Nutrisystem 2008 Annual Report Download - page 45

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Year Ended December 31,
2008 2007 2006
REVENUE ..................................................... $687,741 $776,767 $565,950
COSTS AND EXPENSES:
Cost of revenue .............................................. 338,658 363,874 270,625
Marketing .................................................. 175,027 178,700 118,150
General and administrative .................................... 75,703 65,527 41,655
Depreciation and amortization .................................. 8,508 5,812 2,464
Total costs and expenses .................................. 597,896 613,913 432,894
Operating income from continuing operations ................. 89,845 162,854 133,056
OTHER EXPENSE .............................................. (1,145) (39) —
EQUITY AND IMPAIRMENT LOSS (NOTE 7) ....................... (9,458) (800) —
INTEREST INCOME, net ......................................... 757 3,803 3,591
Income from continuing operations before income taxes ............. 79,999 165,818 136,647
INCOME TAXES ............................................... 33,572 60,871 50,969
Income from continuing operations .............................. 46,427 104,947 85,678
DISCONTINUED OPERATION (NOTE 12):
Loss on discontinued operation, net of income tax benefit of $102 in
2008, $461 in 2007 and $326 in 2006 .......................... (174) (795) (548)
Net income ................................................. $ 46,253 $104,152 $ 85,130
BASIC INCOME PER COMMON SHARE:
Income from continuing operations .............................. $ 1.51 $ 3.05 $ 2.39
Net loss from discontinued operation ............................ — (0.02) (0.01)
Net income ................................................. $ 1.51 $ 3.03 $ 2.38
DILUTED INCOME PER COMMON SHARE:
Income from continuing operations .............................. $ 1.49 $ 2.98 $ 2.30
Net loss from discontinued operation ............................ (0.01) (0.02) (0.01)
Net income ................................................. $ 1.48 $ 2.96 $ 2.29
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic ...................................................... 30,684 34,397 35,800
Diluted .................................................... 31,172 35,171 37,122
The accompanying notes are an integral part of these consolidated financial statements.
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