WeightWatchers 2006 Annual Report Download - page 68

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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)
December 30,
2006
December 31,
2005
January 1,
2005
(52 weeks) (52 Weeks) (52 Weeks)
Meeting fees, net ........................................... $ 723,088 $ 681,097 $ 629,097
Product sales and other, net ................................... 380,817 360,497 330,833
Online revenues ............................................ 129,420 109,657 64,989
Revenues, net .......................................... 1,233,325 1,151,251 1,024,919
Cost of meetings, products and other ............................ 523,669 493,910 468,312
Cost of online subscriptions ................................... 33,496 26,772 18,810
Cost of revenues ........................................ 557,165 520,682 487,122
Gross profit ........................................... 676,160 630,569 537,797
Marketing expenses ......................................... 158,942 158,252 134,791
Selling, general and administrative expenses ..................... 137,170 169,825 97,121
Operating income ....................................... 380,048 302,492 305,885
Interest expense ............................................ 49,532 20,969 16,759
Other (income)/expense, net .................................. (1,447) 2,208 (4,685)
Early extinguishment of debt .................................. 1,321 — 4,264
Income before income taxes and cumulative effect of accounting
change ............................................. 330,642 279,315 289,547
Provision for income taxes .................................... 120,817 104,913 94,522
Income before cumulative effect of accounting change ......... 209,825 174,402 195,025
Cumulative effect of accounting change, net of tax ............ — — (11,941)
Net income ........................................ $ 209,825 $ 174,402 $ 183,084
Basic Earnings Per Share:
Income before cumulative effect of accounting change ......... $ 2.13 $ 1.70 $ 1.86
Cumulative effect of accounting change, net of tax ................ — — (0.11)
Net income ........................................ $ 2.13 $ 1.70 $ 1.75
Diluted Earnings Per Share:
Income before cumulative effect of accounting change ......... $ 2.11 $ 1.67 $ 1.82
Cumulative effect of accounting change, net of tax ............ — — (0.11)
Net income ........................................ $ 2.11 $ 1.67 $ 1.71
Weighted average common shares outstanding:
Basic ................................................. 98,719 102,747 104,704
Diluted ............................................... 99,426 104,203 106,985
Dividends declared per common share .......................... $ 0.70 — —
The accompanying notes are an integral part of the consolidated financial statements.
F-5