EFTA01090679.pdf

TCC INTERNATIONAL LLC AND AFFILIATE COMBINED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED December 31, 2007 2006 Revenues: Member revenue 6,939,147 5,131,872 Operations 4,066,922 4,457,423 Total revenues 11,006,069 9,589,295 Cost of sales 1,408,589 1,376,484 Gross Profit 9,597,480 8,212,811 Cost of operations: Payroll 7,522,952 7,745,774 Employee benefits 544,209 513,375 Occupancy expense 1,931,281 2,234,556 Fitness supplies 19,952 18,207 Newspapers and periodicals 12,847 13,220 Spa supplies 43,158 19,990 Amortization of loan costs and intangibles 44,067 80,884 Charitable contributions 250 70,480 Cleaning 231,880 179,106 Computer maintenance and support 23,567 3,721 Depreciation 2,077,431 2,001,087 Insurance 262,992 146,871 License and permits 6,910 13,874 Marketing 793,182 747,824 Office expense 932,314 1,236,079 Professional fees (145,514) 1,391,241 Recruitment expense 22,694 34,568 Repairs and maintenance 212,399 236,709 Travel and entertainment 109,835 46,153 Utilities 344.730 516,046 Total cost of operations 14,991,136 17,249,765 Loss before other income (expenses) 5,393,656 (9,036,954) Other income (expenses): Interest income 6,172 1,781 Interest expense (3,688,225) (2,652,086) Total other income (expenses) (3,682,053) (2,650,305) Net loss (9,075,709) (11,687,259) Members' deficit -beginning of year (28,986,944) (15,269,185) Redemption of membership interests - (2,030,500.00) Members' deficit -end of year (38,062,653), (28,986,944), Management Prepared Financial Statements Company Confidential EFTA01090679