WeightWatchers 2013 Annual Report Download - page 62

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enrollments in fiscal 2013 as compared to the prior year. The meetings active base is primarily comprised of
Monthly Pass active subscribers which declined 10.8% to 1.2 million at the end of fiscal 2013 from 1.4 million at
the end of fiscal 2012. Global attendance decreased 15.5% to 42.9 million in fiscal 2013 from 50.7 million in
fiscal 2012.
In NACO, meeting fees in fiscal 2013 were $595.1 million, a decrease of $58.3 million, or 8.9%, from $653.4
million in fiscal 2012. The decline in meeting fees was driven primarily by a 9.4% decline in NACO meeting paid
weeks from 66.0 million in fiscal 2012 to 59.7 million in fiscal 2013. The decline in meeting paid weeks primarily
resulted from the lower meetings active base at the beginning of fiscal 2013 versus the beginning of fiscal 2012 as well
as by lower enrollments in fiscal 2013 versus the prior year. Lower enrollments in the United States in fiscal 2013 were
driven by difficulty in attracting members into our brand. Although we introduced our new Weight Watchers 360° plan
in December 2012, this new program was not as effective in driving consumer trial as our PointsPlus innovation.
Partially offsetting the decline in NACO meeting fees was a 0.6% increase in meeting fees per paid week in fiscal 2013
as compared to the prior year. This increase in meeting fees per paid week was driven in part by a 2011 US price
increase for new members, the impact of which was more significant in fiscal 2013 due to the cycling of new members
paying this higher price throughout 2012. In addition, this increase in meeting fees per paid week was driven by a
discounted offer in the United States in the Spring of fiscal 2012 that was not repeated until the Fall of fiscal 2013, and
was less impactful in fiscal 2013. In fiscal 2013, NACO attendance decreased 14.7% to 27.2 million from 31.9 million
in fiscal 2012. The Company completed seven franchise acquisitions in NACO in fiscal 2013 as compared to three
franchise acquisitions in the second half of fiscal 2012. Franchise acquisitions benefited NACO meeting fees by 2.2%
and NACO meeting paid weeks by 1.7% in fiscal 2013, but had a de minimis impact on NACO meeting fees and
volumes in fiscal 2012.
International meeting fees in fiscal 2013 were $256.5 million, a decrease of $25.0 million, or 8.9%, from
$281.5 million in the prior year. Excluding the impact of foreign currency, which increased international meeting
fees for fiscal 2013 by $0.8 million, international meeting fees declined by 9.2% in fiscal 2013 versus the prior
year. In fiscal 2013, the decline in meeting fees was driven by an 11.5% decline in international meeting paid
weeks in the year versus the prior year. Meeting paid weeks performance in fiscal 2013 was driven by declines in
enrollments in most of our international markets in the year versus the prior year. Partially offsetting the decline
in international meeting fees was a 2.9% increase in meeting fees per paid week. This increase in meeting fees
per paid week was primarily driven by the shift of volumes from the UK meetings business toward the
Continental Europe meetings business where a meeting fee per paid week is priced higher. In addition, a UK
price increase in the third quarter of fiscal 2012 for all members also contributed to the increase in meeting fees
per paid week in fiscal 2013. International attendance decreased by 16.8% in fiscal 2013 versus the prior year.
In fiscal 2013, UK meeting fees decreased by 18.4% to $85.2 million from $104.4 million in fiscal 2012.
Excluding the impact of foreign currency, which decreased UK meeting fees for fiscal 2013 by $1.3 million, UK
meeting fees declined by 17.1% in fiscal 2013 versus the prior year. Fiscal 2013 meeting fees were driven lower
primarily by a decline of 19.2% in UK meeting paid weeks versus the prior year. Meeting paid weeks
performance in fiscal 2013 was driven by the lower meetings active base at the beginning of fiscal 2013 versus
the beginning of fiscal 2012 coupled with lower enrollments as compared to enrollment levels in the prior year.
In fiscal 2013, local competition in the United Kingdom primarily drove the decline in enrollments. Partially
offsetting the decline in UK meeting fees was an increase in meeting fees per paid week of 1.0%, or 2.6% on a
constant currency basis, versus the prior year. This increase in meeting fees per paid week was driven primarily
by a UK price increase in the third quarter of fiscal 2012 for all members. UK attendance decreased by 22.7% in
fiscal 2013 versus the prior year.
Meeting fees in Continental Europe in fiscal 2013 were $137.3 million, an increase of $1.3 million, or 1.0%,
from $136.0 million in the prior year. Excluding the impact of foreign currency, which increased Continental
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