Exhibit 99.1
TOWN SPORTS INTERNATIONAL HOLDINGS, INC.
REPORTS 2017 FOURTH QUARTER AND FULL-YEAR RESULTS

New York, NY - February 28, 2018 - Town Sports International Holdings, Inc. (“TSI”) (NASDAQ: CLUB) today reported results for the fourth quarter and full-year of 2017.
TSI’s earnings for the fourth quarter and full-year of 2017 are summarized below. To become fully apprised of our results, shareholders are urged to read our Form 10-K for the full-year ended December 31, 2017 posted at https://www.townsportsinternational.com. The limited information that follows in this press release is not adequate for making informed investment decisions. The unaudited condensed consolidated Statements of Operations are included below.
Dollar amounts in this release are in thousands, except for share and per share amounts. Amounts are unaudited.
Condensed Consolidated Statements of Operations
 
Fourth Quarter
 
Full-Year
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Club operations
$
104,081

 
$
94,502

 
$
397,166

 
$
390,560

Fees and other
1,247

 
1,605

 
5,876

 
6,361

 
105,328

 
96,107

 
403,042

 
396,921

Operating Expenses:
 
 
 
 
 
 
 
Payroll and related
34,097

 
33,827

 
145,612

 
149,029

Club operating
45,174

 
44,739

 
180,467

 
185,104

General and administrative
5,601

 
5,486

 
22,680

 
24,702

Depreciation and amortization
10,650

 
10,630

 
40,849

 
43,727

Impairment of fixed assets

 

 
6,497

 
742

 
95,522

 
94,682

 
396,105

 
403,304

Operating income (loss)
9,806

 
1,425

 
6,937

 
(6,383
)
Gain on extinguishment of debt

 

 

 
(37,893
)
Interest expense
3,210

 
3,194

 
12,665

 
13,940

Interest income
(42
)
 

 
(78
)
 
(2
)
Equity in the earnings of investees and rental income
(116
)
 
(41
)
 
(333
)
 
(242
)
Income (loss) before (benefit) provision for corporate income taxes
6,754

 
(1,728
)
 
(5,317
)
 
17,814

(Benefit) provision for corporate income taxes
(14,236
)
 
(1,469
)
 
(9,686
)
 
9,771

Net income (loss)
$
20,990

 
$
(259
)
 
$
4,369

 
$
8,043

Earnings (loss) per share:
 
 
 
 
 
 
 
Basic
$
0.78

 
$
(0.01
)
 
$
0.16

 
$
0.31

Diluted
$
0.76

 
$
(0.01
)
 
$
0.16

 
$
0.31

Weighted average number of shares used in calculating earnings (loss) per share:
 
 
 
 
 
 
 
Basic
26,825,605

 
25,809,667

 
26,703,577

 
25,568,371

Diluted
27,462,712

 
25,809,667

 
27,422,833

 
26,074,735






Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
 
Fourth Quarter
 
Full-Year
 
2017
 
2016
 
2017
 
2016
Net income (loss)
$
20,990

 
$
(259
)
 
$
4,369

 
$
8,043

Interest expense, net of interest income
3,168

 
3,194

 
12,587

 
13,938

(Benefit) provision for corporate income taxes
(14,236
)
 
(1,469
)
 
(9,686
)
 
9,771

Depreciation and amortization
10,650

 
10,630

 
40,849

 
43,727

EBITDA
20,572

 
12,096

 
48,119

 
75,479

Impairment of fixed assets

 

 
6,497

 
742

Gain on extinguishment of debt

 

 

 
(37,893
)
Personal training revenue recognized for unused and expired sessions
(3,557
)
 

 
(3,557
)
 

Separation expense related to headcount reductions and former executive officers
606

 
107

 
1,433

 
2,042

Net costs related to closing clubs and other cost-savings initiatives, net of landlord recovery and other
(848
)
 
129

 
(711
)
 
513

Adjusted EBITDA
$
16,773

 
$
12,332

 
$
51,781

 
$
40,883

Non-GAAP Financial Measures - EBITDA and Adjusted EBITDA
EBITDA consists of net income (loss) plus interest expense (net of interest income), provision (benefit) for corporate income taxes, and depreciation and amortization. Adjusted EBITDA is TSI’s EBITDA excluding certain items, such as any fixed asset or goodwill impairments, gain on extinguishment of debt, personal training revenue recognized for unused and expired sessions, separation expense related to headcount reductions and former executive officers, and net costs related to closing clubs and other cost-savings initiatives, net of landlord recovery and other. EBITDA is not a measure of liquidity or financial performance presented in accordance with GAAP. EBITDA, as we define it, may not be identical to similarly titled measures used by some other companies.
EBITDA has material limitations as an analytical tool and should not be considered in isolation or as a substitute for net income (loss), operating income (loss), cash flows from operating activities or other cash flow data prepared in accordance with GAAP. The items excluded from EBITDA, but included in the calculation of reported net income and operating income, are significant and must be considered in performing a comprehensive assessment of our performance.
Investors or prospective investors in TSI regularly request EBITDA as a supplemental analytical measure to, and in conjunction with, our GAAP financial data. We understand that these investors use EBITDA, among other things, to assess our ability to service our existing debt and to incur debt in the future, to evaluate our executive compensation programs, to assess our ability to fund our capital expenditure program, and to gain insight into the manner in which TSI’s management and board of directors analyze our performance. We believe that investors find the inclusion of EBITDA in our press releases to be useful and helpful to them.
Our management and board of directors also use EBITDA as a supplemental measure to our GAAP financial data for purposes broadly similar to those used by investors.
Adjusted EBITDA has similar uses and limitations as EBITDA. We have excluded additional items in the calculation of Adjusted EBITDA because management believes that this metric is useful in making period to period comparisons of our performance. We do not, and investors should not, place undue reliance on EBITDA or Adjusted EBITDA as a measure of our performance.





Forward-Looking Statements
This release may contain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding future financial results and performance, potential club closures, results of cost-savings initiatives, and other statements that are predictive in nature or depend upon or refer to events or conditions, or that include words such as “may,” “should,” or the negative version of these words or other comparable words. Forward-looking statements speak only as of the date when made, and TSI undertakes no obligation to update these statements in light of subsequent events or developments. Actual results may differ materially from anticipated results or outcomes discussed in any forward-looking statement.
About Town Sports International Holdings, Inc.
Town Sports International Holdings, Inc. is a diversified holding company with subsidiaries engaged in a number of business and investment activities. The Company’s largest operating subsidiary has been involved in the fitness industry since 1973 and has grown to become one of the largest owners and operators of fitness clubs in the Northeast region of the United States. TSI’s corporate structure provides flexibility to make investments across a broad spectrum of industries in order to create long-term value for shareholders. 
Until further notice, TSI will not be hosting conference calls to discuss quarterly results. TSI intends to continue to issue press releases reporting quarterly earnings.
Investor Contact:
(917) 765-9974
Investor.relations@town-sports.com



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