Connect with Us
    
Life Time Mission

Our mission is to provide an

  • Entertaining,
  • Educational,
  • Friendly and Inviting,
  • Functional and Innovative
experience of uncompromising quality that meets the health and fitness needs of the entire family.
Life Time Vision

Life Time® – The Healthy Way of Life Company, helps organizations, communities and individuals achieve their: 

  • Total Health Objectives
  • Athletic Aspirations and
  • Fitness Goals

by doing what they love to do.

 

We do this by providing the best:

  • Places
  • Performers and
  • Programs

that change lives positively every day.

Life Time Fitness Announces First Quarter 2014 Financial Results
Revenue Grew 7.3%, Net Income was $28.3 Million and Diluted EPS was $0.69
"During the first quarter, we focused on a wide range of initiatives to further enhance the foundation of long-term growth for our Healthy Way of Life company"

CHANHASSEN, Minn.--(BUSINESS WIRE)--Life Time Fitness, Inc. (NYSE: LTM), The Healthy Way of Life Company, today reported its financial results for the first quarter ended March 31, 2014.

First quarter 2014 revenue grew 7.3% to $312.0 million from $290.7 million during the same period last year. Net income for the quarter was $28.3 million, or $0.69 per diluted share, compared to net income of $28.1 million, or $0.67 per diluted share, for 1Q 2013.

“During the first quarter, we focused on a wide range of initiatives to further enhance the foundation of long-term growth for our Healthy Way of Life company,” said Bahram Akradi, Life Time chairman, president and chief executive officer. “We opened the first of our six planned new centers for the year, while continuing to expand and improve our portfolio of unique programs and services that help members achieve their health, fitness, recreation and entertainment goals and objectives. Moving forward, we remain focused on continuing to deliver innovative consumer and corporate health and wellness solutions, and expanding the awareness and recognition of Life Time as a nationally recognized, best-in-class brand. We believe these efforts and activities will continue to fuel our growth in 2014 and beyond.”

During the quarter, the Company opened its second center in New York, located in Westchester County. On April 10, the Company opened its second center in Florida, located in Tampa. Plans call for four additional new center openings in existing and new markets, including Laguna Niguel, California, the Company’s first California location, which is opening today. The remaining planned new center openings will be in the Des Moines, Iowa; Detroit, Michigan; and Las Vegas, Nevada markets.

Three Months Ended March 31, 2014, Financial Highlights:

Total revenue for the first quarter grew 7.3% to $312.0 million from $290.7 million in 1Q 2013.

 

 

1Q 2014 vs. 1Q 2013
(in millions except revenue per membership data)

Membership dues   $196.8 vs. $186.4 (up 5.6%)
In-center revenue   $98.4 vs. $92.0 (up 7.0%)
Other revenue   $13.6 vs. $9.0 (up 51.1%)
     
Average center revenue per Access membership   $429 vs. $404 (up 6.2%)
Average in-center revenue per Access membership   $144 vs. $134 (up 7.7%)
Same-center revenue (open 13 months or longer)   Up 1.5%
Same-center revenue (open 37 months or longer)   Up 1.1%

Total memberships grew to 812,011 at March 31, 2014, from 809,813 at March 31, 2013.

  • Access memberships were down 0.9% to 702,011 at March 31, 2014, from 708,563 at March 31, 2013.
  • Non-Access memberships grew 8.6% to 110,000 at March 31, 2014, from 101,250 at March 31, 2013.
  • Attrition in 1Q 2014 was 8.2%, the same as the prior-year period. Attrition for the trailing 12-month period ended March 31, 2014, was 35.7% compared to trailing 12-month attrition of 33.9% at March 31, 2013.

Total operating expenses during 1Q 2014 were $257.9 million compared to $238.4 million for 1Q 2013. Income from operations margin was 17.3% for 1Q 2014 compared to 18.0% in the prior-year period. This margin decline was due to incremental center pre-opening costs in Q1 2014 compared to Q1 2013.

   

1Q 2014 vs. 1Q 2013
(expense as a percent of total revenue)

Center operations   58.7% vs. 58.5%
Advertising and marketing   4.0% vs. 3.8%
General and administrative   5.1% vs. 5.2%
Other operating   4.6% vs. 4.4%
Depreciation and amortization   10.3% vs. 10.1%

Net income for 1Q 2014 was $28.3 million, or $0.69 per diluted share, compared to net income of $28.1 million, or $0.67 per diluted share, for 1Q 2013.

EBITDA for 1Q 2014 was $86.5 million compared to $82.0 million in 1Q 2013. As a percentage of total revenue, EBITDA in 1Q 2014 was 27.7%, compared to 28.2% in the prior year period.

Cash flows from operating activities for 1Q 2014 totaled $77.7 million compared to $76.2 million in the prior-year period.

Weighted average fully diluted shares for 1Q 2014 totaled 40.9 million compared to 41.6 million in 1Q 2013.

Reaffirmed 2014 Business Outlook:

The following statements are based on the Company’s current expectations for fiscal year 2014. These 2014 expectations are subject to the risks and uncertainties further described in the Company’s forward-looking statements:

  • Revenue is expected to be up 8-9.5%, or $1.300-1.320 billion, driven primarily by price and mix optimization, square foot expansion, and growth in in-center and ancillary business revenue.
  • Net income is expected to be up 3-7%, or $125.0-130.0 million, driven by revenue growth, partially offset by increased costs associated with the acceleration of new center growth.
  • Diluted earnings per common share is expected to be $3.05-3.15.

As announced on April 17, 2014, the Company will hold a conference call today at 10:00 a.m. ET to discuss its first quarter 2014 results. Bahram Akradi, chairman, president and chief executive officer, Eric Buss, executive vice president and interim chief financial officer, and John Heller, vice president of finance and investor relations, will host the conference call. The conference call will be webcast and may be accessed via the Company’s Investor Relations section of its website at lifetimefitness.com. A replay of the call will be available the same day via the Company’s website beginning at approximately 2:00 p.m. ET.

Additionally, the Company will hold its Annual Meeting of Shareholders today at noon ET at its headquarters, located at 2902 Corporate Place in Chanhassen, Minnesota. The meeting also will be webcast and may be accessed live via the Company’s Investor Relations section of its website at lifetimefitness.com. A replay of the meeting will be available the same day via the Company’s website beginning at approximately 5:00 p.m. ET.

About Life Time Fitness, Inc.

As The Healthy Way of Life Company, Life Time Fitness (NYSE: LTM) helps organizations, communities and individuals achieve their total health objectives, athletic aspirations and fitness goals by engaging in their areas of interest — or discovering new passions — both inside and outside of Life Time’s distinctive and large sports, professional fitness, family recreation and spa destinations, most of which operate 24 hours a day, seven days a week. The Company’s Healthy Way of Life approach enables customers to achieve this by providing the best programs, people and places of uncompromising quality and value. As of April 24, 2014, the Company operated 110 centers under the LIFE TIME FITNESS® and LIFE TIME ATHLETIC® brands in the United States and Canada. Additional information about Life Time centers, programs and services is available at lifetimefitness.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can usually be identified by the use of terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “evolve,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “opinion,” “plan,” “possible,” “potential,” “project,” “should,” “will” and similar words or expressions. Forward-looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. Among these factors are attracting and retaining members, risks related to our debt levels and debt covenants, the ability to access our existing credit facility and obtain additional financing, strains on our business from continued and future growth, including potential acquisitions and other strategic initiatives, risks related to maintenance and security of our data, potential recognition of compensation expense related to performance-based stock grants, potential impairment of long-lived assets, goodwill and intangible assets, competition from other health and fitness centers, identifying and acquiring suitable sites for new centers, delays in opening new centers and other factors set forth in the risk factor section of the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission. The Company cautions investors not to place undue reliance on any such forward-looking statements, which speak only as of the date on which such statements were made. The Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date. All remarks made during the Company’s preliminary financial results webcast will be current at the time of the webcast and the Company is under no obligation to update the recording.

 
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
         
    March 31,   December 31,
    2014   2013
ASSETS        
Current assets:        
Cash and cash equivalents   $ 12,540     $ 8,334  
Accounts receivable, net     12,114       8,298  
Center operating supplies and inventories     33,495       32,778  
Prepaid expenses and other current assets     32,330       25,802  
Deferred membership origination costs     9,549       9,945  
Deferred income taxes     3,644       6,881  
Income tax receivable     -       6,698  
Total current assets     103,672       98,736  
Property and equipment, net     2,147,753       2,105,077  
Restricted cash     1,137       850  
Deferred membership origination costs     4,980       5,210  
Goodwill     59,195       49,195  
Intangible assets, net     34,783       29,299  
Other assets     42,370       42,684  
Total assets   $ 2,393,890     $ 2,331,051  
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
Current maturities of long-term debt   $ 27,095     $ 24,505  
Accounts payable     29,082       28,645  
Construction accounts payable     39,116       47,342  
Accrued expenses     73,117       67,435  
Deferred revenue     45,198       35,032  
Total current liabilities     213,608       202,959  
Long-term debt, net of current portion     902,023       824,093  
Deferred rent liability     33,070       28,933  
Deferred income taxes     97,423       100,504  
Deferred revenue     5,013       5,246  
Other liabilities     21,278       21,287  
Total liabilities     1,272,415       1,183,022  
Shareholders' equity:        
Common stock     826       843  
Additional paid-in capital     347,964       402,147  
Retained earnings     778,969       750,654  
Accumulated other comprehensive loss     (6,284 )     (5,615 )
Total shareholders' equity     1,121,475       1,148,029  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 2,393,890     $ 2,331,051  
 
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
         
    For the Three Months Ended
    March 31,
    2014   2013
Revenue:        
Membership dues   $ 196,815     $ 186,374  
Enrollment fees     3,123       3,396  
In-center revenue     98,405       91,971  
Total center revenue     298,343       281,741  
Other revenue     13,612       9,006  
Total revenue     311,955       290,747  
Operating expenses:        
Center operations     183,118       169,962  
Advertising and marketing     12,339       10,959  
General and administrative     15,864       15,356  
Other operating     14,422       12,834  
Depreciation and amortization     32,138       29,262  
Total operating expenses     257,881       238,373  
Income from operations     54,074       52,374  
Other income (expense):        
Interest expense, net     (7,851 )     (6,129 )
Equity in earnings of affiliate     297       346  
Total other expense     (7,554 )     (5,783 )
Income before income taxes     46,520       46,591  
Provision for income taxes     18,205       18,490  
Net income   $ 28,315     $ 28,101  
         
Basic earnings per common share   $ 0.70     $ 0.68  
Diluted earnings per common share   $ 0.69     $ 0.67  
         
Weighted average number of common shares outstanding - basic     40,603       41,295  
Weighted average number of common shares outstanding - diluted     40,870       41,646  
 
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
    For the Three Months Ended
    March 31,
    2014   2013
Cash flows from operating activities:        
Net income   $ 28,315     $ 28,101  

Adjustments to reconcile net income to net cash provided by operating activities:

       
Depreciation and amortization     32,138       29,262  
Deferred income taxes     (77 )     4,582  
Gain on disposal of property and equipment, net     (416 )     (228 )
Amortization of deferred financing costs     577       505  
Share-based compensation     3,286       2,830  
Excess tax benefit related to share-based compensation     (846 )     (4,657 )
Changes in operating assets and liabilities     14,889       16,645  
Other     (206 )     (809 )
Net cash provided by operating activities     77,660       76,231  
         
Cash flows from investing activities:        
Purchases of property and equipment     (82,826 )     (59,145 )
Acquisitions, net of cash acquired     (12,400 )     -  
Proceeds from sale of property and equipment     447       555  
Proceeds from property insurance settlements     -       121  
Increase in other assets     (33 )     (730 )
Increase in restricted cash     (287 )     (275 )
Net cash used in investing activities     (95,099 )     (59,474 )
         
Cash flows from financing activities:        
Proceeds from long-term borrowings     80,000       75,000  
Repayments of long-term borrowings     (4,909 )     (1,696 )
Proceeds from (repayments of) credit facility, net     5,300       (78,400 )
Increase in deferred financing costs     (947 )     (465 )
Excess tax benefit related to share-based compensation     846       4,657  
Proceeds from stock option exercises     2,139       872  
Proceeds from employee stock purchase plan     483       414  
Stock purchased for employee stock purchase plan     (701 )     (569 )
Repurchases of common stock     (60,498 )     (19,349 )
Net cash provided by (used in) financing activities     21,713       (19,536 )
         
Effect of exchange rates on cash and cash equivalents     (68 )     (26 )
         
Increase (decrease) in cash and cash equivalents     4,206       (2,805 )
Cash and cash equivalents - beginning of period     8,334       16,499  
Cash and cash equivalents - end of period   $ 12,540     $ 13,694  

Non-GAAP Financial Measure

This release and the related conference call disclose the following non-GAAP financial measure.

EBITDA. Earnings Before Interest, Income Taxes and Depreciation and Amortization (EBITDA) is a non-GAAP financial measure consisting of net income plus interest expense, net, provision for income taxes and depreciation and amortization. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses EBITDA as a measure of operating performance. The funds depicted by EBITDA are not necessarily available for discretionary use if they are reserved for particular capital purposes, to maintain compliance with debt covenants, to service debt or to pay taxes. EBITDA should not be considered as a substitute for net income, net cash provided by operating activities or other income or cash flow data prepared in accordance with GAAP. Additional details related to EBITDA are provided in the Form 8-K that the Company filed with the Securities and Exchange Commission on the date of this press release. The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to EBITDA:

 
RECONCILIATION OF NET INCOME TO EBITDA
(In thousands)
(Unaudited)
         
    For the Three Months Ended
    March 31,
    2014   2013
Net income   $ 28,315   $ 28,101
Interest expense, net     7,851     6,129
Provision for income taxes     18,205     18,490
Depreciation and amortization     32,138     29,262
EBITDA   $ 86,509   $ 81,982

 

 

For further information: Life Time Fitness, Inc. Investor Relations: John Heller, 952-229-7427 ir@lifetimefitness.com Media Relations: Jason Thunstrom, 952-229-7435 pr@lifetimefitness.com

print email rss