WeightWatchers 2012 Annual Report Download - page 59

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Summary of Selected Financial Data as Reported and Adjusted
(In millions, except per share amounts)
Fiscal
2012
Fiscal
2011
Increase/
(Decrease)
%
Change
Revenues ............................................. $1,826.8 $1,819.2 $ 7.7 0.4%
Cost of revenues (as adjusted)(1) ........................... 758.6 772.0 (13.4) (1.7%)
UK Self-employment settlement(1) ..................... (14.5) — (14.5)
Cost of revenues ....................................... 744.0 772.0 (28.0) (3.6%)
Gross Profit ................................... 1,082.8 1,047.1 35.6 3.4%
Gross Margin % ............................... 59.3% 57.6%
Marketing expenses ..................................... 343.5 292.4 51.2 17.5%
Selling, general & administrative expenses .................. 228.5 208.5 20.0 9.6%
Operating income .............................. 510.8 546.3 (35.5) (6.5%)
Operating Income Margin % ..................... 28.0% 30.0%
Interest expense (as adjusted)(1) ............................ 83.4 59.9 23.6 39.4%
UK Self-employment settlement(1) ..................... 7.1 — 7.1
Interest expense ........................................ 90.5 59.9 30.7 51.3%
Other expense, net ...................................... 2.0 3.4 (1.4) (41.6%)
Early extinguishment of debt ............................. 1.3 — 1.3
Income before income taxes ...................... 417.0 483.1 (66.1) (13.7%)
Provision for income taxes (as adjusted)(1) ................... 156.2 178.7 (22.5) (12.6%)
UK Self-employment settlement(1) ..................... 3.3 — 3.3
Provision for income taxes ............................... 159.5 178.7 (19.2) (10.7%)
Net income ................................... 257.4 304.3 (46.9) (15.4%)
Net loss attributable to the noncontrolling interest ............. — 0.5 (0.5)
Net income attributable to the Company ............ $ 257.4 $ 304.9 $(47.4) (15.6%)
Weighted average diluted shares outstanding ................. 60.9 74.1 (13.2) (17.8%)
Diluted EPS ........................................... $ 4.23 $ 4.11 $ 0.11 2.7%
Note: Totals may not sum due to rounding
(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of income for fiscal 2012 to exclude the impact
of a $14.5 million decrease to cost of revenues and $7.1 million increase to interest expense related to the settlement of the UK Self-
employment matter. See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.
The following table sets forth a reconciliation for fiscal 2012 of certain selected financial data:
(in millions, except per share amounts)
Gross
Profit
Gross
Profit
Margin
Operating
Income
Operating
Income
Margin
Interest
Expense
Net Income
Attributable
to Company
Diluted
EPS
Fiscal 2012 ...................... $1,082.8 59.3% $510.8 28.0% $90.5 $257.4 $ 4.23
Adjustments to Reported Amounts(1)
UK self-employment accrual
reversal(1) ................. (14.5) (14.5) (7.1) (4.1) (0.07)
Total Adjustments ........ (14.5) (14.5) (7.1) (4.1) (0.07)
Fiscal 2012, as adjusted(1) .......... $1,068.2 58.5% $496.3 27.2% $83.4 $253.3 $ 4.16
Note: Totals may not sum due to rounding
(1) “As adjusted” is a non-GAAP financial measure that adjusts the consolidated statements of net income for fiscal 2012 to exclude the
impact of a $14.5 million decrease to cost of revenues and the $7.1 million increase to interest expense related to the settlement of the
UK self-employment matter .
See “Non-GAAP Financial Measures” above for an explanation of our use of non-GAAP financial measures.
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