WeightWatchers 2004 Annual Report Download - page 19

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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 regulation, more aggressive enforcement of existing legislation or regulation or a
change in the interpretation of existing legislation or regulation.
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 currently headquartered in Woodbury, New York in a leased office that is scheduled to
expire in 2005. In anticipation of the expiration of this lease, on October 3, 2004, we entered into an
eight-year lease agreement to relocate our corporate headquarters to New York City. 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. Each of our foreign country operations generally have an office.
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 1, 2005, there were approximately 4,100
North America meeting locations, including approximately 3,400 third-party locations and 700 retail
centers. In the United Kingdom, there were approximately 4,500 meeting locations, with approximately
99.9% in third-party locations. In Continental Europe, there were approximately 4,500 meeting
locations, with approximately 98% in third-party locations. In Australia and New Zealand, there were
approximately 1,000 meeting locations, with approximately 97% in third-party locations.
Item 3. Legal Proceedings
On February 18, 2005, we satisfactorily settled the lawsuit with CoolBrands International, Inc.
(‘‘CoolBrands’’) and as of May 1, 2005, CoolBrands will no longer manufacture, sell, market or
distribute ice cream and frozen novelty products using our trademarks. On August 3, 2004, we filed a
lawsuit to enforce the sell-off provisions of the CoolBrands license. On August 11, 2004, CoolBrands
filed a lawsuit in the Supreme Court, State of New York, Nassau County, against us and Wells’
Dairy Inc., which is our new licensee for ice cream and frozen novelty products effective October 1,
2004.
Due to the nature of our activities, we are at times also subject to pending and threatened legal
actions that arise out of the normal course of business. 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, financial condition or cash flows.
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 1, 2005.
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