Inc St

Festa Fitness					Source: Festa Management Accounts
Management Accounts
Income Statement
Year ended	30-Jun-21	30-Jun-22	30-Jun-23	Note
	AUD	AUD	AUD
	Actual	Actual	Forecast
Revenue	56,416,768	84,132,492	96,453,120	1
Employee benefits expenses	18,465,900	24,858,821	30,845,000	2
Rental expenses	16,114,439	22,096,273	26,086,271
Merchandise COGS	1,961,671	2,943,223	3,329,375
Advertising and marketing costs	1,387,069	1,537,801	1,691,582
Bank charges	531,331	491,635	543,210
Utilities and cleaning	1,701,957	2,987,341	3,585,443
Licences and subscriptions	1,105,690	1,164,737	1,396,890
Insurances	627,715	490,357	602,120
Repairs and maintenance	806,737	911,427	1,035,000
Professional fees	570,063	558,861	630,000
Other expenses	3,105,975	1,348,857	1,620,625
EBITDA	10,038,221	24,743,159	25,087,605
Depreciation and amortisation expense	5,482,556	7,341,986	8,500,000
EBIT	4,555,665	17,401,173	16,587,605
Interest	175,238	843,076	945,067
PBT	4,380,427	16,558,097	15,642,538
Tax	1,314,128	4,967,429	4,692,761
PAT	3,066,299	11,590,668	10,949,776
EBITDA % of revenue	18%	29%	26%
NPAT % of revenue	5%	14%	11%
Revenue growth rate		49%	15%
Note 1
Revenue breakdown
Membership fees	51,765,091	76,896,629	88,092,785
Casual visits and classes	728,335	1,785,450	2,415,023
Merchandise	3,923,341	5,450,413	5,945,312
	56,416,768	84,132,492	96,453,120
Note 2
Employee remuneration
Wages and salaries	16,910,628	22,634,727	27,971,338	3
Superannuation expense	1,555,272	2,224,094	2,873,662
	18,465,900	24,858,821	30,845,000
Note 3
Wages and salaries breakdown
Gyms	15,551,572	20,624,339	25,570,664
Head office	1,359,056	2,010,388	2,400,674
	16,910,628	22,634,727	27,971,338
© 2023 Chartered Accountants Australia and New Zealand ABN 50 084 642 571. All rights reserved.

Balance Sheet

Festa Fitness					Source: Festa Management Accounts
Management Accounts
Balance Statement
Year ended	30-Jun-21	30-Jun-22	30-Jun-23	Note
	AUD	AUD	AUD
	Actual	Actual	Forecast
Assets
Current Assets
Cash and cash equivalents	9,397,078	9,915,902	10,122,744
Prepayments	719,211	828,624	900,000
Inventories	699,521	809,462	1,000,000
Total current assets	10,815,810	11,553,988	12,022,744
Non-current assets
Property, plant and equipment	49,707,684	62,009,555	70,100,000	4
Intangible assets	17,324,535	28,603,000	36,600,000
Total non-current assets	67,032,219	90,612,555	106,700,000
Total assets	77,848,029	102,166,543	118,722,744
Liabilities
Current liabilities
Trade and other payables	383,048	380,093	400,000
Borrowings	2,080,500	4,435,032	5,000,000
Employee entitlements provision	1,375,182	1,982,583	2,000,000
Total current liabilities	3,838,730	6,797,708	7,400,000
Non-current liabilities
Borrowings	5,927,000	15,695,868	20,700,000
Total non-current liabilities	5,927,000	15,695,868	20,700,000
Total liabilities	9,765,730	22,493,576	28,100,000
Net assets	68,082,299	79,672,967	90,622,744
Equity
Issued capital	55,000,000	55,000,000	55,000,000
Retained earnings	13,082,299	24,672,967	35,622,744
Total equity	68,082,299	79,672,967	90,622,744
Note 4
Property, plant and equipment
Plant and equipment		15,641,816	16,500,000
Furniture and fittings		6,100,011	5,800,000
Leasehold improvements		40,267,728	47,800,000
		62,009,555	70,100,000
© 2023 Chartered Accountants Australia and New Zealand ABN 50 084 642 571. All rights reserved.

Hist KPIs and Dash

Festa Fitness				Source: Festa management team
Historical KPIs
Year ended	30-Jun-21	30-Jun-22	30-Jun-23
	Actual	Actual	Forecast
CFO dashboard
Membership fee revenue	$ 51,765,091	$ 76,896,629	$ 88,092,785
Net member growth	20,674	42,230	17,295
Weekly revenue per member	$ 11.0	$ 11.1	$ 11.3
Recruitment cost per net new member *	$ 68.0	$ 83.0	$ 59.0
ROI	5%	15%	12%
EBITDA margin	18%	29%	26%
Minimum monthly cash balance	$ 5,130,453	$ 4,823,045	$ 7,563,120
Key financial results
Total revenue	$ 56,416,768	$ 84,132,492	$ 96,453,120
EBITDA	$ 10,038,221	$ 24,743,159	$ 25,087,605
Profit after tax	$ 3,066,299	$ 11,590,668	$ 10,949,776
Year end cash balance	$ 9,397,078	$ 9,915,902	$ 10,122,744
Net assets	$ 68,082,299	$ 79,672,967	$ 90,622,744
* Per net member recruited via online campaigns only (excluding business acquisitions)
Operational metrics
Number of locations	91	125	140
Number of members	90,725	132,955	150,250
Average members per location	997	1,064	1,073
Annual membership fees per member	$ 571	$ 578	$ 586
Merchandise income per location	$ 43,114	$ 43,603	$ 42,467
Employees **
Gyms
Headcount – gyms (actual)	805	910	1,011
Average hours worked per head	25	27	28
FTE – gyms ***	530	647	745
Average FTE's per gym	5.8	5.2	5.3
Head office
FTE – head office	12	18	20
Wages cost per gym FTE (based on year end FTEs)	$ 29,364	$ 31,898	$ 34,325
Wages cost per gym FTE (average)		$ 35,070	$ 36,752
Wages cost per head office FTE	$ 113,255	$ 114,879	$ 120,034
Members per gym employee	171	206	202
** Due to business acquisitions, averages using the year-end number of locations, members or staff will be skewed.
*** FTE (full time equivalents) is based on a 38-hour week and is a notional figure used for forecasting
© 2023 Chartered Accountants Australia and New Zealand ABN 50 084 642 571. All rights reserved.

Forecast 2024 PP&E

Property, plant & equipment
Month		June	July	August	September	October	November	December	January	February	March	April	May	June
Start date			01-Jul-23	01-Aug-23	01-Sep-23	01-Oct-23	01-Nov-23	01-Dec-23	01-Jan-24	01-Feb-24	01-Mar-24	01-Apr-24	01-May-24	01-Jun-24
Period ending		12	31-Jul-23	31-Aug-23	30-Sep-23	31-Oct-23	30-Nov-23	31-Dec-23	31-Jan-24	28-Feb-24	31-Mar-24	30-Apr-24	31-May-24	30-Jun-24
Forecast period		6/30/22	1	2	3	4	5	6	7	8	9	10	11	12
Number of days		30	31	31	30	31	30	31	31	28	31	30	31	30
			$	$	$	$	$	$	$	$	$	$	$	$
Existing PP&E
	Depreciationdate	Opening NBV
Property, plant and equipment	15.0%	$ 16,500,000	16,293,750	16,087,500	15,881,250	15,675,000	15,468,750	15,262,500	15,056,250	14,850,000	14,643,750	14,437,500	14,231,250	14,025,000
Furniture, fixtures and fittings	20.0%	$ 47,800,000	47,003,333	46,206,667	45,410,000	44,613,333	43,816,667	43,020,000	42,223,333	41,426,667	40,630,000	39,833,333	39,036,667	38,240,000
Leasehold improvements	10.0%	$ 5,800,000	5,751,667	5,703,333	5,655,000	5,606,667	5,558,333	5,510,000	5,461,667	5,413,333	5,365,000	5,316,667	5,268,333	5,220,000
NBV		$ 70,100,000	69,048,750	67,997,500	66,946,250	65,895,000	64,843,750	63,792,500	62,741,250	61,690,000	60,638,750	59,587,500	58,536,250	57,485,000
Depreciation	12		1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	1,051,250	12,615,000