Nutrisystem 2015 Annual Report Download - page 3

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To Our Stockholders:
I am pleased to report strong financial results for fiscal year 2015. This was our second consecutive year of
double-digit revenue growth and our tenth consecutive quarter of year-over-year revenue growth. These results,
coupled with a healthy dividend payout and a positive outlook, have created meaningful value for our investors.
Throughout 2015, we continued to strengthen our business by investing in new product innovation, enhancing the
customer experience, expanding our retail presence, making an important acquisition, and driving strong
execution.
We effectively executed against a well-formed plan that optimizes multiple levers within our business, without
being overly reliant on one single factor. Notably, this has made our business model one of the most consistent
within our industry. As we enter 2016, we are projecting a third year of double-digit revenue growth.
Investing in new product innovation
Our product innovation pipeline included the all-new clinically tested Turbo10 program, designed to help
individuals lose up to 10 pounds and five inches overall in their first month of dieting. Along with Turbo10, we
introduced Turboshakes™, the Company’s first ever line of shakes with probiotics and the first of its kind to
debut in the structured meal delivery space.
In addition to our Nutrisystem®D®program for people living with Type 2 diabetes or pre-diabetes, we expanded
our health segment offerings to include a heart healthy DASH diet compliant plan.
At retail, we introduced new varieties of the 5-Day Nutrisystem®kit along with a half dozen new individual
products, and we broadened our retail footprint.
At the close of the year, we acquired the South Beach Diet brand and we will begin developing South Beach Diet
meal programs, products, and services as a distinct brand with the intent to launch in both the direct-to-consumer
and retail channels in 2017.
Enhancing the customer experience
The launch of Uniquely Yours, a fully customizable premium option, exceeded expectations, driving increased
average selling prices, boosting gross margins, further improving customer satisfaction and, in turn, increasing
length of stay.
We also reformulated more than 50% of Nutrisystem®menu items to improve taste and make them healthier by
removing artificial colors, flavors or sweeteners. We unveiled all-new product packaging that is more
contemporary and health-oriented with easy-to-understand nutritional labels. We also updated the NuMi by
Nutrisystem app, which syncs with Fitbit®, Apple Health®, Jawbone®and other health trackers.
As a leader in the weight loss space, Nutrisystem began a national dialogue around the role of positive
reinforcement in fostering healthy change with the launch of #NowBelieveIt, a social media campaign that
garnered more than two million views in a 4-week period.