WW Announces Strong Third Quarter 2020 Results and Continued Subscriber Momentum

Nachrichtenquelle: globenewswire
29.10.2020, 21:01  |  132   |   |   
  • Q3 2020 End of Period Subscribers up 5% year-over-year to 4.7 million, an all-time Q3-end high 
  • Q3 2020 End of Period Digital Subscribers up 23% year-over-year, an all-time Q3-end high

  • Q3 2020 Revenues of $321 million, down 8%, or 9% on a constant currency basis, year-over-year due to anticipated declines in the Studio + Digital business

  • Q3 2020 Gross Margin of 59.3%; excluding one-time charges, Q3 2020 adjusted gross margin increased year-over-year to 59.6% driven primarily by a mix shift to higher margin Digital business

  • Q3 2020 Operating Income of $93 million; excluding one-time charges, Q3 2020 adjusted operating income of $95 million matched Q3 2019 operating income

NEW YORK, Oct. 29, 2020 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) today announced its results for the third quarter of fiscal 2020.

“The world has profoundly changed and WW, being a human-focused technology company, is needed now more than ever,” said Mindy Grossman, the Company’s President and CEO. “We ended the quarter with 4.7 million subscribers, marking a new record for a third quarter close. We accelerated initiatives that were already underway to create a truly differentiated, tech-enabled, member experience. Building on the massive success of the myWW food program, we are thrilled for the upcoming launch of our newest innovation myWW+ which offers even deeper personalized insights and new app features to deliver an enriching and fully interactive member experience.”

Amy O’Keefe, the Company’s CFO, said, “The power of our high-margin digital subscription business is demonstrated in our Q3 results as year-over-year we grew total subscribers, matched operating income levels, and grew EPS, despite the negative impact of COVID-19 on our Studio business. We remain focused on maximizing member recruitment opportunities, while maintaining cost discipline and increasing the flexibility of our operating structure. We are confident we have the right initiatives in place to fuel profitability and growth.”

Q3 2020 Consolidated Results

  Three Months Ended       % Change
Adjusted for
Constant
Currency(1)
  September 26,   September 28,      
  2020   2019   % Change   
(in millions except percentages and per share amounts)

             
Service Revenues, net $282.3   $298.0   (5.3%)   (6.7%)
Product Sales and Other, net 38.4   50.5   (24.0%)   (25.4%)
Revenues, net $320.7   $348.6   (8.0% )   (9.4%)
Gross Profit 190.1   194.8   (2.4%)   (4.0%)
Adjustments              
2020 Restructuring Charges $1.1   --        
Adjusted Gross Profit(1) $191.2   $194.8   (1.9%)   (3.5%)
Operating Income $92.6   $94.7   (2.2%)   (4.2%)
Adjustments              
2020 Restructuring Charges $2.3   --        
Adjusted Operating Income(1) $94.9   $94.7   0.2%   (1.8%)
Net Income* $54.5   $47.1   15.8%   12.9%
EPS $0.78   $0.68   15.2%   12.3%


Total Paid Weeks
62.1   58.6   6.0%   N/A
Digital(2) Paid Weeks 49.9   40.3   23.8%   N/A
Studio + Digital(3) Paid Weeks 12.2   18.3   (33.3%)   N/A
               
End of Period Subscribers(4) 4.7   4.4   5.3%   N/A
Digital Subscribers 3.8   3.1   23.5%   N/A
Studio + Digital Subscribers 0.9   1.3   (36.5%)   N/A
               
___________________________________

Note: Totals may not sum due to rounding.
(1)   See “Reconciliation of Non-GAAP Financial Measures” attached to this release for further detail on adjustments to GAAP financial measures.
(2)   “Digital” refers to providing subscriptions to the Company’s digital product offerings, including the Personal Coaching + Digital product.
(3)   “Studio + Digital” refers to providing access to the Company’s weekly in-person workshops combined with the Company’s digital subscription product offerings to commitment plan subscribers. The “Studio + Digital” business also includes the provision of access to workshops for members who do not subscribe to commitment plans, including the Company’s “pay-as-you-go” members.
(4)   “Subscribers” refers to Digital subscribers and Studio + Digital subscribers who participate in recur bill programs in Company-owned operations.
*Except in the case of the financials attached to this release, “Net Income” refers to Net Income attributable to WW International, Inc.
 

Q3 2020 Business and Financial Highlights

  • End of Period Subscribers in Q3 2020 were up 5.3% versus the prior year period, driven by Digital subscriber growth across all major geographic markets. Q3 2020 End of Period Digital Subscribers were up 23.5% and End of Period Studio + Digital Subscribers were down 36.5% versus the prior year period.

  • Total Paid Weeks in Q3 2020 were up 6.0% versus the prior year period, driven by Digital growth across all major geographic markets. Q3 2020 Digital Paid Weeks increased 23.8% and Studio + Digital Paid Weeks decreased 33.3% versus the prior year period.

  • Revenues in Q3 2020 were $320.7 million. On a constant currency basis, Q3 2020 revenues decreased 9.4% versus the prior year period.

    • Service Revenues in Q3 2020 were $282.3 million. On a constant currency basis, these revenues decreased 6.7% versus the prior year period, driven by declines in Studio + Digital Fees primarily as a result of fewer open studios and reduced operations related to COVID-19.

    • Product Sales and Other in Q3 2020 were $38.4 million. On a constant currency basis, these revenues decreased 25.4% versus the prior year period, driven by declines in product sales primarily as a result of fewer open studios and reduced operations related to COVID-19.

  • Gross Profit in Q3 2020 was $190.1 million and adjusted gross profit in Q3 2020 was $191.2 million, which excluded $1.1 million in charges associated with the Company’s previously disclosed 2020 organizational restructuring plan. Gross profit in Q3 2019 was $194.8 million.

    • Gross Margin in Q3 2020 was 59.3%. Adjusted gross margin was 59.6%, up from 55.9% in the prior year period driven primarily by a mix shift to the Company’s higher margin Digital business.

  • Operating Income in Q3 2020 was $92.6 million and adjusted operating income in Q3 2020 was $94.9 million, which excluded the $2.3 million in charges associated with the Company’s previously disclosed 2020 organizational restructuring plan. Operating income in Q3 2019 was $94.7 million.

    • Operating Income Margin for Q3 2020 was 28.9%. Adjusted operating income margin was 29.6%, an increase from 27.2% in the prior year period driven primarily by a mix shift to the Company’s higher margin Digital business as well as continued expense discipline.

  • Effective Tax Rate in Q3 2020 was 13.6%, versus 21.8% in the prior year period. The tax rate was lower in Q3 2020 primarily due to a $7.6 million discrete tax benefit related to the reversal of prior years’ global intangible low-taxed income, or GILTI, taxes that are no longer required.

  • Net Income in Q3 2020 was $54.5 million compared to $47.1 million in the prior year period.

  • Earnings per fully diluted share (EPS) in Q3 2020 was $0.78 compared to $0.68 in the prior year period.

    • Certain items affect year-over-year comparability. The following items in the aggregate positively impacted Q3 2020 fully diluted EPS by $0.09:
      • $0.02 per fully diluted share negative impact from charges associated with the Company’s previously disclosed 2020 organizational restructuring plan.
      • $0.11 per fully diluted share benefit from the reversal of prior years’ tax expense related to GILTI.

Other Items

  • Cash balance as of September 26, 2020 was $204.4 million. On that same date, the Company had no outstanding borrowings under its $175 million revolving credit facility.
  • 2020 Restructuring Plan: The Company has revised the estimated cost of its previously disclosed restructuring plan to $22.5 million primarily driven by strategic cost reductions to its global Studio + Digital operations to adjust to anticipated consumer demand.

Third Quarter 2020 Conference Call and Webcast

The Company has scheduled a conference call today at 5:00 p.m. ET.  During the conference call, Mindy Grossman, President and Chief Executive Officer, Nicholas Hotchkin, Chief Operating Officer, and Amy O’Keefe, Chief Financial Officer, will discuss the third quarter of fiscal 2020 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 Measures
The 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 profit margin, operating income, operating 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), with respect to the third quarter of fiscal 2020 to exclude the impact of charges associated with the Company’s previously disclosed 2020 organizational restructuring plan, and with respect to the first nine months of fiscal 2020 to exclude the impact of the impairment charge for the Company’s goodwill related to its Brazil operations, the impact of the one-time stock compensation expense associated with the previously disclosed option granted to Ms. Oprah Winfrey in connection with the Company extending its partnership with Ms. Winfrey and charges associated with the Company’s previously disclosed 2020 organizational restructuring plan, 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, 2020 restructuring charges and goodwill impairment (“Adjusted EBITDAS”), net debt, and a net debt to 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.
WW – Weight Watchers reimagined – is a global wellness company powered by the world’s leading commercial weight management program. We inspire millions of people to adopt healthy habits for real life. Through our engaging tech-enabled experience and face-to-face group workshops, members follow our livable and sustainable program of healthy eating, physical activity, and a helpful mindset. Leveraging more than five decades of experience in building inspired communities and our deep expertise in behavioral science, we aim to democratize wellness and to deliver wellness for all. To learn more about the WW 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, revenue and earnings guidance and any statements about the Company’s plans, strategies and prospects and the impact of the COVID-19 virus. 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 global outbreak of the COVID-19 virus on the Company’s business and liquidity and on the business 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 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 the Company’s ability to successfully expand into new channels of distribution or respond to consumer trends; the ability to successfully implement new strategic initiatives, including the Company’s strategic digital transformation; the effectiveness of the Company’s advertising and marketing programs, including the strength of its social media presence; the impact on the Company’s reputation of actions taken by its franchisees, licensees, suppliers and other partners; the impact of the Company’s substantial amount of debt, debt service obligations and debt covenants, and the Company’s 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 or privacy concerns, including the costs of compliance with evolving privacy laws and regulations; 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 inability to renew certain of the Company’s licenses, or the inability to do so on terms that are favorable to the Company; the expiration or early termination by the Company of leases; risks and uncertainties associated with the Company’s international operations, including regulatory, economic, political, social, intellectual property and foreign currency risks; uncertainties related to a downturn in general economic conditions or consumer confidence; the Company’s ability to successfully make acquisitions or enter into joint ventures, including its ability to successfully integrate, operate or realize the anticipated benefits of such businesses; the seasonal nature of the Company’s business; the impact of events that discourage or impede people from gathering with others or accessing resources; 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; the outcomes of litigation or regulatory actions; the impact of existing and future laws and regulations; the Company’s failure to maintain effective internal control over financial reporting; 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 Securities and Exchange Commission. 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 United States Securities and Exchange Commission (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
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
UNAUDITED
       
       
  September 26,   December 28,
   2020     2019 
       
ASSETS      
Cash and cash equivalents $ 204,397     $ 182,736  
Other current assets   117,007       112,654  
     TOTAL CURRENT ASSETS   321,404       295,390  
Property and equipment, net   57,306       54,066  
Operating lease assets   131,777       151,983  
Goodwill, franchise rights and other intangible assets, net   964,061       970,392  
Other assets   28,461       26,483  
     TOTAL ASSETS $ 1,503,009     $ 1,498,314  
       
LIABILITIES AND TOTAL DEFICIT      
Portion of long-term debt due within one year $ 96,250     $ 96,250  
Portion of operating lease liabilities due within one year   35,101       33,236  
Other current liabilities   232,998       264,584  
     TOTAL CURRENT LIABILITIES   364,349       394,070  
Long-term debt   1,426,580       1,479,920  
Long-term operating lease liabilities   110,034       128,464  
Deferred income taxes, other   183,197       177,681  
     TOTAL LIABILITIES $ 2,084,160     $ 2,180,135  
       
Redeemable noncontrolling interest   3,599       3,722  
       
Shareholders' deficit   (584,750 )     (685,543 )
       
     TOTAL LIABILITIES AND TOTAL DEFICIT $ 1,503,009     $ 1,498,314  



WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
         
    Three Months Ended
    September 26,   September 28,
     2020     2019
Service revenues, net (1) $ 282,310     $ 298,041
Product sales and other, net (2)   38,389       50,526
  Revenues, net   320,699       348,567
Cost of services (3)   99,485       122,374
Cost of product sales and other   31,118       31,424
  Cost of revenues   130,603       153,798
  Gross profit   190,096       194,769
Marketing expenses   38,262       36,327
Selling, general and administrative expenses   59,192       63,713
  Operating income   92,642       94,729
Interest expense   29,735       33,118
Other (income) expense, net   (211 )     1,460
  Income before income taxes   63,118       60,151
Provision for income taxes   8,604       13,123
  Net income   54,514       47,028
Net loss attributable to the noncontrolling interest   11       58
  Net income attributable to WW International, Inc. $ 54,525     $ 47,086
         
Earnings Per Share attributable to WW International, Inc.      
  Basic $ 0.80     $ 0.70
  Diluted $ 0.78     $ 0.68
         
Weighted average common shares outstanding:      
  Basic   68,013       67,298
  Diluted   70,002       69,617
         
____        
Note: Totals may not sum due to rounding.      
(1) Consists of net “Digital Subscription Revenues” and net “Studio + Digital Fees”. “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings, including the Personal Coaching + Digital product. “Studio + 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 in studios, via e-commerce, and through several trusted retail partners, revenues from licensing, magazine subscriptions, publishing and third-party advertising in publications and on the Company's websites and sales from the By Mail product, 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 Studio + Digital services.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
         
    Nine Months Ended
    September 26,   September 28,
     2020    2019
Service revenues, net (1) $ 899,964   $ 918,535
Product sales and other, net (2)   154,733     162,219
  Revenues, net   1,054,697     1,080,754
Cost of services (3)   343,056     373,452
Cost of product sales and other   115,882     95,771
  Cost of revenues   458,938     469,223
  Gross profit   595,759     611,531
Marketing expenses   198,090     200,543
Selling, general and administrative expenses   225,509     188,889
Goodwill impairment   3,665     -
  Operating income   168,495     222,099
Interest expense   92,281     103,045
Other expense, net   230     2,201
  Income before income taxes   75,984     116,853
Provision for income taxes   13,546     26,834
  Net income   62,438     90,019
Net loss attributable to the noncontrolling interest   30     214
  Net income attributable to WW International, Inc. $ 62,468   $ 90,233
         
Earnings Per Share attributable to WW International, Inc.      
  Basic $ 0.92   $ 1.34
  Diluted $ 0.89   $ 1.30
         
Weighted average common shares outstanding:      
  Basic   67,697     67,129
  Diluted   69,936     69,364
         
____        
Note: Totals may not sum due to rounding.      
(1) Consists of net “Digital Subscription Revenues” and net “Studio + Digital Fees”. “Digital Subscription Revenues” consist of the fees associated with subscriptions for the Company’s Digital offerings, including the Personal Coaching + Digital product. “Studio + 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 in studios, via e-commerce, and through several trusted retail partners, revenues from licensing, magazine subscriptions, publishing and third-party advertising in publications and on the Company's websites and sales from the By Mail product, other revenues (including revenues from the WW Presents: Oprah’s 2020 Vision tour), 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 Studio + Digital services.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
           
  Three Months Ended    
  September 26,   September 28,   Variance
  2020   2019  
           
Digital Paid Weeks (1)          
North America 31,776   25,484   24.7 %
CE 13,857   11,526   20.2 %
UK 3,385   2,540   33.2 %
Other (2) 913   797   14.5 %
Total Digital Paid Weeks 49,932   40,348   23.8 %
           
Studio + Digital Paid Weeks (1)          
North America 8,339   12,465   (33.1 %)
CE 1,938   2,701   (28.2 %)
UK 1,588   2,571   (38.3 %)
Other (2) 326   539   (39.5 %)
Total Studio + Digital Paid Weeks 12,191   18,276   (33.3 %)
           
Total Paid Weeks (1)          
North America 40,116   37,949   5.7 %
CE 15,795   14,226   11.0 %
UK 4,973   5,112   (2.7 %)
Other (2) 1,239   1,336   (7.3 %)
Total Paid Weeks 62,123   58,623   6.0 %
           
End of Period Digital Subscribers (3)          
North America 2,416   1,947   24.1 %
CE 1,065   878   21.2 %
UK 256   198   29.2 %
Other (2) 72   61   18.1 %
Total End of Period Digital Subscribers 3,809   3,085   23.5 %
           
End of Period Studio + Digital Subscribers (3)          
North America 574   905   (36.6 %)
CE 142   209   (32.1 %)
UK 112   187   (40.1 %)
Other (2) 25   42   (39.3 %)
Total End of Period Studio + Digital Subscribers 853   1,343   (36.5 %)
           
Total End of Period Subscribers (3)          
North America 2,990   2,852   4.8 %
CE 1,206   1,087   11.0 %
UK 368   385   (4.5 %)
Other (2) 98   103   (5.2 %)
Total End of Period Subscribers 4,662   4,428   5.3 %
           
____           
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 (including Personal Coaching + Digital); (ii) “Studio + Digital Paid Weeks” is the sum of total paid commitment plan weeks which include workshops and digital offerings and total “pay-as-you-go” weeks; and (iii) “Total Paid Weeks” is the sum of Digital Paid Weeks and Studio + Digital Paid Weeks.
(2) Represents Australia, New Zealand and emerging markets.          
(3) 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 Personal Coaching + Digital, subscribers; (ii) “End of Period Studio + 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 Studio + Digital Subscribers.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
           
  Nine Months Ended    
  September 26,   September 28,   Variance
  2020   2019  
           
Digital Paid Weeks (1)          
North America 91,635   76,119   20.4 %
CE 40,758   34,672   17.6 %
UK 9,276   7,512   23.5 %
Other (2) 2,750   2,363   16.4 %
Total Digital Paid Weeks 144,419   120,666   19.7 %
           
Studio + Digital Paid Weeks (1)          
North America 31,973   38,843   (17.7 %)
CE 7,522   8,919   (15.7 %)
UK 6,172   7,959   (22.5 %)
Other (2) 1,352   1,744   (22.4 %)
Total Studio + Digital Paid Weeks 47,019   57,465   (18.2 %)
           
Total Paid Weeks (1)          
North America 123,608   114,962   7.5 %
CE 48,280   43,591   10.8 %
UK 15,448   15,471   (0.2 %)
Other (2) 4,102   4,107   (0.1 %)
Total Paid Weeks 191,438   178,131   7.5 %
           
End of Period Digital Subscribers (3)          
North America 2,416   1,947   24.1 %
CE 1,065   878   21.2 %
UK 256   198   29.2 %
Other (2) 72   61   18.1 %
Total End of Period Digital Subscribers 3,809   3,085   23.5 %
           
End of Period Studio + Digital Subscribers (3)          
North America 574   905   (36.6 %)
CE 142   209   (32.1 %)
UK 112   187   (40.1 %)
Other (2) 25   42   (39.3 %)
Total End of Period Studio + Digital Subscribers 853   1,343   (36.5 %)
           
Total End of Period Subscribers (3)          
North America 2,990   2,852   4.8 %
CE 1,206   1,087   11.0 %
UK 368   385   (4.5 %)
Other (2) 98   103   (5.2 %)
Total End of Period Subscribers 4,662   4,428   5.3 %
           
____           
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 (including Personal Coaching + Digital); (ii) “Studio + Digital Paid Weeks” is the sum of total paid commitment plan weeks which include workshops and digital offerings and total “pay-as-you-go” weeks; and (iii) “Total Paid Weeks” is the sum of Digital Paid Weeks and Studio + Digital Paid Weeks.
(2) Represents Australia, New Zealand and emerging markets.          
(3) 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 Personal Coaching + Digital, subscribers; (ii) “End of Period Studio + 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 Studio + Digital Subscribers.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
                       
                  Q3 2020 Variance
                      2020 
              Constant
  Q3 2020   Q3 2019   2020    Currency
      Currency   Constant       vs   vs
  GAAP   Adjustment   Currency   GAAP   2019    2019 
Selected Financial Data                      
Consolidated Company Revenues $ 320,699   $ (4,829 )   $ 315,870   $ 348,567   (8.0 %)   (9.4 %)
Consolidated Digital Subscription Revenues (1) $ 188,731   $ (3,161 )   $ 185,570   $ 153,940   22.6 %   20.5 %
Consolidated Studio + Digital Fees (2) $ 93,579   $ (995 )   $ 92,584   $ 144,101   (35.1 %)   (35.8 %)
Consolidated Service Revenues (3) $ 282,310   $ (4,156 )   $ 278,154   $ 298,041   (5.3 %)   (6.7 %)
Consolidated Product Sales and Other (4) $ 38,389   $ (673 )   $ 37,716   $ 50,526   (24.0 %)   (25.4 %)
                       
North America                      
Digital Subscription Revenues (1) $ 122,120   $ 82     $ 122,202   $ 101,579   20.2 %   20.3 %
Studio + Digital Fees (2) $ 69,111   $ 46     $ 69,157   $ 108,338   (36.2 %)   (36.2 %)
Service Revenues (3) $ 191,231   $ 128     $ 191,359   $ 209,917   (8.9 %)   (8.8 %)
Product Sales and Other (4) $ 23,964   $ 15     $ 23,979   $ 33,767   (29.0 %)   (29.0 %)
Total Revenues $ 215,195   $ 142     $ 215,337   $ 243,684   (11.7 %)   (11.6 %)
                       
CE                      
Digital Subscription Revenues (1) $ 53,230   $ (2,759 )   $ 50,471   $ 42,230   26.0 %   19.5 %
Studio + Digital Fees (2) $ 14,288   $ (707 )   $ 13,581   $ 20,644   (30.8 %)   (34.2 %)
Service Revenues (3) $ 67,518   $ (3,465 )   $ 64,053   $ 62,874   7.4 %   1.9 %
Product Sales and Other (4) $ 8,993   $ (463 )   $ 8,530   $ 8,264   8.8 %   3.2 %
Total Revenues $ 76,511   $ (3,928 )   $ 72,583   $ 71,138   7.6 %   2.0 %
                       
UK                      
Digital Subscription Revenues (1) $ 9,227   $ (419 )   $ 8,808   $ 6,608   39.6 %   33.3 %
Studio + Digital Fees (2) $ 7,515   $ (329 )   $ 7,186   $ 10,733   (30.0 %)   (33.0 %)
Service Revenues (3) $ 16,742   $ (748 )   $ 15,994   $ 17,341   (3.5 %)   (7.8 %)
Product Sales and Other (4) $ 3,730   $ (174 )   $ 3,556   $ 5,592   (33.3 %)   (36.4 %)
Total Revenues $ 20,472   $ (922 )   $ 19,550   $ 22,933   (10.7 %)   (14.8 %)
                       
Other (5)                      
Digital Subscription Revenues (1) $ 4,154   $ (65 )   $ 4,089   $ 3,523   17.9 %   16.0 %
Studio + Digital Fees (2) $ 2,665   $ (5 )   $ 2,660   $ 4,386   (39.2 %)   (39.4 %)
Service Revenues (3) $ 6,819   $ (71 )   $ 6,748   $ 7,909   (13.8 %)   (14.7 %)
Product Sales and Other (4) $ 1,702   $ (51 )   $ 1,651   $ 2,903   (41.4 %)   (43.1 %)
Total Revenues $ 8,521   $ (121 )   $ 8,400   $ 10,812   (21.2 %)   (22.3 %)
                       
____                       
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, including the Personal Coaching + Digital product.
(2) “Studio + 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) “Service Revenues” equal “Digital Subscription Revenues" plus “Studio + Digital Fees”.
(4) “Product Sales” are sales of consumer products in studios, via e-commerce, and through several trusted retail partners, and “Other” are revenues from licensing, magazine subscriptions, publishing and third-party advertising in publications and on the Company's websites and sales from the By Mail product, other revenues, and, in the case of the consolidated financial results and Other reportable segment, includes franchise fees with respect to commitment plans and royalties.
(5) Represents Australia, New Zealand, emerging markets and franchise revenues.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
                       
                  YTD 2020 Variance
                      2020 
              Constant
  YTD 2020   YTD 2019   2020    Currency
      Currency   Constant       vs   vs
  GAAP     Adjustment     Currency   GAAP   2019    2019 
Selected Financial Data                      
Consolidated Company Revenues $ 1,054,697   $ 2,265     $ 1,056,962   $ 1,080,754   (2.4 %)   (2.2 %)
Consolidated Digital Subscription Revenues (1) $ 541,197   $ 571     $ 541,768   $ 459,764   17.7 %   17.8 %
Consolidated Studio + Digital Fees (2) $ 358,767   $ 1,427     $ 360,194   $ 458,771   (21.8 %)   (21.5 %)
Consolidated Service Revenues (3) $ 899,964   $ 1,998     $ 901,962   $ 918,535   (2.0 %)   (1.8 %)
Consolidated Product Sales and Other (4) $ 154,733   $ 267     $ 155,000   $ 162,219   (4.6 %)   (4.5 %)
                       
North America                      
Digital Subscription Revenues (1) $ 354,391   $ 449     $ 354,840   $ 303,190   16.9 %   17.0 %
Studio + Digital Fees (2) $ 268,086   $ 293     $ 268,379   $ 342,896   (21.8 %)   (21.7 %)
Service Revenues (3) $ 622,477   $ 742     $ 623,219   $ 646,086   (3.7 %)   (3.5 %)
Product Sales and Other (4) $ 103,949   $ 63     $ 104,012   $ 103,255   0.7 %   0.8 %
Total Revenues $ 726,426   $ 803     $ 727,229   $ 749,341   (3.1 %)   (2.9 %)
                       
CE                      
Digital Subscription Revenues (1) $ 150,572   $ (478 )   $ 150,094   $ 125,999   19.5 %   19.1 %
Studio + Digital Fees (2) $ 53,665   $ 243     $ 53,908   $ 68,274   (21.4 %)   (21.0 %)
Service Revenues (3) $ 204,237   $ (235 )   $ 204,002   $ 194,273   5.1 %   5.0 %
Product Sales and Other (4) $ 30,084   $ 67     $ 30,151   $ 30,350   (0.9 %)   (0.7 %)
Total Revenues $ 234,321   $ (169 )   $ 234,152   $ 224,623   4.3 %   4.2 %
                       
UK                      
Digital Subscription Revenues (1) $ 24,374   $ (24 )   $ 24,350   $ 20,019   21.8 %   21.6 %
Studio + Digital Fees (2) $ 26,645   $ 142     $ 26,787   $ 33,493   (20.4 %)   (20.0 %)
Service Revenues (3) $ 51,019   $ 118     $ 51,137   $ 53,512   (4.7 %)   (4.4 %)
Product Sales and Other (4) $ 14,219   $ 38     $ 14,257   $ 18,556   (23.4 %)   (23.2 %)
Total Revenues $ 65,238   $ 156     $ 65,394   $ 72,068   (9.5 %)   (9.3 %)
                       
Other (5)                      
Digital Subscription Revenues (1) $ 11,860   $ 625     $ 12,485   $ 10,556   12.4 %   18.3 %
Studio + Digital Fees (2) $ 10,371   $ 748     $ 11,119   $ 14,108   (26.5 %)   (21.2 %)
Service Revenues (3) $ 22,231   $ 1,374     $ 23,605   $ 24,664   (9.9 %)   (4.3 %)
Product Sales and Other (4) $ 6,481   $ 99     $ 6,580   $ 10,058   (35.6 %)   (34.6 %)
Total Revenues $ 28,712   $ 1,473     $ 30,185   $ 34,722   (17.3 %)   (13.1 %)
                       
____                       
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, including the Personal Coaching + Digital product.
(2) “Studio + 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) “Service Revenues” equal “Digital Subscription Revenues" plus “Studio + Digital Fees”.
(4) “Product Sales” are sales of consumer products in studios, via e-commerce, and through several trusted retail partners, and “Other” are revenues from licensing, magazine subscriptions, publishing and third-party advertising in publications and on the Company's websites and sales from the By Mail product, other revenues (including revenues from the WW Presents: Oprah’s 2020 Vision tour), and, in the case of the consolidated financial results and Other reportable segment, includes franchise fees with respect to commitment plans and royalties.
(5) Represents Australia, New Zealand, emerging markets and franchise revenues.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
                                           
                                           
                              Q3 2020 Variance
                                      2020 Constant Currency
  Q3 2020   Q3 2019       2020        2020 
                      Adjusted       2020    Adjusted   2020
  Adjusted
              Currency   Constant   Constant       vs   vs   vs   vs
  GAAP   Adjustment   Adjusted     Adjustment     Currency   Currency   GAAP   2019    2019    2019    2019 
Selected Financial Data                                          
Gross Profit $ 190,096     $ 1,062   (1) $ 191,158     $ (3,149 )   $ 186,947     $ 188,009     $ 194,769     (2.4 %)   (1.9 %)   (4.0 %)   (3.5 %)
Gross Margin   59.3%           59.6%           59.2%       59.5%       55.9%                  
                                           
Selling, General and Administrative Expenses $ 59,192     $ (1,189 ) (2) $ 58,003     $ (486 )   $ 58,706     $ 57,517     $ 63,713     (7.1 %)   (9.0 %)   (7.9 %)   (9.7 %)
                                           
Operating Income $ 92,642     $ 2,251   (3) $ 94,893     $ (1,896 )   $ 90,746     $ 92,997     $ 94,729     (2.2 %)   0.2 %   (4.2 %)   (1.8 %)
Operating Income Margin   28.9%           29.6%           28.7%       29.4%       27.2%                  
                                           
____                                           
Note: Totals may not sum due to rounding.                     
                                           
(1)Excludes $1,062 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.
(2)Excludes $1,189 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.
(3)Excludes the $1,062 and $1,189 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan recorded to cost of services and selling, general and administrative expenses, respectively.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
                                           
                                           
          YTD 2020 Variance
                                      2020 Constant Currency
  YTD 2020   YTD 2019       2020        2020 
                      Adjusted       2020    Adjusted   2020    Adjusted
              Currency   Constant   Constant       vs   vs   vs   vs
  GAAP   Adjustment   Adjusted     Adjustment     Currency   Currency   GAAP   2019    2019    2019    2019 
Selected Financial Data                                          
Gross Profit $ 595,759   $ 7,565   (1) $ 603,323   $ 1,267     $ 597,026   $ 604,591   $ 611,531   (2.6 %)   (1.3 %)   (2.4 %)   (1.1 %)
Gross Margin   56.5%         57.2%         56.5%     57.2%     56.6%                
                                           
Selling, General and Administrative Expenses $ 225,509   $ (38,580 ) (2) $ 186,929   $ 532     $ 226,041   $ 187,461   $ 188,889   19.4 %   (1.0 %)   19.7 %   (0.8 %)
                                           
Operating Income $ 168,495   $ 49,810   (3) $ 218,304   $ (731 )   $ 167,764   $ 218,540   $ 222,099   (24.1 %)   (1.7 %)   (24.5 %)   (1.6 %)
Operating Income Margin   16.0%         20.7%         15.9%     20.7%     20.6%                
                                           
____                                           
Note: Totals may not sum due to rounding.                                        
                                           
(1)Excludes $7,565 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.
(2)Excludes the one-time stock compensation expense of $32,686 associated with the previously disclosed option granted to Ms. Oprah Winfrey in connection with the Company extending its partnership with Ms. Winfrey and $5,894 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.
(3)Excludes the one-time stock compensation expense of $32,686 associated with the previously disclosed option granted to Ms. Oprah Winfrey in connection with the Company extending its partnership with Ms. Winfrey, the $7,565 and $5,894 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan recorded to cost of services and selling, general and administrative expenses, respectively, and the impairment charge of $3,665 for the Company's goodwill related to its Brazil operations.



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS)
UNAUDITED
                 
                 
    Three Months Ended   Nine Months Ended
    September 26,   September 28,   September 26,   September 28,
      2020     2019     2020     2019
                 
  Net Income $ 54,525   $ 47,086   $ 62,468   $ 90,233
  Interest   29,735     33,118     92,281     103,045
  Taxes   8,604     13,123     13,546     26,834
  Depreciation and Amortization   12,420     10,850     37,402     33,543
  Stock-based Compensation   6,029     5,243     48,680     14,927
  EBITDAS $ 111,313   $ 109,420   $ 254,378   $ 268,582
  2020 Restructuring Charges (1)   2,251     -     13,459     -
  Goodwill Impairment (2)   -     -     3,665     -
  Adjusted EBITDAS $ 113,564   $ 109,420   $ 271,502   $ 268,582
                 
  ____               
  Note: Totals may not sum due to rounding.            
                 
(1) Charges associated with the Company's previously disclosed 2020 organizational restructuring plan.    
(2) Impairment charge of the Company's goodwill related to its Brazil operations.        



WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT RATIO)
UNAUDITED
                       
                      Trailing Twelve
      Q4 2019   Q1 2020   Q2 2020   Q3 2020   Months
  Net Debt to Adjusted EBITDAS                  
                       
  Net Income (Loss) $ 29,383   $ (6,063 )   $ 14,006   $ 54,525   $ 91,851
  Interest   32,222     31,551       30,995     29,735     124,503
  Taxes     4,679     (651 )     5,592     8,604     18,224
  Depreciation and Amortization   11,474     12,211       12,771     12,420     48,876
  Stock-based Compensation   5,544     3,965       38,686     6,029     54,225
    EBITDAS $ 83,302   $ 41,013     $ 102,049   $ 111,313   $ 337,678
                       
                       
  2020 Restructuring Charges (1) $ -   $ -     $ 11,209   $ 2,251     13,459
  Goodwill Impairment (2) $ -   $ 3,665     $ -   $ -   $ 3,665
    Adjusted EBITDAS $ 83,302   $ 44,678     $ 113,258   $ 113,564   $ 354,803
                       
  Total Debt                 $ 1,522,830
  Less: Cash                   204,397
    Net Debt                 $ 1,318,432
    Net Debt to Adjusted EBITDAS               3.7 X
                       
  ____                     
  Note: Totals may not sum due to rounding.                
                       
(1) Charges associated with the Company's previously disclosed 2020 organizational restructuring plan.    
(2) Impairment charge of the Company's goodwill related to its Brazil operations.        

For more information, contact:
Investors:
Corey Kinger        
VP Investor Relations
212.601.7569
corey.kinger@ww.com

Media:
Nicole Penn
VP Corporate Communications
917.734.0802
nicole.penn@ww.com


WW International Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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WW Announces Strong Third Quarter 2020 Results and Continued Subscriber Momentum Q3 2020 End of Period Subscribers up 5% year-over-year to 4.7 million, an all-time Q3-end high  Q3 2020 End of Period Digital Subscribers up 23% year-over-year, an all-time Q3-end highQ3 2020 Revenues of $321 million, down 8%, or 9% on a constant …

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