WeightWatchers 2005 Annual Report Download - page 36

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The following table sets forth our revenues by category for fiscal 2001, 2002, 2003, 2004 and 2005.
Revenue Sources
(in millions)
Fiscal 2001 Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005
(52 weeks) (52 weeks) (53 weeks) (52 weeks) (52 weeks)
Meeting fees ....................... $415.7 $520.7 $607.2 $ 629.1 $ 681.1
Product sales ...................... 170.4 237.6 276.8 274.6 285.5
Online revenues .................... — — — 65.0 109.7
Licensing, franchise royalties and other . . . 37.8 51.3 59.9 56.2 75.0
Total ............................ $623.9 $809.6 $943.9 $1,024.9 $1,151.3
From fiscal 2001 through fiscal 2005, our revenues have increased at a compound annual growth
rate of 17%. This increase is principally a result of:
•Increased NACO meeting attendance. Our NACO meeting attendance, including the impact of
our acquisitions, grew from 23.5 million for fiscal 2001 to 33.5 million for fiscal 2005, a
compound annual growth rate of 9.2%. This growth resulted from our program innovations, as
well as our acquisitions of franchise operations over that period.
•Accelerated growth in Continental Europe. From fiscal 2001 to fiscal 2005, attendance in our
Continental European operations grew at a compound annual rate of 7.5% as a result of
adapting our business model to local conditions, implementing more aggressive marketing
programs tailored to the local markets and increasing the number of meetings ahead of
anticipated demand.
•Increased product sales. Global product sales have grown at a compound annual rate of 13.8%
from fiscal 2001 to fiscal 2005 as a result of our growing attendance and launching new products
successfully. In our meetings, we have increased average product sales per attendee from $2.75
to $3.88 over the same period.
•Consolidation of WeightWatchers.com. Effective April 3, 2004, we began consolidating
WeightWatchers.com. As a result of this consolidation, we have included $65.0 million and
$109.7 million of WeightWatchers.com revenues in our results of operations for fiscal 2004 and
fiscal 2005, respectively.
•Increased licensing revenues. Licensing revenues grew at a compound annual rate of 99.9% from
fiscal 2001 to fiscal 2005 primarily as a result of our increased focus on expanding the number of
Weight Watchers branded products worldwide and the reversion to us at the end of the third
quarter of fiscal 2004 of revenues from certain third party licenses which had been paid to Heinz
up until that time.
As shown in the chart below, our worldwide annual attendance (including the aforementioned
acquisitions of franchise operations) in our company-owned operations has grown by 29.6%, from
47.0 million for fiscal 2001 to 60.9 million for fiscal 2005.
26