Bally Total Fitness Holding Corporation
FINANCIAL HIGHLIGHTS
The following is a summary of financial data provided in the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2006. Please refer to this filed document for
a more complete explanation of the Company’s results.
a more complete explanation of the Company’s results.
Unaudited | Unaudited | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Net revenues | (dollars in thousands, except per share and per member) | |||||||||||||||
Membership | $ | 207,342 | $ | 211,546 | $ | 416,093 | $ | 418,599 | ||||||||
Personal training | 32,207 | 31,823 | 63,111 | 60,905 | ||||||||||||
Membership services revenue | 239,549 | 243,369 | 479,204 | 479,504 | ||||||||||||
Retail products | 11,460 | 12,640 | 23,397 | 25,987 | ||||||||||||
Miscellaneous | 3,622 | 3,608 | 7,196 | 7,879 | ||||||||||||
Net revenues | 254,631 | 259,617 | 509,797 | 513,370 | ||||||||||||
Operating costs and expenses | ||||||||||||||||
Membership services | 170,203 | 170,713 | 342,488 | 338,674 | ||||||||||||
Retail products | 10,667 | 13,424 | 21,678 | 26,232 | ||||||||||||
Advertising | 16,180 | 14,641 | 35,075 | 31,752 | ||||||||||||
Information technology | 5,303 | 5,472 | 10,398 | 10,782 | ||||||||||||
Other general and administrative | 15,927 | 16,111 | 32,221 | 28,671 | ||||||||||||
Gain on sale of land and building | (872 | ) | — | (1,773 | ) | — | ||||||||||
Depreciation and amortization | 13,233 | 15,023 | 27,447 | 29,962 | ||||||||||||
230,641 | 235,384 | 467,534 | 466,073 | |||||||||||||
Operating income | 23,990 | 24,233 | 42,263 | 47,297 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest expense, net | (26,148 | ) | (21,164 | ) | (49,181 | ) | (39,241 | ) | ||||||||
Foreign exchange gain (loss) | 1,760 | (163 | ) | 1,770 | 44 | |||||||||||
Other, net | 166 | 64 | 284 | 139 | ||||||||||||
(24,222 | ) | (21,263 | ) | (47,127 | ) | (39,058 | ) | |||||||||
Income (loss) from continuing operations before income taxes | (232 | ) | 2,970 | (4,864 | ) | 8,239 | ||||||||||
Income tax provision | (501 | ) | (239 | ) | (702 | ) | (479 | ) | ||||||||
Income (loss) from continuing operations | (733 | ) | 2,731 | (5,566 | ) | 7,760 | ||||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations net of income taxes | — | (1,124 | ) | (872 | ) | (1,538 | ) | |||||||||
Gain on disposal | — | — | 38,375 | — | ||||||||||||
Gain (loss) from discontinued operations | — | (1,124 | ) | 37,503 | (1,538 | ) | ||||||||||
Net income (loss) | $ | (733 | ) | $ | 1,607 | $ | 31,937 | $ | 6,222 | |||||||
Basic net income (loss) per common share | $ | (0.02 | ) | $ | 0.05 | $ | 0.82 | $ | 0.19 | |||||||
Operating data | ||||||||||||||||
Average monthly membership revenue recognized per member | $ | 19.21 | $ | 19.19 | $ | 19.37 | $ | 19.09 | ||||||||
Average monthly cash received per member | $ | 17.84 | $ | 17.79 | $ | 18.30 | $ | 18.38 | ||||||||
Average number of members during the period (000’s) | 3,598 | 3,674 | 3,581 | 3,654 | ||||||||||||
Members at end of period (000’s) | 3,600 | 3,671 | 3,600 | 3,671 | ||||||||||||
Number of new members joining during the period (000’s) | 278 | 292 | 635 | 657 | ||||||||||||
Fitness centers open at end of period | 383 | 391 | 383 | 391 | ||||||||||||
Summary cash flow data | ||||||||||||||||
Cash provided by operating activities | $ | 10,331 | $ | 35,675 | ||||||||||||
Cash provided by (used in) investing activities | 29,908 | (13,019 | ) | |||||||||||||
Cash used in financing activities | (42,890 | ) | (12,599 | ) | ||||||||||||
Increase (decrease) in cash | $ | (2,651 | ) | $ | 10,057 | |||||||||||
Cash interest paid | $ | 39,883 | $ | 35,737 | ||||||||||||
Non-GAAP Financial Measures
The Company uses EBITDA as a measure of operating performance. The Company defines EBITDA as operating income plus depreciation and amortization. This term is not a measure of performance presented in accordance with GAAP and should not be considered as a substitute for cash flows provided by operating activities or other cash flow and income data prepared in accordance with GAAP. This term as defined by Bally may not be comparable to similarly titled measures used by other companies.
The following table reconciles this non-GAAP measure to operating income.
Unaudited | Unaudited | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Operating income | $ | 23,990 | $ | 24,233 | $ | 42,263 | $ | 47,297 | ||||||||
Depreciation and amortization | 13,233 | 15,023 | 27,447 | 29,962 | ||||||||||||
EBITDA | $ | 37,223 | $ | 39,256 | $ | 69,710 | $ | 77,259 | ||||||||