weight watchers intl inc (WTW) Snapshot

Weight Watchers International, Inc. declared its quarterly cash dividend of $0.175 per share of common stock, which corresponds to an annual dividend rate of $0.70 per share. This quarterly dividend will be payable on July 12, 2013 to shareholders of record at the close of business on June 28, 2013.

Weight Watchers International, Inc. reported unaudited consolidated earnings results for first quarter ended March 30, 2013. For the quarter, the company’s net revenues were $486.9 million against $503.5 million a year ago. Operating income was $103.1 million against $102.8 million a year ago. Income before income taxes was $79.3 million against $88.8 million a year ago. Net income was $48.8 million against $54.6 million a year ago. Basic and diluted earnings per share were $0.87 against $0.74 a year ago. EBITDAS for the quarter was $114.3 million. The increase in operating income was driven by lower marketing expense, primarily in the United States, a combination of a strategic decision made by the company in fiscal 2012 not to repeat a men's campaign in the first quarter of fiscal 2013 and more efficient digital advertising. Cash flow from operations was $115 million versus $105 million a year ago. At the end of the first quarter, the company had approximately $2.3 billion of net debt. The company has narrowed its full year 2013 earnings guidance to a range of between $3.60 and $3.90 per fully diluted share, which includes the impact of approximately $0.15 related to higher interest expense from the company's recent debt refinancing. These earnings guidance range excludes an expected one-time charge to be taken in the second quarter related to the write-off of fees associated with the debt refinancing. The new earnings guidance range compares with the company's previously provided earnings guidance range of between $3.50 and $4.00 per fully diluted share. The company expects to spend up to $65 million in capex, down from around $80 million last year and below its earlier expectation for $70 million as the company look for efficiency in all areas across its business. Interest expense projection is now approximately $100 million to $105 million, about $0.15 per share higher than prior guidance. For the second quarter of 2013, the company will record a onetime charge of about $20 million related to the write-off of prior financing fees.

Weight Watchers International, Inc., Q1 2013 Earnings Call, May 02, 2013