NEW YORK -- Revenue and membership fell in the second quarter for New York-based Town Sports International (TSI), according to financials released Wednesday by the public company. Net income fell even further.
Revenue decreased 4.2 percent to $123.9 million compared to the same period last year. Comparable club revenue had an even greater decline, falling 6.3 percent compared to second quarter 2008.
Net income for the second quarter of 2009 was $2.5 million compared to a net income of $6.8 million for the same quarter last year. For the six months ended June 30, 2009, net income was $3.2 million compared to $11.6 million for the six months ended June 30, 2008.
Total member count was 503,000, a decrease of 14,000 or 2.7 percent. Membership attrition for the quarter averaged 3.7 percent per month compared to 3.2 percent in second quarter 2008 and 3.6 percent in first quarter 2009.
For second quarter 2009, revenues increased $6.6 million at the 24 clubs opened or acquired subsequent to June 30, 2007, offset by decreases in revenue of 8.6 percent or $10.2 million at TSI clubs opened or acquired prior to June 30, 2007, and $1.9 million related to the 10 clubs that TSI closed subsequent to June 30, 2007.
In a statement from the company, Alex Alimanestianu, TSI’s CEO, said: “We have made excellent progress during the first half of the year on key club operating initiatives that are meaningfully improving our customer experience and helping us to retain members during this recession. The challenge remains in recruiting new members and in maintaining historical levels of personal training revenue while consumer spending remains soft. As we confront these challenges, we will also maintain our focus on controlling expenses and capital spending as well as on preserving our liquidity position, and we are pleased that the recent amendment to our credit agreement gives us more flexibility to operate and invest as planned.”
TSI operates health clubs under the New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs and Washington Sports Clubs names.