Tivity Health (NASDAQ:TVTY)
Tivity Health Inc. (NASDAQ:TVTY) received a vote of confidence in their new direction. Chairman Donato Tramuto was named CEO in 2015 and immediately set out to better define the brand and align the business with public perception. They divested themselves of business lines that addressed the entire population health market and directed the company’s efforts at the 50+ age bracket. Investors have responded favorably. TVTY was trading under $10 a year ago and last Friday hit $30.50.
Tivity Health offers the senior community health management programs such as physical and occupational therapy, chiropractic and acupuncture care, and fitness programs. Franklin, TN-based Tivity Health Inc.(NASDAQ:TVTY) uses a proprietary technology platform that produces analytics and predictive modeling to direct customized programs led by Tivity associates. The company’s flagship program is the SilverSneaker fitness program that pays homage to fitness center members that have passed away by spray-painting their sneaker silver and hanging it on the wall so that their memory will be honored.
Tivity Health Inc. (NASDAQ:TVTY) engages the corporate sector by presenting statistics demonstrating that employees with high well-being simply cost less. Tivity claims that the medical costs for high well-being employees are 20% lower than average, while emplyees who report low well-being cost 50% more. Low well-being also hurts performance. One analysis the company points to found an almost $20,000 gap in productivity between surveyed employees with the lowest and highest levels of well-being. Tivity Health (NASDAQ:TVTY) has over 68 million people enrolled in their programs throughout 16,000 fitness and wellness centers including three international facilities.
Sales have improved since 2013 when Tivity Health Inc. (NASDAQ:TVTY) reported a figure of $663.3 million. In 2015 that number improved to $770.6 million. However, the company reported an EPS loss in 2013-2015: -$0.25, -$0.16, and -$0.86. Its cash position is not strong – only $0.02 cash/share which could explain why over 10% of its outstanding shares are held short.
Last week Tivity Health Inc. (NASDAQ:TVTY) reported its Q4 2016 and full year results. For the quarter, revenues were up by 10.1% to $124.9 million. Net income from continuing operations was $12.1 million which represented a YoY increase of 31.2%. For the year, revenues increased from $452.1 million to $501 million and net income from operations rose from $1.18 to $1.47. Importantly 2017 guidance was for revenues in the range of $540 – $550 million. Investors, last Friday, rewarded the company by sending TVTY shares up over 8% on the news.
|Last Price a/o 4:21 PM EST||$ 29.60|
|Market Cap (mlns)||$ 1,060.00|
|Shares Outstanding (mlns)||35.65|
|Share Float (mlns)||35.65|
|Short Interest Ratio||9.28|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.