Town Sports International Holdings Inc. (TSI), New York, reported 2017 year-end revenue of $403 million and fourth quarter 2017 revenue of $105 million, according to financials released by the company on Feb. 28, representing year-over-year increases of $6 million and $9 million, respectively. This marks the first time in six years TSI has reported an increase in revenue.
On Feb. 27, TSI also announced it has acquired David Barton club concept TMPL, New York. This purchase, which was for an undisclosed amount, follows two other major acquisitions for TSI—Total Woman Gym + Spa in February 2018 and Lucille Roberts in July 2017. All of the newly acquired clubs will continue to operate under their original branding, according to TSI.
"David Barton is an iconic name in the fitness industry and acquiring TMPL was an obvious decision,” TSI CEO Patrick Walsh said in a media release. “It fits into our continued growth strategy and gives TSI a new foothold in the luxury market. David is a visionary, and we're excited to see what the future holds working together."
TMPL focuses on combining metabolic science, exercise and nutrition leveraging technology to change one’s body. TMPL’s metabolic analysis delivers each member individualized exercise and nutrition programming to condition their metabolism to more efficiently alter body composition, according to the media release.
Since Walsh assumed CEO duties in September 2016, TSI has gradually regained financial stability and expanded its club portfolio through what Walsh has called a “targeted growth strategy.” In October 2017, the company reported its first quarter of growth for the year.
The TMPL releases states: “Walsh has transformed its range of offerings within the portfolio utilizing acquisitions and overhauls to enhance and further the portfolio as well as the trajectory of the company.”
According to financials, TSI’s 2017 net income decreased to $4.4 million versus $8 million in 2016 and $21.2 million in 2015. However, adjusted EBITDA grew to $51.8 million in 2017 versus $40.9 million in 2016.
TSI was ranked No. 6 on Club Industry's Top 100 Health Clubs of 2017 with $396.92 million in 2016 revenue.