Weight Watchers International Inc. (WTW, Financial) filed Quarterly Report for the period ended 2012-06-30.
Weight Watchers International, Inc. has a market cap of $2.47 billion; its shares were traded at around $47 with a P/E ratio of 10.9 and P/S ratio of 1.4. The dividend yield of Weight Watchers International, Inc. stocks is 1.6%. Weight Watchers International, Inc. had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated Weight Watchers International, Inc. the business predictability rank of 4.5-star.
Total cost of revenues in the second quarter of fiscal 2012 was $191.2 million, a decrease of $7.6 million, or 3.8%, from $198.9 million in the prior year period. Cost of revenues declined at a faster pace than revenues due to the shift of revenue towards the higher margin WeightWatchers.com business. Gross profit for the second quarter of fiscal 2012 of $293.5 million increased $6.4 million, or 2.2%, from $287.2 million in the second quarter of fiscal 2011. Gross margin in the second quarter of fiscal 2012 was 60.6%, as compared to 59.1% in the second quarter of fiscal 2011. Gross margin expansion was primarily the result of the shift in revenue towards the higher margin WeightWatchers.com business. This margin expansion was partially offset by a decline in the meetings business gross margin. This decline in the meetings business gross margin was primarily driven by the impact of higher costs associated with our future growth initiatives and lower average number of members per meeting.
Gross profit for the first six months of fiscal 2012 of $581.9 million increased $11.6 million, or 2.0%, from $570.3 million in the first six months of fiscal 2011. Operating income for the first six months of fiscal 2012 was $256.3 million, a decrease of $34.8 million, or 11.9%, from $291.1 million in the first six months of fiscal 2011. Excluding the impact of foreign currency, which negatively impacted operating income for the six months of fiscal 2012 by $3.6 million, operating income in the first six months of fiscal 2012 decreased by $31.2 million, or 10.7%, versus the prior year period. Our gross margin in the first six months of fiscal 2012 increased to 58.9% from 57.6% in the first six months of fiscal 2011, but operating income margin in the first six months of fiscal 2012 declined to 25.9% from 29.4% in the first six months of fiscal 2011. See Components of Expenses and Margins for additional details.
Other revenues, comprised primarily of licensing revenues, franchise royalties, revenues from the sale of products by mail and to our franchisees, and revenues from our publications, were $73.1 million for the first six months of fiscal 2012, a decrease of $6.6 million, or 8.3%, from $79.7 million for the first six months of fiscal 2011. Excluding the impact of foreign currency, which decreased other revenues for the first six months of fiscal 2012 by $1.1 million, other revenues were 6.9% lower in the first six months of fiscal 2012 compared to the prior year period. Franchise commissions and sales of products to our franchisees declined in the aggregate by 23.7%, or 22.8% on a constant currency basis, in the first six months of fiscal 2012 versus the prior year period. Our by mail product sales and revenues from our publications also declined in the aggregate by 15.0%, or 13.7% on a constant currency basis, in the first six months of fiscal 2012 versus the prior year period. These declines were primarily the result of comparing against the prior year period which had the benefit of the new program launches in our English-speaking markets in late fiscal 2010. Global licensing revenues increased by 5.9%, or 7.6% on a constant currency basis, in the first six months of fiscal 2012 versus the prior year period. A one-time
Total cost of revenues in the first six months of fiscal 2012 was $406.4 million, a decrease of $12.8 million, or 3.0%, from $419.2 million in the prior year period. Cost of revenues declined at a faster pace than revenues due to the shift of revenue towards the higher margin WeightWatchers.com business. Gross profit for the first six months of fiscal 2012 of $581.9 million increased $11.6 million, or 2.0%, from $570.3 million in the first six months of fiscal 2011. Gross margin in the first six months of fiscal 2012 was 58.9%, as compared to 57.6% in the first six months of fiscal 2011. Gross margin expansion was primarily the result of the shift of revenue towards the higher margin WeightWatchers.com business. This margin expansion was partially offset by a decline in the meetings business gross margin. This decline in the meetings business gross margin was primarily driven by the impact of higher costs associated with our future growth initiatives and lower average number of members per meeting.
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Weight Watchers International, Inc. has a market cap of $2.47 billion; its shares were traded at around $47 with a P/E ratio of 10.9 and P/S ratio of 1.4. The dividend yield of Weight Watchers International, Inc. stocks is 1.6%. Weight Watchers International, Inc. had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated Weight Watchers International, Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Other revenues, comprised primarily of licensing revenues, franchise royalties, revenues from the sale of products by mail and to our franchisees, and revenues from our publications, were $36.1 million for the second quarter of fiscal 2012, a decrease of $2.0 million, or 5.3%, from $38.2 million for the second quarter of fiscal 2011. Excluding the impact of foreign currency, which decreased other revenues for the second quarter of fiscal 2012 by $1.1 million, other revenues were 2.8% lower in the second quarter of fiscal 2012 compared to the prior year period. Franchise commissions and sales of products to our franchisees declined in the aggregate by 24.7%, or 23.3% on a constant currency basis, in the second quarter of fiscal 2012 versus the prior year period. Our by mail product sales and revenues from our publications also declined in the aggregate by 14.5%, or 11.9% on a constant currency basis, in the second quarter of fiscal 2012 versus the prior year period level. These declines were primarily the result of comparing against the prior year period which had the benefit of the new program launches in our English-speaking markets in late fiscal 2010. Global licensing revenues in the second quarter of fiscal 2012 increased by 12.8% versus the prior year period. A one-time termination fee in the second quarter of fiscal 2012 which was included in licensing revenues accounted for all the increase versus the prior year period. Excluding this one-time termination fee of $2.0 million from licensing revenues, global licensing revenues in the second quarter of fiscal 2012 declined 0.6% versus the prior year period.Total cost of revenues in the second quarter of fiscal 2012 was $191.2 million, a decrease of $7.6 million, or 3.8%, from $198.9 million in the prior year period. Cost of revenues declined at a faster pace than revenues due to the shift of revenue towards the higher margin WeightWatchers.com business. Gross profit for the second quarter of fiscal 2012 of $293.5 million increased $6.4 million, or 2.2%, from $287.2 million in the second quarter of fiscal 2011. Gross margin in the second quarter of fiscal 2012 was 60.6%, as compared to 59.1% in the second quarter of fiscal 2011. Gross margin expansion was primarily the result of the shift in revenue towards the higher margin WeightWatchers.com business. This margin expansion was partially offset by a decline in the meetings business gross margin. This decline in the meetings business gross margin was primarily driven by the impact of higher costs associated with our future growth initiatives and lower average number of members per meeting.
Gross profit for the first six months of fiscal 2012 of $581.9 million increased $11.6 million, or 2.0%, from $570.3 million in the first six months of fiscal 2011. Operating income for the first six months of fiscal 2012 was $256.3 million, a decrease of $34.8 million, or 11.9%, from $291.1 million in the first six months of fiscal 2011. Excluding the impact of foreign currency, which negatively impacted operating income for the six months of fiscal 2012 by $3.6 million, operating income in the first six months of fiscal 2012 decreased by $31.2 million, or 10.7%, versus the prior year period. Our gross margin in the first six months of fiscal 2012 increased to 58.9% from 57.6% in the first six months of fiscal 2011, but operating income margin in the first six months of fiscal 2012 declined to 25.9% from 29.4% in the first six months of fiscal 2011. See Components of Expenses and Margins for additional details.
Other revenues, comprised primarily of licensing revenues, franchise royalties, revenues from the sale of products by mail and to our franchisees, and revenues from our publications, were $73.1 million for the first six months of fiscal 2012, a decrease of $6.6 million, or 8.3%, from $79.7 million for the first six months of fiscal 2011. Excluding the impact of foreign currency, which decreased other revenues for the first six months of fiscal 2012 by $1.1 million, other revenues were 6.9% lower in the first six months of fiscal 2012 compared to the prior year period. Franchise commissions and sales of products to our franchisees declined in the aggregate by 23.7%, or 22.8% on a constant currency basis, in the first six months of fiscal 2012 versus the prior year period. Our by mail product sales and revenues from our publications also declined in the aggregate by 15.0%, or 13.7% on a constant currency basis, in the first six months of fiscal 2012 versus the prior year period. These declines were primarily the result of comparing against the prior year period which had the benefit of the new program launches in our English-speaking markets in late fiscal 2010. Global licensing revenues increased by 5.9%, or 7.6% on a constant currency basis, in the first six months of fiscal 2012 versus the prior year period. A one-time
Total cost of revenues in the first six months of fiscal 2012 was $406.4 million, a decrease of $12.8 million, or 3.0%, from $419.2 million in the prior year period. Cost of revenues declined at a faster pace than revenues due to the shift of revenue towards the higher margin WeightWatchers.com business. Gross profit for the first six months of fiscal 2012 of $581.9 million increased $11.6 million, or 2.0%, from $570.3 million in the first six months of fiscal 2011. Gross margin in the first six months of fiscal 2012 was 58.9%, as compared to 57.6% in the first six months of fiscal 2011. Gross margin expansion was primarily the result of the shift of revenue towards the higher margin WeightWatchers.com business. This margin expansion was partially offset by a decline in the meetings business gross margin. This decline in the meetings business gross margin was primarily driven by the impact of higher costs associated with our future growth initiatives and lower average number of members per meeting.
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