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Reportable Segments
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
The Company’s operating segments are New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs, Swiss Sports Clubs and BFX Studio, which is the level at which the chief operating decision makers review discrete financial information and make decisions about segment profitability based on earnings before income tax depreciation and amortization. The Company has historically determined that these clubs have similar economic characteristics and meet the criteria which permit them to be aggregated into one reportable segment. During the fourth quarter of 2014, BFX Studio started to be managed separately and reported as a separate reportable segment as it does not meet the aggregation criteria to be aggregated with the clubs. Geographically, the Company operates its fitness clubs mainly in the United States. Segment information on geographic regions is not material for presentation.
The following tables set forth the Company’s financial performance by reportable segment for the three and six months ended June 30, 2015 and 2014.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
Clubs
$
107,730

 
$
115,697

 
$
218,800

 
$
231,600

BFX Studio
566

 

 
920

 

Total Revenues
$
108,296

 
$
115,697

 
$
219,720

 
$
231,600


The Company presents earnings (loss) before interest expense (net of interest income), provision (benefit) for corporate income taxes, and depreciation and amortization ("EBITDA") as the primary measure of profit and loss for its operating segments in accordance with FASB guidance for segment reporting. Clubs EBITDA includes all corporate overhead expenses and the impact of equity in the earnings of investees and rental income. In the three and six months ended June 30, 2015, BFX Studio reported EBITDA loss of $1,091 and $2,040, respectively, and $923 and $1,564, respectively, for the comparable prior-year periods, primarily reflecting the rent and occupancy costs, start-up costs and overhead payroll for the Company's three BFX Studio locations opened in September 2014, March 2015 and June 2015, and one other studio location under development.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
EBITDA:
 
 
 
 
 
 
 
Clubs
$
(27,603
)
 
$
15,483

 
$
(22,310
)
 
$
26,419

BFX Studio
(1,091
)
 
(923
)
 
(2,040
)
 
(1,564
)
Total reportable segments
(28,694
)
 
14,560

 
(24,350
)
 
24,855

Depreciation and amortization
12,178

 
11,853

 
23,852

 
23,651

Interest expense
5,188

 
4,697

 
10,358

 
9,408

Loss before benefit for corporate income taxes
$
(46,060
)
 
$
(1,990
)
 
$
(58,560
)
 
$
(8,204
)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Capital Expenditures:
 
 
 
 
 
 
 
Clubs
$
6,860

 
$
8,699

 
$
11,799

 
$
13,942

BFX Studio
3,550

 
304

 
4,994

 
2,246

Total Capital Expenditures
$
10,410

 
$
9,003

 
$
16,793

 
$
16,188