TSI CEO Pleased with 2010 Progress

Despite lower revenues for both fourth quarter 2010 and for the year 2010, CEO Robert Giardina was pleased with the performance of Town Sports International (TSI).

Revenue for TSI, which operates New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs, decreased 0.2 percent in fourth quarter 2010 ($114.1 million) compared to fourth quarter 2009 ($114.3 million) and decreased 4.7 percent in full-year 2010 ($462.4 million) compared to full-year 2009 ($485.4 million), the New York-based company announced today. The total revenue in fourth quarter 2010 includes $2.7 million of personal training revenue recognized for expired and unused sessions in three of TSI’s jurisdictions.

Net income was $1.3 million in fourth quarter 2010 compared to a net loss of $7.3 million in fourth quarter 2009. For 2010, the net loss was $290,000 compared to a net loss of $5.7 million in 2009.

TSI’s total member count increased 1.4 percent to 493,000 on Dec. 31, 2010, compared to 486,000 on Dec. 31, 2009. Membership attrition averaged 3.4 percent per month in fourth quarter 2010 and 3.5 percent per month in full-year 2010 compared to 3.6 percent per month in fourth quarter 2009 and 3.8 percent per month in full-year 2009.

“We are very pleased with the progress we made in 2010, and how Town Sports is positioned as we enter 2011,” Giardina said in a statement. “We ended the year with some positive momentum in the business for the first time in more than two years, including improvements in our comparable club revenue comparison, as well as our personal training and membership trends. Our balance sheet has also improved from a year ago, and we believe our approach to the business is on track. We have a great team in place to execute our strategies.”

For first quarter 2011, TSI expects revenue to be between $115.5 million and $116.5 million compared to $117.8 million in the same period last year. Also, the company expects its net income to be between breakeven and $500,000 in first quarter 2011.

TSI, which listed 160 total clubs at the end of last year, plans to open two clubs in the second half of this year.

TSI’s stock closed today at $4.18 a share after opening at $4.15 on the NASDAQ Stock Market.

TAGS: News
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