WeightWatchers 2011 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2011 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 130

  • 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
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

Meeting Fees
Global meeting fees for fiscal 2011 were $990.3 million, an increase of $170.7 million, or 20.8%, from
$819.6 million in the prior year. After the $2.0 million adjustment to fiscal 2010 global meeting fees for the UK
VAT accrual reversal noted above, fiscal 2011 revenues of $990.3 million would have been $172.7 million, or
21.1% above the prior year. Excluding the impact of foreign currency, which increased our global meeting fees
by $19.6 million, global meeting fees in fiscal 2011 increased 18.4% versus the prior year as a result of strong
enrollment growth. The new program launches in our North American and UK markets in late fiscal 2010,
combined with effective marketing and public relations throughout the period, were the key drivers of this
growth during fiscal 2011. In addition, the number and proportion of our new and existing meeting members
purchasing Monthly Pass increased in fiscal 2011 versus the prior year. Monthly Pass purchasers have a longer
tenure, and accordingly, contribute higher lifetime revenue on average than those who pay for attendance on a
week-to-week basis.
As a result of the enrollment strength and the increase in Monthly Pass purchasers, global meeting paid
weeks rose 19.2% to 104.8 million in fiscal 2011, up from 87.9 million in the prior year. This growth rate in
meeting paid weeks marks a significant improvement from the low growth rates experienced on average
throughout fiscal 2010. Global attendance in our meetings business increased by 11.9% to 57.0 million in fiscal
2011, from 51.0 million in fiscal 2010. In our North American and UK markets, the new programs not only
attracted new customers to the meetings business, but also increased meeting attendance by our existing
members. In fiscal 2011, our Continental European market experienced paid weeks and attendance declines
versus fiscal 2010, as a result of cycling against a new program launch in the prior year. This market is still in the
process of developing effective marketing campaigns.
In NACO, meeting fees in fiscal 2011 were $686.8 million, an increase of $141.5 million, or 25.9%, from
$545.3 million in fiscal 2010. Excluding the impact of foreign currency, which increased NACO meeting fees by
$2.1 million, NACO meeting fees grew by 25.6% in fiscal 2011 versus the prior year. Meeting fees grew
primarily from the positive impact on enrollments of the highly successful PointsPlus program, which launched
in late fiscal 2010, our effective marketing campaign strategy which has raised the profile and attraction of our
offerings to both former members and new customers, and increased purchases of the Monthly Pass commitment
plan. As a result of these factors, NACO meeting paid weeks increased 26.4% in fiscal 2011 versus the prior year
to 69.9 million, and attendance grew 18.8% in fiscal 2011 versus the prior year to 36.0 million. In the fourth
quarter fiscal 2011, due to cycling against the very successful launch of the program innovation in November of
2010, paid weeks and attendance growth of 15.0% and 5.5% decelerated when compared to the paid weeks and
attendance growth of 30.2% and 22.7% we experienced in the first nine months of fiscal 2011 as compared to the
respective prior year periods.
Our international meeting fees in fiscal 2011 were $303.5 million, an increase of $29.1 million, or 10.6%,
from $274.4 million in the prior year. After the $2.0 million adjustment to fiscal 2010 international meeting fees
for the UK VAT accrual reversal noted above, fiscal 2011 revenues would have been $31.2 million, or 11.5%,
above fiscal 2010. Excluding the impact of foreign currency, which increased adjusted international meeting fees
by $17.4 million, adjusted international meeting fees grew by 5.1% in fiscal 2011 versus the prior year.
International meeting paid weeks increased 7.0% versus the prior year to 34.9 million in fiscal 2011, driven
primarily by the performance of the UK meetings business. International attendance increased by 1.6%, to
21.0 million in fiscal 2011 versus 20.7 million in fiscal 2010, primarily as a result of declines in the Continental
European meetings business.
The UK meetings business benefited from the impact of the ProPoints program, which launched in late
fiscal 2010 and drove meeting fees and paid weeks growth in that market. UK meeting fees in fiscal 2011 grew
by 23.5%, or 18.7% on a constant currency basis, with paid weeks up 18.3% and attendance up 13.7% in fiscal
2011, as compared to the prior year. After the $2.0 million adjustment to fiscal 2010 international meeting fees
for the UK VAT accrual reversal noted above, fiscal 2011 revenues would have been $24.6 million, or 26.2%,
above fiscal 2010.
44