Town Sports International Holdings Inc. announced unaudited consolidated earnings results for the fourth quarter and full-year ended December 31, 2011. Total revenue for fourth quarter 2011 increased $1.7 million or 1.5% to $115.813 million against $114.065 million for the fourth quarter 2010. For fourth quarter 2011, revenues increased $678,000 at the two clubs opened or acquired subsequent to December 31, 2009 (both opened in fourth quarter 2011), increased by $3.8 million at clubs opened or acquired prior to December 31, 2009 and decreased $511,000 related to the three clubs that were closed subsequent to December 31, 2009. Net income was $3.250 million or $0.14 basic and diluted earnings per share against net income of $1.275 million or $0.06 basic and diluted earnings per share for the comparable period of last year. Adjusted EBITDA was $22.858 million against $19.095 million for the corresponding period of last year. Operating income was $9.6 million as compared to adjusted operating income of $6.5 million in the fourth quarter of 2010. For the full-year ended December 31, 2011, total revenue increased $4.6 million, or 1.0% to $466.941 million compared to $462.387 million of full-year 2010. Net income for 2011 was $6.3 million or $0.27 diluted earnings per share compared to net loss of $290,000 or $0.01 diluted loss per share in 2010. Cash flow from operating activities for full-year 2011 totaled $74.9 million, an increase of $23.6 million from full-year 2010 of $51.238 million. This increase was driven by an increase in earnings before the effects of depreciation and fixed asset impairments. The increase in deferred revenue in 2011 generated a $6.5 million increase in cash flow as compared to 2010, which was driven by an increase in joining fees collected. The decrease in prepaid expenses and other current assets generated a $6.0 million favorable cash flow variance to 2010 principally due to timing differences in rent payments at the end of 2011. The effect of income taxes increased cash flow by $6.6 million in 2011, as it had more income tax refunds, net of cash paid for taxes, in 2011 compared to 2010. Capital expenditures were $30.907 million against $22.035 million of prior year. Adjusted EBITDA was $89.542 million against $73.908 million for the corresponding period of last year. Net debt as on December 31, 2011 was $243.9 million compared to net debt of $277.7 million as of December 31, 2010. The company provided earnings guidance for the first quarter 2012 and full year ending December 31, 2012. Revenue for first quarter 2012 is expected to be between $121.3 million and $122.3 million versus $116.7 million for first quarter 2011. As percentages of revenue, the company expects first quarter 2012 payroll and related expenses to approximate 39.0% and club operating expenses to approximate 37.0%. The company expects general and administrative expenses to approximate $6.8 million, depreciation and amortization to approximate $12.8 million and net interest expense to approximate $6.0 million. The company expects net income for first quarter 2012 to be between $2.75 million and $3.25 million, and diluted earnings per share to be in the range of $0.12 per share to $0.14 per share, assuming a 41.0% effective tax rate and 23.75 million weighted average fully diluted shares outstanding. The company estimates that Adjusted EBITDA will approximate $23.75 million in first quarter 2012. For the year ending December 31, 2012, the company currently plans to invest $25.0 million to $28.0 million in capital expenditures compared to $30.9 million of capital expenditures in 2011. This amount includes approximately $2.5 million to $3.0 million related to potential 2012 and 2013 club openings, approximately $16.0 million to $17.0 million to continue upgrading existing clubs and approximately $4.0 million to $5.0 million principally related to major renovations at clubs with recent lease renewals and to upgrade in-club entertainment system network. The company also expect to invest approximately $2.5 million to $3.0 million to enhance management information systems. These capital expenditures will be funded by cash flow provided by operations and available cash on hand. The company expects adjusted EBITDA for the full-year 2012 to approximate $98 million or close to a 10% improvement over 2011 and free cash flow of approximately $2 per share.