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Weight Watchers International Inc WTW
Q1 2010 Earnings Call Transcript

Transcript Call Date 05/06/2010

Operator: Good evening, ladies and gentlemen and welcome to the Weight Watchers International First Quarter 2010 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session and instructions will be provided at that time. As a reminder, this conference call is being today, May 6, 2010.

At this time, I’d like to turn the call to Miss. Sarika Sahni of Weight Watchers International. Please go ahead.

Sarika Sahni - IR: Thank you, and thank you to everyone for joining us today for Weight Watchers International’s first quarter 2010 conference call. With us on the call are David Kirchhoff, President and Chief Executive Officer and Ann Sardini, Chief Financial Officer.

At about 4.00 PM Eastern Time today the company issued a press release reporting its fiscal results for the first quarter 2010. The purpose of this call is to provide investors with some further details regarding the Company’s financial results, as well as to provide a general update on the Company’s progress. The press release is available at www.weightwatchersinternational.com.

Before we begin; let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligations that publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

I would now like to turn the call over to Mr. Kirchhoff. Please go ahead David.

David Kirchhoff - President and CEO: Good afternoon, and thank you for joining us since we review Weight Watchers International’s performance for the first quarter of fiscal year 2010. Consistent with the direction we gave in the last earnings call, Q1 2010 proved to be one of the more challenging quarters that Weight Watchers have faced. The combination of residual slowness in the economy, unprecedented bad weather in our largest markets accompany against the new program launch last year and our U.S. and U.K. markets created uniquely difficult operating conditions.

As a result, we experienced soft enrollments in our meeting business in both our key U.S. and UK markets only partially offset by the successful launch of our new ProPoints program in Continental Europe and a continued growth of our global WeightWatchers.com business. As we will discuss later in this call, the early results of Q2 looks significantly more favorable.

Before I run through those specific quarterly results, I want to point out that we have modified our approach to our earnings press release to more clearly bridge between our GAAP and non-GAAP financial results as well as other key metrics.

I will focus my remarks on the financial and operating metrics that provide comparability and insight into the performance of our business. I hope you find this new approach helpful.

Read our Earnings Call Transcript disclaimer.
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