WeightWatchers 2004 Annual Report Download - page 21

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Item 6. Selected Financial Data
The following schedule sets forth our selected financial data for the fiscal years ended January 1,
2005, January 3, 2004, December 28, 2002 and December 29, 2001, the eight months ended
December 30, 2000, and the fiscal year ended April 29, 2000.
SELECTED FINANCIAL DATA
(In millions, except per share amounts)
Eight
Months Fiscal Year
Fiscal Years Ended Ended Ended
January 1, January 3, December 28, December 29, December 30, April 29,
2005 2004 2002 2001 2000 2000
(35 Weeks)
Revenues, net .............. $1,024.9 $943.9 $809.6 $623.9 $273.2 $399.5
Net income ................ $ 183.1 $143.9 $143.7 $147.2 $ 15.0 $ 37.8
Working capital (deficit) ....... $ (26.8) $(19.5) $ 22.1 $(24.1) $ 10.2 $ (0.9)
Total assets ................ $ 816.2 $770.7 $609.9 $482.9 $346.2 $334.2
Long-term obligations ........ $ 466.1 $454.3 $436.3 $484.3 $482.5 $486.4
Earnings per share:
Basic ................... $ 1.75 $ 1.35 $ 1.35 $ 1.34 $ 0.13 $ 0.20
Diluted ................. $ 1.71 $ 1.31 $ 1.31 $ 1.31 $ 0.13 $ 0.20
Items Affecting Comparability
Several events occurred during the fiscal years ended January 1, 2005, January 3, 2004,
December 28, 2002 and December 29, 2001, the eight months ended December 30, 2000, and the fiscal
year ended April 29, 2000 that affect the comparability of our financial statements. The nature of these
events and their impact on underlying business trends are as follows:
Consolidation of WeightWatchers.com
On April 3, 2004, we adopted the provisions of FASB Interpretation No. 46R, ‘‘Variable Interest
Entities,’’ and began consolidating the results of WeightWatchers.com. Upon adoption, we recorded a
charge of $11.9 million in the quarter ended April 3, 2004 for the cumulative effect of this accounting
change. This charge reflects the cumulative impact to our results of operations had
WeightWatchers.com been consolidated since its inception in September 1999. Beginning on April 3,
2004, our consolidated balance sheet includes the balance sheet of WeightWatchers.com. Effective at
the beginning of the second fiscal quarter of 2004, our consolidated statement of operations and
statement of cash flows include the results of WeightWatchers.com. All intercompany balances have
been eliminated.
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.
On October 1, 2004, we repurchased and retired the remaining balance of our Senior Subordinated
Notes in the amounts of $5.1 million USD denominated and A8.4 million euro denominated. Due to
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