Town Sports International Holdings Inc. (NasdaqGM:CLUB) is seeking acquisitions. Bob Giardina, Chief Executive Officer of Town Sports International, said, "We believe there will continue to be acquisitions available to us and we will pursue those that fit well into our network."

Town Sports International Holdings Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net income of $4,231,000 or $0.18 diluted earnings per share on revenue of $119,164,000 against net income of $3,850,000 or $0.16 diluted earnings per share on revenue of $122,912,000 a year ago. Operating income was $11,479,000 and income before provision for corporate income taxes was $6,739,000 against operating income of $11,629,000 and income before provision for corporate income taxes of $6,296,000 a year ago. Net cash provided by operating activities was $21,767,000 and capital expenditures was $4,581,000 against net cash provided by operating activities of $16,404,000 and capital expenditures of $2,348,000 a year ago. The increase in cash flow from operating activities was primarily driven by increases in cash flows resulting from the timing of certain payments and collections made associated with deferred revenue and accounts receivable as well as a decrease in cash paid for interest of $1.1 million. Net debt was $261.4 million compared to net debt of $278 million as of December 31, 2012, a reduction of $16.6 million. EBITDA was $24.2 million compared to $25.1 million in the first quarter of 2012. For the second quarter ending June 30, 2013, the company expects net cash provided by operating activities to be 14,600,000, EBITDA to be $25,000,000 and interest expense, net of interest income to be $5,400,000. Revenue is expected to be between $120.5 million and $121.5 million versus $122.2 million for second quarter of 2012. Net income to be between $4.25 million and $4.75 million, and diluted earnings per share to be in the range of $0.18 per share to $0.20 per share, assuming a 39% effective tax rate and approximately 24.0 million weighted average fully diluted shares outstanding. The company expects depreciation and amortization will be approximate of $12 million. For the year ending December 31, 2013, the company plans to invest $37.0 million to $42.0 million in capital expenditures compared to $22.5 million of capital expenditures in 2012.

Town Sports International Holdings Inc., Q1 2013 Earnings Call, Apr 25, 2013