Town Sports International Holdings, Inc. (CLUB) saw its loss narrow to $2.94 million, or $0.11 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $6.92 million, or $0.28 a share. Revenue during the quarter went down marginally by 2.23 percent to $99.08 million from $101.34 million in the previous year period. Operating margin for the quarter stood at negative 0.12 percent as compared to a negative 3.67 percent for the previous year period.
Operating loss for the quarter was $0.12 million, compared with an operating loss of $3.72 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.75 million compared with $7.94 million in the prior year period. At the same time, adjusted EBITDA margin improved 301 basis points in the quarter to 10.85 percent from 7.84 percent in the last year period.
Patrick Walsh, chairman and chief executive officer of TSI, commented: "We continue to experience Adjusted EBITDA growth compared to the prior year and our comparable club revenue turned positive for the first time since 2012 with a 0.7% increase. Additionally, we are excited to open the Company’s new flagship location at Astor Place in New York City in May and continue to look for other acquisition opportunities."
Working capital turns negative
Working capital of Town Sports International Holdings, Inc. has turned negative to $0.62 million on Mar. 31, 2017 from positive $19.76 million on Mar. 31, 2016. Current ratio was at 0.99 as on Mar. 31, 2017, down from 1.23 on Mar. 31, 2016. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Debt comes down
Town Sports International Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $246.02 million as on Mar. 31, 2017, down 22.37 percent or $70.88 million from $316.91 million on Mar. 31, 2016. Total debt was 102.82 percent of total assets as on Mar. 31, 2017, compared with 105.48 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
