Thursday
Dec272012

IHRSA Index Posts Increases in Revenue, Membership, and EBITDAR; Same-Store Clubs also Continue Improved Performance 

BOSTON -- December 27, 2012 - The International Health, Racquet & Sportsclub Association (IHRSA) announced results for the IHRSA 2012 Third Quarter Index, which provides a snapshot of performance results for the commercial health club industry. For the quarter ending September 30, 2012, the Index showed improvements in key performance indicators, including total revenue, membership dues and accounts as well as EBITDAR. Same-store clubs also posted improved results.

“For the third consecutive quarter, same-store clubs recorded increases in total sales, membership dues, and non-dues revenues, attesting to the ability of mature clubs to continue growth in the new economy,” said Jay Ablondi, IHRSA’s executive vice president of global products. “Continued improvements for the overall index indicate that leading clubs, old and new, are finding ways to attract consumers who place a high value on their health and fitness.” 

For the quarter ending September 30, 2012, total revenue increased by 8.0% relative the quarter ending September 30, 2011. Total membership dues revenue grew by 6.6%, while non-dues revenue rose by 9.4%. EBITAR also improved by 10.2%.  Membership accounts improved by 4.6%. 

Along with the robust performance of the overall Index, same-store facilities also posted a boost in key metrics. Same-store revenue and non-dues revenue grew by 2.9% and 3.5%, respectively. Same-store membership dues revenue rose by 2.4%, while same-store membership accounts improved by 2.1%.

“The steadily improving performance of the Index is consistent with research conducted by independent firms,” said Melissa Rodriguez, IHRSA senior manager of research. “IBISWorld projects that gym, health & fitness clubs will grow by 2.8% per year from 2012 through 2017. Although savvy club operators play a critical role in fueling growth, health-conscious consumers cite fewer barriers to joining a health club.”

According to the IHRSA Trend Report, 55% of non-members cite cost as a barrier to joining a health club over the quarter ending September 30, 2012, down from 62% over the same quarter in 2008. Roughly 16% cite “no time,” down from 20% in 2008. Nearly one out of ten non-members (12%) indicated that they “there is no health club close to me,” a decrease from 17% in 2008. The report shows that younger generations are less likely than older generations to feel that a health club is expensive, indicating that younger consumers may be likely to become life-long members as they become financially accustomed to paying monthly dues.

(Please refer to the table at the end of the press release) Note: Data reflects information for 16 leading U.S. health and sports club companies representing 553 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 37 facilities (same-store count average of 17 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 "Percent 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 "Percent Change" presents an indication of the broader group's performance. The "Co. Percent Change" reflects the median/midpoint percentage change reported by the 16 individual companies. As such, the "Co. Percent Change" represents the "typical" company's performance where all the participants are weighted equally, regardless of size.

Survey results for the quarter ending September 30, 2012 compared to results from the quarter ending September 30, 2011:

Survey Results for the Quarter ending September 30, 2012

Company Analysis

 

Mean

Median

Percent Change (mean)

Company Percent Change (median)

Total Revenue

$42.2 million

$8.0 million

8.0%

5.6%

 

Total Membership Dues

$29.2 million

$6.1 million

6.6%

5.1%

Total Non-dues revenue

$12.1 million

$2.8 million

9.4%

6.3%

Same-store total revenue

$14.3 million

$7.2 million

2.9%

2.6%

Same-store membership dues revenue

$9.9 million

$4.7 million

2.4%

1.7%

Same-store non-dues revenue

$4.4 million

$1.9 million

3.5%

4.0%

EBITDAR

$15.5 million

$2.6 million

10.2%

10.0%

 

About IHRSA

The International Health, Racquet & Sportsclub Association (IHRSA) is a not-for-profit trade association representing health and fitness facilities, gyms, spas, sports clubs, and suppliers worldwide. IHRSA and its members are dedicated to making the world healthier through regular exercise and fitness promotion. Find an IHRSA club at healthclubs.com.

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