WW International, Inc. (NASDAQ: WW) (“WeightWatchers,” “WW,” or the
“Company”) today announced its results for the first quarter of
fiscal 2023.
“Our progress so far in 2023, including our acquisition of
Sequence, further increases my confidence that we will return to a
growth trajectory,” said Sima Sistani, the Company’s CEO. “We
expect to end 2023 with total subscribers approaching 3.6 million,
including 3.5 million WeightWatchers subscribers. The last time the
Company ended a year with flat or higher subscribers year-over-year
was 2020, so this will be a notable achievement and testament to
the work our teams are delivering in enhancing our product
experience and acquisition channels.”
“I am thrilled that today we announced that Heather Stark has
been appointed our Chief Financial Officer. Heather has served in
the interim position since December 2022. She has successfully
navigated our teams through the annual planning and budgeting
process, our organizational and real estate restructuring, and
notably, the acquisition of Sequence. Heather is an invaluable
partner to me and I look forward to continuing to work with her in
the CFO role,” continued Sistani.
“The Q1 outperformance in subscribers translated into above
forecast revenue, and combined with greater cost discipline, flowed
into adjusted operating income results ahead of our expectations,”
said Heather Stark, the Company’s CFO. “We expect performance
trends to improve through the year as we benefit from our
data-informed approach to member acquisition, increased operating
efficiency, and an enhanced member experience following upcoming
launches in our product roadmap. With a leaner, more agile
organization, we are improving our operating model to drive
profitable growth.”
“I am honored to be taking on the Chief Financial Officer
position at WeightWatchers,” continued Stark. “It is rare to work
at a company that positively impacts the lives of millions in such
a personal and important way. I look forward to being part of the
next stage of the Company’s transformation and partnering with Sima
and the leadership team to shape the future of our member
experience, operating model, and financial trajectory.”
Q1 2023 Consolidated Results
|
|
|
|
|
|
|
|
|
|
|
% Change |
|
Three Months Ended |
|
|
|
|
Adjusted for |
|
April 1, |
|
April 2, |
|
|
|
|
Constant |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
Currency(1) |
(in millions except percentages and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription Revenues,
net |
$ |
211.0 |
|
|
$ |
257.0 |
|
|
(17.9 |
%) |
|
(16.2 |
%) |
Product Sales and Other,
net |
|
30.9 |
|
|
|
40.8 |
|
|
(24.3 |
%) |
|
(23.0 |
%) |
Revenues,
net |
$ |
241.9 |
|
|
$ |
297.8 |
|
|
(18.8 |
%) |
|
(17.1 |
%) |
Gross
Profit |
$ |
119.5 |
|
|
$ |
180.1 |
|
|
(33.6 |
%) |
|
(31.8 |
%) |
Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Restructuring Charges(2) |
|
18.6 |
|
|
|
(0.1 |
) |
|
|
|
|
|
|
Adjusted Gross
Profit(1) |
$ |
138.1 |
|
|
$ |
180.0 |
|
|
(23.3 |
%) |
|
(21.4 |
%) |
Operating (Loss)
Income |
($ |
28.6 |
) |
|
$ |
9.0 |
|
|
(418.7 |
%) |
|
(412.1 |
%) |
Non-GAAP Adjustments(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Restructuring Charges(2) |
|
22.7 |
|
|
|
0.1 |
|
|
|
|
|
|
|
Adjusted Operating
(Loss) Income(1) |
($ |
5.9 |
) |
|
$ |
9.1 |
|
|
(165.0 |
%) |
|
(158.5 |
%) |
Net Loss |
($ |
118.7 |
) |
|
($ |
8.2 |
) |
|
(100.0%)* |
|
|
(100.0%)* |
|
EPS |
($ |
1.68 |
) |
|
($ |
0.12 |
) |
|
(100.0%)* |
|
|
(100.0%)* |
|
Total Paid
Weeks |
|
51.0 |
|
|
|
58.9 |
|
|
(13.5 |
%) |
|
N/A |
|
Digital(3) Paid Weeks |
|
40.8 |
|
|
|
49.2 |
|
|
(17.1 |
%) |
|
N/A |
|
Workshops + Digital(4) Paid Weeks |
|
10.2 |
|
|
|
9.7 |
|
|
4.5 |
% |
|
N/A |
|
End of Period
Subscribers(5) |
|
4.0 |
|
|
|
4.5 |
|
|
(11.5 |
%) |
|
N/A |
|
Digital Subscribers |
|
3.3 |
|
|
|
3.8 |
|
|
(15.0 |
%) |
|
N/A |
|
Workshops + Digital Subscribers |
|
0.8 |
|
|
|
0.7 |
|
|
6.8 |
% |
|
N/A |
|
|
___________________________________Note: Totals may not sum due
to rounding.
*Note: Percentage in
excess of 100.0%. |
(1) |
See “Reconciliation of Non-GAAP Financial Measures” attached to
this release for further detail on adjustments to GAAP financial
measures. |
(2) |
See “Reconciliation of Non-GAAP
Financial Measures” attached to this release for further detail on
the Company’s previously disclosed 2023, 2022, 2021, and 2020
restructuring plans, and the reversal of certain of the charges
associated therewith. |
(3) |
“Digital” refers to providing
subscriptions to the Company’s digital product offerings, which
formerly included Digital 360 (as applicable). |
(4) |
“Workshops + Digital” refers to
providing unlimited access to the Company’s workshops combined with
the Company’s digital subscription product offerings to commitment
plan subscribers, including former Digital 360 members (as
applicable). It also formerly included the provision of access to
workshops for members who did not subscribe to commitment plans,
which included the Company’s “pay-as-you-go” members. |
(5) |
“Subscribers” refers to Digital
subscribers and Workshops + Digital subscribers who participate in
recurring bill programs in Company-owned operations. |
Q1 2023 Business and Financial Highlights
- End of Period Subscribers in Q1 2023 were down
11.5% versus the prior year period, driven by declines in the
Digital business. Q1 2023 End of Period Digital Subscribers
decreased 15.0% versus the prior year period. Q1 2023 End of Period
Workshops + Digital Subscribers increased 6.8% versus the prior
year period, substantially benefitting from the transition of
former Digital 360 members from the Digital business to the
Workshops + Digital business during Q2 and Q3 2022, as previously
disclosed.
- Total Paid Weeks in Q1 2023 were down 13.5%
versus the prior year period, driven by declines in the Digital
business. Q1 2023 Digital Paid Weeks decreased 17.1% versus the
prior year period. Q1 2023 Workshops + Digital Paid Weeks increased
4.5% versus the prior year period, substantially benefitting from
the transition of former Digital 360 members from the Digital
business to the Workshops + Digital business during Q2 and Q3 2022,
as previously disclosed.
- Revenues in Q1 2023 were $241.9 million. On a
constant currency basis, Q1 2023 revenues decreased 17.1% versus
the prior year period.
- Subscription
Revenues in Q1 2023 were $211.0 million. On a
constant currency basis, these revenues decreased 16.2% versus the
prior year period.
- Product Sales and Other in Q1 2023 were $30.9
million. On a constant currency basis, these revenues decreased
23.0% versus the prior year period.
- Gross Profit in Q1 2023 was $119.5 million,
compared to $180.1 million in the prior year period.
Adjusted gross profit in Q1 2023, which excluded
the net impact of $18.6 million of restructuring charges, was
$138.1 million. Adjusted gross profit in Q1 2022, which excluded
the net impact of ($0.1) million of restructuring charges, was
$180.0 million.
- Gross Margin in Q1 2023 was 49.4%, as compared
to 60.5% in the prior year period. Adjusted gross
margin in Q1 2023 was 57.1%, down 335 basis points from an
adjusted gross margin of 60.5% in the prior year period, primarily
driven by a mix shift to the Workshops + Digital business, fixed
cost deleverage, and the accounting for subscription and consumer
product promotional bundles in the quarter as well as a 20 basis
point negative impact from foreign currency.
- Operating Loss in Q1 2023 was $28.6 million,
which included $3.2 million of transaction costs related to the
acquisition of Sequence, compared to operating income of $9.0
million in the prior year period. Adjusted operating
loss in Q1 2023, which excluded the net impact of $22.7
million of restructuring charges, was $5.9 million. Adjusted
operating income in Q1 2022, which excluded the net impact of $0.1
million of restructuring charges, was $9.1 million.
- Income Tax expense in Q1 2023 was $67.6
million, which reflected the impact of an unusually high negative
annual effective tax rate driven by a valuation allowance and small
pretax loss reflected in the Company’s full year fiscal 2023
guidance. In the prior year period, income tax was a benefit of
$1.8 million.
- Net Loss in Q1 2023 was $118.7 million
compared to net loss of $8.2 million in the prior year period.
- Diluted Net Loss per share in Q1 2023 was
$1.68 compared to diluted net loss per share of $0.12 in the prior
year period.
- Certain items affect year-over-year comparability.
- Q1 2023 Diluted Net Loss per share incorporated the negative
impact of $1.54 per diluted share in the aggregate due to the
following items:
- $0.24 per diluted share negative net impact of restructuring
charges.
- $1.30 per diluted share negative tax impact arising from an
unusually high negative annual effective tax rate as a result of a
valuation allowance and small pretax loss reflected in the
Company’s full year fiscal 2023 guidance, mentioned above.
- Q1 2022 Net Loss was negatively impacted by $0.1
million, resulting in a de minimis per share impact, due to
the net impact of restructuring charges.
Other Items
- Cash balance as of April 1, 2023 was $140.8
million. On that same date, the Company had no outstanding
borrowings under its revolving credit facility.
- 2023 Restructuring Plan: In connection with
the previously announced 2023 restructuring plan, the Company
recorded aggregate restructuring charges of approximately $23.0
million in Q1 2023. The Company expects to record up to $10.0
million of additional aggregate restructuring charges during the
remainder of fiscal 2023.
- Sequence Acquisition: As previously announced,
on April 10, 2023, WW completed its acquisition of Weekend Health,
Inc., d/b/a Sequence, a subscription telehealth platform offering
access to healthcare providers specializing in chronic weight
management.
- New Segment Reporting: As previously
disclosed, effective the first day of fiscal 2023, the Company
realigned its organizational structure and resources to more
closely align with its strategic priorities and centralized the
global management of certain functions and systems. As a result of
the change in its organizational structure, the Company now has two
reportable segments, consisting of North America and International.
“North America” refers to the Company’s North American
Company-owned operations and franchise revenues and related costs.
“International” refers to the Company’s Continental Europe
Company-owned operations, United Kingdom Company-owned operations,
and Australia, New Zealand and emerging markets operations.
Full Year Fiscal 2023 Guidance
The Company is providing the following full year
fiscal 2023 guidance:
- Revenues are expected to be in the range of $910.0 million to
$930.0 million.
- Operating income is expected to be in the range of $48.0
million to $60.0 million. Adjusted operating income, which excludes
the anticipated net impact of restructuring charges, is expected to
be in the range of $80.0 million to $85.0 million.
First Quarter 2023 Conference Call and
WebcastThe Company has scheduled a conference call today
at 5:00 p.m. ET. During the conference call, Sima Sistani, Chief
Executive Officer, and Heather Stark, Chief Financial Officer, will
discuss the first quarter of fiscal 2023 results and answer
questions from the investment community.
The live webcast of the conference call will be available on the
Company’s corporate website, corporate.ww.com, in the Investors
section under Presentations and Events. Supplemental investor
materials will also be available in the same location prior to the
start of the webcast. A replay of the webcast will be available on
this site for approximately 90 days.
Statement regarding Non-GAAP Financial
MeasuresThe following provides information regarding
non-GAAP financial measures used in this earnings release and
today’s scheduled conference call:
To supplement the Company's consolidated results presented in
accordance with accounting principles generally accepted in the
United States (“GAAP”), the Company has disclosed non-GAAP
financial measures of operating results that exclude or adjust
certain items. Gross profit, gross margin, operating (loss) income,
operating (loss) income margin, and selling, general and
administrative expenses are discussed both as reported (on a GAAP
basis) and as adjusted (on a non-GAAP basis), as applicable, with
respect to (i) the first quarter of fiscal 2023 to exclude the net
impact of (a) charges associated with the Company’s previously
disclosed 2023 restructuring plan (the “2023 plan”), (b) charges
associated with the Company's previously disclosed 2022
restructuring plan (the “2022 plan”) or the reversal of certain of
the charges associated with the 2022 plan, as applicable, (c) the
reversal of certain of the charges associated with the Company's
previously disclosed 2021 organizational restructuring plan (the
“2021 plan”), and (d) the reversal of certain of the charges
associated with the Company's previously disclosed 2020
organizational restructuring plan (the “2020 plan”); and (ii) the
first quarter of fiscal 2022 to exclude (a) the net impact of (x)
charges associated with the 2021 plan and (y) the reversal of
certain of the charges associated with the 2020 plan or (b) the
impact of charges associated with the 2021 plan. We generally refer
to such non-GAAP measures as excluding or adjusting for the net
impact of restructuring charges or the impact of restructuring
charges, as applicable. The Company also presents in the
attachments to this release the non-GAAP financial measures
earnings before interest, taxes, depreciation, amortization and
stock-based compensation (“EBITDAS”); earnings before interest,
taxes, depreciation, amortization, stock-based compensation,
franchise rights acquired and goodwill impairments, and
restructuring charges (including the net impact where applicable)
(“Adjusted EBITDAS”); total debt less unamortized deferred
financing costs, unamortized debt discount and cash on hand (i.e.,
net debt); and a net debt/Adjusted EBITDAS ratio. In addition, the
Company presents certain of its financial results on a constant
currency basis in addition to GAAP results. Constant currency
information compares results between periods as if exchange rates
had remained constant period-over-period. The Company calculates
constant currency by calculating current-year results using
prior-year foreign currency exchange rates.
Management believes these non-GAAP financial measures provide
useful supplemental information for its and investors' evaluation
of the Company's business performance and are useful for
period-over-period comparisons of the performance of the Company's
business. While management believes that these non-GAAP financial
measures are useful in evaluating the Company's business, this
information should be considered as supplemental in nature and
should not be considered in isolation or as a substitute for the
related financial information prepared in accordance with GAAP. In
addition, these non-GAAP financial measures may not be the same as
similarly entitled measures reported by other companies. See
"Reconciliation of Non-GAAP Financial Measures" attached to this
release and reconciliations, if any, included elsewhere in this
release for a reconciliation of the non-GAAP financial measures to
the most directly comparable GAAP measures.
About WW International, Inc. WeightWatchers is
a human-centric technology company powered by our proven,
science-based, clinically effective weight loss and weight
management program. For six decades, we have inspired millions of
people to adopt healthy habits for real life. We combine technology
and community to help members reach and sustain their goals on our
program. To learn more about the WeightWatchers approach to healthy
living, please visit ww.com. For more information about our global
business, visit our corporate website at corporate.ww.com.
This news release and any attachments include “forward-looking
statements,” within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including, in particular, any
guidance and any statements about the Company’s plans, strategies,
objectives, initiatives, roadmap and prospects. The Company
generally uses the words “may,” “will,” “could,” “expect,”
“anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and
similar expressions in this news release and any attachments to
identify forward-looking statements. The Company bases these
forward-looking statements on its current views with respect to
future events and financial performance. Actual results could
differ materially from those projected in the forward-looking
statements. These forward-looking statements are subject to risks,
uncertainties and assumptions, including, among other things: the
impact of the COVID-19 pandemic on the Company's business and on
the consumer environment and markets in which the Company operates;
competition from other weight management and wellness industry
participants or the development of more effective or more favorably
perceived weight management methods; the Company's failure to
continue to retain and grow its subscriber base; the Company's
ability to continue to develop new, innovative services and
products and enhance its existing services and products or the
failure of its services, products or brands to continue to appeal
to the market, or its ability to successfully expand into new
channels of distribution or respond to consumer trends or
sentiment; the ability to successfully implement strategic
initiatives; the Company's ability to transform its Workshops +
Digital business strategy to meet the evolving needs of its
members; the effectiveness and efficiency of the Company's
advertising and marketing programs, including the strength of the
Company's social media presence; the impact on the Company's
reputation of actions taken by its franchisees, licensees,
suppliers and other partners, including as a result of its
acquisition of Weekend Health, Inc., which is doing business as
Sequence (“Sequence”) (the “Acquisition”); the recognition of asset
impairment charges; the loss of key personnel, strategic partners
or consultants or failure to effectively manage and motivate the
Company's workforce; the Company's chief executive officer
transition; the inability to renew certain of the Company's
licenses, or the inability to do so on terms that are favorable to
the Company; the early termination by the Company of leases;
uncertainties related to a downturn in general economic conditions
or consumer confidence, including as a result of the existing
inflationary environment, the potential impact of political and
social unrest and instability in the banking system as a result of
several recent bank failures; the Company's ability to successfully
make acquisitions or enter into joint ventures or collaborations,
including its ability to successfully integrate, operate or realize
the anticipated benefits of such businesses, including with respect
to Sequence; the seasonal nature of the Company's principal
business; the impact of events that discourage or impede people
from gathering with others or impede accessing resources; the
Company's failure to maintain effective internal control over
financial reporting; the impact of the Company's substantial amount
of debt, debt service obligations and debt covenants, and its
exposure to variable rate indebtedness; the ability to generate
sufficient cash to service the Company's debt and satisfy its other
liquidity requirements; uncertainties regarding the satisfactory
operation of the Company's technology or systems; the impact of
data security breaches and other malicious acts or privacy
concerns, including the costs of compliance with evolving privacy
laws and regulations; the Company's ability to enforce its
intellectual property rights both domestically and internationally,
as well as the impact of its involvement in any claims related to
intellectual property rights; risks and uncertainties associated
with the Company's international operations, including regulatory,
economic, political, social, intellectual property, and foreign
currency risks, which risks may be exacerbated as a result of the
war in Ukraine; the outcomes of litigation or regulatory actions;
the impact of existing and future laws and regulations; risks
related to the Company's Acquisition, including risks that the
Acquisition may not achieve its intended results; risks related to
the Company's exposure to extensive and complex healthcare laws and
regulations as a result of the Acquisition; the possibility that
the interests of Artal Group S.A., the largest holder of the
Company's common stock and a shareholder with significant influence
over the Company, will conflict with the Company's interests or the
interests of other holders of the Company's common stock; the
impact that the sale of substantial amounts of the Company's common
stock by existing large shareholders, or the perception that such
sales could occur, could have on the market price of the Company's
common stock; and other risks and uncertainties, including those
detailed from time to time in the Company's periodic reports filed
with the United States Securities and Exchange Commission (the
“SEC”) (which are available on the SEC’s EDGAR database at
www.sec.gov and via the Company’s website at corporate.ww.com). You
should not put undue reliance on any forward-looking statements.
You should understand that many important factors, including those
discussed herein, could cause the Company’s results to differ
materially from those expressed or suggested in any forward-looking
statement. Except as required by law, the Company does not
undertake any obligation to update or revise these forward-looking
statements to reflect new information or events or circumstances
that occur after the date of this news release or to reflect the
occurrence of unanticipated events or otherwise. Readers are
advised to review the Company’s filings with the SEC (which are
available on the SEC’s EDGAR database at www.sec.gov and via the
Company’s website at corporate.ww.com).
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS AT |
(IN THOUSANDS) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
April 1, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
140,847 |
|
|
$ |
178,326 |
|
Receivables (net of allowances: April 1, 2023 - $1,023 and December
31, 2022 - $976) |
|
31,059 |
|
|
|
24,273 |
|
Inventories |
|
10,668 |
|
|
|
20,528 |
|
Prepaid income taxes |
|
15,337 |
|
|
|
19,447 |
|
Prepaid expenses and other current assets |
|
37,323 |
|
|
|
38,757 |
|
TOTAL CURRENT ASSETS |
|
235,234 |
|
|
|
281,331 |
|
Property and equipment, net |
|
25,612 |
|
|
|
28,229 |
|
Operating lease assets |
|
68,962 |
|
|
|
75,696 |
|
Franchise rights acquired |
|
386,608 |
|
|
|
386,745 |
|
Goodwill |
|
156,211 |
|
|
|
155,998 |
|
Other intangible assets, net |
|
64,178 |
|
|
|
63,306 |
|
Deferred income taxes |
|
23,006 |
|
|
|
22,246 |
|
Other noncurrent assets |
|
13,917 |
|
|
|
14,879 |
|
TOTAL ASSETS |
$ |
973,728 |
|
|
$ |
1,028,430 |
|
LIABILITIES AND TOTAL DEFICIT |
|
|
|
CURRENT LIABILITIES |
|
|
|
Portion of operating lease liabilities due within one year |
$ |
15,464 |
|
|
$ |
17,955 |
|
Accounts payable |
|
21,697 |
|
|
|
18,890 |
|
Salaries and wages payable |
|
64,041 |
|
|
|
72,577 |
|
Accrued marketing and advertising |
|
14,664 |
|
|
|
17,927 |
|
Accrued interest |
|
10,938 |
|
|
|
5,289 |
|
Other accrued liabilities |
|
42,288 |
|
|
|
30,118 |
|
Income taxes payable |
|
62,058 |
|
|
|
1,646 |
|
Deferred revenue |
|
35,716 |
|
|
|
32,156 |
|
TOTAL CURRENT LIABILITIES |
|
266,866 |
|
|
|
196,558 |
|
Long-term debt, net |
|
1,423,329 |
|
|
|
1,422,284 |
|
Long-term operating lease liabilities |
|
63,783 |
|
|
|
68,099 |
|
Deferred income taxes |
|
19,940 |
|
|
|
23,119 |
|
Other |
|
2,079 |
|
|
|
2,185 |
|
TOTAL LIABILITIES |
|
1,775,997 |
|
|
|
1,712,245 |
|
|
|
|
|
TOTAL DEFICIT |
|
|
|
Common stock, $0 par value; 1,000,000 shares authorized; 122,052
shares issued at April 1, 2023 and 122,052 shares issued at
December 31, 2022 |
|
0 |
|
|
|
0 |
|
Treasury stock, at cost, 51,418 shares at April 1, 2023 and 51,496
shares at December 31, 2022 |
|
(3,093,237 |
) |
|
|
(3,097,304 |
) |
Retained earnings |
|
2,298,701 |
|
|
|
2,418,959 |
|
Accumulated other comprehensive loss |
|
(7,733 |
) |
|
|
(5,470 |
) |
TOTAL DEFICIT |
|
(802,269 |
) |
|
|
(683,815 |
) |
TOTAL LIABILITIES AND TOTAL DEFICIT |
$ |
973,728 |
|
|
$ |
1,028,430 |
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
April 1, |
|
April 2, |
|
|
|
2023 |
|
|
|
2022 |
|
Subscription revenues, net (1) |
$ |
211,032 |
|
|
$ |
256,985 |
|
Product sales and other, net (2) |
|
30,863 |
|
|
|
40,776 |
|
|
Revenues, net |
|
241,895 |
|
|
|
297,761 |
|
Cost of subscription revenues (3) |
|
94,897 |
|
|
|
86,041 |
|
Cost of product sales and other |
|
27,487 |
|
|
|
31,622 |
|
|
Cost of revenues |
|
122,384 |
|
|
|
117,663 |
|
|
Gross profit |
|
119,511 |
|
|
|
180,098 |
|
Marketing expenses |
|
88,234 |
|
|
|
107,570 |
|
Selling, general and administrative expenses |
|
59,860 |
|
|
|
63,558 |
|
|
Operating (loss) income |
|
(28,583 |
) |
|
|
8,970 |
|
Interest expense |
|
22,846 |
|
|
|
18,671 |
|
Other (income) expense, net |
|
(330 |
) |
|
|
344 |
|
|
Loss before income taxes |
|
(51,099 |
) |
|
|
(10,045 |
) |
Provision for (benefit from) income taxes |
|
67,580 |
|
|
|
(1,802 |
) |
|
Net loss |
$ |
(118,679 |
) |
|
$ |
(8,243 |
) |
|
|
|
|
|
Net loss per share |
|
|
|
|
Basic |
$ |
(1.68 |
) |
|
$ |
(0.12 |
) |
|
Diluted |
$ |
(1.68 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
Basic |
|
70,596 |
|
|
|
70,086 |
|
|
Diluted |
|
70,596 |
|
|
|
70,086 |
|
|
|
|
|
|
______ |
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
(1) Consists of net “Digital Subscription Revenues” and net
“Workshops + Digital Fees”. "Digital Subscription Revenues" consist
of the fees associated with subscriptions for the Company’s Digital
offerings, which formerly included Digital 360 (as applicable).
"Workshops + Digital Fees" consist of the fees associated with the
Company's subscription plans for combined workshops and digital
offerings and other payment arrangements for access to
workshops. |
(2) Consists of sales of consumer products via e-commerce, in
studios and through the Company's trusted partners, revenues from
licensing and publishing, other revenues, and franchise fees with
respect to commitment plans and royalties. |
(3) Consists of cost of revenues and operating expenses for the
Company's Digital and Workshops + Digital services. |
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(IN THOUSANDS) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
April 1, |
|
April 2, |
|
|
2023 |
|
|
|
2022 |
|
Operating activities: |
|
|
|
Net loss |
$ |
(118,679 |
) |
|
$ |
(8,243 |
) |
Adjustments to reconcile net loss to cash used for operating
activities: |
|
|
|
Depreciation and amortization |
|
11,989 |
|
|
|
10,759 |
|
Amortization of deferred financing costs and debt discount |
|
1,254 |
|
|
|
1,254 |
|
Impairment of intangible and long-lived assets |
|
171 |
|
|
|
42 |
|
Share-based compensation expense |
|
2,669 |
|
|
|
4,700 |
|
Deferred tax benefit |
|
(3,110 |
) |
|
|
(6,693 |
) |
Allowance for doubtful accounts |
|
(74 |
) |
|
|
72 |
|
Reserve for inventory obsolescence |
|
2,037 |
|
|
|
1,254 |
|
Foreign currency exchange rate (gain) loss |
|
(389 |
) |
|
|
623 |
|
Changes in cash due to: |
|
|
|
Receivables |
|
(5,961 |
) |
|
|
(10,596 |
) |
Inventories |
|
7,994 |
|
|
|
(120 |
) |
Prepaid expenses |
|
4,937 |
|
|
|
(4,106 |
) |
Accounts payable |
|
2,728 |
|
|
|
7,118 |
|
Accrued liabilities |
|
3,188 |
|
|
|
(5,268 |
) |
Deferred revenue |
|
3,405 |
|
|
|
3,560 |
|
Other long term assets and liabilities, net |
|
734 |
|
|
|
(3,003 |
) |
Income taxes |
|
60,385 |
|
|
|
(1,807 |
) |
Cash used for operating activities |
|
(26,722 |
) |
|
|
(10,454 |
) |
Investing activities: |
|
|
|
Capital expenditures |
|
(990 |
) |
|
|
(323 |
) |
Capitalized software expenditures |
|
(9,350 |
) |
|
|
(8,905 |
) |
Cash paid for acquisitions |
|
— |
|
|
|
(4,350 |
) |
Other items, net |
|
(8 |
) |
|
|
(11 |
) |
Cash used for investing activities |
|
(10,348 |
) |
|
|
(13,589 |
) |
Financing activities: |
|
|
|
Taxes paid related to net share settlement of equity awards |
|
(205 |
) |
|
|
(374 |
) |
Proceeds from stock options exercised |
|
7 |
|
|
|
— |
|
Cash paid for acquisitions |
|
(500 |
) |
|
|
— |
|
Other items, net |
|
(26 |
) |
|
|
(35 |
) |
Cash used for financing activities |
|
(724 |
) |
|
|
(409 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
315 |
|
|
|
(1,702 |
) |
Net decrease in cash and cash equivalents |
|
(37,479 |
) |
|
|
(26,154 |
) |
Cash and cash equivalents, beginning of period |
|
178,326 |
|
|
|
153,794 |
|
Cash and cash equivalents, end of period |
$ |
140,847 |
|
|
$ |
127,640 |
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
OPERATIONAL STATISTICS |
(IN THOUSANDS, EXCEPT PERCENTAGES) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
April 1, |
|
April 2, |
|
Variance |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Digital Paid Weeks (1) |
|
|
|
|
|
North America |
26,136 |
|
31,414 |
|
(16.8 |
%) |
International |
14,665 |
|
17,791 |
|
(17.6 |
%) |
Total Digital Paid Weeks |
40,801 |
|
49,205 |
|
(17.1 |
%) |
|
|
|
|
|
|
Workshops + Digital Paid Weeks
(1) |
|
|
|
|
|
North America |
7,657 |
|
7,269 |
|
5.3 |
% |
International |
2,494 |
|
2,448 |
|
1.9 |
% |
Total Workshops + Digital Paid Weeks |
10,151 |
|
9,717 |
|
4.5 |
% |
|
|
|
|
|
|
Total Paid Weeks (1) |
|
|
|
|
|
North America |
33,793 |
|
38,683 |
|
(12.6 |
%) |
International |
17,159 |
|
20,239 |
|
(15.2 |
%) |
Total Paid Weeks |
50,952 |
|
58,922 |
|
(13.5 |
%) |
|
|
|
|
|
|
End of Period Digital Subscribers
(2) |
|
|
|
|
|
North America |
2,090 |
|
2,451 |
|
(14.7 |
%) |
International |
1,164 |
|
1,376 |
|
(15.4 |
%) |
Total End of Period Digital Subscribers |
3,254 |
|
3,827 |
|
(15.0 |
%) |
|
|
|
|
|
|
End of Period Workshops + Digital Subscribers
(2) |
|
|
|
|
|
North America |
580 |
|
535 |
|
8.2 |
% |
International |
188 |
|
183 |
|
2.7 |
% |
Total End of Period Workshops + Digital Subscribers |
768 |
|
719 |
|
6.8 |
% |
|
|
|
|
|
|
Total End of Period Subscribers
(2) |
|
|
|
|
|
North America |
2,670 |
|
2,986 |
|
(10.6 |
%) |
International |
1,353 |
|
1,559 |
|
(13.2 |
%) |
Total End of Period Subscribers |
4,022 |
|
4,545 |
|
(11.5 |
%) |
|
|
|
|
|
|
________ |
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
(1) The “Paid Weeks” metric reports paid weeks by WW customers in
Company-owned operations for a given period as follows: (i)
“Digital Paid Weeks” is the total paid subscription weeks for the
Company’s digital subscription products, which formerly included
Digital 360 (as applicable); (ii) “Workshops + Digital Paid Weeks”
is the sum of total paid commitment plan weeks which include
workshops and digital offerings and formerly included total
“pay-as-you-go” weeks; and (iii) “Total Paid Weeks” is the sum of
Digital Paid Weeks and Workshops + Digital Paid Weeks. |
(2) The “End of Period Subscribers” metric reports WW subscribers
in Company-owned operations at a given period end as follows: (i)
“End of Period Digital Subscribers” is the total number of Digital,
including former Digital 360 (as applicable), subscribers; (ii)
“End of Period Workshops + Digital Subscribers” is the total number
of commitment plan subscribers that have access to combined
workshops and digital offerings; and (iii) “End of Period
Subscribers” is the sum of End of Period Digital Subscribers and
End of Period Workshops + Digital Subscribers. |
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(IN THOUSANDS, EXCEPT PERCENTAGES) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2023 Variance |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
Constant |
|
Q1 2023 |
|
Q1 2022 |
|
2023 |
|
Currency |
|
|
|
Currency |
|
Constant |
|
|
|
vs |
|
vs |
|
GAAP |
|
Adjustment |
|
Currency |
|
GAAP |
|
2022 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Company Revenues |
$ |
241,895 |
|
$ |
4,867 |
|
$ |
246,762 |
|
$ |
297,761 |
|
(18.8 |
%) |
|
(17.1 |
%) |
Consolidated Digital Subscription Revenues (1) |
$ |
149,344 |
|
$ |
3,373 |
|
$ |
152,717 |
|
$ |
191,482 |
|
(22.0 |
%) |
|
(20.2 |
%) |
Consolidated Workshops + Digital Fees (2) |
$ |
61,688 |
|
$ |
973 |
|
$ |
62,661 |
|
$ |
65,503 |
|
(5.8 |
%) |
|
(4.3 |
%) |
Consolidated Subscription Revenues (3) |
$ |
211,032 |
|
$ |
4,346 |
|
$ |
215,378 |
|
$ |
256,985 |
|
(17.9 |
%) |
|
(16.2 |
%) |
Consolidated Product Sales and Other (4) |
$ |
30,863 |
|
$ |
520 |
|
$ |
31,383 |
|
$ |
40,776 |
|
(24.3 |
%) |
|
(23.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
Digital Subscription Revenues (1) |
$ |
97,772 |
|
$ |
420 |
|
$ |
98,192 |
|
$ |
125,319 |
|
(22.0 |
%) |
|
(21.6 |
%) |
Workshops + Digital Fees (2) |
$ |
49,482 |
|
$ |
160 |
|
$ |
49,642 |
|
$ |
50,980 |
|
(2.9 |
%) |
|
(2.6 |
%) |
Subscription Revenues (3) |
$ |
147,254 |
|
$ |
579 |
|
$ |
147,833 |
|
$ |
176,299 |
|
(16.5 |
%) |
|
(16.1 |
%) |
Product Sales and Other (4) |
$ |
23,771 |
|
$ |
72 |
|
$ |
23,843 |
|
$ |
28,381 |
|
(16.2 |
%) |
|
(16.0 |
%) |
Total Revenues |
$ |
171,025 |
|
$ |
651 |
|
$ |
171,676 |
|
$ |
204,680 |
|
(16.4 |
%) |
|
(16.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
Digital Subscription Revenues (1) |
$ |
51,572 |
|
$ |
2,953 |
|
$ |
54,525 |
|
$ |
66,163 |
|
(22.1 |
%) |
|
(17.6 |
%) |
Workshops + Digital Fees (2) |
$ |
12,206 |
|
$ |
814 |
|
$ |
13,020 |
|
$ |
14,523 |
|
(16.0 |
%) |
|
(10.3 |
%) |
Subscription Revenues (3) |
$ |
63,778 |
|
$ |
3,767 |
|
$ |
67,545 |
|
$ |
80,686 |
|
(21.0 |
%) |
|
(16.3 |
%) |
Product Sales and Other (4) |
$ |
7,092 |
|
$ |
449 |
|
$ |
7,541 |
|
$ |
12,395 |
|
(42.8 |
%) |
|
(39.2 |
%) |
Total Revenues |
$ |
70,870 |
|
$ |
4,216 |
|
$ |
75,086 |
|
$ |
93,081 |
|
(23.9 |
%) |
|
(19.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
(1) “Digital Subscription Revenues” consist of the fees associated
with subscriptions for the Company’s Digital offerings, which
formerly included Digital 360 (as applicable). |
(2) “Workshops + Digital Fees” consist of the fees associated with
the Company's subscription plans for combined workshops and digital
offerings and other payment arrangements for access to
workshops. |
(3) “Subscription Revenues” equal “Digital Subscription Revenues"
plus “Workshops + Digital Fees”. |
(4) “Product Sales and Other” are sales of consumer products via
e-commerce, in studios and through the Company's trusted partners,
revenues from licensing and publishing, other revenues, and, in the
case of the consolidated financial results and North America
reportable segment, franchise fees with respect to commitment plans
and royalties. |
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(IN THOUSANDS, EXCEPT PERCENTAGES) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2023 Variance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Constant Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
Q1 2023 |
|
Q1 2022 |
|
|
|
Adjusted |
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
vs |
|
2023 |
|
vs |
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
Constant |
|
Constant |
|
|
|
|
|
|
|
|
|
|
|
vs |
|
2022 |
|
vs |
|
2022 |
|
|
GAAP |
|
Adjustment |
|
Adjusted |
|
Adjustment |
|
Currency |
|
Currency |
|
GAAP |
|
Adjustment |
|
Adjusted |
|
2022 |
|
Adjusted |
|
2022 |
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
$ |
119,511 |
|
$ |
18,618 |
|
(1) |
$ |
138,128 |
|
$ |
3,281 |
|
$ |
122,792 |
|
$ |
141,410 |
|
$ |
180,098 |
|
$ |
(92) |
|
(4) |
$ |
180,006 |
|
(33.6%) |
|
(23.3%) |
|
(31.8%) |
|
(21.4%) |
Gross Margin |
|
49.4% |
|
|
|
|
|
|
57.1% |
|
|
|
|
|
49.8% |
|
|
57.3% |
|
|
60.5% |
|
|
|
|
|
|
60.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
$ |
59,860 |
|
$ |
(4,042) |
|
(2) |
$ |
55,818 |
|
$ |
795 |
|
$ |
60,655 |
|
$ |
56,613 |
|
$ |
63,558 |
|
$ |
(241) |
|
(5) |
$ |
63,317 |
|
(5.8%) |
|
(11.8%) |
|
(4.6%) |
|
(10.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) Income |
$ |
(28,583) |
|
$ |
22,660 |
|
(3) |
$ |
(5,924) |
|
$ |
588 |
|
$ |
(27,995) |
|
$ |
(5,336) |
|
$ |
8,970 |
|
$ |
149 |
|
(6) |
$ |
9,119 |
|
(418.7%) |
|
(165.0%) |
|
(412.1%) |
|
(158.5%) |
Operating (Loss) Income Margin |
|
(11.8%) |
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(2.4%) |
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(11.3%) |
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(2.2%) |
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3.0% |
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3.1% |
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Note: Totals may not sum due to
rounding. |
(1) |
Excludes the net impact of $18,893 of charges associated with the
Company's previously disclosed 2023 restructuring plan, the
reversal of $263 of charges associated with the Company's
previously disclosed 2022 restructuring plan, the reversal of $7 of
charges associated with the Company's previously disclosed 2021
organizational restructuring plan and the reversal of $5 of charges
associated with the Company's previously disclosed 2020
organizational restructuring plan. |
(2) |
Excludes the impact of $3,739 of charges associated with the
Company's previously disclosed 2023 restructuring plan and $303 of
charges associated with the Company's previously disclosed 2022
restructuring plan. |
(3) |
Excludes the net impact of (w) $18,893 of charges and $3,739 of
charges associated with the Company's previously disclosed 2023
restructuring plan recorded to cost of subscription revenues and
selling, general and administrative expenses, respectively, (x) the
reversal of $263 of charges and $303 of charges associated with the
Company's previously disclosed 2022 restructuring plan recorded to
cost of subscription revenues and selling, general and
administrative expenses, respectively, (y) the reversal of $7 of
charges associated with the Company's previously disclosed 2021
organizational restructuring plan recorded to cost of subscription
revenues, and (z) the reversal of $5 of charges associated with the
Company's previously disclosed 2020 organizational restructuring
plan recorded to cost of subscription revenues. |
(4) |
Excludes the net impact of $24 of charges associated with the
Company's previously disclosed 2021 organizational restructuring
plan and the reversal of $116 of charges associated with the
Company's previously disclosed 2020 organizational restructuring
plan. |
(5) |
Excludes $241 of charges associated with the Company's previously
disclosed 2021 organizational restructuring plan. |
(6) |
Excludes the net impact of (i) $24 of charges and $241 of charges
associated with the Company's previously disclosed 2021
organizational restructuring plan recorded to cost of subscription
revenues and selling, general and administrative expenses,
respectively, and (ii) the reversal of $116 of charges associated
with the Company's previously disclosed 2020 organizational
restructuring plan recorded to cost of subscription revenues. |
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(IN THOUSANDS) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Three Months Ended |
|
|
|
April 1, |
|
April 2, |
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Net Loss |
$ (118,679) |
|
$ (8,243) |
|
Interest |
22,846 |
|
18,671 |
|
Taxes |
|
67,580 |
|
(1,802) |
|
Depreciation and Amortization |
10,273 |
|
10,759 |
|
Stock-based Compensation |
2,669 |
|
4,700 |
|
|
EBITDAS |
$ (15,311) |
|
$ 24,085 |
|
|
|
|
|
|
|
2023 Plan Restructuring Charges (1) |
22,632 |
|
— |
|
2022 Plan Restructuring Charges (2) |
40 |
|
— |
|
2021 Plan Restructuring Charges (3) |
(7) |
|
265 |
|
2020 Plan Restructuring Charges (4) |
(5) |
|
(116) |
|
|
Adjusted EBITDAS |
$ 7,349 |
|
$ 24,234 |
|
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|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
(1) |
Charges associated with the Company's previously disclosed 2023
restructuring plan. |
(2) |
Charges associated with the Company's previously disclosed 2022
restructuring plan. |
(3) |
The reversal of charges or charges, as applicable, associated with
the Company's previously disclosed 2021 organizational
restructuring plan. |
(4) |
The reversal of charges associated with the Company's previously
disclosed 2020 organizational restructuring plan. |
|
|
|
|
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(IN THOUSANDS, EXCEPT RATIOS) |
UNAUDITED |
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|
Trailing Twelve |
|
|
|
Q2 2022 |
|
Q3 2022 |
|
Q4 2022 |
|
Q1 2023 |
|
Months |
|
Net Debt to Adjusted EBITDAS |
|
|
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|
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|
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|
Net Loss |
$ |
(4,623 |
) |
|
$ |
(206,036 |
) |
|
$ |
(32,500 |
) |
|
$ |
(118,679 |
) |
|
$ |
(361,838 |
) |
|
Interest |
|
19,255 |
|
|
|
20,912 |
|
|
|
22,304 |
|
|
|
22,846 |
|
|
|
85,317 |
|
|
Taxes |
|
|
(2,879 |
) |
|
|
(70,749 |
) |
|
|
(38,948 |
) |
|
|
67,580 |
|
|
|
(44,996 |
) |
|
Depreciation and Amortization |
|
10,637 |
|
|
|
10,544 |
|
|
|
10,407 |
|
|
|
10,273 |
|
|
|
41,861 |
|
|
Stock-based Compensation |
|
2,286 |
|
|
|
3,376 |
|
|
|
2,590 |
|
|
|
2,669 |
|
|
|
10,921 |
|
|
|
EBITDAS |
$ |
24,676 |
|
|
$ |
(241,953 |
) |
|
$ |
(36,147 |
) |
|
$ |
(15,311 |
) |
|
$ |
(268,735 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise Rights Acquired and Goodwill Impairments |
|
26,420 |
|
(1) |
|
312,741 |
|
(2) |
|
57,566 |
|
(3) |
|
— |
|
|
|
396,727 |
|
|
2023 Plan Restructuring Charges (4) |
|
— |
|
|
|
— |
|
|
|
13,608 |
|
|
|
22,632 |
|
|
|
36,240 |
|
|
2022 Plan Restructuring Charges (5) |
|
19,117 |
|
|
|
3,557 |
|
|
|
4,507 |
|
|
|
40 |
|
|
|
27,221 |
|
|
2021 Plan Restructuring Charges (6) |
|
(566 |
) |
|
|
103 |
|
|
|
(142 |
) |
|
|
(7 |
) |
|
|
(612 |
) |
|
2020 Plan Restructuring Charges (7) |
|
— |
|
|
|
— |
|
|
|
(621 |
) |
|
|
(5 |
) |
|
|
(626 |
) |
|
|
Adjusted EBITDAS |
$ |
69,647 |
|
|
$ |
74,448 |
|
|
$ |
38,771 |
|
|
$ |
7,349 |
|
|
$ |
190,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt |
|
|
|
|
|
|
|
|
$ |
1,423,329 |
|
|
Less: Cash |
|
|
|
|
|
|
|
|
|
140,847 |
|
|
|
Net Debt |
|
|
|
|
|
|
|
|
$ |
1,282,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt to Net Loss |
|
|
|
|
|
|
|
|
(3.9) X |
|
|
Net Debt to Adjusted EBITDAS |
|
|
|
|
|
|
|
|
6.7 X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
(1) |
Impairment charges of the Company's franchise rights acquired of
$24,485 and $834 related to its Canada and New Zealand units of
account, respectively, and an impairment charge of the Company's
goodwill related to its Kurbo operations of $1,101. |
(2) |
Impairment charges of the Company's franchise rights acquired of
$298,291, $13,312 and $1,138 related to its United States, Canada
and New Zealand units of account, respectively. |
(3) |
Impairment charges of the Company's franchise rights acquired of
$25,739, $19,657, $8,275 and $1,872 related to its United States,
Canada, United Kingdom and Australia units of account,
respectively, and an impairment charge of the Company's goodwill
related to its Republic of Ireland reporting unit of $2,023. |
(4) |
Charges associated with the Company's previously disclosed 2023
restructuring plan. |
(5) |
Charges associated with the Company's previously disclosed 2022
restructuring plan. |
(6) |
The reversal of charges or charges, as applicable, associated with
the Company's previously disclosed 2021 organizational
restructuring plan. |
(7) |
The reversal of charges associated with the Company's previously
disclosed 2020 organizational restructuring plan. |
|
|
WW INTERNATIONAL, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
(IN MILLIONS) |
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
Full Year 2023 |
|
|
|
Operating Income Guidance Reconciliation |
|
|
|
|
|
Operating Income |
|
$48.0 - $60.0 |
|
Net Restructuring Charges
(1) |
|
$(32.0) - $(25.0) |
|
Adjusted Operating
Income |
$80.0 - $85.0 |
|
|
|
|
(1) |
Reflects the remaining net restructuring charges incurred and
expected to be incurred in fiscal 2023 related to the Company's
previously disclosed 2023 restructuring plan, 2022 restructuring
plan, 2021 organizational restructuring plan and 2020
organizational restructuring plan. |
|
|
|
|
For more information, contact:Investors:Corey
Kingercorey.kinger@ww.com
Media:Kelsey Merkelkelsey.merkel@ww.com
WW (NASDAQ:WW)
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