Highlights of The Learning Experience’s Item 19 Financial Performance Representations (2013 FDD) – Part 2
Explanatory Notes for Part B – Average Gross Sales and Selected Expenses for 10 Company-Owned Mature Centers During the Reporting Period
- As of March 31, 2013, there were 10 Mature Centers that were company majority-owned (8) or wholly-owned by TLE executives (2) — collectively, “Company-Owned Centers”. These 10 Centers have all been operating for more than 48 months.
- The following table reflects the average annual gross sales, a few selected expenses, and EBITDAR (which is an acronym for Earnings Before Interest, Taxes, , Amortization, and Gross Rent) for all 10 of these Centers. The averages are shown below.
- The number and percentage of the Mature Centers whose average annual gross sales exceeded the average is 5, or 50%, and the high/low range was $1,705,000 to $1,004,000.
- The information appearing in Part B is limited to Company-Owned Mature Centers that were open and operating for more than 48 months because the Franchised Centers have not uniformly provided the franchisor with the P&L data required to permit it to accurately calculate the comparable categories for their Centers. Nevertheless, the franchisor has no reason to believe that comparable expenses of Franchised Mature Centers materially differ from those appearing in Part B.
- The 10 Company-Owned Mature Centers have been open and in continuous operation for an average of 96 months, with 7 located in New Jersey, 1 located in Massachusetts, and 2 located in Michigan.
- The percentages in Part B reflect the mean average of the total percentages for the applicable expense item, that is, the aggregate sum of the expense percentages of all reporting Centers divided by the number of reporting Centers.
- The table excludes certain expenses which all franchisees will incur. For example, base rent, CAM, property taxes and lease administration fees, interest, income taxes, depreciation and amortization are not deducted in arriving at EBITDAR.
- For the purpose of comparable analysis, the table reflects royalties of 7% as a direct deduction on revenue. However, in practice, the franchisor does not assess royalties on Company-Owned Centers; instead, it charges a management fee.
Part B – Average Gross Sales and Selected Expenses for 10 Company-Owned Mature Centers During the Reporting Period
- All figures are in thousands.