Town Sports International Holdings, Inc. swings to Q2 profit
Shares of Town Sports International Holdings, Inc. (Nasdaq: CLUB) got a jolt this morning after the company reported it swung to a profit late Thursday night.
For the three months ended June 30, the New York City-based company posted net income of $6.4 million, or $0.24 per share, compared with a loss of $2.7 million, or $0.13 per share, a year earlier. The company’s earnings outpaced analysts’ expectations of $0.21 per share.
Second-quarter revenue was $119.8 million, which met Wall Street expectations.
The company attributed revenue growth to boosted health club membership. For the second quarter, Town Sports’ membership revenue increased 8.8% to $96.9 million, from $89.1 million during the same period of 2006.
Town Sports projects full year net income in the range of $13.7 million to $14.7 million and earnings between $0.51 and $0.55 per share. Revenue for 2007 is expected to be in the range of $475 million to $480 million.
In pre-market trading, shares of the small-cap company soared $1.66, or 10.17%, at $17.99. Over the last 52 weeks, shares have fluctuated between $11.87 and $24.
