Town Sports International's Revenue Dropped 1 Percent in Second Quarter 2017

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Town Sports International is attempting to grow its revenue through acquisitions, such as the 16 Lucille Roberts Health Clubs the company agreed to purchase in early July..(Photo courtesy Town Sports International.)

TSI reported a $410,000 loss in net income in the quarter compared to $20.73 million in net income during the same period last year. The company reported a decrease in operating expenses from $102.39 million to $96.47 million. TSI's operating income grew from a loss of $1.46 million in second quarter 2016 to $3.51 million for second quarter 2017. However, 

Adjusted EBITDA rose from $9.57 million to $13.21 million year-over-year.

TSI did not hold a conference call to discuss the report, nor did CEO Patrick Walsh provide any analysis or comments in the report itself.

The report states: "Until further notice, TSI will not be hosting conference calls to discuss quarterly results. TSI intends to continue to issue press releases reporting quarterly earnings."

In the first quarter, TSI reported revenue of $99.1 million, which was a 2.2 percent decrease year-over-year.

Earlier this month, the company announced it had agreed to acquire Lucille Roberts Health Clubs for an undisclosed amount. The deal is expected to close by the end of August and will add 16 New York City-area clubs to TSI's portfolio. In a media release, Walsh called the acquisition "a prime example of TSI's targeted growth strategy."

TSI operated 149 fitness clubs across the globe, including 102 New York Sports Clubs, 28 Boston Sports Clubs, 11 Washington Sports Clubs, five Philadelphia Sports Clubs and three clubs in Switzerland. Its memberships numbered 549,000 as of June 30, according to the quarterly report.

TSI ranked No. 6 on Club Industry 2016 Top 100 Health Clubs list.

 

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