Investor Presentation
Introduction & overview
Financial results Strategy & outlook
Conclusions
Appendices
Reconciliation from Loss to Adjusted EBITDA & Run-Rate Adjusted EBITDA
For the three months
ended 30 Jun
For the six months
COPUREGYM
For the twelve
months ended
ended 30 Jun
31 December
£m
Loss for the period
Income tax
2022
2021
2022
2021
2019PF
(23.6)
(37.4)
(44.7)
(92.1)
(28.5)
2.2 (10.1)
0.8
(16.2)
(3.7)
Net finance cost
36.4
36.5
73.1
59.6
101.5
Depreciation & impairment of PPE
Amortisation & impairment of intangible assets
27.5
30.0
54.6
57.1
99.1
5.4
11.7
10.5
21.0
19.7
(Profit) loss on disposal of property, plant & equipment
(0.1)
1.1
(0.1)
0.9
0.1
Profit on lease modifications
(0.4)
(0.4)
(0.4)
Exceptional administrative expenses
2.6
3.1
11.6
Group Reported EBITDA¹
47.7
33.9
94.3
26.9
206.9
Other adjustments²
2.0
1.0
3.5
2.4
0.8
Share based payment charge³
0.1
0.1
0.2
0.2
0.3
Pre-Opening Costs4
Cash Rent Adjustment5
Adjusted EBITDA
Head office costs
Gym Site Adjusted EBITDA
0.9
1.5
2.0
1.9
3.6
(24.9)
(20.1)
(49.2)
(40.3)
(80.4)
25.9
16.4
50.9
(9.0)
131.1
15.8
16.1
32.07
22.6
39.5
41.8
32.5
82.9
13.7
170.7
LTM Adjusted EBITDA
Run-Rate Adjustment6
Run-Rate Adjusted EBITDA (LTM)
99.6
(1.3)
99.6
(1.3)
131.1
14.3
40.9
14.3
40.9
29.5
114.0
39.6
114.0
39.6
160.6
(1) Group Reported EBITDA is defined as earnings before net finance cost, taxation, depreciation, amortisation, profit/loss on sale of property, plant & equipment, impairment, profit/loss on lease modifications & exceptional items. (2) Other adjustments includes the net impact of various one-off items not included in "Exceptional items" but which
are not reflective of the underlying trade of the Group. (3) The share based payment charge relates to shares in the ultimate parent company, Pinnacle Topco Limited, issued to directors & certain employees. (4) Pre-opening costs represent the total of all gym site operating costs incurred prior to the opening of a new gym & primarily consist of
staff costs & marketing. (5) Under IFRS 16, most lease costs are excluded from Group Reported EBITDA. To produce a comparable & more relevant EBITDA figure, the contractual property rent payments due during the accounting period are deducted & any property rent-related expenses included in Group Reported EBITDA are added back.
Management believes that adjusting EBITDA to reflect cash rent is a better reflection of actual earnings. (6) The Run-Rate adjustment reflects the impact of those gyms which are less than three years old at the end of the reporting period. These adjustments replace the Adjusted EBITDA earned by these sites in the last twelve month period with
the projected Adjusted EBITDA for their third year of operation. Run-Rate Adjusted EBITDA therefore seeks to reflect the anticipated mature Adjusted EBITDA potential of those gyms which were trading at the end of the relevant period. Management forecasts EBITDA on a gym specific basis & updates forecasts quarterly based on current &
anticipated performance, taking into account seasonality & location-specific factors. (7) Head office costs reported in the Q1 2022 presentation for the three months ended 31 March 2022 of £18.2m have been adjusted to £16.2m due to a misallocation between gym & head office costs. Adjusted EBITDA is not impacted by this adjustment.
Investor Presentation 25 August 2022 27View entire presentation