UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On August 4, 2020, WW International, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal quarter ended June 27, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information contained in Item 2.02 of this Current Report on Form 8-K, including the text of the press release attached as Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document or filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 4, 2020, the Company announced the appointment of Amy O’Keefe to serve as its Chief Financial Officer, effective October 1, 2020. Ms. O’Keefe, age 49, most recently was Chief Financial Officer of Drive DeVilbiss Healthcare Limited, a global manufacturer and distributor of medical products, from March 2017 to June 2020. She previously served as Chief Financial Officer of Savant Systems, LLC, a global designer and developer of home automation and control systems, from April 2015 to December 2016, and Chief Financial Officer of D&M Holdings Inc., a global designer and manufacturer of audio products, from January 2011 to July 2014. Prior to that time, Ms. O’Keefe held several corporate finance positions with The Black & Decker Corporation, including as Divisional Chief Financial Officer for certain divisions, and was a certified public accountant for Ernst & Young LLP. Ms. O’Keefe received a B.B.A. in Accounting from Loyola College.
The material terms of Ms. O’Keefe’s employment arrangement are as follows: (i) a base salary of $530,000 per year; (ii) eligibility for an annual, performance-based cash bonus with a target bonus percentage of 65% of her base salary (based solely on the Company’s overall performance) (with any such cash bonus for fiscal year 2020 to be pro-rated for time of service); (iii) a one-time, cash sign-on bonus of $200,000 repayable by Ms. O’Keefe if she voluntarily resigns or her employment is terminated for cause within one year of October 1, 2020; (iv) eligibility to participate in the Company’s executive profit sharing plan; and (v) eligibility to participate in the Company’s annual incentive equity award program with an initial, annual target aggregate grant amount value of 130% of base salary and, with respect to fiscal year 2020, a special award based on such percentage consistent with the 2020 annual award program for the Company’s senior executives (allocated 33.3% to stock options (the “Option Award”) and 66.7% to restricted stock units (the “RSU Award”)) (the “2020 Award”). The grant date of the 2020 Award shall be November 15, 2020, with the Option Award vesting in full on April 15, 2023 and the RSU Award vesting one-sixth on each of April 15th and October 15th of 2021, 2022 and 2023. The Option Award will expire on April 15, 2030. The number of shares underlying the Option Award will be based on the Black-Scholes value as of November 6, 2020 and the number of restricted stock units will be granted based on the closing price of the Company’s common stock (the “Common Stock”) as of November 6, 2020. The exercise price for the Option Award will be determined by the higher of the closing price per share of the Common Stock on November 13, 2020 and the average of the closing prices of shares of the Common Stock on the last five trading days preceding and including November 13, 2020. The other terms and conditions of the 2020 Award will generally be consistent with the 2020 annual award program for the Company’s senior executives.
In addition, Ms. O’Keefe will become party to a continuity agreement with the Company. The agreement will have an initial term from the date of execution until December 31, 2022 and will contain terms and conditions consistent with those set forth in the Company’s continuity agreements with Nicholas P. Hotchkin, Chief Financial Officer of the Company, and Michael F. Colosi, General Counsel and Secretary of the Company. Such terms and conditions are described in further detail in the Company’s Definitive Proxy Statement on Schedule 14A filed on April 2, 2020 on page 43 in the section of the “Compensation Discussion and Analysis” entitled “—Termination Payments upon a Change of Control” and on pages 64 through 66 under the heading “—Continuity Agreements” in the section entitled “Potential Payments upon Termination, Retirement or Change of Control.”
In the event of the termination of Ms. O’Keefe’s employment by the Company other than for cause, subject to the execution and non-revocation of a general release of claims, she shall be entitled to receive (i) continued payment of base salary for twelve (12) months (provided that if Ms. O’Keefe were to obtain subsequent employment at any point during such period, such payment would be reduced in an amount commensurate to her salary earnings, or eliminated altogether if her subsequent position had a higher salary rate) and (ii) Company payment for the employer contribution portion of her continued health coverage under the Company-sponsored health plans for twelve (12) months following such termination (provided that if Ms. O’Keefe were to become eligible to receive alternative health coverage from another employer, such payment would cease).
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Concurrent with the effectiveness of Ms. O’Keefe’s appointment, Mr. Hotchkin, age 54, will assume responsibility for all of the Company’s global markets and its Health Solutions business in his new role as the Company’s Chief Operating Officer, and will cease serving as the Company’s Chief Financial Officer, Operating Officer, North America and President, Emerging Markets. Mr. Hotchkin has served as the Company’s Chief Financial Officer since August 2012. In addition to his role as Chief Financial Officer, he was appointed as the Company’s Operating Officer, North America in March 2019 and the Company’s President, Emerging Markets in March 2018. He also served as a member of the Company’s former Interim Office of the Chief Executive Officer from September 2016 to July 2017. Prior to joining the Company, Mr. Hotchkin had spent several years at Staples, Inc., a global leader in the office supply industry. Most recently, Mr. Hotchkin served as Senior Vice President of Finance for the U.S. Retail division of Staples based in Massachusetts, a position he held from May 2010 to August 2012. Before assuming that position, he had been Senior Vice President of Finance and Treasurer of Staples, a position he held from November 2006 to April 2010. Prior to joining Staples, Mr. Hotchkin held several corporate finance positions with Delphi Corporation and General Motors Corporation including assignments in the United States, Asia and Europe. Mr. Hotchkin received a B.A. in Economics from Harvard College and an M.B.A. from the Harvard Business School.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
On July 29, 2020, the Board of Directors of the Company approved an amendment and restatement to the Company’s Bylaws to establish a role of Chief Operating Officer separate and distinct from the role of President. A copy of the such amended and restated portion to the Bylaws, effective as of October 1, 2020, is attached hereto as Exhibit 3.1 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
A copy of the Company’s press release announcing the appointments of Ms. O’Keefe as the Company’s Chief Financial Officer and Mr. Hotchkin as the Company’s Chief Operating Officer has been furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in Item 7.01 of this Current Report on Form 8-K, including the text of the press release attached as Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. The information contained in Item 7.01 and Exhibit 99.2 of this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document or filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item 7.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information in this report that is provided in connection with Regulation FD.
Item 9.01. Financial Statements and Exhibits.
| (d) Exhibits. |
| Exhibit |
Description | |
| Exhibit 3.1 | Amended and Restated portion to the Bylaws of WW International, Inc. (effective October 1, 2020). | |
| Exhibit 99.1 | Press Release dated August 4, 2020 regarding financial results. | |
| Exhibit 99.2 | Press Release dated August 4, 2020 regarding Ms. O’Keefe and Mr. Hotchkin. | |
| Exhibit 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WW INTERNATIONAL, INC. | ||||
| DATED: August 4, 2020 | By: | /s/ Michael F. Colosi | ||
| Name: | Michael F. Colosi | |||
| Title: | General Counsel and Secretary | |||
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Exhibit 3.1
AMENDED AND RESTATED
BYLAWS
of
WW INTERNATIONAL, INC.
(effective as of October 1, 2020)
ARTICLE I
MEETINGS OF SHAREHOLDERS
Section 1.1. Place of Meetings.
Except as otherwise provided in the Amended and Restated Articles of Incorporation (hereinafter called the “Articles”) of WW International, Inc. (hereinafter called the “Corporation”), all meetings of the shareholders of the Corporation shall be held (i) at such places, either within or without the Commonwealth of Virginia, or (ii) in the case of virtual-only meetings, at no physical place but solely by means of remote communication, in each case, as the Board of Directors of the Corporation (hereinafter called the “Board”) may in its discretion determine.
Section 1.2. Annual Meetings.
The annual meeting of the shareholders of the Corporation for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held in each year on such day as may be fixed by the Board, at such hour as may be specified in the notice thereof.
Section 1.3. Notice of Meetings.
Except as otherwise provided by law or the Articles, not less than 10 nor more than 60 days’ notice in writing of the place (if any), day, hour and purpose or purposes of each meeting of the shareholders, whether annual or special, shall be given to each shareholder of record of the Corporation entitled to vote at such meeting. Notice of a shareholders’ meeting to act on an amendment of the Articles, a plan of merger or share exchange, a proposed sale of all, or substantially all of the Corporation’s assets, otherwise than in the usual and regular course of business, or the dissolution of the Corporation shall be given not less than 25 nor more than 60 days before the date of the meeting and shall be accompanied, as appropriate, by a copy of the proposed amendment, plan of merger or share exchange or sale agreement. Notice of any meeting of shareholders shall not be required to be given to any shareholder who shall attend the meeting in person or by proxy, unless attendance is for the express purpose of objecting to the transaction of any business because the meeting was not lawfully called or convened, or who shall waive notice thereof in a writing signed by the shareholder before, at or after such meeting. Notice of any adjourned meeting need not be given, except when expressly required by law.
Section 1.4. Quorum.
Shares representing a majority of the votes entitled to be cast on a matter by all classes or series that are entitled to vote thereon and be counted together collectively, represented in person or by proxy at any meeting of the shareholders, shall constitute a quorum for the transaction of business thereat with respect to such matter, unless otherwise provided by law or the Articles. In the absence of a quorum at
any such meeting or any adjournment or adjournments thereof, the chairman of such meeting or the holder of shares representing a majority of the votes cast on the matter of adjournment, either in person or by proxy, may adjourn such meeting from time to time until a quorum is obtained. At any such adjourned meeting at which a quorum has been obtained, any business may be transacted that might have been transacted at the meeting as originally called.
Section 1.5. Organization and Order of Business.
At all meetings of the shareholders, the Chairman of the Board or, in the Chairman’s absence, such director of the Corporation as designated in writing by the Chairman of the Board shall act as chairman. In the absence of all of the foregoing persons, or, if present, with their consent, a majority of the shares entitled to vote at such meeting, may appoint any person to act as chairman. The Secretary of the Corporation shall act as secretary at all meetings of the shareholders. In the absence of the Secretary, the chairman may appoint any person to act as secretary of the meeting.
The chairman shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts and things as are necessary or desirable for the proper conduct of the meeting, including, without limitation, the establishment of procedures for the dismissal of business not properly presented, the maintenance of order and safety, limitations on the time allotted to questions or comments on the affairs of the Corporation, restrictions on entry to such meeting after the time prescribed for the commencement thereof and the opening and closing of the voting polls.
At each annual meeting of shareholders, only such business shall be conducted as shall have been properly brought before the meeting (a) by or at the direction of the Board or (b) by any shareholder of the Corporation who shall be entitled to vote at such meeting and who complies with the notice procedures set forth in this Section 1.5. In addition to any other applicable requirements, for business to be properly brought before an annual meeting by a shareholder, the shareholder must have given timely notice thereof in writing to the Secretary of the Corporation. To be timely, a shareholder’s notice must be given, either by personal delivery or by United States certified mail, postage prepaid, and received at the principal executive offices of the Corporation (i) not less than 120 days nor more than 150 days before the first anniversary of the date of the Corporation’s proxy statement in connection with the last annual meeting of shareholders or (ii) if no annual meeting was held in the previous year or the date of the applicable annual meeting has been changed by more than 30 days from the date of the previous year’s annual meeting, not less than 60 days before the date of the applicable annual meeting. A shareholder’s notice to the Secretary shall set forth as to each matter the shareholder proposes to bring before the annual meeting (a) a brief description of the business desired to be brought before the annual meeting, including the complete text of any resolutions to be presented at the annual meeting, and the reasons for conducting such business at the annual meeting, (b) the name and address, as they appear on the Corporation’s stock transfer books, of such shareholder proposing such business, (c) a representation that such shareholder is a shareholder of record and intends to appear in person or by proxy at such meeting to bring the business before the meeting specified in the notice, (d) the class, series and number of shares of stock of the Corporation beneficially owned by the shareholder and (e) any material interest of the shareholder in such business. The Secretary of the Corporation shall deliver each such shareholder’s notice that has been timely received to the Board or a committee designated by the Board for review. Notwithstanding the foregoing, at any time that Artal Luxembourg S.A. (“Artal”) or a Majority Transferee owns a majority of the then outstanding shares of common stock, no par value (the “Common Stock”), of the Corporation, notice by Artal or a Majority Transferee shall be timely and complete if delivered in writing or orally at any time prior to the annual meeting. Notwithstanding anything in the Bylaws to the contrary, no business shall be conducted at an annual meeting except in
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accordance with the procedures set forth in this Section 1.5. The chairman of an annual meeting shall, if the facts warrant, determine that the business was not brought before the meeting in accordance with the procedures prescribed by this Section 1.5. If the chairman should so determine, he shall so declare to the meeting and the business not properly brought before the meeting shall not be transacted. Notwithstanding the foregoing provisions of this Section 1.5, a shareholder seeking to have a proposal included in the Corporation’s proxy statement shall comply with the requirements of Regulation 14A under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including, but not limited to, Rule 14a-8 or its successor provision. For purposes of these Bylaws, “Majority Transferee” shall mean a transferee from Artal or any other Majority Transferee of a majority of the then outstanding shares of Common Stock that pursuant to an instrument of transfer or related agreement has been granted rights under such provision by Artal or such transferring Majority Transferee. For purposes of these Bylaws, the word “own” shall mean “beneficially own” as determined pursuant to Rule 13d-3 (or any successor provision thereto) under the Exchange Act.
Section 1.6. Voting.
Unless otherwise provided by law or the Articles, at each meeting of the shareholders each shareholder entitled to vote at such meeting may vote either in person or by proxy in writing. Unless demanded by a shareholder present in person or represented by proxy at any meeting of the shareholders and entitled to vote thereon or so directed by the chairman of the meeting, the vote on any matter need not be by ballot. On a vote by ballot, each ballot shall be signed by the shareholder voting or his proxy, and it shall show the number of shares voted.
Section 1.7. Written Authorization.
A shareholder or a shareholder’s duly authorized attorney-in-fact may execute a writing authorizing another person or persons to act for him as proxy. Execution may be accomplished by the shareholder or such shareholder’s duly authorized attorney-in-fact or authorized officer, director, employee or agent signing such writing or causing such shareholder’s signature to be affixed to such writing by any reasonable means including, but not limited to, by facsimile signature.
Section 1.8. Electronic Authorization.
The Secretary may approve procedures to enable a shareholder or a shareholder’s duly authorized attorney-in-fact to authorize another person or persons to act for him as proxy by transmitting or authorizing the transmission of a telephone transmission or an electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service organization or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that any such transmission must either set forth or be submitted with information from which the judges or inspectors of election can determine that the transmission was authorized by the shareholder or the shareholder’s duly authorized attorney-in-fact. If it is determined that such transmissions are valid, the judges or inspectors shall specify the information upon which they relied. Any copy, facsimile telecommunication or other reliable reproduction of the writing or transmission created pursuant to this Section 1.8 may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission.
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Section 1.9. Judges.
One or more judges or inspectors of election for any meeting of shareholders may be appointed by the chairman of such meeting, for the purpose of receiving and taking charge of proxies and ballots and deciding all questions as to the qualification of voters, the validity of proxies and ballots and the number of votes properly cast.
ARTICLE II
BOARD OF DIRECTORS
Section 2.1. General Powers and Number.
The property, business and affairs of the Corporation shall be managed under the direction of the Board as from time to time constituted. The Board shall consist of nine directors, but the number of directors may be increased to any number, not more than 15 directors, or decreased to any number, not fewer than three directors, by resolution of the Board, provided that no decrease in the number of directors shall shorten or terminate the term of any incumbent director. No director need be a shareholder.
Section 2.2. Nomination and Election of Directors.
At each annual meeting of shareholders, the shareholders entitled to vote shall elect the directors. No person shall be eligible for election as a director unless nominated in accordance with the procedures set forth in this Section 2.2. Nominations of persons for election to the Board may be made by the Board or any committee designated by the Board or by any shareholder entitled to vote for the election of directors at the applicable meeting of shareholders who complies with the notice procedures set forth in this Section 2.2. Such nominations, other than those made by the Board or any committee designated by the Board, may be made only if written notice of a shareholder’s intent to nominate one or more persons for election as directors at the applicable meeting of shareholders has been given, either by personal delivery or by United States certified mail, postage prepaid, to the secretary of the Corporation and received (i) not less than 120 days nor more than 150 days before the first anniversary of the date of the Corporation’s proxy statement in connection with the last annual meeting of shareholders, (ii) if no annual meeting was held in the previous year or the date of the applicable annual meeting has been changed by more than 30 days from the date of the previous year’s annual meeting, not less than 60 days before the date of the applicable annual meeting, or (iii) with respect to any special meeting of shareholders called for the election of directors, not later than the close of business on the seventh day following the date on which notice of such meeting is first given to shareholders. Each such shareholder’s notice shall set forth (a) as to the shareholder giving the notice, (i) the name and address, as they appear on the Corporation’s stock transfer books, of such shareholder, (ii) a representation that such shareholder is a shareholder of record and intends to appear in person or by proxy at such meeting to nominate the person or persons specified in the notice, (iii) the class and number of shares of stock of the Corporation beneficially owned by such shareholder and (iv) a description of all arrangements or understandings between such shareholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by such shareholder; and (b) as to each person whom the shareholder proposes to nominate for election as a director, (i) the name, age, business address and, if known, residence address of such person, (ii) the principal occupation or employment of such person, (iii) the class and number of shares of stock of the Corporation that are beneficially owned by such person, (iv) any other information relating to such person that is required to be disclosed in solicitations of proxies for election of directors or is otherwise required by the rules and regulations of the Securities and Exchange Commission promulgated under the
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Exchange Act and (v) the written consent of such person to be named in the proxy statement as a nominee and to serve as a director if elected. The Secretary of the Corporation shall deliver each such shareholder’s notice that has been timely received to the Board or a committee designated by the Board for review. Notwithstanding the foregoing, at any time that Artal or any Artal Transferee owns a majority of the then outstanding Common Stock, notice by Artal or any Artal Transferee shall be timely and complete if delivered in writing or orally at least five business days prior to the date the Corporation mails its proxy statement in connection with such meeting of shareholders. Any person nominated for election as director by the Board or any committee designated by the Board shall, upon the request of the Board or such committee, furnish to the Secretary of the Corporation all such information pertaining to such person that is required to be set forth in a shareholder’s notice of nomination. The chairman of the meeting of shareholders shall, if the facts warrant, determine that a nomination was not made in accordance with the procedures prescribed by this Section 2.2. If the chairman should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded. For purposes of these Bylaws, “Artal Transferee” shall mean a transferee from Artal or any other Artal Transferee that pursuant to a negotiated instrument of transfer or related agreement has been granted rights by Artal or such transferring Artal Transferee under the provisions of Article II of the Corporate Agreement, dated as of November 5, 2001, between the Corporation and Artal.
Section 2.3. Compensation.
Each director, in consideration of such director’s serving as such, shall be entitled to receive from the Corporation such amount per annum or such fees for attendance at Board and committee meetings, or both, in cash or other property, including securities of the Corporation, as the Board shall from time to time determine, together with reimbursements for the reasonable expenses incurred by such director in connection with the performance of such director’s duties. Nothing contained herein shall preclude any director from serving the Corporation, or any subsidiary or affiliated corporation, in any other capacity and receiving proper compensation therefor. If the Board adopts a resolution to that effect, any director may elect to defer all or any part of the annual and other fees hereinabove referred to for such period and on such terms and conditions as shall be permitted by such resolution.
Section 2.4. Place of Meetings.
The Board may hold its meetings at such place or places within or without the Commonwealth of Virginia as it may from time to time by resolution determine or as shall be specified or fixed in the respective notices or waivers of notice thereof.
Section 2.5. Organizational Meeting.
As soon as practicable after each annual election of directors, the newly constituted Board shall meet for the purposes of organization. At such organizational meeting, the newly constituted Board shall elect officers of the Corporation and transact such other business as shall come before the meeting. Any organizational meeting may be held at any time or place designated by the Board from time to time.
Section 2.6. Regular Meetings.
Regular meetings of the Board may be held at such time and place as may from time to time be specified in a resolution adopted by the Board then in effect, and, unless otherwise required by such resolution, or by law, notice of any such regular meeting need not be given.
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Section 2.7. Special Meetings.
Special meetings of the Board shall be held whenever called by the Chairman of the Board or by the Secretary at the request of any two or more of the directors then in office. Notice of a special meeting shall be mailed to each director, addressed to him at his residence or usual place of business, not later than the third day before the day on which such meeting is to be held, or shall be given by electronic transmission as previously consented to by the director to whom notice is given, or be delivered personally or by telephone, not later than the day before the day on which such meeting is to be held. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board need be specified in the notice of such meeting, unless required by the Articles.
Section 2.8. Quorum.
At each meeting of the Board the presence of a majority of the number of directors fixed in accordance with these Bylaws shall be necessary to constitute a quorum. The act of a majority of the directors present at a meeting at which a quorum shall be present shall be the act of the Board, except as may be otherwise provided by law or by these Bylaws. Any meeting of the Board may be adjourned by a majority vote of the directors present at such meeting. Notice of any adjourned meeting need not be given.
Section 2.9. Waivers of Notice of Meetings.
Notwithstanding anything in these Bylaws or in any resolution adopted by the Board to the contrary, notice of any meeting of the Board need not be given to any director if such notice shall be waived in writing signed by such director before, at or after the meeting, or if such director shall be present at the meeting. Any meeting of the Board shall be a legal meeting without any notice having been given or regardless of the giving of any notice or the adoption of any resolution in reference thereto, if every member of the Board shall be present thereat. Except as otherwise provided by law or these Bylaws, waivers of notice of any meeting of the Board need not contain any statement of the purpose of the meeting.
Section 2.10. Telephone Meetings.
Members of the Board or any committee may participate in a meeting of the Board or such committee by means of a conference telephone or other means of communication whereby all directors participating may simultaneously hear each other during the meeting, and participation by such means shall constitute presence in person at such meeting.
Section 2.11. Actions Without Meetings.
Any action that may be taken at a meeting of the Board or of a committee may be taken without a meeting if a consent in writing, setting forth the action, shall be signed, either before or after such action, by all of the directors or all of the members of the committee, as the case may be. Such consent shall have the same force and effect as a unanimous vote.
Section 2.12. Creation of Committees.
In addition to the executive committee authorized by Article III of these Bylaws, to the extent permitted by law, the Board may from time to time by resolution adopted by a majority of the number of directors then in office create such other committees of directors as the Board shall deem advisable and with such limited authority, functions and duties as the Board shall by resolution prescribe. The Board shall have the power to change the members of any such committee at any time, to fill vacancies, and to discharge any such committee, either with or without cause, at any time.
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ARTICLE III
EXECUTIVE COMMITTEE
Section 3.1. How Constituted and Powers.
The Board, by resolution adopted pursuant to Article II, Section 2.12 hereof, may designate one or more directors to constitute an executive committee, who shall serve at the pleasure of the Board. The executive committee, to the extent provided in such resolution and permitted by law, shall have and may exercise all of the authority of the Board.
Section 3.2. Organization, Etc.
The executive committee may choose a chairman and secretary. The executive committee shall keep a record of its acts and proceedings and report the same from time to time to the Board.
Section 3.3. Meetings.
Meetings of the executive committee may be called by any member of the committee. Notice of each such meeting, which need not specify the business to be transacted thereat, shall be mailed to each member of the committee, addressed to his or her residence or usual place of business, at least two days before the day on which the meeting is to be held or shall be given by electronic transmission as previously consented to by the director to whom notice is given, or be delivered personally or by telephone, not later than the day before the day on which the meeting is to be held.
Section 3.4. Quorum and Manner of Acting.
A majority of the executive committee shall constitute a quorum for transaction of business, and the act of a majority of those present at a meeting at which a quorum is present shall be the act of the executive committee. The members of the executive committee shall act only as a committee, and the individual members shall have no powers as such.
Section 3.5. Removal.
Any member of the executive committee may be removed, with or without cause, at any time, by the Board.
Section 3.6. Vacancies.
Any vacancy in the executive committee shall be filled by the Board.
ARTICLE IV
OFFICERS
Section 4.1. Number, Term, Election.
The officers of the Corporation shall be a Chairman of the Board, a President, a Secretary and a Treasurer. The Board may appoint such other officers and such assistant officers and agents with such powers and duties as the Board may find necessary or convenient to carry on the business of the
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Corporation. Such officers and assistant officers shall serve until their successors shall be elected and qualify, or as otherwise provided in these Bylaws. Any two or more offices may be held by the same person.
Section 4.2. Chairman of the Board.
The Chairman of the Board shall, subject to the control of the Board, have full authority and responsibility for directing the conduct of the business, affairs and operations of the Corporation and shall preside at all meetings of the Board and of the shareholders. The Chairman of the Board shall perform such other duties and exercise such other powers as may from time to time be prescribed by the Board.
Section 4.3. President.
The President shall have such powers and perform such duties as may from time to time be prescribed by the Board or by the Chairman of the Board. The President may sign and execute in the name of the Corporation deeds, contracts and other instruments, except in cases where the signing and the execution thereof shall be expressly delegated by the Board or by these Bylaws to some other officer or agent of the Corporation or shall be required by law otherwise to be signed or executed.
Section 4.4. Vice Presidents.
Each Vice President, if any, shall have such powers and perform such duties as may from time to time be prescribed by the Board, the Chairman of the Board, the President or any officer to whom the Chairman of the Board or the President may have delegated such authority. Any Vice President of the Corporation may sign and execute in the name of the Corporation deeds, contracts and other instruments, except in cases where the signing and execution thereof shall be expressly delegated by the Board or by these Bylaws to some other officer or agent of the Corporation or shall be required by law otherwise to be signed or executed.
Section 4.5. Treasurer.
The Treasurer shall have such powers and perform such duties as may from time to time be prescribed by the Board, the Chairman of the Board, the President or any officer to whom the Chairman of the Board or the President may have delegated such authority. If the Board shall so determine, the Treasurer shall give a bond for the faithful performance of the duties of the office of the Treasurer, in such sum as the Board may determine to be proper, the expense of which shall be borne by the Corporation. To such extent as the Board shall deem proper, the duties of the Treasurer may be performed by one or more assistants, to be appointed by the Board.
Section 4.6. Secretary.
The Secretary shall keep the minutes of meetings of shareholders, of the Board, and, when requested, of committees of the Board, and shall attend to the giving and serving of notices of all meetings thereof. The Secretary shall keep or cause to be kept such stock transfer and other books, showing the names of the shareholders of the Corporation, and all other particulars regarding them, as may be required by law. The Secretary shall also perform such other duties and exercise such other powers as may from time to time be prescribed by the Board, the Chairman of the Board, the President or any officer to whom the Chairman of the Board or the President may have delegated such authority. To such extent as the Board shall deem proper, the duties of the Secretary may be performed by one or more assistants, to be appointed by the Board.
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ARTICLE V
REMOVALS AND RESIGNATIONS
Section 5.1. Removal of Officers.
Any officer, assistant officer or agent of the Corporation may be removed at any time, either with or without cause, by the Board in its absolute discretion. Any officer or agent appointed otherwise than by the Board may be removed at any time, either with or without cause, by any officer having authority to appoint such an officer or agent, except as may be otherwise provided in these Bylaws. Any such removal shall be without prejudice to the recovery of damages for breach of the contract rights, if any, of the officer, assistant officer or agent removed. Election or appointment of an officer, assistant officer or agent shall not of itself create contract rights.
Section 5.2. Resignation.
Any director, officer or assistant officer of the Corporation may resign as such at any time by giving written notice of his resignation to the Board, the Chairman of the Board or the Secretary of the Corporation. Such resignation shall take effect at the time specified therein or, if no time is specified therein, at the time of delivery thereof, and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.
Section 5.3. Vacancies.
Any vacancy in the office of any officer or assistant officer caused by death, resignation, removal or any other cause, may be filled by the Board for the unexpired portion of the term.
ARTICLE VI
CONTRACTS, LOANS, CHECKS, DRAFTS, DEPOSITS, ETC.
Section 6.1. Execution of Contracts.
Except as otherwise provided by law or by these Bylaws, the Board (i) may authorize any officer, employee or agent of the Corporation to execute and deliver any contract, agreement or other instrument in writing in the name and on behalf of the Corporation, and (ii) may authorize any officer, employee or agent of the Corporation so authorized by the Board to delegate such authority by written instrument to other officers, employees or agents of the Corporation. Any such authorization by the Board may be general or specific and shall be subject to such limitations and restrictions as may be imposed by the Board. Any such delegation of authority by an officer, employee or agent may be general or specific, may authorize re-delegation, and shall be subject to such limitations and restrictions as may be imposed in the written instrument of delegation by the person making such delegation.
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Section 6.2. Loans.
No loans shall be contracted on behalf of the Corporation and no negotiable paper shall be issued in its name unless authorized by the Board. When authorized by the Board, any officer, employee or agent of the Corporation may effect loans and advances at any time for the Corporation from any bank, trust company or other institution, or from any firm, corporation or individual, and for such loans and advances may make, execute and deliver promissory notes, bonds or other certificates or evidences of indebtedness of the Corporation and when so authorized may pledge, hypothecate or transfer any securities or other property of the Corporation as security for any such loans or advances. Such authority may be general or confined to specific instances.
Section 6.3. Checks, Drafts, etc.
All checks, drafts and other orders for the payment of money out of the funds of the Corporation and all notes or other evidences of indebtedness of the Corporation shall be signed on behalf of the Corporation in such manner as shall from time to time be determined by the Board.
Section 6.4. Deposits.
All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such banks, trust companies or other depositories as the Board may select or as may be selected by the Treasurer or any other officer, employee or agent of the Corporation to whom such power may from time to time be delegated by the Board.
Section 6.5. Voting of Securities.
Unless otherwise provided by the Board, the President may from time to time appoint an attorney or attorneys, or agent or agents of the Corporation, in the name and on behalf of the Corporation, to cast the votes that the Corporation may be entitled to cast as the holder of stock or other securities in any other corporation or other entity, any of whose stock or other securities may be held by the Corporation, at meetings of the holders of the stock or other securities of such other corporation or other entity, or to consent in writing, in the name of the Corporation as such holder, to any action by such other corporation or other entity, and may instruct the person or persons so appointed as to the manner of casting such votes or giving such consent, and may execute or cause to be executed in the name and on behalf of the Corporation and under its corporate seal, or otherwise, all such written proxies or other instruments as such officer may deem necessary or proper in the premises.
ARTICLE VII
CAPITAL STOCK
Section 7.1. Shares.
Shares of the Corporation may but need not be represented by certificates.
When shares are represented by certificates, the Corporation shall issue such certificates in such form as shall be required by the Virginia Stock Corporation Act (the “VSCA”) and as determined by the Board, to every shareholder for the fully paid shares owned by such shareholder. Each certificate shall be signed by, or shall bear the facsimile signature of, the Chairman of the Board or the President and the Secretary or an Assistant Secretary of the Corporation and may bear the corporate seal of the Corporation or its facsimile. All certificates for the Corporation’s shares shall be consecutively numbered or otherwise identified.
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The name and address of the person to whom shares (whether or not represented by a certificate) are issued, with the number of shares and date of issue, shall be entered on the share transfer books of the Corporation. Such information may be stored or retained on discs, tapes, cards or any other approved storage device relating to data processing equipment; provided that such device is capable of reproducing all information contained therein in legible and understandable form, for inspection by shareholders or for any other corporate purpose.
When shares are not represented by certificates, then within a reasonable time after the issuance or transfer of such shares, the Corporation shall send the shareholder to whom such shares have been issued or transferred a written statement of the information required by the VSCA to be included on certificates.
Section 7.2. Stock Transfer Books and Transfer of Shares.
The Corporation, or its designated transfer agent or other agent, shall keep a book or set of books to be known as the stock transfer books of the Corporation, containing the name of each shareholder of record, together with such shareholder’s address and the number and class or series of shares held by such shareholder. Shares of stock of the Corporation shall be transferable on the stock books of the Corporation by the holder in person or by his attorney thereunto authorized by power of attorney duly executed and filed with the Secretary or the transfer agent, but, except as hereinafter provided in the case of loss, destruction or mutilation of certificates, no transfer of stock shall be entered until the previous certificate, if any, given for the same shall have been surrendered and canceled. Transfer of shares of the Corporation represented by certificates shall be made on the stock transfer books of the Corporation only upon surrender of the certificates for the shares sought to be transferred by the holder of record thereof or by such holder’s duly authorized agent, transferee or legal representative, who shall furnish proper evidence of authority to transfer with the Secretary of the Corporation or its designated transfer agent or other agent. All certificates surrendered for transfer shall be canceled before new certificates for the transferred shares shall be issued. Except as otherwise provided by law, no transfer of shares shall be valid as against the Corporation, its shareholders or creditors, for any purpose, until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom transferred.
Section 7.3. Holder of Record.
Except as otherwise required by the VSCA, the Corporation may treat the person in whose name shares of stock of the Corporation (whether or not represented by a certificate) stand of record on its books or the books of any transfer agent or other agent designated by the Board as the absolute owner of the shares and the person exclusively entitled to receive notification and distributions, to vote, and to otherwise exercise the rights, powers and privileges of ownership of such shares.
Section 7.4. Record Date.
For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board may fix in advance a date as the record date for any such determination of shareholders, such date in any case to be not more than 70 days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken. When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this section, such determination shall apply to any adjournment thereof unless the Board fixes a new record date, which it shall do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.
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Section 7.5. Lost, Destroyed or Mutilated Certificates.
In case of loss, destruction or mutilation of any certificate of stock, another may be issued in its place upon proof of such loss, destruction or mutilation and upon the giving of a bond of indemnity to the Corporation in such form and in such sum as the Board may direct; provided that a new certificate may be issued without requiring any bond when, in the judgment of the Board, it is proper so to do.
Section 7.6. Transfer Agent and Registrar; Regulations.
The Corporation may, if and whenever the Board so determines, maintain in the Commonwealth of Virginia or any other state of the United States, one or more transfer offices or agencies and also one or more registry offices which offices and agencies may establish rules and regulations for the issue, transfer and registration of certificates. No certificates for shares of stock of the Corporation in respect of which a transfer agent and registrar shall have been designated shall be valid unless countersigned by such transfer agent and registered by such registrar. The Board may also make such additional rules and regulations as it may deem expedient concerning the issue, transfer and registration of shares represented by certificates and shares without certificates.
ARTICLE VIII
SEAL
The seal of the Corporation shall be a flat-face circular die, of which there may be any number of counterparts of facsimiles, in such form as the Board shall from time to time adopt as the corporate seal of the Corporation.
EMERGENCY BYLAWS
Section 1. Definitions.
As used in these Emergency Bylaws, (a) the term “period of emergency” shall mean any period during which a quorum of the Board cannot readily be assembled because of some catastrophic event.
(b) the term “incapacitated” shall mean that the individual to whom such term is applied shall not have been determined to be dead but shall be missing or unable to discharge the responsibilities of his office; and
(c) the term “senior officer” shall mean the Chairman of the Board, the President, any Vice President, the Treasurer and the Secretary, and any other person who may have been so designated by the Board before the emergency.
Section 2. Applicability.
These Emergency Bylaws, as from time to time amended, shall be operative only during any period of emergency. To the extent not inconsistent with these Emergency Bylaws, all provisions of the regular Bylaws of the Corporation shall remain in effect during any period of emergency.
No officer, director or employee shall be liable for actions taken in good faith in accordance with these Emergency Bylaws.
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Section 3. Board of Directors.
(a) A meeting of the Board may be called by any director or senior officer of the Corporation. Notice of any meeting of the Board need be given only to such of the directors as it may be feasible to reach at the time and by such means as may be feasible at the time, including publication or radio, and at a time less than twenty-four hours before the meeting if deemed necessary by the person giving notice.
(b) At any meeting of the Board, three directors in attendance shall constitute a quorum. Any act of a majority of the directors present at a meeting at which a quorum shall be present shall be the act of the Board. If less than three directors should be present at a meeting of the Board, any senior officer of the Corporation in attendance at such meeting shall serve as a director for such meeting, selected in order of rank and within the same rank in order of seniority.
(c) In addition to the Board’s powers under the regular Bylaws of the Corporation to fill vacancies on the Board, the Board may elect any individual as a director to replace any director who may be incapacitated to serve until the latter ceases to be incapacitated or until the termination of the period of emergency, whichever first occurs. In considering officers of the Corporation for election to the Board, the rank and seniority of individual officers shall not be pertinent.
(d) The Board, during as well as before any such emergency, may change the principal office or designate several alternative offices or authorize the officers to do so.
Section 4. Appointment of Officers.
In addition to the Board’s powers under the regular Bylaws of the Corporation with respect to the election of officers, the Board may elect any individual as an officer to replace any officer who may be incapacitated to serve until the latter ceases to be incapacitated.
Section 5. Amendments.
These Emergency Bylaws shall be subject to repeal or change by further action of the Board or by action of the shareholders, except that no such repeal or change shall modify the provisions of the second paragraph of Section 2 with regard to action or inaction prior to the time of such repeal or change. Any such amendment of these Emergency Bylaws may make any further or different provision that may be practical and necessary for the circumstances of the emergency.
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Exhibit 99.1
For more information, contact:
Investors:
Corey Kinger
VP Investor Relations
212.601.7569
Media:
Nicole Penn
VP Corporate Communications
917.734.0802
WW Announces Second Quarter 2020 Results with Record Digital Subscribers
| • | Q2 2020 End of Period Subscribers up 9% year-over-year to 5.0 million, an all-time Q2-end high |
| • | Q2 2020 End of Period Digital Subscribers at all-time high and up 23% year-over-year |
| • | Q2 2020 Revenues of $334 million, down 10%, or 9% on a constant currency basis, year-over-year due to studio closures |
| • | Q2 2020 Gross Margin of 58%; excluding one-time charges, Q2 2020 adjusted gross margin of 60%, the highest level in 8 years |
NEW YORK (August 4, 2020) – WW International, Inc. (NASDAQ: WW) today announced its results for the second quarter of fiscal 2020.
“We ended the quarter with our highest-ever Q2 subscriber base of 5.0 million, driven by a record level of digital subscribers, which were up 23% year-over-year. These milestones combined with the strength in digital revenues and our high margins are all testament to the work of our teams and talent around the world,” said Mindy Grossman, the Company’s President and CEO. “The impact of our accelerated digital transformation is evident in our second quarter results and will continue to be a key driver of our future growth and profitability. Creating exciting new coaching experiences, adding new digital features and producing creative content that is insightful, interactive and engaging will greatly increase our ability to attract new members to WW, retain them longer, help them achieve their weight loss and wellness goals, and deliver on our mission to democratize wellness for all.”
“Our second quarter results demonstrate the benefits of our digital focus with strength in digital revenues, ecommerce, and gross margin,” said Nick Hotchkin, the Company’s CFO, Operating Officer, North America and President, Emerging Markets. “While our Q2 2020 GAAP EPS was $0.20, excluding one-time charges in the quarter, adjusted EPS was $0.67, demonstrating strong performance despite the COVID-19 environment. We are nimbly managing our studio cost structure and are on-track to deliver on our $100 million cost-savings initiative, while maintaining strong liquidity and financial flexibility.”
Q2 2020 Consolidated Results
| Three Months Ended | % Change | % Change Adjusted for Constant Currency(1) |
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| (in millions except percentages and per share amounts) | June 27, 2020 |
June 29, 2019 |
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| Service Revenues, net |
$ | 293.0 | $ | 313.8 | (6.6% | ) | (5.7% | ) | ||||||||
| Product Sales and Other, net |
40.6 | 55.3 | (26.5% | ) | (25.7% | ) | ||||||||||
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| Revenues, net |
$ | 333.6 | $ | 369.0 | (9.6% | ) | (8.7% | ) | ||||||||
| Gross Profit |
194.7 | 215.8 | (9.8% | ) | (8.8% | ) | ||||||||||
| Adjustments |
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| 2020 Restructuring Charges |
$ | 6.5 | — | |||||||||||||
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| Adjusted Gross Profit(1) |
$ | 201.2 | $ | 215.8 | (6.8% | ) | (5.8% | ) | ||||||||
| Operating Income |
$ | 51.0 | $ | 105.5 | (51.7% | ) | (50.4% | ) | ||||||||
| Adjustments |
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| Winfrey Stock Compensation Expense |
$ | 32.7 | — | |||||||||||||
| 2020 Restructuring Charges |
$ | 11.2 | — | |||||||||||||
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| Adjusted Operating Income(1) |
$ | 94.9 | $ | 105.5 | (10.0% | ) | (8.7% | ) | ||||||||
| Net Income* |
$ | 14.0 | $ | 53.8 | (74.0% | ) | (72.1% | ) | ||||||||
| EPS |
$ | 0.20 | $ | 0.78 | (74.2% | ) | (72.4% | ) | ||||||||
| Total Paid Weeks |
63.9 | 60.8 | 5.1% | N/A | ||||||||||||
| Digital(2) Paid Weeks |
48.3 | 41.3 | 16.8% | N/A | ||||||||||||
| Studio + Digital(3) Paid Weeks |
15.6 | 19.5 | (19.7% | ) | N/A | |||||||||||
| End of Period Subscribers(4) |
5.0 | 4.6 | 8.6% | N/A | ||||||||||||
| Digital Subscribers |
3.9 | 3.2 | 23.2% | N/A | ||||||||||||
| Studio + Digital Subscribers |
1.1 | 1.4 | (24.2% | ) | 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. |
Q2 2020 Business and Financial Highlights
| • | End of Period Subscribers in Q2 2020 were up 8.6% versus the prior year period, driven by Digital subscriber growth across all major geographic markets. Q2 2020 End of Period Digital Subscribers were up 23.2% and End of Period Studio + Digital Subscribers were down 24.2% versus the prior year period. |
| • | Total Paid Weeks in Q2 2020 were up 5.1% versus the prior year period, driven by Digital growth across all major geographic markets. Q2 2020 Digital Paid Weeks increased 16.8% and Studio + Digital Paid Weeks decreased 19.7% versus the prior year period. |
| • | Revenues in Q2 2020 were $333.6 million. On a constant currency basis, Q2 2020 revenues decreased 8.7% versus the prior year period. |
| ¡ | Service Revenues in Q2 2020 were $293.0 million. On a constant currency basis, these revenues decreased 5.7% versus the prior year period, primarily driven by declines in Studio + Digital Fees as a result of the closure of our studios due to COVID-19. |
| ¡ | Product Sales and Other in Q2 2020 were $40.6 million. On a constant currency basis, these revenues decreased 25.7% versus the prior year period, primarily due to lower in-studio product sales as a result of the closure of our studios due to COVID-19. |
| • | Gross Profit in Q2 2020 was $194.7 million. Adjusted gross profit in Q2 2020 was $201.2 million, which excluded $6.5 million in charges associated with the Company’s previously disclosed 2020 organizational restructuring plan. On a constant currency basis, adjusted gross profit would have decreased 5.8% versus the prior year period. |
| ¡ | Gross Margin in Q2 2020 was 58.3% and adjusted gross margin was 60.3%. This compares to a gross margin of 58.5% in the prior year period. |
| • | Operating Income in Q2 2020 was $51.0 million. Adjusted operating income in Q2 2020 was $94.9 million, which excluded the $32.7 million 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 the $11.2 million in charges associated with the Company’s previously disclosed 2020 organizational restructuring plan. On a constant currency basis, adjusted operating income would have decreased 8.7% versus the prior year period. This decrease was due to lower revenues related to the Company’s Studio + Digital business. |
| ¡ | Operating Income Margin for Q2 2020 was 15.3% and adjusted operating income margin was 28.4%. This compares to an operating income margin of 28.6% in the prior year period. |
| • | Effective Tax Rate in Q2 2020 was 28.6%, versus 23.6% in the prior year period. |
| • | Net Income in Q2 2020 was $14.0 million compared to $53.8 million in the prior year period. |
| • | Earnings per fully diluted share (EPS) in Q2 2020 was $0.20 compared to $0.78 in the prior year period. |
| ¡ | Certain items affect year-over-year comparability. The following items in the aggregate negatively impacted Q2 2020 fully diluted EPS by $0.47: |
| ◾ | $0.35 per fully diluted share impact from the one-time stock compensation expense associated with the previously disclosed option granted to Ms. Winfrey in connection with the Company extending its partnership with Ms. Winfrey. |
| ◾ | $0.12 per fully diluted share impact from charges associated with the Company’s previously disclosed 2020 organizational restructuring plan. |
Other Items
| • | Cash balance as of June 27, 2020 was $150.4 million. On June 5, 2020, WW fully repaid the borrowings outstanding under its revolving credit facility, which it previously drew down in Q1 2020 as a precautionary measure in light of the COVID-19 outbreak. |
Second 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, and Nicholas Hotchkin, Chief Financial Officer, Operating Officer, North America & President, Emerging Markets, will discuss the second 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 earnings per fully diluted share are discussed both as reported (on a GAAP basis)
and, with respect to the second quarter of fiscal 2020, as adjusted (on a non-GAAP basis), to exclude the impact of the one-time stock compensation expense associated with the previously disclosed option granted to Ms. 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
| June 27, 2020 |
December 28, 2019 |
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| ASSETS |
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| Cash and cash equivalents |
$ | 150,409 | $ | 182,736 | ||||
| Other current assets |
127,229 | 112,654 | ||||||
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| TOTAL CURRENT ASSETS |
277,638 | 295,390 | ||||||
| Property and equipment, net |
60,924 | 54,066 | ||||||
| Operating lease assets |
140,723 | 151,983 | ||||||
| Goodwill, franchise rights and other intangible assets, net |
961,454 | 970,392 | ||||||
| Other assets |
28,801 | 26,483 | ||||||
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|
|
|||||
| TOTAL ASSETS |
$ | 1,469,540 | $ | 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 |
37,829 | 33,236 | ||||||
| Other current liabilities |
237,306 | 264,584 | ||||||
|
|
|
|
|
|||||
| TOTAL CURRENT LIABILITIES |
371,385 | 394,070 | ||||||
| Long-term debt |
1,444,360 | 1,479,920 | ||||||
| Long-term operating lease liabilities |
117,254 | 128,464 | ||||||
| Deferred income taxes, other |
182,085 | 177,681 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES |
$ | 2,115,084 | $ | 2,180,135 | ||||
|
|
|
|
|
|||||
| Redeemable noncontrolling interest |
3,609 | 3,722 | ||||||
| Shareholders’ deficit |
(649,153 | ) | (685,543 | ) | ||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND TOTAL DEFICIT |
$ | 1,469,540 | $ | 1,498,314 | ||||
|
|
|
|
|
|||||
WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
| Three Months Ended | ||||||||
| June 27, 2020 |
June 29, 2019 |
|||||||
| Service revenues, net (1) |
$ | 292,997 | $ | 313,768 | ||||
| Product sales and other, net (2) |
40,640 | 55,255 | ||||||
|
|
|
|
|
|||||
| Revenues, net |
333,637 | 369,023 | ||||||
|
|
|
|
|
|||||
| Cost of services (3) |
108,006 | 122,121 | ||||||
| Cost of product sales and other |
30,960 | 31,088 | ||||||
|
|
|
|
|
|||||
| Cost of revenues |
138,966 | 153,209 | ||||||
|
|
|
|
|
|||||
| Gross profit |
194,671 | 215,814 | ||||||
| Marketing expenses |
41,894 | 49,967 | ||||||
| Selling, general and administrative expenses |
101,792 | 60,374 | ||||||
|
|
|
|
|
|||||
| Operating income |
50,985 | 105,473 | ||||||
| Interest expense |
30,995 | 34,732 | ||||||
| Other expense, net |
416 | 438 | ||||||
|
|
|
|
|
|||||
| Income before income taxes |
19,574 | 70,303 | ||||||
| Provision for income taxes |
5,592 | 16,586 | ||||||
|
|
|
|
|
|||||
| Net income |
13,982 | 53,717 | ||||||
| Net loss attributable to the noncontrolling interest |
24 | 117 | ||||||
|
|
|
|
|
|||||
| Net income attributable to WW International, Inc. |
$ | 14,006 | $ | 53,834 | ||||
|
|
|
|
|
|||||
| Earnings Per Share attributable to WW International, Inc. |
||||||||
| Basic |
$ | 0.21 | $ | 0.80 | ||||
|
|
|
|
|
|||||
| Diluted |
$ | 0.20 | $ | 0.78 | ||||
|
|
|
|
|
|||||
| Weighted average common shares outstanding: |
||||||||
| Basic |
67,641 | 67,124 | ||||||
|
|
|
|
|
|||||
| Diluted |
69,799 | 69,141 | ||||||
|
|
|
|
|
|||||
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
| Six Months Ended | ||||||||
| June 27, 2020 |
June 29, 2019 |
|||||||
| Service revenues, net (1) |
$ | 617,654 | $ | 620,494 | ||||
| Product sales and other, net (2) |
116,344 | 111,694 | ||||||
|
|
|
|
|
|||||
| Revenues, net |
733,998 | 732,188 | ||||||
|
|
|
|
|
|||||
| Cost of services (3) |
243,572 | 251,078 | ||||||
| Cost of product sales and other |
84,764 | 64,347 | ||||||
|
|
|
|
|
|||||
| Cost of revenues |
328,336 | 315,425 | ||||||
|
|
|
|
|
|||||
| Gross profit |
405,662 | 416,763 | ||||||
| Marketing expenses |
159,828 | 164,216 | ||||||
| Selling, general and administrative expenses |
166,318 | 125,176 | ||||||
| Goodwill impairment |
3,665 | — | ||||||
|
|
|
|
|
|||||
| Operating income |
75,851 | 127,371 | ||||||
| Interest expense |
62,546 | 69,927 | ||||||
| Other expense, net |
438 | 741 | ||||||
|
|
|
|
|
|||||
| Income before income taxes |
12,867 | 56,703 | ||||||
| Provision for income taxes |
4,942 | 13,711 | ||||||
|
|
|
|
|
|||||
| Net income |
7,925 | 42,992 | ||||||
| Net loss attributable to the noncontrolling interest |
18 | 156 | ||||||
|
|
|
|
|
|||||
| Net income attributable to WW International, Inc. |
$ | 7,943 | $ | 43,148 | ||||
|
|
|
|
|
|||||
| Earnings Per Share attributable to WW International, Inc. |
||||||||
| Basic |
$ | 0.12 | $ | 0.64 | ||||
|
|
|
|
|
|||||
| Diluted |
$ | 0.11 | $ | 0.62 | ||||
|
|
|
|
|
|||||
| Weighted average common shares outstanding: |
||||||||
| Basic |
67,538 | 67,044 | ||||||
|
|
|
|
|
|||||
| Diluted |
69,898 | 69,268 | ||||||
|
|
|
|
|
|||||
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 | Variance | |||||||||||
| June 27, | June 29, | |||||||||||
| 2020 | 2019 | |||||||||||
| Digital Paid Weeks (1) | ||||||||||||
| North America |
30,439 | 26,027 | 17.0 | % | ||||||||
| CE |
13,941 | 11,992 | 16.3 | % | ||||||||
| UK |
3,010 | 2,536 | 18.7 | % | ||||||||
| Other (2) |
893 | 774 | 15.4 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Digital Paid Weeks |
48,282 | 41,329 | 16.8 | % | ||||||||
| Studio + Digital Paid Weeks (1) | ||||||||||||
| North America |
10,670 | 13,134 | (18.8 | %) | ||||||||
| CE |
2,568 | 3,094 | (17.0 | %) | ||||||||
| UK |
1,970 | 2,672 | (26.3 | %) | ||||||||
| Other (2) |
434 | 572 | (24.2 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Studio + Digital Paid Weeks |
15,642 | 19,473 | (19.7 | %) | ||||||||
| Total Paid Weeks (1) | ||||||||||||
| North America |
41,109 | 39,161 | 5.0 | % | ||||||||
| CE |
16,509 | 15,086 | 9.4 | % | ||||||||
| UK |
4,979 | 5,208 | (4.4 | %) | ||||||||
| Other (2) |
1,327 | 1,346 | (1.4 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Paid Weeks |
63,924 | 60,802 | 5.1 | % | ||||||||
| End of Period Digital Subscribers (3) | ||||||||||||
| North America |
2,475 | 1,996 | 24.0 | % | ||||||||
| CE |
1,105 | 914 | 20.8 | % | ||||||||
| UK |
250 | 195 | 28.1 | % | ||||||||
| Other (2) |
70 | 59 | 17.4 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total End of Period Digital Subscribers |
3,900 | 3,165 | 23.2 | % | ||||||||
| End of Period Studio + Digital Subscribers (3) | ||||||||||||
| North America |
734 | 945 | (22.3 | %) | ||||||||
| CE |
168 | 223 | (24.8 | %) | ||||||||
| UK |
134 | 192 | (30.3 | %) | ||||||||
| Other (2) |
28 | 43 | (35.8 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total End of Period Studio + Digital Subscribers |
1,063 | 1,403 | (24.2 | %) | ||||||||
| Total End of Period Subscribers (3) | ||||||||||||
| North America |
3,209 | 2,941 | 9.1 | % | ||||||||
| CE |
1,273 | 1,138 | 11.9 | % | ||||||||
| UK |
384 | 387 | (0.9 | %) | ||||||||
| Other (2) |
98 | 103 | (5.0 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total End of Period Subscribers |
4,963 | 4,568 | 8.6 | % | ||||||||
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
| Six Months Ended | Variance | |||||||||||
| June 27, | June 29, | |||||||||||
| 2020 | 2019 | |||||||||||
| Digital Paid Weeks (1) | ||||||||||||
| North America |
59,859 | 50,635 | 18.2 | % | ||||||||
| CE |
26,901 | 23,146 | 16.2 | % | ||||||||
| UK |
5,891 | 4,972 | 18.5 | % | ||||||||
| Other (2) |
1,836 | 1,566 | 17.3 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Digital Paid Weeks |
94,487 | 80,318 | 17.6 | % | ||||||||
| Studio + Digital Paid Weeks (1) | ||||||||||||
| North America |
23,634 | 26,378 | (10.4 | %) | ||||||||
| CE |
5,584 | 6,219 | (10.2 | %) | ||||||||
| UK |
4,584 | 5,388 | (14.9 | %) | ||||||||
| Other (2) |
1,027 | 1,205 | (14.8 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Studio + Digital Paid Weeks |
34,829 | 39,190 | (11.1 | %) | ||||||||
| Total Paid Weeks (1) | ||||||||||||
| North America |
83,493 | 77,013 | 8.4 | % | ||||||||
| CE |
32,485 | 29,365 | 10.6 | % | ||||||||
| UK |
10,475 | 10,360 | 1.1 | % | ||||||||
| Other (2) |
2,863 | 2,770 | 3.3 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total Paid Weeks |
129,316 | 119,508 | 8.2 | % | ||||||||
| End of Period Digital Subscribers (3) | ||||||||||||
| North America |
2,475 | 1,996 | 24.0 | % | ||||||||
| CE |
1,105 | 914 | 20.8 | % | ||||||||
| UK |
250 | 195 | 28.1 | % | ||||||||
| Other (2) |
70 | 60 | 17.4 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| Total End of Period Digital Subscribers |
3,900 | 3,165 | 23.2 | % | ||||||||
| End of Period Studio + Digital Subscribers (3) | ||||||||||||
| North America |
734 | 945 | (22.3 | %) | ||||||||
| CE |
168 | 223 | (24.8 | %) | ||||||||
| UK |
134 | 192 | (30.3 | %) | ||||||||
| Other (2) |
28 | 43 | (35.8 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total End of Period Studio + Digital Subscribers |
1,063 | 1,403 | (24.2 | %) | ||||||||
| Total End of Period Subscribers (3) | ||||||||||||
| North America |
3,209 | 2,941 | 9.1 | % | ||||||||
| CE |
1,273 | 1,138 | 11.9 | % | ||||||||
| UK |
384 | 387 | (0.9 | %) | ||||||||
| Other (2) |
98 | 103 | (5.0 | %) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total End of Period Subscribers |
4,963 | 4,568 | 8.6 | % | ||||||||
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
| Q2 2020 Variance | ||||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||
| Constant | ||||||||||||||||||||||||
| Q2 2020 | Q2 2019 | 2020 | Currency | |||||||||||||||||||||
| Currency | Constant | vs | vs | |||||||||||||||||||||
| GAAP | Adjustment | Currency | GAAP | 2019 | 2019 | |||||||||||||||||||
| Selected Financial Data |
||||||||||||||||||||||||
| Consolidated Company Revenues |
$ | 333,637 | $ | 3,405 | $ | 337,043 | $ | 369,023 | (9.6 | %) | (8.7 | %) | ||||||||||||
| Consolidated Digital Subscription Revenues (1) |
$ | 177,921 | $ | 1,813 | $ | 179,734 | $ | 156,969 | 13.3 | % | 14.5 | % | ||||||||||||
| Consolidated Studio + Digital Fees (2) |
$ | 115,076 | $ | 1,158 | $ | 116,234 | $ | 156,799 | (26.6 | %) | (25.9 | %) | ||||||||||||
| Consolidated Service Revenues (3) |
$ | 292,997 | $ | 2,971 | $ | 295,968 | $ | 313,768 | (6.6 | %) | (5.7 | %) | ||||||||||||
| Consolidated Product Sales and Other (4) |
$ | 40,640 | $ | 434 | $ | 41,074 | $ | 55,255 | (26.5 | %) | (25.7 | %) | ||||||||||||
| North America |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 115,922 | $ | 303 | $ | 116,225 | $ | 102,851 | 12.7 | % | 13.0 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 86,131 | $ | 194 | $ | 86,325 | $ | 116,958 | (26.4 | %) | (26.2 | %) | ||||||||||||
| Service Revenues (3) |
$ | 202,053 | $ | 496 | $ | 202,549 | $ | 219,809 | (8.1 | %) | (7.9 | %) | ||||||||||||
| Product Sales and Other (4) |
$ | 25,472 | $ | 49 | $ | 25,521 | $ | 35,835 | (28.9 | %) | (28.7 | %) | ||||||||||||
| Total Revenues |
$ | 227,525 | $ | 544 | $ | 228,069 | $ | 255,644 | (11.0 | %) | (10.8 | %) | ||||||||||||
| CE |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 50,704 | $ | 913 | $ | 51,617 | $ | 43,586 | 16.3 | % | 18.4 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 17,858 | $ | 346 | $ | 18,204 | $ | 23,681 | (24.6 | %) | (23.1 | %) | ||||||||||||
| Service Revenues (3) |
$ | 68,562 | $ | 1,259 | $ | 69,821 | $ | 67,267 | 1.9 | % | 3.8 | % | ||||||||||||
| Product Sales and Other (4) |
$ | 9,257 | $ | 186 | $ | 9,443 | $ | 10,062 | (8.0 | %) | (6.2 | %) | ||||||||||||
| Total Revenues |
$ | 77,819 | $ | 1,445 | $ | 79,264 | $ | 77,329 | 0.6 | % | 2.5 | % | ||||||||||||
| UK |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 7,571 | $ | 259 | $ | 7,830 | $ | 6,993 | 8.3 | % | 12.0 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 8,001 | $ | 283 | $ | 8,284 | $ | 11,498 | (30.4 | %) | (28.0 | %) | ||||||||||||
| Service Revenues (3) |
$ | 15,572 | $ | 541 | $ | 16,113 | $ | 18,491 | (15.8 | %) | (12.9 | %) | ||||||||||||
| Product Sales and Other (4) |
$ | 4,165 | $ | 141 | $ | 4,306 | $ | 6,034 | (31.0 | %) | (28.6 | %) | ||||||||||||
| Total Revenues |
$ | 19,737 | $ | 682 | $ | 20,419 | $ | 24,525 | (19.5 | %) | (16.7 | %) | ||||||||||||
| Other (5) |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 3,724 | $ | 338 | $ | 4,062 | $ | 3,539 | 5.2 | % | 14.8 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 3,086 | $ | 336 | $ | 3,422 | $ | 4,662 | (33.8 | %) | (26.6 | %) | ||||||||||||
| Service Revenues (3) |
$ | 6,810 | $ | 674 | $ | 7,484 | $ | 8,201 | (17.0 | %) | (8.7 | %) | ||||||||||||
| Product Sales and Other (4) |
$ | 1,746 | $ | 60 | $ | 1,806 | $ | 3,324 | (47.5 | %) | (45.7 | %) | ||||||||||||
| Total Revenues |
$ | 8,556 | $ | 735 | $ | 9,291 | $ | 11,525 | (25.8 | %) | (19.4 | %) | ||||||||||||
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
| First Half 2020 Variance | ||||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||
| Constant | ||||||||||||||||||||||||
| First Half 2020 | First Half 2019 | 2020 | Currency | |||||||||||||||||||||
| GAAP | Currency Adjustment |
Constant Currency |
GAAP | vs 2019 | vs 2019 | |||||||||||||||||||
| Selected Financial Data |
||||||||||||||||||||||||
| Consolidated Company Revenues |
$ | 733,998 | $ | 7,093 | $ | 741,092 | $ | 732,188 | 0.2 | % | 1.2 | % | ||||||||||||
| Consolidated Digital Subscription Revenues (1) |
$ | 352,467 | $ | 3,731 | $ | 356,198 | $ | 305,824 | 15.3 | % | 16.5 | % | ||||||||||||
| Consolidated Studio + Digital Fees (2) |
$ | 265,188 | $ | 2,422 | $ | 267,610 | $ | 314,670 | (15.7 | %) | (15.0 | %) | ||||||||||||
| Consolidated Service Revenues (3) |
$ | 617,654 | $ | 6,153 | $ | 623,808 | $ | 620,494 | (0.5 | %) | 0.5 | % | ||||||||||||
| Consolidated Product Sales and Other (4) |
$ | 116,344 | $ | 940 | $ | 117,284 | $ | 111,694 | 4.2 | % | 5.0 | % | ||||||||||||
| North America |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 232,272 | $ | 365 | $ | 232,637 | $ | 201,611 | 15.2 | % | 15.4 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 198,974 | $ | 248 | $ | 199,222 | $ | 234,557 | (15.2 | %) | (15.1 | %) | ||||||||||||
| Service Revenues (3) |
$ | 431,246 | $ | 614 | $ | 431,860 | $ | 436,169 | (1.1 | %) | (1.0 | %) | ||||||||||||
| Product Sales and Other (4) |
$ | 79,986 | $ | 48 | $ | 80,034 | $ | 69,488 | 15.1 | % | 15.2 | % | ||||||||||||
| Total Revenues |
$ | 511,232 | $ | 661 | $ | 511,893 | $ | 505,656 | 1.1 | % | 1.2 | % | ||||||||||||
| CE |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 97,341 | $ | 2,281 | $ | 99,622 | $ | 83,769 | 16.2 | % | 18.9 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 39,377 | $ | 949 | $ | 40,326 | $ | 47,630 | (17.3 | %) | (15.3 | %) | ||||||||||||
| Service Revenues (3) |
$ | 136,718 | $ | 3,231 | $ | 139,949 | $ | 131,399 | 4.0 | % | 6.5 | % | ||||||||||||
| Product Sales and Other (4) |
$ | 21,091 | $ | 530 | $ | 21,621 | $ | 22,087 | (4.5 | %) | (2.1 | %) | ||||||||||||
| Total Revenues |
$ | 157,809 | $ | 3,760 | $ | 161,569 | $ | 153,486 | 2.8 | % | 5.3 | % | ||||||||||||
| UK |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 15,147 | $ | 395 | $ | 15,542 | $ | 13,411 | 12.9 | % | 15.9 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 19,130 | $ | 472 | $ | 19,602 | $ | 22,761 | (16.0 | %) | (13.9 | %) | ||||||||||||
| Service Revenues (3) |
$ | 34,277 | $ | 866 | $ | 35,143 | $ | 36,172 | (5.2 | %) | (2.8 | %) | ||||||||||||
| Product Sales and Other (4) |
$ | 10,488 | $ | 213 | $ | 10,701 | $ | 12,964 | (19.1 | %) | (17.5 | %) | ||||||||||||
| Total Revenues |
$ | 44,765 | $ | 1,079 | $ | 45,844 | $ | 49,136 | (8.9 | %) | (6.7 | %) | ||||||||||||
| Other (5) |
||||||||||||||||||||||||
| Digital Subscription Revenues (1) |
$ | 7,706 | $ | 691 | $ | 8,397 | $ | 7,033 | 9.6 | % | 19.4 | % | ||||||||||||
| Studio + Digital Fees (2) |
$ | 7,707 | $ | 753 | $ | 8,460 | $ | 9,722 | (20.7 | %) | (13.0 | %) | ||||||||||||
| Service Revenues (3) |
$ | 15,413 | $ | 1,443 | $ | 16,856 | $ | 16,755 | (8.0 | %) | 0.6 | % | ||||||||||||
| Product Sales and Other (4) |
$ | 4,779 | $ | 151 | $ | 4,930 | $ | 7,155 | (33.2 | %) | (31.1 | %) | ||||||||||||
| Total Revenues |
$ | 20,192 | $ | 1,594 | $ | 21,786 | $ | 23,910 | (15.5 | %) | (8.9 | %) | ||||||||||||
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
| Q2 2020 Variance | ||||||||||||||||||||||||||||||||||||||||||||
| 2020 Constant Currency | ||||||||||||||||||||||||||||||||||||||||||||
| Q2 2020 | Q2 2019 | 2020 | 2020 | |||||||||||||||||||||||||||||||||||||||||
| GAAP | Adjustment | Adjusted | Currency Adjustment |
Constant Currency |
Adjusted Constant Currency |
GAAP | 2020 vs 2019 |
Adusted vs 2019 |
2020 vs 2019 |
Adjusted vs 2019 |
||||||||||||||||||||||||||||||||||
| Selected Financial Data |
||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit |
$ | 194,671 | $ | 6,503 | (1) | $ | 201,174 | $ | 2,212 | $ | 196,883 | $ | 203,386 | $ | 215,814 | (9.8 | %) | (6.8 | %) | (8.8 | %) | (5.8 | %) | |||||||||||||||||||||
| Gross Margin |
58.3 | % | 60.3 | % | 58.4 | % | 60.3 | % | 58.5 | % | ||||||||||||||||||||||||||||||||||
| Selling, General and Administrative Expenses |
$ | 101,792 | $ | (37,392 | )(2) | $ | 64,400 | $ | 518 | $ | 102,310 | $ | 64,918 | $ | 60,374 | 68.6 | % | 6.7 | % | 69.5 | % | 7.5 | % | |||||||||||||||||||||
| Operating Income |
$ | 50,985 | $ | 43,895 | (3) | $ | 94,879 | $ | 1,372 | $ | 52,357 | $ | 96,251 | $ | 105,473 | (51.7 | %) | (10.0 | %) | (50.4 | %) | (8.7 | %) | |||||||||||||||||||||
| Operating Income Margin |
15.3 | % | 28.4 | % | 15.5 | % | 28.6 | % | 28.6 | % | ||||||||||||||||||||||||||||||||||
Note: Totals may not sum due to rounding.
| (1) | Excludes $6,503 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 $4,706 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 and the $6,503 and $4,706 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
| First Half 2020 Variance | ||||||||||||||||||||||||||||||||||||||||||||
| 2020 Constant Currency | ||||||||||||||||||||||||||||||||||||||||||||
| First Half 2020 | First Half 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 |
$ | 405,662 | $ |
6,503 |
(1) |
$ | 412,165 | $ | 4,417 | $ | 410,079 | $ | 416,582 | $ | 416,763 | (2.7 | %) | (1.1 | %) | (1.6 | %) | (0.0 | %) | |||||||||||||||||||||
| Gross Margin |
55.3 | % | 56.2 | % | 55.3 | % | 56.2 | % | 56.9 | % | ||||||||||||||||||||||||||||||||||
| Selling, General and Administrative Expenses |
$ | 166,318 | $ | (37,392 | )(2) | $ | 128,927 | $ | 1,017 | $ | 167,335 | $ | 129,944 | $ | 125,176 | 32.9 | % | 3.0 | % | 33.7 | % | 3.8 | % | |||||||||||||||||||||
| Operating Income |
$ | 75,851 | $ | 47,560 | (3) | $ | 123,411 | $ | 1,167 | $ | 77,018 | $ | 125,542 | $ | 127,371 | (40.4 | %) | (3.1 | %) | (39.5 | %) | (1.4 | %) | |||||||||||||||||||||
| Operating Income Margin |
10.3 | % | 16.8 | % | 10.4 | % | 16.9 | % | 17.4 | % | ||||||||||||||||||||||||||||||||||
Note: Totals may not sum due to rounding.
| (1) | Excludes $6,503 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 $4,706 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 $6,503 and $4,706 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 | Six Months Ended | |||||||||||||||
| June 27, | June 29, | June 27, | June 29, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net Income |
$ | 14,006 | $ | 53,834 | $ | 7,943 | $ | 43,148 | ||||||||
| Interest |
30,995 | 34,732 | 62,546 | 69,927 | ||||||||||||
| Taxes |
5,592 | 16,586 | 4,942 | 13,711 | ||||||||||||
| Depreciation and Amortization |
12,771 | 11,288 | 24,983 | 22,693 | ||||||||||||
| Stock-based Compensation |
38,686 | 4,872 | 42,651 | 9,684 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDAS |
$ | 102,049 | $ | 121,312 | $ | 143,064 | $ | 159,163 | ||||||||
| 2020 Restructuring Charges (1) |
11,209 | — | 11,209 | — | ||||||||||||
| Goodwill Impairment (2) |
— | — | 3,665 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDAS |
$ | 113,258 | $ | 121,312 | $ | 157,938 | $ | 159,163 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
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
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Trailing Twelve Months |
||||||||||||||||
| Net Debt to Adjusted EBITDAS |
||||||||||||||||||||
| Net Income (Loss) |
$ | 47,086 | $ | 29,383 | $ | (6,063 | ) | $ | 14,006 | $ | 84,412 | |||||||||
| Interest |
33,118 | 32,222 | 31,551 | 30,995 | 127,886 | |||||||||||||||
| Taxes |
13,123 | 4,679 | (651 | ) | 5,592 | 22,743 | ||||||||||||||
| Depreciation and Amortization |
10,850 | 11,474 | 12,211 | 12,771 | 47,306 | |||||||||||||||
| Stock-based Compensation |
5,243 | 5,544 | 3,965 | 38,686 | 53,438 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| EBITDAS |
$ | 109,420 | $ | 83,302 | $ | 41,013 | $ | 102,049 | $ | 335,785 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 2020 Restructuring Charges (1) |
$ | — | $ | — | $ | — | $ | 11,209 | 11,209 | |||||||||||
| Goodwill Impairment (2) |
$ | — | $ | — | $ | 3,665 | $ | — | $ | 3,665 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted EBITDAS |
$ | 109,420 | $ | 83,302 | $ | 44,678 | $ | 113,258 | $ | 350,659 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Debt |
$ | 1,540,610 | ||||||||||||||||||
| Less: Cash |
150,409 | |||||||||||||||||||
|
|
|
|||||||||||||||||||
| Net Debt |
$ | 1,390,201 | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Net Debt to Adjusted EBITDAS |
4 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. |
Exhibit 99.2
For more information, contact:
Amy O’Keefe Joins WW International as Chief Financial Officer
Nicholas Hotchkin Promoted to Chief Operating Officer
NEW YORK, (August 4, 2020) – WW International, Inc. (NASDAQ: WW), a global wellness company powered by the world’s leading commercial weight management program, announced today the appointment of Amy O’Keefe as Chief Financial Officer and the promotion of Nicholas Hotchkin, who has served as Chief Financial Officer since 2012, head of North American operations since 2019, and President of Emerging Markets, to the newly created position of Chief Operating Officer.
O’Keefe, who will oversee global finance and accounting for WW, will officially join the company on October 1, 2020 at which time Hotchkin will assume his new position leading worldwide strategy and operational execution for all global markets with the added oversight of WW Health Solutions, the company’s corporate program for employers and health providers. Both roles sit on the executive leadership team and will report directly to Mindy Grossman, the President and CEO of WW International.
“We are thrilled to welcome Amy as our company’s new CFO,” said Mindy Grossman. “Her deep expertise in operational finance and her proven track record of driving business growth while maximizing profitability makes her uniquely qualified to join our team as we accelerate our digital transformation and deliver on our mission to bring wellness to all.”
“Nick has been an invaluable partner since I joined WW in 2017,” Grossman continued. “He brings years of experience both as CFO as well as leading our North American operations over the past year. He has a true passion for WW and I am excited to see him add P&L responsibility for all global markets along with taking the reins of our Health Solutions business. I look forward to our continued partnership as we boldly move forward to achieve our growth aspirations.”
“I am very excited to join the WW team and to continue and build upon the foundation that Nick built in the global finance and accounting operation,” said Amy O’Keefe. “It is a unique opportunity to be able to contribute my skill set to a company and team who so passionately share such a worthy mission.”
O’Keefe brings more than 25 years of financial expertise, joining the company after three years as CFO of Drive DeVilbiss Healthcare, a leading private equity backed medical equipment company based in Port Washington, New York. Before assuming that position, she held CFO positions at Savant Systems and D&M Holdings. Prior to her CFO roles, O’Keefe held several corporate finance positions with increasing responsibility at The Black & Decker Corporation. O’Keefe started her career at Ernst & Young.
“I am proud to be part of a company that deeply impacts the lives of millions around the world. I am so thankful to Mindy for having the confidence in me to take on this new role,” said Nicholas Hotchkin. “I have spent my entire career helping businesses transform and I am thrilled to take this next step as we aim to make weight loss and wellness accessible to all.”
Hotchkin has been with WW for eight years and brings nearly 30 years of experience in both financial and operating expertise. Prior to joining WW, Hotchkin spent nearly six years at Staples, Inc., a global leader in the office supply industry. Hotchkin served as Senior Vice President of Finance for the U.S. Retail division from 2010 to 2012 and Senior Vice President of Finance and Treasurer from 2006 to 2010. Before Staples, Hotchkin held several corporate finance positions with Delphi Corporation and General Motors Corporation including assignments in the United States, Asia and Europe.
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.