Town Sports Q2 revenue up 9.4 percent
Total revenue for Town Sports International's (Nasdaq: CLUB) second quarter grew 9.4 percent to $119.8 million from $109.5 million in the same period last year, driven by growth in membership revenue and ancillary club revenue.
Membership revenue for the qurater grew 8.8 percent to $96.9 million from $89.1 million in 2006. Ancillary club revenue grew 14.2 percent to $21.2 million versus $18.6 million last year.
Comparable club revenue increased 5.7 percent during the quarter. The company said of this 5.7 percent increase, 2.9 percent was due to an increase in membership, 0.8 percent was due to an increase in price and 2.0 percent was due to an increase in ancillary club revenue and fees and other revenue.
Total operating expenses increased 7.8 percent to $103.4 million in 2007 compared to $95.9 million in 2006. Club operating expenses increased 3.1 percent or $1.1 million to $37.9 million compared to $36.8 million. General and administrative expenses were $9.1 million versus $8.1 million.
Sports Club Company reports 6.5 percent increase in Q2 revenue
Revenues for The Sports Club Company's (Pink Sheets: SCYL) second quarter increased 6.5 percent to $15.7 million compared to $14.7 million for the second quarter in 2006.
After preferred stock dividends of $298,000 and $500,000 for the second quarter ended June 30, 2007 and 2006, respectively, the net loss for the 2007 second quarter was $1.2 million, or $0.06 per diluted share, compared to a net loss of $1.8 million, or $0.09 per diluted share, last year.
The Sports Club Company, based in Los Angeles, Calif., operates and owns luxury sports and fitness complexes nationwide under the brand name The Sports Club/LA.
Everlast settles lawsuit with Hidary Group
Everlast Worldwide (Nasdaq: EVST) said it settled a lawsuit with Hidary Group Acquisitions, which had sought to block Everlast's merger with Brands Holdings Ltd.
The settlement agreement calls for dismissal, with prejudice, of Hidary's lawsuit, while Everlast will limit discovery it takes from Hidary in connection with certain stockholder litigation.
Pursuant to the terms of the merger agreement, Everlast's board remains free to consider unsolicited acquisition proposals. Additionally, as Everlast has previously disclosed, there is no agreement between Everlast and Hidary that would prohibit Hidary from commencing a non-coercive tender offer for Everlast's shares.
Big 5 Q2 profit falls
Big 5 Sporting Goods' (Nasdaq: BGFV) fiscal second-quarter earnings fell 20 percent as sales at established stores fell slightly for the first time in more than 11 years.
Quarterly net income fell to $5.9 million, or $0.26 per share, from $7.4 million, or $0.33 per share in the year-ago period. Revenue rose 3 percent to $217.8 million from $211.8 million last year. Same-store sales edged down 0.2 percent during the quarter.
The company said footwear and apparel category sales were down while sales of other products rose.
Additionally, the company said third-quarter sales are being hurt by a "challenging" retail environment and unfavorable weather on the West Coast. It expects earnings between $0.27 and $0.35 per share for the quarter. And, it anticipates same-store sales growth to be in the negative low single digits to the positive low single digits.
For fiscal 2007, the company expects earnings between $1.22 to $1.42 per share. The company expects same-store sales growth in the same range as the third quarter.
Sport Chalet reports Q1 '08 net loss
Sport Chalet (Nasdaq: SPCHA and SPCHB) posted a first-quarter net loss, saying it reflected a more challenging sales environment given current economic concerns as well as the ramp up of its new stores
Net loss for the first quarter was $664,000, or $0.05 per diluted share, compared to net income of $530,000, $0.04 per diluted share, for the same period of fiscal 2007.
Sales increased $7.1 million, or 8.5 percent, to $91.6 million for the first quarter of fiscal 2008 from $84.4 million for the same period last year. Sales from seven new stores opened in the last year contributed $7.9 million in sales on a same day basis. Same-store sales increased 1.3 percent compared to the first quarter of fiscal 2007.
Gross profit as a percent of sales decreased 70 basis points to 28.6 percent from 29.3 percent in the first quarter of last year.
Bankruptcy court OKs 'first day' motions for Bally
Bally Total Fitness (Pink Sheets: BFTH), which has filed for bankruptcy protection, said it received a favorable U.S. bankruptcy court ruling allowing it to continue operating its business.
The ruling permits Bally to pay vendors' general unsecured claims in the ordinary course of business and continued use of the company's existing cash management system and maintenance of its bank accounts, it said.
Under Armour Q2 net income rises
Under Armour's (NYSE: UA) net income more than doubled, helped by higher sales of apparel and footwear.
Quarterly earnings rose to $5.7 million, or $0.11 per share, from $2.4 million, or $0.05 per share during the same period a year ago. A weaker dollar helped earnings by a penny per share. Revenue rose 51 percent to $120.5 million from $80 million last year.
Apparel revenue rose 53 percent, with growth across the men's, women's and youth sectors. Footwear revenue grew 29 percent on higher sales of football cleats.
For the year, the company now expects revenue between $580 million and $590 million, from previous guidance of revenue between $560 million and $580 million.
Long term, the company continued to expect growth between 20 percent and 25 percent for earnings and revenue.
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