WeightWatchers 2015 Annual Report Download - page 57

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consolidated statements of net income for fiscal 2014 versus selected financial information for fiscal 2013 from
our consolidated statements of net income for fiscal 2013.
Summary of Selected Financial Data
(In millions, except per share amounts)
Fiscal
2014
Fiscal
2013
Increase/
(Decrease)
%
Change
Revenues, net ........................................... $1,479.9 $1,724.1 $(244.2) (14.2%)
Cost of revenues ......................................... 677.4 723.0 (45.6) (6.3%)
Gross profit ......................................... 802.6 1,001.1 (198.5) (19.8%)
Gross Margin % ..................................... 54.2% 58.1%
Marketing expenses ...................................... 262.3 295.6 (33.3) (11.3%)
Selling, general & administrative expenses .................... 241.0 247.7 (6.7) (2.7%)
Operating income .................................... 299.3 457.8 (158.4) (34.6%)
Operating Income Margin % ........................... 20.2% 26.6%
Interest expense ......................................... 123.0 103.1 19.9 19.3%
Other expense, net ....................................... 3.2 0.6 2.6 100.0%
Gain on Brazil acquisition ................................. (10.5) — (10.5) —
Early extinguishment of debt ............................... — 21.7 (21.7) (100.0%)
Income before income taxes ............................ 183.7 332.4 (148.6) (44.7%)
Provision for income taxes ................................. 65.9 129.6 (63.7) (49.1%)
Net income ......................................... 117.7 202.7 (85.0) (41.9%)
Net income attributable to the noncontrolling interest ............ 0.1 — 0.1 —
Net income attributable to Weight Watchers International,
Inc. ............................................. $ 117.8 $ 202.7 $ (85.0) (41.9%)
Weighted average diluted shares outstanding .................. 56.7 56.4 0.3 0.6%
Diluted Earnings Per Share ................................ $ 2.08 $ 3.60 $ (1.52) (42.2%)
Note: Totals may not sum due to rounding.
Certain results for fiscal 2014 are adjusted to exclude the $11.8 million impact of charges from the
previously disclosed 2014 restructuring plan, $10.5 million related to the gain on the Brazil acquisition and the
$2.4 million 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. See “Non-GAAP Financial Measures” above. The table below sets forth a
reconciliation of certain of those components of our selected financial data for the fiscal year ended January 3,
2015 which have been adjusted.
(in millions, except per share amounts)
Gross
Profit
Gross
Profit
Margin
Operating
Income
Operating
Income
Margin
Net Income
Attributable to
Company
Diluted
EPS
Fiscal 2014 ............................. $802.6 54.2% $299.3 20.2% $117.8 $ 2.08
Adjustments to Reported Amounts(1)
2014 Restructuring charges(1) ........... 4.6 11.8 7.2 0.13
Gain on Brazil acquisition(1) ............ — — (6.4) (0.11)
Tax benefit, net(1) .................... — — (2.4) (0.04)
Total Adjustments ................ 4.6 11.8 (1.5) 0.03
Fiscal 2014, as adjusted(1) ................. $807.2 54.5% $311.1 21.0% $116.3 $ 2.05
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