Wednesday
Jan262011

IHRSA Quarterly Index Records Strong Performance for the Second Consecutive Quarter

BOSTON - January 26, 2011 - The International Health, Racquet & Sportsclub Association (IHRSA) announced today the release of the IHRSA 2010 Third Quarter Index, which reports the financial performance of a sample of the commercial health club industry for the months of July through September. According to survey results of 17 leading U.S. health and sports club companies, representing a total of 499 facilities, leading clubs posted strong revenue performance and favorable expense management.
 
"Participating commercial health clubs indicated excellent performance for the second and third quarters of 2010, signifying a positive industry outlook," said Jay Ablondi, IHRSA's Executive Vice President of Global Products. "As the third quarter Index results demonstrate, clubs with strong leadership are resilient and prepared to withstand challenging business and economic conditions."
 
For the quarter ending October 31, 2010 relative to October 31, 2009, commercial health clubs posted strong results in total revenue, membership/dues revenue, non-dues revenue, and EBITDAR. This marks the second consecutive quarter of improved performance. Total revenue improved by 3.4%, while membership dues revenue increased by 1.9%. Participating clubs also showed improvements in non-dues revenue and EBITDAR. Revenue from ancillary services increased by 7.0%, and EBITDAR improved by 6.8%.

Performance was also robust among same-store facilities. Same-store sales revenue improved by 1.8%, while membership dues revenue increased by 1.6% and non-dues revenue grew by 2.3%.

"Club performance saw an overall improvement over the summer months," said Melissa Rodriguez, IHRSA's Research Manager. "During a time when club usage typically dwindles, responding clubs managed to improve not only membership dues revenue, but also the number of membership accounts."
 
Total membership accounts increased by 4.2% during the third quarter. Same-store total membership accounts also recorded an improvement of 1.4%.

(Please refer to the table at the end of the press release) Note: Data reflects information for 17 leading U.S. health and sports club companies representing 499 facilities. Same-store revenue data reflects clubs that have been in operation for at least two years. Participating companies reported owning/managing an average of 29 facilities (same-store count average of 16 facilities). Data is intended to provide a snapshot of U.S. health club industry performance. However, the results are based on a small sample of companies and care should be taken when making comparisons of these findings to the overall industry-at-large. Industry Insights, Inc. conducted the survey for IHRSA.

EBITDAR: Earnings before interest, taxes, depreciation, amortization and rent.

The "% Change" reflects the percentage change from one quarter to the next in the group's overall mean/average for each variable, and is essentially weighted by the size of companies responding to the survey. As such, the "% Change" presents an indication of the broader group's performance. The "Co. % Change" reflects the median/midpoint percentage change reported by the 17 individual companies. As such, the "Co. % Change" represents the "typical" company's performance where all the participants are weighted equally, regardless of size.

Survey results for the quarter ending October 31, 2010 compared to results from the quarter ending October 31, 2009:
 
Company Analysis
 
Mean
Median
Percent Change (mean)
Company Percent Change (median)
Total Company Revenue
$33 million
$7.3 million
6.4%
3.4%
Total Membership/Dues Revenue
$23.6 million
$4.9 million
3.5%
1.9%
Total Non-Dues Revenue
$8.9 million
$2.1 million
11.7%
7.0%
EBITDAR
$12.3 million
$1.8 million
5.6%
6.8%

To access results online, log on to the IHRSA Research Portal at ihrsa.org/research.

Contact IHRSA Research at research@ihrsa.org or +1-617-951-0055 with questions or for more information. 
 
About IHRSA
 
The International Health, Racquet & Sportsclub Association (IHRSA) is the trade association representing health and fitness facilities, gyms, spas, racquet and sports clubs, and suppliers worldwide. IHRSA and its members are dedicated to making the world healthier through regular exercise and fitness promotion. IHRSA and the health club industry will convene in San Francisco, California from March 16-19 for IHRSA's 30th Anniversary International Convention & Trade Show. Find an IHRSA club at healthclubs.com.
 
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