WeightWatchers 2002 Annual Report Download - page 56

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1. Basis of Presentation (Continued)
result, all costs incurred in connection with the Company’s common stock offering have been recorded
in shareholders’ equity (deficit).
Secondary Stock Offering:
On September 23, 2002, the Company completed the secondary offering of 15,000 shares of
common stock at an initial price of $42.00 per share. The Company did not receive any of the proceeds
from the sale of shares of the Company’s common stock pursuant to this secondary offering.
2. Summary of Significant Accounting Policies
Change in Fiscal Year:
The Company changed its fiscal year from the last Saturday of April to the Saturday closest to
December 31st effective with the eight months commencing April 30, 2000.
The following table presents certain financial information for the eight months ended
December 30, 2000 and December 18, 1999.
Eight Months Ended
December 2000 December 1999
(35 Weeks) (34 Weeks)
(Unaudited)
Revenues, net ............................... $273,175 $236,974
Gross profit................................ $133,892 $114,592
Income before income taxes and minority interest . . . . $ 21,023 $ 39,020
Provision for income taxes ..................... $ 5,857 $15,150
Income before minority interest .................. $ 15,166 $ 23,870
Minority interest ............................. $ 147 $ 694
Net Income ................................ $15,019 $23,176
Consolidation:
The consolidated financial statements include the accounts of the Company and its wholly-owned
subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In
order to facilitate timely reporting in prior periods, certain foreign subsidiaries ended their fiscal years
one month prior to the Company’s fiscal year end with no material impact on the consolidated financial
statements. The one-month lag was eliminated effective April 30, 2000. The effect on net income of
these subsidiaries for the period March 31, 2000 through April 29, 2000 was $1,137 and was adjusted to
opening accumulated equity (deficit) at April 30, 2000.
Use of Estimates:
The preparation of financial statements, in conformity with accounting principles generally
accepted in the United States of America, requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenues and expenses
F-7