Wednesday, March 17, 2010

Town Sports Shares Fly on Narrowed Loss

“Town Sports International Holdings (CLUB: 4.0918, 0.1918, 4.92%) shares jumped 8% Tuesday, a day after the company announced it had narrowed its fourth-quarter loss. The health-club operator's loss dropped to 33 cents per share, down from 51 cents in the fourth quarter last year. The improvement came mainly because the company did not book a goodwill impairment charge as it did in 2009. Revenue for the quarter fell to $114.3 million from $122.9 million a year ago. As part of its earnings announcement, the company, which operates the New York, Philadelphia, Boston and Washington Sports Clubs chains, said it plans a $34 million to $37 million capital investment in the coming year. Shares jumped 27 cents to $3.90, though the company's loss was well more than analysts' estimates of 10 cents per share.”

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