Nutrisystem 2003 Annual Report Download - page 12

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10
ITEM 2. PROPERTIES
The Company currently leases approximately 54,600 square feet of office and warehouse space in Horsham,
Pennsylvania pursuant to a lease expiring in 2009 at an annual rent of $451,956. Under the lease, the Company will rent
an additional 33,200 feet of adjoining warehouse space beginning in June 2004 at an additional annual rent of $139,839.
As discussed in Item 1, the Company also outsources some of its fulfillment operations. Management believes the
Horsham facility, combined with its outsourced fulfillment capacity, is adequate for the Companys needs for the
foreseeable future.
ITEM 3. LEGAL PROCEEDINGS
On July 3, 2002, certain franchise operators filed a suit against the Company and certain of its affiliates alleging
that the Company has violated the terms of its franchise agreements and certain other trade laws. The suit was filed in
the Circuit Court of the First Judicial Circuit, County of Jackson, State of Illinois. In September 2003, the parties to the
dispute reached a settlement under the auspices of the District Court overseeing the action. The District Court filed an
Order of Dismissal on September 15, 2003, and in December 2003 the settlement was finalized. Under the terms of the
settlement, the plaintiffs have terminated their franchise agreements and now operate as Case Distributors.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS IN THE FOURTH
QUARTER OF FISCAL 2003
None submitted.
PART II
ITEM 5. MARKET FOR REGISTRANTS COMMON STOCK AND RELATED STOCKHOLDER
MATTERS
The Companys common stock traded on the NASDAQ National Market from June 16, 2000 to May 25, 2001,
and currently trades on the NASDAQ OTC Bulletin Board. The Companys common stock trades under the symbol
"THIN." The following table sets forth, for the periods indicated, the high and low closing prices for the Companys
common stock as reported on the NASDAQ OTC Bulletin Board.
High Low
2002 First Quarter $0.88 $0.35
2002 Second Quarter 0.90 0.70
2002 Third Quarter 0.85 0.62
2002 Fourth Quarter 1.10 0.50
2003 First Quarter $0.95 $0.61
2003 Second Quarter 0.82 0.51
2003 Third Quarter 1.50 0.57
2003 Fourth Quarter 2.14 1.16
On March 22, 2004, the closing bid price of the Companys common stock on the NASDAQ OTC Bulletin
Board was $3.10. As of March 22, 2004, the Company had approximately 327 record holders of its common stock.
The Company has not paid any dividends since its inception and currently does not foresee any future dividend
payments. The declaration and payment of dividends in the future will be determined by the Companys Board of
Directors in light of conditions then existing, including the Companys earnings, financial condition, capital
requirements and other factors. See Managements Discussion and Analysis of Financial Condition and Results of
Operations  Liquidity and Capital Resources and other Financial Data.
Recent Sales of Unregistered Securities