-=Tivity Health (TVTY) reported earnings on Wed 19 Feb 20 (a/h)

• Update June 2022: Tivity Health has been acquired by Stone Point Capital in a take-private deal for $2 billion or $32.50 per share.
  

Tivity Health CEO Donato J. Tramuto to depart, effective immediately 
The Board has appointed current Director Robert ("Bob") J. Greczyn, Jr. Interim CEO while it conducts a comprehensive CEO search with the assistance of a leading executive search firm. Greczyn has been a member of the Board since 2015 and has over 30 years of experience in leadership roles in managed care and healthcare at some of the nation's leading organizations.

Tivity Health misses by $0.15, reports revs in-line; guides Q1 revs below consensus; guides FY20 revs below consensus

Reports Q4 (Dec) earnings of $0.40 per share, excluding non-recurring items, $0.15 worse than the S&P Capital IQ Consensus of $0.55; revenues rose 78.3% year/year to $272.8 mln vs the $275.15 mln S&P Capital IQ Consensus.

• Revs driven by driven by the addition of Nutrition segment revenues of $113.7 million and an increase in Healthcare segment revenues of $6.0 million.
• Adjusted EBITDA was $55.5 million and $222.1 million for the fourth quarter and fiscal year 2019, respectively. The Company benefited from cost synergies realized of $5.4 million during the fourth quarter and $9.8 million during the fiscal year. The Company remains on track to deliver on its stated cost synergy and integration goals.

Co issues downside guidance for Q1, sees Q1 revs of $335-350 mln vs. $367.05 mln S&P Capital IQ Consensus.

Co issues downside guidance for FY20, sees FY20 revs of $1243-1285 mln vs. $1.34 bln S&P Capital IQ Consensus.

Earnings this week : Feb 17 - 21, 20 (wk 8)

Monday (Feb 17)

• Holiday: Presidents' Day (US stock, bond, and options markets and the Federal Reserve Bank will be closed on Monday, February 17, 2020. Futures markets will close at 1pm ET.

Tuesday (Feb 18)

• Morning: AAP AEIS ALLE ATH BLMN CEVA CHH CEQP ECL EXPD FLR FELE GSX INMD JELD LDOS MDT SFL SITE TSEM TRU USAC VG VMC WAB WMT WLK
• Afternoon: A AMED ACC TXG ACC AWK ATRC BKD CHE CXO DVN FANG WIRE ENPH EVBG EXR GRPN HCKT HVT HQY HSTM HLF IOSP INVH KAR KRG KNL LZB LC DOOR NP NTR PLMR QTS ROIC RPAI SGMS SCPL SSTI SOI SHO TX TIVO TRTX TPH WRSK WNO

Wednesday (Feb 19)

• Morning: ADI ATHM BHC BCOR APRN FUN DISH ELAN ENBL ETR FVRR FDP GRMN GEL THRM GPC GLDD HEP IART NHI DNOW OC STNG SSW SAH SMP VPG WING
• Afternoon: AGI ALB Y ALSN CRMT AROC CAR AXTI SAM BCOV CAKE XEC CDE CYH CONE ESRT EIG ET FARO FIVN LOPE GDOT HCR HNI HST H IAG ICLR IMAX INOV IVR NVTA JACK JBT KALU KBR KL LSI MX MANT MASI MOS MSA LASR NE NDSN OIS OGS OSUR OR OVV PAAS PE PRDO PXD QTWO O RETA RBBN RPT SNBR SM SED SPTN STMP SUI SUN SNPS TVTY TSLX TRN UCTT UFPI VMI HCC WMB ZG

Thursday (Feb 20)

• Morning: AAN AKS AEP ARD AAWW BRC CAMT CBZ CLF COMM CSTM COT DNR DPZ EPAM FOCS GIL HEES HSIC HFC HRL HPP IDA ITGR I IDCC LAMR LXP LKQ MD MFA NEM NCLH OPI PCRX PQG RCM RS RGEN SHLX SIX SO STFC SCL STOR SYNH TFX TNC TEN TXMD VTR VIAC VC WIX
• Afternoon: ADSW LNT COLD APPN ATR BAND BJRI BYD BVN BLDR COG CAI CATM CASA CWST CENX ED CNDT CORT CVA CUBE DRH BOOM DBX DCO EHTH EBS ENV EVRG FSLY FSLR FND GLPI GMED HTGC HBM LTHM MMI NBR NCMI NGHC NUVA OEC PEB PPC PRAH PRA PBYI RMAX RWT ROG SBAC SWM SEM SFM SSRM TXRH TMST TRUE OLED VAL VICI WK ZIXI ZS

Friday (Feb 21) 

• Morning: BCPC B CNK CFX DE ERF HSC HMSY ITT MGA PNW RY TECK WPC

Notable earnings reports:
Walmart (WMT), Agilent (NYSE:A), Herbalife (NYSE:HLF), Groupon (NASDAQ:GRPN) and Scientific Games (NASDAQ:SGMS) on February 18; IMAX (NYSE:IMAX), Blue Apron (NYSE:APRN), Wingstop (NASDAQ:WING), Albermarle (NYSE:ALB), Hyatt Hotels (NYSE:H), Sunoco (NYSE:SUN), Dish Network (NASDAQ:DISH) and Zillow (NASDAQ:ZG) on February 19; Norwegian Cruise Line Holdings (NYSE:NCLH), (NASDAQ:VIAC), Domino's Pizza (NYSE:DPZ), Universal Display (NASDAQ:OLED) and Dropbox (NASDAQ:DBX) on February 20; Diana Shipping (NYSE:DSX), Royal Bank of Canada (NYSE:RY) and Deere (NYSE:DE) on February 21.

This week's biggest % winners & losers : Dec 10 - 14, 18 (wk 50)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: CORT (16.11 +23.54%), NVAX (2.41 +17.56%), MDRX (10.39 +9.48%)
• Materials: VHI (2.07 +18.29%)
• Industrials: GOL (11.73 +14.55%)
• Consumer Discretionary: BEL (24.68 +37.19%), NTRI (43.81 +28.1%), DLTH (27.65 +13.62%)
• Information Technology: AVGO (254.83 +11.49%), PLAB (10.1 +11.48%), GLUU (7.87 +11.16%), CIEN (34.55 +10.45%)
• Energy: ENBL (15.16 +12.63%)
• Consumer Staples: PRMW (15.13 +11.83%), CASY (134.31 +10.56%)

This week's top 20 % losers

• Healthcare: AXON (1.01 -40.94%), TVTY (26.59 -34.52%)
• Consumer Discretionary: TLRD (14.48 -32.71%)
• Energy: HK (1.98 -22.66%), SDRL (10.99 -22.11%), REI (5.47 -22.08%), CVRR (11.01 -21.58%), CRZO (12.52 -21.29%)
• Consumer Staples: UNFI (10.94 -26.48%)

Nutrisystem (NTRI) to be acquired by Tivity Health (TVTY) for $1.4 billion

• Update June 2022: Tivity Health has been acquired by Stone Point Capital in a take-private deal for $2 billion or $32.50 per share.
• Update 2020: Kainos Capital, a private equity firm, acquired Nutrisystem from Tivity Health in 2020 for $575 million.  In 2021, Nutrisystem merged with Adaptive Health to form Wellful, a privately held company. Wellful is a direct-to-consumer health and wellness platform that also owns the Jenny Craig brand.
• -----------------------------
• Tivity Health is the parent of fitness program SilverSneakers and focuses on customers that are ages 50 and older. Nutrisystem is the parent for both Nutrisystem itself and the South Beach Diet, a low-carb and high-protein eating plan.
• Nutrisystem's market cap is $1.01 billion, and Tivity's is $1.63 billion. 
• Both companies aim to help customers manage their health and diets. Nutrisystem, which sells a meal-kit plan, frequently advertises on ESPN. Tivity Health owns a diabetes treatment center. Both companies operate internationally. 

 

 

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** charts before  announcement **

Nutrisystem: Tivity Health (TVTY) to acquire NTRI for $1.3 billion in cash and stock; transaction values NTRI at an enterprise value or $47.00/share

• Co announced that they have entered into a definitive agreement under which Tivity Health will acquire all of the outstanding shares of Nutrisystem for a combination of cash and stock.
• Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Nutrisystem shareholders will receive $38.75 per share in cash and 0.2141 Tivity Health shares for each share of Nutrisystem common stock.
• The transaction values Nutrisystem at an enterprise value of $1.3 billion and an equity value of $1.4 billion, or approximately $47.00 per share. The implied stock consideration of $8.25 per Nutrisystem share is based on the volume-weighted average price of Tivity Health's stock for the 10 days ended December 3, 2018.
• The implied transaction consideration of $47.00 per share represents a 30% premium based on the volume-weighted average price for Nutrisystem over the last five trading days.
• Expect double digit accretion to Tivity Health's adjusted EPS in 2020 and beyond.
• Significant potential for value creation with expected annual cost synergies of approx $30-35 million.
• Tivity Health will finance the cash portion of the acquisition with fully committed term loan financing from Credit Suisse and existing cash on hand. At the closing of the transaction, Tivity Health's pro forma net leverage is expected to be approximately 4.4x, including the benefit of identified cost synergies. Tivity Health expects to reduce net leverage to less than 3.5x by the end of 2020, and less than 2.5x by the end of 2021.
• The transaction is expected to close in the first quarter of 2019.