New York — Town Sports International (TSI) saw substantial growth in the last quarter with a reported 8 percent same-store growth for the quarter ended December 31, 2001. Moreover, for the year ended December 31, 2001, consolidated revenues were at $283.3 million compared to $225.0 million for 2000, up nearly 26 percent.
“It's rewarding that TSI continues its membership growth in a difficult economic environment,” said Mark Smith, chairman of TSI. “I believe fitness offerings remain a strong segment of the economy and that people have shown a desire to continue memberships in their health club.”
Revenues for the three months ended December 31, 2001 were $72.4 million, an increase of $10.6 million, or 17 percent over the same quarter of 2000. During the quarter, TSI's mature clubs (those in operation for 24 months or longer) experienced revenue growth of $4.4 million or 8.4 percent over the prior year's quarter.
“In the fourth quarter we ramped up our marketing efforts and we've seen positive results,” said Richard Pyle, CFO for TSI. “In a time of economic instability and global security concerns, the message from health care professionals that stress and depression might be staved by physical activity serves as a strong endorsement of our product. The public continues to choose a healthy lifestyle.”
The company hopes to continue that growth in 2002 by adding new programming, marketing and other initiatives. One of the first moves to that end has been teaming with the Xercize Corp., a New York-based fitness company, to introduce new programming that capitalizes on the demand for Pilates-based exercise, enhances its benefits, and introduces a new approach to this popular form of exercise.
Aimed at club members rather than dancers, the new programming offers a cross-conditioning system focusing on muscle efficiency through posture and core muscle endurance that includes resistance training, stretching, plyometric jumps, and progressive class formats, according to the Xercise Corp.
“Our Group Exclusives are consistently booked and our waiting lists are full,” stated Gerard Calvo, director of program development for TSI. “The program has been a huge success. Our members are serious about fitness, and this is a serious program.”
The new Floorwork programming, to be launched in early 2002 incorporates the use of an IM=X Ring, a small, lightweight, resilient hoop that provides resistance for strength development. The Ring is used to strengthen the arms, shoulders, back, legs and hips. The program provides strength and flexibility benefits for the entire body, with particular emphasis on the spine stabilization system, or “core” abdominal and back muscles.
“We are using the ring in new ways never seen before in Pilates-based exercise,” said McNergney. “Our programs are unique and aggressive, designed to help members get the results they are looking for which encourages retention, referrals, and financial success for the clubs.”