Company: WW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029511
Chunk: 162

Company: WW INTERNATIONAL, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 162
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 net benefit, our liquidity, results of operations and financial position may be materially adversely impacted.

We have recurring net losses. During fiscal 2024, we recorded an operating loss of $236.2 million and a net loss of $345.7 million. Operating loss included $315.0 million of franchise rights acquired impairments that were non-cash. Our annual revenues decreased from $889.6 million for fiscal 2023 to $785.9 million for fiscal 2024, in which the closure of the consumer products business resulted in a revenue decline of $55.0 million versus the prior year. Cash used for operating activities for fiscal 2024 was $16.8 million, which included $96.8 million of interest payments and $30.7 million of severance payments. We have a total deficit of $1,114.4 million at December 28, 2024. In addition, we have $1,430.6 million of long-term debt, net at December 28, 2024 and incurred $109.0 million in interest expense for fiscal 2024.

Our principal sources of liquidity are cash and cash equivalents, cash flows from operations and proceeds from the January 2025 borrowings under our Revolving Credit Facility (as defined below). Our primary cash needs for the twelve months following the issuance date of our financial statements contained in this Annual Report on Form 10-K (“issuance date”) are funding our operations and global strategic initiatives, meeting debt service requirements and other financing commitments. We believe that future cash flows from operations, unrestricted cash on hand of $53.0 million at December 28, 2024 (of which $22.0 million is maintained at foreign subsidiaries), proceeds from the January 2025 borrowings under our Revolving Credit Facility and the continued impact of our cost-savings initiatives will provide us with sufficient liquidity to meet our obligations for at least the next twelve months from the issuance date. Our Revolving Credit Facility matures on April 13, 2026. This facility provides a source of liquidity for us.

On January 2, 2025 and January 31, 2025, we increased our outstanding debt by borrowing $50.0 million and $121.3 million, respectively, under our Revolving Credit Facility currently at an interest rate of approximately 7.3%. As a result of these drawdowns and outstanding letters of credit, we have no availability for future borrowings under our Revolving Credit Facility. All outstanding