WEIGHT WATCHERS INTERNATIONAL, INC. NEW YORK, Aug. 4, 2016 /PRNewswire/ --
-- Revenues of $310 million and EPS of $0.46
-- North America business continues positive growth trend, with:
-- End of Period Subscribers up 9% year-over-year
-- Paid Weeks up 8% year-over-year
-- Revenues up 5% year-over-year
-- Global End of Period Subscribers up 5% year-over-year to 2.9 million
-- Global Operating Income up 5% year-over-year to $74 million
-- Full year 2016 EPS guidance range of $0.90 to $1.05
-- Reflecting expected revenue and profit growth for the second half
and the full year
-- Incorporating an estimated benefit from an R&D tax credit of
approximately $0.10 per share in Q3 2016
Weight Watchers International, Inc. (NYSE: WTW) today announced its results for the second quarter of fiscal 2016 and updated its full year fiscal 2016 earnings guidance.
"Our second quarter represents our third successive quarter of year-over-year member recruitment growth, keeping us on-track to deliver revenue and profit growth for the full year 2016. We are encouraged by our transformation momentum and the solid foundation we are building for 2017 and beyond," said Jim Chambers, the Company's President and Chief Executive Officer.
Q2 2016 Consolidated Global Results
Three Months Ended
(in millions except % Change
percentages, per share Adjusted
amounts, and as noted) for
Constant
% Change Currency
-------- ---------
July 2, July 4,
2016 2015
---- ----
Service Revenues, net $251.6 $250.4 0.5% 1.2%
Product Sales and Other,
net 58.2 59.4 (2.0)% (1.1)%
---- ----
Revenues, net $309.8 $309.8 0.0% 0.7%
Operating Income
$73.7 $70.6 4.5%
Adjustments
-----------
4.9%
Restructuring Charges - 0.2
--- ---
Adjusted Operating Income $73.7 $70.8 4.1% 4.6%
Net Income* $30.5 $27.9 9.4% 10.2%
EPS $0.46 $0.49 (5.2)% (4.5)%
Total Paid Weeks 41.1 39.5 4.2% N/A
Meeting(1) Paid Weeks 18.5 17.6 5.5% N/A
Online(2) Paid Weeks 22.6 21.9 3.1% N/A
End of Period
Subscribers(3) (in
thousands) 2,937.0 2,797.9 5.0% N/A
Meeting Subscribers (in
thousands) 1,262.8 1,184.9 6.6% N/A
Online Subscribers (in
thousands) 1,674.2 1,613.0 3.8% N/A
Total Attendance (in
millions) 9.0 8.6 4.5% N/A
Note: Totals may not sum due to rounding.
See "Reconciliation of Non-GAAP Financial Measures" attached to this release for further detail on adjustments to GAAP financial measures.
(1) "Meetings" refers to monthly commitment plan subscribers, "pay-as-you-go" members, Total Access subscribers and other meetings members.
(2) "Online" refers to Weight Watchers Online, Weight Watchers OnlinePlus, Personal Coaching and other digital subscription products.
(3) "Subscribers" refers to meetings members and Online subscribers who participate in recurring billing programs, such as the Company's monthly commitment plans for its meetings business.
*Except in the case of the financials attached to this release, "Net Income" refers to Net Income attributable to Weight Watchers International, Inc.
Q2 2016 Business and Financial Highlights
-- End of Period Subscribers were up 5.0% for Q2 2016 versus the prior year
period, driven by continued recruitment growth in North America where
End of Period Subscribers increased 8.6%, partially offset by declines
in the United Kingdom and Continental Europe. Globally in Q2 2016, End
of Period Meetings Subscribers were up 6.6% and End of Period Online
Subscribers were up 3.8%, both driven by solid gains in North America.
-- Total Paid Weeks in Q2 2016 were up 4.2% as compared to the prior year
period, with a Meeting Paid Weeks increase of 5.5% and an Online Paid
Weeks increase of 3.1%. These gains were driven by strength in North
America where Total Paid Weeks grew 8.1% year-over-year, partially
offset by declines in international segments.
-- Total Revenues in Q2 2016 were $309.8 million. On a constant-currency
basis, total revenues increased 0.7% versus the prior year period.
-- Service Revenues in Q2 2016 were $251.6 million. On a
constant-currency basis, these revenues increased 1.2% versus the
prior year period, as growth in North America of 4.8% on a constant
currency basis was partially offset by declines in international
markets.
-- Product Sales and Other in Q2 2016 were $58.2 million. On a
constant-currency basis, these revenues decreased 1.1% versus the
prior year period as growth in North America of 10.9% on a constant
currency basis was offset by declines in international markets.
-- Operating Income in Q2 2016 was $73.7 million. On a constant-currency
basis, operating income increased 4.9% versus the prior year period.
Adjusted Operating Income in Q2 2016 was also $73.7 million, up 4.6% on
a constant-currency basis versus the prior year period.
-- Tax Rate in Q2 2016 was 31.5%, as compared to 40.2% in the prior year
period. Q2 2016 results include a $2.5 million reversal of a valuation
allowance related to tax benefits for foreign losses that are now
expected to be realized.
-- GAAP Net Income was $30.5 million in Q2 2016, compared to $27.9 million
in the prior year period.
-- GAAP Earnings per fully diluted share (EPS) was $0.46 in Q2 2016,
compared to $0.49 per fully diluted share in the prior year period.
Items Affecting Year Over Year EPS Comparability
Q2 2016 had a higher share count as compared to Q2 2015 which negatively impacted Q2 2016 EPS by $0.07.
Q2 2016 results benefited from a $2.5 million (or $0.04 per fully diluted share) reversal of a valuation allowance related to tax benefits for foreign losses that are now expected to be realized.
Q2 2015 results benefited from a gain on early extinguishment of debt of $6.7 million ($4.1 million after tax or $0.07 per fully diluted share) for its previously disclosed debt prepayment in the quarter.
Other Items
-- Cash balance was $114.5 million as of July 2, 2016, which included $48.0
million outstanding under the Company's revolving credit facility.
-- Revolving Credit Facility: Subsequent to the end of Q2 2016, the Company
paid down $25.0 million of the $48.0 million outstanding on its
revolving credit facility. The Company anticipates paying down the
remaining balance during Q3 2016.
-- R&D Tax Credit: Prompted by Congress' decision to make the Federal R&D
tax credit permanent in December 2015, the Company has undertaken a
comprehensive assessment of its U.S. taxes and its technology
investments. While the analysis is not yet complete, it is currently
estimated that the Company may be eligible for tax credits relating to
its previously incurred technology investments. Subject to completion of
its more comprehensive assessment, in Q3 2016, the Company expects to
record a tax benefit which will positively impact Q3 EPS by
approximately $0.10 per share.
Full Year Fiscal 2016 Earnings Guidance
The Company is providing 2016 earnings guidance of between $0.90 and $1.05 per fully diluted share. This GAAP earnings guidance incorporates an estimated $0.10 per fully diluted share benefit from an R&D tax credit in Q3 2016 as described above.
Second Quarter 2016 Conference Call and Webcast
The Company has scheduled a conference call today at 5:00 p.m. ET. During the conference call, Jim Chambers, President and Chief Executive Officer, and Nick Hotchkin, Chief Financial Officer, will discuss the second quarter 2016 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 results 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. Operating income and operating income margin, gross profit and gross profit margin, and selling, general and administrative expenses are discussed in this release both as reported (on a GAAP basis) and, with respect to the second quarter of fiscal 2015, as adjusted (on a non-GAAP basis), as applicable, to exclude the impact of charges associated with the Company's previously disclosed 2015 plan to restructure its organization. Earnings before interest, taxes, depreciation, amortization and stock-based compensation (EBITDAS) is presented in the attachments to this release. 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 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 management believes that these financial measures are useful in evaluating the Company's business, this information should be considered as supplemental in nature and should not 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, if any, 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 commercial provider of weight management services, operating globally through a network of Company-owned and franchise operations. Weight Watchers holds more than 32,000 meetings each week where members receive group support and learn about healthy eating patterns, behavior modification and physical activity. Weight Watchers provides innovative, digital weight management products through its websites, mobile sites and apps. Weight Watchers is the leading provider of paid digital subscription weight management products 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, 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 new, innovative 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, or the Company's ability to successfully expand into new channels of distribution or respond to consumer trends; the ability to successfully implement new strategic initiatives; the effectiveness of the Company's advertising and marketing programs, including the strength of its social media presence; the impact on the Weight Watchers brand of actions taken by the Company's franchisees, licensees, suppliers and other partners; the impact of the Company's debt service obligations and restrictive debt covenants; the inability to refinance the Company's debt obligations on favorable terms or at all; uncertainties regarding the satisfactory operation of the Company's information technology or systems; the impact of security breaches or privacy concerns; the recognition of asset impairment charges; the loss of key personnel, strategic partners, or consultants or failure to effectively manage and motivate the Company's workforce; the inability to renew certain of the Company's licenses, or the inability to do so on terms that are favorable to the Company; the expiration or early termination by the Company of leases; risks and uncertainties associated with the Company's international operations, including regulatory, economic, political and social risks and foreign currency risks; uncertainties related to a downturn in general economic conditions or consumer confidence; the Company's ability to successfully make acquisitions or enter into joint ventures, including its ability to successfully integrate, operate or realize the anticipated benefits of such businesses; the seasonal nature of the Company's business; the impact of events that discourage or impede people from gathering with others or accessing resources; 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; the outcomes of litigation or regulatory actions; the impact of existing and future laws and regulations; the Company's failure to maintain effective internal control over financial reporting; the possibility that the interests of Artal Group S.A., who effectively controls the Company, will conflict with 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).
Investors: Media:
Brainerd Communicators, Inc. Stacie Sherer
Corey Kinger (212) 589-2737
(212) 986-6667 stacie.sherer@weightwatchers.com
kinger@braincomm.com
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
UNAUDITED
July 2, January 2,
2016 2016
---- ----
ASSETS
Current assets $216.2 $351.5
Property and equipment, net 51.9 58.2
Goodwill, franchise rights and other intangible assets, net 984.4 973.0
Other assets 13.3 11.5
TOTAL ASSETS $1,265.8 $1,394.2
======== ========
LIABILITIES AND TOTAL DEFICIT
Current liabilities $362.3 $503.1
Long-term debt 1,988.9 1,996.3
Deferred income taxes, other 181.0 180.5
-----
TOTAL LIABILITIES $2,532.2 $2,679.9
-------- --------
Redeemable noncontrolling interests 4.8 4.5
Shareholders' deficit (1,271.2) (1,290.2)
-------- --------
TOTAL LIABILITIES AND TOTAL DEFICIT $1,265.8 $1,394.2
======== ========
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
Three Months Ended
------------------
July 2, July 4,
2016 2015
---- ----
Services revenues, net (1) $251.6 $250.4
Product sales and other, net (2) 58.2 59.4
---- ----
Revenues, net 309.8 309.8
Cost of services (3) 119.8 120.0
Cost of product sales and other (4) 29.0 30.4
---- ----
Cost of revenues 148.7 150.4
Gross profit 161.0 159.4
Marketing expenses 41.2 40.3
Selling, general and administrative expenses 46.1 48.5
---- ----
Operating income 73.7 70.6
Interest expense 28.6 30.5
Other expense, net 0.6 0.3
Extinguishment of debt - (6.7)
--- ----
Income before income taxes 44.5 46.5
Provision for income taxes 14.0 18.7
---- ----
Net income 30.5 27.8
Net loss attributable to the noncontrolling interest 0.0 0.1
--- ---
Net income attributable to Weight Watchers
International, Inc. $30.5 $27.9
Earnings Per Share
Basic $0.48 $0.49
Diluted $0.46 $0.49
Weighted average common shares outstanding:
Basic 63.7 57.1
Diluted 65.9 57.2
Note: Totals may not sum due to rounding.
(1) Consists of net "Meeting Fees" and "Online Subscription Revenues". "Meeting Fees" consist of the fees associated with the Company's monthly commitment plans for unlimited access to meetings and other
payment arrangements for access to meetings, including the Company's "pay-as-you-go" payment arrangement and fees associated with the Company's Total Access product. "Online Subscription Revenues" consist
of the fees associated with subscriptions for the Company's Online subscription products, including the Company's Personal Coaching product.
(2) Consists of sales of products to members in meetings and Online, revenues from licensing, magazine subscriptions, third-party advertising in publications, payments from the sale of third-party Internet
advertising and By Mail, and franchise fees with respect to commitment plans and commissions.
(3) Consists of meeting operating expense and Internet cost of revenues excluding Internet advertising costs.
(4) Consists of meetings cost of product, Internet advertising costs, non-meeting cost of products and other.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
Six Months Ended
----------------
July 2, July 4,
2016 2015
---- ----
Services revenues, net (1) $495.3 $500.3
Product sales and other, net (2) 121.4 131.5
----- -----
Revenues, net 616.7 631.9
Cost of services (3) 244.4 250.3
Cost of product sales and other (4) 61.5 64.9
---- ----
Cost of revenues 306.0 315.2
Gross profit 310.7 316.7
Marketing expenses 127.7 127.6
Selling, general and administrative expenses 95.7 100.4
---- -----
Operating income 87.3 88.6
Interest expense 58.6 61.6
Other expense, net 0.5 0.9
Extinguishment of debt - (11.5)
--- -----
Income before income taxes 28.1 37.6
Provision for income taxes 8.4 15.3
--- ----
Net income 19.7 22.3
Net loss attributable to the noncontrolling interest 0.1 0.1
--- ---
Net income attributable to Weight Watchers
International, Inc. $19.7 $22.4
Earnings Per Share
Basic $0.31 $0.39
Diluted $0.30 $0.39
Weighted average common shares outstanding:
Basic 63.6 56.9
Diluted 65.9 57.0
Note: Totals may not sum due to rounding.
(1) Consists of net "Meeting Fees" and "Online Subscription Revenues". "Meeting Fees" consist of the fees associated with the Company's monthly commitment plans for unlimited access to meetings and other
payment arrangements for access to meetings, including the Company's "pay-as-you-go" payment arrangement and fees associated with the Company's Total Access product. "Online Subscription Revenues" consist
of the fees associated with subscriptions for the Company's Online subscription products, including the Company's Personal Coaching product.
(2) Consists of sales of products to members in meetings and Online, revenues from licensing, magazine subscriptions, third-party advertising in publications, payments from the sale of third-party Internet
advertising and By Mail, and franchise fees with respect to commitment plans and commissions.
(3) Consists of meeting operating expense and Internet cost of revenues excluding Internet advertising costs.
(4) Consists of meetings cost of product, Internet advertising costs, non-meeting cost of products and other.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
UNAUDITED
Three Months Ended
------------------
July 2, July 4,
2016 2015
---- ----
Meeting Paid Weeks (in millions) (1)
------------------------------------
North America 12.2 10.9
UK 2.7 2.8
CE 3.0 3.2
Other (2) 0.6 0.6
--- ---
Total Meeting Paid Weeks 18.5 17.6
Online Paid Weeks (in millions) (1)
-----------------------------------
North America 14.7 14.0
UK 1.6 1.7
CE 5.7 5.7
Other (2) 0.6 0.5
--- ---
Total Online Paid Weeks 22.6 21.9
Total Paid Weeks (in millions) (1)
----------------------------------
North America 27.0 24.9
UK 4.3 4.6
CE 8.7 8.9
Other (2) 1.2 1.1
Total Paid Weeks 41.1 39.5
End of Period Meeting Subscribers (in thousands) (3)
---------------------------------------------------
North America 843.3 740.6
UK 178.0 187.9
CE 208.4 228.0
Other (2) 33.0 28.5
---- ----
Total End of Period Meeting Subscribers 1,262.8 1,184.9
End of Period Online Subscribers (in thousands) (3)
--------------------------------------------------
North America 1,076.3 1,026.5
UK 122.1 129.0
CE 433.7 421.6
Other (2) 42.1 35.9
---- ----
Total End of Period Online Subscribers 1,674.2 1,613.0
Total End of Period Subscribers (in thousands) (3)
-------------------------------------------------
North America 1,919.6 1,767.1
UK 300.1 316.8
CE 642.1 649.6
Other (2) 75.1 64.4
---- ----
Total End of Period Subscribers 2,937.0 2,797.9
Attendance (in millions)
-----------------------
North America 5.9 5.1
UK 1.4 1.5
CE 1.4 1.5
Other (2) 0.3 0.4
--- ---
Total Attendance 9.0 8.6
____
Note: Totals may not sum due to rounding.
(1) The "Paid Weeks" metric reports paid
weeks by Weight Watchers customers in
Company-owned operations for a given
period as follows: (i) "Meeting Paid
Weeks" is the sum of total paid
commitment plan weeks (including Total
Access) and total "pay-as-you-go"
weeks; (ii) "Online Paid Weeks" is the
total paid subscription weeks for the
Company's digital subscription
products (including Personal
Coaching); and (iii) "Total Paid
Weeks" is the sum of Meeting Paid
Weeks and Online Paid Weeks, in each
case for a given period.
(2) Represents Asia Pacific and emerging
markets.
(3) The "End of Period Subscribers" metric
reports Weight Watchers subscribers in
Company-owned operations at a given
period end as follows: (i) "End of
Period Meeting Subscribers" is the
total Weight Watchers monthly
commitment plan subscribers (including
Total Access); (ii) "End of Period
Online Subscribers" is the total
number of Weight Watchers Online,
Weight Watchers OnlinePlus and
Personal Coaching subscribers; and
(iii) "End of Period Subscribers" is
the sum of End of Period Meeting
Subscribers and End of Period Online
Subscribers, in each case at a given
period end.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
UNAUDITED
Six Months Ended
----------------
July 2, July 4,
2016 2015
---- ----
Meeting Paid Weeks (in millions) (1)
------------------------------------
North America 23.7 21.5
UK 5.4 5.7
CE 5.9 6.4
Other (2) 1.3 1.2
--- ---
Total Meeting Paid Weeks 36.2 34.8
Online Paid Weeks (in millions) (1)
-----------------------------------
North America 28.8 27.5
UK 3.1 3.5
CE 11.1 11.3
Other (2) 1.1 1.0
--- ---
Total Online Paid Weeks 44.1 43.3
Total Paid Weeks (in millions) (1)
----------------------------------
North America 52.5 49.0
UK 8.5 9.1
CE 17.0 17.6
Other (2) 2.4 2.2
Total Paid Weeks 80.3 78.0
End of Period Meeting Subscribers (in thousands) (3)
---------------------------------------------------
North America 843.3 740.6
UK 178.0 187.9
CE 208.4 228.0
Other (2) 33.0 28.5
---- ----
Total End of Period Meeting Subscribers 1,262.8 1,184.9
End of Period Online Subscribers (in thousands) (3)
--------------------------------------------------
North America 1,076.3 1,026.5
UK 122.1 129.0
CE 433.7 421.6
Other (2) 42.1 35.9
---- ----
Total End of Period Online Subscribers 1,674.2 1,613.0
Total End of Period Subscribers (in thousands) (3)
-------------------------------------------------
North America 1,919.6 1,767.1
UK 300.1 316.8
CE 642.1 649.6
Other (2) 75.1 64.4
---- ----
Total End of Period Subscribers 2,937.0 2,797.9
Attendance (in millions)
-----------------------
North America 12.0 10.3
UK 3.0 3.2
CE 2.9 3.3
Other (2) 0.7 0.8
--- ---
Total Attendance 18.6 17.7
____
Note: Totals may not sum due to rounding.
(1) The "Paid Weeks" metric reports paid
weeks by Weight Watchers customers in
Company-owned operations for a given
period as follows: (i) "Meeting Paid
Weeks" is the sum of total paid
commitment plan weeks (including Total
Access) and total "pay-as-you-go"
weeks; (ii) "Online Paid Weeks" is the
total paid subscription weeks for the
Company's digital subscription
products (including Personal
Coaching); and (iii) "Total Paid
Weeks" is the sum of Meeting Paid
Weeks and Online Paid Weeks, in each
case for a given period.
(2) Represents Asia Pacific and emerging
markets.
(3) The "End of Period Subscribers" metric
reports Weight Watchers subscribers in
Company-owned operations at a given
period end as follows: (i) "End of
Period Meeting Subscribers" is the
total Weight Watchers monthly
commitment plan subscribers (including
Total Access); (ii) "End of Period
Online Subscribers" is the total
number of Weight Watchers Online,
Weight Watchers OnlinePlus and
Personal Coaching subscribers; and
(iii) "End of Period Subscribers" is
the sum of End of Period Meeting
Subscribers and End of Period Online
Subscribers, in each case at a given
period end.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PERCENTAGES)
UNAUDITED
Q2 2016 Variance
----------------
2016
Constant
Q2 2016 Q2 2015 2016 Currency
------- -------
Currency Constant vs vs
GAAP Adjustment Currency GAAP 2015 2015
---- ---------- -------- ---- ---- ----
Selected Financial Data
Consolidated Company Revenues $309.8 $2.3 $312.0 $309.8 0.0% 0.7%
Consolidated Meeting Fees (1) $160.6 $1.5 $162.1 $155.9 3.0% 4.0%
Consolidated Online Subscription Revenues (2) $90.9 $0.3 $91.2 $94.5 -3.7% -3.4%
Consolidated Service Revenues (3) $251.6 $1.7 $253.3 $250.4 0.5% 1.2%
Consolidated Product Sales (4) and All Other (5) $58.2 $0.5 $58.7 $59.4 -2.0% -1.1%
North America
Meeting Fees (1) $114.9 $0.4 $115.3 $105.2 9.2% 9.6%
Online Subscription Revenues (2) $63.0 $0.2 $63.2 $65.2 -3.3% -3.0%
Service Revenues (3) $177.9 $0.6 $178.6 $170.4 4.4% 4.8%
Product Sales and Other (4) $33.6 $0.1 $33.7 $30.4 10.6% 10.9%
Total Revenues $211.5 $0.7 $212.3 $200.8 5.4% 5.7%
UK
Meeting Fees (1) $15.1 $1.1 $16.1 $17.1 -11.7% -5.4%
Online Subscription Revenues (2) $5.1 $0.4 $5.4 $6.0 -15.6% -9.5%
Service Revenues (3) $20.1 $1.4 $21.6 $23.0 -12.7% -6.5%
Product Sales and Other (4) $7.6 $0.5 $8.1 $9.7 -22.0% -16.5%
Total Revenues $27.7 $2.0 $29.7 $32.8 -15.5% -9.4%
CE
Meeting Fees (1) $24.7 $(0.4) $24.3 $27.3 -9.7% -11.1%
Online Subscription Revenues (2) $20.1 $(0.4) $19.7 $20.5 -2.2% -4.1%
Service Revenues (3) $44.8 $(0.7) $44.0 $47.9 -6.5% -8.1%
Product Sales and Other (4) $12.3 $(0.2) $12.1 $14.3 -14.2% -15.6%
Total Revenues $57.0 $(0.9) $56.1 $62.2 -8.3% -9.8%
Other (6)
Meeting Fees (1) $6.0 $0.3 $6.3 $6.3 -5.2% 0.0%
Online Subscription Revenues (2) $2.8 $0.1 $2.9 $2.8 0.5% 3.2%
Service Revenues (3) $8.8 $0.4 $9.2 $9.1 -3.5% 1.0%
Product Sales (4) and All Other (5) $4.7 $0.1 $4.8 $4.9 -4.4% -2.5%
Total Revenues $13.5 $0.5 $14.0 $14.0 -3.8% -0.2%
____
Note: Totals may not sum due to rounding.
(1) "Meeting Fees" consist of the fees associated with the
Company's monthly commitment plans for unlimited access to
meetings and other payment arrangements for access to
meetings, including the Company's "pay-as-you-go" payment
arrangement and fees associated with the Company's Total
Access product.
(2) "Online Subscription Revenues" consist of the fees associated
with subscriptions for the Company's Online subscription
products, including the Company's Personal Coaching product.
(3) "Service Revenues" equal "Meeting Fees" plus "Online
Subscription Revenues".
(4) "Product Sales" are sales of products to members in meetings
and Online, and "Other" are revenues from licensing, magazine
subscriptions, third-party advertising in publications,
payments from the sale of third-party Internet advertising
and By Mail.
(5) "All Other" are revenues from licensing, magazine
subscriptions, third-party advertising in publications,
payments from the sale of third-party Internet advertising
and By Mail, and franchise fees with respect to commitment
plans and commissions.
(6) Represents Asia Pacific, emerging markets and franchise
revenues.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PERCENTAGES)
UNAUDITED
First Half 2016
Variance
---------------
2016
Constant
First Half 2016 First Half 2015 2016 Currency
--------------- ---------------
Currency Constant vs vs
GAAP Adjustment Currency GAAP 2015 2015
---- ---------- -------- ---- ---- ----
Selected Financial Data
Consolidated Company Revenues $616.7 $7.7 $624.3 $631.9 -2.4% -1.2%
Consolidated Meeting Fees (1) $316.4 $4.4 $320.7 $313.8 0.8% 2.2%
Consolidated Online Subscription Revenues (2) $178.9 $1.5 $180.5 $186.5 -4.1% -3.3%
Consolidated Service Revenues (3) $495.3 $5.9 $501.2 $500.3 -1.0% 0.2%
Consolidated Product Sales (4) and All Other (5) $121.4 $1.8 $123.2 $131.5 -7.7% -6.4%
North America
Meeting Fees (1) $226.6 $1.2 $227.8 $212.0 6.9% 7.5%
Online Subscription Revenues (2) $125.7 $0.6 $126.4 $128.3 -2.0% -1.5%
Service Revenues (3) $352.3 $1.9 $354.2 $340.3 3.5% 4.1%
Product Sales and Other (4) $68.1 $0.3 $68.3 $66.1 3.1% 3.5%
Total Revenues $420.4 $2.2 $422.5 $406.3 3.5% 4.0%
UK
Meeting Fees (1) $30.4 $2.0 $32.4 $34.0 -10.5% -4.7%
Online Subscription Revenues (2) $10.0 $0.7 $10.6 $11.7 -14.5% -8.9%
Service Revenues (3) $40.4 $2.6 $43.0 $45.6 -11.5% -5.8%
Product Sales and Other (4) $16.2 $1.0 $17.2 $21.5 -24.7% -19.9%
Total Revenues $56.6 $3.6 $60.2 $67.2 -15.7% -10.3%
CE
Meeting Fees (1) $48.1 $0.0 $48.2 $54.9 -12.4% -12.3%
Online Subscription Revenues (2) $37.9 $(0.1) $37.8 $40.9 -7.3% -7.6%
Service Revenues (3) $86.0 $(0.1) $86.0 $95.8 -10.2% -10.3%
Product Sales and Other (4) $26.7 $0.1 $26.9 $33.1 -19.3% -18.9%
Total Revenues $112.8 $0.0 $112.8 $128.9 -12.6% -12.5%
Other (6)
Meeting Fees (1) $11.2 $1.1 $12.4 $12.9 -13.0% -4.2%
Online Subscription Revenues (2) $5.3 $0.3 $5.6 $5.7 -5.9% -0.3%
Service Revenues (3) $16.6 $1.5 $18.0 $18.6 -10.8% -3.0%
Product Sales (4) and All Other (5) $10.3 $0.4 $10.7 $10.8 -4.7% -1.2%
Total Revenues $26.9 $1.8 $28.7 $29.4 -8.6% -2.3%
____
Note: Totals may not sum due to rounding.
(1) "Meeting
Fees"
consist of
the fees
associated
with the
Company's
monthly
commitment
plans for
unlimited
access to
meetings and
other
payment
arrangements
for access
to meetings,
including
the
Company's
"pay-as-
you-go"
payment
arrangement
and fees
associated
with the
Company's
Total Access
product.
(2) "Online
Subscription
Revenues"
consist of
the fees
associated
with
subscriptions
for the
Company's
Online
subscription
products,
including
the
Company's
Personal
Coaching
product.
(3) "Service
Revenues"
equal
"Meeting
Fees" plus
"Online
Subscription
Revenues".
(4) "Product
Sales" are
sales of
products to
members in
meetings and
Online, and
"Other" are
revenues
from
licensing,
magazine
subscriptions,
third-party
advertising
in
publications,
payments
from the
sale of
third-party
Internet
advertising
and By Mail.
(5) "All Other"
are revenues
from
licensing,
magazine
subscriptions,
third-party
advertising
in
publications,
payments
from the
sale of
third-party
Internet
advertising
and By Mail,
and
franchise
fees with
respect to
commitment
plans and
commissions.
(6) Represents
Asia
Pacific,
emerging
markets and
franchise
revenues.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PERCENTAGES)
UNAUDITED
Q2 2016 Variance
----------------
2016 Constant
Currency
--------
Q2 2016 Q2 2015
------- -------
2016 2016
Actual Actual
2016 vs 2016 vs
Currency Constant vs 2015 vs 2015
GAAP Adjustment Currency GAAP Adjustment (1) Adjusted 2015 Adjusted 2015 Adjusted
---- ---------- -------- ---- ------------- -------- ---- -------- ---- --------
Selected Financial Data
Gross Profit $161.0 $0.9 $161.9 $159.4 $(0.3) $159.1 1.1% 1.3% 1.6% 1.8%
Gross Margin 52.0% 51.9% 51.4% 51.3%
Selling, General and Administrative Expenses $46.1 $0.4 $46.5 $48.5 $(0.5) $47.9 -4.8% -3.7% -4.0% -2.9%
Operating Income $73.7 $0.3 $74.0 $70.6 $0.2 $70.8 4.5% 4.1% 4.9% 4.6%
Operating Income Margin 23.8% 23.7% 22.8% 22.9%
____
Note: Totals may not sum due to rounding.
(1) Excludes the impact of the $0.2 million of charges associated with the Company's previously disclosed 2015 plan to restructure its organization.
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PERCENTAGES)
UNAUDITED
First Half 2016 Variance
------------------------
2015 Constant
Currency
--------
First Half 2016 First Half 2015
--------------- ---------------
2016 2016
Actual Actual
2016 vs 2016 vs
Currency Constant vs 2015 vs 2015
GAAP Adjustment Currency GAAP Adjustment (1) Adjusted 2015 Adjusted 2015 Adjusted
---- ---------- -------- ---- ------------- -------- ---- -------- ---- --------
Selected Financial Data
Gross Profit $310.7 $3.4 $314.1 $316.7 $1.7 $318.4 -1.9% -2.4% -0.8% -1.3%
Gross Margin 50.4% 50.3% 50.1% 50.4%
Selling, General and Administrative Expenses $95.7 $1.2 $96.9 $100.4 $(4.3) $96.1 -4.7% -0.4% -3.5% 0.8%
Operating Income $87.3 $(0.1) $87.2 $88.6 $6.0 $94.6 -1.5% -7.8% -1.6% -7.8%
Operating Income Margin 14.2% 14.0% 14.0% 15.0%
____
Note: Totals may not sum due to rounding.
(1) Excludes the impact of the $6.0 million of charges associated with the Company's previously disclosed 2015 plan to restructure its organization
WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN MILLIONS)
UNAUDITED
Three Months Ended Six Months Ended
------------------ ----------------
July 2, July 4, July 2, July 4,
2016 2015 2016 2015
---- ---- ---- ----
Net Income $30.5 $27.9 $19.7 $22.4
Interest 28.6 30.5 58.6 61.6
Taxes 14.0 18.7 8.4 15.3
Depreciation and Amortization 12.9 14.4 25.8 28.3
Stock-based Compensation 1.7 2.3 4.9 4.6
EBITDAS $87.8 $93.7 $117.5 $132.2
----- ----- ------ ------
____
Note: Totals may not sum due to rounding.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weight-watchers-announces-second-quarter-2016-results-300309476.html
SOURCE Weight Watchers International, Inc.
