Weight Watchers International Inc (NASDAQ:WW) Q4 2016 Earnings Conference Call - Final Transcript

Feb 28, 2017 • 05:00 pm ET

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Weight Watchers International Inc (NASDAQ:WW) Q4 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Weight Watchers Fourth Quarter and Full Year 2016 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Corey Kinger of Investor Relations. Please go ahead.

Executive
Corey Kinger

Thank you, Daniel, and thank you to everyone for joining us today for Weight Watchers International's fourth quarter and full year 2016 conference call. At about 4:15 PM Eastern Time today, the Company issued a press release reporting the fiscal 2016 fourth quarter and full year results. The purpose of this call is to provide investors with some further details regarding the Company's financial results, as well as to provide a general update on the Company's progress. The press release is available on the Company's corporate website located at, www.weightwatchersinternational.com.

Reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the press release.

Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the Company's filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements.

All forward-looking statements are made as of today and, except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Joining today's call in their roles as members of the Interim Office of the CEO are Nick Hotchkin, who also serves as CFO; and Directors, Thilo Semmelbauer; and Chris Sobecki.

I would now like to turn the call over to Chris.

Executive
Christopher J. Sobecki

Thanks, Corey. Good afternoon, everyone, and thank you for joining us. I'll begin with a quick review of our 2016 results and a recap of our very successful winter 2000 season to-date. Nick will then provide further detail on our financial results and outlook for the year, and Thilo will close with the discussion of our key focus areas in a few of our near term initiatives.

Fourth quarter delivered the strongest year-over-year increase in total revenues and paid weeks of any quarter so far in our transformation. Year-over-year Q4 revenues were up 5% on a constant currency basis and total paid weeks were up 10%. This is a marked improvement from the beginning of the year when Q1 revenue was down 3% on a constant currency basis and total paid weeks were up only 2%. These improving results demonstrated that our Beyond the Scale program is resonating with consumers.

Q4 was the fifth consecutive quarter of positive member recruitment resulting in