Town Sports International Holdings Inc. (TSI), Jupiter, Florida, recently reported its third consecutive year of revenue growth, but the company's balance sheet shows that its 2019 gains were accompanied by $6.45 million in operating losses. This compares to $12.51 million in operating income for 2018.
TSI's staple club brands include New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs, Philadelphia Sports Clubs and Palm Beach Sports Clubs.
TSI reported a 5.3 percent increase in its 2019 revenue to $466.760 million. This growth was supported by a 2.1 percent increase in its fourth quarter revenue to $115.96 million.
TSI’s adjusted EBITDA decreased by 23.3 percent for the full year ($41.55 million) and by 32.6 percent for the fourth quarter ($9.85 million).
In a March 20 media release, TSI CEO Patric Walsh said he is encouraged by the company's recent same-store revenue growth.
“Our fourth quarter same store revenue results materially improved from the third quarter," Walsh said. "We are very pleased to report that this improvement continued into the new year with same store sales increasing 0.9 percent in January and 1.2 percent in February of 2020. As we weather the strains on our business from the unprecedented worldwide response to the coronavirus outbreak, we look forward to resuming this trend in the remainder of 2020."
TSI's stock (NYSE: CLUB) was trading at 66 cents per share on March 23, after trading as high as $2.86 per share in mid-January.
In other news, TSI acquired Flywheel Sports' 29 cycling studios in January 2020 for a principal amount of $25 million. In February, Flywheel informed its Flywheel At Home customers that it was discontinuing its at-home service effective March 27, after its recent lawsuit settlement with competitor Peloton.
TSI ranked No. 7 on Club Industry’s Top 100 Health Clubs of 2019 list, reporting $443 million in 2018 revenue.