press information > press releases > February 25, 2002

BOSTON – February 25, 2002 – A survey of leading U.S. health club companies across the country found that the companies closed 2001 strong, outperforming their fourth quarter results for 2000 on several key operating measures.

The study, conducted for the International Health, Racquet & Sportsclub Association (IHRSA) by Ernst & Young, LLP, found that Q4 2001 total company revenues (mean) grew by 6.4% over 2000, same-store revenues (clubs open at least 24 months) grew 5.9% and that total net membership sales in 2001 improved by 12.8% over 2000, while same-store net membership sales jumped 15%.

"Given the current overall economic climate at the end of 2001, these findings represent great news for the American club industry," observed John McCarthy, IHRSA’s executive director. "2000 was a banner year for our industry and for clubs to outperform their fourth quarter results from such an amazing year is tremendous. I am particularly encouraged by the strong net membership growth on a same-store basis," continued McCarthy. "This means that established clubs continued to grow their membership numbers at the end of the year, which is obviously key to a club’s long-term success, and same-store growth is the hallmark of a good company, i.e. the ability to grow revenues at existing facilities and not simply grow by opening new locations".

Total Revenue: $18,042,231 +6.40%

Dues Revenue: $14,180,913 +9.08%

Non-dues Revenue: $3,725,379 -1.48%

Same-store Sales Revenue: $14,863,396 +5.86%

Same-store Sales Net Membership (accounts): $23,234 +15.21%

Total Net Membership (accounts): 39,664 +12.83%

Data reflects performance for 17 participating companies for the quarter October – December 2001.

Non-dues revenue remained virtually flat, dropping slightly from $3.78 million to $3.72 million, because club members slowed down in their personal training use, tennis lessons, or spa activities. This slight decease can be attributed to the yearly drop caused by holidays and vacations taking up additional personal time.

The findings from this survey follow the news that the total number of commercial health clubs in the U.S. grew by approximately 5% last year, to 17,807 facilities as of January 2002.

The International Health, Racquet & Sportsclub Association (IHRSA) is a nonprofit association dedicated to the growth, protection, and promotion of the health club industry, and represents more than 6500 clubs worldwide. IHRSA is an international leader in health club industry education, research, and advocacy. The Boys & Girls Clubs of America is the "Official" Charitable Partner of IHRSA.