Town Sports International Holdings Inc. (TSI), New York, reported first quarter 2018 revenue of $107.1 million, according to financials released by the company on April 26. This marks an $8 million increase over last year's first quarter earnings of $99 million, which had been a decrease of 2.2 percent over 2016.
This follows TSI's announcement in March that it had generated 2017 year-end revenue of $403 million and fourth quarter 2017 revenue of $105 million, representing year-over-year increases of $6 million and $9 million, respectively. That end-of-year report marked the first time in six years that TSI reported an increase in annual revenue.
The results from first quarter 2018 represents TSI's third consecutive quarter of positive growth. In October 2017, the company reported its first quarter of growth for that year.
Since Patrick Walsh Walsh was named TSI's CEO in September 2016, the company has gradually regained financial stability and grown its club portfolio through what Walsh has named a “targeted growth strategy.”
In February 2018, TSI announced its acquisition of David Barton club concept TMPL, New York. and Total Woman Gym + Spa, San Diego. In July 2017, TSI also acquired women-centric Lucille Roberts, New York.
All of the newly acquired clubs will continue to operate under their original branding, according to TSI.
“Walsh has transformed [TSI's] range of offerings within the portfolio utilizing acquisitions and overhauls to enhance and further the portfolio as well as the trajectory of the company," a February media release about TSI's acquisition of TMPL said.
According to financials, TSI’s quarterly net income increased to to $1.1 million versus a loss of $2.9 million in 2017. Adjusted EBITDA grew to $13.7 million versus $10.7 million during the same period last year.
In July 2017, TSI announced it would no longer host conference calls to discuss quarterly results.
TSI was ranked No. 6 on Club Industry's Top 100 Health Clubs of 2017 with $396.92 million in 2016 revenue.
Editors' Note: The headline for this story has been corrected to reflect that the increase was $8 million.