WeightWatchers 2004 Annual Report Download - page 65

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WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE FISCAL YEARS ENDED
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
January 1, January 3, December 28,
2005 2004 2002
(52 Weeks) (53 Weeks) (52 Weeks)
Meeting fees, net .................................... $629,097 $607,204 $520,723
Product sales and other, net ............................ 330,833 336,728 288,921
Online subscription fees ............................... 64,989 — —
Revenues, net ..................................... 1,024,919 943,932 809,644
Cost of meetings, products and other ...................... 468,312 440,398 370,290
Cost of online subscriptions ............................. 18,810 — —
Cost of revenues ................................... 487,122 440,398 370,290
Gross profit ...................................... 537,797 503,534 439,354
Marketing expenses .................................. 134,791 113,603 81,233
Selling, general and administrative expenses ................. 97,121 73,862 61,267
Operating income .................................. 305,885 316,069 296,854
Interest expense, net .................................. 16,759 33,698 42,299
Other (income)/expense, net ............................ (4,685) 2,774 19,054
Early extinguishment of debt ............................ 4,264 47,368 —
Income before income taxes and cumulative effect of accounting
change ........................................ 289,547 232,229 235,501
Provision for income taxes .............................. 94,522 88,288 91,807
Income before cumulative effect of accounting change ........ 195,025 143,941 143,694
Cumulative effect of accounting change, net of tax ............ (11,941) — —
Net income ....................................... $183,084 $143,941 $143,694
Preferred stock dividends .............................. — — 254
Net income available to common shareholders ............ $183,084 $143,941 $143,440
Basic Earnings Per Share:
Income before cumulative effect of accounting change ........ $ 1.86 $ 1.35 $ 1.35
Cumulative effect of accounting change, net of tax .......... (0.11) — —
Net income ..................................... $ 1.75 $ 1.35 $ 1.35
Diluted Earnings Per Share:
Income before cumulative effect of accounting change ........ $ 1.82 $ 1.31 $ 1.31
Cumulative effect of accounting change, net of tax .......... (0.11) — —
Net income ..................................... $ 1.71 $ 1.31 $ 1.31
Weighted average common shares outstanding:
Basic ........................................... 104,704 106,676 105,959
Diluted .......................................... 106,985 109,724 109,663
The accompanying notes are an integral part of the consolidated financial statements.
F-3