Town Sports International Holdings, Inc. Appoints Gregory Bartoli as Chief Operating Officer Effective August 19, 2015
Aug 18 15
Town Sports International Holdings Inc. announced the appointment of Gregory Bartoli as chief operating officer of the company, effective August 19, 2015. Mr. Bartoli brings a number of years of progressive experience in both financial and entrepreneurial leadership roles. From 2007 to 2013, Mr. Bartoli worked in the investment banking division at JPMorgan, and served as a managing director of the Interest Rate Trading Group from 2009 to 2013. Prior to that time, Mr. Bartoli worked at HSBC Securities as the Co-Head of North America Interest Rate Trading and at Credit Suisse First Boston. Since 2013, Mr. Bartoli has served as Founder and resident of J.E.M. Partners LLC. Mr. Bartoli has been providing advisory services to the company as an outside consultant.
Town Sports International Holdings Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Capital Expenditures Guidance for the Year 2015; Reports Impairment Charges for the Second Quarter of 2015
Jul 30 15
Town Sports International Holdings Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported revenues of $108,296,000 compared to $115,697,000 a year ago. Operating loss was $41,451,000 compared to operating income of $2,068,000 a year ago. Loss before benefit for corporate income taxes was $46,060,000 compared to $1,990,000 a year ago. Net loss was $31,068,000 or $1.26 per basic and diluted share compared to $919,000 or $0.04 per basic and diluted share a year ago. Adjusted EBITDA was $5,478,000 compared to $15,450,000 a year ago. Total revenue decreased $7.4 million, or 6.4%, compared to second quarter of 2014, primarily due to existing members downgrading their memberships to those with lower monthly dues and new members enrolling at lower rates, both as a result of the new HVLP strategy.
For the six months period, the company reported revenues of $219,720,000 compared to $231,600,000 a year ago. Operating loss was $49,392,000 compared to $36,000 a year ago. Loss before benefit for corporate income taxes was $58,560,000 compared to $8,204,000 a year ago. Net loss was $43,832,000 or $1.79 per basic and diluted share compared to $4,434,000 or $0.18 per basic and diluted share a year ago. Net cash provided by operating activities was $24,308,000 compared to $24,231,000 a year ago. Capital expenditures were $16,793,000 compared to $16,188,000 a year ago. As of June 30, 2015, cash position was $98.4 million (approximately $41.2 million of which was held at the holding company) for a net debt level of $208.4 million compared to a net debt level of $214.8 million as of December 31, 2014.
For the year ending December 31, 2015, the company currently plans to invest $30.0 million to $34.0 million in capital expenditures. This amount includes approximately $9.0 million to $10.0 million related to planned 2015 openings, including one club and two BFX Studio locations that opened in the six months ended June 30, 2015, and one future BFX Studio location. Total capital expenditures also includes approximately $13.0 million to $15.0 million to continue enhancing or upgrading existing clubs and approximately $5.0 million to $6.0 million principally related to major renovations at certain clubs.
The company reported impairment of fixed assets of $1,014,000 for the second quarter of 2015 compared to $890,000 a year ago. The company also reported impairment of goodwill of $31,558,000 for the second quarter of 2015 compared to nil a year ago.
David M. Kastin to Resign as Senior Vice President-General Counsel and Corporate Secretary of Town Sports International Holdings, Inc., Effective August 7, 2015
Jul 22 15
On July 16, 2015, David M. Kastin, Senior Vice President-General Counsel and Corporate Secretary of Town Sports International Holdings Inc., notified the company that he was resigning from the company, effective August 7, 2015.
Town Sports International Holdings, Inc. Announces Management Changes
Jun 18 15
Town Sports International Holdings Inc. announced that the company’s President and Chief Executive Officer Dan Gallagher is leaving the company, effective June 19, 2015. Patrick Walsh, Chairman of the board of directors, will serve as Executive Chairman while the board conducts a search for Mr. Gallagher’s successor.