Navigation Links
Weight Watchers Announces Third Quarter 2007 Results
Date:11/6/2007

NEW YORK, Nov. 6 /PRNewswire-FirstCall/ -- Weight Watchers International, Inc. (NYSE: WTW) today announced results for the third quarter ended September 29, 2007.

Third Quarter 2007 Results

For the third quarter of 2007, net revenues increased 18.5% or $52.7 million to $337.5 million, up from $284.8 million in the third quarter of 2006. Fully diluted earnings per share were up 19.2% in the third quarter of 2007 to $0.62 versus $0.52 in the prior year period.

Net income in the third quarter of 2007 was $49.5 million versus $50.6 million in the third quarter of 2006. During the first quarter of 2007, the Company increased its debt level to finance its self-tender and repurchase of 19.1 million shares. As a result, interest expense in the third quarter of 2007 was $28.3 million, up from $13.2 million in the third quarter of 2006, while fully diluted shares of the Company in the third quarter of 2007 decreased to 79.6 million shares from 98.0 million shares in the third quarter of 2006.

First Nine Months 2007 Results

For the first nine months of 2007, net revenues increased 18.5% or $175.2 million to $1,123.1 million, up from $947.9 million in the first nine months of 2006. Fully diluted earnings per share were $1.98 in the first nine months of 2007 versus $1.66 in the prior year period. Excluding non-recurring expense associated with the early extinguishment of debt of $0.02 per share from the first nine months of 2007 and $0.01 per share from the first nine months of 2006, fully diluted earnings per share were up 19.8% to $2.00 as compared to $1.67 in the prior year period.

During the first nine months of 2007, net income was $161.4 million versus $165.5 million in the first nine months of 2006. As previously explained, the Company increased its debt level during the first quarter of 2007. As a result, interest expense in the first nine months of 2007 was $82.6 million, up from $35.9 million in the first nine months of 2006, while fully diluted shares of the Company decreased.

Commenting on the Company's results, David Kirchhoff, President and Chief Executive Officer, said, "We are pleased with the solid financial results in the third quarter of 2007, which were primarily the result of the continuing positive impact of our Monthly Pass commitment plan in North America and the strong performance of our Weight Watchers Online internet product. This year, we have put in place the building blocks which will allow us to benefit from more effective marketing and new program innovations in 2008."

The Company narrowed its full year 2007 earnings guidance range to between $2.43 and $2.48 per fully diluted share, which excludes $0.02 per share of non-recurring expense associated with the early extinguishment of debt in the first quarter of 2007.

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, and Ann Sardini, Chief Financial Officer, will discuss third quarter 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, http://www.weightwatchersinternational.com. A replay of the webcast will be available on this site for 30 days.

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 over 50,000 weekly meetings where members receive group support and education 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors. Readers are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. The reports filed by the Company pursuant to United States securities laws contain discussions of these risks and uncertainties. The Company assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are advised to review our filings with the United States Securities and Exchange Commission (which are available from the SEC's EDGAR database at http://www.sec.gov, at various SEC reference facilities in the United States and via the Company's website at http://www.weightwatchersinternational.com).

Contact Information:

Weight Watchers International, Inc. Brainerd Communicators, Inc.

Sarika Sahni Corey Kinger

Manager, Investor Relations (212) 986-6667

(212) 589-2751

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN MILLIONS)

UNAUDITED

September 29, December 30,

2007 2006

ASSETS

Current assets $184.0 $154.7

Property and equipment, net 31.8 31.0

Goodwill, franchise rights and other

intangible assets, net 801.6 764.3

Deferred income taxes 10.5 43.9

Other 9.6 8.5

TOTAL ASSETS $1,037.5 $1,002.4

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities $317.9 $236.5

Long-term debt 1,655.0 830.2

Other 9.3 4.1

TOTAL LIABILITIES 1,982.2 1,070.8

Shareholders' deficit (944.7) (68.4)

TOTAL LIABILITIES AND SHAREHOLDERS'

DEFICIT $1,037.5 $1,002.4

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

UNAUDITED

Three Months Ended Nine Months Ended

Sept. 29, Sept. 30, Sept. 29, Sept. 30,

2007 2006 2007 2006

Revenues, net $337.5 $284.8 $1,123.1 $947.9

Cost of revenues 149.6 129.0 489.5 419.2

Gross profit 187.9 155.8 633.6 528.7

Marketing expenses 39.2 30.7 163.6 125.5

Selling, general and administrative

expenses 42.2 32.8 124.5 101.4

Operating income 106.5 92.3 345.5 301.8

Interest expense 28.3 13.2 82.6 35.9

Other income, net 2.3 0.1 2.5 0.7

Early extinguishment of debt - - 3.0 1.3

Income before income taxes 80.5 79.2 262.4 265.3

Provision for income taxes 31.0 28.6 101.0 99.8

Net income $49.5 $50.6 $161.4 $165.5

Earnings Per Share:

Basic $0.63 $0.52 $1.99 $1.67

Diluted $0.62 $0.52 $1.98 $1.66

Weighted average common shares

outstanding:

Basic 79.2 97.4 81.0 99.2

Diluted 79.6 98.0 81.6 99.9

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

OPERATIONAL STATISTICS

UNAUDITED

Three Months Ended Nine Months Ended

Sept. 29, Sept. 30, Sept. 29, Sept. 30,

2007 2006 2007 2006

Total Revenues (in $ millions)

Meeting Fees 204.5 166.8 672.1 552.7

Product Sales 72.2 64.4 266.9 231.9

Internet Revenues 38.6 33.1 112.6 98.0

Franchise Commissions 3.8 4.2 13.5 15.9

All Other 18.4 16.2 58.0 49.5

Total Revenues 337.5 284.8 1,123.1 947.9

North America (in $ millions)

Meeting Fees 145.3 109.7 461.2 358.5

Product Sales 38.7 34.3 145.1 128.3

Total 184.0 144.1 606.3 486.8

International Revenues (in $ millions)

Meeting Fees 59.2 57.1 210.9 194.2

Product Sales 33.5 30.1 121.8 103.6

Total 92.7 87.2 332.7 297.7

Paid Weeks (in millions) (1)

North America Meeting Paid Weeks 14.2 9.4 44.6 32.0

UK Meeting Paid Weeks 2.8 2.7 9.8 9.2

CE Meeting Paid Weeks 2.1 2.4 8.3 8.9

Other Meeting Paid Weeks 0.6 0.8 2.1 2.3

Sub-total Meeting Paid Weeks 19.7 15.3 64.8 52.4

Online Paid Weeks 7.8 6.4 23.1 19.0

Total Paid Weeks 27.4 21.7 87.9 71.4

WeightWatchers.com (in thousands)

End of Period Active Online

Subscribers (2) 609.0 489.0 609.0 489.0

Attendance (in millions)

North America 8.7 8.1 30.1 27.5

UK 2.6 2.7 9.5 9.2

CE 2.1 2.3 8.1 8.8

Other 0.6 0.7 2.0 2.3

Total Attendance 13.9 13.9 49.7 47.7

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.

(2) As of the third fiscal quarter of 2006, we began reporting only our

end-of-period active subscribers for Weight Watchers Online, our

product for non-meeting members. Previously, we had also included

subscribers for Weight Watchers eTools, our internet companion for

meeting members. A corresponding adjustment to remove eTools

subscribers was made to the first and second fiscal quarters of

2006 for comparability purposes.


'/>"/>
SOURCE Weight Watchers International, Inc.
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. Early Weight Loss in Women Linked to Dementia
2. New research explores newborn in-hospital weight loss
3. Weight-Loss Surgeries Extend Lives
4. School-based overweight prevention program may cut risk of eating disorders among girls
5. Overweight toddlers and those not in day care at risk for iron deficiency
6. Weight Watchers Declares Quarterly Dividend
7. Eat Seafood, See Weight Loss: Recent Study Finds Another Reason to Eat Seafood for a Fit Lifestyle
8. Weight Gain May Spell Trouble for Heart Failure Patients
9. New Research From America On the Move Foundation Indicates American Weight Loss Efforts Stalling
10. Weight loss game looking for NEAT-o results
11. Aerobic, Weight Training Combo Best Against Diabetes
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... ... health policy issues and applications at AcademyHealth’s Annual Research Meeting June 26-28, 2016, ... work on several important health care topics including advance care planning, healthcare costs ...
(Date:6/25/2016)... ... 2016 , ... As a lifelong Southern Californian, Dr. Omkar Marathe earned his ... David Geffen School of Medicine at UCLA. He trained in Internal Medicine at Scripps ... in hematology/oncology at the UCLA-Olive View-Cedars Sinai program where he had the opportunity to ...
(Date:6/24/2016)... ... 2016 , ... Those who have experienced traumatic events may suffer from a ... such as drug or alcohol abuse, as a coping mechanism. To avoid this pain ... following a traumatic event. , Trauma sufferers tend to feel a range of emotions, ...
(Date:6/24/2016)... San Francisco, CA (PRWEB) , ... June 24, ... ... at CitiDent, is now offering micro-osteoperforation for accelerated orthodontic treatment. Dr. Cheng has ... , self-ligating Damon brackets , AcceleDent, and accelerated osteogenic orthodontics. , ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... ... Living, is proud to recognize Dr. Barry M. Weintraub as a prominent plastic ... most beautiful women in the world, and the most handsome men, look naturally ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... Tenn. , June 24, 2016  Arkis ... providing less invasive and more durable cerebrospinal fluid ... in funding.  The Series-A funding is led by ... Lighthouse Fund, and other private investors.  Arkis, new ... neurosurgical instrumentation and the market release of its ...
(Date:6/23/2016)... , June 23, 2016 Any dentist who has ... of the current process. Many of them do not even ... technical difficulties and high laboratory costs involved. And those who ... it at such a high cost that the majority of ... Dr. Parsa Zadeh , founder of Dental Evolutions ...
(Date:6/23/2016)... Roche (SIX: RO, ROG; OTCQX: RHHBY) announced ... BRAHMS PCT (procalcitonin) assay as a dedicated testing solution ... this clearance, Roche is the first IVD company in ... sepsis risk assessment and management. PCT is ... levels in blood can aid clinicians in assessing the ...
Breaking Medicine Technology: