Town Sports International Holdings, Inc. ("TSI" or "the Company"), a leading owner of health clubs located primarily in major cities from Washington, DC north through New England, operating under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs, announced its results for the quarter ended September 30, 2006.
Third quarter 2006 revenue grew 11.4% to $109.4 million from $98.2 million for the same period last year. Total revenue for the first nine months of 2006 grew 11.3% to $322.9 million from $290.0 million during the same period last year. Comparable club revenue increased 7.8% during the third quarter compared to the same period in the prior year.
Robert Giardina, Chief Executive Officer of TSI, commented, "We are very pleased to be able to report our fourth consecutive quarter of double-digit revenue growth, as well as 32.6% EBITDA growth, which is an acceleration from the first half of the year. During the quarter, we continued to post very solid comparable-club revenue growth along with double-digit member and ancillary revenue growth, and we are on track to meet our 2006 expansion goals while having established a pipeline of new clubs for 2007 and 2008." Mr. Giardina continued, "We are now looking to finish the year in strong fashion and surpass our initial financial objectives for 2006, and we are excited to look to the future with good momentum, a unique strategy within our industry, and with a team of employees throughout our organization that continues to execute at a very high level."
- Total operating expenses increased by 5.8% to $94.2 million in Q3 2006 compared to $89.0 million in Q3 2005.
- Net income for Q3 2006 was $0.8 million compared to net loss of $0.1 million in the same period of prior year. The $7.4 million pre-tax loss on extinguishment of debt in Q3 2006 was an offset to the net income during the quarter.
- EBITDA for Q3 2006 increased 32.6% to $25.8 million from $19.5 million in Q3 2005. As a percentage of total revenue, EBITDA margin was 23.6% in Q3 2006, compared to 19.8% in Q3 2005.
- Adjusted EBITDA for Q3 2006 increased 34.4% to $26.3 million from $19.6 million in Q3 2005. As a percentage of total revenue, adjusted EBITDA margin was 24.0% in Q3 2006, compared to 19.9% in Q3 2005.
- Total revenue for the first nine months ended
September 30, 2006grew 11.3% to $322.9 million from $290.0 million during the same period last year. The increase in revenue was driven by growth in membership revenue and ancillary club revenue.
- Operating expenses totaled $283.7 million, compared with $260.7 million for the same period last year.
- Net loss for the nine months ended
September 30, 2006was $2.0 million compared to net income of $0.5 million in the same period of prior year. The $8.7 million and $7.4 million pre-tax charges related to the extinguishment of debt in Q2 2006 and Q3 2006, respectively were contributors to the net loss in the nine months ended September 30, 2006.
About Town Sports International Holdings, Inc.
New York-based Town Sports International Holdings, Inc. is a leading owner and operator of fitness clubs in the Northeast and mid-Atlantic regions of the