Professional Documents
Culture Documents
1994
1995
1996
Total Revenue
Club Operating Expenses
Gross Profit
Rent and Other Expensesb
Depreciation and Amortization
Operating Income
Net Interest Expense
Non-Recurring Expensesc
Pre-Tax Income
Income Taxes
Net Income
8,316
5,779
2,537
1,831
363
343
17
0
325
146
179
9,957
6,990
2,967
2,226
426
315
3
36
279
126
153
12,584
8,837
3,747
2,869
517
361
(22)
52
331
158
173
13,636
9,337
4,299
2,842
619
838
(28)
186
680
333
347
14,549
9,877
4,672
2,771
682
1,219
(36)
40
1,216
499
716
16,162
10,885
5,277
2,299
1,058
1,920
480
(6)
1,445
660
785
19,324
13,130
6,194
2,275
1,233
2,687
975
0
1,712
729
982
Expense Adjustments
Non-Recurring Items
Directors Wages and Fees
Professional Fees
Terminated Operations
Contributions and Other Items
Adjusted Pre-Tax Income
0
42
24
0
0
391
36
40
44
0
2
400
52
83
68
0
3
537
-3
78
140
236
4
1,135
40
64
143
41
41
1,544
-6
74
123
0
28
1,665
0
91
126
0
17
1,946
771
9.30%
830
8.30%
1,032
8.20%
1,726
12.70%
2,190 3,202e
15.10%
19.80%
4,152
21.50%
Adjusted EBITDAd
EBITDA Margin
2000a
a Projections include only current HDC properties, and include no assumptions regarding additional future acquisitions.
b Includes Rent, Insurance, Real Estate Taxes, and other Tax Expenses.
c Includes $50,000 in claim settlement in 1996; $189,000 in losses on a club termination in 1997; $40,000 in purchase financin
d Figure includes $80,000 and $528,000 of losses for the companys new Andover facility for 1999 and 2000, respectively.
e Does not reflect a full year of ownership of HDCs Lexington facility, which would result in an additional $200,000 of EBITDA
2001a
2002a
21,311
14,313
6,998
2,375
1,466
3,157
1094
0
2,062
798
1,264
22,809
15,092
7,717
2,510
1,452
3,755
1061
0
2,694
1,032
1,662
0
96
130
0
19
2,307
0
102
130
0
22
2,948
4,867
22.80%
5,460
23.90%
future acquisitions.
997
226
21
127
1,371
12,047
1,320
13,367
(3,349)
10,018
716
12,105
135
1,250
1,888
210
39
3,522
6,704
682
7,386
9
718
470
1,197
12,105
Exhibit 3
2,612
2,612
504
162
0
0
0
925
1,946
1,687
471
1,071
504
162
471
1,071
0
0
EBITDA
4,154
3,229
Multiple
20,770
16,145
Operations Value
Plus:
Excess Cash
Total Enterprise Value
Less:
Corporate debt (excluding Lexington)
Lexington real estate debt
Equity Value
750
20,770
16,895
1,917
5,750
1,917
0
13,103
14,978
925
Particular
Estimated Revenue of the Lexington Club
Lease Payment
Growth Rate
Effective life of the Real Estate
Purchase Price
Discount Rate
PV of lease rent
NPV of real estate
23.50%
5%
20
$
3900000 Page 2
925000 Page 2
Page 2
Assumption
6500000 Page 2
8.5%
13346959
6846959
2,612
925
1,687
471
1,071
EBITDA
Multiple
3,229
5
16145
750
1917
14978
925
10
9250
Ex. 3
Ex. 3
Ex. 3
Ex. 3
2,612
525
2,087
471
1,071
Ex. 3
3,629
5
Ex. 3
Ex. 3
18145
750
1917
16978
Ex. 3
assumption
24228
5750
750
17728
525
10
5250
22228
Ex. 3
Ex. 3
5750
750
15728
Page 2