WeightWatchers 2005 Annual Report Download - page 32

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Item 6. Selected Financial Data
The following schedule sets forth our selected financial data for fiscal 2005, 2004, 2003, 2002 and
2001.
SELECTED FINANCIAL DATA
(in millions, except per share amounts)
Fiscal 2005 Fiscal 2004 Fiscal 2003 Fiscal 2002 Fiscal 2001
(52 weeks) (52 weeks) (53 weeks) (52 weeks) (52 weeks)
Revenues, net ....................... $1,151.3 $1,024.9 $943.9 $809.6 $623.9
Net income ......................... 174.4 183.1 143.9 143.7 147.2
Working capital (deficit) ............... (38.2) (26.8) (19.5) 22.1 (24.1)
Total assets ......................... 835.5 816.2 770.7 609.9 482.9
Long-term obligations ................. 741.4 466.1 454.3 436.3 484.3
Earnings per share:
Basic ............................ $ 1.70 $ 1.75 $ 1.35 $ 1.35 $ 1.34
Diluted .......................... $ 1.67 $ 1.71 $ 1.31 $ 1.31 $ 1.31
Items Affecting Comparability
Several events occurred during fiscal 2005, 2004, 2003, 2002 and 2001 that affect the comparability
of our financial statements. The nature of these events and their impact on underlying business trends
are as follows:
Consolidation/Acquisition 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, including a tax charge of $9.9 million, in the fiscal 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 quarter of fiscal 2004, our consolidated
statement of operations and statement of cash flows include the results of WeightWatchers.com. All
intercompany balances have been eliminated.
As of December 16, 2005, WeightWatchers.com became a wholly-owned subsidiary of Weight
Watchers International. In connection with the acquisition of WeightWatchers.com, described more fully
in Item 1 of this Annual Report on Form 10-K, we recognized $46.1 million and $0.3 million of
expenses during the second and third quarters of fiscal 2005, respectively.
Debt Refinancing
On January 16, 2001, Weight Watchers International entered into a credit facility, as amended and
restated, or the WWI Credit Facility, which consists of Term Loans and a revolving line of credit, or a
Revolver.
On August 21, 2003, we successfully completed a tender offer and consent solicitation to purchase
97%, or approximately $144.9 million, of our $150.0 million U.S. dollar denominated and 92%, or
approximately A91.6 million, of our A100.0 million euro denominated 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 WWI Credit Facility.
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