Investor Presentation
Non-GAAP reconciliation: 1H '19 location gross profit (loss) from membership and
service revenue and Location contribution margin for markets at maturity
($ in millions)
New York
London
San Francisco Los Angeles
Boston
Chicago
Washington
D.C.
Other(2)
Total
Consolidated -
All locations
Location gross profit (loss) from membership and service revenue calculated
in accordance with GAAP:
Membership and service revenue
$ 135
$ 67
$27
$32
$9
$19
$25
$1,037
$1,349
Cost of membership and service revenue:
Location operating expenses (exclusive of depreciation and amortization
shown separately below)
($106)
($51)
($18)
($23)
($6)
($12)
($23)
($995)
(1,233)
Depreciation and amortization - relating to location operating expenses
Total cost of membership and service revenue
(21)
(6)
(5)
(5)
(2)
(4)
(3)
(183)
(230)
($127)
($57)
($23)
($29)
($8)
($16)
($26)
($1,177)
(1,463)
Location gross profit (loss) from membership and service revenue
$7
$10
$4
$3
$1
$3
($2)
($140)
($114)
Location gross profit (loss) margin percentage
5%
15%
15%
9%
8%
16%
(7%)
(8%)
Reconciliation of GAAP location gross profit (loss) from membership and
service revenue to non-GAAP location contribution margin:
Location gross profit (loss) from membership and service revenue
$7
$10
$4
$3
$1
$3
($2)
($140)
($114)
Add:
Depreciation and amortization - relating to location operating expenses
Stock-based compensation expense (as included in location operating
expenses) (1)
21
18
5
I
I
5 1
2
4
3
183
230
1
$26
26
Location contribution margin
$29
$16
$9
$8
$2
$7
$2
$69
142
Impact of non-cash GAAP straight-line lease cost (as included in location
operating expenses) on location contribution margin
5
0
1
1
(0)
4
186
198
Location contribution margin percentage
21%
24%
34%
26%
27%
38%
7%
10%
Non-cash GAAP straight-line lease cost as a % of membership and service
4%
0%
3%
3%
(1%)
1%
17%
15%
revenue
(1)
(2)
Represents the non-cash expense of our equity compensation arrangements for employees whose payroll is included in location operating expense. Stock-based compensation expense is not allocated at the location level.
The "Other" cohort relates to revenue, location operating expenses, and depreciation relating to non-mature locations within these select markets, revenue, location operating expenses, and depreciation relating to locations outside of these select markets, membership and service
revenue related to management fees earned for providing services to unconsolidated locations in India and revenue, location operating expenses, and depreciation relating to locations that also serve as headquarters locations that are not included in the Company's cohort analysis, as
performance of these locations is not representative of our open locations
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