Profile: Town Sports International Holdings Inc (CLUB.O)
10 Dec 2013
Town Sports International Holdings, Inc. (TSI Holdings),incorporated on January 20, 2004, is the owner and operator of fitness clubs in the Northeast and Mid-Atlantic regions of the United States and the fitness club owner and operator in the United States, in each case based on the number of clubs. As of December 31, 2012, the Company, through its subsidiaries, operated 160 fitness clubs under the Company's four key regional brand names; New York Sports Clubs (NYSC), Boston Sports Clubs (BSC), Philadelphia Sports Clubs (PSC) and Washington Sports Clubs (WSC). As of December 31, 2012, these clubs collectively served approximately 510,000 members, including approximately 38,000 members under the Company's restricted student and teacher membership programs. In May 2013, Town Sports International Holdings Inc acquired the assets from Fitcorp Management Services Inc. In June 2013, Town Sports International Holdings, Inc. announced that the launch of its new Fitcorp Private Fitness Division designed to manage private fitness centers for both and small companies.
The Company owned and operated a total of 108 clubs under the New York Sports Clubs brand name within a 120-mile radius of New York City as of December 31, 2012, including 37 locations in Manhattan where the Company is the fitness club owner and operator. The Company owned and operated 25 clubs in the Boston region under its Boston Sports Clubs brand name, 18 clubs (two of which are partly-owned) in the Washington, D.C. region under its Washington Sports Clubs brand name and six clubs in the Philadelphia region under its Philadelphia Sports Clubs brand name as of December 31, 2012. In addition, the Company owned and operated three clubs in Switzerland as of December 31, 2012.
The Company offers three principal types of memberships in its clubs, Passport, which offers access to all clubs at all times, Core, which offers access to a single home club at all times, and Restricted memberships, which is a favorably priced, restricted month-to-month membership which offers access to a single home club. The Company's fitness-only clubs average approximately 20,000 square feet, while the Company's multi-recreational clubs average approximately 40,000 square feet. The aggregate average size of the Company's clubs is approximately 26,000 square feet. The Company's clubs typically have an open fitness area to accommodate cardiovascular and strength-training equipment, as well as special purpose rooms for group fitness classes and other exercise programs.
The Company seeks to provide a broad array of exercise programs and equipment that is effective, promoting an exercise experience for its members. When developing clubs, the Company carefully examines the potential membership base and the likely demand for supplemental offerings such as swimming, basketball, children's programs, tennis or squash and, provided suitable real estate is available, the Company will add one or more of these offerings to its fitness-only format.
The Company's fitness-only clubs generally range in size from 15,000 to 25,000 square feet and average approximately 20,000 square feet. The Company's multi-recreational clubs generally range in size from 25,000 to 65,000 square feet, with one club being approximately 200,000 square feet. The average multi-recreational club size is approximately 40,000 square feet. Membership for each club generally ranges from 2,000 to 4,500 members at maturity.
As of December 31, 2012, the Company constructed 15 new clubs while closing 16 clubs. It has 51 of the Company's clubs, or approximately 32% of its existing club base, were from acquisitions of privately owned single and multi-club businesses. The Company's facilities include a mix of cardiovascular equipment from some of the manufacturers including Life Fitness, Cybex, Precor, and Star Trac. At certain locations, additional amenities are also offered, including swimming pools, racquet and basketball courts, babysitting services, and pro-shops. Personal training services are offered at all locations for an additional charge. The Company also offers its Xpressline strength workout at all of its clubs which is provided for free to its members.
The Company also provides Small Group Training offerings to its members, which are fee-based programs that have smaller groups, with a maximum of four to eight members per class, and provide more focused and typically more advanced classes. The Company's fee-based offerings also include the Company's newly launched UXF classes, as well as its signature classes, including VBarre and Power Pilates Tower.In addition to group exercise, the Company offers a variety of ancillary programming for children under its Sports Clubs for Kids brand. As of December 31, 2012, Sports Clubs for Kids was being offered in 32 locations throughout the Company's New York Sports Clubs, Boston Sports Clubs and Philadelphia Sports Clubs regions.
The Company competes with Equinox Holdings, Inc., Lifetime Fitness, Inc., Crunch, New York Health and Racquet, LA Fitness International LLC, 24 Hour Fitness Worldwide, Inc., Bally Total Fitness Holding Corporation, Gold's Gym International, Inc., Retro Fitness, Snap Fitness, Anytime Fitness and Planet Fitness
Town Sports International Holdings Inc
5 PENN PLAZA-4TH FLOOR
NEW YORK NY 10001