Nutrisystem is Losing, But Not Just Weight

The company promises its clients they'll lose. It just wasn't supposed to be a loss to the wallet.

Nutrisystem, a popular weight-loss program based in Fort Washington, has reported larger than expected losses in the fourth quarter of 2012. The company sites declined sales and unexpected "charges" as the main reasons for decreased values. And, according to many watching its market value, the tide isn't going to turn anytime soon.

According to CNBC, the company fears even more loss in 2013.

"The company said 2012 marked the fifth straight year its sales have declined," said the CNBC report. "Nutrisystem said it expects further pressure in 2013."

The CNBC article notes the losses in the closing months of 2012 came largely due to charges the company had to pay.

"In the fourth quarter, the company took $2.9 million in charges related to impairment and termination of third-party contracts and a $2 million charge to vacate a facility," said the article.

The Philadelphia Business Journal said that the company is banking on its new CEO to help in the coming months.

"New CEO Dawn Zier said the company is working to improve its efficiency and reduce costs," said the Philadelphia Business Journal article.

According to MarketWatch, shares were trading at $8.24 for the Fort Washington-based business at the close of business on Monday night. 

According to the Associated Press, "Nutrisystem expects to take a loss of 3 to 8 cents per share in the first quarter. It is forecasting $2.2 million in one-time severance costs connected to leadership changes and reorganization."