Town Sports International Holdings, Inc. (“TSI”) (NASDAQ: CLUB)
today reported results for the second
quarter of 2017.
TSI’s earnings for the second quarter 2017 are summarized below.
To become fully apprised of our results, shareholders are urged to
read our Form 10-Q for the quarterly period ended June 30,
2017 posted at http://investor.mysportsclubs.com. The limited information that follows in this
press release is not adequate for making informed investment
decisions. The unaudited condensed consolidated Statements of
Operations are included below.
Dollar amounts in this release are in thousands, except for
share and per share amounts. Amounts are unaudited.
Condensed Consolidated Statements of
Operations
Second Quarter 2017 2016
Revenues: Club operations $ 98,392 $ 99,406 Fees and other
1,601 1,529 99,993 100,935
Operating
Expenses: Payroll and related 37,058 38,173 Club operating
44,032 46,783 General and administrative 5,369 6,544 Depreciation
and amortization 10,016 10,897 96,475 102,397
Operating income (loss) 3,518 (1,462 ) Gain on
extinguishment of debt — (38,497 ) Interest expense 3,155 3,492
Equity in the earnings of investees and rental income (48 ) (89 )
Income before provision for corporate income taxes 411 33,632
Provision for corporate income taxes 821 12,899 Net
(loss) income $ (410 ) $ 20,733 (Loss) earnings per share:
Basic $ (0.02 ) $ 0.81 Diluted $ (0.02 ) $ 0.79 Weighted average
number of shares used in calculating (loss) earnings per share:
Basic 26,692,919 25,638,070 Diluted 26,692,919 26,165,827
Reconciliation of Net (Loss) Income to
EBITDA and Adjusted EBITDA
Second Quarter 2017 2016 Net
(loss) income $ (410 ) $
20,733 Interest expense, net of interest income 3,155 3,492
Provision for corporate income taxes 821 12,899 Depreciation and
amortization 10,016 10,897 EBITDA 13,582 48,021 Gain
on extinguishment of debt — (38,497 ) Costs for closing clubs and
cost-savings initiatives, net of landlord recovery (366 ) 49
Adjusted EBITDA $ 13,216 $
9,573
Non-GAAP Financial Measures - EBITDA and Adjusted
EBITDA
EBITDA consists of net income (loss) plus interest expense (net
of interest income), provision (benefit) for corporate income
taxes, and depreciation and amortization. Adjusted EBITDA is TSI’s
EBITDA excluding certain items, such as any fixed asset or goodwill
impairments, gain (loss) on extinguishment of debt, costs for
closing clubs and cost-savings initiatives, net of landlord
recovery. EBITDA is not a measure of liquidity or financial
performance presented in accordance with GAAP. EBITDA, as we define
it, may not be identical to similarly titled measures used by some
other companies.
EBITDA has material limitations as an analytical tool and should
not be considered in isolation or as a substitute for net income
(loss), operating income (loss), cash flows from operating
activities or other cash flow data prepared in accordance with
GAAP. The items excluded from EBITDA, but included in the
calculation of reported net income and operating income, are
significant and must be considered in performing a comprehensive
assessment of our performance.
Investors or prospective investors in TSI regularly request
EBITDA as a supplemental analytical measure to, and in conjunction
with, our GAAP financial data. We understand that these investors
use EBITDA, among other things, to assess our ability to service
our existing debt and to incur debt in the future, to evaluate our
executive compensation programs, to assess our ability to fund our
capital expenditure program, and to gain insight into the manner in
which TSI’s management and board of directors analyze our
performance. We believe that investors find the inclusion of EBITDA
in our press releases to be useful and helpful to them.
Our management and board of directors also use EBITDA as a
supplemental measure to our GAAP financial data for purposes
broadly similar to those used by investors.
Adjusted EBITDA has similar uses and limitations as EBITDA. We
have excluded additional items in the calculation of Adjusted
EBITDA because management believes that this metric is useful in
making period to period comparisons of our performance. We do not,
and investors should not, place undue reliance on EBITDA or
Adjusted EBITDA as a measure of our performance.
Forward-Looking Statements
This release may contain “forward-looking” statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements regarding future
financial results and performance, potential club closures, results
of cost-savings initiatives, and other statements that are
predictive in nature or depend upon or refer to events or
conditions, or that include words such as “may,” “should,” or the
negative version of these words or other comparable words.
Forward-looking statements speak only as of the date when made, and
TSI undertakes no obligation to update these statements in light of
subsequent events or developments. Actual results may differ
materially from anticipated results or outcomes discussed in any
forward-looking statement.
About Town Sports International Holdings, Inc.
Town Sports International Holdings, Inc. is one of the leading
owners and operators of fitness clubs in the Northeast and
mid-Atlantic regions of the United States and, through its
subsidiaries, operated 149 fitness clubs as of June 30, 2017,
comprising 102 New York Sports Clubs, 28 Boston Sports Clubs, 11
Washington Sports Clubs (one of which is partly-owned), five
Philadelphia Sports Clubs, and three clubs located in Switzerland.
These clubs collectively served approximately 549,000 members as of
June 30, 2017.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170727006245/en/
Town Sports International Holdings,
Inc.Investors:917-765-9974Investor.relations@town-sports.com
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