WeightWatchers 2002 Annual Report Download - page 20

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Item 6. Selected Financial Data
The following schedule sets forth our selected financial data for the fiscal years ended
December 28, 2002 and December 29, 2001, the eight months ended December 30, 2000, and the fiscal
years ended April 29, 2000, April 24, 1999, April 25, 1998 and April 26, 1997.
SELECTED FINANCIAL DATA
(In millions, except per share amounts)
Eight
Months
Ended
Fiscal Years Ended Fiscal Years Ended
December 30,
December 28, December 29, 2000 April 29, April 24, April 25, April 26,
2002 2001 (35 Weeks) 2000 1999 1998 1997
Revenues, net .................. $809.6 $623.9 $273.2 $399.5 $364.6 $297.2 $292.8
Net income (loss) ................ $143.7 $147.3 $ 15.0 $ 37.8 $ 47.9 $ 23.8 $(24.0)
Working capital (deficit) ............ $22.1 $(24.1) $ 10.2 $ (0.9) $ 91.2 $ 65.8 $ 64.9
Total assets .................... $609.9 $482.9 $346.2 $334.2 $371.4 $370.8 $373.0
Long-term obligations ............. $454.7 $500.0 $496.7 $500.5 $ 16.7 $ 17.7 $ 71.6
Basic Net income (loss) Per Share:
Income (loss) before extraordinary item $ 1.35 $ 1.37 $ 0.13 $ 0.20 $ 0.17 $ 0.09 $(0.09)
Extraordinary item, net of taxes ..... —(0.03) — ————
Net income (loss) ............. $1.35 $ 1.34 $ 0.13 $ 0.20 $ 0.17 0.09 $(0.09)
Diluted Net Income (Loss) per Share:
Income (loss) before extraordinary item $ 1.31 $ 1.34 $ 0.13 $ 0.20 $ 0.17 $ 0.09 $(0.09)
Extraordinary item, net of taxes ..... —(0.03) — ————
Net income (loss) ............. $1.31 $ 1.31 $ 0.13 $ 0.20 $ 0.17 $ 0.09 (0.09)
Items Affecting Comparability
Several events occurred during the fiscal years ended December 28, 2002 and December 29, 2001,
the eight months ended December 30, 2000, and the fiscal years ended April 29, 2000 and April 24,
1999 that affect the comparability of our financial statements. The nature of these events and their
impact on underlying business trends are as follows:
Acquisitions of North Jersey, San Diego and Eastern North Carolina. On January 18, 2002, we
acquired the franchise territory and certain business assets of our franchise in North Jersey for an
aggregate purchase price of $46.5 million. The acquisition was financed through additional borrowings
which were subsequently repaid by the end of the second quarter of 2002. On July 2, 2002 and
September 1, 2002, we acquired the assets of our franchises in San Diego and eastern North Carolina
for a total purchase price of $11.0 and $10.6 million, respectively. These acquisitions were financed
through cash from operations. All acquisitions were accounted for as purchases and accordingly, their
earnings have been included in our consolidated operating results since the dates of their acquisitions.
Reversal of Tax Valuation Allowance. During the fourth quarter of fiscal 2001, we reversed the
remaining tax valuation allowance set up in conjunction with the acquisition by Artal Luxembourg in
1999. At the time of the acquisition, we determined that it was more likely than not that a portion of
the deferred tax asset would not be utilized. Therefore, a valuation allowance of approximately
$72.1 million was established against the corresponding deferred tax asset. Based on our performance
since the acquisition, we have determined that the valuation allowance is no longer required.
Accordingly, the provision for taxes for the fiscal year ended December 29, 2001 included a one-time
reversal (credit) of the remaining balance of the valuation allowance of $71.9 million.
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