Health club operator hits market with first-of-its kind industry IPO.Sports Club A sports club, athletics club or sports association is an eclectic institution oriented to multiple sports, which fields many teams and has varied sports departments in several sports, working under the same umbrella organization. Co. Inc., the Santa Monica-based operator of 13 Southland health clubs, went public last week with an initial stock offering that corporate officials said was the first of its kind by a company solely involved in the health club field. The company, which operates the swanky swank·y adj. swank·i·er, swank·i·est Swank. swank  i·ly adv.swank and exclusive Sports Club/LA in West Los Angeles
The offering price was expected to be between $10 and $12 a share, with company estimated total proceeds of about $40.9 million. The stock was listed on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of last Thursday, Oct. 13, under the SCY SCY Security SCY Short Course Yards (swimming) symbol and had an opening price of $9 a share. As of mid-day Thursday, the stock was still trading at $9 a share. The company, founded by Chairman and President D. Michael Talla, was formerly known as Spectrum Sports Clubs Co. Earlier this year, Talla, 47, changed its name to Sports Club Co. and incorporated the business. In addition to the two Sports Club facilities, the company operates six health clubs under the Spectrum name and five under the Sports Connection name. Initiation fees at the Sports Clubs range from $1,295 to $2,500 with monthly dues of up to $160. At the Spectrum clubs, initiation fees range from $725 to $1,475 per person with monthly dues of up to $137. Sports Connection initiation fees are $300 with monthly dues of about $60. The Sport Club/LA on Sepulveda Boulevard is considered one of the most chic health clubs in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Many well-known business, sports and entertainment personalities belong to the club, which features well-dressed valets who park members' cars. In the health club industry, the Sport Club facilities are known as "urban country clubs" and feature the latest in equipment and amenities. Company officials would not officially comment, citing federal regulations that prohibit them from publicly promoting the firm during the so-called "quiet period." But according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Securities and Exchange Commission filings, Talla will retain control of the company with 46 percent of the common stock. Company officials noted, however, that the offering is the first of its kind by a company whose only business is owning and operating health clubs. Under its present structure, Sports Club Co. manages and owns parts or all of its health clubs. Other owners or operators of health clubs are public companies but also have interests in other industries. For instance, Bally Manufacturing owns health clubs but also operates gambling casinos and hotels. According to the SEC documents, about $26.5 million of the offering's proceeds will be used to buy back a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Sports Club/LA and Sports Club/Irvine. Last year, a group of investors, known as MKDG Partners, bought a controlling interest in the two clubs. The investors are believed to include entertainment industry mogul Marvin Davis. About $5 million of the proceeds will be used to pay off debt and $9.6 million will go to develop new health club facilities. Currently, the company is building Reebok Ree´bok` n. 1. (Zool.) The peele. Sports Club/NY in New York. The club will be a high-end facility like Sports Club/LA and Sports Club/Irvine. In addition, the company has under development Spectrum clubs in Glendale, Northridge and Las Vegas. A source said the company plans to move away from the Sports Connection type of facilities and concentrate more on high-end ones like the Sports Club and Spectrum clubs. The source said the company wants to expand to other cities beyond the greater Los Angeles area The Greater Los Angeles Area, or the Southland, is the agglomeration of urbanized area around the city of Los Angeles, California, United States. There are two "official" definitions—the Los Angeles metropolitan area consisting only of the Los Angeles and Orange and New York. Currently, the company boasts membership at all of its clubs of at least 50,000 people. Last year, the company had revenue of $13.1 million compared to $17.2 million in 1992. Net income was $1.9 million last year compared to a loss of $1.3 million in 1992. |
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