OUR COMPANY NEWSLETTER FALL 2012 IN THIS ISSUE Main Street Waltham MA Comstock Avenue Syracuse NY 13210

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1 Volume 1 Issue 1 NEWSLETTER FALL OUR COMPANY CrossFit Asphalt started with one girl and a dream. In April 2010, our CEO Katelyn Block decided to open up a Cross it gym CrossFit Asphalt in her neighborhood because she loved this new form of excising called Crossfit and the physical challenge that comes with it. Katelyn wanted to bring an active lifestyle to elite and novice athletes in a warm family environment. CrossFit Asphalt strived and is devoted to the principles of perseverance, loyalty, family, community, dedication, generosity and respect. Katelyn saw how successful CrossFit Asphalt was in her hometown Waltham, Massachusetts that she expanded to a new location in Syracuse, NY. Since expanding to Syracuse, CrossFit Asphalt has friendly competition with our neighbors CrossFit 315. CrossFit 315 and CrossFit Asphalt has a partnership with one another and hold annual competitions where members from each gym compete in Crossfit games to raise money for the gyms and 15 percent of its revenues donating to schools in the Syracuse community. IN THIS ISSUE 2) Message from the CEO 3) Financials 4) Future Goals 5) Lotions 6) Trainer 7) Advertising At Crossfit Asphalt, we love competition and to win. As a result, we trained and guided different athletes to compete in the annual Reebox CrossFit Games competition where we won first place in different events. We differ from CrossFit 315 because all our elite trainers are competitors and understand the unique needs of every athlete. We make sure each individual seeks the proper care and support they need to meet their personal needs and goals. In addition, the intensity of CrossFit as a sport and exercise can push people beyond their means so we are the only gym that supports our clients physical and mental needs. CrossFit Asphalt is a family and second home to its trainers and members. We support one another and make sure that every time a member comes to the gym, they are successful and one step closer to their goals. Our competitors only help their clients with workouts, whereas we know that being healthy means working out and having a healthy diet. Our clients are healthy all the way around. CrossFit Asphalt is devoted to providing the best services to our clients. We have a variety of different quality equipment from Rouge fitness which is the leading provider of American made strength equipment such as 100-foot pullup rings, rowers, bars, kettle bells, medicine balls, and stones. Our seven coaches are all Level 1 and Level 2 certified and always willing to help and challenge our athletes. In addition, we have personal trainers who work with members and give them the extra time and attention they request. Our personal trainers will not stop until their clients are fully guarantee with their results and met their goals. Because we like to compete, we also have 15 elite trainers, being trained, and training our members, preparing them through different workouts so they are qualified to compete in different competitions. Our members work hard every day so we provide chiropractic and athletic massages to relieve some pain and to make sure they don t pull any muscles or cause any physical harm to their bodies. Most importantly we want our athletes to be safe. CrossFit Asphalt provides our athletics with healthy snacks and nutritional/health counseling because we want them to treat their mind and body right. We want them to help their body and not abuse it. CrossFit, as a sport, is expanding everyday so why not exercise at the best gym around, CrossFit Asphalt! 5840 Main Street Waltham MA Comstock Avenue Syracuse NY 13210

2 2 MESSAGE FROM OUR CEO CrossFit Asphalt, a premiere CrossFit training facility, aims daily to make athletes out of the ordinary;; the schoolteacher, the corporate executive, the soccer moms and the high school athletes. Founded in April 2010, we built the CrossFit Asphalt from the ground up, bringing in friends, family, and coworkers to try this incredible sport that had started to take over cities and towns all over the world. From day one, our clientele has grown exponentially, spreading in almost unsustainable proportions. On our opening day, we signed over 50 initial members, growing to over 500 members today. It is our firm belief that the life-changing aspect of CrossFit has grown the sport in ways unforeseeable before. Our aim is to continue to change lives daily, whether it be small accomplishments or huge ones. Since day one, CrossFit Asphalt has continued to bring in growing revenue, losing no expected growth or held stocks. In the last year, we have moved to a location over six times the size of our original location in downtown Waltham, Massachusetts, and plan to add a third location within the next year. We currently offer chiropractic massages, and nutritional counseling services, and plan to expand our locations to house boutique stores, selling Lululemon and Reebok, exclusively. Additionally, we hope to add a daycare room and day spa for the athletes, including spa treatment services including (but not limited to): saunas, steamrooms, temperature- and pressure-controlled ice baths, and whirlpools. Our team here at CrossFit Asphalt plans on continuing to grow our client base, revenue, and influence as an elite training facility in the area and across the nation. We hope to continue to attract the attention of CrossFit HQ, as well as premiere brands in the Cross- Fit community, including Rogue Fitness, Again Faster Equipment, ReDefine:Fit, and Reebok. We plan on hosting more events and competitions at CrossFit Asphalt, as well as sending increasingly elite teams to the CrossFit Games in Carson, California. Soon, CrossFit Asphalt hopes to become part of the Steve s Club community and change the lives of young people in the community. Double-click to edit. In health and happiness, Katelyn Block, CEO

3 3 FINANCIALS Since the beginning of our company, we have expanded to the Syracuse, New York area. The journey has been very exciting, and from a financial standpoint the company is experiencing a tremendous growth, but the sky is our limit! Our membership is growing exponentially (as can be seen from the graph). Membership is critical to our company as it is our highest income generator. Additionally, we are proud to report that we do not have to pay franchise fees, and as of the end of our second fiscal year (April 2012), our company is privately owned. This is good news as we are no longer bound by franchise agreements, and we can basically come up with our own ideas, and implement them. For example, we are in the process of launching a Reebok + Lululemon store in- house. A breakdown of our most recent financials will show that our sources of funds are: Memberships, Personal Training, Nutrition, Corporate Groups (we have agreements with some local companies, whereby their employees train with us), CrossFit Kids Camps, Special Events, Specialty Certification, and Subsidies and Grants (due to our veteran programs we were able to secure some from the federal government). The breakdown of our budget shows that we have spent our money on: employee salaries, mortgage/ lease, utilities, maintenance, equipment, and miscellaneous expenses.

4 4 FUTURE GOALS CrossFit Asphalt plans to continue to grow our team of trainers, athletes, and additionally, expand our facilities across the country. Over the coming years, Asphalt will continue to build a stable relationship with Reebok, eventually opening up a streamlined Reebok store in each of our facilities. This will provide the opportunity to purchase apparel and gear on a daily basis, increasing ease of the customer experience, as well as providing increased business for Asphalt. We believe CrossFit Asphalt has the potential to one day be nationwide! We already are the best facility in the North East area, why not show the rest of America what they re missing out on? -Alexandra, Trainer, 29 Currently housed in two facilities, we have plans of opening up a third facility;; this facility will house the chiropractic and massage area, as well as an additional daycare room (assisting athletes and clients with young children), a juice bar behind the front desk, and a spa facility area in the back, consisting of a steam room, sauna, and temperature-controlled ice baths and hot whirlpools. Many of our athletes are serious competitors that come into the box anywhere from five to fourteen times per week. The juice bar will provide fresh fruit and vegetable juices, as well as smoothies, making pre- and post-workout nourishment clean and simple for any and all athletes. The spa facilities will aid in post-workout recovery for competitors after hard workouts and after competitions. For the casual athlete, the spa will be more of a luxury, benefits not provided at any other CrossFit affiliated facility. With the growth of each branch, and spread to other locations around the country, the founding Asphalt team will continue to select the top trainers from around the country to train athletes at our facilities. Asphalt will continue to emphasize itself and its brand as an elite training facility;; outfitted with both the best trainers, and the best services. With the continued growth of CrossFit, it becomes unnecessary to consider traditional modes of marketing;; instead, Asphalt will continue to revitalize

5 5 COME VISIT OUR TWO LOCATIONS 5840 Main Street Waltham MA (781) Comstock Avenue Syracuse NY (315)

6 6 A DAY IN THE LIFE OF A TRAINER Everyone is welcoming, everyone is cheering you on, and they don t let you quit, even if you want to quit. The trainers here do a fantastic job at being both motivational and knowledgeable about what they have us doing. - Roxanne, Age 50 CrossFit Asphalt trainers are an essential part of the CrossFit experience and community. Typically, classes will begin with a coach-led warmup, in which the trainer will read the warm-up, strength and/or skill exercises, and the workout, as well as going through and explaining (as well as demonstrating) each movement. Opportunities to scale movements and loads will be addressed, and then personally evaluated before the workout begins. Throughout workouts, coaches pay personal attention to athletes while maintaining the ability to coach the entire group. Coaches become the ultimate motivator, rallying the group to cheer on their fellow athletes and improve their own performance as well as others. Our trainers tie the whole experience together;; a healthy dose of improvement coupled with a healthy dose of positivity and motivation. Within both locations, trainers along with the athletes at CrossFit Asphalt form a family within the more-than-ordinary gym. The lifestyle these trainers and athletes live up to gives them the drive to continue coming back to CrossFit Asphalt every day for years on end. Every day, new members join our locations, adding to our close-fit family. The trainers take breaks from physical work by working at the front desk. Here, they are given time to relax their bodies while still making themselves productive. Constantly, people come in;; in hopes of joining a gym that best fits their wants and needs. The trainers at the front desk are there to provide educational insight to what CrossFit Asphalt is all about. They are able to give the potential customers a walk-through tour of the entire fitness area, including the locker rooms and all the different massage facilities. Since they know the most about what they are training, they are trusted with bringing in the customers to show what our program is all about. They do a great job at proving to potential athletes why we are the best CrossFit box out there! People walk through the door all the time and say Hey, where are all the machines? I tell them We are the machines! -Mike, Trainer, 26

7 7 ADVERTISING CAMPAIGN Unlike an ordinary business, CrossFit Asphalt deals with more word-of-mouth advertising rather than commercials and billboards. Our advertisements can be seen in local shops in Waltham and Syracuse, but we are aware most of our clients know about us through our current happy athletes. Since we have strong relationships with all the athletes that train at CrossFit Asphalt, they relay the positive messages of our facilities to their neighbors, friends and family. In return, most of our new customers choose CrossFit Asphalt due to positive feedback from our previous and current athletes. COUPON Finding CrossFit Asphalt in my neighborhood changed my life. I never even heard of CrossFit before, until my neighbor told me! We signed up together, initially just to loose our pregnancy weight. Now, we re still here (years later) to compete. - Sarah, Age 30 I love coming here because the work out is different everyday, I can come in and not know what I m doing. I started off just coming here as an escape from gym class, but now I come in every day after school. The hours are flexible with being a student athlete." -Scott, Age 16