New York, Aug. 1 - Weight Watchers International, Inc. today announced results for the second quarter ended June 30, 2007.
Second Quarter 2007 Results
For the second quarter of 2007, net revenues increased 20% or $65.2 million to $386.3 million, up from $321.1 million in the second quarter of 2006. Fully diluted earnings per share were $0.73 in the second quarter of 2007 versus $0.58 in the prior year period, up 26%. During the second quarter of 2006, the Company completed the refinancing of its debt and incurred an early extinguishment of debt charge of $0.01 per fully diluted share. Excluding this non-recurring expense, fully diluted earnings per share were $0.59 for the second quarter of 2006.
Net income in the second quarter of 2007 was $58.0 million, versus $57.9 million in the second quarter of 2006. During the first quarter of 2007, the Company increased its debt level primarily to finance its self-tender and repurchase of 19.1 million shares. Accordingly, interest expense in the second quarter of 2007 was $29.0 million, up from $11.5 million in the second quarter of 2006, while fully diluted shares of the Company decreased to 79.4 million shares from 100.2 million shares in the second quarter of 2006.
First Half 2007 Results
For the first half of 2007, net revenues increased 18.5% or $122.6 million to $785.7 million, up from $663.1 million in the first half of 2006. Fully diluted earnings per share were $1.36 in the first half of 2007 versus $1.14 in the prior year period. Excluding from the first half of 2007 and the first half of 2006, $0.02 per share and $0.01 per share, respectively, of non- recurring expense associated with the early extinguishment of debt, fully diluted earnings per share were $1.38 for the first half of 2007 as compared to $1.15 in the prior year period, up 20%.
During the first half of 2007, net income was $111.8 million versus $114.9 million in the first half of 2006. As previously explained, during the first quarter of 2007, the Company increased its debt level. Accordingly, interest expense in the first half of 2007 was $54.3 million, up from $22.8 million in the first half of 2006, while average fully diluted shares of the Company decreased.
Commenting on results, David Kirchhoff, President and Chief Executive Officer, said, "I am pleased with our strong second quarter results which benefited from the continued positive impact of our Monthly Pass committment plan in North America, robust product sales around the world and the expanding awareness of our Weight Watchers Online internet product. We are now focused on taking meaningful steps to bring new energy to the brand with more effective and differentiated marketing, which we believe will support our continued growth into 2008 and beyond."
The Company raised the bottom end of its full year 2007 earnings guidance range, narrowing it to between $2.38 and $2.49 per fully diluted share, which excludes $0.02 per share of non-recurring expense associated with the early extinguishment of debt in the first quarter of 2007.