WW International, Inc. Announces Third Quarter 2024 Results Form 8 K

End of Period Subscribers of 3.7 million

Revenues of $192.9 million

Gross margin of 67.1%; adjusted gross margin of 69.1%

Operating Loss of $39.0 million; adjusted operating income of $35.7 million

(in millions except percentages and per share amounts)

Subscription Revenues, net

Other Revenues, net⁽²⁾

Revenues, net

Gross Profit

Non-GAAP Adjustments⁽¹⁾

Net Restructuring Charges⁽³⁾

Adjusted Gross Profit⁽¹⁾

Operating (Loss) Income

Non-GAAP Adjustments⁽¹⁾

Franchise Rights Acquired Impairments

Net Restructuring Charges⁽³⁾

Former CEO Separation Expenses

Adjusted Operating Income⁽¹⁾

Net (Loss) Income

EPS

Non-GAAP Adjustments⁽¹⁾

Franchise Rights Acquired Impairments

Net Restructuring Charges⁽³⁾

Former CEO Separation Expenses

Adjusted EPS⁽¹⁾

Total Paid Weeks

Digital⁽⁴⁾ Paid Weeks

Workshops + Digital⁽⁵⁾ Paid Weeks

Clinical⁽⁶⁾ Paid Weeks

End of Period Subscribers⁽⁷⁾

Digital Subscribers

Workshops + Digital Subscribers

Clinical Subscribers

Note: Percentage in excess of 100.0% and not meaningful

See "Reconciliation of Non-GAAP Financial Measures" attached to this release for further detail on adjustments to GAAP financial measures.

"Other Revenues, net" (formerly known as "Product Sales and Other, net") consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, "Other Revenues, net" included sales of consumer products.

See "Reconciliation of Non-GAAP Financial Measures" attached to this release for further detail on the Company's previously disclosed 2024, 2023, and 2022 restructuring plans, and the reversal of certain of the charges associated therewith.

"Digital" refers to providing subscriptions to the Company's digital product offerings.

"Workshops + Digital" refers to providing subscriptions for unlimited access to the Company's workshops combined with the Company's digital subscription product offerings.

"Clinical" refers to providing subscriptions to the Company's clinical product offerings provided by WeightWatchers Clinic (formerly referred to as Sequence) combined with the Company's digital subscription product offerings.

"Subscribers" refers to Digital subscribers, Workshops + Digital subscribers, and Clinical subscribers who participate in recurring bill programs in Company-owned operations.

End of Period Subscribers in Q3 2024 were down 8.8% versus the prior year period, driven by declines in the Digital and Workshops + Digital businesses reflecting year to date recruitment declines. Q3 2024 End of Period Clinical Subscribers of 78 thousand increased 71.5% versus the prior year period.

Total Paid Weeks in Q3 2024 were down 7.4% versus the prior year period driven by declines in the Digital and Workshops + Digital businesses. Total Paid Weeks benefited from growth in Clinical Paid Weeks.

Revenues in Q3 2024 were $192.9 million. On a constant currency basis, Q3 2024 revenues decreased 10.6% versus the prior year period.

Subscription Revenues in Q3 2024 were $191.2 million. On a constant currency basis, these revenues decreased 6.4% versus the prior year period primarily driven by lower recruitments and non-Clinical Incoming Subscribers. Additionally, Subscription Revenues were negatively impacted by the continued mix shift from the Workshops + Digital business to the Digital business and a higher mix of Digital Subscribers within their initial, lower-priced commitment periods. Subscription Revenues benefited from $19.1 million of Clinical Subscription Revenues, which increased 90.7% versus the prior year period.

Other Revenues in Q3 2024 were $1.6 million. On a constant currency basis, these revenues decreased 85.7% versus the prior year period driven by the discontinuation of the consumer products business at the end of fiscal 2023.

Gross Profit in Q3 2024 was $129.5 million, compared to $141.8 million in the prior year period. Adjusted gross profit, which excluded the net impact of $3.8 million of restructuring charges, was $133.3 million. Adjusted gross profit in Q3 2023, which excluded the net impact of $0.4 million of restructuring charges, was $142.2 million.

Gross Margin in Q3 2024 was 67.1%, as compared to 66.0% in the prior year period. Adjusted gross margin in Q3 2024 was 69.1%, up from an adjusted gross margin of 66.2% in the prior year period, driven primarily by actions to reduce the fixed cost base within our business and the discontinuation of our lower margin consumer products business at the end of fiscal 2023.

Non-Cash Intangible Impairment Charges: During Q3 2024, the Company recorded non-cash impairment charges of franchise rights acquired totaling $57.0 million. These impairments were primarily driven by an increase in the Company's weighted average cost of capital reflecting market factors.

Operating Loss in Q3 2024 was $39.0 million, compared to operating income of $30.6 million in the prior year period. Adjusted operating income, which excluded $57.0 million of non-cash intangible impairment charges, the net impact of $13.8 million of restructuring charges, and $3.9 million of former CEO separation expenses, was $35.7 million. Adjusted operating income in Q3 2023, which excluded the net impact of $6.0 million of restructuring charges, was $36.6 million.

Income Tax Benefit in Q3 2024 was $27.3 million, which reflected the impact of an unusually high negative annual effective tax rate driven by a valuation allowance and small pretax loss reflected in the Company's full year fiscal 2024 guidance. In the prior year period, income tax benefit was $38.4 million.

Net Loss in Q3 2024 was $46.2 million compared to net income of $43.7 million in the prior year period.

Diluted Net Loss per share in Q3 2024 was $0.58 compared to diluted earnings per share of $0.54 in the prior year period. Q3 2024 adjusted earnings per share, which excluded $0.65 of non-cash intangible impairment charges, $0.13 of net impact of restructuring charges, and $0.04 of former CEO separation expenses, was $0.24. In the prior year period, adjusted earnings per share, which excluded $0.06 of net impact of restructuring charges, was $0.60.

Additionally, certain other items affected year-over-year comparability:

In Q3 2024, $0.33 per diluted share positive tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company's full year fiscal 2024 guidance.

In Q3 2023, $0.54 per diluted share positive tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company's full year fiscal 2023 guidance.

Cash balance as of September 28, 2024 was $57.2 million. On that same date, the Company had no outstanding borrowings under its revolving credit facility.

Year end total subscribers of at least 3.1 million;

Revenue of at least $770.0 million; and

Excluding non-cash intangible impairment charges and the net impact of restructuring charges (both of which include Q3 2024 charges), and the Q3 2024 former CEO separation expenses,

Adjusted operating income of at least $100.0 million; and

Adjusted EBITDAS of at least $150.0 million.

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Receivables (net of allowances: September 28, 2024 - $2,399 and
December 30, 2023 - $1,041)

Prepaid income taxes

Prepaid marketing and advertising

Prepaid expenses and other current assets

TOTAL CURRENT ASSETS

Property and equipment, net

Operating lease assets

Franchise rights acquired

Goodwill

Other intangible assets, net

Deferred income taxes

Other noncurrent assets

TOTAL ASSETS

LIABILITIES AND TOTAL DEFICIT

CURRENT LIABILITIES

Portion of operating lease liabilities due within one year

Accounts payable

Salaries and wages payable

Accrued marketing and advertising

Accrued interest

Deferred acquisition payable

Other accrued liabilities

Income taxes payable

Deferred revenue

TOTAL CURRENT LIABILITIES

Long-term debt, net

Long-term operating lease liabilities

Deferred income taxes

Other

TOTAL LIABILITIES

TOTAL DEFICIT

Common stock, $0 par value; 1,000,000 shares authorized; 130,048 shares issued at September 28, 2024 and 130,048 shares issued at December 30, 2023

Treasury stock, at cost, 50,314 shares at September 28, 2024 and 50,859 shares at December 30, 2023

Retained earnings

Accumulated other comprehensive loss

TOTAL DEFICIT

TOTAL LIABILITIES AND TOTAL DEFICIT

Subscription revenues, net ⁽¹⁾

Other revenues, net ⁽²⁾

Revenues, net

Cost of subscription revenues ⁽³⁾

Cost of other revenues

Cost of revenues

Gross profit

Marketing expenses

Selling, general and administrative expenses

Franchise rights acquired impairments

Operating (loss) income

Interest expense

Other expense, net

(Loss) income before income taxes

Benefit from income taxes

Net (loss) income

(Net loss) earnings per share

Basic

Diluted

Weighted average common shares outstanding

Basic

Diluted

"Subscription revenues, net" consist of net "Digital Subscription Revenues", net "Workshops + Digital Subscription Revenues" and net "Clinical Subscription Revenues". "Digital Subscription Revenues" consist of the fees associated with subscriptions for the Company's Digital offerings. "Workshops + Digital Subscription Revenues" consist of the fees associated with subscriptions for combined workshops and Digital offerings. "Clinical Subscription Revenues" consist of the fees associated with subscriptions for combined Clinical and Digital offerings. 

"Other revenues, net" (formerly known as "product sales and other, net") consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, "Other revenues, net" included sales of consumer products. 

"Cost of subscription revenues" consists of cost of revenues and operating expenses for the Company's Digital, Workshops + Digital and Clinical services. 

Subscription revenues, net ⁽¹⁾

Other revenues, net ⁽²⁾

Revenues, net

Cost of subscription revenues ⁽³⁾

Cost of other revenues

Cost of revenues

Gross profit

Marketing expenses

Selling, general and administrative expenses

Franchise rights acquired impairments

Operating (loss) income

Interest expense

Other expense (income), net

Loss before income taxes

Provision for (benefit from) income taxes

Net loss

Net loss per share

Basic

Diluted

Weighted average common shares outstanding

Basic

Diluted

"Subscription revenues, net" consist of net "Digital Subscription Revenues", net "Workshops + Digital Subscription Revenues" and net "Clinical Subscription Revenues". "Digital Subscription Revenues" consist of the fees associated with subscriptions for the Company's Digital offerings. "Workshops + Digital Subscription Revenues" consist of the fees associated with subscriptions for combined workshops and Digital offerings. "Clinical Subscription Revenues" consist of the fees associated with subscriptions for combined Clinical and Digital offerings. 

"Other revenues, net" (formerly known as "product sales and other, net") consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, "Other revenues, net" included sales of consumer products. 

"Cost of subscription revenues" consists of cost of revenues and operating expenses for the Company's Digital, Workshops + Digital and Clinical services. 

Operating activities:

Net loss

Adjustments to reconcile net loss to cash used for operating activities:

Depreciation and amortization

Amortization of deferred financing costs and debt discount

Impairment of franchise rights acquired

Impairment of intangible and long-lived assets

Share-based compensation expense

Deferred tax benefit

Allowance for doubtful accounts

Reserve for inventory obsolescence

Foreign currency exchange rate loss (gain)

Changes in cash due to:

Receivables

Inventories

Prepaid expenses

Accounts payable

Accrued liabilities

Deferred revenue

Other long term assets and liabilities, net

Income taxes

Cash used for operating activities

Investing activities:

Capital expenditures

Capitalized software and website development expenditures

Cash paid for acquisitions, net of cash acquired

Other items, net

Cash used for investing activities

Financing activities:

Taxes paid related to net share settlement of equity awards

Proceeds from stock options exercised

Cash paid for acquisitions

Other items, net

Cash used for financing activities

Effect of exchange rate changes on cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Paid Weeks ⁽¹⁾

Digital Paid Weeks

Workshops + Digital Paid Weeks

Clinical Paid Weeks

Total Paid Weeks

End of Period Subscribers ⁽²⁾

End of Period Digital Subscribers

End of Period Workshops + Digital Subscribers

End of Period Clinical Subscribers

Total End of Period Subscribers

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 offerings; (ii) "Workshops + Digital Paid Weeks" is the total paid subscription weeks for combined workshops and Digital offerings; (iii) "Clinical Paid Weeks" is the total paid subscription weeks for combined Clinical and Digital offerings; and (iv) "Total Paid Weeks" is the sum of Digital Paid Weeks, Workshops + Digital Paid Weeks and Clinical Paid Weeks.

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 subscribers; (ii) "End of Period Workshops + Digital Subscribers" is the total number of subscribers that have access to combined workshops and Digital offerings; (iii) "End of Period Clinical Subscribers" is the total number of subscribers that have access to combined Clinical and Digital offerings; and (iv) "End of Period Subscribers" is the sum of End of Period Digital Subscribers, End of Period Workshops + Digital Subscribers and End of Period Clinical Subscribers.

Paid Weeks ⁽¹⁾

Digital Paid Weeks

Workshops + Digital Paid Weeks

Clinical Paid Weeks

Total Paid Weeks

End of Period Subscribers ⁽²⁾

End of Period Digital Subscribers

End of Period Workshops + Digital Subscribers

End of Period Clinical Subscribers

Total End of Period Subscribers

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 offerings; (ii) "Workshops + Digital Paid Weeks" is the total paid subscription weeks for combined workshops and Digital offerings; (iii) "Clinical Paid Weeks" is the total paid subscription weeks for combined Clinical and Digital offerings; and (iv) "Total Paid Weeks" is the sum of Digital Paid Weeks, Workshops + Digital Paid Weeks and Clinical Paid Weeks.

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 subscribers; (ii) "End of Period Workshops + Digital Subscribers" is the total number of subscribers that have access to combined workshops and Digital offerings; (iii) "End of Period Clinical Subscribers" is the total number of subscribers that have access to combined Clinical and Digital offerings; and (iv) "End of Period Subscribers" is the sum of End of Period Digital Subscribers, End of Period Workshops + Digital Subscribers and End of Period Clinical Subscribers.

Selected Financial Data

Total Revenues

Digital Subscription Revenues ⁽¹⁾

Workshops + Digital Subscription Revenues ⁽²⁾

Clinical Subscription Revenues ⁽³⁾

Subscription Revenues ⁽⁴⁾

Other Revenues ⁽⁵⁾

"Digital Subscription Revenues" consist of the fees associated with subscriptions for the Company's Digital offerings.

"Workshops + Digital Subscription Revenues" consist of the fees associated with subscriptions for combined workshops and Digital offerings.

"Clinical Subscription Revenues" consist of the fees associated with subscriptions for combined Clinical and Digital offerings.

"Subscription Revenues" equal "Digital Subscription Revenues" plus "Workshops + Digital Subscription Revenues" plus "Clinical Subscription Revenues".

"Other Revenues" (formerly known as "product sales and other") consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, "Other Revenues" included sales of consumer products.

Selected Financial Data

Total Revenues

Digital Subscription Revenues ⁽¹⁾

Workshops + Digital Subscription Revenues ⁽²⁾

Clinical Subscription Revenues ⁽³⁾

Subscription Revenues ⁽⁴⁾

Other Revenues ⁽⁵⁾

"Digital Subscription Revenues" consist of the fees associated with subscriptions for the Company's Digital offerings.

"Workshops + Digital Subscription Revenues" consist of the fees associated with subscriptions for combined workshops and Digital offerings.

"Clinical Subscription Revenues" consist of the fees associated with subscriptions for combined Clinical and Digital offerings.

"Subscription Revenues" equal "Digital Subscription Revenues" plus "Workshops + Digital Subscription Revenues" plus "Clinical Subscription Revenues".

"Other Revenues" (formerly known as "product sales and other") consist of revenues from licensing and publishing, franchise fees with respect to commitment plans and royalties, and other revenues. Prior to fiscal 2024, "Other Revenues" included sales of consumer products.

Selected Financial Data

Gross Profit

Gross Margin

Selling, General and Administrative Expenses

Operating (Loss) Income

Operating (Loss) Income Margin

Benefit from Income Taxes

Net (Loss) Income

Diluted (Net Loss) Earnings Per Share

Excludes the net impact of $2,450 of charges associated with the Company's previously disclosed 2024 restructuring plan and $1,370 of charges associated with the Company's previously disclosed 2023 restructuring plan.

Excludes the net impact of $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan, the reversal of $2,119 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $257 of charges associated with the Company's previously disclosed 2022 restructuring plan, and the impact of $3,858 of former CEO separation expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $54,295 and $2,750 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $2,450 of charges and $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (b) $1,370 of charges and the reversal of $2,119 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (c) the reversal of $257 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to selling, general and administrative expenses, and (iii) the impact of $3,858 of former CEO separation expenses recorded to selling, general and administrative expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $4,593 and $688 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $3,700 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) the reversal of $187 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) the reversal of $64 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $964 of former CEO separation expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $49,702 and $2,062 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $11,112 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) the reversal of $562 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) the reversal of $193 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $2,894 of former CEO separation expenses. 

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $0.62 and $0.03 related to its United States and United Kingdom units of account, respectively, (ii) the net impact of (a) $0.14 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) the reversal of $0.01 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) the reversal of $0.00 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $0.04 of former CEO separation expenses.

Includes $(174) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.

Includes $(23) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.

Includes $(151) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.

Includes $(0.01) of currency adjustment associated with the impairment charge of the Company's franchise rights acquired of $2,750 related to its United Kingdom unit of account.

Excludes the net impact of $444 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $46 of charges associated with the Company's previously disclosed 2022 restructuring plan.

Excludes the net impact of $5,743 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $166 of charges associated with the Company's previously disclosed 2022 restructuring plan.

Excludes the net impact of (a) $444 of charges and $5,743 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (b) the reversal of $46 of charges and the reversal of $166 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively.

Excludes the net impact of $1,549 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $53 of charges associated with the Company's previously disclosed 2022 restructuring plan.

Excludes the net impact of $4,638 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $159 of charges associated with the Company's previously disclosed 2022 restructuring plan.

Excludes the net impact of $0.06 of charges associated with the Company's previously disclosed 2023 restructuring plan and the reversal of $0.00 of charges associated with the Company's previously disclosed 2022 restructuring plan.

Selected Financial Data

Gross Profit

Gross Margin

Selling, General and Administrative Expenses

Operating (Loss) Income

Operating (Loss) Income Margin

Provision for (Benefit from) Income Taxes

Net Loss

Diluted Net Loss Per Share

Excludes the net impact of $2,450 of charges associated with the Company's previously disclosed 2024 restructuring plan, $3,697 of charges associated with the Company's previously disclosed 2023 restructuring plan and $26 of charges associated with the Company's previously disclosed 2022 restructuring plan.

Excludes the net impact of $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan, $2,957 of charges associated with the Company's previously disclosed 2023 restructuring plan and $30 of charges associated with the Company's previously disclosed 2022 restructuring plan, and the impact of $3,858 of former CEO separation expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $305,726, $4,074, $2,905 and $2,328 related to its United States, Australia, United Kingdom and New Zealand units of account, respectively, (ii) the net impact of (a) $2,450 of charges and $12,362 of charges associated with the Company's previously disclosed 2024 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (b) $3,697 of charges and $2,957 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (c) $26 of charges and $30 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (iii) the impact of $3,858 of former CEO separation expenses recorded to selling, general and administrative expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $19,839, $1,222 and $726 related to its United States, Australia and United Kingdom units of account, respectively, (ii) the net impact of (a) $3,700 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) $1,662 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) $14 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $964 of former CEO separation expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $285,887, $2,852, $2,328 and $2,179 related to its United States, Australia, New Zealand and United Kingdom units of account, respectively, (ii) the net impact of (a) $11,112 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) $4,992 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) $42 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $2,894 of former CEO separation expenses.

Excludes (i) the impact of impairment charges of the Company's franchise rights acquired of $3.59, $0.04, $0.03 and $0.03 related to its United States, Australia, United Kingdom and New Zealand units of account, respectively, (ii) the net impact of (a) $0.14 of charges associated with the Company's previously disclosed 2024 restructuring plan, (b) $0.06 of charges associated with the Company's previously disclosed 2023 restructuring plan and (c) $0.00 of charges associated with the Company's previously disclosed 2022 restructuring plan, and (iii) the impact of $0.04 of former CEO separation expenses.

Includes $(69) of currency adjustment associated with the impairment charges of the Company's franchise rights acquired of $4,074, $2,905 and $2,328 related to its Australia, United Kingdom and New Zealand units of account, respectively. 

Includes $(6) of currency adjustment associated with the impairment charges of the Company's franchise rights acquired of $4,074, $2,905 and $2,328 related to its Australia, United Kingdom and New Zealand units of account, respectively. 

Includes $(63) of currency adjustment associated with the impairment charges of the Company's franchise rights acquired of $4,074, $2,905 and $2,328 related to its Australia, United Kingdom and New Zealand units of account, respectively. 

Excludes the net impact of $19,869 of charges associated with the Company's previously disclosed 2023 restructuring plan, the reversal of $269 of charges associated with the Company's previously disclosed 2022 restructuring plan, $96 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $21 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan. 

Excludes (i) the net impact of $10,734 of charges associated with the Company's previously disclosed 2023 restructuring plan, $915 of charges associated with the Company's previously disclosed 2022 restructuring plan and the reversal of $39 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan, and (ii) the impact of $8,605 of acquisition transaction costs. 

Excludes (i) the net impact of (a) $19,869 of charges and $10,734 of charges associated with the Company's previously disclosed 2023 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (b) the reversal of $269 of charges and $915 of charges associated with the Company's previously disclosed 2022 restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, (c) $96 of charges and the reversal of $39 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan recorded to cost of subscription revenues and selling, general and administrative expenses, respectively, and (d) the reversal of $21 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan recorded to cost of subscription revenues, and (ii) the impact of $8,605 of acquisition transaction costs recorded to selling, general and administrative expenses. 

Excludes (i) the net impact of $7,663 of charges associated with the Company's previously disclosed 2023 restructuring plan, $162 of charges associated with the Company's previously disclosed 2022 restructuring plan, $14 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $5 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan, and (ii) the impact of $1,070 of acquisition transaction costs. 

Excludes (i) the net impact of $22,940 of charges associated with the Company's previously disclosed 2023 restructuring plan, $484 of charges associated with the Company's previously disclosed 2022 restructuring plan, $43 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $16 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan, and (ii) the impact of $7,535 of acquisition transaction costs. 

Excludes (i) the net impact of $0.30 of charges associated with the Company's previously disclosed 2023 restructuring plan, $0.01 of charges associated with the Company's previously disclosed 2022 restructuring plan, $0.00 of charges associated with the Company's previously disclosed 2021 organizational restructuring plan and the reversal of $0.00 of charges associated with the Company's previously disclosed 2020 organizational restructuring plan, and (ii) the impact of $0.10 of acquisition transaction costs. 

Net (Loss) Income

Interest

Taxes

Depreciation and Amortization

Stock-based Compensation

EBITDAS

Franchise Rights Acquired Impairments

2024 Plan Restructuring Charges ⁽³⁾

2023 Plan Restructuring Charges ⁽⁴⁾

2022 Plan Restructuring Charges ⁽⁵⁾

2021 Plan Restructuring Charges ⁽⁶⁾

2020 Plan Restructuring Charges ⁽⁷⁾

Acquisition Transaction Costs ⁽⁸⁾

Former CEO Separation Expenses ⁽⁹⁾

Adjusted EBITDAS

Impairment charges of the Company's franchise rights acquired of $54,295 and $2,750 related to its United States and United Kingdom units of account, respectively.

Impairment charges of the Company's franchise rights acquired of $305,726, $4,074, $2,905 and $2,328 related to its United States, Australia, United Kingdom and New Zealand units of account, respectively.

Charges associated with the Company's previously disclosed 2024 restructuring plan.

The reversal of charges or charges, as applicable, associated with the Company's previously disclosed 2023 restructuring plan.

The reversal of charges or charges, as applicable, associated with the Company's previously disclosed 2022 restructuring plan.

Charges associated with the Company's previously disclosed 2021 organizational restructuring plan.

The reversal of charges associated with the Company's previously disclosed 2020 organizational restructuring plan.

Certain non-recurring transaction costs in connection with the Company's acquisition of Sequence.

Certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer.

Net Debt to Adjusted EBITDAS

Net (Loss) Income

Interest

Taxes

Depreciation and Amortization

Stock-based Compensation

EBITDAS

Franchise Rights Acquired and Goodwill Impairments

2024 Plan Restructuring Charges ⁽⁴⁾

2023 Plan Restructuring Charges ⁽⁵⁾

2022 Plan Restructuring Charges ⁽⁶⁾

Former CEO Separation Expenses ⁽⁷⁾

Adjusted EBITDAS

Total Debt

Less: Cash

Net Debt

Total Debt to Net Loss

Net Debt to Adjusted EBITDAS

Impairment charges of the Company's goodwill of $2,383 and $1,203 related to its Republic of Ireland and Northern Ireland reporting units, respectively, and the impairment charge of the Company's franchise rights acquired of $47 related to its Northern Ireland unit of account.

Impairment charges of the Company's franchise rights acquired of $251,431, $4,074, $2,328 and $155 related to its United States, Australia, New Zealand and United Kingdom units of account, respectively.

Impairment charges of the Company's franchise rights acquired of $54,295 and $2,750 related to its United States and United Kingdom units of account, respectively.

Charges associated with the Company's previously disclosed 2024 restructuring plan.

Charges or the reversal of charges, as applicable, associated with the Company's previously disclosed 2023 restructuring plan.

Charges or the reversal of charges, as applicable, associated with the Company's previously disclosed 2022 restructuring plan.

Certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer.

Adjusted Operating Income

Other (Expense) Income, net

Depreciation and Amortization

Stock-based Compensation

Adjusted EBITDAS

Operating Loss

Franchise Rights Acquired Impairments ⁽¹⁾

Net Restructuring Charges ⁽²⁾

Former CEO Separation Expenses ⁽³⁾

Adjusted Operating Income

Reflects the impairment charges of the Company's franchise rights acquired related to its United States, Australia, United Kingdom and New Zealand units of account in the first nine months of fiscal 2024.

Reflects the net restructuring charges incurred in the first nine months of fiscal 2024 related to the Company's previously disclosed 2024 restructuring plan, 2023 restructuring plan and 2022 restructuring plan.

Reflects certain non-recurring expenses in connection with the separation from the Company of its former Chief Executive Officer in the third quarter of fiscal 2024.