FDD Talk Daily: Average Revenue, Costs, and Operating Profits of Affiliate-Owned Gold’s Gym Facilities

Highlights of Gold’s Gym’s Item 19 Financial Performance Representations (2012 FDD) – Part 2

• As of December 31, 2011, GHC’s subsidiaries operated 63 Gold’s Gym Facilities in the United States. However, some of these Gold’s Gym Facilities were not open for 2 full years as of December 31, 2011, and based on the company’s experience, it often takes a Gold’s Gym Facility about 2 years to get through its initial ramp-up period and eliminate the non-recurring distortions which sometimes result from the facility’s grand opening and which can impact revenue and expenses.

• This financial performance representation excludes results for the 3 Gold’s Gym Facilities that GHC’s subsidiaries own that did not operate for the entire 2-year period from January 1, 2010 until December 31, 2011.

• This financial performance representation also excludes results for all franchised Gold’s Gym Facilities. Although the company receives expense data from some, but not all, of the franchised Gold’s Gym Facilities, it found in recent reports that its franchisees varied in their reporting of many expense items. The company has determined that providing expense data on only Gold’s Gym Facilities that GHC’s subsidiaries own allows for more uniform reporting.

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