Fitness financials: Town Sports posts Q2 revenue increase, plus Big 5, Sports Club, Health Fitness - SNEWS

Fitness financials: Town Sports posts Q2 revenue increase, plus Big 5, Sports Club, Health Fitness

Town Sports posted a Q2 revenue increase, Big 5 Sporting Goods' 2Q profit declined on charges, Sports Club swung to a Q2 loss on a one-time charge, and Health Fitness reported that revenue rose nearly 11 percent for the quarter.
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Town Sports posts Q2 revenue increases

Second-quarter total revenue for Town Sports International Holdings (Nasdaq: CLUB) increased 8 percent driven by growth in membership and personal training revenue.

Revenue for the quarter was $129.4 million versus $119.9 million the year before.

Net income for the quarter was $6.8 million compared to $6.4 million in 2007. Diluted earnings per share increased 8.3 percent to $0.26.

Total operating expenses increased 9.3 percent to $112.9 million compared to 2007. Second-quarter operating margin was 12.7 percent versus 13.7 percent in 2007.

EBITDA for Q2 2008 increased 8.1 percent to $30.9 million from $28.6 million for Q2 2007. EBITDA as a percentage of total revenue was 23.9 percent for Q2 2008 and Q2 2007.

Comparable club revenue increased 3.2 percent. Personal training revenues grew 7.9 percent, to $16.7 million. Membership attrition averaged 3.2 percent per month.

Looking forward, Town Sports expects total revenue for 2008 will be in the range of $510.0 million to $520.0 million, representing 8 percent to 10 percent growth over 2007. Net income will be between $21.3 million and $22.3 million. Earnings per share on a fully diluted basis will be between $0.80 and $0.84.

Big 5 Sporting Goods 2Q profit declines on charges

Big 5 Sporting Goods (Nasdaq: BGFV) reported a two-thirds drop in its second-quarter profit compared to the year before.

Its quarterly profit declined to $1.7 million, or $0.08 per share, from $5.9 million, or $0.26 per share, in the year-ago period. Results in the most recent quarter included $0.04 in charges.

Sales fell 4 percent to $209 million from $217.8 million.

Same-store sales declined 7.6 percent for the second quarter. The company said the drop was primarily due to a mid-single digit decrease in customer traffic and continued weakness in the roller shoe product category, which accounted for approximately 140 basis points of the same store sales decline during the second quarter.

Gross profit for the fiscal 2008 second quarter was $68.4 million, compared to $74.8 million in the second quarter of the prior year. The company's gross profit margin was 32.7 percent in the fiscal 2008 second quarter versus 34.3 percent in the second quarter of the prior year.

"Given the challenging sales environment, we are pleased with our second-quarter earnings results, which came in at the high end of our expectations on an operational basis, but were impacted by the one-time charge relating to lease accounting," said Steven G. Miller, Big 5 president and CEO, in a statement.

The company's board of directors declared a quarterly cash dividend of $0.09 per share of outstanding common stock, which will be paid on Sept. 15 to stockholders of record as of Aug. 29.

During the quarter, the company repurchased 210,474 shares of its common stock for a total expenditure of $1.7 million.

For the third quarter, the company anticipates a decline in same-store sales in the mid-single digit range and earnings per diluted share in the range of $0.14 to $0.20.

For the full year, it anticipates a decline in same-store sales in the mid-single digit range and earnings per diluted share in the range of $0.60 to $0.80.



Sports Club swings to Q2 loss on one-time charge


The Sports Club Company (Pink Sheets: SCYL.PK) reported a 4.1 percent increase in second-quarter revenue.

For the quarter ended June 30, revenues from operations were $16.3 million compared to $15.7 million in 2007.

The net loss for the quarter was $969,000 and included a one-time charge of $1.12 million for the impairment of certain real estate holdings that were being leased to an outside third party. Without the charge, it would have had a net income of $154,000.

The net loss attributable to common stockholders for the second quarter was $1.267 million, or $0.06 per basic and diluted share, compared to a net loss of $1.272 million, or $0.06 per basic and diluted share, the year before.

The weighted average number of basic and diluted shares outstanding for quarter was 21.4 million shares compared to 20.5 million shares for the 2007 second quarter.



Health Fitness revenue up nearly 11 percent for quarter


For the second quarter, Health Fitness Corp. (OTC Bulletin Board: HFIT) reported revenue increased 10.8 percent to $18.8 million, from $17.0 million for the same period in 2007.

Gross profit during the quarter rose to $5.5 million, from $4.8 million during the prior-year period. Operating income totaled $0.64 million for the quarter compared to $0.38 million for the same period in 2007.

Net earnings were $0.36 million, or $0.02 per diluted share, versus $0.17 million, or $0.01 per diluted share, in the prior-year period.

Operating expenses as a percent of revenue were 26 percent, essentially even with the same period last year. The company anticipates that operating expenses, as a percent of revenue, will decline as it achieves additional revenue growth and productivity enhancements.



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