Fitness pro: managing a growing business.

Tompkins, Lee, Jr. ; Kent, Russell ; McDonald, Michael 等

CASE DESCRIPTION

The primary subject matter of this case concerns entrepreneurship. Secondary issues examined include operations, finances, marketing, distribution, warehousing, policies, procedures, and information systems. The case has a difficulty level of four. The case is designed to be taught in one and one-halfr hours and is expected to require two hours of outside preparation by students.

CASE SYNOPSIS

The case examines how a physical therapist started an exercise equipment and personal fitness business: Fitness Pro. Eventually, the son takes over the business and moves it to the Hilton Head Island, South Carolina, and Savannah, Georgia, areas of the Southeast United States. As the business begins to grow, the founder's son looks for growth opportunities that fit his business model. He finds it in a similar business located in Tallahassee, Florida: Fitness Master. As these two businesses merge into one named Fitness Pro, they later start a new business in Jacksonville, Florida.

Within a few years, the business has three retail stores in Savannah, Tallahasee, and Jacksonville, and several outside sales staff who focus strictly on commercial accounts. With growth, however, comes growing pains. Major problems facing the two owners are what to do about rising shipping costs, warehousing, inventories, and financial control. The partners decide to bring in a more experienced partner to help them negotiate with their suppliers. Also, the new partner is trying to help the business develop accounting and financial information systems.

The case ends with the three partners attempting to develop a strategic plan for the future of the business.

INTRODUCTION

Fitness Pro, Inc., is a small company that specializes in selling and servicing high quality health and exercise equipment to residential and commercial customers. Fitness Pro operates out of three retail locations, Savannah, Georgia, Jacksonville, Florida, and Tallahassee, Florida, with the long-term goal of opening additional satellite stores.

COMPANY HISTORY

The original Fitness Pro was started in the 1970's in Lexington, Kentucky, by the father of one of the current owners, Paul Drake. The father, a physical therapist by occupation and training, saw a need for his clients and others to buy professional exercise equipment from knowledgeable people. Paul opened his first Fitness Pro store in 1990 in Charleston, West Virginia; however, Paul disliked living in Charleston, and so he closed the store and started looking for opportunities in other markets. He found the Savannah/Hilton Head area to be a good potential market and opened Savannah's Fitness Pro store in 1993, moving it to its current location in 1996.

By the late 1990's, Paul was looking to expand his business into other markets. He looked at a possible location in Tallahassee, Florida. At that time a fitness store, Fitness Master, was operating in Tallahassee. The owner of Fitness Master, Pat Sullivan, contacted Paul about his interest in joining up to open a store in North Florida. The two met and, from this meeting, a partnership formed, and a new store opened in Jacksonville, Florida. All stores took the name of Fitness Pro, with the corporate headquarters remaining in Savannah, Georgia.

In 2003, a third partner joined the organization, Lee Tompkins, Jr. Lee took over the financial and operational side of the business as chief financial officer. Lee joined as a partner to add additional capital, to bring business and financial management skills to the company, and to allow the other partners to focus on selling.

INDUSTRY TRENDS: SOCIO-CULTURAL FACTORS

The fitness industry will likely continue to benefit from health favorable socio-cultural trends as well as good demographic and economic conditions that are expected to maintain a steady level of growth in fitness equipment. This trend of healthier lifestyles creates a need for convenient methods of exercise, which, in turn, creates an increased demand for home fitness equipment as well as health and fitness clubs. Much of the health movement is fueled by factors such as heightened media attention; increasing healthcare costs; and widespread health problems like obesity. According to the U.S. Center for Disease Control and Prevention, the rate of obesity among U.S. adults between 1991 and 2002 increased by 74 percent. In addition, the Surgeon General's report on physical activity and health issued in 1996 stated:

 The fitness movement is being transformed by Americans aged 45 and
 older.... [and] The prevalence of physical inactivity was greater
 among persons with lower levels of education and income. (Center
 for Disease Control and Prevention, 2005).

INDUSTRY TRENDS: ECONOMIC FACTORS

According to Paul Drake, many new custom homes are now being designed with the idea of a fitness room in the floor plans. Fitness Pro benefitted from being in growing markets that have shown sustained growth in population, housing starts, disposable income, and economic success. The company's current primary markets include the MSAs of Jacksonville, Savannah, and Tallahassee. All three markets should continue to grow and will rely on key factors. These factors include population growth, disposable income, education levels, and a diversified industrial base.

Population in the Jacksonville MSA grew by approximately 7 percent from 2000 through 2003, and it increased by 21 percent from 1990-2000 (U.S. Census, 2005). By 2009, the Jacksonville Chamber of Commerce projects the total MSA population to equal 1,330,938. The Jacksonville Chamber of Commerce also estimates a median average household income of $46,271 and an average household income of $60,070 (Jacksonville Chamber of Commerce, 2005). The Tallahassee MSA population grew by approximately 1.3 percent from 2000 through 2003, and it experienced a 24.4 percent increase from 1990 to 2000 (U.S. Census, 2005). The Tallahassee Chamber of Commerce estimates that the MSA population will reach 248,039 by 2010. Median household income was $37,517 in 1999, and the number of households in 2000 was 96,521 (Tallahassee Chamber of Commerce, 2005).

The Savannah MSA population (304,325) grew by approximately 3.78 percent from 2000 to 2003, and it experienced a 13.57 percent increase from 1990 to 2000 (U.S. Census, 2005). Median household income was $35,608, and the number of households was 116,000.

 The number of jobs in the coastal [Georgia] MSA is growing twice as
 fast as that of the state and the nation as a whole, and employment
 is projected to rise by 3.1 percent in 2005, which is the largest
 percentage gain predicted for any of the state's metropolitan areas
 (Savannah Chamber of Commerce, 2005).

Other general economic conditions that could affect Fitness Pro's business include the expansion of the new housing market, volatility of interest rate fluctuations, inflation, and increased gas prices.

 As mortgage rates climb, there will be less new residential
 construction. The 2005 housing forecast calls for permits
 authorizing 9.7 percent fewer homes. The slide in multi-unit
 residential construction is much steeper: 36 percent fewer units
 will be authorized in 2005 (Savannah Chamber of Commerce, 2005).

Inflation and price changes pose a risk to the company's performance. A significant increase in inflation could decrease discretionary income among consumers and also commercial clients. Shipping costs are a major cost for Fitness Pro, and, thus, gas prices play an important role in the cost of receiving, distributing, and delivering products.

INDUSTRY TRENDS: LEGAL/POLITICAL

Many companies within the fitness industry are looking internationally to find cheaper alternative methods to manufacture their products.

The fitness industry has not experienced a wide range of legal problems to date, however, as with any business, it is cautious in what it does. A legal issue facing the fitness industry is any problem experienced while using the equipment. Consumers have sued manufacturers and retailers due to injuries occurring when using the equipment. Many times, these injuries have been due to the customers' misuse of the equipment or not being physically fit enough to use the equipment. Companies help to protect themselves against these lawsuits by putting warnings on equipment suggesting proper use and advising users to consult with their doctors before use. In the early stages of growth, the industry faced some problems due to patent infringements.

Currently, most products in the industry are easily duplicated and are no longer protected by patents.

INDUSTRY TRENDS: TECHNOLOGICAL FACTORS

The fitness equipment industry has grown over the years with many new products emerging in the market. Equipment types range from endurance and strength training machines to those products which aide in stretching. Slight differences exist in appearance or operation, but the equipment generally provides the same results.

The industry is saturated and, therefore, it is hard to keep new technology out of competitor hands. Occasionally there are advances in equipment operations or production processes, so the manufacturer can secure a patent to help protect the design. Without patent protection almost every aspect of the equipment would be fully replicated by the competition and reproduced; however, generally, new technology is easily duplicated.

The market is fiercely competitive. Cost or quality is how a company competes. There are similar products offered in the low cost, medium cost, and/or high cost areas. The major differences among these different brands are the durability, materials used in production, and accessories. Technological advances are geared toward new features added to current products. Equipment is not only expected to increase in sophistication; it is also expected to increase the level of interaction between the machine and the consumer. Many manufacturers focus their efforts on the addition of TV, radio, and Internet access to their equipment. New equipment is expected to be user friendly and aesthetically pleasing.

INDUSTRY/COMPETITIVE CONDITIONS

Fitness Pro is a distributor with retail and commercial clients. Smaller distributors like Fitness Pro rely on fitness equipment manufacturers to supply them with the products they sell. Fitness equipment manufacturers create exclusive agreements with distributors such as Fitness Pro; however, those agreements can change at any time. The fitness equipment industry has revenues of more than $4 billion. The exercise equipment industry segment can be broken into two distinct segments, the manufacturing segment and specialty retailers/distributors segment (PSN Retailing Today, 2005).

Within the manufacturing segment are two other segments, the mid to high-end manufacturer and the low-end manufacturer. Fitness Pro only distributes high-end equipment. The mid to high-end fitness equipment manufacturing segment is primarily controlled by a handful of producers. These producers sell their products through specialty distributors to fitness gyms, spas, resorts and residential customers. This has been a stable segment of the industry, and it appears growth will come from equipment sold for residential use. The major players of this segment are Precor, Cybex, True Fitness, and Life Fitness. See Table 4 for size comparison information on Precor, Cybex and Life Fitness.

The mid-to-high-end manufacturing industry as a whole is expected to continue to grow. True Fitness has recently had good years due to its expanded offerings. Even struggling names such as Cybex, are emerging from hard times. Analysts expected growth of this segment in 2003 to exceed 5 percent following a 10 percent growth in 2002 (DSN Retailing Today, 2003).

Specialty retailers and distributors, such as Fitness Pro, make up only 2.2 percent of industry sales. These firms tend to be local or regional with few able to reach national status. One of the leaders is Gym Source, which claims to be the largest supplier of mid- to high-end fitness equipment (www.gymsource.com). Competition in smaller markets tends to come from locally owned shops. In Savannah, for instance, the major competition for Fitness Pro is a new store, Just for Fitness. Barriers to entry are relatively low. Capital requirements to open a store in Savannah, for instance, are approximately $150,000. The most significant barrier in any given market is the number of competitors. Smaller markets like Savannah could probably not support more than three or four stores of this type. In addition, suppliers are plentiful but their exclusive arrangements with distributors can mean the supplier controls traffic generating brands. Overcoming these barriers is the burden of the distributors, and they know their stores' environments and service offerings are directly affected by the growth or decline of the fitness equipment industry.

Friendly and highly knowledgeable sales staff characterizes specialty fitness equipment stores. These success factors are recognized as the key to providing competitive advantage. In addition, the quality of the products sold sets these businesses apart from mass retailers. Finally, superior customer service including after the sale warranty service is a major competitive advantage.

THE STRATEGY OF FITNESS PRO

Existing Strategy

The strategy of Fitness Pro, includes implementing an operations plan that all three retail locations will follow. The goals are to establish common practices for merchandising, marketing and financial reporting that will clear the way for successful growth. Part of this strategy includes developing a computer system that links all the stores to a central location in order to simplify capturing inventory and sales information. Another component of the strategy is to build a partnership relationship with True Fitness which would lead to assistance in opening new stores, marketing and improving cash flow. Another long-term strategic goal is to explore new market opportunities throughout Georgia, North Carolina, South Carolina, and Florida. The final and ultimate long-term goal for Fitness Pro is to make itself an attractive target for purchase by a larger company.

Marketing

Fitness Pro targets high-end customers from both the commercial and residential sectors located within a reasonable driving distance from retail stores in Jacksonville and Tallahassee, Florida, and Savannah, Georgia. The company markets its products by focusing on quality, customer service, competitive pricing, direct selling and limited advertisement. Fitness Pro has historically operated on a marketing budget of approximately two to four percent of sales. The company has also launched a website that has technical and pricing information for commercial, residential and used products. It is also able to offer a lease option for commercial customers, and it is able to provide competitive consumer financing for the purchase of residential equipment.

Commercial clients include businesses such as corporations, hospitals, health clubs, hotels/resorts, apartment complexes, YMCAs and golf club/residential communities. Fitness Pro markets to commercial clients through the direct personal sales efforts of five commercial sales representatives. Much of this marketing is dependent on personal relationships and knowledge of upcoming business opportunities. Due to the selling techniques used in the commercial division, the market area for commercial products is much larger than the residential division. The five commercial territories are

1. Florida Panhandle (Tallahassee West to Pensacola);

2. North Florida (Jacksonville Metro West to Tallahassee);

3. S.E. Georgia & S.E. South Carolina;

4. West to Columbus, GA, North to Macon, Northeast to Charleston, S.C.; and

5. Central Florida -Daytona, Gainesville, Ocala, Orlando Southeast Alabama--Dothan, AL, Enterprise, AL.

In addition, each retail store displays commercial equipment on the floor and is staffed by sales associates capable of selling the equipment and in facilitating the design of fitness rooms.

The majority of Fitness Pro's retail customers are individuals who purchase products for their homes. These residential clients are typically educated, 40-55 years old, and have a household income of more than $100,000. According to Paul Drake, clients who are middle aged or older constitute a significant portion of this sector. Marketing and advertising strategies to residential clients vary from store to store. The Savannah and Tallahassee stores rely primarily on store location, signage and word of mouth, while the Jacksonville location also utilizes media such as radio, targeted mailings and booth participation in events such as the Home and Garden Show. In addition, the company sponsors a booth at the Heritage Golf Tournament on Hilton Head. All retail stores are strategically located in established retail areas having high traffic counts.

Fitness Pro is proactive in sizing up its competition. It regularly surveys its local and Non-local competition to ensure its pricing structure remains competitive. In the Savannah market, its primary competitor is Just For Fitness. Both rely heavily on their retail locations for a significant portion of market exposure. Because Just For Fitness is smaller than Fitness Pro, it is likely Just for Fitness operates under similar budgetary constraints in terms of advertising and marketing capabilities.

In the Jacksonville and Tallahassee markets, Busy Body Gyms To Go, with fifteen locations over Georgia and Florida, is Fitness Pro's most significant competition. Busy Body Gyms primarily markets itself through personal commercial selling, its website, a monthly newsletter/magazine featuring new product information, promotions, health news and through involvement with local Chambers of Commerce.

In all three markets, Fitness Pro indirectly competes with Sears, which has an estimated 80 percent market share on all treadmills sold. Sears is considered indirect competition because its product line and service level is considered to be of lesser quality than that offered by Fitness Pro. Sears has been able to capture a larger portion of overall market share largely due to lower price points, a wide retail presence, a large advertising budget, and a robust marketing program.

In addition to competition from firms with physical stores, Fitness Pro competes with online companies such as Trendmillbynet.com, which sells comparable products at lower prices over the Internet. These companies often market themselves as selling high quality equipment at much lower prices than stores such as Fitness Pro. Fitness Pro is unable to promote itself in a similar way because its business model includes a service component that is not well suited to selling products outside of its market areas. The online companies may have an advantage via price, but they are typically unable to provide a comparable level of service.

Financial

Fitness Pro experienced consistent sales growth from 2000 to 2003. Its sales grew from $3.4 million in 2000 to $4.7 million in 2003. The largest part of this increase was experienced in 2001. The percentage growth from 2000 to 2001 was 20 percent. During this period of growth, Fitness Pro's gross margin increased slightly from 37.2 percent to 38.3 percent. The growth in 2002 was 11.6 percent, but the gross margin increased to 39.2 percent. By 2003, the growth over 2002 was 2.2 percent and the gross margin fell back to 38.2 percent. The first four months of 2004 show a gross margin at 40.2 percent. Fitness Pro has been able to maintain its gross margin percentage around 40 percent for the past four years.

Increased sales of Fitness Pro have also brought increased operating expenses. The operating expenses grew from approximately $1.3 million in 2000 to more than $1.8 million in 2003. In 2002, sales grew by 11.6 percent, while expenses increased by 7.4 percent. Fitness Pro's net income varied up and down from 2000 to 2003. While the firm experienced an increase in sales, its increased expenses decreased net income, particularly in 2003. Fitness Pro's net income for the year ended December 31, 2002, was $98,429, while the following year the firm showed a net loss of $32,966. In 2003, sales increased by 2.2 percent, while overall operating expenses grew by 7.7 percent. A drop in gross margin of 1 percent and an increase of almost 48 percent in salaries-officers contributed to the net loss.

Fitness Pro's operating cash flow from 2000 to 2003 varied considerably, but was always positive, even during the years of overall net losses. The operating cash flow of Fitness Pro indicates they are able to cover their everyday operating expenses based on the cash they earn from business operations.

Operations

Fitness Pro's current strategic concerns in operations are logistics/distribution and inventory control. The equipment sold by Fitness Pro is shipped directly to its warehouses from product suppliers like True Fitness. All equipment comes with a product warranty. Any service or warranty related issues are coordinated by the Fitness Pro location where the product was purchased. Inventory is tracked by three separate systems, one for each warehouse location. Fitness Pro's warehouses are located as part of its retail locations in Savannah, Jacksonville, and Tallahassee.

Fitness Pro's shipments from its suppliers are done in bulk and shipped to only one of the three warehouse locations, rather than all three, for cost savings. Company trucks and delivery drivers then distribute equipment needs to the other locations. Because of the major expense this represents, the logistics involved in getting products to the retail locations is a significant cost issue for the company. Currently, the company is considering options for improving its warehousing and delivery. The goals are to decrease shipping costs, decrease inventories, and improve customer satisfaction.

One area Fitness Pro is looking into is to establish a better system of inventory control. A point of sale system would track the inventory from the point of sale and send information to the central warehouse for replenishment as needed. This information system could help track receipts, sales and transfers of inventory. This would help Fitness Pro to more effectively manage inventory and potentially increase inventory turnover. This system should also help with financial reporting problems that Fitness Pro has experienced in the past with inaccurate reporting.

Management Capabilities, Organizational Structure, and Organizational Culture

Fitness Pro is led by four key individuals who have been in the industry for several years and are very knowledgeable. Paul Drake is president and part-owner of the company. He took over after his father left the company. Paul gained all of his knowledge about the company and the industry from his father. Another key manager and part-owner is Patrick Sullivan. Patrick is vice president. The most recent partner is Lee Tompkins, Jr., who was brought in to help with the business. Lee's role with the company is chief financial officer. Lee also aids in any other management needs for the individual stores. David Egan is general manager and also leads all operational concerns. Finally, each store has its own manager, each of whom has either several years of management experience or has been a personal trainer in the past. This knowledge of personal fitness leads to exceptional knowledge about the industry and the products they are selling and competing against.

Fitness Pro operates each separate store with only a few staff, totaling about 19 employees working for all three stores. Each store hires new employees as needed, but these new hires must be cleared through one of the top managers beforehand. All three stores operate individually, and somewhat independently, from one another.

The culture at Fitness Pro is very casual yet knowledgeable about fitness and health. Individuals who work for the company have a very thorough knowledge about their products. They also have detailed knowledge about the competition's product. Each employee is also a certified fitness professional. This ensures that customers can have their questions answered, thus, making their shopping experiences more enjoyable. When customers enter one of the stores, they are not hassled or pushed to purchase anything. Rather, employees encourage participation on the customer's part. Customers are encouraged to workout for however long they wish on a piece of equipment to see if they like it. Should the customer not be satisfied with the equipment, the employees will assist in finding a better fit. Fitness Pro does whatever is required to make the customer comfortable and satisfied with the product.

Currently, Fitness Pro's organizational structure allows the flexibility to operate as needed. As more stores are added, and as distribution and marketing efforts are increased by the firm, the owners think that it will be essential for the structure to formalize. Stores will need to have closer communication and an understanding of each location's needs if Fitness Pro hopes to improve its logistics and distribution efforts. The owners have each operated as somewhat independent entrepreneurs; however, they wonder if more routine policies and procedures are needed to standardize the way they do things.

STRATEGIC POSITIONING

At their most recent executive meeting, the three owners (Paul Drake, Pat Sullivan, and Lee Tompkins) each had opinions and ideas about what the company needed to do to improve its competitive position. Paul thought that the company should have one warehouse to which all suppliers would ship in bulk, hence saving Fitness Pro much in transportation and shipping charges; however, the question was where should it be located--in the Savannah, Jacksonville, or Tallahassee area? How would product be shipped from that warehouse to the individual stores?

Pat wanted each store to operate independently from each other. He argued that what works in Tallahassee might not work in the Savannah market. He wanted Jacksonville to be able to do what it wanted to do without having to get approval from Paul or Lee. For example, recently, the Jacksonville store had spent much more on advertising (as a percentage of sales) than either Savannah or Tallahassee.

Lee was pushing his two new partners to implement the point of sale system and use the data it could provide to then make a more informed decision about warehouse location. Lee also wanted to persuade his two partners to focus more effort on commercial sales. Recently, it seemed that the commercial sales reps were generating high levels of sales, and it appeared that their markets were growing.

All in all, Fitness Pro seems to be doing well; however, like any growing small firm, it has challenges. How to grow in a profitable manner? How to control its costs and expenses without stifling initiative? How to market and promote itself in its three somewhat different markets? What to do, if anything, with consolidating its warehousing? How to establish some level of standard operating procedures and policies without losing the flexibility that helps the firm satisfy its customers? How to attract and retain highly motivated store-level staff and commercial sales reps? Those and other issues were all raised at this day-long meeting!

REFERENCES

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Florez, Gregory. Club Industry's Fitness Business Pro Dec 2004. Vol 20, Iss. 12; p.32.

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Industry Sector Analysis. New York: Apr. 24, 1999 p. l.

Industry Sector Analysis. New York: March 19, 1999 p. 1.

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Jacksonville Regional Chamber of Commerce Site, 2004, Jacksonville Regional Chamber of Commerce, March 05,2005 < www.myjaxchamber.com > & <www.expandinjax.com>.

Savannah Area of Chamber of Commerce, 2005 Forecast and 2004 Economic Trends, p. 6.

Surgeon General's report on Physical Activity and Health issued in 1996, U.S. Center for Disease Control and Prevention, March 06,2005 <www.cdc.gov/nccdphp/sgr/sgr.htm>.

Tallahassee Chamber of Commerce Site, Tallahassee Chamber of Commerce, March 07, 2005 <www.edatallahasseeleon.com>.

Troy, Mike. "Sporting goods see strongest growth in a decade." DSN Retailing Today February 7, 2005, p. 6.

United States Census, U.S. Census Bureau, March 6, 7 & 8, 2005 <www..census.gov> <quicfacts.census.gov>.

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Lee Tompkins, Jr., Fitness Pro

Russell Kent, Georgia Southern University

Michael McDonald, Georgia Southern University

Fitness Pro, Inc. Consolidated Balance Sheet

 2004
Assets Amount

Current Assets

Cash $ 451.99
Bank-First Chatham Bank $ 225.66
BB&T Payroll Acct $ 4,122.40
BB&T General Acct $ 22,564.67
Century South-P/R Account
Century South-Gen Acct
Amsouth (Tallahassee) $ 72,307.19
Suntrust (Jacksonville) $ 10,672.44
Ameribank Premium Investment
BB&T Prem Investment Acct $ 96,270.50
Perishing IMS Invest Acct
A/R Commercial
A/R Orange Park
A/R Savannah $ 53,083.83
A/R Tallahassee $ 43,822.72
A/R Jacksonville $ 20,700.00
A/R Officer
Fed Income Tax Receibavle (Redcell Inc)
Employee Advance $ 7,056.65
N/R Pattrick Sullivan
Inventory-Savannah $ 769,828.50
Inventory-Tallahassee
Inventory-Jacksonville
Inventory-Orange Park

Total Current Assets $ 1,101,106.55

Property and Equipment
Autos & Trucks $ 111,398.39
Equipment $ 34,584.37
Furniture & Fixtures $ 69,308.12
Leasehold Improvements $ 12,202.40
Accumulated Depreciation $ (184,236.02)

Total Property & Equipment $ 43,257.26

Other Assets
N/R Fit Holdings LLC $ 64,556.41
Deposits $ 9,404.80
Closing Cost $ 9,580.00
Goodwill $ 4,981.00
Accumulated Amortization $ (9,938.64)

Total Other Assets $ 78,583.57

Total Assets $ 1,222,947.38

Liabilities & Capital
Current Liabilities

Accounts Payable $ 623,960.97
Tax Deposit in Transit
SWH Payable $ 1,082.29
FUTA $ 208.47
SUTA $ 818.9
GA Sales Tax Payable $ 3,840.42
Florida Sales Tax Payable $ 11,648.30
S.C. Sales Tax Payable $ 4,134.65

Total Current Liabilities $ 645,694.00

Long Term Liabilities

N/P Ameribank
N/P BB&T $ 41,103.50
N/P FCB LOC $ 1,074.53
N/P AMEX Card
N/P Citizens Finance $ (498.82)
N/P Pat Sullivan $ 46,873.26
N/P Paul Drake $ (1,694.99)

 2003
Assets Amount

Current Assets

Cash $ 371.99
Bank-First Chatham Bank $ 51,960.00
BB&T Payroll Acct $ 5,132.63
BB&T General Acct $ 58,608.17
Century South-P/R Account
Century South-Gen Acct
Amsouth (Tallahassee) $ 2,239.62
Suntrust (Jacksonville) $ 104.15
Ameribank Premium Investment
BB&T Prem Investment Acct $ 40,584.69
Perishing IMS Invest Acct
A/R Commercial
A/R Orange Park
A/R Savannah $ 63,671.31
A/R Tallahassee $ 149,823.26
A/R Jacksonville $ 97,773.81
A/R Officer
Fed Income Tax Receibavle (Redcell Inc)
Employee Advance $ 820.05
N/R Pattrick Sullivan
Inventory-Savannah $ 138,233.67
Inventory-Tallahassee $ 53,138.73
Inventory-Jacksonville $ 174,123.65
Inventory-Orange Park

Total Current Assets $ 836,585.73

Property and Equipment
Autos & Trucks $ 103,296.99
Equipment $ 30,784.27
Furniture & Fixtures $ 64,726.51
Leasehold Improvements $ 9,102.40
Accumulated Depreciation $ (137,079.02)

Total Property & Equipment $ 70,831.15

Other Assets
N/R Fit Holdings LLC
Deposits $ 8,754.80
Closing Cost $ 9,580.00
Goodwill $ 4,981.00
Accumulated Amortization $ (6,803.64)

Total Other Assets $ 16,512.16

Total Assets $ 923,929.04

Liabilities & Capital
Current Liabilities

Accounts Payable $ 518,522.02
Tax Deposit in Transit $ 17,989.36
SWH Payable $ 2,476.03
FUTA
SUTA
GA Sales Tax Payable $ 10,424.84
Florida Sales Tax Payable $ 9,282.87
S.C. Sales Tax Payable

Total Current Liabilities $ 558,695.12

Long Term Liabilities

N/P Ameribank
N/P BB&T $ 61,881.22
N/P FCB LOC $ 52,981.00
N/P AMEX Card $ 20,785.58
N/P Citizens Finance
N/P Pat Sullivan $ 6,015.26
N/P Paul Drake $ 635.2

 2002
Assets Amount

Current Assets

Cash $ 271.99
Bank-First Chatham Bank
BB&T Payroll Acct $ (820.29)
BB&T General Acct $ 5,800.74
Century South-P/R Account
Century South-Gen Acct
Amsouth (Tallahassee) $ 23,467.97
Suntrust (Jacksonville) $ 14,371.11
Ameribank Premium Investment
BB&T Prem Investment Acct $ 7,347.42
Perishing IMS Invest Acct $ 50,000.00
A/R Commercial $ 134,586.55
A/R Orange Park $ 2,837.74
A/R Savannah $ 88,741.74
A/R Tallahassee $ 96,254.24
A/R Jacksonville $ 24,042.75
A/R Officer $ 12,900.53
Fed Income Tax Receibavle (Redcell Inc)
Employee Advance $ 2,198.10
N/R Pattrick Sullivan $ 21,688.00
Inventory-Savannah $ 81,965.89
Inventory-Tallahassee $ 53,279.46
Inventory-Jacksonville $ 63,000.51
Inventory-Orange Park $ 28,725.55

Total Current Assets $ 710,660.00

Property and Equipment
Autos & Trucks $ 67,236.99
Equipment $ 27,153.48
Furniture & Fixtures $ 61,439.70
Leasehold Improvements $ 9,102.40
Accumulated Depreciation $ (107,129.02)

Total Property & Equipment $ 57,803.55

Other Assets
N/R Fit Holdings LLC
Deposits $ 8,754.80
Closing Cost $ 9,580.00
Goodwill $ 4,981.00
Accumulated Amortization $ (6,803.64)

Total Other Assets $ 16,512.16

Total Assets $ 784,975.71

Liabilities & Capital
Current Liabilities

Accounts Payable $ 421,766.12
Tax Deposit in Transit
SWH Payable $ 1,168.61
FUTA
SUTA
GA Sales Tax Payable $ 4,638.38
Florida Sales Tax Payable $ 19,122.55
S.C. Sales Tax Payable

Total Current Liabilities $ 446,695.66

Long Term Liabilities

N/P Ameribank
N/P BB&T $ 81,366.40
N/P FCB LOC
N/P AMEX Card $ 4,487.38
N/P Citizens Finance
N/P Pat Sullivan $ 25,000.00
N/P Paul Drake $ 10,000.00

 2001
Assets Amount

Current Assets

Cash $ 300.00
Bank-First Chatham Bank
BB&T Payroll Acct $ 522.94
BB&T General Acct $ 80,782.08
Century South-P/R Account
Century South-Gen Acct
Amsouth (Tallahassee) $ 29,595.78
Suntrust (Jacksonville) $ 6,553.72
Ameribank Premium Investment
BB&T Prem Investment Acct $ 61,891.16
Perishing IMS Invest Acct
A/R Commercial
A/R Orange Park $ 11,674.45
A/R Savannah $ 74,715.48
A/R Tallahassee $ 44,386.03
A/R Jacksonville $ 102,132.60
A/R Officer $ 8,100.53
Fed Income Tax Receibavle (Redcell Inc)
Employee Advance $ 455.78
N/R Pattrick Sullivan $ 21,688.00
Inventory-Savannah $ 67,137.44
Inventory-Tallahassee $ 53,952.56
Inventory-Jacksonville $ 49,337.58
Inventory-Orange Park $ 25,746.29

Total Current Assets $ 638,972.42

Property and Equipment
Autos & Trucks $ 40,029.40
Equipment $ 21,062.68
Furniture & Fixtures $ 60,817.70
Leasehold Improvements $ 9,102.40
Accumulated Depreciation $ (86,040.22)

Total Property & Equipment $ 44,971.96

Other Assets
N/R Fit Holdings LLC
Deposits $ 8,754.80
Closing Cost $ 9,580.00
Goodwill $ 4,981.00
Accumulated Amortization $ (3,402.00)

Total Other Assets $ 19,913.80

Total Assets $ 703,858.18

Liabilities & Capital
Current Liabilities

Accounts Payable $ 421,878.58
Tax Deposit in Transit
SWH Payable $ 902.09
FUTA
SUTA
GA Sales Tax Payable $ 8,583.24
Florida Sales Tax Payable $ 18,503.91
S.C. Sales Tax Payable $ 2,664.01

Total Current Liabilities $ 452,531.83

Long Term Liabilities

N/P Ameribank
N/P BB&T $ 99,522.20
N/P FCB LOC
N/P AMEX Card
N/P Citizens Finance
N/P Pat Sullivan
N/P Paul Drake

 2000
Assets Amount

Current Assets

Cash
Bank-First Chatham Bank
BB&T Payroll Acct
BB&T General Acct
Century South-P/R Account $ (14,556.11)
Century South-Gen Acct $ 11,357.53
Amsouth (Tallahassee) $ 22,251.24
Suntrust (Jacksonville) $ 15,933.38
Ameribank Premium Investment $ 31,538.39
BB&T Prem Investment Acct
Perishing IMS Invest Acct
A/R Commercial
A/R Orange Park
A/R Savannah $ 99,047.05
A/R Tallahassee
A/R Jacksonville $ 49,385.58
A/R Officer
Fed Income Tax Receibavle (Redcell Inc) $ 7,469.00
Employee Advance $ (420.00)
N/R Pattrick Sullivan $ 21,688.00
Inventory-Savannah $ 54,629.18
Inventory-Tallahassee $ 133,770.74
Inventory-Jacksonville $ 118,957.59
Inventory-Orange Park

Total Current Assets $ 551,051.57

Property and Equipment

Autos & Trucks $ 33,575.00
Equipment $ 10,504.76
Furniture & Fixtures $ 55,925.06
Leasehold Improvements $ 6,803.00
Accumulated Depreciation $ (68,813.00)

Total Property & Equipment $ 37,994.82

Other Assets

N/R Fit Holdings LLC
Deposits $ 8,754.80
Closing Cost $ 9,580.00
Goodwill $ 4,981.00
Accumulated Amortization $ (1,701.00)

Total Other Assets $ 21,614.80

Total Assets $ 610,661.19

Liabilities & Capital
Current Liabilities

Accounts Payable $ 285,932.73
Tax Deposit in Transit
SWH Payable $ 689.06
FUTA
SUTA
GA Sales Tax Payable $ 7,562.15
Florida Sales Tax Payable $ 10,082.85
S.C. Sales Tax Payable $ 3,703.56

Total Current Liabilities $ 307,970.35

Long Term Liabilities $ 114,872.67

N/P Ameribank
N/P BB&T
N/P FCB LOC
N/P AMEX Card
N/P Citizens Finance
N/P Pat Sullivan
N/P Paul Drake

Fitness Pro, Inc. Consolidated Statement of Income

 2004

Revenue Amount Percent

Sales $4,356,126.73 100.0%

Total Revenue $4,356,126.73 100.0%

Cost of Goods Sold
Purchases $2,385,862.25 54.8%
Cost of
Discounts
Cost of Contract Labor $23,498.12 0.5%

Total Cost of Goods Sold $2,409,360.37 55.3%
 0.0%
Gross Margin $1,946,766.36 44.7%

Expenses

Advertising $127,603.47 2.9%
Amortization Expense $3,135.00 0.1%
Auto & Truck $59,289.42 1.4%
Auto Repairs $15,238.84 0.3%
Cleaning $3,277.90 0.1%
Casual Labor $7,345.60 0.2%
Consultants $3,025.20 0.1%
Dues & Subscriptions $2,237.01 0.1%
Depreciation $47,157.00 1.1%
Donations $338.00 0.0%
Travel $20,742.40 0.5%
Meals & Entertainment $9,258.33 0.2%
Moving Expenses $2,357.17 0.1%
Trade Show Expense
Equipment Rental $4,621.17 0.1%
Non-deductible Citations $282.04 0.0%
Freight $154,669.32 3.6%
Insurance-Officers Life $1,030.04 0.0%
Insurance $75,861.48 1.7%
Interest $18,716.60 0.4%
Bank Charges $7,895.26 0.2%
Credit Card Fees $25,445.07 0.6%
Inventory Fee 0.0%
Legal & Accounting $18,978.06 0.4%
Professional Fees
Office Supplies $7,204.74 0.2%
Postage $2,219.68 0.1%
Rent $165,627.57 3.8%
Repairs-Building $1,357.56 0.0%
Repairs-Equipment $30,242.09 0.7%
Salaries-Officers $197,298.92 4.5%
Salaries $663,461.47 15.2%
Employee Benefits 0.0%
Security $486.82 0.0%
Storage $805.95 0.0%
Supplies $2,134.74 0.0%
Taxes-Business $12,470.47 0.3%
Taxes-Payroll $70,001.38 1.6%
Telephone $36,051.10 0.8%
Temporary Labor
Temporary Labor
Uniforms $393.45 0.0%
Utilities $20,787.46 0.5%
Penalties $3,740.16 0.1%

Total Expenses $1,822,787.94 41.8%

Income from Operations $123,978.42 2.8%

Other Income

Vendors Compensation $1,933.49 0.0%
Interest Income $23.65 0.0%
Personal Training Fees

Total Other Income $1,957.14 0.0%

 2003

Revenue

Sales $4,720,213.02 100.0%

Total Revenue $4,720,213.02 100.0%

Cost of Goods Sold
Purchases $2,920,476.07 61.9%
Cost of $417.50 0.0%
Discounts ($2,073.45) 0.0%
Cost of Contract Labor

Total Cost of Goods Sold $2,918,820.12 61.8%

Gross Margin $1,801,392.90 38.2%

Expenses

Advertising $115,445.12 2.4%
Amortization Expense
Auto & Truck $46,122.28 1.0%
Auto Repairs $18,584.03 0.4%
Cleaning $4,212.79 0.1%
Casual Labor $15,711.62 0.3%
Consultants $378.75 0.0%
Dues & Subscriptions $2,608.08 0.1%
Depreciation $29,950.00 0.6%
Donations $1,793.93 0.0%
Travel $14,403.61 0.3%
Meals & Entertainment $10,868.06 0.2%
Moving Expenses
Trade Show Expense $1,080.00 0.0%
Equipment Rental $8,489.43 0.2%
Non-deductible Citations $110.00 0.0%
Freight $123,090.56 2.6%
Insurance-Officers Life $3,958.82 0.1%
Insurance $53,833.12 1.1%
Interest $8,882.79 0.2%
Bank Charges $6,978.28 0.1%
Credit Card Fees $29,961.96 0.6%
Inventory Fee
Legal & Accounting $19,206.15 0.4%
Professional Fees
Office Supplies $6,570.54 0.1%
Postage $1,910.09 0.0%
Rent $195,146.35 4.1%
Repairs-Building $1,463.03 0.0%
Repairs-Equipment $27,957.99 0.6%
Salaries-Officers $248,229.64 5.3%
Salaries $692,819.99 14.7%
Employee Benefits
Security $567.96 0.0%
Storage $467.80 0.0%
Supplies $7,424.40 0.2%
Taxes-Business $13,903.44 0.3%
Taxes-Payroll $68,753.34 1.5%
Telephone $34,502.25 0.7%
Temporary Labor
Temporary Labor
Uniforms $471.93 0.0%
Utilities $20,363.83 0.4%
Penalties $661.67 0.0%

Total Expenses $1,836,883.63 38.9%

Income from Operations ($35,490.73) -0.8%

Other Income

Vendors Compensation $1,929.07 0.0%
Interest Income $595.73 0.0%
Personal Training Fees

Total Other Income $2,524.80 0.1%

 2002

Revenue

Sales $4,597,235.23 100.0%

Total Revenue $4,597,235.23 100.0%

Cost of Goods Sold
Purchases $2,808,357.02 61.1%
Cost of
Discounts
Cost of Contract Labor

Total Cost of Goods Sold $2,808,357.02 61.1%

Gross Margin $1,788,878.21 38.9%

Expenses

Advertising $121,337.63 2.6%
Amortization Expense $3,401.64 0.1%
Auto & Truck $31,589.44 0.7%
Auto Repairs $16,242.33 0.4%
Cleaning $3,299.52 0.1%
Casual Labor $8,751.82 0.2%
Consultants $692.50 0.0%
Dues & Subscriptions $2,386.55 0.1%
Depreciation $21,088.80 0.5%
Donations $1,640.00 0.0%
Travel $18,543.67 0.4%
Meals & Entertainment $10,685.60 0.2%
Moving Expenses
Trade Show Expense $2,505.00 0.1%
Equipment Rental $12,065.22 0.3%
Non-deductible Citations $10.00 0.0%
Freight $170,693.62 3.7%
Insurance-Officers Life ($464.95) 0.0%
Insurance $42,791.40 0.9%
Interest $13,827.42 0.3%
Bank Charges $6,127.44 0.1%
Credit Card Fees $34,125.65 0.7%
Inventory Fee
Legal & Accounting $16,552.31 0.4%
Professional Fees
Office Supplies $9,207.11 0.2%
Postage $3,080.04 0.1%
Rent $191,664.74 4.2%
Repairs-Building $919.01 0.0%
Repairs-Equipment $4,826.11 0.1%
Salaries-Officers $166,280.00 3.6%
Salaries $679,249.07 14.8%
Employee Benefits
Security $1,026.22 0.0%
Storage $410.88 0.0%
Supplies $3,674.14 0.1%
Taxes-Business $9,890.21 0.2%
Taxes-Payroll $67,332.85 1.5%
Telephone $47,024.68 1.0%
Temporary Labor $659.12 0.0%
Temporary Labor $2,400.00 0.1%
Uniforms
Utilities $19,872.12 0.4%
Penalties $360.00 0.0%

Total Expenses $1,745,768.91 38.0%

Income from Operations $43,109.30 0.9%

Other Income

Vendors Compensation $2,131.79 0.0%
Interest Income $381.03 0.0%
Personal Training Fees

Total Other Income $2,512.82 0.1%

 2001

Revenue

Sales $4,138,009.67 100.0%

Total Revenue $4,138,009.67 100.0%

Cost of Goods Sold
Purchases $2,554,711.89 61.7%
Cost of
Discounts
Cost of Contract Labor

Total Cost of Goods Sold $2,554,711.89 61.7%

Gross Margin $1,583,297.78 38.3%

Expenses

Advertising $154,167.20 3.7%
Amortization Expense $1,701.00 0.0%
Auto & Truck $26,852.10 0.6%
Auto Repairs $12,070.81 0.3%
Cleaning $2,864.05 0.1%
Casual Labor $9,327.64 0.2%
Consultants $752.00 0.0%
Dues & Subscriptions $3,651.38 0.1%
Depreciation $17,227.22 0.4%
Donations $1,091.00 0.0%
Travel $7,647.37 0.2%
Meals & Entertainment $22,109.41 0.5%
Moving Expenses
Trade Show Expense $538.90 0.0%
Equipment Rental $8,913.83 0.2%
Non-deductible Citations $106.00 0.0%
Freight $177,762.05 4.3%
Insurance-Officers Life
Insurance $58,272.18 1.4%
Interest $12,710.41 0.3%
Bank Charges $1,885.54 0.0%
Credit Card Fees $25,786.64 0.6%
Inventory Fee
Legal & Accounting $20,090.60 0.5%
Professional Fees $1,625.00 0.0%
Office Supplies $6,776.67 0.2%
Postage $3,288.63 0.1%
Rent $174,762.08 4.2%
Repairs-Building $939.08 0.0%
Repairs-Equipment $3,157.76 0.1%
Salaries-Officers $178,754.14 4.3%
Salaries $566,708.09 13.7%
Employee Benefits
Security $1,353.23 0.0%
Storage $729.95 0.0%
Supplies $2,324.84 0.1%
Taxes-Business $3,471.60 0.1%
Taxes-Payroll $59,798.53 1.4%
Telephone $33,738.91 0.8%
Temporary Labor
Temporary Labor
Uniforms
Utilities $19,949.29 0.5%
Penalties

Total Expenses $1,622,905.13 39.2%
 0.0%
Income from Operations ($39,607.35) -1.0%

Other Income

Vendors Compensation $1,829.15 0.0%
Interest Income $1,764.18 0.0%
Personal Training Fees

Total Other Income $3,593.33 0.1%

 2000

Revenue

Sales $3,447,869.90

Total Revenue $3,447,869.90

Cost of Goods Sold
Purchases $2,165,861.95
Cost of
Discounts ($111.32)
Cost of Contract Labor

Total Cost of Goods Sold $2,165,750.63

Gross Margin $1,282,119.27

Expenses

Advertising $125,328.08
Amortization Expense $1,701.00
Auto & Truck $23,391.59
Auto Repairs $4,297.46
Cleaning $2,308.78
Casual Labor $4,550.55
Consultants
Dues & Subscriptions $1,599.61
Depreciation $17,059.00
Donations $2,380.00
Travel $8,498.55
Meals & Entertainment $6,283.68
Moving Expenses $5,141.54
Trade Show Expense $3,706.99
Equipment Rental $6,501.15
Non-deductible Citations $59.00
Freight $178,580.85
Insurance-Officers Life $1,874.12
Insurance $41,950.23
Interest $16,203.46
Bank Charges $2,367.85
Credit Card Fees $17,544.46
Inventory Fee $9.86
Legal & Accounting $13,186.22
Professional Fees
Office Supplies $8,079.09
Postage $2,518.94
Rent $141,552.43
Repairs-Building $436.29
Repairs-Equipment $10,880.97
Salaries-Officers $126,437.17
Salaries $425,658.81
Employee Benefits $1,240.00
Security $416.65
Storage $1,798.41
Supplies $4,538.69
Taxes-Business $4,849.84
Taxes-Payroll $49,446.16
Telephone $26,913.56
Temporary Labor
Temporary Labor
Uniforms
Utilities $17,994.53
Penalties $53.24

Total Expenses $1,307,338.81

Income from Operations ($25,219.54)

Other Income

Vendors Compensation $1,562.73
Interest Income $2,406.49
Personal Training Fees $6,000.00

Total Other Income $9,969.22

Table 1: Savannah Demographics
Savannah MSA Demographic Analysis (1)

Land Area: 1,362 square miles
Population Density: 215 persons per square mile
Median Household Income: $35,608.00
Unemployment Rate: 3.5%
# of Households: 116,000

 Population Trends *

Metro County 2003 Estimate 2000 Population 1990 Population
Chatham 235,270 232,048 216,867
Effingham 42,715 37,335 25,691
Bryan 26,340 23,417 15,436

Total 304,325 293,000 257,995

 Age *

Metro County 18 and Under 18-64 65 and over
Chatham 73,559 128,787 29,702
Effingham 14,076 20,457 3,003
Bryan 9,086 12,622 1,709

Total 96,721 161,865 34,414

% of Total, 33.01 55.24 11.75

 Education (25 years and Older) *

 Bachelor
Metro High School Degree
County Graduate or Higher

Chatham 186,102 58,012
Effingham 29,615 5,105
Bryan 18,499 4,519

Total 234,217 67,636

% of Total 79.94 23.08

 Population Trends *

Metro County 2003 Estimate % Change 90-00 % Change 00-03
Chatham 235,270 7.00 1.39
Effingham 42,715 46.10 13.80
Bryan 26,340 51.70 12.48

Total 304,325 13.57 3.87

 Age *

Metro County 18 and Under Total
Chatham 73,559 232,048
Effingham 14,076 37,535
Bryan 9,086 23,417

Total 96,721 293,000

% of Total, 33.01

 Education (25 years and Older) *

Metro High School Total
County Graduate People

Chatham 186,102 232,048
Effingham 29,615 37,535
Bryan 18,499 23,417

Total 234,217 293,000

% of Total 79.94

(1) Source: U.S. Census and Savannah Chamber of Commerce

* Source: U.S. Census (2000)

Table 2: Jacksonville Demographics
Jacksonville MSA Demographic Analysis (1)

Land Area: 2,634 Square Miles
Population Density: 426 persons per square mile
Median Household Income: $46,271.00
# of Households: 432,627

 Population Trends *

Metro County 2003 Estimate 2000 Population 1990 Population %
Baker 23,424 22,259 18,488
Clay 157,502 140,814 105,955
Duval 817,480 778,879 673,188
St. Johns 142,869 123,135 83,822
Nassau 61,625 57,662 43,950

Total 1,202,900 1,122,750 925,404

 Age *

Metro County 18 and Under 18-64 65 and over
Baker 7,679 12,532 2,048
Clay 48,722 78,293 13,800
Duval 260,924 436,172 87,782
St. Johns 35,093 48,463 19,578
Nassau 17,991 32,407 7,266

Total 370,410 627,866 124,474

% of Total 32.99 55.92 11.09

 Education (25 years and Older) *

Metro County High School Bachelor
 Graduate Degree or Higher
Baker 16,004 1,825
Clay 121,663 28,304
Duval 644,133 170,575
St. Johns 107,374 40,758
Nassau 46,707 10,898

Total 935,881 252,359

% of Total 83.36 22.48

 Population Trends *

Metro County 2003 Estimate Change 90-00 % Change 00-03
Baker 23,424 20.4 5.23
Clay 157,502 32.9 11.85
Duval 817,480 15.7 4.96
St. Johns 142,869 46.9 16.03
Nassau 61,625 31.2 6.87

Total 1,202,900 21.33 7.14

Metro County 18 and Under Total
Baker 7,679 22,259
Clay 48,722 140,814
Duval 260,924 778,879
St. Johns 35,093 123,135
Nassau 17,991 57,663

Total 370,410 1,122,750

% of Total 32.99

 Education (25 years and Older) *

Metro County High School Total
 Graduate People
Baker 16,004 22,259
Clay 121,663 140,814
Duval 644,133 778,879
St. Johns 107,374 123,135
Nassau 46,707 57,663

Total 935,881 1,122,750

% of Total 83.36

(1) Source: U.S. Census and Jacksonville Chamber of Commerce

* Source: U.S. Census (2000)

Table 3: Tallahassee Demographics
Tallahassee MSA Demographic Analysis (1)

Land Area: 2,634 Square Miles
Population Density: 426 persons per square mile
Median Household Income: $46,271.00
Unemployment Rate: 3.2%
# of Households: 96,521

 Population Trends *

Metro County 2003 Estimate 2000 Population 1990 Population
Leon 242,577 239,452 192,486

Total 242,577 239,452 192,486

 Age *

Metro County 18 and Under 18-64 65 and over
Leon 64,652 154,925 19,875

Total 64,652 154,925 19,875

% of Total 27 64.7 8.3

 Education (25 years and Older) *

Metro County High School Bachelor Degree
 Graduate or Higher
Leon 21,352 99,851

Total 21,352 99,851

% of Total 89.1 41.7

 Population Trends *

Metro County 2003 Estimate % Change 90-00 % Change 00-03
Leon 242,577 24.4 1.31

Total 242,577 24.4 1.31

Metro County 18 and Under Total
Leon 64,652 239,452

Total 64,652 239,452

% of Total 27

 Education (25 years and Older) *

Metro County High School Total
 Graduate People
Leon 21,352 239,452

Total 21,352 239,452

% of Total 89.1

(1) Source: U.S. Census and Tallahassee Chamber of Commerce

* Source: U.S. Census (2000)

Table 4: Fitness Industry Company Comparison (1)

Company Name Sales (millions) Employees

Precor 222.3 (2003) 471
Life Fitness 156.1 (2003) 1,500
Cybex 90.2 486

(1) Source: Hoover's online (March 8, 2005)