EX-99.1 2 dex991.htm PRESS RELEASE DATED MAY 5, 2008. Press Release dated May 5, 2008.

Exhibit 99.1

LOGO

Contact Information:

Investors:

Weight Watchers International, Inc.

   Brainerd Communicators, Inc.

Sarika Sahni

   Corey Kinger

Investor Relations

   (212) 986-6667
(212) 589-2751   

FOR IMMEDIATE RELEASE

WEIGHT WATCHERS ANNOUNCES FIRST QUARTER 2008 RESULTS

NEW YORK, N.Y., May 5, 2008 – Weight Watchers International, Inc. (NYSE: WTW) today announced its results for the first quarter ended March 29, 2008.

For the first quarter of 2008, net revenues increased $37.6 million, or 9.4%, to $437.0 million, up from $399.4 million in the first quarter of 2007. Net income for the first quarter of 2008 was $57.4 million versus $53.8 million in the prior year period. Fully diluted earnings per share were $0.72 in the first quarter of 2008, an increase of 14.3% versus $0.63 in the prior year period, which included a $0.02 per share non-recurring expense associated with the early extinguishment of debt.

Commenting on results, David Kirchhoff, President and Chief Executive Officer of the Company, said, “During the first quarter, we continued to deliver solid financial performance despite an uncertain consumer environment. I am particularly pleased with the performance of WeightWatchers.com, which grew its active subscriber base by 30 percent and is on a strong trajectory to deliver 2008 revenue and profitability at or above any of our international meetings businesses.”

The Company raised the bottom end of its full year 2008 earnings guidance range by $0.05, narrowing it to between $2.85 and $3.00 per fully diluted share, excluding expense associated with the startup of its China joint venture.

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 first 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, 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 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 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 the Company’s filings with the United States 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).

# # #


WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN MILLIONS)

UNAUDITED

 

     March 29,
2008
    December 29,
2007
 

ASSETS

    

Current assets

   $ 217.0     $ 186.3  

Property and equipment, net

     39.5       37.6  

Goodwill, franchise rights and other intangible assets, net

     814.1       803.1  

Deferred income taxes

     15.6       9.9  

Other

     8.9       9.3  
                

TOTAL ASSETS

   $ 1,095.1     $ 1,046.2  
                

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current liabilities

   $ 468.7     $ 358.4  

Long-term debt

     1,507.9       1,602.5  

Other

     12.4       11.6  
                

TOTAL LIABILITIES

     1,989.0       1,972.5  
                

Shareholders’ deficit

     (893.9 )     (926.3 )
                

TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT

   $ 1,095.1     $ 1,046.2  
                


WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

UNAUDITED

 

     Three Months Ended
     March 29,
2008
    March 31,
2007

Revenues, net

   $ 437.0     $ 399.4

Cost of revenues

     191.1       173.3
              

Gross profit

     245.9       226.1

Marketing expenses

     87.1       70.8

Selling, general and administrative expenses

     42.8       39.6
              

Operating income

     116.0       115.7

Interest expense

     25.3       25.2

Other income, net

     (2.4 )     —  

Early extinguishment of debt

     —         3.0
              

Income before income taxes and minority interest

     93.1       87.5

Provision for income taxes

     36.1       33.7
              

Income before minority interest

     57.0       53.8

Minority interest

     0.4       —  
              

Net income

   $ 57.4     $ 53.8
              

Earnings Per Share:

    

Basic

   $ 0.72     $ 0.63
              

Diluted

   $ 0.72     $ 0.63
              

Weighted average common shares outstanding:

    

Basic

     79.5       85.1
              

Diluted

     79.8       85.7
              


WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES

OPERATIONAL STATISTICS

UNAUDITED

 

     Three Months Ended
     March 29,
2008
   March 31,
2007

Total Revenues (in $ millions)

     

Meeting Fees

   255.5    234.9

Product Sales

   110.1    105.3

Internet Revenues

   45.5    35.6

Franchise Commissions

   5.2    5.1

All Other

   20.7    18.5
         

Total Revenues

   437.0    399.4

North America (in $ millions)

     

Meeting Fees

   166.3    155.0

Product Sales

   57.7    56.8
         

Total

   224.1    211.7

International (in $ millions)

     

Meeting Fees

   89.2    79.8

Product Sales

   52.4    48.4
         

Total

   141.5    128.2

Paid Weeks (in millions) (1)

     

North America Meeting Paid Weeks

   16.0    14.9

UK Meeting Paid Weeks

   4.0    3.7

CE Meeting Paid Weeks

   3.4    3.2

Other Meeting Paid Weeks

   0.8    0.9
         

Sub-total Meeting Paid Weeks

   24.2    22.7

Online Paid Weeks

   9.5    7.4
         

Total Paid Weeks

   33.6    30.1

Attendance (in millions)

     

North America

   10.5    11.1

UK

   3.4    3.7

CE

   3.0    3.2

Other

   0.6    0.8
         

Total Attendance

   17.5    18.8

WeightWatchers.com (in thousands)

     

End of Period Active Online Subscribers

   784.0    603.0

 

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.