Town Sports International Holdings Inc. (TSI), Jupiter, Florida, reported third quarter 2019 revenue of $115.49 million, according to financials released by the company on Nov. 5. This represents a 4.8 percent increase over last year's third quarter earnings of $110.17 million as well as the company’s ninth straight quarter of revenue growth.
TSI operates health clubs under the names New York Sports Clubs, Philadelphia Sports Clubs, Boston Sports Clubs and Washington Sports Clubs.
TSI also reported a 12.8 percent increase in its operating expenses ($124.32 million), a 197 percent increase in net losses (a loss of $11.73 million) and a 30.5 percent decrease in adjusted EBITDA ($8.37 million). In July 2017, TSI, which is a publicly traded company, announced it would no longer host conference calls to discuss quarterly results, despite the calls being a practice that many public companies do. The company offered no explanation for its numbers when it released the third quarter financial report.
In April 2019, an anonymous industry insider told Club Industry that the average health club company should see EBITDA margins grow by at least 15 percent every year.
TSI's stock price (NYSE: CLUB) has steadily declined throughout 2019, never exceeding $6.39 per share and closing at $2.08 on Nov. 5. Comparatively, it was trading at more than $14 per share in mid-2018.
TSI CEO Patrick Walsh addressed the company’s stock prices and its recent acquisitions in an April 2019 letter to shareholders in which he expressed optimism cautious optimism about the company’s future.
TSI ranked No. 7 on Club Industry’s Top 100 Health Clubs of 2019 list, reporting $443 million in 2018 revenue.