HG Vora Capital Raises Exposure To Town Sports International Holdings Inc. (CLUB)

HG Vora Capital Management, managed by Parag Vora, has revealed a 12.7% passive stake in Town Sports International Holdings Inc. (NASDAQ:CLUB). In a newly amended filing with the U.S. Securities and Exchange Commission, HG Vora Capital has disclosed upping its stake in the company to 3.08 million shares of common stock. Previously, the fund owned 1.30 million shares of Town Sports International Holdings Inc. (NASDAQ:CLUB), which owns and operates fitness clubs in the Northeast and mid-Atlantic regions of the United States and.

The New-York based company reported first quarter 2014 net loss of $3.5 million, or $0.15 loss per share, compared to net income of $4.2 million, or $0.18 earnings per share, in the same quarter of 2013. It reported adjusted EBITDA of $14.1 million, representing a decrease of $10.2 million, or 42.0%, compared to adjusted EBITDA of $24.2 million in first quarter of 2013. Revenue for the quarter totaled $115.9 million, down 2.7% compared to    $119.2 million the 2013 quarter.

For second quarter of 2014, the company expects revenue to be between $116.0 million and $117.0 million, compared to $120.1 million for the second quarter of 2013. It expects net results to be breakeven, and diluted earnings per share to be about $0.00 per share, assuming a 43% effective tax rate and about 24.7 million weighted average fully diluted shares outstanding.

In April, Town Sports International Holdings Inc. (NASDAQ:CLUB) appointed Carolyn Spatafora as CFO, effective May 12, 2014. Ms. Spatafora will replace Daniel Gallagher, who had been serving as CFO and was promoted to the position of president and COO in January 2014, according to a statement.

Town Sports International Holdings Inc. (NASDAQ:CLUB) has a market cap of $150.03 million. On Thursday, shares of the company traded down by 2.36% to $6.20. The consensus average target price for the stock is $8.25, while the consensus average recommendation is ‘overweight.’

Other significant shareholders of the company include Thomas Steyer’s Farallon Capital, which owns 4.06 million shares, and Jim Simons’ Renaissance Technologies, which revealed owning 848,000 shares.

Disclosure: none