1281774--3/13/2007--TOWN_SPORTS_INTERNATIONAL_HOLDINGS_INC

related topics
{cost, operation, labor}
{debt, indebtedness, cash}
{regulation, change, law}
{system, service, information}
{acquisition, growth, future}
{operation, natural, condition}
{personnel, key, retain}
{loan, real, estate}
{cost, regulation, environmental}
{control, financial, internal}
If we are unable to identify and acquire suitable sites for new clubs, our revenue growth rate and profits may be negatively impacted. We may experience prolonged periods of losses in our recently opened clubs. We could be subject to claims related to health or safety risks at our clubs. Loss of key personnel and/or failure to attract and retain highly qualified personnel could make it more difficult for us to generate cash flow from operations and service our debt. We are subject to extensive government regulation and changes in these regulations could have a negative effect on our financial condition. Terrorism and the uncertainty of armed conflicts may have a material adverse effect on clubs and our operating results. Disruptions and failures involving our information systems could cause customer dissatisfaction and adversely affect our billing and other administrative functions. The opening of new clubs by us in existing locations may negatively impact our comparable club revenue increases and our operating margins. Our continued growth could place strains on our management, employees, information systems and internal controls, which may adversely impact our business. Our cash and cash equivalents are concentrated in one bank. The requirements of being a company with listed public equity may strain our resources and distract our management. Delays in new club openings could have a material adverse effect on our financial performance. Risks Related to Our Leverage Our leverage may impair our financial condition and we may incur significant additional debt. We may not have access to the cash flow and other assets of our subsidiaries that may be needed to make payments on our outstanding senior discount notes.

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