Town Sports International Holdings, Inc. Announces First Quarter 2014 Financial Results

  Town Sports International Holdings, Inc. Announces First Quarter 2014
  Financial Results

Business Wire

NEW YORK -- April 29, 2014

Town Sports International Holdings, Inc. (“TSI” or the “Company”)
(NASDAQ:CLUB), a leading owner and operator of health clubs located primarily
in major cities from Washington, DC north through New England, operating under
the brand names “New York Sports Clubs,” “Boston Sports Clubs,” “Washington
Sports Clubs” and “Philadelphia Sports Clubs,” announced its results for the
first quarter ended March 31, 2014.

First Quarter Overview:

  *Total member count decreased 1,000 members, to 496,000 members at the end
    of Q1 2014 versus an increase of 2,000 in Q1 2013.
  *Membership attrition averaged 3.5% per month in both Q1 2014 and Q1 2013.
  *Revenue decreased 2.7% in Q1 2014 compared to Q1 2013.
  *Comparable club revenue decreased 4.7% in Q1 2014 compared to a decrease
    of 2.4% in Q1 2013.
  *Ancillary club revenue decreased 4.0% in Q1 2014 compared to Q1 2013.
  *Personal training revenue increased 2.9% in Q1 2014 compared to Q1 2013
    and represented 14.6% of total revenue in Q1 2014 as compared to 13.8% in
    Q1 2013.
  *Net loss was $3.5 million in Q1 2014 compared to net income of $4.2
    million in Q1 2013. Loss per share was $0.15 in Q1 2014 compared to
    earnings per share of $0.18 in Q1 2013. Q1 2014 results included the
    following items:

       *Q1 2014 results were impacted by a $2.1 million, or $0.09 net loss
         per share, related to fixed asset impairment charges in connection
         with three underperforming clubs and goodwill impairment charges
         related to one outlier club.

  *Adjusted EBITDA was $14.1 million in Q1 2014, a decrease of $10.2 million,
    or 42.0%, when compared to Adjusted EBITDA of $24.2 million in Q1 2013
    (Refer to the reconciliation below).
  *Following the end of the quarter, the Company declared a cash dividend of
    $0.16 per share payable on June5, 2014 to shareholders of record at the
    close of business on May 22, 2014. The aggregate amount to be paid will be
    approximately $3.9 million, based on shares outstanding as of April 24,
    2014.
  *In December 2013, the Company entered into an agreement to sell its
    property located at 151 East 86th Street, New York to an affiliate of
    Stillman Development International, LLC for a price of $82.0 million,
    subject to certain adjustments. Subject to various closing conditions, the
    Company expects the transaction to be completed on or before July 14,
    2014.

Robert Giardina, Chief Executive Officer of TSI, commented:“Our first quarter
results reflect some of the near-term challenges we are facing on the
membership front combined with higher than planned operating expenses driven
in large part by unusually cold winter weather in the Northeast. However, the
longer-term combination of an increased consumer focus on fitness and health
and our initiatives to capture share of this expanding market keeps us
excited, motivated, and optimistic about our medium to long-term growth plans.
We will continue to aggressively pursue our strategic initiates in order to be
well-positioned for the opportunities we see ahead.”


First Quarter Ended March 31, 2014 Financial Results:
                                                         
Revenue (in thousands):
                                                                             
                Quarter Ended March 31,
                2014                      2013
                Revenue       %           Revenue       %           %
                              Revenue                   Revenue     Variance
Membership      $ 88,636      76.5  %     $ 90,742      76.1  %     (2.3)    %
dues
Joining          3,209       2.8   %      3,825       3.2   %     (16.1)   %
fees
Membership       91,845      79.3  %      94,567      79.3  %     (2.9)    %
revenue
Personal
training          16,910      14.6  %       16,430      13.8  %     2.9      %
revenue
Other
ancillary        5,725       4.9   %      7,138       6.0   %     (19.8)   %
club
revenue
Ancillary
club              22,635      19.5  %       23,568      19.8  %     (4.0)    %
revenue
Fees and
other            1,423       1.2   %      1,029       0.9   %     38.3     %
revenue
Total           $ 115,903     100.0 %     $ 119,164     100.0 %     (2.7)    %
revenue
                                                                             

Total revenue for Q1 2014 decreased $3.3 million, or 2.7% compared to Q1 2013.
Revenue at clubs operated for over 12 months (“comparable club revenue”)
decreased 4.7% in Q1 2014, reflecting a 2.7% decrease in membership, a 1.7%
decrease in the combined effect of ancillary club revenue, joining fees and
other revenue as well as a 0.3% decrease in the price of our dues and other
fees.


Operating expenses:
                                Quarter Ended March 31,  
                                  2014          2013        Expense %
                                  Expense % of Revenue        Variance
Payroll and related               38.5   %        37.4  %     0.1    %
Club operating                    42.8   %        37.1  %     12.2   %
General and administrative        7.1    %        5.7   %     22.0   %
Depreciation and amortization     10.2   %        10.2  %     (2.9)  %
Impairment of fixed assets        3.1    %        -     %     N/A
Impairment of goodwill            0.1    %        -     %     N/A
Operating expenses                101.8  %        90.4  %     9.6    %
                                                                     

Total operating expenses increased $10.3 million, or 9.6%, in Q1 2014 compared
to Q1 2013. Operating margin was (1.8)% for Q1 2014 compared to 9.6% in Q1
2013. The total months of club operation increased 2.8% in Q1 2014 at 480
months compared to 467 months in the prior year. The increase in total
operating expenses can also be attributed to the following factors:

Payroll and related. Payroll and related expenses in Q1 2014 was relatively
flat to Q1 2013.

Club operating. Club operating expenses increased $5.4 million, or 12.2% in Q1
2014 compared to Q1 2013, primarily due to increases in rent and occupancy
expenses related to the acquisition of new clubs as well as four additional
clubs scheduled to open in 2014, and increases in utilities expense.

General and administrative. The increase of $1.5 million, or 22.0%, in Q1 2014
compared to Q1 2013 was primarily due to increases in computer maintenance
expenses related to the implementation of our new club operating system and
general liability insurance expense and increases in audit and tax fees. These
increases were offset by a decrease in legal fees and club acquisition related
fees incurred during Q1 2013.

Depreciation and amortization. In Q1 2014 compared to Q1 2013, depreciation
and amortization expense decreased by $350,000, or 2.9%.

Impairment of fixed assets. For Q1 2014, we recorded impairment losses of $3.6
million on fixed assets at three underperforming clubs. We did not have fixed
asset impairments in the three months ended March 31, 2013.

Impairment of goodwill. For Q1 2014, we recorded an impairment loss of
$137,000 on goodwill at one of our outlier clubs as a result of our annual
goodwill impairment test as of February 28, 2014. We did not have goodwill
impairment in Q1 2013.

Net loss for Q1 2014 was $3.5 million compared to net income of $4.2 million
for Q1 2013.

Cash flow from operating activities for Q1 2014 totaled $14.4 million, a
decrease of $7.4 million from Q1 2013, primarily driven by the decrease in
overall earnings.

Second Quarter 2014 Financial Outlook:

Based on the current business environment, recent performance and current
trends in the marketplace and subject to the risks and uncertainties inherent
in forward-looking statements, our outlook for the second quarter of 2014
includes the following:

  *Revenue for Q2 2014 is expected to be between $116.0 million and $117.0
    million versus $120.1 million for Q2 2013. As percentages of revenue, we
    expect Q2 2014 payroll and related expenses to be approximately 38.3% and
    club operating expenses to approximate 41.3%. We expect general and
    administrative expenses to approximate $7.3 million, depreciation and
    amortization to approximate $12.1 million and net interest expense to
    approximate $4.8 million.
  *We expect net results to be breakeven, and diluted earnings per share to
    be approximately $0.00 per share, assuming a 43% effective tax rate and
    approximately 24.7 million weighted average fully diluted shares
    outstanding.
  *We estimate that Adjusted EBITDA will approximate $17.0 million in Q2
    2014.

In addition, over the course of the next quarter, we plan to review our club
portfolio and will likely target approximately 5% of our lower performing
clubs for closure. This will enable us to absorb a portion of these members
into other existing clubs while saving on certain club operating expenses such
as payroll and utilities. We may incur certain charges in connection with
these closings.

Investing Activities Outlook:

For the year ending December31, 2014, we currently plan to invest $45.0
million to $50.0 million in capital expenditures compared to $33.8 million of
capital expenditures in 2013 when including acquisition purchase prices. The
2014 amount includes approximately $20.0 million to $22.0 million related to
potential 2014 and 2015 club openings, including those under our new BFX
Studio concept. Total capital expenditures also includes approximately $18.0
million to $20.0 million to continue enhancing or upgrading existing clubs and
approximately $4.0 million to $4.5 million principally related to major
renovations at clubs with recent lease renewals. We also expect to invest
approximately $3.0 million to $3.2 million to continue to enhance our
management information and communication systems. We expect these capital
expenditures to be funded by cash flow provided by operations and available
cash on hand and, subject to the closing conditions of the sale of the East
86th Street property, the after-tax proceeds from such sale. If such proceeds
are not reinvested in our business, we may be required to use such amounts to
pay down our outstanding debt, as provided under the terms of our 2013 Senior
Credit Facility.

Forward-Looking Statements:

Statements in this release that do not constitute historical facts, including,
without limitation, statements under the captions “Second Quarter 2014
Financial Outlook” and “Investing Activities Outlook”, other statements
regarding future expectations regarding the sale of the property located at
East 86^th Street, New York, future financial results and performance and
potential sales revenue, statements relating to potential club closures and
other statements that are predictive in nature or depend upon or refer to
events or conditions, or that include words such as “outlook,” “believes,”
“expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “intends,” “plans,” “believes,” “estimates” or
“could”, are “forward-looking” statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to various risks and uncertainties,
many of which are outside the Company’s control, including, among others, the
level of market demand for the Company’s services, economic conditions
affecting the Company’s business, the geographic concentration of the
Company’s clubs, competitive pressures, the ability to achieve reductions in
operating costs and to continue to integrate acquisitions, the ability to
close the sale of the property located at East 86^th Street, New York,
environmental initiatives, any security and privacy breaches involving
customer data, the application of Federal and state tax laws and regulations,
the levels and terms of the Company’s indebtedness, and other specific factors
discussed herein and in other releases and public filings made by the Company
(including the Company’s reports on Forms 10-K and 10-Q filed with the
Securities and Exchange Commission). The Company believes that all
forward-looking statements are based on reasonable assumptions when made;
however, the Company cautions that it is impossible to predict actual results
or outcomes or the effects of risks, uncertainties or other factors on
anticipated results or outcomes and that, accordingly, one should not place
undue reliance on these statements. Forward-looking statements speak only as
of the date they were made, and the Company undertakes no obligation to update
these statements in light of subsequent events or developments. Except as
required by law, we have no duty to, and do not intend to, update or revise
the forward looking statements in this presentation after the date of this
presentation. Actual results may differ materially from anticipated results or
outcomes discussed in any forward-looking statement.

About Town Sports International Holdings, Inc.:

New York-based Town Sports International Holdings, Inc. is a leading owner and
operator of fitness clubs in the Northeast and mid-Atlantic regions of the
United States and, through its subsidiaries, operated 162 fitness clubs as of
March 31, 2014, comprising 108 New York Sports Clubs, 29 Boston Sports Clubs,
16 Washington Sports Clubs (two of which are partly-owned), six Philadelphia
Sports Clubs, and three clubs located in Switzerland. These clubs collectively
served approximately 496,000 members. For more information on TSI, visit
http://www.mysportsclubs.com.

The Company will hold a conference call on Tuesday, April 29, 2014 at 4:30 PM
(Eastern) to discuss the first quarter results. Robert Giardina, Chief
Executive Officer, and Dan Gallagher, President, Chief Operating Officer and
Chief Financial Officer, will host the conference call. The conference call
will be Web cast and may be accessed via the Company's Investor Relations
section of its Web site at www.mysportsclubs.com. A replay and transcript of
the call will be available via the Company's Web site beginning April 30,
2014.

From time to time we may use our Web site as a channel of distribution of
material company information. Financial and other material information
regarding the Company is routinely posted on and accessible at
http://www.mysportsclubs.com. In addition, you may automatically receive email
alerts and other information about us by enrolling your email by visiting the
“Email Alerts” section at http://www.mysportsclubs.com.


TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
                                                          
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2014 and December 31, 2013
(All figures in thousands)
(Unaudited)
                                                                
                                                  March 31,     December 31,
                                                  2014          2013
                                                                
ASSETS
Current assets:
Cash and cash equivalents                       $ 76,174      $ 73,598
Accounts receivable, net                          4,164         3,704
Inventory                                         559           473
Deferred tax assets, net                          17,192        17,010
Prepaid corporate income taxes                    31            6
Prepaid expenses and other current assets        9,701        10,850
Total current assets                              107,821       105,641
Fixed assets, net                                 236,259       243,992
Goodwill                                          32,743        32,870
Intangible assets, net                            779           908
Deferred tax assets, net                          14,330        11,340
Deferred membership costs                         8,573         8,725
Other assets                                     10,145       10,316
Total assets                                    $ 410,650     $ 413,792
                                                                
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current portion of long-term debt               $ 3,250       $ 3,250
Accounts payable                                  4,982         8,116
Accrued expenses                                  30,578        31,536
Accrued interest                                  627           737
Dividends payable                                 266           259
Deferred revenue                                 42,019       33,913
Total current liabilities                         81,722        77,811
Long-term debt                                    311,170       311,659
Dividends payable                                 434           407
Deferred lease liabilities                        56,362        56,882
Deferred revenue                                  2,232         2,460
Other liabilities                                8,940        8,089
Total liabilities                                 460,860       457,308
Stockholders’ deficit:
Common stock                                      24            24
Additional paid-in capital                        (13,184)      (13,846)
Accumulated other comprehensive income            2,090         2,052
Accumulated deficit                              (39,140)     (31,746)
Total stockholders’ deficit                      (50,210)     (43,516)
Total liabilities and stockholders’ deficit     $ 410,650     $ 413,792
                                                                


TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
                                                             
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2014 and 2013
(All figures in thousands except share and per share data)
(Unaudited)
                                                                    
                                                 Three Months Ended
                                                 March 31,
                                                 2014             2013
                                                                    
Revenues:
Club operations                                  $ 114,480        $ 118,135
Fees and other                                    1,423           1,029
                                                  115,903         119,164
Operating Expenses:
Payroll and related                                44,573           44,548
Club operating                                     49,595           44,200
General and administrative                         8,281            6,789
Depreciation and amortization                      11,798           12,148
Impairment of fixed assets                         3,623            ―
Impairment of goodwill                            137             ―
                                                  118,007         107,685
Operating (loss) income                            (2,104)          11,479
Interest expense                                   4,711            5,350
Interest income                                    ―                (1)
Equity in the earnings of investees and           (601)           (609)
rental income
Loss (income) before provision for corporate       (6,214)          6,739
income taxes
(Benefit) provision for corporate income          (2,699)         2,508
taxes
Net (loss) income                                $ (3,515)        $ 4,231
                                                                    
(Loss) earnings per share:
Basic                                            $ (0.15)         $ 0.18
Diluted                                          $ (0.15)         $ 0.18
Weighted average number of shares used in
calculating (loss) earnings per share:
Basic                                              24,160,443       23,875,260
Diluted                                            24,160,443       24,172,625
Dividends declared per common share              $ 0.16           $ ―
                                                                    


TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2014 and 2013
(All figures in thousands)
(Unaudited)
                                               Three Months Ended March 31,
                                                  2014            2013
Cash flows from operating activities:
Net (loss) income                                 $  (3,515  )      $ 4,231
Adjustments to reconcile net (loss) income to
net cash provided by operating activities
Depreciation and amortization                        11,798           12,148
Impairment of fixed assets                           3,623            -
Impairment of goodwill                               137              -
Amortization of debt discount                        323              239
Amortization of debt issuance costs                  272              273
Non-cash rental expense, net of non-cash             (645    )        (1,496 )
rental income
Share-based compensation expense                     659              656
(Increase) decrease in deferred tax asset            (3,030  )        3,294
Net change in certain operating assets and           4,187            2,688
liabilities
Decrease in deferred membership costs                152              282
Landlord contributions to tenant improvements        125              -
Increase (decrease) in insurance reserves            166              (491   )
Other                                               146            (57    )
Total adjustments                                   17,913         17,536 
Net cash provided by operating activities           14,398         21,767 
                                                                      
Cash flows from investing activities:
Capital expenditures                                 (7,185  )        (4,581 )
Acquisition of businesses                           -              (504   )
Net cash used in investing activities               (7,185  )       (5,085 )
                                                                      
Cash flows from financing activities:
Principal payments on 2013 Term Loan Facility        (812    )        -
Cash dividends paid                                  (3,845  )        (39    )
Proceeds from stock option exercises                3              13     
Net cash used in financing activities                (4,654  )        (26    )
Effect of exchange rate changes on cash             17             (67    )
Net increase in cash and cash equivalents            2,576            16,589
Cash and cash equivalents beginning of period       73,598         37,758 
Cash and cash equivalents end of period           $  76,174        $ 54,347 
                                                                      
Summary of the change in certain operating
assets and liabilities:
(Increase) decrease in accounts receivable        $  (455    )      $ 2,604
Increase in inventory                                (86     )        (20    )
Decrease in prepaid expenses and other               1,010            1,076
current assets
Decrease in accounts payable, accrued                (4,596  )        (5,062 )
expenses and accrued interest
Change in prepaid corporate income taxes and         208              (828   )
corporate income taxes payable
Increase in deferred revenue                        8,106          4,918  
Net change in certain working capital             $  4,187         $ 2,688  
components
                                                                      


TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
                                                               
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and
Adjusted EBITDA
For the Three Months Ended March 31, 2014 and 2013
(All figures in thousands)
(Unaudited)
                                                Three Months Ended
                                                March 31,
                                                2014                2013
Net cash provided by operating activities       $  14,398           $ 21,767
Interest expense, net of interest income           4,711              5,349
(Benefit) provision for corporate income           (2,699  )          2,508
taxes
Changes in operating assets and liabilities        (4,187  )          (2,688 )
Impairment of fixed assets                         (3,623  )          -
Impairment of goodwill                             (137    )          -
Amortization of debt discount                      (323    )          (239   )
Amortization of debt issuance costs                (272    )          (273   )
Share-based compensation expense                   (659    )          (656   )
Landlord contributions to tenant                   (125    )          -
improvements
Non-cash rental expense, net of non-cash           645                1,496
rental income
(Increase) decrease in insurance reserves          (166    )          491
Increase (decrease) in deferred tax asset          3,030              (3,294 )
Decrease in deferred membership costs              (152    )          (282   )
Other                                             (146    )         57     
EBITDA                                          $  10,295          $ 24,236 
Impairment of fixed assets                         3,623              -
Impairment of goodwill                            137              -      
Adjusted EBITDA                                 $  14,055          $ 24,236 
                                                                             

Note: EBITDA consists of net (loss) income plus interest expense (net of
interest income), (benefit) provision for corporate income taxes, and
depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding
any fixed asset or goodwill impairments. For the quarter ended March 31, 2014,
we incurred a fixed asset impairment charge of $3.6 million related to the
impairment of three underperforming clubs and a goodwill impairment charge of
$137,000 related to one outlier club.


TOWN SPORTS INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
                                                               
Reconciliation of Estimated and Actual Net Cash Provided by Operating
Activities to EBITDA
For the Quarter Ending June 30, 2014 and the Quarter Ended June 30, 2013
(All figures in thousands)
(Unaudited)
                                                  Estimated
                                                  Q2 2014           Q2 2013
Net cash provided by operating activities         $  13,900         $ 22,780
Interest expense, net of interest income             4,800            5,435
Provision for corporate income taxes                 -                4,009
Changes in operating assets and liabilities          (200    )        (1,631 )
Insurance recovery related to damaged                -                2,500
property
Impairment of fixed assets                           -                (128   )
Amortization of debt discount                        (325    )        (239   )
Amortization of debt issuance costs                  (270    )        (272   )
Share-based compensation expense                     (470    )        (467   )
Landlord contribution to tenant                      -                (784   )
improvements
Non-cash rental expense, net of non-cash             400              1,310
rental income
Decrease in insurance reserves                       -                167
Decrease in deferred tax asset                       (125    )        (3,544 )
Decrease in deferred member costs                    (150    )        (843   )
Other                                               (560    )       (241   )
EBITDA                                            $  17,000         $ 28,052
Insurance recovery related to damaged                -                (2,500 )
property
Impairment of fixed assets                          -              128    
Adjusted EBITDA                                   $  17,000        $ 25,680 
                                                                             

Non-GAAP Financial Measures – EBITDA and Adjusted EBITDA

EBITDA consists of net (loss) income plus interest expense (net of interest
income), (benefit) provision for corporate income taxes, and depreciation and
amortization. Adjusted EBITDA, as shown in the periods above, is the Company’s
EBITDA excluding any fixed asset or goodwill impairments, and insurance
recoveries. In other periods, Adjusted EBITDA may also exclude, among other
things, loss on extinguishment of debt and expenses related to the pending
sale of our 86^th Street property. The EBITDA and Adjusted EBITDA calculations
above do not reflect the possible effects of future club closures. EBITDA is
not a measure of liquidity or financial performance presented in accordance
with GAAP. EBITDA, as we define it, may not be identical to similarly titled
measures used by some other companies.

EBITDA has material limitations as an analytical tool and should not be
considered in isolation or as a substitute for cash flows from operating
activities, operating income or other cash flow or income data prepared in
accordance with GAAP. The items excluded from EBITDA, but included in the
calculation of reported net income, are significant components of the
consolidated statements of cash flows and income, and must be considered in
performing a comprehensive assessment of our liquidity.

EBITDA excludes, among other items, the effect of depreciation and
amortization, which is a significant component of our reported GAAP data.
Depreciation and amortization, which is a non-cash item, totaled $11.8million
in the quarter ended March 31, 2014. Although a premise underlying
depreciation and amortization is that it will be reinvested in our business to
restore, replenish or purchase property, equipment and other related assets,
the funds represented by depreciation and amortization could, in the Company’s
discretion, be utilized for other purposes (e.g., debt service). Accordingly,
EBITDA may be useful as a supplemental measure to GAAP financial data for
demonstrating our ability to satisfy our liquidity and capital resource
requirements.

Investors or prospective investors in the Company regularly request EBITDA as
a supplemental analytical measure to, and in conjunction with, our GAAP
financial data. We understand that these investors use EBITDA, among other
things, to assess our ability to service our existing debt and to incur debt
in the future, to evaluate our executive compensation programs, to assess our
ability to fund our capital expenditure program, and to gain insight into the
manner in which the Company’s management and board of directors analyze our
liquidity. We believe that investors find the inclusion of EBITDA in our press
releases to be useful and helpful to them.

Our management and board of directors also use EBITDA as a supplemental
measure to our GAAP financial data for purposes broadly similar to those used
by investors.

The purposes to which EBITDA may be used by investors, and is used by our
management and board of directors, include the following:

      The Company is required to comply with financial covenants and borrowing
 •  limitations that are based on variations of EBITDA as defined in our
      2013 Senior Credit Facility, as amended.
      
      Our discussions with prospective lenders and investors in recent years,
  •   including in relation to our 2013 Senior Credit Facility have confirmed
      the importance of EBITDA in their decision-making processes relating to
      the making of loans to us or investing in our debt securities.
      
  •   The Company uses EBITDA as a key factor in determining annual incentive
      bonuses for executive officers (as discussed in our proxy statement).
      
      The Company considers EBITDA to be a useful supplemental measure to GAAP
      financial data because it indicates our ability to generate funds
  •   sufficient to make capital expenditures (including for the opening of
      new clubs and the upgrading of existing clubs) as well as to undertake
      initiatives to enhance our business by offering new products and
      services in accordance with our strategy.
      
  •   Quarterly, equity analysts who follow our company often report on our
      EBITDA with respect to valuation commentary.

Adjusted EBITDA has similar uses and limitations as EBITDA. We do not, and
investors should not, place undue reliance on EBITDA or Adjusted EBITDA as a
measure of our liquidity.

Contact:

Town Sports International Holdings, Inc., New York
Investors:
212-246-6700 extension 1650
Investor.relations@town-sports.com
or
ICR, Inc.
Joseph Teklits / Farah Soi
203-682-8390
farah.soi@icrinc.com
 
Press spacebar to pause and continue. Press esc to stop.