TSI Files for Possible IPO

NEW YORK -- Town Sports International (TSI) filed initial public offering papers with the Securities and Exchange Commission last week on the heels of its chairman and director, Mark Smith, resigning and the release of its annual report, which showed revenue increased $35.6 million in 2005.

TSI has been pursuing a double track in the past year--looking for a buyer while considering going public. A spokesperson for the company would not comment on the SEC filing or say whether the company was also still entertaining bids for a buyer. The IPO filing does not offer a date for stock to be issued to the public.

If TSI does go public, it would trade on NASDAQ under the CLUB symbol, according to the filing. It would be only the third publicly traded health club company. The other two are Bally Total Fitness and Life Time Fitness.

Smith had been with the company since 1985. He resigned a little more than a week before the IPO filing was made. He will continue as a consultant to TSI.

Robert Giardina, the company’s chief executive officer, is now also director while Chief Development Officer Alexander Alimanestianu takes on the additional role of president. Prior to the IPO filing, the company released its annual report showing that revenue for the year ended Dec. 31, 2005 increased to $388.6 million from 2004’s revenue of $353 million. Operating income from 2005 was $40.3 million, an increase from 2004 operating income of $34.3 million. Net loss decreased from 2004, sitting at $1.8 million in 2005 and $3.9 million in 2004. EBITDA was $81.6 million in 2005 compared to $72.7 million in 2004.

TSI owns health clubs located primarily in major cities from Washington, DC north through New England, operating under the New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs brands.

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