WeightWatchers 2012 Annual Report Download - page 31

We may not successfully make acquisitions or enter into joint ventures and we may not successfully
integrate, operate or realize the anticipated benefits of such businesses.
As part of our growth strategy, we may pursue selected acquisitions or joint ventures. We cannot assure you
that we will be able to effect these transactions on commercially reasonable terms or at all. Any future
acquisitions or joint ventures may require access to additional capital, and we cannot assure you that we will
have access to such capital on commercially reasonable terms or at all. Even if we enter into these transactions,
we may not realize the benefits we anticipate or we may experience difficulties in integrating any acquired
companies and products into our existing business or in providing our services and products in newly acquired
markets; attrition of key personnel from acquired businesses; significant charges or expenses; higher costs of
integration than we anticipated; or unforeseen operating difficulties that require significant financial and
managerial resources that would otherwise be available for the ongoing development or expansion of our existing
operations.
Our ability to influence the control of our joint ventures may be limited by contract or otherwise. In
addition, we may not be able to influence the occurrence or timing of distributions from our joint ventures. If any
of the other investors in one of our joint ventures fails to observe its commitments, the joint venture may not be
able to operate according to its business plan or we may be required to increase our level of commitment. The
interests of our joint venture partners may differ from ours, and they may cause such entities to take actions
which are not in our best interest. If we are unable to maintain our relationships with our joint venture partners,
we could lose our ability to operate in the geographies and/or markets in which they operate, which could have a
material adverse effect on our business, financial condition or results of operations.
Consummating these transactions could also result in the incurrence of additional debt and related interest
expense, as well as unforeseen contingent liabilities, all of which could have a material adverse effect on our
business, financial condition or results of operations. We may also issue additional equity in connection with
these transactions, which would dilute our existing shareholders.
Our business may decline as a result of a downturn in general economic conditions or consumer
confidence.
Our business is highly dependent on meeting fees, product sales and Internet product subscriptions. A
downturn in general economic conditions or consumer confidence in any of our major markets could result in
people curtailing or reallocating their discretionary spending which, in turn, could reduce attendance at our
meetings, product sales and Internet product subscriptions. For example, the current global economic downturn
led to a decrease in discretionary spending by consumers and loss of consumer confidence. Any reduction in
consumer spending may adversely affect our business, financial condition or results of operations.
The seasonal nature of our business could cause our operating results to fluctuate.
We have experienced and expect to continue to experience fluctuations in our quarterly results of
operations. Our business is seasonal with revenues generally decreasing at year end and during the summer
months. This seasonality could cause our share price to fluctuate as the results of an interim financial period may
not be indicative of our full year results. Seasonality also impacts relative revenue and profitability of each
quarter of the year, both on a quarter-to-quarter and year-over-year basis. The timing of certain holidays,
particularly Easter, which precedes our spring marketing campaign and occurs between March 22 and April 25,
may affect our results of operations and the year-to-year comparability of our quarterly results.
Any event that discourages or impedes people from gathering with others or accessing resources could
adversely affect our business.
Our meeting and Internet operations are subject to conditions beyond our control that may prevent or
impede current or prospective members from attending or joining meetings, or subscribers from accessing our
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