Town Sports trims 4Q losses on smaller charges

NEW YORK

Town Sports International Holdings Inc., owner of fitness clubs in New York, Boston, Washington and Philadelphia, said Monday it trimmed its fourth-quarter losses due mainly to the lack of a goodwill impairment charge.

The net loss in the three months to Dec. 31 fell to $7.3 million, or 33 cents per share, from a loss of $13.1 million, or 51 cents per share, a year ago.

The company did not book a goodwill impairment charge in the fourth quarter, compared to a $17.6 million charge, mainly for its Boston clubs the previous year. However, the company did book a $10.2 million charge for an internal software project that is likely to be canceled.

Revenue fell 7 percent to $114.3 million from $122.9 million a year ago.

Analysts were expecting a smaller loss of 10 cents per share on $113.5 million in revenue.

Shares rose 2 cents to close at $3.34 on Monday.

For the full year, the company posted a net loss of $5.7 million, or 25 cents per share, reversing a net profit of $2.3 million, or 9 cents per share, a year earlier. Revenue fell 4 percent to $485.4 million from $506.7 million.