WeightWatchers 2007 Annual Report Download - page 3

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By better integrating Weight
Watchers into the lives of
members through an easy
payment plan, Monthly Pass
helps our members extend
their time as members, making
their weight loss achievements
even more impressive.
For over forty years, we have successfully helped
people change their lives by providing them with
the guidance, tools and support they need to
improve their health and thereby enhance their
lifestyles and self-confi dence. At Weight Watchers,
there’s a clear correlation between doing what’s
best for our members and doing what’s best for
our shareholders. We succeed when our members
succeed. By adhering to our core values and
delivering compelling, proven and innovative weight
management solutions, we also drive fi nancial growth
and return value to our shareholders.
During the past year, we continued to strengthen
our weight management approaches and improve
upon the fl exibility of our programs, while executing
complementary growth initiatives. Our business
model is sound, as evidenced by our ability to
deliver consistently strong cash fl ows. In 2007,
we posted revenue of $1.47 billion, up 19% over
2006, and an operating income margin of 30%, and
generated cash from operations of $319 million.
Meeting fees, product sales, Internet revenues from
WeightWatchers.com, and licensing were all major
drivers behind our growth in 2007, with revenues from
meeting fees up 22%, product sales up 15%, and
Internet revenues and licensing revenues up 17% and
21%, respectively. Operationally, from 2006 to 2007,
our worldwide attendances were up 3% to 63 million
and our end-of-year active online subscriber base
expanded by 27% to 584,000.
We also utilized our impressive cash generating abilities
to return value to shareholders. We completed a 19
million share tender offer and repurchase, paid $59
million in quarterly dividends, and acquired franchisees.
Our unrivaled business model gives us the strong
operational and fi nancial foundation to pursue the
growth opportunities before us and build upon our
market leading position going forward.
DEAR SHAREHOLDERS