WeightWatchers 2013 Annual Report Download - page 67

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The table below sets forth selected financial information for fiscal 2012 from our consolidated statements of
income for fiscal 2012 versus selected financial information for fiscal 2011 from our consolidated statements of
income for fiscal 2011, on both a reported basis and an adjusted basis. Results for fiscal 2012 are adjusted to
exclude the $4.1 million (after-tax) benefit related to the settlement of the previously disclosed UK
self-employment matter. See “Non-GAAP Financial Measures” above.
Summary of Selected Financial Data as Reported and Adjusted
(In millions, except per share amounts)
Fiscal
2012
Fiscal
2011
Increase/
(Decrease)
%
Change
Revenues ............................................. $1,839.4 $1,832.5 $ 6.9 0.4%
Cost of revenues (as adjusted)(1) ........................... 760.2 774.0 (13.8) (1.8%)
UK Self-employment settlement(1) ..................... (14.5) — (14.5)
Cost of revenues ....................................... 745.6 774.0 (28.4) (3.7%)
Gross Profit ................................... 1,093.8 1,058.5 35.3 3.3%
Gross Margin % ............................... 59.5% 57.8%
Marketing expenses ..................................... 353.7 302.9 50.8 16.8%
Selling, general & administrative expenses .................. 229.3 209.3 20.1 9.6%
Operating income .............................. 510.8 546.3 (35.5) (6.5%)
Operating Income Margin % ..................... 27.8% 29.8%
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.
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