Nutrisystem 2014 Annual Report Download - page 3

To Our Stockholders:
Our strong results for fiscal 2014 demonstrate the successful execution of our strategic plan, as well our ability to be
nimble and proactively address evolving consumer needs. I am pleased that we were able to generate double-digit full
year revenue growth of 13% over 2013, and our sixth consecutive quarter of year-over-year revenue growth. In
addition, we saw significant improvements in our margins and bottom line profits in 2014. These results, coupled with
a healthy dividend payout and a positive outlook for 2015, have created meaningful value for our investors.
In 2014, the Nutrisystem team executed against our strategic four-point plan by:
ŠGrowing our direct-to-consumer channel by focusing on key levers with meaningful impact;
ŠLaunching new products and programs at an accelerated pace to existing customers as well as expanding into
new customer segments;
ŠCapturing greater retail market share through both channel and product expansion; and
ŠOperating with excellence and continued cost discipline.
Our product innovation led to the well-received debut of the Nutrisystem Fast 5™ kit, a one-week kick-start that can
help customers lose five pounds in their first week of dieting. We also completed the national roll out of our
JumpstartTM your Weight Loss Kits in Walmart and began to offer additional products and expand into other channels
as we began to fully embrace our opportunity as an omni-channel retailer. We launched NuMi®by Nutrisystem – a
state-of-the-art digital weight loss app – becoming the first in our category to integrate with a wide array of wearable
fitness devices and Apple HealthKit to complement our structured food programs. We continued to offer more variety
than any of our competitors in both the Ready-To-Go (RTG) and Frozen categories and began to test Fresh options to
targeted customer segments.
Weight management is a large and growing category. Over 160 million adults in the U.S. are overweight. At any one
time, over 85 million of them are trying to lose weight and another 48 million are actively trying to prevent weight
gain.
We have a powerful brand that has helped millions of customers who struggle with weight issues become healthier,
more confident versions of themselves. We not only offer hope, we deliver concrete results by providing a safe and
nutritionally balanced program that eliminates the guess work and teaches people about portion control in a way that
sets them up for success.
We enter 2015 with the groundwork laid and the building blocks in place to begin a new chapter of sustainable growth,
innovation, and profitability. Growth will be fueled by the positive momentum generated this year along with a
commitment to deliver solutions to consumers across the weight management spectrum in areas where there is high
demand and a willingness to pay. We are well positioned to continue growing both our direct-to-consumer and retail
businesses by leveraging our broad integrated marketing, distribution, segmentation and price-optimization
capabilities.
I am very pleased with the progress we’ve made over the last two years and the value we’ve delivered to stockholders.
We have consistently demonstrated our ability to execute on our strategy. We are on a path to a bright future and
expect to see revenue growth going forward. I thank our employees, management team, board of directors and
stockholders for your continued support and confidence.
Sincerely,
Dawn M. Zier
President and Chief Executive Officer