The economics of gyms are pretty awful. VVA's balance sheet...

The economics of gyms are pretty awful. VVA's balance sheet bares that out and goes a long way to explaining the focus on utilisation. If you've got $260m of leased gym equipment and debt, backed by $10m-$20m in equity ex-goodwill then you need those gyms full. If you can catch the updraft of rising utilisation then you could do well. But it's really only a trade because sooner or later the economics of gyms catches up to you. That leverage in something like a discount gym chain would keep me up at night.