IHRSA 3rd Quarter Index Shows Moderate Revenue Growth
IHRSA 3rd Quarter Index Shows Moderate Revenue Growth
BOSTON -The International Health, Racquet and Sportsclub Association (IHRSA) has released the IHRSA Third Quarter Index which demonstrates the financial performance of the commer- Association (IHRSA) has released the IHRSA Th rd Quart r Index which demonstrates the financial performance of the commercial h alth club industry. The survey of 17 leading U.S. health and sports club companies, rep e- senting a total of 200 facilities, determined that performance
BOSTON -The International Health, Racquet and Sportsclub cial health club industry. The survey of 17 leading U.S. health and sports club companies, representing a total of 200 facilities, determined that commercial health club financial performance has slightly improved for the third quarter ending September 30, 2008, relative to the same period last year. comm rcial health club financi
has slightly improved for the third quarter end- ng September 30, 2008, relative to th same pe- riod last year.
The IHRSA Index reports thalt health club companies main- tained performance from third quarter 2007 to third quarter i 2008 in company sales by an increase of 1.0%. This moderate growth was lead by an increase in membership dues, 3.8% from third quarter 2007 to third quarter 2008, while non-dues rev- enue held at 0.1% during the same periods. Total membership ac- quarter 2007 to third quarter 2008 in compa- sales by an increase of 1.0%. This moderate growth was lead by an increase in membership dues, 3.8% from third quarter 2007 to third quarter 2008, while non-dues revenue held at 0.1% duri g the same periods. Total member-
The IHRSA Index reports tha health club companies maintained performance f om third counts also increased by 1.5% over third quarter 2007. ny Clubs were able to maintain EBITDAR as a percent of total revenue from third quarter 2007 to third quarter 2008 to 31%. Despite this steady performance in percent of total revenues, to- tal EBITDAR (earnings before interest, taxes, depreciation, amor- tization and rent).
ship accounts also increased by 1.5% over third quarter 2007. Clubs were able to maintain EBITDAR (earnings before inter-
est, taxes, depreciation, amortization and rent) as a percent of to- tal revenue from third quarter 2007 to third quarter 2008 to 31%. Despite this steady performance in percent of total revenues, total EBITDAR.
Same-store revenue experienced marginal growth dur- ing this time frame. Same-store total revenue increased slightly to $5 million or an increase of 1.0% from third quarter 2007 to third quarter 2008. Again, this growth was fueled by same-store membership revenue increasing to 1.4% over third quarter 2007, while same-store non-dues time frame. Sam - tore tota revenue increased slightly to $5 mil- lion or an increase of 1.0% from third quarter 2007 to third quar- ter 2008. Again, this growth was fueled by same-store membership revenue increas- ing to 1.4% over third quarter 2007, while sites
Same-sto e revenue experienced marginal growth during this revenue increased a negligible 0.8%, over third quarter 2007. Same-store total membership accounts also in- creased by a modest 0.6% over third quarter 2007. “It is most likely that improved performance for some companies has been due to new club openings and en- trance into new con sumer markets, while matur have experienced more mod rate growth, potenti tributable to increas Sing dues prices, compared to third quarter 2007,” reflects Katie Rollauer, IHRSA’s senior man- ager of research.
negligible 0.8%, over third quarter 2007. ame-store total membership accounts also increased by a modest 0.6% over third quarter 2007.
Clubs are still repor “tIitn ig, on average, 28% of t s most likely that improved perfor- tal rev-
enues being generated from non-dues sales. “It is encour- aging to see that clu tbs are successfully selling non-dues into sumer markets, while mature sites ienced more moderate growth,
related items such as personal training, apparel, tennis les- sons, etc. even when h consumers are tightening their dis- cretionary spending p,”o said Rollauer.
ave exp
tentially att ibutable to increasing dues prices, compared to third quarter 2007,”
reflects Katie Rollauer, IHRSA’s senior manager of research. Clubs are still reporting, on average, 28% of total revenues be-
###
ing generated from non-dues sales. “It is encouraging to see that clubs are successfully selling non-dues related items such as per- sonal training, apparel, tennis lessons, etc. even when consumers are tightening their discretionary spending,” says Rollauer.
mance for some companies has been due o new club openings and entranc new c
ame-store non-dues revenue increased a lly at-
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January/February 2009 Fitness Business Canada 9
March/April 2009
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