Nutrisystem 2010 Annual Report Download - page 46

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Year Ended December 31,
2010 2009 2008
REVENUE ..................................................... $509,515 $524,618 $686,181
COSTS AND EXPENSES:
Cost of revenue .............................................. 224,806 241,163 325,172
Marketing .................................................. 145,868 146,426 174,862
General and administrative .................................... 73,853 76,418 86,701
Depreciation and amortization .................................. 11,773 11,177 8,093
Total costs and expenses .................................. 456,300 475,184 594,828
Operating income from continuing operations ................. 53,215 49,434 91,353
OTHER (EXPENSE) INCOME ..................................... (32) 407 (1,145)
EQUITY AND IMPAIRMENT LOSS (NOTE 7) ....................... — (4,000) (9,458)
INTEREST INCOME, net ......................................... 5 104 454
Income from continuing operations before income taxes ............. 53,188 45,945 81,204
INCOME TAXES ............................................... 19,309 13,072 34,018
Income from continuing operations .............................. 33,879 32,873 47,186
DISCONTINUED OPERATIONS (NOTE 12):
Loss on discontinued operations, net of income tax benefit of $566 in
2010, $2,398 in 2009 and $548 in 2008 ......................... (242) (4,083) (933)
Net income ................................................. $ 33,637 $ 28,790 $ 46,253
BASIC INCOME PER COMMON SHARE:
Income from continuing operations .............................. $ 1.14 $ 1.07 $ 1.50
Loss on discontinued operations ................................ (0.01) (0.14) (0.03)
Net income ................................................. $ 1.13 $ 0.93 $ 1.47
DILUTED INCOME PER COMMON SHARE:
Income from continuing operations .............................. $ 1.13 $ 1.06 $ 1.48
Loss on discontinued operations ................................ (0.01) (0.14) (0.03)
Net income ................................................. $ 1.12 $ 0.92 $ 1.45
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic ...................................................... 28,312 29,458 30,684
Diluted .................................................... 28,686 29,769 31,172
Dividends declared per common share ............................... $ 0.70 $ 0.70 $ 0.53
The accompanying notes are an integral part of these consolidated financial statements.
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