NEW YORK — Town Sports International Inc. (TSI) announced its results for the quarter ended June 30, 2004.
Revenues for the three months ended June 30, 2004 were $88.9 million, an increase of $2.8 million or 3.2 percent over the same quarter of 2003. During the quarter, TSI's mature clubs (those in operation for 24 months or longer) experienced a slight increase in revenue of 1 percent or $0.8 million when compared to the prior year's second quarter. Revenue at clubs open more than twelve months increased 1.3 percent when compared to the prior year's second quarter.
“As part of our focus of concentrating on growing ancillary revenue, during the quarter our new vice president of marketing successfully negotiated several sponsorship programs that are expected to generate more than $5 million in revenue over the next five years,” said Bob Giardina, CEO of TSI. “These programs include product sampling, in club promotions and in club advertising. During the quarter ended June 30, 2004 we realized $265,000 of sponsorship-related revenue.”
| Three months ended June 30, 2004 | 2Q 2003 | 2Q 2004 | % Chg. | ||||
|---|---|---|---|---|---|---|---|
| Net Income (loss) | |||||||
| $(1,121) | $2,447 | (318.3)% | |||||
| Provision (benefit) for corporate income taxes | |||||||
| (84) | 1,659 | ||||||
| Loss on extinguishment of debt | |||||||
| 7,773 | — | ||||||
| Interest expense, net of interest income | |||||||
| 5,919 | 6,478 | ||||||
| Non-cash goodwill impairment | — | — | |||||
| Six months ended June 30, 2004 | 2003 | 2004 | % Chg. | ||||
| Net Income (loss) | |||||||
| $4,720 | $1,594 | (66.2)% | |||||
| Provision (benefit) for corporate income taxes | |||||||
| 4,015 | 990 | ||||||
| Loss on extinguishment of debt | |||||||
| 7,773 | — | ||||||
| Interest expense, net of interest income | |||||||
| 10,129 | 12,964 | ||||||
| Non-cash goodwill impairment | |||||||
| — | 2,002 | ||||||