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Weight Watchers International's CEO Discusses Q2 2012 Results - Earnings Call Transcript

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.

As has been previously been announced, the company has hired a new Chief Financial Office, Nick Hotchkin, who starts his employment with the company as of August 20 of this year. Consequently, for this call, David's remarks will also cover the financial section of the company's results.

I would now like to turn the call over to Dave. Please go ahead.

David Kirchhoff

Good afternoon and thank you for joining as we review Weight Watchers International's performance for the second quarter of fiscal 2012. Overall, Q2 2012 financial results were in line with our expectations and previously provided guidance. However, as we will discuss later, we are now taking a more cautious view of the second half of the year.

During June and July we've seen weakening in our business trends we believe driven by the combination of increasing uncertainty in the economy, as well as some indications of wear-out of our current advertising campaign in the U.S.

Turning back to a review of the second quarter. On a constant currency basis Q2 2012 total revenue was up slightly at plus 2.3% over the prior year period. With meeting fees down 5.5% and meeting product sales down 8.1% and Internet revenue growing 31%.

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