NEW YORK -- Town Sports International Holdings, Inc., which owns health clubs located primarily in major cities from Washington, DC north through New England, announced its financial results for the quarter ended Sept. 30, 2006.
The clubs operate under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs.
Third quarter 2006 revenue grew 11.4 percent 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 percent to $322.9 million from $290.0 million during the same period last year. Comparable club revenue increased 7.8 percent during the third quarter compared to the same period in the prior year.
"We are very pleased to be able to report our fourth consecutive quarter of double-digit revenue growth, as well as 32.6 percent EBITDA growth, which is an acceleration from the first half of the year,” says Robert Giardina, CEO of TSI. “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."
Total revenue for the third quarter grew 11.4 percent to $109.4 million from $98.2 million for the same period last year. The increase in revenue was driven by growth in membership revenue and ancillary club revenue.
"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," Giardina says.