TOWN SPORTS INTERNATIONAL INC. health club company is the largest in the Northeastern United States. TSI owns and operates the Sports Clubs Network of clubs which includes New York Sports Clubs Boston Sports Clubs Washington Sports Clubs and Philadelphia Sports Clubs. There are also three locations in Switzerland: the Forum and the Joggeli Fitness Clubs in Basel and the Luxor Club in Zurich.All Sports Clubs locations offer a multitude of options for everyone including a wide range of group exercise and fitness programs. Select facilities also offer racquet sports pools basketball courts and other recreational activities. All Clubs are fully equipped with tons of strength training equipment cardiovascular machines and other exercise equipment. Additional services such as personal training massage steam room and sauna Sports Clubs for Kids and fitness assessments are also available. Town Sports International Holdings Inc. has a market cap of $88.7 million; its shares were traded at around $3.93 with a P/E ratio of 5.9 and P/S ratio of 0.2.
Highlight of Business Operations:We have developed and refined our fitness club model through our clustering strategy, offering fitness clubs close to our members workplaces and homes. Our club model targets the upper value market segment, comprising individuals aged between 21 and 60 with income levels between $50,000 and $150,000 per year. We believe that the upper value segment is not only the broadest segment of the market but also the segment with the greatest growth opportunities. Our goal is to be the most recognized health club network in each of the four major metropolitan regions we serve. We believe that our strategy of clustering clubs provides significant benefits to our members and allows us to achieve strategic operating advantages. In each of our markets, we have developed clusters by initially opening or acquiring clubs located in the more central urban markets of the region and then branching out from these urban centers to suburbs and neighboring communities.
Our revenues, operating income and net income for the three months ended June 30, 2009 were $123.9 million, $8.8 million and $2.5 million, respectively, and $129.4 million, $16.5 million and $6.8 million, respectively, for the three months ended June 30, 2008. Our revenues, operating income and net income for the six months ended June 30, 2009 were $250.6 million, $14.4 million and $3.2 million, respectively.
For the three months ended June 30, 2009, revenue increased $6.6 million at the 24 clubs opened or acquired subsequent to June 30, 2007. This increase in revenue was offset by decreases in revenue of 8.6%, or $10.2 million, at our clubs opened or acquired prior to June 30, 2007 and $1.9 million related to the 10 clubs that were closed subsequent to June 30, 2007.
Payroll and related. This decrease was primarily due to a decrease in management incentive bonuses of $690,000 in the three months ended June 30, 2009. We are currently trending at 50% of our management incentive bonus target compared to 100% in the same period in 2008. In addition, there was a decrease in personal training payroll of $650,000 directly related to the decrease in personal training revenue and a decrease of $751,000 in club commissions and bonuses related to the decrease in the number of memberships sold.
These decreases were offset by increases resulting from the discounting of our new member initiation fees in an effort to drive membership sales. Our payroll costs that we defer are limited to the amount of these initiation fees, thus causing an increase of approximately $1.3 million in payroll expense. Adding to this increase was the change in estimated membership life from 30 months to 28 months, effective April 1, 2009, which resulted in an increase in payroll expense of $539,000.
Impairment of fixed assets. In the three months ended June 30, 2008, an impairment loss of $755,000 was recorded on fixed assets of a remote club that did not benefit from being part of a regional cluster and therefore experienced a decline in asset fair value, and an impairment loss of $387,000 related to the agreement to close a club prior to the lease expiration, for total impairment charges of $1.1 million. There was no impairment loss recorded in the three months ended June 30, 2009.
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