Operating Data

The following operating data reflect membership sales and cash flow data. Since this data is not affected by the Company's revenue recognition policy or other accounting matters, the Company does not expect these items to change as a result of the previously announced restatements. However, the following operating data has not been reviewed by KPMG LLP and therefore is subject to change, which changes may be material individually or in the aggregate.

2004

The following table shows new memberships sold and related data for the three and twelve months ended December 31, 2004 and 2003 (in thousands except monthly data):

 
                                                    Three months ended
Operating Data                                             December 31
                                        ------------------------------
                                                2004       2003  % Chg
                                        ------------  --------- ------
 
New joining members                             240        200     20%
Average committed monthly fee (dollars) $     37.18  $   39.18     -5%
Average committed duration (in months)         28.5       30.0     -5%
Gross committed membership fees:
 Total Company                          $   254,340  $ 235,103      8%
 Same club                              $   233,251  $ 224,848      4%
Members (end of period)                       3,992      3,956      1%
 
 
                                                   Twelve months ended
Operating Data                                             December 31
                                        ------------------------------
                                              2004         2003  % Chg
                                        ---------- ------------ ------
 
New joining members                           1,112         910    22%
Average committed monthly fee (dollars) $     38.05  $    39.19    -3%
Average committed duration (in months)        29.4         30.5    -4%
Gross committed membership fees:
 Total Company                          $ 1,243,960  $1,087,723    14%
 Same club                              $ 1,151,221  $1,060,864     9%
Members (end of period)                       3,992       3,956     1%
 
Gross committed membership fees is an operating measure which
includes the total potential future value of all initial membership
fee revenue, dues revenue, earned finance charges and
membership-related products and services revenue from new membership
sales in a period. It is measured on a gross basis before
consideration of any uncollectible amounts. The Company tracks gross
committed membership revenue as an indicator of its current sales
activities and believes it to be a useful measure of current trends in
membership sales.
 
The following table shows cash flow and balance sheet data for 2004
(in thousands):
 
 
Cash flow                   Three months ended  Twelve months ended
                             December 31, 2004     December 31,2004
                            ------------------  -------------------
Cash provided by (used in)
  operating activities           $     (8,109)         $     18,746
Cash used in investing
  activities                           (6,914)             (36,433)
                                 -------------         ------------
 Free cash flow (deficit)        $    (15,023)         $   (17,687)
                                 =============         ============
 
Selected balance sheet data
                                                                 As of
                                                     December 31, 2004
                                  ------------------------------------
    Cash and equivalents                                      $19,516
    Total debt                                                760,676
                                  ------------------------------------
    Net debt                                                 $741,160
                                  ====================================
 
 
Expenses incurred as a result of the previously disclosed
investigations and consent fees as well as consulting fees totaled
approximately $16 million in 2004, the majority of which were paid in
the fourth quarter.
 
2005
 
   The following table shows new membership sales and related data
for the two months ended February 28, 2005 and February 29, 2004 (in
thousands, except monthly data):
 
                                    Two             Two
                                months ended   months ended     %
                               Feb. 28, 2005   Feb. 29, 2004   Change
                               -------------   -------------  -------
 
Operating Data
New joining members                 242              220        10%
Average committed
  monthly fee (dollars)          $36.34           $38.66        -6%
Average committed duration
 (in months)                       27.8            30.00        -8%
Gross committed membership
 fees:
Total Company                  $244,450          255,149        -4%
Same club                      $226,536          244,792        -8%
Members (end of period)           4,050            3,989         2%
 
 
The following table shows selected cash flow for the two months ended
February 28, 2005 and February 29, 2004 and balance sheet data as of
February 28, 2005 (in thousands):
 
 
                                 Two months ended     Two months ended
                                 February 28, 2005   February 29, 2004
                                 -----------------   -----------------
Cash flow
 
   Cash provided by operating
    activities                        $     18,341        $     1,504
   Cash used in investing
    activities                             (5,287)             (9,092)
                                      ------------        ------------
     Free cash flow (deficit)            $ 13,054         $    (7,588)
                                      ============        ============
 
 
Interim cash flow data and or trends should not be considered
indicative of data or trends to be expected for annual or interim
periods.
 
                                        As of
                                     February
                                     28, 2005
                                    ---------
Selected balance sheet data
   Cash and equivalents             $  33,264
   Total debt                         761,483
                                    ---------
     Net debt                       $ 728,219
                                    =========