WeightWatchers 2013 Annual Report Download - page 70

International meeting fees in fiscal 2012 were $281.5 million, a decrease of $22.0 million, or 7.2%, from $303.5
million in the prior year. Excluding the impact of foreign currency, which decreased international meeting fees for
fiscal 2012 by $11.6 million, international meeting fees declined by 3.4% in fiscal 2012 versus the prior year. In fiscal
2012, the decline in meeting fees was driven by a 4.9% decline in international meeting paid weeks in the year versus
the prior year. Meeting paid weeks performance in fiscal 2012 was driven by declines in enrollments in our
international English-speaking markets in the year versus the prior year, which were partially offset by enrollment
growth in Continental Europe. International attendance decreased by 10.5% in fiscal 2012 versus the prior year.
In fiscal 2012, UK meeting fees decreased by 11.7% to $104.4 million from $118.3 million in fiscal 2011.
Excluding the impact of foreign currency, which decreased UK meeting fees for fiscal 2012 by $1.5 million, UK
meeting fees declined by 10.5% in fiscal 2012 versus the prior year. Fiscal 2012 meeting fees were driven lower
primarily by a decline of 11.3% in UK meeting paid weeks versus the prior year. Meeting paid weeks
performance in fiscal 2012 was driven by lower enrollments in the period as compared to the high enrollment
levels in the prior year. In addition, in fiscal 2012, the United Kingdom introduced an advertising campaign that
was ineffective in driving enrollment growth. Weak macro-economic trends in the United Kingdom also
contributed to the decline in enrollments. However, the impact of enrollments on meeting paid weeks was
minimized by the higher meeting membership base at the beginning of fiscal 2012 versus the beginning of fiscal
2011. UK attendance decreased by 16.5% in fiscal 2012 versus the prior year.
Meeting fees in Continental Europe were $136.0 million in both fiscal 2012 and fiscal 2011. Excluding the impact
of foreign currency, which decreased Continental European meeting fees in fiscal 2012 by $10.4 million, Continental
European meeting fees increased by 7.6% in fiscal 2012 as compared to the prior year. The increase in meeting fees on
a constant currency basis was driven by an increase of 9.2% in Continental European meeting paid weeks in fiscal
2012 versus the prior year. The increase in meeting paid weeks was driven by higher enrollments in fiscal 2012 as
compared to the prior year. These higher enrollments were the result of effective new marketing strategies in this
region. In Continental Europe, attendance increased by 3.3% in fiscal 2012 versus the prior year.
In-Meeting Product Sales
Global in-meeting product sales for fiscal 2012 were $253.2 million, a decrease of $28.6 million, or 10.1%,
from $281.8 million in fiscal 2011. Excluding the impact of foreign currency, which decreased in-meeting
product sales for fiscal 2012 by $4.4 million, global in-meeting product sales in fiscal 2012 declined 8.6% versus
the prior year. This decrease resulted primarily from an 11.0% decline in global meeting attendance in fiscal
2012 versus the prior year. Slightly offsetting this decline was an increase in product sales per attendee in fiscal
2012 versus the prior year. On a per attendee basis, in fiscal 2012 global in-meeting product sales increased
1.0%, or 2.8% on a constant currency basis, versus the prior year. This increase in in-meeting product sales per
attendee in fiscal 2012 was driven by very strong per attendee sales of consumables and new products, including
ActiveLink, in NACO and consumables in the United Kingdom in the fourth quarter of fiscal 2012, which more
than offset a weak 2012 first nine months. This weakness was primarily the result of cycling against abnormally
strong first quarter fiscal 2011 sales of enrollment products in connection with the launch of the new programs in
our English-speaking markets in late fiscal 2010.
In NACO, fiscal 2012 in-meeting product sales of $145.9 million decreased by $12.0 million, or 7.6%,
versus the prior year. This decrease resulted primarily from an 11.4% attendance decline in fiscal 2012 as
compared to the prior year. In-meeting product sales per attendee increased by 4.2% in fiscal 2012 versus the
prior year as strong fourth quarter fiscal 2012 sales of consumables and new products, including ActiveLink,
offset the decline in sales of enrollment products earlier in the year.
International in-meeting product sales were $107.3 million in fiscal 2012, a decrease of 13.4%, or 9.9% on a
constant currency basis, versus the prior year. This decrease was driven primarily by an attendance decline of
10.5% in fiscal 2012 as compared to fiscal 2011, which was largely driven by the United Kingdom. In-meeting
product sales per attendee in fiscal 2012 declined by 3.2%, but increased by 0.6% on a constant currency basis, as
compared to the prior year.
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