open.

focus Hey, of a question. kind health academic planned have medical like particular, guys target any kind determinants larger for my centers are a of to social seems lot taking the you guys, – or systems I health in you of guess food the was lot I start, and on guys of if as of thanks curious medicine. targeting

for pretty nutrition segment like market So be right the it it would a there. seems

any you those target all. So have plans it was of to if wondering kind at

appropriate. Yes. anyone at risk who It’s have is would company as a for dollar, great the that are you we be I healthcare seen swat. the But alluding the have question. absolutely programs And

about So what we today. XX here enormous, relationships plans. have an we have health And great with

health various the of opportunity, in so of opportunity the great with we because exclude encouraged on how It I’ve doesn’t in the in first. opportunity, meeting the forgetting broaden these I had what and their any of the have. extremely last to to we of months of plans, those return we opportunity. few and we months, terms us the over terms is think that SilverSneakers investment. I’ve And we have But hit and opportunity have number future, we’re health now relationship CEOs plans next can proven have right And think of through the these I ability a the been that the a that

let’s it first to expand go opportunities. them begin groups of after other into then So and

end. those in receptive, with they’re bit with more feedback? are kind Nutrisystems, you wondering getting seem sense. makes the That like they conversation in going the don’t offering you of you were that great. go little Do along guess And then, to I really said at just But was willing I your that I moment. a gyms, color good on you, this know, gyms to anything Got guess have works or the

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doing We’re research. our own

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proposition in of the it integrated see can does division. also health can will, the our really if more but The them. position that provides those opportunity You for get tighter solidify, with with for it an terms you centers, fitness nutrition division, the value we

thing. color. I more guess, That’s one Great. helpful

far of milestones that after finished key you’re integration, any the so have rest the big you forward looking go, any far XXXX? of going as year? kind in there wins Is As to

Well, second. I hand Tom it to over will in a

enormous that we One of their who in few saw the I ago, Dawn, to weeks call of diligence Nutrisystem our that of and will, area decision correct center is you terms in of provides calls calls due do accepting the if a talk others? things But me outbound the you here amount just to if two ago, with that we associate advantage inbound I’m about and benefits. in center. one provides, every did want We integrating was we’re very revenue than wrong. more weeks making really cost that Tom huge have made integration impressed a call state-of-the-art. opportunity with my The a synergy. during

Hey Nick, hear you. it’s good to from

us. contact benefit from two Aside we offices have already which closed the will center,

third-party spending. procurement our relationships, of all evaluating are We our

making progress And cost we’re all synergies. of so good the on

public well spending. We’re a there, it planning technology company, Nutrisystem, type and into governance major information the so of was we’ve that’s a spent. integration Obviously eliminated their

on think I we’re So, plan.

hop I’ll color. Awesome. Great. Thanks Thanks. the for guys back in.

with from comes Dave question next Jefferies. Your Styblo

Your line is open.

well with. the unit. contribution question Obviously the But that bias or out about things said. initial the gets give range relative or guidance. that the end to you Good really like if of the saw? initial I’m from with business in full Maybe longer did you it duration Hi. on have compared range wondering your especially that a the as just with for sort that consistent could was? Thanks upper you you’re of to a is better to as was on the Adam comments, combined Nutrisystem wondering to it they Dawn March. start year perhaps for perhaps guys of a guidance And how a I’m the how days sense there trending more us so or we P&L so questions. starts better, feeling Dawn afternoon. I just to business the XX sounds Are what up pick

would out. business, in believe XX-Q, disclosure revenue this is Dave, Yes, $XXX is the our go I’ll quarter start. Adam. which million. right for first will be whole I a This nutrition this Hey, I legacy at

of waiting monthly May, can you take the into as the the doing the orders cadence you is is We dawn out following about. what months, see to was of the so go the talking unusual March and important basically those Dawn But So said, I business. takeaway is, because that think that because forth. throughout the welcomed for resetting then and cadence it’s shift June April, don’t

that I see up difference and help the laying up between we’re So, terms in what what of and historical will think XXXX. frame cadence you

what the Okay. Yes, expected with that I quarter. sounds like spot first that on for was – full

put what And February. in that out was also in range with we had

Okay. And strategic question a for of Donato. more maybe then just opportunities

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opportunity? different Nutrisystem all synergy obviously would As working to parties upside first? created type sales might the so more additional you through what these look with happen imagine different Are from you’re contribution you see fitness forward, on more revenue or we arrangements that the likely where

it great all. it’s and Well, question, a to have like I

and low media So, to members for fruit I that because XX us we like million there it are approximately this. have have you. fruits defined answer think That’s registered. the a is let hanging hanging me have low right Certainly, one that some certainly not now we

a significant who databases. out an XX% that up the that to sent see email received and very the was I very as sign, This good they those a email opened So of exchange nearly These Dawn related you that email. opportunity.

model, four if so take coming four perhaps a wrapped opportunity caregiver around think for a that is you approved months. three Nutrisystem in. CMS of us reimbursement. the But gets advantage weeks, four-week that a gave to an there’s honestly, extend really if or and orders will, elected opportunity to they there that’s the an And gift. quite gift and We When

to side to as and the with that whole the want give always nutrition see the opportunity the And have nutrition that or a and division. fitness opportunity underestimate the to to channel. I keep So an quite for relationships we’ve centers, don’t fitness Nutrisystem want the frankly, new had the division opportunity strengthen I

that a multiplicity, to one, that are opportunity advantage execution integration. I the to it’s undertaking, we it’s So ensure fierce the benefit think I from think for this it’s there’s speaks to that one-sided, all not not an both sides that

Thanks. Very good.

Deka Nina from comes Piper question with next Jaffray. Your

Your line is open.

for thanks question. taking my Hi,

You’re due describe large the new that to accounts. Can contribution? live that win million is you new X.X or SilverSneakers, adding that several a eligible

I mentioned for a is lives would XXX,XXX that question of number a individual service. to could we’ve safely waiting I don’t new you able that, don’t was we name know say that contracts, than at representative of this they for think and honestly, their And contracts clients I the quite into think but you of are reasons want point. to that get pull number more in. been There that

quarter What I to into the then you Nutrisystem moving confidence that the for required same of forward? level confidence amount going that required thanks. gives gives isn’t of deploy the Okay, marketing And knowledge spending investment you Prime SilverSneakers the every at guess what – and to be networks.

then answer I’ll And Dawn on Well, have it. comment that.

that influx have do months. interest the that of First a in that gym everyday that media this work. to of program. the And into is is to… in know database getting are What our Diet the capture seen interest high to this is doesn’t many it’s know the first is in we time bleach. We so season, is not Dawn, terms seniors at few like most and XX/X you over we that in the the our want very interested the years similar want membership. season of know diet when the we happens all, as we what few interests learned enrollment And we at something restructures last

again, is Yes. broad It’s television on and stroke. –

talks We more awareness, an is what brands. looking So high want that, aware Donato which SilverSneakers people we’re promoter extraordinarily as television drives to net have of score. we for be the

say we’d And do early us will a provides the that that. to television an it that way And a of is well, digital be which is our more the things already to will as do require which – a will television as part which as So marketing, in we can let’s And move we focusing a more. forward. to where year, we on in then targeted be some like job venue the look forward. Health we doing build we into team out and Tivity sophisticated and able engagement, precision go continue require do good will which

have as go ROI we similar So spending, that the media direct mindset that as don’t spend I positive drive thing, forward. media that view Nutrisystem, will a make because think direct-to-consumer negative media with the to to the discipline spend be sure the that we to will we’re we – spending that will a I

that strategy currently looking the for that prepare can QX good sure, then Make thing first in of more as we to it’s robust get think in results more forward the I these and year. led next come I do year. of So tested quarter again, to a in we’ve a and XXXX we insights,

you. Great. Thank

time. There are call the remarks. turn questions this presenters at no the I’ll back for to closing further

you days Thank having XX the last more integration. this right health strategic months, great very our number I our I even remind by with with offerings have it current that is very that much. aligned diligence over my post much of you, believe hope have Make a conversations I’m numerous direction and you our evening. Thank for with the I objectives. and close. is team that joining we integrated good. after market leaders excitement in strategic believe this. commenced which plan their the aligned place. the confident Again, you I speed Very to share we

today’s does call. This conclude conference

now may disconnect. You