Town Sports International Holdings Inc. (TSI), New York, reported a revenue decrease of $5.3 million in third quarter 2016 compared to third quarter 2015, according to financials released by the company Wednesday.

Revenue in third quarter 2016 was $98.5 million compared to $103.8 million in third quarter 2015, a 5.1 percent decrease.

Despite the revenue loss, the company reported an improvement in its net loss ($5.5 million in third quarter 2016 compared to $22 million in third quarter 2015) and adjusted EBITDA ($11 million in third quarter 2016, an increase of 68.5 percent compared to adjusted EBITDA of $6.6 million in third quarter 2015).

"The turnaround in Town Sports' operations has led to a material improvement in the company's profitability," Patrick Walsh, chairman and CEO of TSI, said in the media release. "We continue to focus on improving the member experience through club remodels, which include new state-of-the-art equipment, specialized programming and an updated visual aesthetic. In addition, we recently launched new digital tools which include an enhanced and more user-friendly web site and TSI's first ever mobile member app, which will allow members to personalize their club experience."

Revenue decreased approximately $3.8 million at closed club locations and approximately $2.3 million at clubs operating longer than 24 months. These decreases were partially offset by an $831,000 increase in revenue from clubs opened in the last 24 months, according to the media release.

Membership revenue was down 2.5 percent in the quarter compared to third quarter 2015 ($76.2 million compared to $78.2 million) and was down 13.4 percent in personal training revenue ($15.5 million in third quarter 2016 compared to $17.9 million in third quarter 2015).

Membership monthly attrition averaged 4.2 percent per month in third quarter 2016 compared to 4.4 percent per month in the same quarter last year.

Total member count also decreased in the quarter, falling by 6,000 to 545,000 compared to an increase of 14,000 in third quarter 2015. The third quarter 2015 member count increase was associated with the roll out of the lower pricing model, according to the release.

Total operating expenses for Q3 2016 was $101.2 million compared to $123.5 million for Q3 2015. The 2016 and 2015 period included fixed asset impairment charges of $742,000 and $12.4 million, respectively. Excluding these charges, operating expenses decreased $10.6 million primarily reflecting the results of our cost-savings initiatives and club closures in 2015 and 2016; in particular, overhead and club level savings as well as savings in General and administrative expenses.

Total cash and total debt as of Sept.30, 2016, was $48.3 million and $202.5 million, respectively, and total cash and total debt as of Dec. 31, 2015, was $76.2 million and $275.4 million, respectively, resulting in a decrease in total debt of 26.5 percent. The decrease in both total cash and total debt was primarily due to the purchases of long-term debt. In Q2 2016, TSI Holdings purchased a total of $71.1 million principal amount of debt outstanding under the 2013 Senior Credit Facility for $29.8 million, or an average of 42 percent of face value. The purchased debt was transferred to Town Sports International LLC and cancelled upon settlement.

At the end of the third quarter, TSI operated 148 fitness clubs, comprising 101 New York Sports Clubs, 27 Boston Sports Clubs, 12 Washington Sports Clubs (one of which is partly owned), five Philadelphia Sports Clubs, and three clubs located in Switzerland. These clubs collectively served approximately 545,000 members. TSI also owns two BFX Studio locations and has one partly owned club that operates under a different brand name in Washington, D.C.

TSI's stock closed at $2.65 per share. In the past year, the company's stock has not traded higher than $3.90 per share.