WeightWatchers 2015 Annual Report Download - page 115

WEIGHT WATCHERS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Fiscal Quarters Ended
March 29,
2014
June 28,
2014
September
27, 2014
January 3,
2015
Fiscal year ended January 3, 2015
Revenues, net ........................................
Gross profit .........................................
$409,358
222,900
$397,547
225,814
$345,184
187,567
$327,827
166,270
Operating income .................................... 51,053 114,564 91,394 42,303
Net income attributable to the Company ................... 21,531 54,002 37,892 4,362
Basic earnings per share ............................... $ 0.38 $ 0.95 $ 0.67 $ 0.08
Diluted earnings per share .............................. $ 0.38 $ 0.95 $ 0.67 $ 0.08
Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum
of the quarterly EPS amounts may not agree to the total for the year.
As discussed in further detail in Note 19, the Company recorded restructuring charges of $5,761
($3,514 after tax), $232 ($142 after tax), $1,081 ($660 after tax) and $1,338 ($815 after tax) during the first,
second, third and fourth quarters of fiscal 2015, respectively, in connection with employee termination benefit
costs associated with its previously disclosed cost-savings initiative plan to restructure its organization, reducing
gross profit, operating income, net income attributable to the Company and to EPS all four quarters of fiscal
2015. The Company recorded restructuring charges of $3,656 ($2,235 after tax), $6,498 ($3,964 after tax),
$713 ($430 after tax) and $973 ($593 after tax) during the first, second, third and fourth quarters of fiscal 2014,
respectively, in connection with employee termination benefit costs associated with its previously disclosed cost-
savings initiative plan to restructure its organization, reducing gross profit, operating income, net income
attributable to the Company and EPS all four quarters of fiscal 2014.
As discussed in further detail in Note 3, operating income, net income and EPS during the fourth quarter of
fiscal 2015 were impacted by the Company recording expenses of $13,593 ($8,292 after tax and $0.13 per fully
diluted share) in connection with the Winfrey Transaction in the fourth quarter of fiscal 2015.
As discussed in further detail in Note 7, net income and EPS were impacted by a gain on the early
extinguishment of debt of $4,749 ($2,897 after tax), and $6,727 ($4,103 after tax), or $0.05 and $0.07 per fully
diluted share, during the first and second quarters of fiscal 2015, respectively.
As discussed in Note 1, the Company identified and recorded out-of-period adjustments related to
immaterial errors in prior period financial statements that impacted net income attributable to the Company by
$420 and $410 for the second and fourth quarter of fiscal 2015, respectively.
As discussed in further detail in Note 4, in the first quarter of fiscal 2014, net income and EPS were
impacted by a gain of $10,540 ($6,396 after tax), or $0.11 per fully diluted share, recognized in connection with
the Brazil acquisition due to an adjustment of the Company’s previously held equity interest to fair value offset
by a charge associated with the settlement of the royalty-free arrangement of the Brazilian partnership.
In the second quarter of fiscal 2014, net income and EPS were impacted by a $2,350, or $0.04 per fully
diluted share, net tax benefit related to an intercompany loan write-off in connection with the closure of our
China business partially offset by the recognition of a valuation allowance related to tax benefits for foreign
losses that are not expected to be realized.
F-40