Weight Watchers Net Revenues Up 21% in Q4
Full year 2007 net income was $201.2 million versus $209.8 million in 2006. As previously explained, the Company increased its debt level during the first quarter of 2007. As a result, interest expense in the full year 2007 was $109.3 million.
15/02/08 Weight Watchers International, Inc. has reported that for the fourth quarter of 2007, net revenues increased 21%, or $58.6 million, to $344.0 million. Fully diluted earnings per share in the fourth quarter of 2007 were $0.50 versus $0.45 in the prior year period. The prior year included a benefit of $0.06 per share resulting from a $6.3 million reversal of tax reserves. Excluding this benefit, fully diluted earnings per share increased by 28% to $0.50 from $0.39 in the prior year's fourth quarter.
Net income in the fourth quarter of 2007 was $39.8 million versus $44.3 million in the fourth quarter of 2006. As previously explained, the Company reversed a tax reserve in the fourth quarter of 2006. In addition, during the first quarter of 2007, the Company increased its debt level to finance its self-tender and repurchase of 19.1 million shares. As a result of these transactions, interest expense in the fourth quarter of 2007 was $26.7 million, up from $13.6 million in the fourth quarter of 2006, while fully diluted shares of the Company in the fourth quarter of 2007 decreased to 79.7 million shares from 98.1 million shares in the fourth quarter of 2006.
For the full year 2007, net revenues increased 19%, or $233.8 million, to $1,467.2 million. Fully diluted earnings per share were $2.48 in 2007 versus $2.11 in the prior year period. Excluding non-recurring items in both years, fully diluted earnings per share were up 21% to $2.50 as compared to $2.06 in the prior year period. These items consist of early extinguishment of debt expense in both years ($0.02 per share in 2007 and $0.01 per share in 2006) and a benefit associated with the reversal of tax reserves in 2006 ($0.06 per share).
Full year 2007 net income was $201.2 million versus $209.8 million in 2006. As previously explained, the Company increased its debt level during the first quarter of 2007. As a result, interest expense in the full year 2007 was $109.3 million, up from $49.5 million in the full year 2006, while fully diluted shares of the Company in the full year 2007 decreased 18%.
Full Year 2008 Guidance
The Company provided full year 2008 earnings guidance of between $2.80 and $3.00 per fully diluted share.
Commenting on the Company's full year 2007 results and 2008 guidance, David Kirchhoff, President and Chief Executive Officer, said, "During 2007, we delivered solid financial performance while taking the necessary steps to lay the foundation that will enable us to realize our long-term strategic goals. As I look to 2008, we again anticipate solid financial performance as we continue to strengthen our business and capitalize on our opportunities."
