CLUB » Topics » We may experience prolonged periods of losses in our recently opened clubs.

These excerpts taken from the CLUB 10-K filed Mar 5, 2009.
We may experience prolonged periods of losses in our recently opened clubs.
 
We have opened a total of 24 new club locations that we have constructed in the 24-month period ended December 31, 2008. Upon opening a club, we typically experience an initial period of club operating losses. Enrollment from pre-sold memberships typically generates insufficient revenue for the club to initially generate positive cash flow. As a result, a new club typically generates an operating loss in its first full year of operations and substantially lower margins in its second full year of operations than a club opened for more than 24 months (“mature club”). These operating losses and lower margins will negatively impact our future results of operations. This negative impact will be increased by the initial expensing of pre-opening costs, which include legal and other costs associated with lease negotiations and permitting and zoning requirements, as well as depreciation and amortization expenses, which will further negatively impact net income. We may, at our discretion, accelerate or expand our plans to open new clubs, which may temporarily adversely affect results from operations.
 
We may
experience prolonged periods of losses in our recently opened
clubs.



 



We have opened a total of 24 new club locations that we have
constructed in the
24-month
period ended December 31, 2008. Upon opening a club, we
typically experience an initial period of club operating losses.
Enrollment from pre-sold memberships typically generates
insufficient revenue for the club to initially generate positive
cash flow. As a result, a new club typically generates an
operating loss in its first full year of operations and
substantially lower margins in its second full year of
operations than a club opened for more than 24 months
(“mature club”). These operating losses and lower
margins will negatively impact our future results of operations.
This negative impact will be increased by the initial expensing
of pre-opening costs, which include legal and other costs
associated with lease negotiations and permitting and zoning
requirements, as well as depreciation and amortization expenses,
which will further negatively impact net income. We may, at our
discretion, accelerate or expand our plans to open new clubs,
which may temporarily adversely affect results from operations.


 




These excerpts taken from the CLUB 10-K filed Feb 29, 2008.
We may experience prolonged periods of losses in our recently opened clubs.
 
We have opened a total of 24 new club locations that we have constructed in the 24-month period ended December 31, 2007. Upon opening a club, we typically experience an initial period of club operating losses. Enrollment from pre-sold memberships typically generates insufficient revenue for the club to generate positive cash flow. As a result, a new club typically generates an operating loss in its first full year of operations and substantially lower margins in its second full year of operations than a club opened for more than 24 months (“mature club”). These operating losses and lower margins will negatively impact our future results of operations. This negative impact will be increased by the initial expensing of pre-opening costs, which include legal and other costs associated with lease negotiations and permitting and zoning requirements, as well as depreciation and amortization expenses, which will further negatively impact net income. We may, at our discretion, accelerate or expand our plans to open new clubs, which may temporarily adversely affect results from operations.
 
We may
experience prolonged periods of losses in our recently opened
clubs.



 



We have opened a total of 24 new club locations that we
have constructed in the
24-month
period ended December 31, 2007. Upon opening a club, we
typically experience an initial period of club operating losses.
Enrollment from pre-sold memberships typically generates
insufficient revenue for the club to generate positive cash
flow. As a result, a new club typically generates an operating
loss in its first full year of operations and substantially
lower margins in its second full year of operations than a club
opened for more than 24 months (“mature club”).
These operating losses and lower margins will negatively impact
our future results of operations. This negative impact will be
increased by the initial expensing of pre-opening costs, which
include legal and other costs associated with lease negotiations
and permitting and zoning requirements, as well as depreciation
and amortization expenses, which will further negatively impact
net income. We may, at our discretion, accelerate or expand our
plans to open new clubs, which may temporarily adversely affect
results from operations.


 




This excerpt taken from the CLUB 10-K filed Mar 13, 2007.
We may experience prolonged periods of losses in our recently opened clubs.
 
We have opened a total of 15 new club locations that we have constructed in the 24-month period ended December 31, 2006. Upon opening a club, we typically experience an initial period of club operating losses. Enrollment from pre-sold memberships typically generates insufficient revenue for the club to generate positive cash flow. As a result, a new club typically generates an operating loss in its first full year of operations and substantially lower margins in its second full year of operations than a mature club. These operating losses and lower margins will negatively impact our future results of operations. This negative impact will be increased by the initial expensing of pre-opening costs, which include legal and other costs associated with lease negotiations and permitting and zoning requirements, as well as increased depreciation and amortization expenses, which will further negatively impact net income. We may, at our discretion, accelerate or expand our plans to open new clubs, which may temporarily adversely affect results from operations.
 
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