0000704415 --12-31 Q3 false true true P3M P1Y P1Y P1Y P1Y P1Y 0000704415 2020-01-01 2020-09-30 xbrli:shares 0000704415 2020-11-03 iso4217:USD 0000704415 2020-09-30 0000704415 2019-12-31 iso4217:USD xbrli:shares 0000704415 us-gaap:ServiceMember 2020-07-01 2020-09-30 0000704415 us-gaap:ServiceMember 2019-07-01 2019-09-30 0000704415 us-gaap:ServiceMember 2020-01-01 2020-09-30 0000704415 us-gaap:ServiceMember 2019-01-01 2019-09-30 0000704415 us-gaap:ProductMember 2020-07-01 2020-09-30 0000704415 us-gaap:ProductMember 2019-07-01 2019-09-30 0000704415 us-gaap:ProductMember 2020-01-01 2020-09-30 0000704415 us-gaap:ProductMember 2019-01-01 2019-09-30 0000704415 2020-07-01 2020-09-30 0000704415 2019-07-01 2019-09-30 0000704415 2019-01-01 2019-09-30 0000704415 us-gaap:CommonStockMember 2019-06-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000704415 us-gaap:RetainedEarningsMember 2019-06-30 0000704415 us-gaap:TreasuryStockMember 2019-06-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000704415 2019-06-30 0000704415 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0000704415 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0000704415 us-gaap:CommonStockMember 2019-09-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0000704415 us-gaap:RetainedEarningsMember 2019-09-30 0000704415 us-gaap:TreasuryStockMember 2019-09-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0000704415 2019-09-30 0000704415 us-gaap:CommonStockMember 2018-12-31 0000704415 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000704415 us-gaap:RetainedEarningsMember 2018-12-31 0000704415 us-gaap:TreasuryStockMember 2018-12-31 0000704415 2018-12-31 0000704415 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0000704415 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0000704415 us-gaap:CommonStockMember 2020-06-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000704415 us-gaap:RetainedEarningsMember 2020-06-30 0000704415 us-gaap:TreasuryStockMember 2020-06-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000704415 2020-06-30 0000704415 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0000704415 us-gaap:CommonStockMember 2020-09-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0000704415 us-gaap:RetainedEarningsMember 2020-09-30 0000704415 us-gaap:TreasuryStockMember 2020-09-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0000704415 us-gaap:CommonStockMember 2019-12-31 0000704415 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000704415 us-gaap:RetainedEarningsMember 2019-12-31 0000704415 us-gaap:TreasuryStockMember 2019-12-31 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000704415 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-30 0000704415 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0000704415 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-30 0000704415 us-gaap:HealthCareMember 2020-01-01 2020-09-30 0000704415 tvty:NutritionMember 2020-01-01 2020-09-30 tvty:Segment 0000704415 tvty:NutrisystemMember us-gaap:SubsequentEventMember 2020-10-18 2020-10-18 xbrli:pure 0000704415 tvty:SilverSneakersMember 2020-01-01 2020-09-30 0000704415 tvty:CovidNineteenMember 2020-04-01 2020-06-30 0000704415 tvty:CovidNineteenMember 2020-07-01 2020-09-30 0000704415 us-gaap:RevolvingCreditFacilityMember tvty:CovidNineteenMember tvty:CreditAgreementMember 2020-03-31 0000704415 us-gaap:RevolvingCreditFacilityMember tvty:CovidNineteenMember tvty:CreditAgreementMember 2020-06-01 2020-06-30 0000704415 tvty:CreditAgreementMember 2020-09-30 0000704415 tvty:CreditAgreementMember 2020-07-01 2020-09-30 0000704415 2020-04-01 2020-04-30 tvty:Employee 0000704415 2020-04-30 0000704415 2020-01-01 2020-06-30 0000704415 tvty:ExecutiveOfficersAndOtherEmployeesMember 2020-04-01 2020-04-30 0000704415 tvty:NonManagementMembersOfBoardMember 2020-01-01 2020-06-30 0000704415 2020-01-01 2020-03-31 0000704415 us-gaap:TradeNamesMember tvty:NutrisystemMember 2020-01-01 2020-03-31 0000704415 tvty:NutritionMember 2020-01-01 2020-03-31 0000704415 tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 2020-04-01 2020-06-30 tvty:Program tvty:Obligation 0000704415 us-gaap:HealthCareMember 2020-07-01 2020-09-30 0000704415 us-gaap:HealthCareMember tvty:SilverSneakersMember 2020-07-01 2020-09-30 0000704415 us-gaap:HealthCareMember tvty:SilverSneakersMember 2019-07-01 2019-09-30 0000704415 us-gaap:HealthCareMember 2020-09-30 0000704415 us-gaap:HealthCareMember 2019-12-31 0000704415 tvty:SilverSneakersMember us-gaap:HealthCareMember 2020-01-01 2020-09-30 0000704415 tvty:SilverSneakersMember us-gaap:HealthCareMember 2019-01-01 2019-09-30 0000704415 tvty:PrimeFitnessMember us-gaap:HealthCareMember 2020-07-01 2020-09-30 0000704415 tvty:PrimeFitnessMember us-gaap:HealthCareMember 2019-07-01 2019-09-30 0000704415 tvty:PrimeFitnessMember us-gaap:HealthCareMember 2020-01-01 2020-09-30 0000704415 tvty:PrimeFitnessMember us-gaap:HealthCareMember 2019-01-01 2019-09-30 0000704415 tvty:WholeHealthLivingMember us-gaap:HealthCareMember 2020-07-01 2020-09-30 0000704415 tvty:WholeHealthLivingMember us-gaap:HealthCareMember 2019-07-01 2019-09-30 0000704415 tvty:WholeHealthLivingMember us-gaap:HealthCareMember 2020-01-01 2020-09-30 0000704415 tvty:WholeHealthLivingMember us-gaap:HealthCareMember 2019-01-01 2019-09-30 0000704415 us-gaap:ProductAndServiceOtherMember us-gaap:HealthCareMember 2020-07-01 2020-09-30 0000704415 us-gaap:ProductAndServiceOtherMember us-gaap:HealthCareMember 2019-07-01 2019-09-30 0000704415 us-gaap:ProductAndServiceOtherMember us-gaap:HealthCareMember 2020-01-01 2020-09-30 0000704415 us-gaap:ProductAndServiceOtherMember us-gaap:HealthCareMember 2019-01-01 2019-09-30 0000704415 us-gaap:HealthCareMember 2019-07-01 2019-09-30 0000704415 us-gaap:HealthCareMember 2019-01-01 2019-09-30 0000704415 us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-09-30 0000704415 tvty:WellBeingProgramMember 2020-01-01 2020-09-30 0000704415 tvty:WellBeingProgramMember 2020-07-01 2020-09-30 tvty:Source 0000704415 us-gaap:ShippingAndHandlingMember tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 us-gaap:ShippingAndHandlingMember tvty:NutritionMember 2020-01-01 2020-09-30 0000704415 us-gaap:ShippingAndHandlingMember tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 us-gaap:ShippingAndHandlingMember tvty:NutritionMember 2019-03-09 2019-09-30 0000704415 tvty:NutrisystemDirectToConsumerMember tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 tvty:NutrisystemDirectToConsumerMember tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 tvty:NutrisystemDirectToConsumerMember tvty:NutritionMember 2020-01-01 2020-09-30 0000704415 tvty:NutrisystemDirectToConsumerMember tvty:NutritionMember 2019-01-01 2019-09-30 0000704415 tvty:SouthBeachDietDirectToConsumerMember tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 tvty:SouthBeachDietDirectToConsumerMember tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 tvty:SouthBeachDietDirectToConsumerMember tvty:NutritionMember 2020-01-01 2020-09-30 0000704415 tvty:SouthBeachDietDirectToConsumerMember tvty:NutritionMember 2019-01-01 2019-09-30 0000704415 us-gaap:RetailMember tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 us-gaap:RetailMember tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 us-gaap:RetailMember tvty:NutritionMember 2020-01-01 2020-09-30 0000704415 us-gaap:RetailMember tvty:NutritionMember 2019-01-01 2019-09-30 0000704415 tvty:QVCMember tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 tvty:QVCMember tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 tvty:QVCMember tvty:NutritionMember 2020-01-01 2020-09-30 0000704415 tvty:QVCMember tvty:NutritionMember 2019-01-01 2019-09-30 0000704415 us-gaap:ProductAndServiceOtherMember tvty:NutritionMember 2020-07-01 2020-09-30 0000704415 us-gaap:ProductAndServiceOtherMember tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 us-gaap:ProductAndServiceOtherMember tvty:NutritionMember 2020-01-01 2020-09-30 0000704415 us-gaap:ProductAndServiceOtherMember tvty:NutritionMember 2019-01-01 2019-09-30 0000704415 tvty:NutritionMember 2019-07-01 2019-09-30 0000704415 tvty:NutritionMember 2019-01-01 2019-09-30 0000704415 2020-10-01 2020-09-30 0000704415 2020-10-01 2020-06-30 0000704415 2021-01-01 2020-09-30 0000704415 2021-01-01 2020-06-30 0000704415 2022-01-01 2020-09-30 0000704415 2022-01-01 2020-06-30 0000704415 2023-01-01 2020-09-30 0000704415 2023-01-01 2020-06-30 0000704415 2024-01-01 2020-09-30 0000704415 2024-01-01 2020-06-30 0000704415 2025-01-01 2020-09-30 0000704415 2025-01-01 2020-06-30 0000704415 tvty:NutritionMember 2019-03-09 2019-09-30 0000704415 us-gaap:AccruedLiabilitiesMember tvty:NutritionMember 2020-09-30 0000704415 us-gaap:AccruedLiabilitiesMember tvty:NutritionMember 2019-12-31 0000704415 tvty:NutrisystemIncorporationMember us-gaap:TradeNamesMember 2020-01-01 2020-03-31 0000704415 tvty:NutrisystemIncorporationMember 2020-01-01 2020-03-31 0000704415 tvty:NutritionBusinessUnitMember us-gaap:SubsequentEventMember 2020-10-18 2020-10-18 0000704415 tvty:NutritionMember 2019-12-31 0000704415 tvty:NutritionMember 2020-09-30 0000704415 us-gaap:TradeNamesMember 2020-09-30 0000704415 us-gaap:TradeNamesMember 2019-12-31 0000704415 2019-03-09 2019-09-30 tvty:Type 0000704415 srt:MinimumMember 2020-01-01 2020-09-30 0000704415 srt:MaximumMember 2020-01-01 2020-09-30 0000704415 us-gaap:RestructuringChargesMember 2020-07-01 2020-09-30 0000704415 us-gaap:RestructuringChargesMember 2020-01-01 2020-09-30 0000704415 us-gaap:RestructuringChargesMember 2019-01-01 2019-09-30 0000704415 us-gaap:StateAndLocalJurisdictionMember 2019-01-01 2019-09-30 0000704415 us-gaap:EarliestTaxYearMember 2020-01-01 2020-09-30 tvty:Agreement 0000704415 tvty:TermLoanFacilityAMember 2020-09-30 0000704415 tvty:TermLoanFacilityAMember 2019-12-31 0000704415 tvty:TermLoanFacilityBMember 2020-09-30 0000704415 tvty:TermLoanFacilityBMember 2019-12-31 0000704415 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0000704415 tvty:CreditAgreementMember 2020-01-01 2020-09-30 0000704415 us-gaap:RevolvingCreditFacilityMember tvty:CreditAgreementMember 2019-03-08 0000704415 tvty:SwinglineSubFacilityMember tvty:CreditAgreementMember 2019-03-08 0000704415 us-gaap:LetterOfCreditMember tvty:CreditAgreementMember 2019-03-08 0000704415 tvty:TermLoanFacilityAMember tvty:CreditAgreementMember 2019-03-08 0000704415 tvty:TermLoanFacilityBMember tvty:CreditAgreementMember 2019-03-08 0000704415 tvty:UncommittedIncrementalAccordionFacilityMember tvty:CreditAgreementMember srt:MinimumMember 2019-03-08 0000704415 tvty:UncommittedIncrementalAccordionFacilityMember tvty:CreditAgreementMember srt:MinimumMember 2019-03-06 2019-03-08 0000704415 us-gaap:RevolvingCreditFacilityMember 2020-09-30 0000704415 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember tvty:CreditAgreementMember 2019-03-06 2019-03-08 0000704415 tvty:FederalFundsRateMember tvty:CreditAgreementMember 2019-03-06 2019-03-08 0000704415 tvty:OneMonthLondonInterbankOfferedRateLIBORMember tvty:CreditAgreementMember 2019-03-06 2019-03-08 0000704415 us-gaap:LondonInterbankOfferedRateLIBORMember tvty:CreditAgreementMember tvty:TermLoanFacilityAMember 2019-03-06 2019-03-08 0000704415 us-gaap:LondonInterbankOfferedRateLIBORMember tvty:CreditAgreementMember tvty:TermLoanFacilityBMember 2019-03-06 2019-03-08 0000704415 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember tvty:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-03-06 2019-03-08 0000704415 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember tvty:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-03-06 2019-03-08 0000704415 us-gaap:BaseRateMember tvty:CreditAgreementMember tvty:TermLoanFacilityAMember 2019-03-06 2019-03-08 0000704415 us-gaap:BaseRateMember tvty:CreditAgreementMember tvty:TermLoanFacilityBMember 2019-03-06 2019-03-08 0000704415 us-gaap:BaseRateMember srt:MinimumMember tvty:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-03-06 2019-03-08 0000704415 us-gaap:BaseRateMember srt:MaximumMember tvty:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2019-03-06 2019-03-08 0000704415 tvty:CreditAgreementMember tvty:TermLoanFacilityAMember 2019-03-06 2019-03-08 0000704415 tvty:CreditAgreementMember tvty:TermLoanFacilityBMember 2019-03-06 2019-03-08 0000704415 tvty:CreditAgreementMember tvty:TermLoansMember 2019-03-09 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:TermLoanFacilityAMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:TermLoanFacilityBMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:SwinglineSubFacilityMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000704415 tvty:InterestRateSwapAgreementMember 2019-05-31 0000704415 tvty:InterestRateSwapAgreementMember 2019-05-01 2019-05-31 0000704415 us-gaap:LondonInterbankOfferedRateLIBORMember tvty:InterestRateSwapAgreementMember 2019-05-31 0000704415 tvty:InterestRateSwapAgreementMember 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:PrepaymentsConditionOneMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:PrepaymentsConditionTwoMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:PrepaymentsConditionThreeMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember tvty:PrepaymentsConditionFourMember 2020-01-01 2020-09-30 0000704415 tvty:CreditAgreementMember srt:MinimumMember 2019-03-06 2019-03-08 0000704415 tvty:CreditAgreementMember srt:MaximumMember 2019-03-06 2019-03-08 0000704415 2017-11-06 tvty:Lawsuit 0000704415 2017-11-06 2017-11-06 0000704415 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-12-31 tvty:Tradename 0000704415 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-09-30 0000704415 tvty:TermLoansMember 2020-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2019-05-31 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2019-05-01 2019-05-31 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2020-09-30 0000704415 tvty:LongTermLiabilitiesCurrentMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2020-09-30 0000704415 tvty:LongTermLiabilitiesCurrentMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2019-12-31 0000704415 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2020-09-30 0000704415 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2019-12-31 0000704415 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember 2019-12-31 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2020-07-01 2020-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2019-07-01 2019-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2020-01-01 2020-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2019-01-01 2019-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2020-07-01 2020-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-07-01 2019-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2020-01-01 2020-09-30 0000704415 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:InterestExpenseMember 2019-01-01 2019-09-30 0000704415 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0000704415 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0000704415 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0000704415 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-30 0000704415 us-gaap:EmployeeStockOptionMember 2020-07-01 2020-09-30 0000704415 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0000704415 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0000704415 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0000704415 us-gaap:RestrictedStockUnitsRSUMember 2020-07-01 2020-09-30 0000704415 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0000704415 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-09-30 0000704415 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-30 0000704415 us-gaap:RestrictedStockMember 2020-07-01 2020-09-30 0000704415 us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0000704415 us-gaap:RestrictedStockMember 2020-01-01 2020-09-30 0000704415 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0000704415 us-gaap:PerformanceSharesMember 2020-07-01 2020-09-30 0000704415 us-gaap:PerformanceSharesMember 2020-01-01 2020-09-30 0000704415 tvty:MarketStockUnitsMember 2020-07-01 2020-09-30 0000704415 tvty:MarketStockUnitsMember 2020-01-01 2020-09-30 0000704415 us-gaap:InterestRateSwapMember 2019-12-31 0000704415 us-gaap:InterestRateSwapMember 2020-01-01 2020-09-30 0000704415 us-gaap:InterestRateSwapMember 2020-09-30 0000704415 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:InterestRateSwapMember 2020-01-01 2020-09-30 0000704415 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0000704415 2019-03-07 2019-03-07 0000704415 tvty:WiselyWellMember 2020-07-01 2020-09-30 0000704415 tvty:WiselyWellMember 2020-01-01 2020-09-30 0000704415 srt:ChiefExecutiveOfficerMember 2020-07-01 2020-09-30 0000704415 srt:ChiefExecutiveOfficerMember 2020-01-01 2020-09-30 0000704415 tvty:SilverSneakersSeniorFitnessMember 2020-07-01 2020-09-30 0000704415 tvty:SilverSneakersSeniorFitnessMember 2020-01-01 2020-09-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended September 30, 2020

 

or

 

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from _____  to _____

 

Commission file number 000-19364

TIVITY HEALTH, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

62-1117144

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

701 Cool Springs Boulevard, Franklin, TN  37067

(Address of principal executive offices) (Zip code)

 

(800) 869-5311

(Registrant's telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading symbol

 

Name of each exchange on which registered

Common Stock - $.001 par value

 

TVTY

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

 

Yes

No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Yes

No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Smaller reporting company

Non-accelerated filer

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes

No

 

 

As of November 3, 2020, there were outstanding 48,619,846 shares of the registrant’s common stock, par value $.001 per share (“Common Stock”).

 

 

 

 


 

Tivity Health, Inc.

Form 10-Q

 

Table of Contents

 

 

 

 

Page

Part I

 

 

 

 

Item 1.

Financial Statements

3

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

28

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

46

 

Item 4.

Controls and Procedures

46

 

 

 

 

Part II

 

 

 

 

Item 1.

Legal Proceedings

48

 

Item 1A.

Risk Factors

48

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

63

 

Item 6.

Exhibits

64

 

2


 

PART I

 

Item 1. Financial Statements

 

TIVITY HEALTH, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited) 

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

56,440

 

 

$

2,486

 

Accounts receivable, net

 

 

36,952

 

 

 

97,596

 

Inventories

 

 

21,416

 

 

 

36,407

 

Prepaid expenses

 

 

14,046

 

 

 

18,255

 

Other current assets

 

 

9,145

 

 

 

6,993

 

Total current assets

 

 

137,999

 

 

 

161,737

 

 

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of

   $59,531 and $42,510 respectively

 

 

49,205

 

 

 

52,909

 

Right-of-use assets, operating leases

 

 

32,071

 

 

 

41,518

 

Right-of-use assets, finance leases

 

 

1,195

 

 

 

1,680

 

Intangible assets, net

 

 

586,428

 

 

 

689,686

 

Goodwill, net

 

 

468,937

 

 

 

654,635

 

Other assets

 

 

20,940

 

 

 

23,740

 

Total assets

 

$

1,296,775

 

 

$

1,625,905

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

34,695

 

 

$

46,480

 

Accrued salaries and benefits

 

 

10,260

 

 

 

13,071

 

Accrued liabilities

 

 

44,471

 

 

 

56,068

 

Deferred revenue

 

 

14,583

 

 

 

12,037

 

Current portion of operating lease liabilities

 

 

13,390

 

 

 

13,131

 

Current portion of finance lease liabilities

 

 

654

 

 

 

624

 

Current portion of other long-term liabilities

 

 

15,140

 

 

 

4,947

 

Total current liabilities

 

 

133,193

 

 

 

146,358

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

974,758

 

 

 

1,048,127

 

Long-term operating lease liabilities

 

 

20,297

 

 

 

30,321

 

Long-term finance lease liabilities

 

 

585

 

 

 

1,080

 

Long-term deferred tax liability

 

 

136,739

 

 

 

160,846

 

Other long-term liabilities

 

 

28,962

 

 

 

12,263

 

 

 

 

 

 

 

 

 

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock $.001 par value, 5,000,000 shares authorized,

   none outstanding

 

 

 

 

 

 

Common Stock $.001 par value, 120,000,000 shares authorized,

   48,616,619 and 48,156,786 shares outstanding, respectively

 

 

48

 

 

 

48

 

Additional paid-in capital

 

 

509,850

 

 

 

504,419

 

Accumulated deficit

 

 

(449,257

)

 

 

(237,284

)

Treasury stock, at cost, 2,254,953 shares in treasury

 

 

(28,182

)

 

 

(28,182

)

Accumulated other comprehensive loss

 

 

(30,218

)

 

 

(12,091

)

Total stockholders' equity

 

 

2,241

 

 

 

226,910

 

Total liabilities and stockholders' equity

 

$

1,296,775

 

 

$

1,625,905

 

 

See accompanying notes to the consolidated financial statements.

3


 

TIVITY HEALTH, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except earnings per share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

$

95,393

 

 

$

159,979

 

 

$

334,941

 

 

$

473,987

 

Products

 

 

159,516

 

 

 

143,918

 

 

 

520,221

 

 

 

384,382

 

Total revenues

 

 

254,909

 

 

 

303,897

 

 

 

855,162

 

 

 

858,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services (exclusive of depreciation of

   $2,486, $1,461, $6,515 and $4,320,

   respectively, included below)

 

 

47,511

 

 

 

111,666

 

 

 

194,545

 

 

 

336,581

 

Products (exclusive of depreciation and

   amortization of $8,769, $6,409, $28,049

   and $13,896, respectively, included below)

 

 

75,296

 

 

 

66,974

 

 

 

245,659

 

 

 

177,155

 

Total cost of revenue

 

 

122,807

 

 

 

178,640

 

 

 

440,204

 

 

 

513,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing expenses

 

 

44,509

 

 

 

46,719

 

 

 

182,686

 

 

 

125,470

 

Selling, general and administrative

   expenses

 

 

26,723

 

 

 

26,958

 

 

 

78,203

 

 

 

83,810

 

Depreciation and amortization

 

 

13,315

 

 

 

9,700

 

 

 

40,997

 

 

 

22,366

 

Impairment loss

 

 

66,198

 

 

 

 

 

 

265,698

 

 

 

 

Restructuring and related charges

 

 

1,136

 

 

 

281

 

 

 

2,888

 

 

 

4,225

 

Operating income (loss)

 

 

(19,779

)

 

 

41,599

 

 

 

(155,514

)

 

 

108,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

20,395

 

 

 

23,006

 

 

 

63,294

 

 

 

54,334

 

Income (loss) before income taxes

 

 

(40,174

)

 

 

18,593

 

 

 

(218,808

)

 

 

54,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

2,243

 

 

 

4,673

 

 

 

(6,795

)

 

 

18,157

 

Net income (loss)

 

 

(42,417

)

 

 

13,920

 

 

 

(212,013

)

 

 

36,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.87

)

 

$

0.29

 

 

$

(4.35

)

 

$

0.79

 

Diluted (1)

 

$

(0.87

)

 

$

0.29

 

 

$

(4.35

)

 

$

0.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

$

(39,570

)

 

$

10,081

 

 

$

(230,140

)

 

$

20,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and

   equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

48,783

 

 

 

47,923

 

 

 

48,702

 

 

 

45,996

 

Diluted (1)

 

 

48,783

 

 

 

48,584

 

 

 

48,702

 

 

 

46,585

 

 

 

(1)

The impact of potentially dilutive securities for the three and nine months ended September 30, 2020 was not considered because the impact would be anti-dilutive.

 

See accompanying notes to the consolidated financial statements.

 

4


 

TIVITY HEALTH, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net income (loss)

 

$

(42,417

)

 

$

13,920

 

 

$

(212,013

)

 

$

36,271

 

Net change in fair value of interest rate swaps,

   net of income tax (expense) benefit of

   ($977), $1,276, $6,218 and $5,344, respectively

 

 

2,847

 

 

 

(3,839

)

 

 

(18,127

)

 

 

(16,075

)

Comprehensive income (loss)

 

$

(39,570

)

 

$

10,081

 

 

$

(230,140

)

 

$

20,196

 

 

See accompanying notes to the consolidated financial statements.

 

5


 

TIVITY HEALTH, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the Three and Nine Months Ended September 30, 2020 and 2019

(In thousands)

(Unaudited)

 

 

 

Preferred

Stock

 

 

Common

Stock

 

 

Additional

Paid-in

Capital

 

 

Retained

Earnings

(Accumulated

Deficit)

 

 

Treasury

Stock

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

 

Balance, June 30, 2019

 

$

 

 

$

47

 

 

$

497,789

 

 

$

71,888

 

 

$

(28,182

)

 

$

(12,236

)

 

$

529,306

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

13,920

 

 

 

 

 

 

(3,839

)

 

 

10,081

 

Exercise of stock options

 

 

 

 

 

1

 

 

 

329

 

 

 

 

 

 

 

 

 

 

 

 

330

 

Tax withholding for share-based

   compensation

 

 

 

 

 

 

 

 

(328

)

 

 

 

 

 

 

 

 

 

 

 

(328

)

Share-based employee compensation

   expense

 

 

 

 

 

 

 

 

6,009

 

 

 

 

 

 

 

 

 

 

 

 

6,009

 

Balance, September 30, 2019

 

$

 

 

$

48

 

 

$

503,799

 

 

$

85,808

 

 

$

(28,182

)

 

$

(16,075

)

 

$

545,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

$

 

 

$

41

 

 

$

347,487

 

 

$

49,655

 

 

$

(28,182

)

 

$

 

 

$

369,001

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

36,271

 

 

 

 

 

 

(16,075

)

 

 

20,196

 

Issuance of Common Stock in connection with Merger

 

 

 

 

 

6

 

 

 

132,832

 

 

 

 

 

 

 

 

 

 

 

 

132,838

 

Share-based compensation Replacement Awards related to Merger and attributable to pre-combination services

 

 

 

 

 

 

 

 

9,107

 

 

 

 

 

 

 

 

 

 

 

 

9,107

 

Exercise of stock options

 

 

 

 

 

1

 

 

 

700

 

 

 

 

 

 

 

 

 

 

 

 

701

 

Tax withholding for share-based

   compensation

 

 

 

 

 

 

 

 

(1,464

)

 

 

 

 

 

 

 

 

 

 

 

(1,464

)

Share-based employee compensation

   expense

 

 

 

 

 

 

 

 

15,266

 

 

 

 

 

 

 

 

 

 

 

 

15,266

 

Other

 

 

 

 

 

 

 

 

(129

)

 

 

(118

)

 

 

 

 

 

 

 

 

(247

)

Balance, September 30, 2019

 

$

 

 

$

48

 

 

$

503,799

 

 

$

85,808

 

 

$

(28,182

)

 

$

(16,075

)

 

$

545,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2020

 

$

 

 

$

48

 

 

$

505,760

 

 

$

(406,840

)

 

$

(28,182

)

 

$

(33,065

)

 

$

37,721

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

(42,417

)

 

 

 

 

 

2,847

 

 

 

(39,570

)

Exercise of stock options

 

 

 

 

 

 

 

 

118

 

 

 

 

 

 

 

 

 

 

 

 

118

 

Tax withholding for share-based

   compensation

 

 

 

 

 

 

 

 

(344

)

 

 

 

 

 

 

 

 

 

 

 

(344

)

Share-based employee compensation

   expense

 

 

 

 

 

 

 

 

4,316

 

 

 

 

 

 

 

 

 

 

 

 

4,316

 

Balance, September 30, 2020

 

$

 

 

$

48

 

 

$

509,850

 

 

$

(449,257

)

 

$

(28,182

)

 

$

(30,218

)

 

$

2,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

$

 

 

$

48

 

 

$

504,419

 

 

$

(237,284

)

 

$

(28,182

)

 

$

(12,091

)

 

$

226,910

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

(212,013

)

 

 

 

 

 

(18,127

)

 

 

(230,140

)

Exercise of stock options

 

 

 

 

 

 

 

 

719

 

 

 

 

 

 

 

 

 

 

 

 

719

 

Tax withholding for share-based

   compensation

 

 

 

 

 

 

 

 

(3,293

)

 

 

 

 

 

 

 

 

 

 

 

(3,293

)

Share-based employee compensation

   expense

 

 

 

 

 

 

 

 

8,005

 

 

 

 

 

 

 

 

 

 

 

 

8,005

 

Other