Town Sports International Holdings, Inc. Reports First Quarter 2017 Results
Posted: April 26, 2017 in Chains
Town Sports International
NEW YORK, N.Y. – Town Sports International Holdings, Inc. (“TSI” or the “Company”) (NASDAQ: CLUB) reported financial results for its first quarter ended March 31, 2017.
First Quarter Results
- Total member count increased 7,000to 551,000 during Q1 2017 compared to an increase of 12,000 in Q1 2016.
- Membership monthly attrition averaged 3.9% per month in Q1 2017 compared to 3.5% per month in Q1 2016.
- Q1 2017 net loss was $2.9 million, or $0.11 loss per share, compared with Q1 2016 net loss of $6.9 million, or $0.28 loss per share.
- Adjusted EBITDA was $10.7 million in Q1 2017, an increase of 35.3% compared to Adjusted EBITDA of $7.9 million in Q1 2016.
Patrick Walsh, Chairman and Chief Executive Officer of TSI, commented: “We continue to experience Adjusted EBITDA growth compared to the prior year and our comparable club revenue turned positive for the first time since 2012 with a 0.7% increase. Additionally, we are excited to open the Company’s new flagship location at Astor Place in New York City in May and continue to look for other acquisition opportunities.”
Total revenue for Q1 2017 decreased to $99.1 million compared to $101.3 million for Q1 2016, primarily related to the impact of club closures as well as declines in initiation and processing fees, personal training revenue and other ancillary club revenue. The revenue decrease was partially offset by an increase in membership dues.
Total operating expenses for Q1 2017 was $99.2 million compared to $105.1 million for Q1 2016, primarily reflecting the impact of club closures and results of our cost-savings initiatives, which included payroll savings, decreased marketing spend, savings from lower utilities usage, as well as savings in General and administrative expenses.
Total cash and total debt as of March 31, 2017 was $59.9 million and $201.5 million, respectively, and total cash and total debt as of December 31, 2016 was $45.6 million and $202.0 million.