TSI increases revenues 3rd Q by 13 percent

Town Sports International (TSI) has announced revenues for the quarter ended Sept. 30, 2002, of $81.8 million, an increase of $9.4 million, or 13 percent over the same quarter of 2001. During the quarter, TSI’s mature clubs (those in operation for 24 months or longer) experienced revenue growth of 3.3 percent over the prior year’s quarter. The gains are attributable to increased membership and dues. “TSI continues to focus on being the top-of-the-mind fitness provider in each of the four metropolitan regions we serve. We will endeavor to strengthen our existing clusters of clubs, while incorporating a cautious view to our company liquidity,” said CEO Bob Giardina. Operating income for the quarter was $8.6 million compared to $7.1 million in the third quarter of 2001, while net interest expense increased to $4.1 million from $3.6 million. “We continue to be encouraged that we are able to post mature club revenue increases given the underlying economic climate that we are experiencing in our markets,” said Richard Pyle, CFO of TSI. TSI operates 128 health clubs in major cities from Washington, D.C., north through New England.