Town Sports trims Q4 losses; appoints new CEO
Town Sports International Holdings (Nasdaq: CLUB), owner of fitness clubs in New York, Boston, Washington and Philadelphia, said it trimmed its fourth-quarter losses due mainly to the lack of a goodwill impairment charge.
For the quarter ended Dec. 31, it reported a loss of $7.3 million, or $0.33 per share, from a loss of $13.1 million, or $0.51 per share, a year ago.
The company said it did not book a goodwill impairment charge in the fourth quarter, compared to a $17.6 million charge, mainly for its Boston clubs the previous year. However, the company did book a $10.2 million charge for an internal software project that is likely to be canceled, it noted.
Revenue fell 7 percent to $114.3 million from $122.9 million a year ago.
For the full year, the company posted a net loss of $5.7 million, or $0.25 per share, reversing a net profit of $2.3 million, or $0.09 per share, a year earlier. Revenue fell 4 percent to $485.4 million from $506.7 million.
Also, effective March 16, Robert Giardina was elected by the board of directors to replace Alexander Alimanestianu as president and CEO of the company. Alimanestianu will continue to serve as a member of the board of directors.
The board also elected Thomas Galligan to succeed Jason Fish as the chairman of the board of directors.
Giardina previously served as CEO of the company from January 2002 through October 2007. He originally joined TSI in 1981 and served as president and COO from 1992 to 2001.
Strong sales boost Nike's Q3 profit
Nike (NYSE: NKE) said stronger sales helped the company more than double its third-quarter profit.
For the quarter ended Feb. 28, it earned $496 million, or $1.01 per share, versus $244 million, or $0.50 per share, for the same period a year earlier, which it recorded charges tied to its Umbro subsidiary. Adjusting for those items, Nike's profit grew 2 percent.
Revenue grew 7 percent to $4.7 billion, due in part to a boost from beneficial foreign exchange rates, Nike said.
During the third quarter, revenue for North America increased 1 percent to $1.7 billion. Footwear revenues of $1.2 billion were down 1 percent compared to last year, apparel revenues grew 6 percent to $409 million, and equipment revenues increased 8 percent to $85 million. Earnings before interest and taxes (EBIT) for North America improved 4 percent to $402 million.
The company reported that worldwide futures orders for the brand, scheduled for delivery from March through July 2010, total $7.1 billion, 9 percent higher than orders reported for the same period last year. Excluding currency changes, orders would have increased 6 percent.
Garmin to move incorporation to Switzerland
Garmin (Nasdaq: GRMN) said its board of directors approved a move of incorporation from the Cayman Islands to Switzerland. The company will ask shareholders to vote in favor of the proposed change on May 20.
Garmin follows a number of other companies that are moving out of Caribbean offshore financial havens.
Garmin said its footprint in Europe has "grown considerably" in recent years.
"The Swiss office will provide a base for expansion of certain corporate functions in Europe and a more favorable structure from which it would be possible to acquire or partner with European businesses," said Min Kao, chairman and CEO, in a statement.
If passed, the company expects the move to be effective on June 27.
Separately, Garmin also approved an annual cash dividend of $1.50, a one-time increase from $0.75. The dividend is payable to shareholders of record on April 15 and will be paid on April 30.
--Compiled by Wendy Geister
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