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
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