Weight Watchers International Inc. Reports Operating Results (10-Q)
Weight Watchers International Inc. has a market cap of $2.17 billion; its shares were traded at around $28.1 with a P/E ratio of 10.8 and P/S ratio of 1.5. The dividend yield of Weight Watchers International Inc. stocks is 2.5%. Weight Watchers International Inc. had an annual average earning growth of 12.7% over the past 10 years.WTW is in the portfolios of Wallace Weitz of Weitz Wallace R & Co, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations: Fiscal 2010 first quarter revenues were $388.0 million, a decrease of $2.6 million, or 0.7%, as compared to the prior year period. Net income attributable to the Company for fiscal 2010 first quarter was $44.6 million, a decrease of $2.7 million, or 5.7%, from $47.3 million for the prior year period.
The Company also recorded $3.1 million of restructuring charges for the first quarter of fiscal 2009 associated with the previously announced cost savings initiatives. Selling, general and administrative expenses were $2.0 million, or 4.6%, higher in the
Gross profit for the first quarter of fiscal 2010 of $211.7 million, which declined $0.5 million, or 0.2%, on a reported basis, would have increased $0.6 million, or 0.3%, from $211.1 million for the first quarter of fiscal 2009 after adjusting the first quarter of fiscal 2009 for the U.K. self-employment tax ruling. Despite a 0.7% decline in revenues, the Companys gross margin of 54.6%, which improved 30 basis points from 54.3% on a reported basis, would have increased by 50 basis points from an adjusted fiscal 2009 first quarter gross margin of 54.1% on the strength of our high margin WeightWatchers.com business, growth in our Continental Europe meeting business, and cost saving initiatives, all of which impacted 2010.
The first quarter of fiscal 2010 operating income of $91.4 million declined $2.4 million, or 2.6%, from $93.8 million in the first quarter of fiscal 2009. After adjusting the first fiscal quarter of 2009 for the adverse U.K. self-employment tax ruling and the impact of the restructuring charges, operating income would have declined by $4.5 million, or 4.7%, to $91.4 million from an adjusted amount of $95.9 million. Operating income margin of 23.6%, which declined by 40 basis points from 24.0% in the first quarter of fiscal 2009 on a reported basis, would have declined by 90 basis points from an adjusted fiscal 2009 first quarter operating income margin of 24.5%, largely the result of higher legal expenses along with a bad debt reserve for one of our European licensees.
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