- End of Period Subscribers of 4.0 million, including 91 thousand End of Period Clinical Subscribers
- Revenues of
$206.5 million - Gross margin of 66.7%; excluding the net impact of restructuring charges related to prior year restructuring plans, adjusted gross margin of 67.9%
- Operating Loss of
$269.3 million primarily due to$258.0 million in non-cash intangible impairment charges for franchise rights acquired; excluding such impairment charges and the net impact of restructuring charges related to prior year restructuring plans, adjusted operating loss of$5.6 million - Provides update to full year fiscal 2024 guidance
“We delivered solid performance in the first quarter with end of period subscribers of 4.0 million, improved retention and engagement in our core business, and continued strong growth in our clinical business with 91 thousand end of period clinical subscribers,” said
“We are maintaining our revenue guidance for 2024, including a return to year-over-year growth in subscription revenues,” said
Q1 2024 Consolidated Results
Three Months Ended | % Change Adjusted for | |||||||||||||||
2024 | 2023 | % Change | Constant Currency(1) | |||||||||||||
(in millions except percentages and per share amounts) | ||||||||||||||||
Subscription Revenues, net | (3.3 | %) | (3.7 | %) | ||||||||||||
Other Revenues, net(2) | 2.5 | 30.9 | (91.9 | %) | (92.0 | %) | ||||||||||
Revenues, net | (14.6 | %) | (14.9 | %) | ||||||||||||
Gross Profit | 15.3 | % | 14.8 | % | ||||||||||||
Non-GAAP Adjustments(1) | ||||||||||||||||
Net Restructuring Charges(3) | 2.5 | 18.6 | ||||||||||||||
Adjusted Gross Profit(1) | 1.5 | % | 1.1 | % | ||||||||||||
Operating Loss | ( | ) | ( | ) | 100.0 | %* | 100.0 | %* | ||||||||
Non-GAAP Adjustments(1) | ||||||||||||||||
Franchise Rights Acquired Impairments | 258.0 | - | ||||||||||||||
Net Restructuring Charges(3) | 5.7 | 22.7 | ||||||||||||||
Acquisition Transaction Costs | - | 3.7 | ||||||||||||||
Adjusted Operating Loss(1) | ( | ) | ( | ) | 100.0 | %* | 100.0 | %* | ||||||||
Net Loss | ( | ) | ( | ) | 100.0 | %* | 100.0 | %* | ||||||||
EPS | ( | ) | ( | ) | 100.0 | %* | 100.0 | %* | ||||||||
Total Paid Weeks | 51.8 | 51.0 | 1.7 | % | N/A | |||||||||||
Digital(4) Paid Weeks | 42.3 | 40.8 | 3.7 | % | N/A | |||||||||||
Workshops + Digital(5) Paid Weeks | 8.4 | 10.2 | (17.0 | %) | N/A | |||||||||||
Clinical(6) Paid Weeks | 1.1 | - | N/A | N/A | ||||||||||||
End of Period Subscribers(7) | 4.0 | 4.0 | (0.4 | %) | N/A | |||||||||||
Digital Subscribers | 3.3 | 3.3 | 0.7 | % | N/A | |||||||||||
Workshops + Digital Subscribers | 0.6 | 0.8 | (16.7 | %) | N/A | |||||||||||
Clinical Subscribers | 0.1 | - | N/A | N/A | ||||||||||||
_________________________________ Note: Totals may not sum due to rounding. *Note: Percentage in excess of 100.0% and not meaningful. (1) See “Reconciliation of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures. (2) “Other Revenues, net” (formerly known as “Product Sales and Other, net”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, “Other Revenues, net” included sales of consumer products. (3) See “Reconciliation of Non-GAAP Financial Measures” attached to this release for further detail on the Company’s previously disclosed 2023, 2022, 2021, and 2020 restructuring plans, and the reversal of certain of the charges associated therewith. (4) “Digital” refers to providing subscriptions to the Company’s digital product offerings. (5) “Workshops + Digital” refers to providing subscriptions for unlimited access to the Company’s workshops combined with the Company’s digital subscription product offerings. (6) “Clinical” refers to providing subscriptions to the Company’s clinical product offerings provided by (7) “Subscribers” refers to Digital subscribers, Workshops + Digital subscribers, and Clinical subscribers who participate in recurring bill programs in Company-owned operations. | ||||||||||||||||
Q1 2024 Business and Financial Highlights
- End of Period Subscribers in Q1 2024 were down 0.4% versus the prior year period. Q1 2024 End of Period Workshops + Digital Subscribers decreased 16.7% versus the prior year period. Q1 2024 End of Period Digital Subscribers increased 0.7% versus the prior year period. Q1 2024 End of Period Clinical Subscribers were 91 thousand.
- Total Paid Weeks in Q1 2024 were up 1.7% versus the prior year period, driven by the Digital business and the inclusion of 1.1 million Clinical Paid Weeks. Q1 2024 Digital Paid Weeks increased 3.7% versus the prior year period. Q1 2024 Workshops + Digital Paid Weeks decreased 17.0% versus the prior year period.
- Revenues in Q1 2024 were
$206.5 million . On a constant currency basis, Q1 2024 revenues decreased 14.9% versus the prior year period.- Subscription Revenues in Q1 2024 were
$204.1 million . On a constant currency basis, these revenues decreased 3.7% versus the prior year period. Subscription Revenues included$18.8 million of Clinical Subscription Revenues. - Other Revenues in Q1 2024 were
$2.5 million . On a constant currency basis, these revenues decreased 92.0% versus the prior year period driven by the wind down of the consumer products business.
- Subscription Revenues in Q1 2024 were
- Gross Profit in Q1 2024 was
$137.8 million , compared to$119.5 million in the prior year period. Adjusted gross profit in Q1 2024, which excluded the net impact of$2.5 million of restructuring charges related to prior year restructuring plans, was$140.3 million . Adjusted gross profit in Q1 2023, which excluded the net impact of$18.6 million of restructuring charges, was$138.1 million .- Gross Margin in Q1 2024 was 66.7%, as compared to 49.4% in the prior year period. Adjusted gross margin in Q1 2024 was 67.9%, up from an adjusted gross margin of 57.1% in the prior year period, primarily driven by actions to reduce the fixed cost base and mix shift within the business.
- Gross Margin in Q1 2024 was 66.7%, as compared to 49.4% in the prior year period. Adjusted gross margin in Q1 2024 was 67.9%, up from an adjusted gross margin of 57.1% in the prior year period, primarily driven by actions to reduce the fixed cost base and mix shift within the business.
- Non-Cash Intangible Impairment Charges: During Q1 2024, the Company recorded non-cash impairment charges of franchise rights acquired totaling
$258.0 million . These impairments were primarily driven by an increase in the Company’s weighted average cost of capital reflecting market factors. - Operating Loss in Q1 2024 was
$269.3 million , compared to operating loss of$28.6 million in the prior year period. Adjusted operating loss in Q1 2024, which excluded$258.0 million of non-cash intangible impairment charges and the net impact of$5.7 million of restructuring charges related to prior year restructuring plans, was$5.6 million . Adjusted operating loss in Q1 2023, which excluded the net impact of$22.7 million of restructuring charges and the impact of$3.7 million of acquisition transaction costs, was$2.2 million . - Income Tax Expense in Q1 2024 was
$55.4 million , which reflected the impact of an unusually high negative annual effective tax rate driven by a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2024 guidance. In the prior year period, income tax expense was$67.6 million . - Net Loss in Q1 2024 was
$347.9 million compared to net loss of$118.7 million in the prior year period. - Diluted Net Loss per share in Q1 2024 was
$4.39 compared to diluted net loss per share of$1.68 in the prior year period.- Certain items affect year-over-year comparability.
- Q1 2024 diluted net loss per share incorporated the net negative impact of
$4.33 per diluted share in the aggregate due to the following items:$3.05 per diluted share negative impact of non-cash intangible impairment charges for franchise rights acquired.$1.22 per diluted share negative tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2024 guidance.$0.05 per diluted share net negative impact of restructuring charges related to prior year restructuring plans.
- Q1 2023 diluted net loss per share incorporated the negative impact of
$1.59 per diluted share in the aggregate due to the following items:$0.24 per diluted share net negative impact of restructuring charges.$1.30 per diluted share negative tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2023 guidance.$0.05 per diluted share negative impact from acquisition transaction costs.
- Q1 2024 diluted net loss per share incorporated the net negative impact of
- Certain items affect year-over-year comparability.
Other Items
- Cash balance as of
March 30, 2024 was$66.6 million . On that same date, the Company had no outstanding borrowings under its revolving credit facility. - Interest Rate Hedges: The Company’s interest rate swaps in effect as of the end of the first quarter of fiscal 2024 terminated on
March 31, 2024 . As ofMay 2, 2024 , the Company had no active swaps in place. - 2023 Restructuring Plan: In connection with the previously announced 2023 restructuring plan, the Company recorded aggregate restructuring charges of
$5.5 million in Q1 2024. - Reportable Segment Update: As previously disclosed, as a result of the continued evolution of the Company’s centralized organizational structure in fiscal 2023, and management’s 2024 strategic planning process, the Company’s reportable segments changed commencing with the first day of fiscal 2024 to one segment.
Full Year Fiscal 2024 Guidance
The Company is providing the following update to full year fiscal 2024 guidance:
- Maintaining previously provided revenue guidance range of
$830.0 million to$860.0 million , reflecting a$55 million year-over-year headwind from the strategic decision to wind down the Company’s low-margin consumer products business. - Operating loss is expected to be in the range of
$163.7 million to$153.7 million ; excluding the non-cash intangible impairment charges and net impact of restructuring charges recorded in the first quarter of fiscal 2024, adjusted operating income is expected to be in the range of$100.0 million to$110.0 million , which is consistent with previously provided operating income guidance that did not include the above impairment and restructuring charges.
First Quarter 2024 Conference Call and Webcast
The Company has scheduled a conference call today at
The live webcast of the conference call will be available on the Company’s corporate website, corporate.ww.com, under Events and Presentations. Supplemental investor materials will also be available in the same location prior to the start of the webcast. 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 and today’s scheduled conference call:
To supplement the Company's consolidated results presented in accordance with accounting principles generally accepted in
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 non-GAAP 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 titled 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
WeightWatchers is a human-centric technology company powered by our proven, science-based, clinically effective weight loss and weight management programs. For six decades, we have inspired millions of people to adopt healthy habits for real life. We combine technology and community to help members reach and sustain their goals on our programs. To learn more about the WeightWatchers approach to healthy living, please visit ww.com. For more information about our global business, visit our corporate website at corporate.ww.com.
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, any guidance and any statements about the Company’s plans, strategies, objectives, initiatives, roadmap and prospects. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” 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 and health and wellness industry participants or the development of more effective or more favorably perceived weight management methods; the Company's failure to continue to retain and grow its subscriber base; the Company’s ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; 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, products or brands to continue to appeal to the market, or its ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; the ability to successfully implement strategic initiatives; the Company’s ability to evolve its community offerings to meet the evolving tastes and preferences of its members; the effectiveness and efficiency of the Company's advertising and marketing programs, including the strength of the Company's social media presence; the impact on the Company's reputation of actions taken by its franchisees, licensees, suppliers, affiliated provider entities, PCs’ healthcare professionals, and other partners, including as a result of its acquisition of
For more information, contact:
Investors:
Corey Kinger
corey.kinger@ww.com
Media:
media@ww.com
Exhibit 99.1 | |||||||||
CONSOLIDATED BALANCE SHEETS AT | |||||||||
(IN THOUSANDS) | |||||||||
UNAUDITED | |||||||||
2024 | 2023 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | $ | 66,615 | $ | 109,366 | |||||
Receivables (net of allowances: | 13,173 | 14,938 | |||||||
Prepaid income taxes | 14,316 | 25,370 | |||||||
Prepaid marketing and advertising | 2,982 | 10,149 | |||||||
Prepaid expenses and other current assets | 19,888 | 19,651 | |||||||
TOTAL CURRENT ASSETS | 116,974 | 179,474 | |||||||
Property and equipment, net | 19,068 | 19,741 | |||||||
Operating lease assets | 50,133 | 52,272 | |||||||
Franchise rights acquired | 128,213 | 386,526 | |||||||
242,258 | 243,441 | ||||||||
Other intangible assets, net | 58,031 | 63,208 | |||||||
Deferred income taxes | 20,328 | 19,683 | |||||||
Other noncurrent assets | 19,243 | 17,685 | |||||||
TOTAL ASSETS | $ | 654,248 | $ | 982,030 | |||||
LIABILITIES AND TOTAL DEFICIT | |||||||||
CURRENT LIABILITIES | |||||||||
Portion of operating lease liabilities due within one year | $ | 9,660 | $ | 9,613 | |||||
Accounts payable | 22,514 | 18,507 | |||||||
Salaries and wages payable | 52,769 | 79,096 | |||||||
Accrued marketing and advertising | 15,789 | 18,215 | |||||||
Accrued interest | 11,204 | 5,346 | |||||||
Deferred acquisition payable | 16,000 | 16,500 | |||||||
Other accrued liabilities | 23,019 | 22,610 | |||||||
Income taxes payable | 62,088 | 1,609 | |||||||
Deferred revenue | 36,004 | 33,966 | |||||||
TOTAL CURRENT LIABILITIES | 249,047 | 205,462 | |||||||
Long-term debt, net | 1,427,509 | 1,426,464 | |||||||
Long-term operating lease liabilities | 51,256 | 53,461 | |||||||
Deferred income taxes | 22,544 | 41,994 | |||||||
Other | 16,191 | 15,743 | |||||||
TOTAL LIABILITIES | 1,766,547 | 1,743,124 | |||||||
TOTAL DEFICIT | |||||||||
Common stock, | 0 | 0 | |||||||
(3,062,005 | ) | (3,064,628 | ) | ||||||
Retained earnings | 1,966,625 | 2,314,834 | |||||||
Accumulated other comprehensive loss | (16,919 | ) | (11,300 | ) | |||||
TOTAL DEFICIT | (1,112,299 | ) | (761,094 | ) | |||||
TOTAL LIABILITIES AND TOTAL DEFICIT | $ | 654,248 | $ | 982,030 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||
UNAUDITED | ||||||||||
Three Months Ended | ||||||||||
2024 | 2023 | |||||||||
Subscription revenues, net (1) | $ | 204,056 | $ | 211,032 | ||||||
Other revenues, net (2) | 2,492 | 30,863 | ||||||||
Revenues, net | 206,548 | 241,895 | ||||||||
Cost of subscription revenues (3) | 67,816 | 94,897 | ||||||||
Cost of other revenues | 932 | 27,487 | ||||||||
Cost of revenues | 68,748 | 122,384 | ||||||||
Gross profit | 137,800 | 119,511 | ||||||||
Marketing expenses | 90,162 | 88,234 | ||||||||
Selling, general and administrative expenses | 58,982 | 59,860 | ||||||||
Franchise rights acquired impairments | 257,988 | — | ||||||||
Operating loss | (269,332 | ) | (28,583 | ) | ||||||
Interest expense | 24,727 | 22,846 | ||||||||
Other income, net | (1,605 | ) | (330 | ) | ||||||
Loss before income taxes | (292,454 | ) | (51,099 | ) | ||||||
Provision for income taxes | 55,448 | 67,580 | ||||||||
Net loss | $ | (347,902 | ) | $ | (118,679 | ) | ||||
Net loss per share | ||||||||||
Basic | $ | (4.39 | ) | $ | (1.68 | ) | ||||
Diluted | $ | (4.39 | ) | $ | (1.68 | ) | ||||
Weighted average common shares outstanding | ||||||||||
Basic | 79,208 | 70,596 | ||||||||
Diluted | 79,208 | 70,596 | ||||||||
________________ Note: Totals may not sum due to rounding. | ||||||||||
(1) “Subscription revenues, net” consist of net “Digital Subscription Revenues”, net “Workshops + Digital Subscription Revenues” and net “Clinical Subscription Revenues”. “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings. “Workshops + Digital Subscription Revenues” consist of the fees associated with subscriptions for combined workshops and Digital offerings. “Clinical Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Clinical offerings. | ||||||||||
(2) “Other revenues, net” (formerly known as “product sales and other revenues, net”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties. Prior to fiscal 2024, “Other revenues, net” included sales of consumer products. | ||||||||||
(3) “Cost of subscription revenues” consists of cost of revenues and operating expenses for the Company's Digital, Workshops + Digital and Clinical services. |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(IN THOUSANDS) | |||||||||
UNAUDITED | |||||||||
Three Months Ended | |||||||||
2024 | 2023 | ||||||||
Operating activities: | |||||||||
Net loss | $ | (347,902 | ) | $ | (118,679 | ) | |||
Adjustments to reconcile net loss to cash used for operating activities: | |||||||||
Depreciation and amortization | 10,403 | 11,989 | |||||||
Amortization of deferred financing costs and debt discount | 1,254 | 1,254 | |||||||
Impairment of franchise rights acquired | 257,988 | — | |||||||
Impairment of intangible and long-lived assets | 24 | 171 | |||||||
Share-based compensation expense | 2,402 | 2,669 | |||||||
Deferred tax benefit | (18,244 | ) | (3,110 | ) | |||||
Allowance for doubtful accounts | 2,757 | (74 | ) | ||||||
Reserve for inventory obsolescence | 85 | 2,037 | |||||||
Foreign currency exchange rate gain | (1,304 | ) | (389 | ) | |||||
Changes in cash due to: | |||||||||
Receivables | 3,788 | (5,961 | ) | ||||||
Inventories | 79 | 7,994 | |||||||
Prepaid expenses | 13,882 | 4,937 | |||||||
Accounts payable | 4,130 | 2,728 | |||||||
Accrued liabilities | (26,393 | ) | 3,188 | ||||||
Deferred revenue | 2,321 | 3,405 | |||||||
Other long term assets and liabilities, net | (1,796 | ) | 734 | ||||||
Income taxes | 60,491 | 60,385 | |||||||
Cash used for operating activities | (36,035 | ) | (26,722 | ) | |||||
Investing activities: | |||||||||
Capital expenditures | (476 | ) | (990 | ) | |||||
Capitalized software and website development expenditures | (4,333 | ) | (9,350 | ) | |||||
Other items, net | (1 | ) | (8 | ) | |||||
Cash used for investing activities | (4,810 | ) | (10,348 | ) | |||||
Financing activities: | |||||||||
Taxes paid related to net share settlement of equity awards | (114 | ) | (205 | ) | |||||
Proceeds from stock options exercised | — | 7 | |||||||
Cash paid for acquisitions | (500 | ) | (500 | ) | |||||
Other items, net | (2 | ) | (26 | ) | |||||
Cash used for financing activities | (616 | ) | (724 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,290 | ) | 315 | ||||||
Net decrease in cash and cash equivalents | (42,751 | ) | (37,479 | ) | |||||
Cash and cash equivalents, beginning of period | 109,366 | 178,326 | |||||||
Cash and cash equivalents, end of period | $ | 66,615 | $ | 140,847 |
OPERATIONAL STATISTICS | |||||||
(IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||
UNAUDITED | |||||||
Three Months Ended | |||||||
Variance | |||||||
2024 | 2023 | ||||||
Paid Weeks (1) | |||||||
Digital Paid Weeks | 42,319 | 40,801 | 3.7 | % | |||
Workshops + Digital Paid Weeks | 8,425 | 10,151 | (17.0 | %) | |||
Clinical Paid Weeks | 1,056 | — | N/A | ||||
Total Paid Weeks | 51,799 | 50,952 | 1.7 | % | |||
End of Period Subscribers (2) | |||||||
End of Period Digital Subscribers | 3,277 | 3,254 | 0.7 | % | |||
End of Period Workshops + Digital Subscribers | 640 | 768 | (16.7 | %) | |||
End of Period Clinical Subscribers | 91 | — | N/A | ||||
Total End of Period Subscribers | 4,008 | 4,022 | (0.4 | %) | |||
________________ Note: Totals may not sum due to rounding. | |||||||
(1) The “Paid Weeks” metric reports paid weeks by WW customers in Company-owned operations for a given period as follows: (i) “Digital Paid Weeks” is the total paid subscription weeks for the Company’s Digital offerings; (ii) “Workshops + Digital Paid Weeks” is the total paid subscription weeks for combined workshops and Digital offerings; (iii) “Clinical Paid Weeks” is the total paid subscription weeks for the Company’s Clinical offerings; and (iv) “Total Paid Weeks” is the sum of Digital Paid Weeks, Workshops + Digital Paid Weeks and Clinical Paid Weeks. | |||||||
(2) The “End of Period Subscribers” metric reports WW subscribers in Company-owned operations at a given period end as follows: (i) “End of Period Digital Subscribers” is the total number of Digital subscribers; (ii) “End of Period Workshops + Digital Subscribers” is the total number of subscribers that have access to combined workshops and Digital offerings; (iii) “End of Period Clinical Subscribers” is the total number of Clinical subscribers; and (iv) “End of Period Subscribers” is the sum of End of Period Digital Subscribers, End of Period Workshops + Digital Subscribers and End of Period Clinical Subscribers. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
(IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||
UNAUDITED | |||||||||||||||||||
Q1 2024 Variance | |||||||||||||||||||
2024 | |||||||||||||||||||
Constant | |||||||||||||||||||
Q1 2024 | Q1 2023 | 2024 | Currency | ||||||||||||||||
Currency | Constant | vs | vs | ||||||||||||||||
GAAP | Adjustment | Currency | GAAP | 2023 | 2023 | ||||||||||||||
Selected Financial Data | |||||||||||||||||||
Total Revenues | $ | 206,548 | $ | (783 | ) | $ | 205,765 | $ | 241,895 | (14.6 | %) | (14.9 | %) | ||||||
Digital Subscription Revenues (1) | $ | 137,633 | $ | (602 | ) | $ | 137,031 | $ | 149,344 | (7.8 | %) | (8.2 | %) | ||||||
Workshops + Digital Subscription Revenues (2) | $ | 47,671 | $ | (168 | ) | $ | 47,503 | $ | 61,688 | (22.7 | %) | (23.0 | %) | ||||||
Clinical Subscription Revenues (3) | $ | 18,752 | $ | — | $ | 18,752 | $ | — | N/A | N/A | |||||||||
Subscription Revenues (4) | $ | 204,056 | $ | (770 | ) | $ | 203,286 | $ | 211,032 | (3.3 | %) | (3.7 | %) | ||||||
Other Revenues (5) | $ | 2,492 | $ | (13 | ) | $ | 2,479 | $ | 30,863 | (91.9 | %) | (92.0 | %) | ||||||
Note: Totals may not sum due to rounding. | |||||||||||||||||||
(1) “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings. | |||||||||||||||||||
(2) “Workshops + Digital Subscription Revenues” consist of the fees associated with subscriptions for combined workshops and Digital offerings. | |||||||||||||||||||
(3) “Clinical Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Clinical offerings. | |||||||||||||||||||
(4) “Subscription Revenues” equal “Digital Subscription Revenues” plus “Workshops + Digital Subscription Revenues” plus “Clinical Subscription Revenues”. | |||||||||||||||||||
(5) “Other Revenues” (formerly known as “product sales and other revenues”) consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties. Prior to fiscal 2024, “Other Revenues” included sales of consumer products. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||||||||||||||||||||||||||||||||||
UNAUDITED | |||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 2024 Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||
2024 Constant Currency | |||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 2024 | Q1 2023 | Adjusted | Adjusted | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted | 2024 | vs | 2024 | vs | |||||||||||||||||||||||||||||||||||||||||||||||
Currency | Constant | Constant | vs | 2023 | vs | 2023 | |||||||||||||||||||||||||||||||||||||||||||||
GAAP | Adjustment | Adjusted | Adjustment | Currency | Currency | GAAP | Adjustment | Adjusted | 2023 | Adjusted | 2023 | Adjusted | |||||||||||||||||||||||||||||||||||||||
Selected Financial Data | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Profit | $ | 137,800 | $ | 2,455 | (1) | $ | 140,255 | $ | (575 | ) | $ | 137,225 | $ | 139,680 | $ | 119,511 | $ | 18,618 | (5) | $ | 138,129 | 15.3 | % | 1.5 | % | 14.8 | % | 1.1 | % | ||||||||||||||||||||||
Gross Margin | 66.7% | 67.9% | 66.7% | 67.9% | 49.4% | 57.1% | |||||||||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative Expenses | $ | 58,982 | $ | (3,282 | ) | (2) | $ | 55,700 | $ | (125 | ) | $ | 58,857 | $ | 55,575 | $ | 59,860 | $ | (7,761 | ) | (6) | $ | 52,099 | (1.5 | %) | 6.9 | % | (1.7 | %) | 6.7 | % | ||||||||||||||||||||
Operating Loss | $ | (269,332 | ) | $ | 263,725 | (3) | $ | (5,607 | ) | $ | (263 | ) | $ | (269,595 | ) | $ | (5,766 | ) | (4) | $ | (28,583 | ) | $ | 26,379 | (7) | $ | (2,204 | ) | 842.2 | % | 154.2 | % | 843.2 | % | 161.4 | % | |||||||||||||||
Operating Loss Margin | (130.4% | ) | (2.7% | ) | (131.0% | ) | (2.8% | ) | (11.8% | ) | (0.9% | ) | |||||||||||||||||||||||||||||||||||||||
________________ Note: Totals may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Excludes the net impact of | |||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Excludes the net impact of | |||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of | |||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Includes | |||||||||||||||||||||||||||||||||||||||||||||||||||
(5) Excludes the net impact of | |||||||||||||||||||||||||||||||||||||||||||||||||||
(6) Excludes (i) the impact of | |||||||||||||||||||||||||||||||||||||||||||||||||||
(7) Excludes (i) the net impact of (a) |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||
(IN THOUSANDS) | ||||||||||
UNAUDITED | ||||||||||
Three Months Ended | ||||||||||
2024 | 2023 | |||||||||
Net Loss | $ | (347,902 | ) | $ | (118,679 | ) | ||||
Interest | 24,727 | 22,846 | ||||||||
Taxes | 55,448 | 67,580 | ||||||||
Depreciation and Amortization | 10,403 | 10,273 | ||||||||
Stock-based Compensation | 2,402 | 2,669 | ||||||||
EBITDAS | $ | (254,922 | ) | $ | (15,311 | ) | ||||
Franchise Rights Acquired Impairments (1) | 257,988 | — | ||||||||
2023 Plan Restructuring Charges (2) | 5,493 | 22,632 | ||||||||
2022 Plan Restructuring Charges (3) | 244 | 40 | ||||||||
2021 Plan Restructuring Charges (4) | — | (7 | ) | |||||||
2020 Plan Restructuring Charges (5) | — | (5 | ) | |||||||
Acquisition Transaction Costs (6) | — | 3,719 | ||||||||
Adjusted EBITDAS | $ | 8,803 | $ | 11,068 | ||||||
_________________ Note: Totals may not sum due to rounding. | ||||||||||
(1) Impairment charges of the Company's franchise rights acquired of | ||||||||||
(2) Charges associated with the Company's previously disclosed 2023 restructuring plan. | ||||||||||
(3) Charges associated with the Company's previously disclosed 2022 restructuring plan. | ||||||||||
(4) The reversal of charges associated with the Company's previously disclosed 2021 organizational restructuring plan. | ||||||||||
(5) The reversal of charges associated with the Company's previously disclosed 2020 organizational restructuring plan. | ||||||||||
(6) Certain non-recurring transaction costs in connection with the Company's acquisition of Sequence. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
(IN THOUSANDS, EXCEPT RATIOS) | |||||||||||||||||||||||
UNAUDITED | |||||||||||||||||||||||
Trailing Twelve | |||||||||||||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Months | |||||||||||||||||||
Net Debt to Adjusted EBITDAS | |||||||||||||||||||||||
Net Income (Loss) | $ | 50,828 | $ | 43,731 | $ | (88,135 | ) | $ | (347,902 | ) | $ | (341,478 | ) | ||||||||||
Interest | 24,075 | 24,508 | 24,464 | 24,727 | 97,774 | ||||||||||||||||||
Taxes | (48,066 | ) | (38,447 | ) | 57,556 | 55,448 | 26,491 | ||||||||||||||||
Depreciation and Amortization | 11,932 | 13,428 | 10,007 | 10,403 | 45,770 | ||||||||||||||||||
Stock-based Compensation | 3,063 | 3,225 | 2,346 | 2,402 | 11,036 | ||||||||||||||||||
EBITDAS | $ | 41,832 | $ | 46,445 | $ | 6,238 | $ | (254,922 | ) | $ | (160,407 | ) | |||||||||||
Franchise Rights Acquired and Goodwill Impairments | — | — | 3,633 | (1) | 257,988 | (2) | 261,621 | ||||||||||||||||
2023 Plan Restructuring Charges (3) | 1,784 | 6,187 | 23,140 | 5,493 | 36,604 | ||||||||||||||||||
2022 Plan Restructuring Charges (4) | 818 | (212 | ) | 489 | 244 | 1,339 | |||||||||||||||||
2021 Plan Restructuring Charges (5) | 64 | — | — | — | 64 | ||||||||||||||||||
2020 Plan Restructuring Charges (6) | (16 | ) | — | — | — | (16 | ) | ||||||||||||||||
Acquisition Transaction Costs (7) | 4,886 | — | — | — | 4,886 | ||||||||||||||||||
Adjusted EBITDAS | $ | 49,368 | $ | 52,420 | $ | 33,500 | $ | 8,803 | $ | 144,091 | |||||||||||||
Total Debt | $ | 1,427,509 | |||||||||||||||||||||
Less: Cash | 66,615 | ||||||||||||||||||||||
Net Debt | $ | 1,360,894 | |||||||||||||||||||||
Total Debt to Net Loss | (4.2 | ) | X | ||||||||||||||||||||
Net Debt to Adjusted EBITDAS | 9.4 | X | |||||||||||||||||||||
_________________ Note: Totals may not sum due to rounding. | |||||||||||||||||||||||
(1) Impairment charges of the Company's goodwill of | |||||||||||||||||||||||
(2) Impairment charges of the Company's franchise rights acquired of | |||||||||||||||||||||||
(3) Charges associated with the Company's previously disclosed 2023 restructuring plan. | |||||||||||||||||||||||
(4) Charges or the reversal of charges, as applicable, associated with the Company's previously disclosed 2022 restructuring plan. | |||||||||||||||||||||||
(5) Charges associated with the Company's previously disclosed 2021 organizational restructuring plan. | |||||||||||||||||||||||
(6) The reversal of charges associated with the Company's previously disclosed 2020 organizational restructuring plan. | |||||||||||||||||||||||
(7) Certain non-recurring transaction costs in connection with the Company's acquisition of Sequence. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||
(IN MILLIONS) | ||||
UNAUDITED | ||||
Full Year 2024 | ||||
Operating Income Guidance Reconciliation | ||||
Operating Loss | ||||
Net Restructuring Charges (1) | ||||
Franchise Rights Acquired Impairments (2) | ||||
Adjusted Operating Income | ||||
____________________ (1) Reflects the net restructuring charges incurred in first quarter of fiscal 2024 related to the Company's previously disclosed 2023 restructuring plan and 2022 restructuring plan. | ||||
(2) Reflects the impairment charges of the Company's franchise rights acquired related to its |
Source:
2024 GlobeNewswire, Inc., source