Town Sports International Holdings Inc. (TSI), New York, reported 2016 year-end revenue of $396.9 million and fourth quarter 2016 revenue of $96.1 million, according to financials released by the company Thursday

The year-end revenue was a drop of $27.4 million from 2015 year-end revenue, and fourth quarter revenue was $4.7 million less compared to the same period in 2015. This marks the fifth-straight year TSI has reported a decline in revenue. Year-end net income also was down for the year, totaling $8 million in 2016 versus $21.2 million in 2015. Adjusted EBITDA was $40.9 million in 2016, an increase of 41.7 percent compared to adjusted EBITDA of $28.8 million in 2015.   

Town Sports International operated 150 fitness clubs as of Dec. 31, 2016, comprising 102 New York Sports Clubs, 28 Boston Sports Clubs, 12 Washington Sports Clubs (one of which is partly owned), five Philadelphia Sports Clubs and three clubs located in Switzerland.

"2016 was an extraordinary year for our company,” Chairman and CEO Patrick Walsh said in the earnings statement. “I want to thank the 7,500 plus TSI team members that delivered exceptional results this past year. … The company's improvement in profitability is a material achievement given the margin pressure from declining revenues. The annual chairman's letter will be released on February 27, 2017, and posted on the company's website and will provide further commentary on the business."

To explain the overall revenue decrease, executives cited a 2.8 percent decrease in membership revenue and a 12.7 percent decrease in personal training revenue. They also noted that revenue decreased by approximately $3.2 million at closed club locations and by $2.3 million at clubs operating longer than two years.

TSI’s member count dropped by 1,000 in the fourth quarter, compared to an increase of 9,000 members in fourth quarter 2015. Total member count increased by 3,000 for the year, totaling 544,000. However, this is following a member increase of 64,000 in 2015, which executives attributed to the rollout of its lower pricing model.

The company’s total cash and total debt at the end of 2016 was $45.6 million and $202 million, respectively. This compares to $76.2 million and $275.4 million in 2015. The drop, executives said, was due to long-term debt purchases.

TSI underwent a series of shakeups in 2016. In September, Patrick Walsh was appointed CEO in addition to assuming chief operating officer responsibilities. In November, the company announced a brand makeover that would update its facilities, website and digital app.

TSI ranked No. 6 on this year’s Club Industry 2016 Top 100 Health Clubs list, even though it was the only non-hospital-based facility to report a revenue decrease in 2015.

TSI (NASDAQ: CLUB) closed last Friday at $3.15 per share. Its stock price is trading in a 52-week range between $1.09 and $3.25.