Contact: Exhibit 99.1
John Mills, Partner
ICR, Inc.
646-277-1254
ir@nutrisystem.com
John.Mills@Icrinc.com

NUTRISYSTEM ANNOUNCES FOURTH QUARTER AND FULL YEAR 2015 FINANCIAL RESULTS

Positive Start to Diet Season Expected to Fuel Third Consecutive Year of Double-Digit Revenue
Growth in 2016

Company Reports 15% Growth in 2015 and Tenth Consecutive Quarter of Year-over-Year Revenue Growth

Adjusted EBITDA Increased 34% and Adjusted Earnings per Share Increased 44% for 2015

Fort Washington, PA—February 25, 2016—Nutrisystem, Inc. (NASDAQ: NTRI), a leading provider of weight management products and services, today reported financial results for the quarter and full year ended December 31, 2015.

Dawn Zier, President and Chief Executive Officer, stated, “I am very pleased to report our second year of double-digit revenue growth. In 2015, we continued to strengthen our business by investing in new product innovation, enhancing the customer experience, and driving strong execution. For 2016, we expect to deliver our third consecutive year of double-digit revenue growth, fueled by the strength of our direct-to-consumer business and increased demand for our programs.”

Ms. Zier added, “We are building our strategic vision around a multi-brand and multi-product approach to capture an even more significant share of the weight loss market and expand into the broader health and wellness space. To accomplish these goals, in 2016, we are developing the products, program, and infrastructure to support a 2017 launch of the South Beach Diet. We are also investing in and have just begun testing Shake360, a continuity program targeted at a new customer segment – an often younger, health conscious consumer – who is looking for clean, nutrient-dense, gluten-free solutions for optimal nutrition. We intend to leverage our product development, marketing, ecommerce, supply chain, and distribution know-how to drive the successful commercialization of these new offerings.”

The following are key financial highlights for the period and reconciliations of certain GAAP to non-GAAP measures are provided later in this press release.

Full Year 2015 Compared to Full Year 2014

Revenue increased 15% to $462.6 million, compared to $403.1 million
Gross margin improved 90 basis points to 51.5%
Adjusted EBITDA grew 34% to $57.1 million, compared to $42.7 million
Adjusted net income increased 45% to $28.0 million, compared to $19.3 million; GAAP net income increased 35% to $26.1 million including South Beach transaction costs and investment initiative expense
Adjusted diluted income per common share increased 44% to $0.95, compared to $0.66; diluted income per common share was $0.89, including South Beach transaction costs and investment initiative expense
In 2015, the Company returned $20.5 million in cash to stockholders via dividends. The Board of Directors has declared a quarterly dividend of $0.175 per share, payable March 17, 2016 to stockholders of record as of March 7, 2016.

Fourth Quarter 2015 Compared to Fourth Quarter 2014

Revenue grew 14% to $90.2 million, compared to $79.2 million
Gross profit margin was 50.8% and gross profit increased 12% to $45.9 million, compared to $40.8 million
Adjusted EBITDA increased to $12.1 million, compared to $11.6 million
Adjusted diluted income per common share increased to $0.19, compared to $0.18. Diluted income per common share was $0.13 including $0.06 of South Beach transaction cost and investment initiative expense

Mike Monahan, Chief Financial Officer, commented, “We achieved our 2015 financial goals and are projecting solid top and bottom line growth in 2016. We expect the investment costs related to the South Beach Diet and Shake360 will impact diluted income per common share by $0.14 in 2016 and are factored into our guidance. We expect these initiatives to be accretive in 2017 and deliver a favorable return on investment to stockholders.”

First Quarter and Full Year 2016 Guidance
The Company’s first quarter and full year 2016 guidance are outlined below. Reconciliations of certain GAAP to non-GAAP measures are provided later in this press release along with tables detailing the expected impact of the investment. As previously disclosed when we announced the South Beach acquisition in December, Nutrisystem does not anticipate any revenue from this brand in 2016.

First quarter revenue expected to be in the range of $148 to $158 million, adjusted EBITDA between $5.5 and $7.5 million, and diluted income per common share between $0.02 and $0.07. This guidance includes $1.3 million of cash operating expense and $0.3 million of amortization expense, or $0.03 per common share investment for the South Beach Diet ($0.01) and Shake360 ($0.02).
Full year revenue expected to be in the range of $505 to $525 million, adjusted EBITDA between $62.5 and $67.0 million, and diluted income per common share between $0.95 and $1.05. This guidance includes $5.5 million of cash operating expenses and $1.0 million of amortization expense or $0.14 per common share investment for the South Beach Diet ($0.09) and Shake360 ($0.05). Nutrisystem’s adjusted diluted income per common share is expected to be $1.09 to $1.19, which excludes the expected impact of the South Beach Diet and Shake360 investments (see attached tables for detail).

Conference Call and Webcast

Management will host a conference call to discuss fourth quarter and full year 2015 financial results today at 5:00 PM Eastern time. The conference call will include remarks from President and Chief Executive Officer Dawn Zier, Chief Financial Officer Mike Monahan, and Chief Marketing Officer Keira Krausz. A webcast of the conference call will be available live on the Investor Relations section of Nutrisystem’s website at www.nutrisystem.com. Interested parties unable to access the conference call via the webcast may dial 877-407-3982. A replay of the conference call will be available on the Company website for 30 days following the event and can be accessed at 877-870-5176 using replay pin number 13629537.

Non-GAAP Financial Measures

Within this announcement, the Company makes reference to certain adjusted financial measures, which have directly comparable GAAP financial measures as identified in this press release. These adjusted measures are provided so that investors have the same financial data that management uses with the belief that it will assist the investment community in properly assessing the performance of the Company for the periods being reported and future periods. The presentation of this additional information is not meant to be considered a substitute for measures prepared in accordance with GAAP.

In this release, EBITDA is defined as net income excluding interest, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding non-cash employee compensation and certain one-time charges. Adjusted net income is defined as net income excluding a new product initiative and certain one-time charges. Adjusted earnings per share is defined as earnings per share excluding a new product initiative and certain one-time charges.

Forward-Looking Statements

Information provided and statements contained in this press release that are not purely historical, such as first quarter and full year 2016 guidance, and the Company’s financial and operational outlook, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this press release and the Company assumes no obligation to update the information included in this press release. Statements made in this press release that are forward-looking in nature may involve risks and uncertainties. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, without limitation, risks relating to cybersecurity breaches, risks that consumer spending may decline or that U.S. and global macroeconomic conditions may worsen resulting in reduced demand for the Company’s products, risks relating to changes in consumer preferences away from the Company’s food offerings including its pre-packaged foods, risks relating to the effectiveness and efficiency of the Company’s marketing expenditures which may not result in increased revenue or generate sufficient levels of brand name and program awareness, risks if the Company is unable to obtain sufficient quantities, quality and variety of food products in a timely and low-cost manner from its food vendors, risks of exposure to product liability claims if the use of the Company’s products results in illness or injury, risks if the Company becomes subject to health or advertising related claims from its customers, competitors or governmental and regulatory bodies, and risks relating to increased competition from other weight management providers. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this press release.

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About Nutrisystem, Inc.

Nutrisystem, Inc. (NASDAQ: NTRI) is a leader in the weight loss industry, having helped millions of people lose weight over the course of more than 40 years. The Company’s weight loss solutions include Nutrisystem® MyWay®, a structured food delivery program including a digital platform NuMi® by Nutrisystem, with multi-day kits and individual products available at select retail outlets. The Company recently launched Turbo10, a clinically tested program that delivers up to a 10-pound weight loss and an overall reduction of five inches from the waist, hips, thighs, chest, and arms in just the first month. The Company’s current product line offers customers the most meal choices, including more than 100 foods containing no artificial preservatives or artificial flavors. Nutrisystem provides customers the flexibility to align their diet with the US Healthy Eating Meal Pattern, as recommended by the USDA Dietary Guidelines. Plans include comprehensive counseling options from trained weight loss coaches, registered dietitians and certified diabetes educators and can be customized to specific dietary needs and preferences including the Nutrisystem® D® program for people with Type 2 diabetes or pre-diabetes. For more information, go to NutrisystemNews.com.

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except par value amounts)

NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

NUTRISYSTEM, INC. AND SUBSIDIARIES

ADJUSTED NET INCOME RECONCILIATION TO GAAP RESULTS

(Unaudited, in thousands, except per share amounts)

^(a) Adjusted income tax expense for the three months and year ended December 31, 2015 has been calculated using a tax rate of 36.39% and 34.38%, respectively.

^(b) No adjustments for one-time charges were included for the three months or year ended December 31, 2014.

NUTRISYSTEM, INC. AND SUBSIDIARIES

ADJUSTED DILUTED INCOME PER COMMON SHARE BREAKOUT

(Unaudited)

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NUTRISYSTEM, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION TO GAAP RESULTS

(Unaudited, in thousands)

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NUTRISYSTEM, INC. AND SUBSIDIARIES

ADJUSTED DILUTED INCOME PER COMMON SHARE GUIDANCE BREAKOUT

(Unaudited)

NUTRISYSTEM, INC. AND SUBSIDIARIES

ADJUSTED EBITDA GUIDANCE RECONCILIATION TO GAAP MEASURES

(Unaudited, in thousands)

NUTRISYSTEM, INC. AND SUBSIDIARIES

ADJUSTED EBITDA GUIDANCE BREAKOUT

(Unaudited, in thousands)

EBITDA is defined as net income excluding interest, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding non-cash employee compensation and certain one-time charges.
Statement Regarding Non-GAAP Financial Measures

We believe EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted income per common share, adjusted EBITDA guidance and adjusted diluted income per share guidance are useful performance metrics for management and investors because they are indicative of the ongoing operations of the Company. Adjusted net income also excludes a new product initiative to provide investors with insight into the income associated with the core operations of the Company. These non-GAAP measures exclude certain non-cash and non-operating items to facilitate comparisons and provide a meaningful measurement that is focused on the performance of the ongoing operations of the Company.

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