PR
Newswire -- August 5, 2010
NEW
YORK, Aug. 5 /PRNewswire-FirstCall/ -- Weight Watchers International, Inc.
(NYSE:
WTW) today announced its results for the second quarter of fiscal 2010,
which
ended July 3, 2010, and narrowed its fiscal 2010 earnings guidance.
Second
quarter 2010 highlights:
-- Revenue of $376.7 million, up 1.1%, and EPS of $0.73 versus $0.76 in the
prior year period
-- Newly launched North American marketing campaigns exceeded
expectations
-- Success of new program innovation -- ProPoints -- in Continental
Europe
continued; CE paid weeks up 11.2%
-- Internet revenues grew 20.6%;
Weight Watchers Online active subscriber
base passed the 1 million milestone
"The
second quarter 2010 results of the Weight Watchers business improved
significantly
after a disappointing first quarter," commented David Kirchhoff,
President
and Chief Executive Officer of the Company. "In the second quarter, we
saw
acceleration of revenue growth in our WeightWatchers.com business and
substantial
stabilization of our North American meeting business as a result of
strong
spring marketing campaigns. This is all particularly gratifying as most
of
our planned growth initiatives will not provide their positive contribution
until
we move into fiscal 2011."
"Regarding
our EPS outlook for the year," added Kirchhoff, "we are raising the
lower
end of our EPS range by $0.10 to $2.35 while keeping the upper end at
$2.50."
Q2 Fiscal 2010 Summary
----------------------
Net Income (in
millions)
--------------
Three Months
Ended
-------------
July July
3, 4, %
2010 2009 Change
---- ---- ------
Net Income / EPS $56.3 $58.8 -4.2%
Adjustments
-----------
U.K. Self-Employment
Tax Ruling --- -$0.7
Restructuring Charges --- $1.2
--- ----
Adjusted
Net Income /
EPS $56.3 $59.2 -5.0%
----- -----
_____________________________
Fully Diluted EPS
-----------------
Three Months
Ended
-------------
July July
3, 4, %
2010 2009 Change
---- ---- ------
Net Income
/ EPS $0.73 $0.76 -3.9%
Adjustments
-----------
U.K. Self-Employment
Tax Ruling --- -$0.01
Restructuring Charges --- $0.02
--- -----
Adjusted
Net Income /
EPS $0.73 $0.77 -5.2%
----- -----
_____________________________
Note: Totals may not sum due to rounding.
See "Reconciliation of Non-GAAP
Financial Measures" attached to this
release and the reconciliations
included elsewhere in
this release for further detail on adjustments to GAAP
financial measures.
Second
quarter fiscal 2010 net income was $56.3 million versus $58.8 million in
the
prior year period, a decrease of 4.2%. Earnings per fully diluted share
(EPS)
for Q2 2010 were $0.73 versus $0.76 in the prior year period, a decrease
of
3.9%. As
previously reported, in February 2010, the Company received an adverse tax
court
ruling with regard to leader self-employment status in the UK. This ruling
resulted
in a charge to the fourth quarter of fiscal 2009, $1.1 million
(pre-tax) of
which related to Q2 2009. This adverse ruling also has an ongoing
similar impact
on earnings in each subsequent quarter. Adjusting Q2 2009 for
comparability
reduces Q2 2009 EPS by $0.01 per fully diluted share. In addition,
the Company
incurred restructuring charges in Q2 2009 associated with its
previously reported
cost savings initiatives of $2.0 million (pre-tax) which
reduced Q2 2009 EPS
by $0.02 per fully diluted share. After these adjustments,
Q2 2009 EPS would
have been $0.77. Q2 2010 EPS of $0.73, which included a $0.02
increase per
fully diluted share in interest expense compared to the prior year
period,
would have declined by 5.2% versus the adjusted prior year period.
Q2 2010 Global Results
----------------------
Three Months Ended
------------------
(in millions except
percentages)
July 3, July 4, % Change % Change
2010 2009 -------- Adjusted for
----
---- Constant
Currency
--------
Revenues $376.7 $372.5 1.1% 1.8%
Operating Income $112.2 $111.3 0.7% 1.7%
Adjustments
-----------
U.K.
Self-Employment Tax
Ruling --- -$1.1
Restructuring Charges --- $2.0
--- ----
Adjusted Operating Income $112.2 $112.3 -0.1% 0.9%
Total Paid Weeks 36.8 34.2 7.7% N/A
Meeting Paid Weeks 23.3 23.1 0.8% N/A
Online Paid Weeks 13.5 11.0 22.2% N/A
Attendance 13.9 14.5 -4.4% N/A
Second
quarter 2010 revenues increased 1.8% versus the prior year period on a
constant
currency basis, driven by strong performance in the WeightWatchers.com
business
and continued growth in the Continental Europe (CE) meeting business,
where
attendance and paid weeks were above the prior year period as a result of
the
new ProPoints innovation.
Operating
income for Q2 2010 was $112.2 million, up 1.7% on a constant currency
basis.
After adjusting Q2 2009 operating income to eliminate $2.0 million of
restructuring
charges and adding $1.1 million of charges associated with the UK
self-employment
tax court ruling, Q2 2010 operating income would have increased
0.9% on a constant
currency basis.
Q2 2010 NACO Performance
------------------------
Three Months Ended
------------------
(in millions except July 3, July
4,
percentages) 2010 2009 % Change
-------- -------- --------
Meeting
Revenues $180.4 $180.3 <0.1%
Meeting Paid Weeks 14.4 14.6 -1.8%
Attendance 8.1 8.5 -4.9% Second
quarter 2010 revenues for the North American meeting business (NACO) were
up
marginally versus the prior year period on the strength of in-meeting product
sales
performance, which was up 4.6%. The launch of the new marketing campaign
in
Q2 2010 helped drive volume trend improvements versus Q2 2009 as compared to
the
relative trends in Q1 2010. Paid weeks versus the prior year period declined
1.8%
in Q2 2010 as compared to a decline of 8.0% in Q1 2010. Attendance versus
the
prior year period declined 4.9% in Q2 2010 as compared to a decline of 16.0%
in
Q1 2010.
Q2 2010 International Performance
---------------------------------
Three Months Ended
------------------
(in millions except
percentages)
July 3, July 4, % Change % Change
Adjusted
2010 2009 -------- for
---- ---- Constant
Currency
--------
International Meeting
Revenues
$102.1 $105.6 -3.3% 0.1%
UK Meeting Revenues $36.7 $40.7 -9.9% -5.7%
CE
Meeting Revenues $54.9 $55.0 -0.2% 5.8%
International Meeting
Paid Weeks 8.9 8.5 5.3% N/A
UK Meeting Paid Weeks
4.4 4.3 1.2% N/A
CE Meeting Paid Weeks 3.8 3.4 11.2% N/A
International
Attendance 5.8 6.0 -3.7% N/A
UK Attendance 2.9 3.1 -8.5%
N/A
CE Attendance 2.4 2.3 3.2% N/A Second
quarter 2010 International meeting revenues increased by 0.1% on a
constant
currency basis, with strong performance in CE offsetting UK performance
shortfalls.
-- UK:Though performing somewhat better than in the first quarter 2010, the
UK continued to struggle in the second quarter 2010 as the meeting
business
was cycling against a prior year period which had the benefit
of a program
innovation. Second quarter 2010 paid weeks increased 1.2%,
while attendances
decreased 8.5% versus Q2 2009.
-- CE: Second quarter 2010 paid weeks and attendances
increased 11.2% and
3.2%, respectively, versus Q2 2009, with revenues up 5.8%
on a constant
currency basis on the continued strength of the new ProPoints
program
innovation.
Q2 2010 WeightWatchers.com Performance
--------------------------------------
Three Months Ended
------------------
(in millions except
percentages
and as
noted) July 3, July 4, % Change % Change
Adjusted
2010 2009
-------- for
---- ---- Constant
Currency
--------
Internet Revenues
$60.6 $50.2 20.6% 20.3%
Online Paid Weeks 13.5 11.0 22.2% N/A
End of Period Active
Online Subscribers
(in
thousands) 1,060.9 843.1 25.8% N/A
The
WeightWatchers.com business continued to deliver double-digit top-line
growth
in the second quarter of 2010 versus the prior year period. End of period
active
Online subscribers grew globally by 25.8% versus the prior year period.
Growth
was fueled by a new, successful advertising campaign in the US,
additional
TV advertising in other select markets and the beneficial impact of
the new
ProPoints innovation in CE.
First Half 2010 Summary
-----------------------
Net Income (in
millions)
--------------
Six Months
Ended
-----------
July July
3, 4, %
2010 2009 Change
---- ---- ------
Net Income
/ EPS $100.9 $106.1 -4.9%
Adjustments
-----------
U.K. Self-Employment
Tax Ruling --- -1.5
Restructuring Charges --- 3.1
--- ---
Adjusted
Net Income /
EPS $100.9 $107.7 -6.3%
------ ------
_____________________________
Fully Diluted EPS
-----------------
Six Months
Ended
-----------
July July
3, 4, %
2010 2009 Change
---- ---- ------
Net Income
/ EPS $1.31 $1.38 -5.1%
Adjustments
-----------
U.K. Self-Employment
Tax Ruling --- -0.02
Restructuring Charges --- 0.04
--- ----
Adjusted
Net Income /
EPS $1.31 $1.40 -6.4%
----- -----
_____________________________
Note: Totals may not sum due to rounding.
See "Reconciliation of Non-GAAP
Financial Measures" attached to this
release and the reconciliations
included elsewhere in
this release for further detail on adjustments to GAAP
financial measures.
First
half fiscal 2010 net income was $100.9 million versus $106.1 million in
the
prior year period, down 4.9%. After adjusting the prior year period for the
UK
self-employment tax ruling and restructuring charges associated with cost
savings
initiatives as previously described, first half 2010 net income would
have
decreased 6.3%. EPS for first half 2010 were $1.31, a 5.1% decrease
compared
to the first half of fiscal 2009. After adjusting first half 2009 as
set forth
above, first half 2010 EPS would have decreased $0.09 per fully
diluted share
versus the prior year period, $0.04 of which was due to an
increase in interest
expense in the first half of 2010 compared to the prior
year period.
First Half 2010 Global Results
------------------------------
Six Months Ended
----------------
(in millions except
percentages)
July 3, July 4, % Change % Change
Adjusted
2010 2009 -------- for
---- ---- Constant
Currency
--------
Revenues $764.7 $763.1 0.2% -1.4%
Operating Income $203.6 $205.2 -0.8% -1.4%
Adjustments
-----------
U.K. Self-Employment
Tax Ruling --- -$2.1
Restructuring Charges --- $5.1
--- ----
Adjusted Operating
Income $203.6 $208.2 -2.2% -2.8%
Total Paid Weeks 71.5 68.7 4.2% N/A
Meeting Paid Weeks 46.0 46.9 -1.7% N/A
Online Paid Weeks 25.5 21.8 16.8% N/A
Attendance 28.6 31.2 -8.4% N/A First
half 2010 revenues declined 1.4% on a constant currency basis, driven
primarily
by first quarter revenue declines in the NACO and UK meeting
businesses resulting
from a combination of bad weather and cycling against a
prior year innovation.
These declines were partially offset by double-digit
revenue growth in the
WeightWatchers.com business in the first half of 2010, a
new program innovation
launch in CE in 2010, and improved NACO and UK meeting
business performance
in Q2 2010. Operating
income for the first half 2010 was $203.6 million, down 0.8%. After
adjusting
the prior year period for the UK self-employment tax ruling and
restructuring
charges associated with cost savings initiatives as previously
described, first
half 2010 operating income would have declined 2.8% on a
constant currency
basis. Full
Year Fiscal 2010 Earnings Guidance The
Company has narrowed its full year fiscal 2010 earnings guidance range from
between
$2.25 to $2.50 per fully diluted share to a range of $2.35 to $2.50 per
fully
diluted share. Second
Quarter 2010 Conference Call The
Company has scheduled a conference call today at 5:00 p.m. ET. During the
conference
call, David Kirchhoff, President and Chief Executive Officer of the
Company,
and Ann Sardini, Chief Financial Officer of the Company, will discuss
second
quarter 2010 results and answer questions from the investment community.
Live
audio of the conference call will be simultaneously webcast over the
Internet
on the Company's corporate website,
www.weightwatchersinternational.com. A
replay of the webcast will be available
on this site for approximately 90 days. Statement
regarding Non-GAAP Financial Measures The
following provides information regarding non-GAAP financial measures used in
this
earnings release: To
supplement the Company's consolidated statement of operations presented in
accordance
with accounting principles generally accepted in the United States
(GAAP),
the Company has disclosed non-GAAP financial measures of operating
results
that exclude or adjust certain items. Net income, operating income and
earnings
per fully diluted share are discussed in this release both as reported
(on
a GAAP basis) and, with respect to the second quarter and first half of
fiscal
2009, as adjusted (on a non-GAAP basis) to include the impact of the
previously
reported adverse UK tax court ruling relating to the self-employment
status
of the Company's UK leaders and to exclude the impact of the
restructuring
charges associated with the Company's previously reported cost
savings initiatives.
In addition, the Company presents certain of its financial
results on a constant
currency basis in addition to GAAP results. Constant
currency information compares
results between periods as if exchange rates had
remained constant period-over-period.
In this release and any attachments, the
Company calculates constant currency
by calculating current-year results using
prior-year foreign currency exchange
rates. Management
believes these non-GAAP financial measures provide useful
supplemental information
for its and its investors' evaluation of the Company's
business performance
and are useful for period-over-period comparisons of the
performance of the
Company's business. While the Company believes that these
financial measures
are useful in evaluating the Company's business, this
information should be
considered as supplemental in nature and is not meant to
be considered in isolation
or as a substitute for the related financial
information prepared in accordance
with GAAP. In addition, these non-GAAP
financial measures may not be the same
as similarly entitled measures reported
by other companies. See "Reconciliation
of Non-GAAP Financial Measures" attached
to this release and reconciliations
included elsewhere in this release for a
reconciliation of the non-GAAP financial
measures to the most directly
comparable GAAP measures. About
Weight Watchers International, Inc. Weight
Watchers International, Inc. is the world's leading provider of weight
management
services, operating globally through a network of Company-owned and
franchise
operations. Weight Watchers holds almost 50,000 meetings each week
where members
receive group support and learn about healthy eating patterns,
behavior modification
and physical activity. WeightWatchers.com provides
innovative, subscription
weight management products over the Internet and is the
leading Internet-based
weight management provider in the world. In addition,
Weight Watchers offers
a wide range of products, publications and programs for
those interested in
weight loss and weight control. This
news release and any attachments include "forward-looking statements,"
within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section
21E of the Securities Exchange Act of 1934, as amended, or the Exchange
Act,
including, in particular, earnings guidance and any statements about the
Company's
plans, strategies and prospects. The Company generally uses the words
"may,"
"will," "could," "expect," "anticipate,"
"believe," "estimate," "plan,"
"intend"
and similar expressions in this news release and any attachments to
identify
forward-looking statements. The Company bases these forward-looking
statements
on its current views with respect to future events and financial
performance.
Actual results could differ materially from those projected in the
forward-looking
statements. These forward-looking statements are subject to
risks, uncertainties
and assumptions, including, among other things: competition
from other weight
management industry participants or the development of more
effective or more
favorably perceived weight management methods; the Company's
ability to continue
to develop innovative new services and products and enhance
its existing services
and products, or the failure of its services and products
to continue to appeal
to the market; the effectiveness of the Company's
marketing and advertising
programs; the impact on the Weight Watchers brand of
actions taken by the Company's
franchisees and licensees; risks and
uncertainties associated with the Company's
international operations, including
economic, political and social risks and
foreign currency risks; the Company's
ability to successfully make acquisitions
or enter into joint ventures,
including its ability to successfully integrate,
operate or realize the
projected benefits of such businesses; uncertainties
related to a downturn in
general economic conditions or consumer confidence;
the seasonal nature of the
Company's business; the impact of events that discourage
people from gathering
with others; the Company's ability to enforce its intellectual
property rights
both domestically and internationally, as well as the impact
of its involvement
in any claims related to intellectual property rights; uncertainties
regarding
the satisfactory operation of the Company's information technology
or systems;
risks associated with unauthorized penetration of the Company's
information
security; the impact of disputes with the Company's franchise operators;
the
impact of existing and future laws and regulations; the impact of the Company's
debt
service obligations and restrictive debt covenants; the possibility that
the
interests of the Company's majority owner will conflict with the other
holders
of the Company's common stock; and other risks and uncertainties,
including
those detailed from time to time in the Company's periodic reports
filed with
the Securities and Exchange Commission. You should not put undue
reliance on
any forward-looking statements. You should understand that many
important factors,
including those discussed herein, could cause the Company's
results to differ
materially from those expressed or suggested in any
forward-looking statement.
Except as required by law, the Company does not
undertake any obligation to
update or revise these forward-looking statements to
reflect new information
or events or circumstances that occur after the date of
this news release or
to reflect the occurrence of unanticipated events or
otherwise. Readers are
advised to review the Company's filings with the
Securities and Exchange Commission
(which are available from the SEC's EDGAR
database at www.sec.gov, at various
SEC reference facilities in the United
States and via the Company's website
at www.weightwatchersinternational.com).
Contact Information:
Investors:
Weight Watchers International, Inc. Brainerd Communicators, Inc.
Sarika Sahni Corey Kinger
Investor Relations (212) 986-6667
(212) 589-2751
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(IN MILLIONS)
UNAUDITED
July 3, January 2,
2010 2010
---- ----
ASSETS
Current assets $202.5 $199.9
Property and equipment, net 31.6 36.0
Goodwill, franchise rights and other intangible
assets, net 837.0 841.6
Deferred financing costs, other 19.0 10.0
----
TOTAL ASSETS $1,090.1 $1,087.5
======== ========
LIABILITIES AND TOTAL DEFICIT
Current liabilities $547.0 $536.0
Long-term
debt 1,183.9 1,238.0
Deferred income taxes 40.0 34.6
Other 12.7 12.2
TOTAL LIABILITIES $1,783.6 $1,820.8
-------- --------
Shareholders' deficit (698.4) (736.5)
Noncontrolling interest 4.9 3.2
TOTAL DEFICIT (693.5) (733.3)
------ ------
TOTAL LIABILITIES AND TOTAL DEFICIT $1,090.1 $1,087.5
======== ========
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF INCOME
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
Three Months
------------
July 3,
2010 July 4, 2009
------- ------------
Reported Reported
Results Results
------- -------
Revenues, net $376.7 $372.5
Cost of revenues 165.0 165.0
----- -----
Gross profit 211.7 207.5
Marketing expenses 56.7 53.2
Selling, general
and
administrative expenses 42.8 43.0
---- ----
Operating income 112.2
111.3
Interest expense 19.6 16.9
Other expense (income), net 1.1 (0.5)
--- ----
Income before income taxes 91.5 94.9
Provision for income taxes
35.6 36.9
---- ----
Net income 55.9 58.0
Net income attributable to
the
noncontrolling interest 0.4 0.8
--- ---
Net income attributable
to WWI $56.3 $58.8
===== =====
Earnings Per Share attributable
to WWI:
Basic $0.73 $0.76
===== =====
Diluted $0.73 $0.76
===== =====
Weighted average common shares
outstanding:
Basic 76.8 77.0
==== ====
Diluted 76.9 77.1
==== ====
Three Months
------------
July 4, 2009
------------
Impact of
Impact of U.K. Adjusted
Restructuring Self- Results
------------- Employment
-------
Ruling
------
Revenues, net $- $- $372.5
Cost of revenues - 1.1 166.1
--- --- -----
Gross profit - (1.1) 206.4
Marketing expenses - - 53.2
Selling, general
and
administrative expenses (2.0) - 41.0
---- --- ----
Operating income
2.0 (1.1) 112.3
Interest expense - - 16.9
Other expense (income), net
- - (0.5)
--- --- ----
Income before income taxes 2.0 (1.1) 95.8
Provision
for income taxes 0.8 (0.3) 37.4
--- ---- ----
Net income 1.2 (0.7) 58.4
Net income attributable to the
noncontrolling interest - - 0.8
--- ---
---
Net income attributable to WWI $1.2 $(0.7) $59.2
==== ===== =====
Earnings Per Share attributable
to WWI:
Basic $0.02 $(0.01) $0.77
===== ====== =====
Diluted $0.02 $(0.01) $0.77
===== ====== =====
Weighted average common shares
outstanding:
Basic 77.0 77.0 77.0
====
==== ====
Diluted 77.1 77.1 77.1
==== ==== ====
Note: Totals may not sum due to rounding.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF INCOME
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
Six Months Ended
----------------
July 3,
2010 July 4, 2009
--------
------------
Reported Reported
Results Results
------- -------
Revenues, net $764.7 $763.1
Cost of revenues 341.3 343.5
----- -----
Gross profit 423.4 419.6
Marketing expenses 131.2 127.7
Selling, general
and
administrative expenses 88.6 86.7
---- ----
Operating income 203.6
205.2
Interest expense 38.3 33.7
Other expense (income), net 1.6 -
--- ---
Income before income taxes 163.7 171.5
Provision for income taxes
63.7 66.7
---- ----
Net income 100.0 104.8
Net income attributable
to the
noncontrolling interest 0.9 1.3
--- ---
Net income attributable
to WWI $100.9 $106.1
====== ======
Earnings Per Share attributable
to WWI:
Basic $1.31 $1.38
===== =====
Diluted $1.31 $1.38
===== =====
Weighted average common shares
outstanding:
Basic 76.9 77.0
==== ====
Diluted 77.1 77.1
==== ====
Six Months Ended
----------------
July 4, 2009
------------
Impact
of
Impact of U.K. Adjusted
Restructuring Self- Results
-------------
Employment -------
Ruling
------
Revenues, net $- $- $763.1
Cost of revenues - 2.1 345.6
--- --- -----
Gross profit - (2.1) 417.5
Marketing expenses - - 127.7
Selling, general
and
administrative expenses (5.1) - 81.6
---- --- ----
Operating income
5.1 (2.1) 208.2
Interest expense - - 33.7
Other expense (income), net
- - -
--- --- ---
Income before income taxes 5.1 (2.1) 174.5
Provision
for income taxes 2.0 (0.6) 68.1
--- ---- ----
Net income 3.1 (1.5) 106.4
Net income attributable to the
noncontrolling interest - - 1.3
--- ---
---
Net income attributable to WWI $3.1 $(1.5) $107.7
==== ===== ======
Earnings Per Share attributable
to WWI:
Basic $0.04 $(0.02) $1.40
===== ====== =====
Diluted $0.04 $(0.02) $1.40
===== ====== =====
Weighted average common shares
outstanding:
Basic 77.0 77.0 77.0
====
==== ====
Diluted 77.1 77.1 77.1
==== ==== ====
Note: Totals may not sum due to rounding.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
UNAUDITED
Three Months Ended
------------------
July 3, July 4,
2010 2009
------- -------
Total Revenues (in $ millions)
------------------------------
Meeting
Fees 214.2 216.0
In-Meeting Product Sales 68.2 69.8
Internet Revenues
60.6 50.2
All Other 33.7 36.4
Total Revenues 376.7 372.5
North America (in $ millions)
-----------------------------
Meeting Fees
143.5 145.0
In-Meeting Product Sales 36.8 35.2
Total 180.4 180.3
International (in $ millions)
-----------------------------
Meeting Fees
70.7 71.0
In-Meeting Product Sales 31.4 34.6
Total 102.1 105.6
Paid Weeks (in millions) (1)
-----------------------------
North America
Meeting Paid Weeks 14.4 14.6
UK Meeting Paid Weeks 4.4 4.3
CE Meeting
Paid Weeks 3.8 3.4
Other Meeting Paid Weeks 0.7 0.7
Sub-total Meeting
Paid Weeks 23.3 23.1
Online Paid Weeks 13.5 11.0
---- ----
Total Paid
Weeks 36.8 34.2
Attendance (in millions)
------------------------
North America 8.1 8.5
UK 2.9 3.1
CE 2.4 2.3
Other 0.5 0.5
--- ---
Total Attendance 13.9
14.5
WeightWatchers.com
(in thousands)
---------------------------------
End of Period Active
Online
Subscribers 1,061 843
Note: Totals may not sum due to rounding.
(1) The Paid Week metric reports total paid weeks by Weight Watchers
customers
in
Company-owned operations for a given period. For meetings, Paid
Weeks
is the
sum of total paid commitment plan weeks and total pay-as-you-go
weeks for a
given period. For Online, Paid Weeks is the total paid Weight
Watchers Online
subscriber weeks for a given period.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
UNAUDITED
Six Months Ended
----------------
July 3, July 4,
2010 2009
-------
------- Total
Revenues (in $ millions)
------------------------------
Meeting Fees 432.5
441.9
In-Meeting Product Sales 148.2 149.7
Internet Revenues 115.9 98.7
All Other 68.2 72.8
Total Revenues 764.7 763.1
North America (in $ millions)
-----------------------------
Meeting Fees
285.9 301.0
In-Meeting Product Sales 77.0 76.8
Total 362.9 377.8
International (in $ millions)
-----------------------------
Meeting Fees
146.5 141.0
In-Meeting Product Sales 71.3 72.9
Total 217.8 213.9
Paid Weeks (in millions) (1)
-----------------------------
North America
Meeting Paid Weeks 28.3 29.8
UK Meeting Paid Weeks 8.5 8.6
CE Meeting
Paid Weeks 7.7 7.0
Other Meeting Paid Weeks 1.5 1.5
Sub-total Meeting
Paid Weeks 46.0 46.9
Online Paid Weeks 25.5 21.8
---- ----
Total Paid
Weeks 71.5 68.7
. .
Attendance (in millions)
------------------------
North America 16.5 18.5
UK 5.8 6.5
CE 5.2 5.1
Other 1.1 1.2
---
---
Total Attendance 28.6 31.2
WeightWatchers.com (in thousands)
---------------------------------
End
of Period Active Online
Subscribers 1,061 843
Note: Totals may not sum due to rounding.
(1) The Paid Week metric reports total paid weeks by Weight Watchers
customers
in
Company-owned operations for a given period. For meetings, Paid
Weeks
is the
sum of total paid commitment plan weeks and total pay-as-you-go
weeks for a given
period. For Online, Paid Weeks is the total paid Weight
Watchers
Online subscriber
weeks for a given period.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PERCENTAGES)
UNAUDITED
Q2 2010
-------
Currency Constant
GAAP Adjustment Currency
----
---------- --------
Selected Financial Data
Consolidated Company
Revenues
$376.7 $2.5 $379.2
NACO
Meeting Revenues $180.4 $(1.3) $179.1
Total Revenues $195.6 $(1.3)
$194.3 International
Meeting Revenues $102.1 $3.6 $105.7
Total Revenues $113.7 $3.9 $117.6
UK
Meeting Revenues $36.6 $1.7 $38.3
Total Revenues $40.8 $1.9 $42.7
CE
Meeting Revenues $54.9 $3.3 $58.2
Total Revenues $60.5 $3.6 $64.1
Internet Revenues $60.6 $(0.1) $60.5
Operating Income $112.2 $1.1 $113.3
Operating Income Margin 29.8% 29.9%
Net Income $56.3 $1.7 $58.0
Q2 2009
-------
GAAP Adjustments* Adjusted
---- ------------ --------
Selected Financial
Data
Consolidated Company
Revenues $372.5 - $372.5
NACO
Meeting Revenues $180.3 - $180.3
Total Revenues $196.1 - $196.1
International
Meeting Revenues $105.6 - $105.6
Total Revenues $118.8 -
$118.8 UK
Meeting Revenues $40.7 - $40.7
Total Revenues $45.4 - $45.4
CE
Meeting Revenues $55.0 - $55.0
Total Revenues $60.9 - $60.9
Internet Revenues $50.2 - $50.2
Operating Income $111.3 $0.9 $112.3
Operating Income Margin 29.9% 30.1%
Net Income $58.8 $0.5 $59.3
Q2 2010 Variance
----------------
2010 Constant
2010 GAAP Currency
--------- --------------
vs vs
2009 vs 2009 2009 vs 2009
GAAP Adjusted
GAAP Adjusted
---- -------- ---- --------
Selected Financial Data
Consolidated Company
Revenues 1.1% 1.1% 1.8% 1.8%
NACO
Meeting Revenues 0.0% 0.0% -0.6% -0.6%
Total Revenues -0.3% -0.3%
-0.9% -0.9% International
Meeting Revenues -3.3% -3.3% 0.1% 0.1%
Total Revenues -4.3% -4.3% -1.0% 1.0%
UK
Meeting Revenues -9.9% -9.9% -5.7% -5.7%
Total Revenues -10.1% -10.1%
-6.0% -6.0% CE
Meeting Revenues -0.2% -0.2% 5.8% 5.8%
Total Revenues -0.8% -0.8% 5.2% 5.2%
Internet Revenues 20.6% 20.6% 20.3% 20.3%
Operating Income 0.7% -0.1% 1.7% 0.9%
Operating Income Margin
Net Income -4.2% -5.0% -1.4% -2.2%
Note: Totals may not sum due to rounding.
* Includes impact of U.K. self-employment ruling of $1.1 million and
excludes
restructuring charges of $2.0 million
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PERCENTAGES)
UNAUDITED
YTD 2010
--------
Currency Constant
GAAP Adjustment Currency
----
---------- --------
Selected Financial Data
Consolidated Company
Revenues
$764.7 $(12.6) $752.1
NACO
Meeting Revenues $362.9 $(3.0) $359.9
Total Revenues $390.5 $(3.0)
$387.5 International
Meeting Revenues $217.8 $(6.5) $211.3
Total Revenues $243.8 $(7.6) $236.2
UK
Meeting Revenues $73.8 $(1.1) $72.7
Total Revenues $82.7 $(1.3) $81.4
CE
Meeting Revenues $120.7 $(0.7) $120.0
Total Revenues $133.7 $(0.9)
$132.8 Internet
Revenues $115.9 $(1.8) $114.1
Operating Income $203.6 $(1.3) $202.3
Operating Income Margin 26.6% 26.9%
Net Income $100.9 $(0.2) $101.1
YTD 2009
--------
GAAP Adjustments* Adjusted
---- ------------ --------
Selected Financial
Data
Consolidated Company
Revenues $763.1 - $763.1
NACO
Meeting Revenues $377.8 - $377.8
Total Revenues $407.7 - $407.7
International
Meeting Revenues $213.8 - $213.8
Total Revenues $240.9 -
$240.9 UK
Meeting Revenues $79.5 - $79.5
Total Revenues $88.6 - $88.6
CE
Meeting Revenues $114.7 - $114.7
Total Revenues $127.8 - $127.8
Internet Revenues $98.7 - $98.7
Operating Income $205.2 $3.0 $208.2
Operating Income Margin 26.9% 27.3%
Net Income $106.1 $1.6 $107.7
YTD 2010 Variance
-----------------
2010 Constant
2010 GAAP Currency
--------- --------------
vs vs
2009 vs 2009 2009 vs 2009
GAAP Adjusted
GAAP Adjusted
---- -------- ---- --------
Selected Financial Data
Consolidated Company
Revenues 0.2% 0.2% -1.4% -1.4%
NACO
Meeting Revenues -4.0% -4.0% -4.7% -4.7%
Total Revenues -4.2% -4.2%
-5.0% -5.0% International
Meeting Revenues 1.8% 1.8% -1.2% -1.2%
Total Revenues 1.2% 1.2% -1.9% -1.9%
UK
Meeting Revenues -7.1% -7.1% -8.6% -8.6%
Total Revenues -6.7% -6.7%
-8.2% -8.2% CE
Meeting Revenues 5.2% 5.2% 4.6% 4.6%
Total Revenues 4.6% 4.6% 3.9% 3.9%
Internet Revenues 17.4% 17.4% 15.7% 15.7%
Operating Income -0.8% -2.2% -1.4% -2.8%
Operating Income Margin
Net Income -4.9% -6.3% -4.7% -6.1%
Note: Totals may not sum due to rounding.
* Includes impact of U.K. self-employment ruling of $2.1 million and
excludes
restructuring charges of $5.1 million SOURCE
Weight Watchers International, Inc.
Subject
Codes: PC/t.100805160855114, PT/lang.en, PC/ticker, IN/SPM,
IN/FOD, IN/REA,
IN/HEA, SU/ERN, SU/ERP, SU/CCA,
RE/New_York, PC/priority.r, PC/category.f,
PC/class.1278,
PC/class.1187, PC/WAVO_.y...., PC/APT_.y..., PC/city_y,
PC/wavo2_y, PC/class.1255, PC/WAVO_....r., PC/APT_....r,
PC/trade_r, PC/wavo5_r,
PC/DataFeat_metci, PC/port_32,
PC/Billing_FC1, PC/Billing_IRW, PC/Billing_NYM,
PC/Billing_RWB, PC/Billing_TNW, PC/1stAcc_909447,
PC/bureau_NY, PC/port_01,
PC/port_96, PC/port_31,
PC/port_33, PC/port_19, PC/port_91, PC/contact,
PC/website, PC/id_NY46651
Company Codes: NYSE:WTW, NYSE:WTW
| 
