Town Sports International Holdings Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company has reported operating income of $1,444,000, loss before provision for corporate income taxes of $3,489,000 and net loss of $1,485,000 or $0.07 per diluted share on total revenue of $120,449,000 compared to operating income of $11,581,000, income before provision for corporate income taxes of $6,508,000 and net income of $3,840,000 or $0.14 per diluted share on total revenue of $128,109,000 for the same period last year. For the nine months, the company has reported operating income of $15,554,000, income before provision for corporate income taxes of $1,064,000 and net income of $1,678,000 or $0.07 per diluted share on total revenue of $371,070,000 compared to operating income of $42,128,000, income before provision for corporate income taxes of $26,190,000 and net income of $15,452,000 or $0.58 per diluted share on total revenue of $383,822,000 for the same period last year. Net cash provided by operating activities were $58,782,000 against $76,323,000 capital expenditures were $39,805,000 against $63,162,000 reported last year. Revenue for fourth quarter of 2009 is expected to be between $112.5 million and $114.5 million versus $122.9 million for fourth quarter of 2008. The company expects a net loss for fourth quarter of 2009 of between $1.8 million and $2.3 million, and loss per share to be in the range of $0.08 per share to $0.10 per share, assuming a 50% effective tax rate and 22.6 million weighted average fully diluted shares outstanding. For the full-year 2009, the company estimate to invest approximately $53.0 million in capital expenditures. This amount includes approximately $16.3 million of capital expenditures primarily related to clubs opened in the second half of 2008 and 2009, $23.4 million to continue to upgrade existing clubs, $8.8 million to support and enhance management information systems, and $4.5 million for the completion of a new regional laundry facility and corporate office in company's New York Sports Clubs market. For the year 2010 total capital expenditures are expected to be between $36.0 million and $44.0 million and currently company expect to open one club in 2010. For the quarter, the company reported impairment of fixed assets of $3,473,000 against $839,000 reported in the same period last year. For the nine months the same was $4,604,000 against $1,981,000 reported last year.

Town Sports International Holdings Inc. provided cash flow guidance for the fiscal year 2010. For the period, the company expects cash flow to be better by about $1.5 million.

Town Sports International Holdings Inc., Q3 2009 Earnings Call, Oct 28 2009