Thursday
Mar282013

Raising the Bar: Health Clubs Continue to Thrive

IHRSA Index Shows Strong Year-Over-Year Performance for Third Consecutive Year

BOSTON -- March 28, 2013-The International Health, Racquet and Sportsclub Association (IHRSA) announced today the release of the IHRSA Index results for the quarter ending December 31, 2012 and the full year of 2012. The Index demonstrates the financial performance of the commercial health club industry.

“For three consecutive years, the IHRSA Index has improved year-over-year performance,” said Jay Ablondi, Executive Vice President of Global Products for IHRSA. “Improvements were recorded in all nine performance indicators measured,” noted Ablondi, “Significantly, the greatest growth was achieved in non-dues revenue and EBITDAR.”

Over the full year ending December 31, 2012, the IHRSA Annual Financial Index posted an increase of 9.6 percent in non-dues revenue and 10.3 percent in EBITDAR. Total revenue grew by 8.1 percent while membership dues revenue rose by 6.7 percent. Total membership accounts also improved modestly by 2.9 percent. Same-store facilities increased total revenue, membership dues revenue and non-dues revenue.

“This sample of leading clubs are attracting members, winning over consumers with non-dues offerings, and closely managing expenses,” said Melissa Rodriguez, Manager of IHRSA research. “The Index has increasingly improved key metrics each year, including same-store clubs.”

In 2012, same-store sales grew by 2.9 percent, while non-dues revenue rose by 3.6 percent. In 2011, same-store total revenue improved by a slight 0.9 percent; same-store non-dues revenue grew by a modest 0.8 percent. EBITDAR improved by 9 percent in 2011 as EBITDAR in 2012 rose by 10.3 percent.

For the quarter ending December 31, 2012, the Index sustained growth from previous quarters. On a quarter-to-quarter basis, total revenue grew by 6.4 percent as non-dues revenue increased by 9.6 percent, nearly a double-digit percent growth. Membership dues revenue and EBITDAR improved by 4.9 percent and 5.8 percent, respectively.   

“In 2012, the IHRSA Index demonstrated that new and mature clubs can coexist and deliver the support, services and value that consumers crave,“ said Ablondi. “ By finding ways to help consumers stay on track with their health and wellness goals, health club operators continue to show that they are entrepreneurial and resilient in any economic environment.”

For more on IHRSA research, including consumer, industry, and club operations data, visit www.ihrsa.org/research.

(Please refer to the table at the end of the press release)

Note: Data reflects information for 18 leading U.S. health and sport club companies representing 538 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 30 facilities (same-store count average of 13 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 "Company Percent Change" reflects the median/midpoint percentage change reported by the 18 individual companies. As such, the “Company Percent Change” represents the “typical” company’s performance where all the participants are weighted equally, regardless of size.

 

Survey Results for the Full Year 2012

Company Analysis

 

Mean

Median

Percent Change (mean)

Company Percent Change (median)

Total Revenue

$157.3 million

$32.2 million

8.1%

4.5%

 

Total Membership Dues

$111.3 million

$22 million

6.7%

3.6%

Total Non-dues revenue

$44.2 million

$10.2 million

9.6%

7.1%

Same-Store Sales Revenue

$52.8 million

$26.2 million

2.9%

2.3%

Same-Store Membership/Dues Revenue

$37 million

$18.2 million

2.5%

1.3%

Same-Store Non-Dues Revenue

$15.7 million

$7.4 million

3.6%

4.2%

EBITDAR

$56.1 million

$7.3 million

10.3%

11.1%

 

Survey Results for the Quarter ending December 31, 2012

Company Analysis

 

Mean

Median

Percent Change (mean)

Company Percent Change (median)

Total Revenue

$30.5 million

$5.3 million

6.4%

5.0%

 

Total Membership Dues

$22 million

$4.6 million

4.9%

2.6%

Total Non-dues revenue

$8.1 million

$1.4 million

8.7%

8.9%

Same-store total revenue

$10 million

$4.1 million

2.9%

3.0%

Same-store membership dues revenue

$7.1 million

$2.8 million

2.5%

1.6%

Same-store non-dues revenue

$2.8 million

$1.6 million

3.6%

4.5%

EBITDAR

$10.4 million

$1.3 million

5.8%

9.7%

 

 

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's online career center - healthclubs.com/jobs - makes it easy and affordable for health and wellness-related employers to find and acquire the industry's top talent. For more information on IHRSA research, please visit ihrsa.org/research.