Medifast is the parent company of Take Shape for Life.
Third Quarter 2011 Results For the third quarter ended September 30, 2011, Medifast reported net revenue increased 13% to $76.1 million from net revenue of $67.3 million in the third quarter of the prior year. Each of the Company's three primary distribution channels, Take Shape for Life, Direct Response Marketing, Medifast Weight Control Centers and Wholesale Physicians, contributed to this year-over-year revenue increase.
Revenue in the direct sales channel, Take Shape for Life, increased 6% to $46.4 million in the third quarter of 2011 compared to $43.7 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches.
The Company ended the quarter with approximately 10,300 active health coaches an increase of 14% compared to 9,000 in the third quarter of 2010, and flat sequentially from the second quarter of 2011. The number of active health coaches represents the number of health coaches receiving income from a product sale in the last month of the quarter.
The average revenue per health coach per month for the third quarter was $1,560 compared to $1,670 in third quarter of 2010. In the world of direct selling, it is very important to ensure both the new and the experienced coaches have the proper training on the Medifast products and programs, as well as the proven steps to grow their businesses. This is especially true with the recent growing size of the Take Shape for Life field organization. To accomplish this, the Company continues to focus on continuous enhancements to its overall health coach training platform. At the Take Shape for Life Annual conference in late July, the Company released the official Trilogy Training website. Previously, training to the health coach field was done primarily through utilizing print materials.
The Company is currently working on additional content for the training website and simplifying existing printed materials to maximize the effectiveness of the health coaches to take Health Coaches through the three competencies including health coach, business coach and business leader. In addition, the Company is focusing on regional events throughout the country to ensure participating health coaches receive actionable and relevant content to enhance and grow their businesses long-term.
In October, Medifast also enhanced the Take Shape for Life executive team with the addition of a talented industry veteran, Michelle Jones, as our new Senior Vice President of Take Shape for Life. Michelle joins the team with over 15 years of experience in the Avon organization, where she focused on national training and sales development. In Take Shape for Life, she will oversee the areas of marketing, training and field operations. We believe her direct selling experience will help to implement industry best practices within TSFL, while also aligning with the complete Medifast executive team to improve growth in new health coach acquisition and retention.