Title
Exhibit 1
Exhibit 1: US Commercial Product Line Sales
Product Line U.S. 2011 Sales GM Percent U.S. 2011 Gross Margin U.S. 2102 Forecasted Sales U.S. 1st Half 2012 Forecasted Sales U.S.1st Half 2012 Actual Sales New England District 2011 Sales
Product
Cardio $ 84,870,000 41% $ 34,796,700 $ 96,751,800 $ 43,538,310 $ 43,449,600 $ 3,009,051
Strength $ 46,125,000 31% $ 14,298,750 $ 50,737,500 $ 24,354,000 $ 22,450,000 $ 2,581,354
Technology $ 35,055,000 38% $ 13,320,900 $ 40,313,250 $ 20,156,625 $ 21,984,300 $ 2,211,506
Small Exercise Equipment $ 18,450,000 32% $ 5,904,000 $ 19,557,000 $ 7,822,800 $ 9,905,269 $ 1,681,389
Total $ 184,500,000 37% $ 68,320,350 $ 207,359,550 $ 95,871,735 $ 97,789,169 $ 9,483,300
Exhibit 3
Exhibit 3: 2011 Commercial Sales by Individual – New England District
Product Ellis Barrow Hammond Foster Gibbons Concetta Avery Total
Cardio $ 716,937 $ 409,679 $ 531,065 $ 469,423 $ 398,299 $ 324,329 $ 159,319 $ 3,009,051
Strength $ 418,214 $ 580,378 $ 379,332 $ 412,524 $ 411,575 $ 213,374 $ 165,958 $ 2,581,354
Technology $ 617,363 $ 204,839 $ 348,985 $ 398,299 $ 318,639 $ 170,699 $ 152,681 $ 2,211,506
Small Exercise Equipment $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 $ 185,873 $ 1,681,389
Total $ 1,991,493 $ 1,706,994 $ 1,517,328 $ 1,422,495 $ 1,327,662 $ 853,497 $ 663,831 $ 9,483,300
Exhibit 4
Exhibit 4: Individual Sales Performance – New England District, 2011
Salesperson 2011 Sales % of District 2012 District H1 Sales % of District 2011 Active Accounts* 2011 Calls per year
Ellis $ 1,991,493 21% $ 896,172 20% 215 830
Barrow $ 1,706,994 18% $ 819,357 18% 275 1,370
Hammond $ 1,517,328 16% $ 728,317 16% 230 1,400
Foster $ 1,422,495 15% $ 568,998 13% 230 902
Gibbons $ 1,327,662 14% $ 597,448 13% 140 955
Concetta $ 853,497 9% $ 460,888 10% 210 820
Avery $ 663,831 7% $ 385,022 9% 304 1,158
TOTAL $ 9,483,300 $ 4,456,203 1,604 7,435
* Active accounts placed orders within the past year
Exhibit 5
Exhibit 5 – Individual Compensation and Expenses, New England District, 2011
Salesperson Salary Commissions Total Compensation Expenses Total Compensation and Expenses
Ellis $ 93,753 $ 76,707 $ 170,460 $ 14,800 $ 185,260
Barrow $ 57,630 $ 55,370 $ 113,000 $ 23,900 $ 168,586
Hammond $ 54,808 $ 50,592 $ 105,400 $ 17,918 $ 135,290
Foster $ 48,807 $ 46,893 $ 95,700 $ 27,753 $ 123,453
Gibbons $ 48,600 $ 32,400 $ 81,000 $ 10,500 $ 91,500
Concetta $ 32,960 $ 31,040 $ 64,000 $ 31,700 $ 95,700
Avery $ 30,274 $ 27,946 $ 58,220 $ 29,400 $ 87,620
Total $ 366,832 $ 320,948 $ 687,780 $ 155,971 $ 843,751
Exhibit 6
Exhibit 6: Description of Assigned Territories – New England District
Salesperson State Area Covered # of Potential Accts Commercial Buying Power Index Estimated Regional Population (000) Land Area
Ellis MA Boston suburbs: Northern/Western/Southwestern 421 1.27 3,720 1,700
Barrow CT Entire state 515 1.80 2,995 5,543
Hammond MA City of Boston & South Shore 250 0.8 4,703 200
Foster NH Entire state 475 0.97 1,320 9,350
Gibbons MA/RI Eastern MA/Rhode Island 450 0.63 1,662 2,817
Concetta MA/VT Western Part MA, Entire State of VT 600 1.08 1,217 12,212
Avery ME Entire state 560 0.94 599 35,385
Total 3,271 7.49 16,216 67,207
Average per sales person 467 1.07 2,317 9,601
Sales Growth US, Reg, District
StepSmart U.S. Commercial Sales History
US Region District
2009 $ 149,628,483 $ 58,886,424 $ 8,369,119
2010 $ 164,292,075 $ 66,188,341 $ 8,954,958
2011 $ 184,500,000 $ 73,800,000 $ 9,483,300
Buying Power Index
Territory Buying Power Actual % of 2011 Sales
Ellis Boston suburbs 1.27 1.08%
Barrow CT 1.8 1.08%
Hammond City of Boston 0.8 0.82%
Foster NH 0.97 0.77%
Gibbons Eastern MA and RI 0.63 0.72%
Concetta VT and Western MA 1.08 0.46%
Avery ME 0.94 0.36%
TOTAL 7.49 5.29%
TN – 3
TN – 3: INPUT PERFORMANCE MEASURES
Number of Calls 2011 # Potential Accounts Calls Per # of Potential Accounts
Ellis 830 421 1.97
Barrow 1,370 515 2.66
Hammond 1,400 250 5.60
Foster 902 475 1.90
Gibbons 955 450 2.12
Concetta 820 600 1.37
Avery 1,158 560 2.07
Total 7,435 3271 2.27
Average 1,062 467 2.53
TN-4
TN-4: Output Performance Measures
Total Sales Gross Margin Gross Margin% Active Accouts
Ellis $1,991,493 $734,662 36.9% 215
Barrow $1,706,994 $589,596 34.5% 275
Hammond $1,517,328 $550,487 36.3% 230
Foser $1,422,495 $517,219 36.4% 230
Gibbons $1,327,662 $475,701 35.8% 140
Concetta $853,497 $310,417 36.4% 210
Avery $663,831 $234,266 35.3% 304
Total $9,483,300 $3,412,347 36.0% 1604
Average $1,354,757 $487,478 36.0% 229
TN-5
TN-5: Output Adjusted for Expenses
Total Expense Total Sales Expense as % of Sales Gross Margin Expenses Net Margin Calls $/Sales Call
Ellis $185,260 $1,991,493 9.30% $734,662 $185,260 $549,402 830 $2,399
Barrow $136,900 $1,706,994 8.02% $589,596 $136,900 $452,696 1370 $1,246
Hammond $123,318 $1,517,328 8.13% $550,487 $123,318 $427,169 1400 $1,084
Foster $123,453 $1,422,495 8.68% $517,219 $123,453 $393,766 902 $1,577
Gibbons $91,500 $1,327,662 6.89% $475,701 $91,500 $384,201 955 $1,390
Concetta $95,700 $853,497 11.21% $310,417 $95,700 $214,717 820 $1,041
Avery $87,620 $663,831 13.20% $234,266 $87,620 $146,646 1158 $573
Total $843,751 $9,483,300 8.90% $3,412,347 $843,751 $2,568,596 7435 $1,275
Average $120,536 $1,354,757 8.90% $487,478 $120,536 $366,942 1062 $1,276
TN-6
TN-6: Output Adjusted for Territory
Actual Sales Territory Revenue Goal (using BPI as basis for calculation) % of BPI Territory Revenue Goal Achieved % Active Accounts in Territory Actual Sales $ per Number of Potential Accounts Actual Sales $ per Number of Active Accounts
Ellis $ 1,991,493 $ 2,343,150 85% 51% $ 4,730 $ 9,263
Barrow $ 1,706,994 $ 3,321,000 51% 53% $ 3,315 $ 6,207
Hammond $ 1,517,328 $ 1,476,000 103% 92% $ 6,069 $ 6,597
Foster $ 1,422,495 $ 1,789,650 79% 48% $ 2,995 $ 6,185
Gibbons $ 1,327,662 $ 1,162,350 114% 31% $ 2,950 $ 9,483
Concetta $ 853,497 $ 1,992,600 43% 35% $ 1,422 $ 4,064
Avery $ 663,831 $ 1,734,300 38% 54% $ 1,185 $ 2,184
Total $ 9,483,300 $ 13,819,050 69%
Average $ 1,354,757 $ 1,974,150 73% 52% $ 3,238 $ 6,283
TN-7
TN-7: Territory/Account Description
Territory Revenue Goal (using BPI as basis for calculation) BPI Revenue Goal Per Potential Account Number of Potential Accounts per 10 Square Miles BPI Revenue Goal Per Square Mile
Ellis $ 2,343,150 $ 5,566 2.48 $ 1,378
Barrow $ 3,321,000 $ 6,449 0.93 $ 599
Hammond $ 1,476,000 $ 5,904 12.50 $ 7,380
Foster $ 1,789,650 $ 3,768 0.51 $ 191
Gibbons $ 1,162,350 $ 2,583 1.60 $ 413
Concetta $ 1,992,600 $ 3,321 0.49 $ 163
Avery $ 1,734,300 $ 3,097 0.16 $ 49
Average $ 1,974,150 $ 4,384 2.67 $ 1,453
TN-8
Calls/Potential Account Actual Sales/Potential Accounts
Ellis 1.97 $ 4,730.39
Barrow 2.66 $ 3,314.55
Hammond 5.60 $ 6,069.31
Foster 1.90 $ 2,994.73
Gibbons 2.12 $ 2,950.36
Concetta 1.37 $ 1,422.50
Avery 2.07 $ 1,185.41
Shows more calls –> higher sales/account
Actual Sales/Potential Accounts 1.9714964370546317 2.6601941747572817 5.6 1.8989473684210527 2.1222222222222222 1.3666666666666667 2.0678571428571431 4730.3871733966744 3314.5514563106794 6069.3119999999999 2994.7263157894736 2950.3600000000006 1422.4949999999999 1185.4125000000001
TN-9
TN-9:Deployment Graph
Sales Potential % Penetration
Ellis $ 2,343,150.00 51%
Barrow $ 3,321,000.00 53%
Hammond $ 1,476,000.00 92%
Foster $ 1,789,650.00 48%
Gibbons $ 1,162,350.00 31%
Concetta $ 1,992,600.00 35%
Avery $ 1,734,300.00 54%
Penetration vs. Potential
% Penetration 2343150 3321000.0000000005 1476000 1789650 1162350 1992600 1734299.9999999998 0.5106888361045131 0.53398058252427183 0.92 0.48421052631578948 0.31111111111111112 0.35 0.54285714285714282
TN-13
TN-13: Compensation Analysis
Salary Commission Salary/.Total Compensation Calls Made Compensation/call Gross Margin Compensation/Gross Margin
Ellis $93,753 $76,707 55% 830 $205.37 $734,662 23.2%
Barrow $57,630 $55,370 51% 1370 $82.48 $589,596 19.2%
Hammond $54,808 $50,592 52% 1400 $75.29 $550,487 19.1%
Foster $48,807 $46,893 51% 902 $106.10 $517,219 18.5%
Gibbons $48,600 $32,400 60% 955 $84.82 $475,701 17.0%
Concetta $32,960 $31,040 52% 820 $78.05 $310,417 20.6%
Avery $30,274 $27,946 52% 1158 $50.28 $234,266 24.9%
Total $366,832 $320,948 53% 7435 $92.51 $3,412,347 20.2%
Average $52,405 $45,850 53% 1062 $92.51 $487,478 20.2%
Blank
Ellis 85%
Barrow 51%
Hammond 103%
Foster 79%
Gibbons 114%
Concetta 43%
Avery 38%
73%
