Weight Watchers International, Inc. (WTW) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $13.30 million, or $ 0.20 a share in the quarter, against a net loss of $11.30 million, or $0.18 a share in the last year period.
Revenue during the quarter grew 3.16 percent to $267.40 million from $259.20 million in the previous year period. Gross margin for the quarter expanded 220 basis points over the previous year period to 48.80 percent. Total expenses were 82.54 percent of quarterly revenues, down from 93.71 percent for the same period last year. This has led to an improvement of 1118 basis points in operating margin to 17.46 percent.
Operating income for the quarter was $46.70 million, compared with $16.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $47.50 million compared to $31.30 million in the prior year period. At the same time, adjusted operating margin improved 569 basis points in the quarter to 17.76 percent from 12.08 percent in the last year period.
"We delivered positive member recruitment growth in every quarter of 2016, ending the year with 10% more subscribers than the prior year," said Nick Hotchkin, the Company's Chief financial officer and Member, Interim Office of the chief executive officer. "So far in 2017 our global marketing campaigns are driving strong member recruitment and interest in our Beyond the Scale program. With the year off to a good start, we are confident we will deliver revenue growth and higher profitability throughout the year."
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