Town Sports International Holdings, Inc (CLUB) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.26 million, or $ 0.01 a share in the quarter, against a net profit of $87 million, or $3.47 a share in the last year period. Revenue during the quarter dropped 4.69 percent to $96.11 million from $100.84 million in the previous year period. Total expenses were 98.52 percent of quarterly revenues, up from 24.42 percent for the same period last year. That has resulted in a contraction of 7410 basis points in operating margin to 1.48 percent.
Operating income for the quarter was $1.42 million, compared with $76.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.33 million compared with $9.97 million in the prior year period. At the same time, adjusted EBITDA margin improved 294 basis points in the quarter to 12.83 percent from 9.89 percent in the last year period.
Patrick Walsh, Chairman and Chief Executive Officer of TSI, commented: “2016 was an extraordinary year for our Company. I want to thank the 7,500 plus TSI team members that delivered exceptional results this past year. During the fourth quarter, Adjusted EBITDA increased 23.7% from the prior year to $12.3 million. The Company's profitability continued to improve throughout the year with the fourth quarter's Adjusted EBITDA margin increasing to 12.8%. The Company's improvement in profitability is a material achievement given the margin pressure from declining revenues. The annual Chairman's letter will be released on February 27, 2017 and posted on the Company's website and will provide further commentary on the business.”
Working capital turns negative
Working capital of Town Sports International Holdings, Inc has turned negative to $6.32 million on Dec. 31, 2016 from positive $27.95 million on Dec. 31, 2015. Current ratio was at 0.90 as on Dec. 31, 2016, down from 1.39 on Dec. 31, 2015.
Debt comes down significantly
Town Sports International Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $196.82 million as on Dec. 31, 2016, down 26.21 percent or $69.92 million from $266.74 million on Dec. 31, 2015. Total debt was 83.44 percent of total assets as on Dec. 31, 2016, compared with 87.35 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.45 for the quarter from 15.19 for the same period last year. 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
