Exhibit 99.1

TIVITY HEALTH REPORTS STRONG SECOND-QUARTER 2020 RESULTS

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NUTRISYSTEM BRAND DTC REVENUE INCREASED 6% OVER THE PRIOR YEAR DRIVEN BY HIGHEST NEW PROGRAM STARTS IN A DECADE

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GENERATED $83.9 MILLION IN CASH FLOW FROM OPERATIONS LED BY SOLID ADJUSTED EBITDA PERFORMANCE IN THE HEALTHCARE DIVISION

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ONGOING EXPLORATION OF STRATEGIC ALTERNATIVES FOR NUTRITION BUSINESS

NASHVILLE, Tenn. (August 5, 2020) - Tivity Health, Inc. (NASDAQ:TVTY) today announced financial results for the second quarter ended June 30, 2020.

“Both our Healthcare and Nutrition businesses delivered strong earnings in the second quarter. Our results highlight continued momentum and solid performance in the Nutrisystem brand DTC channel and the resilient model of the Healthcare business. We have significantly expanded digital engagement to our SilverSneakers members and are seeing encouraging signs of members beginning to return to fitness centers. Our Nutrisystem brand drove historic customer growth through smart execution and ongoing transformation of our marketing strategy,” said Richard Ashworth, President & Chief Executive Officer. “Our strong cash flow enabled us to improve our net debt by nearly $53 million during the quarter. I am encouraged by the strength and versatility of our trusted brands, the passion of our team, and by the numerous opportunities that lie ahead to enhance shareholder value.  We are disciplined in our decision-making, strongly focused on overall company performance, while dedicated to providing meaningful experiences for our customers.”

Second Quarter Highlights and Business Update:

Mr. Ashworth continued, “In my first two months as CEO, my priority has been delivering improved performance with a more streamlined and nimble business.  Going forward, our focus will be on the execution of the strategic plan while building our SilverSneakers and Prime Fitness business into experiential member-centric brands across multiple channels, moving beyond the fitness experience.  My consumer and operational

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background coupled with the powerful value proposition of these extraordinary brands present a significant opportunity for organic growth.  In addition, we remain 100% committed to the success of Nutrisystem.   As a result of Nutrisystem’s strong performance, we are continuing to focus our efforts around technology, quality, and personalization in our Nutrition division.”

Exploration of Strategic Alternatives for the Nutrition Business

As announced during its first quarter earnings release, the Company commenced a strategic alternatives process regarding its Nutrition business, which could include a transaction.

“Although we are in the early stages, we’ve been pleased with the interest we’ve received on a potential transaction to acquire our Nutrition business. We are working to determine if there may be a qualified buyer who will meet our objective of a transaction that is beneficial for all of our stakeholders. Our management team remains focused on continuing to operate our Nutrition division at the highest of levels, as evidenced by our second quarter operating results, and is preparing for the 2021 diet season campaign. Our Board of Directors and management are committed to continuing a thoughtful process as we evaluate the strategic alternatives we have before us,” said Anthony Sanfilippo, Chairman of the Board of Tivity Health.

Second Quarter 2020 Financial Information

Dollars in millions, except per-share data

See pages 11-13 for a reconciliation of non-GAAP financial measures

Total revenues in the second quarter of $262.6 million decreased $77.8 million, or approximately 23%, compared to the second quarter of 2019, driven by a decrease in Healthcare segment revenues of $75.6 million and a decrease in Nutrition segment revenues of $2.2 million, or approximately 1%.

Net income for the second quarter was $28.5 million, an increase of $10.4 million compared to the second quarter of 2019.  Adjusted EBITDA was $74.8 million for the second quarter, representing an increase of approximately $4.5 million compared to the second quarter of 2019.  This increase was driven by an increase in Healthcare segment adjusted EBITDA of $5.8 million, partially offset by a decrease in Nutrition segment adjusted EBITDA of $1.3 million.

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Net debt (total debt less cash and cash equivalents) improved by $52.5 million during the second quarter due to cash flow generation.  In July 2020, the Company prepaid $24.8 million of principal amortization on its term loan debt, resulting in the Company’s next quarterly installment being due in December 2021.  

Healthcare Segment

Dollars in millions

Revenues in the Healthcare segment for the second quarter of 2020 decreased by $75.6 million compared to the second quarter of 2019, primarily as a result of a significant decrease in SilverSneakers revenue of $73.7 million resulting from fewer revenue-generating visits due to the COVID-19 pandemic.  Additionally, Prime Fitness revenue decreased by $10.7 million primarily due to membership terminations and suspensions due to the COVID-19 pandemic.  These declines were partially offset by other revenue of $6.8 million from a program with a large employer seeking to improve its employees’ well-being and $2.1 million from Wisely Well sales, both of which were not present in the prior year and are not expected to recur at such levels in future quarters.  

The Company’s revenue profile during the second quarter of 2020 is substantially different from the prior year due to the COVID-19 pandemic.  Revenue from per-member-per-month fees represented 88% of our SilverSneakers revenue in the second quarter of 2020, compared to 33% in the same quarter of 2019.    

Adjusted EBITDA for the Healthcare segment for the second quarter of 2020 increased by $5.8 million compared to the second quarter of 2019, with adjusted EBITDA margin more than doubling.  The primary drivers include the high mix of per-member-per-month fees for SilverSneakers coupled with a reduction in fitness location visit costs for SilverSneakers and Prime due to the COVID-19 pandemic, as well as cost reductions primarily focused on marketing, employee salaries and benefits, and director cash compensation.

Nutrition Segment

Dollars in millions

Revenues in the Nutrition segment for the second quarter of 2020 decreased by $2.2 million compared to the second quarter of 2019, driven by decreases in South Beach Diet revenue and Retail revenue of $5.8 million and $4.8 million, respectively.  These declines were partially offset by a $9.1 million increase in Nutrisystem brand DTC revenue, an increase of 6% year over year.  

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Adjusted EBITDA for the Nutrition segment in the second quarter of 2020 decreased by $1.3 million compared to the second quarter of 2019, with adjusted EBITDA margin declining by 50 basis points.  The primary drivers were higher cost of goods sold relating to changes in program mix, combined with higher second quarter Nutrisystem DTC media marketing levels to drive incremental full year revenue and adjusted EBITDA. These margin declines were partially offset by cost reductions primarily focused on employee salaries and benefits.

Outlook

Due to the evolving nature of the COVID-19 pandemic, the Company withdrew its 2020 financial guidance in May 2020.  Given the expectation of continued volatility and uncertainty, the Company is not issuing updated financial guidance at this time.

Conference Call

Tivity Health will hold a conference call to discuss this release today at 5:00 p.m. Eastern Time. Investors will have the opportunity to listen to the conference call live by registering at the following website prior to, or on the day of, the conference call to receive dial-in details: http://www.directeventreg.com/registration/event/3265407 or via webcast by going to www.tivityhealth.com and clicking “Investors” at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a telephonic replay will be available for one week at 800-585-8367 or 416-621-4642 for international callers, code 3265407, and the replay will also be available on the Company's website for the next 12 months.

About Tivity Health

Tivity Health^® Inc. (Nasdaq: TVTY) is a leading provider of healthy life-changing solutions, including SilverSneakers^®, Nutrisystem^®, Prime^® Fitness, Wisely Well^TM, South Beach Diet^®, and WholeHealth Living^®.  We are actively addressing the social determinants of health, defined as the conditions in which we work, live and play. From improving health outcomes to reversing the narrative on inactivity, food insecurity, social isolation and loneliness, we are making a difference and are transforming the way we do health. Learn more at www.tivityhealth.com.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures. Reconciliations of certain of these non-GAAP measures to the comparable GAAP measures are included on pages 11-13.    

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that are “forward-looking” statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based upon current expectations and include all statements that are not historical statements of fact and those regarding the intent, belief or expectations, including, without limitation, statements that are accompanied by words such as “will,” “expect,” “outlook,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” or other similar words, phrases or expressions and variations or negatives of these words. These forward-looking statements include, but are not limited to, the Company’s statements regarding its future financial

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performance. Readers of this press release should understand that these statements are not guarantees of performance or results. Many risks and uncertainties could affect actual results and cause them to vary materially from the forward-looking statements.

These risks and uncertainties include, among other things: impacts from the COVID-19 pandemic (including the response of governmental authorities to combat and contain the pandemic and the closure of fitness centers in the Company’s national network) on the Company’s business, operations or liquidity; the risk that the significant indebtedness incurred in connection with the acquisition of Nutrisystem may limit the Company’s ability to adapt to changes in the economy or market conditions, expose the Company to interest rate risk for the variable rate indebtedness and require a substantial portion of cash flows from operations to be dedicated to the payment of indebtedness; the Company’s ability to service its debt, make principal and interest payments as those payments become due, and remain in compliance with its debt covenants; the risks associated with changes in macroeconomic conditions (including the impacts of any recession resulting from the COVID-19 pandemic), widespread epidemics, pandemics (such as the current COVID-19 pandemic) or other outbreaks of disease, geopolitical turmoil, and the continuing threat of domestic or international terrorism; the Company’s ability to collect accounts receivable from its customers and amounts due under its sublease agreements; the market’s acceptance of the Company’s new products and services; the Company’s ability to develop and implement effective strategies and to anticipate and respond to strategic changes, opportunities, and emerging trends in the Company’s industry and/or business, as well as to accurately forecast the related impact on the Company’s revenues and earnings; the risk that the Company’s exploration of strategic alternatives for the Nutrition business unit will be unsuccessful in identifying or consummating any strategic alternative that yields additional value for the Company’s stockholders, or that such exploration adversely affects the Nutrition business unit or the Company as a whole; the risk that the Company is unable to achieve the strategic benefits, synergies and growth opportunities that were anticipated in connection with the acquisition of Nutrisystem, either in a timely manner or at all; counterparty risk associated with the Company’s interest rate swap agreements; the Company’s ability to obtain adequate financing to provide the capital that may be necessary to support its current or future operations; the impact of any impairment of the Company’s goodwill, intangible assets, or other long-term assets; the risks associated with potential failures of the Company’s information systems, including as a result of telecommuting issues associated with the Company’s employees working remotely; the risks associated with data privacy or security breaches, computer hacking, network penetration and other illegal intrusions of the Company’s information systems or those of third-party vendors or other service providers, which may result in unauthorized access by third parties, loss, misappropriation, disclosure or corruption of customer, employee or the Company’s information, or other data subject to privacy laws and may lead to a disruption in the Company’s business, costs to modify, enhance, or remediate its cybersecurity measures, enforcement actions, fines or litigation against the Company, or damage to its business reputation; the impact of any new or proposed legislation, regulations and interpretations relating to Medicare, Medicare Advantage, Medicare Supplement, e-commerce, advertising, and privacy and security laws; the impact of a reduction in Medicare Advantage health plan reimbursement rates or changes in plan design; the Company’s ability to attract, hire, or retain key personnel or other qualified employees and to control labor costs; the risks associated with changes to traditional office-centered business processes and/or conducting operations out of the office in a work-from-home or remote model during adverse situations (e.g., during a crisis, disaster, or pandemic), which may negatively impact productivity and cause other disruptions to the Company’s business; the effectiveness of the reorganization of the Company’s business and the Company’s ability to realize the anticipated benefits; the Company’s ability to effectively compete against other entities, whose financial, research, staff, and marketing resources may exceed its resources; the impact of legal proceedings involving the Company and/or its subsidiaries, products, or

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services, including any claims related to intellectual property rights; the Company’s ability to enforce its intellectual property rights; the risks associated with deriving a significant concentration of revenues from a limited number of the Company’s Healthcare segment customers, many of whom are health plans; the Company’s ability and/or the ability of its Healthcare segment customers to enroll participants and to accurately forecast their level of enrollment and participation in the Company’s programs in a manner and within the timeframe anticipated by the Company; the Company’s ability to sign, renew and/or maintain contracts with its Healthcare segment customers and/or the Company’s fitness partner locations under existing terms or to restructure these contracts on terms that would not have a material negative impact on the Company’s results of operations; the ability of the Company’s Healthcare segment health plan customers to maintain the number of covered lives enrolled in those health plans during the terms of the Company’s agreements; the Company’s ability to add and/or retain paid subscribers in its Prime Fitness program; the impact of severe or adverse weather conditions, the current COVID-19 pandemic, and the potential emergence of additional health pandemics or infectious disease outbreaks on member participation in the Company’s Healthcare segment programs; the impact of healthcare reform on the Company’s business; the effectiveness of the Company’s marketing and advertising programs; loss of, or disruption in the business of, any of the Company’s food suppliers or the Company’s fulfillment provider, or disruptions in the shipping of the Company’s food products for its Nutrition segment; the impact of claims that the Company’s Nutrition segment personnel are unqualified to provide proper weight loss advice; the impact of health- or advertising-related claims by the Company’s Nutrition segment customers; competition from other weight management industry participants or the development of more effective or more favorably perceived weight management methods; loss of any of the Company’s Nutrition segment third-party retailer agreements and any obligations associated with such loss, or a reduction of orders for Company products by any such third-party retailers or reduced promotion by such third-party retailers of Company products; the Company’s ability to continue to develop innovative weight loss programs and enhance its existing programs, or the failure of the Company’s programs to continue to appeal to the market; the impact of claims from the Company’s Nutrition segment competitors regarding advertising or other marketing practices; the Company’s ability to develop and commercially introduce new products and services; the Company’s ability to receive referrals from existing Nutrition segment customers, a decline in which could adversely impact the Company’s customer acquisition costs; failure to attract spokespersons or negative publicity with respect to any of the Company’s spokespersons; the Company’s ability to anticipate change and respond to emerging trends for customer preferences and the impact of the same on demand for the Company’s services and products; the seasonality of the business of the Company’s Nutrition segment, particularly with respect to diet season; negative publicity with respect to the weight loss industry; the impact of increased governmental regulation on the Company’s Nutrition segment; a significant portion of the Company’s Nutrition segment revenue depends on the Company’s ability to sustain subscriptions of its Nutrition segment’s programs, and cancellations could impact the Company’s future operating results; claims arising from the sale of ingested products; and other risks detailed in the Company’s filings with the Securities and Exchange Commission.

For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company’s filings with the SEC. Except as required by law, the Company undertakes no obligation to update any such forward-looking statements to reflect new information, subsequent events or circumstances.

Investor Relations Contact:

Bob East, Westwicke

(443) 213-0500; Tivity@Westwicke.com

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TIVITY HEALTH, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited) 

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TIVITY HEALTH, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except earnings per share data)

(Unaudited)

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TIVITY HEALTH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

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TIVITY HEALTH, INC.

Segment Information

(In thousands)

(Unaudited)

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TIVITY HEALTH, INC.
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(Unaudited)

Reconciliation of Adjusted EBITDA, Non-GAAP Basis

to Net Income, GAAP Basis (in thousands)

Reconciliation of Free Cash Flow, Non-GAAP Basis

to Net Cash Flows Provided by Operating Activities, GAAP Basis (in thousands)

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Reconciliation of Adjusted Earnings Per Share (“EPS”), Non-GAAP Basis

to EPS, GAAP Basis (footnote amounts in thousands)

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Reconciliation of Net Debt, Non-GAAP Basis

to Total Debt, GAAP Basis (in thousands)