WeightWatchers 2008 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2008 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

At the core of everything we
do is our fi rm commitment to
helping people lose weight
in a healthy and sensible
way so that they can live a
healthier lifestyle.
Over the past year, we continued to focus on the
core principle that has fueled the success of Weight
Watchers for more than 45 years since our founding
– helping people adopt a healthier lifestyle by losing
or managing their weight through sensible and
scientifi cally-based food plans, exercise, behavior
modifi cation and support. Despite an increasingly
challenging economic environment, we delivered solid
fi nancial results, made signifi cant advances against
our strategic growth initiatives, further strengthened
our reputation as a differentiated weight management
approach, and expanded our business and offerings
into new markets.
In 2008, Weight Watchers recorded revenue of $1.54
billion, up almost 5% over 2007. Growth was broad-
based, with global meeting fees, internet revenues
and licensing revenues all contributing. Of signifi cant
note was our WeightWatchers.com business, which
grew revenues almost 23% in 2008. Gross Profi t and
Operating Margins were sound at 54.4% and 27.7%,
respectively, fueling cash from operations of $241.2
million. With our high-margin business model, we have
the ability to consistently return value to shareholders.
In 2008, we paid $55.0 million in quarterly dividends,
repurchased 2.8 million shares, acquired several
franchisees, and generated earnings of $2.60 per fully
diluted share.
Over the past year, we made substantial strides in
executing on our two strategic planks for continued
long-term growth: retention and relevance. By
keeping our members and subscribers engaged
in our program longer, we help them achieve even
greater weight loss success. And by revitalizing and
differentiating our brand, we broaden our appeal to a
larger group of people.
DEAR SHAREHOLDERS