WeightWatchers 2003 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 January 3,
2004, 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.
SELECTED FINANCIAL DATA
(In millions, except per share amounts)
Eight Months
Ended
Fiscal Years Ended Fiscal Years Ended
December 30,
January 3, December 28, December 29, 2000 April 29, April 24,
2004 2002 2001 (35 Weeks) 2000 1999
Revenues, net ................... $943.9 $809.6 $623.9 $273.2 $399.5 $364.6
Net income ..................... $143.9 $143.7 $147.2 $ 15.0 $ 37.8 $ 47.9
Working capital (deficit) ............ $(19.5) $ 22.1 $(24.1) $ 10.2 $ (0.9) $ 91.2
Total assets ..................... $770.7 $609.9 $482.9 $346.2 $334.2 $371.4
Long-term obligations .............. $469.9 $454.7 $500.0 $496.7 $500.5 $ 16.7
Earnings per share:
Basic ........................ $1.35 $ 1.35 $ 1.34 $ 0.13 $ 0.20 $ 0.17
Diluted ....................... $1.31 $ 1.31 $ 1.31 $ 0.13 $ 0.20 $ 0.17
Items Affecting Comparability
Several events occurred during the fiscal years ended January 3, 2004, 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:
Debt Refinancing. On August 21, 2003, we successfully completed a tender offer and consent
solicitation to purchase 96.6% of our $150.0 million USD denominated ($144.9 million) and 91.6% of
our A100.0 million euro denominated (A91.6 million) 13% Senior Subordinated Notes. The
consideration for the tender offer and consent solicitation was funded from cash on hand of
$57.3 million and $227.3 million of additional borrowings under the Credit Facility, which we refinanced
as follows: Term Loans B and D and the TLC in the aggregate amount of $204.7 million were repaid
and replaced with a new Term Loan B in the amount of $382.9 million and a new TLC in the amount
of $49.1 million. Term Loan A in the amount of $30.0 million remained in place, along with a Revolver
with available borrowings up to $45.0 million. Due to this early extinguishment of debt, we recognized
expenses of $47.4 million in the third quarter of 2003.
Acquisitions of WW Group and Dallas/New Mexico. On March 30, 2003, we acquired certain assets
of eight of the fifteen franchises of The WW Group, Inc. and its affiliates (the ‘‘WW Group’’) for an
aggregate purchase price of $180.7 million. The acquisition was financed through cash and additional
borrowings of $85 million. On November 30, 2003, we acquired certain assets of our franchises in
Dallas and New Mexico for a total purchase price of $27.2 million. This acquisition was financed
through cash from operations. All acquisitions have been accounted for as purchases and accordingly,
their earnings have been included in our consolidated operating results since the dates of their
acquisitions.
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
that 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
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