WeightWatchers 2010 Annual Report Download - page 56

Statements of Income as Re
p
orted and Adjusted
(
In millions, exce
p
t
p
er share amounts
)
Fiscal
2010
Fiscal
2009
Increase
/
(
Decrease
)
%
C
hang
e
R
evenues, net (as a
dj
uste
d
)
(1)
...............................
$
1,450.0 $1,398.9 $ 51.1 3.7
%
UK VAT ru
li
n
g
accrua
l
reversa
l
(1)
.
...................... 2.0 — $ 2.0
R
evenues, net of VAT ruling
................................
1
,4
5
2.0 1,398.9
5
3.1 3.8%
Cost o
f
revenues (as a
dj
uste
d)
(
2
)
.
............................ 661.4 638.5 22.9 3.6%
UK se
lf
-emp
l
o
y
ment tax ru
li
n
g
(
2
)
........................ —
3
2.5
(
32.5
)
C
ost o
f
re
v
enues
.........................................
661.4 671.0 (9.5) (1.4%
)
G
ross Profit
.....................................
7
9
0.
6
727.
96
2.7 8.
6
%
G
ross Margin
%
.................................
54.4% 52.0
%
Marketing expense
s
.......................................
2
17.1 200.
5
16.6 8.3%
Selling, general & administrative expenses (as adjusted
)
(
2
)
........
1
83.2 16
5
.3 17.8 10.7%
I
mpact of restructuring charge
s
.......................... —
5
.
5
(5
.
5)
Se
lli
ng, genera
l
&a
d
m
i
n
i
strat
i
ve expense
s
....................
183
.
21
7
0
.
812
.
3
7.
2%
O
perat
i
ng
i
ncome
................................
390.3 3
5
6.7 33.7 9.4%
Operating Income Margin
%
........................
26
.9% 25.5
%
I
nterest expense
..........................................
76.2 66.7 9.
5
14.2%
Ot
h
er expense (
i
ncome), ne
t
................................
0
.
9
(0
.
2) 1
.
1 (100
.
0%)
Income
b
e
f
ore
i
ncome taxes
........................
313.2 290.1 23.1 7.9%
Pro
vi
s
i
on
f
or
i
ncome taxes
.................................
1
2
0
.7 11
5
.
65
.1 4.4%
Net income
......................................
19
2.
5
174.
5
18.0 10.3%
Net loss attributable to the noncontrolling interest ...............
1
.7
2
.
8
(1
.
1) (38
.
2%)
Net
i
ncome attr
ib
uta
bl
etot
h
e Company ...............
$
1
94.2
$
177.3
$
16.9 9.5%
W
e
i
g
h
te
d
average
dil
ute
d
s
h
ares outstan
di
n
g
.
.................. 7
5
.9 77.1
(
1.2
)(
1.6%
)
D
il
ute
d
EPS .............................................
$
2.56
$
2.30
$
0.26 11.3%
(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of income for fisca
l
2
010 to exclude the benefit of a
$
2.0 million increase to revenues from the reversal of an over-accrua
l
related to the adverse UK VAT ruling. See “Non-GAAP Financial Measures” above for an explanation o
f
our use of non-GAAP financial measures
.
(2) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of income for fisca
l
2
009 to exclude
$
32.5 million in cost of revenues for the impact of the UK self-employment tax ruling, and
to exclude from selling, general and administrative expenses the impact of
$
5.5 million of restructuring
charges associated with our previously disclosed cost savings initiatives. See “Non-GAAP Financial
M
easures” above for an ex
p
lanation of our use of non-GAAP financial measures.
Our revenues increased by
$
53.1 million from
$
1,398.9 million in fiscal 2009 to
$
1,452.0 million in fisca
l
2010, an increase of 3.8%. As noted in the above table, fiscal 2010 results included a benefit to revenue of
$
2.
0
million for a partial accrual reversal of a charge previously recorded in the second quarter of fiscal 2008. A
s
40