WeightWatchers 2006 Annual Report Download - page 37

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Item 6. Selected Financial Data
The following schedule sets forth our selected financial data for the last five fiscal years.
SELECTED FINANCIAL DATA
(in millions, except per share amounts)
Fiscal 2006
(52 weeks)
Fiscal 2005
(52 weeks)
Fiscal 2004
(52 weeks)
Fiscal 2003
(53 weeks)
Fiscal 2002
(52 weeks)
Revenues, net ................................ $1,233.3 $1,151.3 $1,024.9 $943.9 $809.6
Net income ................................. $ 209.8 $ 174.4 $ 183.1 $143.9 $143.7
Working capital (deficit) ....................... $ (81.8) $ (38.2) $ (26.8) $ (19.5) $ 22.1
Total assets ................................. $1,002.4 $ 835.5 $ 816.2 $770.7 $609.9
Long-term obligations ......................... $ 830.2 $ 741.4 $ 466.1 $454.3 $436.3
Earnings per share: ...........................
Basic .................................. $ 2.13 $ 1.70 $ 1.75 $ 1.35 $ 1.35
Diluted ................................. $ 2.11 $ 1.67 $ 1.71 $ 1.31 $ 1.31
Dividends declared per common share ............ $ 0.70 — — — —
Items Affecting Comparability
Several events occurred during each of the last five fiscal years 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 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
€91.6 million, of our €100.0 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.
On August 21, 2003, in connection with the purchase of the majority of our 13% Senior Subordinated
Notes, we refinanced the WWI Credit Facility as follows: Term Loans B and D and the transferable loan
certificate, or TLC, in the aggregate amount of $204.7 million were repaid and replaced with a new Term Loan B
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