Quarterly Report
Q1 2024
Dear Investors,
We had another great quarter in the Alturas Business Fund. We produced a realized return to the investors of 20.44%.
Idaho Fitness Factory is doing great. Operations are stable and consistent. Our first expansion location (Overland) turned profitable about 5 months before we expected. Customers are happy. The location is beautiful. And we have a new model for delivering gyms with brand new equipment with new amenities like saunas. Customers are willing to pay a premium for this new offering, which gives us confidence in our expansion plans moving forward.
We are working hard on delivering our 2nd expansion location (10th location overall) in a former Rite Aid facility in south Meridian. The location is ideally located, with fantastic visibility, huge traffic counts, and very little direct competition. Just like the Overland location, we will have all brand new equipment, saunas, plus the other aspects of the gyms that our customers have come to love and expect.
In addition to other potential sites in the Treasure Valley in Idaho, we are exploring opportunities in new markets across Idaho and the Pacific Northwest. We are confident that we will continue to grow and expand the business, especially with the help from our sister company, ACP and the Alturas Real Estate Fund. We are developing a deep partnership with them to assist in our expansion in a mutually beneficial way.
We are deep in our due diligence process for another acquisition. We have a few more details to work on with the sellers and an operating partner that brought us the opportunity. After looking at hundreds of potential acquisitions, this one is beginning to come together in a meaningful way. Although it’s not a done deal, we are confident that it can turn into the 2nd acquisition for the fund.
Thanks,
Blake Hansen
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
We had another great quarter in the Alturas Business Fund. We produced a realized return to the investors of 20.44%.
Idaho Fitness Factory is doing great. Operations are stable and consistent. Our first expansion location (Overland) turned profitable about 5 months before we expected. Customers are happy. The location is beautiful. And we have a new model for delivering gyms with brand new equipment with new amenities like saunas. Customers are willing to pay a premium for this new offering, which gives us confidence in our expansion plans moving forward.
We are working hard on delivering our 2nd expansion location (10th location overall) in a former Rite Aid facility in south Meridian. The location is ideally located, with fantastic visibility, huge traffic counts, and very little direct competition. Just like the Overland location, we will have all brand new equipment, saunas, plus the other aspects of the gyms that our customers have come to love and expect.
In addition to other potential sites in the Treasure Valley in Idaho, we are exploring opportunities in new markets across Idaho and the Pacific Northwest. We are confident that we will continue to grow and expand the business, especially with the help from our sister company, ACP and the Alturas Real Estate Fund. We are developing a deep partnership with them to assist in our expansion in a mutually beneficial way.
We are deep in our due diligence process for another acquisition. We have a few more details to work on with the sellers and an operating partner that brought us the opportunity. After looking at hundreds of potential acquisitions, this one is beginning to come together in a meaningful way. Although it’s not a done deal, we are confident that it can turn into the 2nd acquisition for the fund.
Thanks,
Blake Hansen
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
Dear Investors,
We had another great quarter in the Alturas Business Fund. We produced a realized return to the investors of 20.44%.
Idaho Fitness Factory is doing great. Operations are stable and consistent. Our first expansion location (Overland) turned profitable about 5 months before we expected. Customers are happy. The location is beautiful. And we have a new model for delivering gyms with brand new equipment with new amenities like saunas. Customers are willing to pay a premium for this new offering, which gives us confidence in our expansion plans moving forward.
We are working hard on delivering our 2nd expansion location (10th location overall) in a former Rite Aid facility in south Meridian. The location is ideally located, with fantastic visibility, huge traffic counts, and very little direct competition. Just like the Overland location, we will have all brand new equipment, saunas, plus the other aspects of the gyms that our customers have come to love and expect.
In addition to other potential sites in the Treasure Valley in Idaho, we are exploring opportunities in new markets across Idaho and the Pacific Northwest. We are confident that we will continue to grow and expand the business, especially with the help from our sister company, ACP and the Alturas Real Estate Fund. We are developing a deep partnership with them to assist in our expansion in a mutually beneficial way.
We are deep in our due diligence process for another acquisition. We have a few more details to work on with the sellers and an operating partner that brought us the opportunity. After looking at hundreds of potential acquisitions, this one is beginning to come together in a meaningful way. Although it’s not a done deal, we are confident that it can turn into the 2nd acquisition for the fund.
Thanks,
Blake Hansen
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Big News for Q2
Big News for Q2
Big News for Q2
Expansion
Idaho Fitness Factory
Expansion
Idaho Fitness Factory
#9 OVERLAND
IN SERVICE
$30,000 Q1 financial performance improvement
$8,000 Revenue increase
$10,000 Payroll decrease
$12,000 Decrease in other operating expenses
#9 OVERLAND
IN SERVICE
$30,000 Q1 financial performance improvement
$8,000 Revenue increase
$10,000 Payroll decrease
$12,000 Decrease in other operating expenses
#9 OVERLAND
IN SERVICE
$30,000 Q1 financial performance improvement
$8,000 Revenue increase
$10,000 Payroll decrease
$12,000 Decrease in other operating expenses
#10 VICTORY AND EAGLE
LEASE SIGNED
Signed 10th location lease
14,500 Total square feet
Former Rite Aid
October Expected opening
#10 VICTORY AND EAGLE
LEASE SIGNED
Signed 10th location lease
14,500 Total square feet
Former Rite Aid
October Expected opening
#11 TEN MILE
UNDER CONSTRUCTION
New amenities: Red light & Sauna
West Meridian Significant developmental area
New Construction First location with a new build
Partnership With Alturas Capital Partners and AREF
#11 TEN MILE
UNDER CONSTRUCTION
New amenities: Red light & Sauna
West Meridian Significant developmental area
New Construction First location with a new build
Partnership With Alturas Capital Partners and AREF
DEALS IN REVIEW
DEALS IN REVIEW
VOCATIONAL SCHOOLS
Operating partner based in Idaho
Stable cash flow from tuition
High barrier to entry due to government funding
Roll up strategy in Arizona, Texas, California and beyond
VOCATIONAL SCHOOLS
Operating partner based in Idaho
Stable cash flow from tuition
High barrier to entry due to government funding
Roll up strategy in Arizona, Texas, California and beyond
REGIONAL TRUCKING COMPANIES
2023 was a tough year for the trucking industry
Now is a good time to get into the space
Transportation growth and regional demographic growth
Fragmented industry with opportunity to consolidate
REGIONAL TRUCKING COMPANIES
2023 was a tough year for the trucking industry
Now is a good time to get into the space
Transportation growth and regional demographic growth
Fragmented industry with opportunity to consolidate
Key Numbers
Key Numbers
Key Numbers
20.44%
Average Realized Return
20.44%
Average Realized Return
20.44%
Average Realized Return
21.47%
Average realized return since inception
21.47%
Average realized return
21.47%
Average realized return since inception
$322,915
Realized Net Income
$322,915
Realized Net Income
$322,915
Realized Net Income
$1,088.53
Unit Price
$1,088.53
Unit Price
$1,088.53
Unit Price
$1,584,648
Realized net income since inception
$1,584,648
Realized net income since inception
$1,584,648
Realized net income since inception
Stated returns are average annualized investor returns. Individual investor returns may vary based on the unit pricing at the time of investment. Realized net income (Excess Distributable Income) includes realized gains and losses and excludes unrealized gains and losses recorded during the period. Financial information herein related to the quarters ended in 2024 are unaudited as of the date of this report.
Realized Returns
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
$4.33M
Total Capital Raised
$4.33M
Total Capital Raised
$4.33M
Total Capital Raised
$1.1M
Investor distribution since inception
$1.1M
Average realized return
$1.1M
Investor distribution since inception
27
Number of investors
27
Number of investors
27
Number of investors
92.64%
Current reinvestment rate
92.64%
Current reinvestment rate
92.64%
Current reinvestment rate
$1,088
Unit price
$1,088
Unit price
$1,088
Unit price
$8.8M
Assets under management
$8.8M
Assets under management
$8.8M
Assets under management
*Distributions since inception includes Q1 2024 distributions paid on 03/31/2024.
Idaho Fitness Factory
Idaho Fitness Factory had a strong Q1 2024. With our 9th location continuing to ramp up and a lease signed for our 10th location, IFF is poised for a strong 2024. In the first quarter, Overland outperformed our projects by about $30,000 over three months. Our revenue was about $8,000 higher due to a faster ramp up, a higher conversion rate and additional annual fees. Our payroll and operational expenses were about $20,000 lower. We initially forecasted a higher payroll, but operationally approached staffing to scale with the ramp up of members keeping our initial payroll costs lower. In addition to Overland outperforming, we also signed a lease for our 10th location. It is a former RiteAid location that is just over 14,000 sqft. located in S. Meridian. We are confident this location will perform well due to low competition, high population numbers, and additional room for housing growth. We plan to open this location in the Fall just in time for our busy season. We also plan to update equipment at several of our current locations to better the member experience and improve our offerings to better match our newer offerings. In conjunction with this flip out, we plan to increase prices and standardize our memberships. We provide a great product and are confident that our current and future members will support an improved experience for a slightly higher price. This year, not only are we continuing to expand, but are focused on providing the highest quality gym for the best price. Idaho Fitness Factory has a great foundation and these improvements will set us up for the future.
Idaho Fitness Factory
Idaho Fitness Factory had a strong Q1 2024. With our 9th location continuing to ramp up and a lease signed for our 10th location, IFF is poised for a strong 2024. In the first quarter, Overland outperformed our projects by about $30,000 over three months. Our revenue was about $8,000 higher due to a faster ramp up, a higher conversion rate and additional annual fees. Our payroll and operational expenses were about $20,000 lower. We initially forecasted a higher payroll, but operationally approached staffing to scale with the ramp up of members keeping our initial payroll costs lower. In addition to Overland outperforming, we also signed a lease for our 10th location. It is a former RiteAid location that is just over 14,000 sqft. located in S. Meridian. We are confident this location will perform well due to low competition, high population numbers, and additional room for housing growth. We plan to open this location in the Fall just in time for our busy season. We also plan to update equipment at several of our current locations to better the member experience and improve our offerings to better match our newer offerings. In conjunction with this flip out, we plan to increase prices and standardize our memberships. We provide a great product and are confident that our current and future members will support an improved experience for a slightly higher price. This year, not only are we continuing to expand, but are focused on providing the highest quality gym for the best price. Idaho Fitness Factory has a great foundation and these improvements will set us up for the future.
Idaho Fitness Factory
Idaho Fitness Factory had a strong Q1 2024. With our 9th location continuing to ramp up and a lease signed for our 10th location, IFF is poised for a strong 2024. In the first quarter, Overland outperformed our projects by about $30,000 over three months. Our revenue was about $8,000 higher due to a faster ramp up, a higher conversion rate and additional annual fees. Our payroll and operational expenses were about $20,000 lower. We initially forecasted a higher payroll, but operationally approached staffing to scale with the ramp up of members keeping our initial payroll costs lower. In addition to Overland outperforming, we also signed a lease for our 10th location. It is a former RiteAid location that is just over 14,000 sqft. located in S. Meridian. We are confident this location will perform well due to low competition, high population numbers, and additional room for housing growth. We plan to open this location in the Fall just in time for our busy season. We also plan to update equipment at several of our current locations to better the member experience and improve our offerings to better match our newer offerings. In conjunction with this flip out, we plan to increase prices and standardize our memberships. We provide a great product and are confident that our current and future members will support an improved experience for a slightly higher price. This year, not only are we continuing to expand, but are focused on providing the highest quality gym for the best price. Idaho Fitness Factory has a great foundation and these improvements will set us up for the future.
Financial Summary
Idaho Fitness Factory had a strong financial performance in Q1 of 2024. A typical seasonal increase in memberships, our new pricing, and the continued ramp up of our new Overland location drove higher revenue at $1.5 million. As expected, our Facility, Payroll, and G&A expenses increased with the busy season and the opening of a ninth club. However, we did decrease Sales & Marketing expenses by separating from a 3rd party marketing service and bringing those efforts in house once again.
We’ve started recognizing depreciation which is reflected in Q1 2024 and going forward. Additionally, we paid down additional debt at the end of 2023 which lowered our interest expense for Q1 2024. This is also reflected in a higher principle paydown as our principle to interest has increased proportionally in our monthly debt payments.
As the financials for IFF in Q1 2024 illustrate, we continue to grow and refine our operations and expect to see revenue continue to climb with additional locations and new members joining at a higher price point.
Financial Summary
Idaho Fitness Factory had a strong financial performance in Q1 of 2024. A typical seasonal increase in memberships, our new pricing, and the continued ramp up of our new Overland location drove higher revenue at $1.5 million. As expected, our Facility, Payroll, and G&A expenses increased with the busy season and the opening of a ninth club. However, we did decrease Sales & Marketing expenses by separating from a 3rd party marketing service and bringing those efforts in house once again.
We’ve started recognizing depreciation which is reflected in Q1 2024 and going forward. Additionally, we paid down additional debt at the end of 2023 which lowered our interest expense for Q1 2024. This is also reflected in a higher principle paydown as our principle to interest has increased proportionally in our monthly debt payments.
As the financials for IFF in Q1 2024 illustrate, we continue to grow and refine our operations and expect to see revenue continue to climb with additional locations and new members joining at a higher price point.
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
20,398
Total members
20,398
Total members
770
Net member change
770
Net member change
82,458
Total square feet
82,458
Total square feet
$1.37M
Total revenue Q2 2024
$1.37M
Total revenue Q2 2024
2,266
Average members per location
2,266
Average members per location
$152,000
Average revenue per location
$152,000
Average revenue per location
46.51%
Overall acceptance rate of unlimited
46.51%
Overall acceptance rate of unlimited
48.70%
Quarterly conversion rate of home club to unlimited
48.70%
Quarterly conversion rate of home club to unlimited
192
Membership increases from original 8 locations.
54.38%
Membership increases from original 8 locations.
578
Membership increases from Overland location.
54.38%
Membership increases from Overland location.
20,398
Total members
770
Net member change
82,458
Total square feet
$1.37M
Total revenue Q2 2024
2,266
Average members per location
$152,000
Average revenue per location
46.51%
Overall acceptance rate of unlimited
48.70%
Quarterly conversion rate of home club to unlimited
192
Membership increases from original 8 locations.
578
Membership increases from Overland location.
Member Growth Analysis
We continue to see strong growth for both Home and Unlimited memberships. While there is a reduction in Grandfathered memberships, this group leaves at a slower rate. With our equipment update plan, price increase, and membership standardization, we are hoping to continue to increase our revenue while delivering a high quality product.
Member Growth Analysis
We continue to see strong growth for both Home and Unlimited memberships. While there is a reduction in Grandfathered memberships, this group leaves at a slower rate. With our equipment update plan, price increase, and membership standardization, we are hoping to continue to increase our revenue while delivering a high quality product.
Member Growth Analysis
We continue to see strong growth for both Home and Unlimited memberships. While there is a reduction in Grandfathered memberships, this group leaves at a slower rate. With our equipment update plan, price increase, and membership standardization, we are hoping to continue to increase our revenue while delivering a high quality product.
Fund Description
The Alturas Business Fund is an evergreen business investment fund formed to provide accredited investors access to a diversified portfolio of small to medium-sized businesses. The Fund focuses on acquiring and operating businesses with sustainable and predictable cash flow that produce attractive risk-adjusted returns in the Intermountain West and Pacific Northwest, starting with Idaho. The Fund is a $100 million equity and debt offering.
Fund Description
The Alturas Business Fund is an evergreen business investment fund formed to provide accredited investors access to a diversified portfolio of small to medium-sized businesses. The Fund focuses on acquiring and operating businesses with sustainable and predictable cash flow that produce attractive risk-adjusted returns in the Intermountain West and Pacific Northwest, starting with Idaho. The Fund is a $100 million equity and debt offering.
Fund Description
The Alturas Business Fund is an evergreen business investment fund formed to provide accredited investors access to a diversified portfolio of small to medium-sized businesses. The Fund focuses on acquiring and operating businesses with sustainable and predictable cash flow that produce attractive risk-adjusted returns in the Intermountain West and Pacific Northwest, starting with Idaho. The Fund is a $100 million equity and debt offering.
Our Investment Offerings
Summary of Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of businesses focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted total realized return: 20%
No Preferred Return
Profit Split: 70% investors, 30% manager
Fees: 1.5% asset management fee
Minimum investment: $100,000
Our Investment Offerings
Summary of Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of businesses focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted total realized return: 20%
No Preferred Return
Profit Split: 70% investors, 30% manager
Fees: 1.5% asset management fee
Minimum investment: $100,000
All projections are hypothetical and predicated upon various assumptions that may or may not be identified as such. The future operating and financial performance information contained herein is for illustrative purposes and is not intended to portray any sort of targeted or anticipated returns. There can be no assurance that the Fund will achieve its investment objectives and actual performance may vary significantly.Alturas Ventures, LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.