WeightWatchers 2003 Annual Report Download - page 85

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
18. Quarterly Financial Information (Unaudited)
The following is a summary of the unaudited quarterly results of operations for the fiscal years
ended January 3, 2004 and December 28, 2002.
For the Fiscal Quarters Ended
March 29, June 28, September 27, January 3,
2003 2003 2003 2004
Fiscal year ended January 3, 2004
Revenues, net ............................... $251,479 $258,869 $217,498 $216,086
Operating income ............................ $79,414 $ 97,636 $ 74,018 $ 65,001
Net income ................................ $40,581 $ 53,774 $ 11,482 $ 38,104
Basic EPS ................................. $ 0.38 $ 0.50 $ 0.11 $ 0.36
Diluted EPS ................................ $ 0.37 $ 0.49 $ 0.10 $ 0.35
For the Fiscal Quarters Ended
March 30, June 29, September 28, December 28,
2002 2002 2002 2002
Fiscal year ended December 28, 2002
Revenues, net ............................. $212,503 $217,893 $189,172 $190,078
Operating income .......................... $71,056 $ 90,521 $ 74,407 $ 60,873
Net income ............................... $37,284 $ 41,220 $ 36,832 $ 28,358
Basic EPS ................................ $ 0.35 $ 0.39 $ 0.35 $ 0.27
Diluted EPS .............................. $ 0.34 $ 0.38 $ 0.34 $ 0.26
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly,
the sum of the quarterly EPS amounts may not agree to the total for the year.
19. Subsequent Event
In January 2004, the Company refinanced its existing debt, which moved a large portion of its debt
from fixed term loans to revolver. Under the refinancing, the term loans have been reduced from
$454,180 to $150,000 and the Revolver capacity has increased from $45,000 to $350,000. To complete
the refinancing, the Company drew down $310,000 of the Revolver. In connection with this early
extinguishment of debt, the Company incurred charges of approximately $3,000 in the first quarter of
2004.
20. Guarantor Subsidiaries
The Company’s payment obligations under the Senior Subordinated Notes are fully and
unconditionally guaranteed on a joint and several basis by the following wholly-owned subsidiaries: 58
WW Food Corp.; Waist Watchers, Inc.; Weight Watchers Camps, Inc.; W.W. Camps and Spas, Inc.;
Weight Watchers Direct, Inc.; W/W Twentyfirst Corporation; W.W. Weight Reduction Services, Inc.;
W.W.I. European Services Ltd.; W.W. Inventory Service Corp.; Weight Watchers North America, Inc.;
Weight Watchers U.K. Holdings Ltd.; Weight Watchers International Holdings Ltd.; Weight Watchers
(U.K.) Limited; Weight Watchers (Exercise) Ltd.; Weight Watchers (Accessories & Publications) Ltd.;
F-31