WeightWatchers 2003 Annual Report Download - page 18

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the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and
assumptions, including, among other things:
• competition, including price competition and competition with self-help, pharmaceutical, surgical,
dietary supplements and meal replacement products, and other weight-loss brands, diets,
programs and products;
• risks associated with the relative success of our marketing and advertising;
• risks associated with the continued attractiveness of our programs;
• risks associated with our ability to meet our obligations related to our outstanding indebtedness;
• risks associated with general economic conditions; and
• legislation or regulations, more aggressive enforcement of existing legislation or regulations or a
change in the interpretation of existing legislation or regulations.
You should not put undue reliance on any forward-looking statements. You should understand that
many important factors, including those discussed under the heading ‘‘Management’s Discussion and
Analysis of Financial Condition and Results of Operations,’’ could cause our results to differ materially
from those expressed or suggested in any forward-looking statements. Except as required by law, we do
not undertake any obligation to publicly release any revisions to these forward-looking statements to
reflect events or circumstances that occur after the date of this Annual Report on Form 10-K or to
reflect the occurrence of unanticipated events.
Item 2. Properties
We are headquartered in Woodbury, New York in a leased office that expires in 2005. Weight
Watchers Magazine is headquartered in New York, New York in a leased office that expires in 2005. In
addition, each of our four NACO regions has a small regional office under a short term lease. Our
Paramus, New Jersey lease expires in 2007. Our foreign operations in each country generally also have
an office in each foreign country.
We typically hold our classes in third-party locations (typically meeting rooms in well-located civic
or religious organizations) or space leased in retail centers (typically leased spaces in strip malls for
short terms, generally less than five years). As of January 3, 2004, there were approximately 4,200
North America meeting locations, including approximately 3,500 third-party locations and 700 retail
centers. In the United Kingdom, there were approximately 4,400 meeting locations, with approximately
99.9% in third-party locations. In Continental Europe, there were approximately 4,000 meeting
locations, with approximately 97% in third-party locations. In Australia and New Zealand, there were
approximately 1,000 meeting locations, with approximately 96% in third-party locations.
Item 3. Legal Proceedings
We are not a party to any material pending legal proceedings. We are involved with legal
proceedings incidental to our business such as operational and contractual relations with our
franchisees. In the opinion of management, based in part upon advice of legal counsel, the disposition
of all such matters is not expected to have a material effect on our results of operations or financial
condition.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of our shareholders during the last quarter of the fiscal year
ended January 3, 2004.
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