WeightWatchers 2011 Annual Report Download - page 51

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Metrics and Business Trends
Performance Indicators and Market Trends
Our management reviews and analyzes several key performance indicators in order to manage our business
and assess the quality and potential variability of our cash flows and earnings. These key performance indicators
include:
• net revenues, which are an indicator of our overall business growth;
• paid weeks and attendance metrics;
• lecture income per paid week and in-meeting product sales per attendee;
• the number of Weight Watchers Online subscribers; and
• operating expenses as a percentage of revenue, which is an indicator of the efficiency of our business
and our ability to manage our business to budget.
We believe that our revenues and profitability can be sensitive to major trends in the weight management
industry. In particular, we believe that our business could be adversely impacted by:
• the temporary emergence of fad diets;
• a decrease in the effectiveness of our marketing and advertising programs;
• a failure to develop innovative new services and products;
• the development of more favorably perceived or more effective weight management methods,
including pharmaceuticals;
• an impairment of the Weight Watchers brand and our other intellectual property;
• a failure of our technology or systems to perform as designed; and
• a downturn in general economic conditions or consumer confidence.
Global Operations
The following tables set forth our paid weeks and meeting attendance by geography for the past five fiscal
years:
Paid Weeks in Company-Owned Operations
(in millions)
Fiscal 2011 Fiscal 2010 Fiscal 2009 Fiscal 2008 Fiscal 2007
(52 weeks) (52 weeks) (52 weeks) (53 weeks) (52 weeks)
North America ............................... 69.9 55.3 55.8 61.0 58.4
United Kingdom ............................. 19.1 16.1 16.2 15.0 12.8
Continental Europe ........................... 12.2 13.6 12.7 12.5 10.7
Other International ........................... 3.6 2.9 2.9 2.8 2.7
Total Meeting Paid Weeks ................. 104.8 87.9 87.6 91.3 84.6
Online paid weeks ............................ 89.1 52.5 42.7 38.9 31.0
Total Paid Weeks ......................... 193.9 140.4 130.3 130.2 115.6
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