Weight Watchers International Inc (NASDAQ:WW) Q1 2017 Earnings Conference Call - Final Transcript

May 02, 2017 • 05:00 pm ET


Weight Watchers International Inc (NASDAQ:WW) Q1 2017 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Weight Watchers First Quarter 2017 Earnings Conference call. [Operator Instructions] Please note this event is being recorded.

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

Corey Kinger

Thank you, Gary and thank you to everyone for joining us today for Weight Watchers International's first quarter 2017 conference call. At about 4:15 PM Eastern Time today, the company issued a press release reporting the first quarter 2017 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 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'll now like to turn the call over to Chris.

Christopher J. Sobecki

Thanks, Corey and good afternoon everyone and thank you for joining us. Today, I will discuss our first quarter performance and successful winter season. Nick will then provide further detail on our financial results and our improved outlook for the year, and Thilo will wrap up with an overview of our progress to-date.

But before discussing the results, I'd like to start by highlighting last week's announcement that Mindy Grossman will be joining Weight Watchers in July as CEO.

Mindy is coming from HSN, where she has been CEO since 2008. Under her leadership, HSN transformed into a lifestyle network, launched industry-leading digital innovations, and formed unique partnerships with leading brands and personalities. She is widely recognized as a business leader and innovator. Mindy's outstanding track record in executing business transformations, her bold, innovative thinking, and her understanding and focus on the customer experience make her the perfect leader to unlock Weight Watchers' full potential.

Now, turning to the first quarter performance, in Q1, we continued to build on last year's recruitment momentum and delivered the best quarter in recent times. Q1 global member recruitment was up in the double digits, on top of