Town Sports International Holdings, Inc. (“TSI” or the
“Company”) (NASDAQ:CLUB) today reported results for the first
quarter of 2019.
TSI’s earnings for the first quarter of 2019 are summarized
below. To become fully apprised of our results, shareholders are
urged to read our Form 10-Q for the quarterly period ended
March 31, 2019 posted at https://www.townsportsinternational.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
First Quarter 2019
2018 Revenues: Club operations $ 115,140 $ 105,675
Fees and other 1,458 1,436 116,598 107,111
Operating Expenses: Payroll and related 45,323 39,474
Club operating 53,576 48,364 General and administrative 6,870 5,911
Depreciation and amortization 9,585 9,128 115,354
102,877 Operating income 1,244 4,234 Interest expense
3,452 3,168 Interest income (28 ) (36 ) Equity in the earnings of
investees and rental income (55 ) (105 ) (Loss) income before
provision for corporate income taxes (2,125 ) 1,207 Provision for
corporate income taxes 74 78 Net (loss) income
including non-controlling interests (2,199 ) 1,129 Less: net loss
attributable to non-controlling interests (150 ) — Net
(loss) income attributable to TSI and subsidiaries $ (2,049 ) $
1,129 (Loss) earnings per share: Basic $ (0.08 ) $
0.04 Diluted $ (0.08 ) $ 0.04 Weighted average number of shares
used in calculating (loss) earnings per share: Basic 26,443,946
25,709,031 Diluted 26,443,946 26,316,512
Reconciliation of Net Loss (Income) to
EBITDA and Adjusted EBITDA
First Quarter 2019
2018 Net (loss) income including
non-controlling interests $ (2,199 ) $ 1,129 Less: net loss
attributable to non-controlling interests (150 ) — Net (loss)
income attributable to TSI and subsidiaries (2,049 ) 1,129 Interest
expense, net of interest income 3,424 3,132 Provision for corporate
income taxes 74 78 Depreciation and amortization 9,585 9,128
EBITDA(1) 11,034 13,467 Non-cash deferred base rent(2) 519 — Net
income related to closing clubs and other cost-savings initiatives
(613 ) — Incremental expense related to the adoption of ASC 606(3)
410 276 Adjusted EBITDA(1) $ 11,350 $ 13,743
(1) EBITDA and Adjusted EBITDA for the first quarters of
2019 and 2018 include costs related to acquisitions of $149 and
$405, respectively. (2) On January 1, 2019, the Company
adopted Accounting Standards Codification Topic 842 and all the
related amendments (“ASC 842”). Management believes that excluding
non-cash base rent in Adjusted EBITDA is useful in making period to
period comparisons of the Company’s performance. In the first
quarter of 2018, the non-cash base rent included in EBITDA and
Adjusted EBITDA was income of $856. (3) On January 1, 2018,
the Company adopted FASB Accounting Standards Codification Topic
606 and all the related amendments (“ASC 606”) which requires the
Company to defer costs related to obtaining members and expense
those costs over the estimated membership life. Under previous
guidance, these membership costs were expensed at the time of the
respective sale.
Non-GAAP Financial Measures - EBITDA and Adjusted
EBITDA
EBITDA consists of net income (loss) attributable to TSI and
subsidiaries 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, non-cash
deferred base rent, incremental expense related to the adoption of
ASC 606, as well as net income related to closing clubs and other
cost-savings initiatives. 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) attributable to TSI and subsidiaries, 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
attributable to TSI and subsidiaries 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 a diversified
holding company with subsidiaries engaged in a number of business
and investment activities. The Company’s largest operating
subsidiary has been involved in the fitness industry since 1973 and
has grown to become one of the largest owners and operators of
fitness clubs in the Northeast region of the United States. TSI’s
corporate structure provides flexibility to make investments across
a broad spectrum of industries in order to create long-term value
for shareholders.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190425005936/en/
Investor Contact:(917) 765-9974Investor.relations@town-sports.com
Town Sports (NASDAQ:CLUB)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Town Sports (NASDAQ:CLUB)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024