DS9 Document EFTA01153768

CORE: Income Statement - 2015-2012 Modified Cash Basis (1) (000's) Revenue Forecast 2015 PI' 2014 Pe 2013 PI' 2012 Var 15 to'14 % Chg 15 to'14 Var 14 to'13 %Chg 14 to'13 Var 13 to'12 % Chg 13 to'12 New Member Initiation Fees 1.535 1.380 1.520 1.255 155 11.2% (140) -9.2% 265 21.1% New Member Dues 638 544 587 526 94 17.3% (43) -7.3% 61 11.6% Renewable Dues 5.576 5.421 5.054 4.839 155 2.9% 367 7.3% 215 4.4% Founding Member Dues 988 328 336 314 660 201.2% (8) -2.4% 23 7.2% Sponsorship/License Fees 510 409 620 555 102 24.8% (212) -34.1% 65 11.8% Food Sales 2.024 1.864 2.050 2.053 160 8.6% (186) -9.1% (3) -0.1% Beverage Sales 1.898 1.761 1.894 1.636 137 7.8% (133) -7.0% 258 15.8% Other F&B Sales 653 660 613 483 (7) -1.0% 47 7.6% 130 26.9% Accommodations Revenue 383 336 344 299 47 14.1% (8) -2.4% 45 15.2% Wellness Revenue 1.000 1.011 1.062 985 (11) -1.1% (51) -4.8% 77 7.8% Gross Revenue 15,205 13.714 14.080 12.944 1.491 10.9% (366) -2.6% 1.136 8.8% Cost of Sales-Food 608 551 652 569 57 10.3% (101) -15.5% 83 14.6% Cost of Sales-Beverage 547 500 477 380 47 9.5% 23 4.8% 97 25.6% Cost of Sales-Equipment Rental 228 204 200 168 24 11.7% 4 2.1% 32 19.0% Cost of Sales-Suites 192 168 172 149 24 14.1% (4) -2.4% 23 15.5% Cost of Sales-Wellness 695 703 780 733 (8) -1.1% (77) -9.9% 47 6.4% FM Discounts & Allowances 836 744 999 823 93 12.4% (255) -25.6% 176 21.4% Total Cost of Sales 3.106 2.870 3.280 2.822 237 8.2% (410) -12.5% 458 16.2% Gross Profit 12.099 10.844 10.800 10,122 1,255 11.6% 44 0.4% 678 6.7% EFTA01153768 CORE: Income Statement - 2015-2012 Modified Cash Basis (1) (000's) Payroll & Benefits Forecast 2015 FY 2014 FY 2013 FY 2012 Var 15 to'14 % Chg 15 to'14 Var 14 to'13 %Chg 14 to'13 Var 13 to'12 % Chg 13 to'12 Payroll-Membership 1,625 1.433 1.652 1.552 192 13.4% (219) -13.3% 100 6.4% Payroll-Food & Beverage 2.274 2.093 2.053 1.904 181 8.6% 40 1.9% 149 7.8% Payroll-General & Administrative 755 715 745 804 40 5.6% (30) -4.0% (59) -7.3% Total Payroll 4,654 4.241 4.450 4.260 413 9.7% (209) -4.7% 190 4.5% Operating Expenses Membership 1.051 989 1.030 952 62 6.3% (41) -4.0% 78 8.2% Food & Beverage 475 463 432 412 12 2.6% 31 7.2% 20 4.9% General & Administrative 4.084 3.784 3.423 3.317 300 7.9% 361 10.5% 106 3.2% Accommodations 64 58 68 60 6 10.9% (10) -14.7% 8 13.3% Wellness 174 157 138 130 17 10.9% 19 13.8% 8 6.2% Total Departmental Expenses 5.848 5.451 5.091 4,871 397 7.3% 360 7.1% 220 4.5% Net Operating Income (EBITDA) 1.596 1.152 1.259 991 445 38.6% (107) -8.5% 268 27.0% Debt Service - Prinicpal (493) (460) (400) (340) (33) -7.2% (60) -15.0% (60) -17.6% Debt Service - Interest (23) (47) (69) (112) 24 51.1% 22 31.9% 43 38.4% Sales Tax Audit (50) (36) (50) (28) (14) -38.9% 14 28.0% (22) -80.5% Capital Expenses (250) (265) (165) (210) 15 5.7% (100) -60.6% 45 21.5% Resigned Member Refunds (20) (20) (45) (52) 0.0% 25 55.1% 8 14.4% Depreciation (2.064) (2.064) (2.064) (2,064) 0.0% 0.0% 0.0% Net Income' (1,304) (1.740) (1.534) (1,815) 437 25.1% (207) -13.5% 281 15.5% *2014 & 2015 Net Income excludes impact of CODI (cancellation of debt income) due to restructuring. EFTA01153769 CORE: Income Statement - 2015-2012 Modified Cash Basis (1) (000's) Forecast PI' Pe FY Var % Chg Var %Chg Var % Chg 2015 2014 2013 2012 15 to'14 15 to'14 14 to'13 14 to'13 13 to'12 13 to'12 Key Metrics 1430 61 1404 59 1380 65 1360 59 I of Club Members ft of New Memberships Sold Average Initiation Fee per New Membership S 25.164 $ 23.390 $ 23.385 $ 21,271 Average Annual Dues per New Membership S 10.459 $ 9.220 $ 9.031 $ 8,915 Membership Retention Rate 90.0% 94.1% 91.3% 94.1% Food Cost% 30.0% 29.6% 31.8% 27.7% Beverage Cost% 28.8% 28.4% 25.2% 23.2% F&B Labor Cost 49.7% 48.8% 45.1% 45.6% Total F&B Dining Covers 36.738 36.247 35.706 37.940 Average F&B Dining Check $ S 58.37 $ 56.56 $ 57.85 $ 56.42 Total F&B Event Covers 14.780 13.956 15.273 16.471 Average Event F&B Check $ S 120.27 $ 114.19 $ 120.99 $ 101.54 Average Non-Dues Spend Per Membership S 8.827 $ 8.572 $ 9.633 $ 9.017 EFTA01153770 CORE: Proforma Balance Sheet Post Restructuring as at 12/31/15(a) ($000's) ASSETS Cash $760 Accounts receivable 23 Other current assets 184.3 Current Assets $967 Fixed Assets. Net 7 920 Total Assets $8.887 LIABILITIES & EQUITY Accounts payable & accrued exp. (1) $3,067 Bank debt - current portion 168 Refundable Initiation Fees - Resigned members (2) 5,593 Active Members (3) 7,754 Deferred Revenue 6,406 Deferred Rent 798 Current Liabilities $23.786 Total Liabilities $23.786 Shareholder Equity ("SE") -14 899 Total Liabilities & SE $8.887 Footnotes: (1) This liability could be reduced by up to $2.5M pending negotiations with RFR and the buyout of their interest (2) This liability is primarily being addressed through services in kind in lieu of cash (3) Represents a contingent liability that is not due until a member resigns Assumptions: a.) The figures presented are before outside accountants review b.) Assumes elimination of FM Notes c.) Assumes elimination of AES Loan and related amounts due RFR d.) Assumes all debt forgiveness flows through as income to the company in 2014 (FM) and 2015 (AES) EFTA01153771 CORE: Cash Flow for the period ending Dec 31, 2014 (000's) Operating Receipts Cash Receipts - Operations 11,915 Cash Receipts - LC Drawdown 475 Cash Receipts - Other A/R Collections 1,794 Total Receipts 14,184 Operating Disbursements Disbursements to Suppliers (4,997) Disbursements for Payroll (5,357) Disbursements for Benefit Plans (net) (561) Disbursements for Rent (1,400) Disbursements for LC Replenishment (475) Disbursements for Sales Tax (437) Total Operating Disbursements (13,227) Net cash provided by operating activities 957 Less Non-Operating Disbursements Debt Service - Prinicpal (460) Debt Service - Interest (47) Sales Tax Audit (36) Capital Expenses (1) (265) Resigned Member Refunds (20) Total Non-Operating Disbursements (828) Net Increase/(Decrease) in Cash & Cash Equivalents 129 Cash & Cash Equivalents at the Beginning of Period 195 Cash & Cash Equivalents at the end of Period (2,3) 324 Footnotes: (1) Annual Capital Expense investment will depend on whether club lease is extended or we opt to relocate. Annual capital between $100-200k will be necessary for FF&E improvements (2) 2015 free cash & cash equivalents expected to be $750k (3) 2016 free cash & cash equivalents expected to be $1.3M due to payoff of term loan & sales tax audits. EFTA01153772