Medifast Continues Down Sharply, Down 23% (MED)

Medifast, Inc. MED shares continue their sharp decline today, down some 23% after announcing the company would be restating its year-end financial statements.

Straight from the press release:

The Company requires additional time to complete its year-end financial statements. The delay in releasing results is due to additional time needed for the Company to review the recognition of certain expenses in prior periods, and therefore, complete its consolidated financial statements for fiscal 2010 and its Annual Report on Form 10-K. Accordingly, the Company anticipates filing a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission with respect to its Form 10-K, which allows the Company an additional 15 calendar days to file the Form 10-K which is otherwise due on March 16, 2011. Details regarding the specific release date and conference call will be provided in a forthcoming news release.

In 2010, Medifast, Inc. engaged the firm of McGladrey & Pullen, LLP/ RSM McGladrey to perform audit and tax services for Medifast, Inc. The Company determined that the firm has the national experience to provide audit and tax services to Medifast, Inc., one of the fastest growing small company's according to Forbes, which named it the #1 Small Company in America.

The Company will be announcing unaudited first quarter 2011 revenue and trending of key metrics on the fourth quarter and year end conference call.

At last check, shares were off $5.14 to $16.76, a loss of over 23%.