Town Sports International Holdings Inc. (TSI), New York, reported $99.1 million in first quarter revenue, a 2.2 percent decrease year-over-year, according to financials released Thursday.
Chairman and CEO Patrick Walsh attributed this drop primarily to club closures and declines in miscellaneous fees.
“We continue to experience Adjusted EBITDA growth compared to the prior year, and our comparable club revenue turned positive for the first time since 2012 with a 0.7 percent increase,” Walsh said in a press release. “Additionally, we are excited to open the company’s new flagship location at Astor Place in New York City in May and continue to look for other acquisition opportunities.”
Earlier this year, the company purchased a closed David Barton Gym location in Astor Place and is converting it to a club under its brand.
The company’s quarterly net loss was $2.9 million, compared to $6.9 million in 2016. Membership dues grew (1.3 percent), while the following all decreased: initiation and processing fees (51.7 percent), personal training revenue (7.7 percent) and ancillary club revenue (12.6 percent).
TSI’s total member count grew 7,000 to 551,000 during the quarter, compared to an increase of 12,000 members in 2016.
Last November, TSI announced it was updating select New York Sports Clubs and Boston Sports Clubs with new furniture, lighting and fitness rooms. New branding materials also emphasize the facilities' functions as community-centric, neighborhood gyms.
In February, the company released its 2016 financial report, which showed its fifth-straight year of revenue decline.