WeightWatchers 2006 Annual Report Download - page 3

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On December 31, 2006, I succeeded Linda A. Huett
as Weight Watchers International’s President and Chief
Executive Offi cer. During her 23 years with the company,
including seven as President and CEO, Linda oversaw the
transformation of Weight Watchers into a diverse enter-
prise with multiple revenue streams and growth drivers.
Today, Weight Watchers is a robust and growing organi-
zation with an exceptional global brand, industry-leading
services and products and an enormously dedicated and
talented group of employees and service providers. It is
an honor for me to have the opportunity to lead this com-
pany and to be a part of the critical mission it serves in
helping to address the global obesity epidemic.
Weight Watchers has never been in a better posi-
tion to tackle the issue of obesity. With the number
of overweight and obese people steadily increasing
over the past 20 years to a now estimated 1.6 billion,
it is no wonder that people across the globe continue
to search for help in achieving their weight loss goals.
More than ever, there is a critical need for our services
and products. At the center of our enduring success is
our unique approach that combines long-term behavior
modifi cation with scientifi cally proven food and activity
plans. Our approach is designed to help our mem-
bers achieve long term, sustained weight loss. Today,
Weight Watchers remains the only commercial weight
management plan whose effi cacy is clinically proven.
Weight Watchers is a business with compelling
advantages:
• The leading global weight loss brand
• Diversifi ed revenue streams
• An attractive business model with strong cash fl ow
• High barriers to entry
• Long term customer relationships
• Effi cient customer acquisition costs
For over four decades, we have built upon the strength of
our brand by delivering tangible results to our members.
In 2006, we continued to reinforce our scientifi cally based
weight management approaches, while further develop-
ing a broad range of innovative products and services that
build on our market leadership, expand our audiences and
increase our long-term growth potential. These efforts are
benefi ting our core meetings business as well as helping
us rapidly grow our online and licensing businesses.
We generated over $1.23 billion in total revenue in 2006,
up 7.1 percent over 2005. In addition, we posted $265.8
million in cash from operating activities and net income
DEAR SHAREHOLDERS