Life Time Closes on $65 Million in Sale-Leaseback Transactions
Life Time Group Holdings, Inc. (NYSE: LTH) has announced the completion of two sale-leaseback transactions for two properties, generating approximately $65 million in gross proceeds. These transactions bring the company's total gross proceeds from sale-leasebacks to about $213 million year-to-date. Erik Weaver, Executive Vice President and CFO, stated that these transactions will support future growth opportunities and strengthen the company's balance sheet.
Life Time has achieved its initial net leverage milestone of 3.0 times at the end of the second quarter, six months ahead of schedule. The company is now committed to reducing net leverage to less than 2.5 times. Life Time operates more than 175 athletic country clubs across the United States and Canada, serving people from 90 days to 90+ years old with a team of over 42,000 dedicated professionals.
Life Time Group Holdings, Inc. (NYSE: LTH) ha annunciato il completamento di due transazioni di vendita-in affitto per due immobili, generando circa 65 milioni di dollari in proventi lordi. Queste transazioni portano il totale dei proventi lordi dell'azienda dalle vendite-in affitto a circa 213 milioni di dollari da inizio anno. Erik Weaver, Vicepresidente Esecutivo e CFO, ha dichiarato che queste transazioni sosterranno le opportunità di crescita future e rafforzeranno il bilancio dell'azienda.
Life Time ha raggiunto il suo primo traguardo di leva netta di 3,0 volte alla fine del secondo trimestre, sei mesi prima del previsto. L'azienda è ora impegnata a ridurre la leva netta a meno di 2,5 volte. Life Time gestisce più di 175 club sportivi negli Stati Uniti e in Canada, servendo persone dai 90 giorni ai 90+ anni con un equipo di oltre 42.000 professionisti dedicati.
Life Time Group Holdings, Inc. (NYSE: LTH) ha anunciado la finalización de dos transacciones de venta-apalancamiento para dos propiedades, generando aproximadamente 65 millones de dólares en ingresos brutos. Estas transacciones llevan los ingresos brutos totales de la compañía provenientes de ventas-apalancamiento a aproximadamente 213 millones de dólares hasta la fecha. Erik Weaver, Vicepresidente Ejecutivo y CFO, declaró que estas transacciones apoyarán las oportunidades de crecimiento futuras y fortalecerán el balance de la compañía.
Life Time ha alcanzado su hito inicial de apalancamiento neto de 3.0 veces al final del segundo trimestre, seis meses antes de lo programado. La compañía ahora se compromete a reducir el apalancamiento neto a menos de 2.5 veces. Life Time opera más de 175 clubes atléticos en los Estados Unidos y Canadá, atendiendo a personas desde los 90 días hasta más de 90 años con un equipo de más de 42,000 profesionales dedicados.
Life Time Group Holdings, Inc. (NYSE: LTH)는 두 개의 자산에 대한 매각-임대 거래를 완료했다고 발표하며, 약 6,500만 달러의 총 수익을 창출했습니다. 이 거래는 회사의 총 매각-임대 수익을 현재까지 약 2억 1,300만 달러에 도달하게 했습니다. 에릭 위버, 수석 부사장 겸 CFO는 이러한 거래가 향후 성장 기회를 지원하고 회사의 재무 상태를 강화할 것이라고 밝혔습니다.
Life Time은 두 번째 분기 말 기준으로 3.0배의 초기 순 레버리지 이정표를 달성했으며, 이는 예정된 일정보다 6개월 이른 것입니다. 회사는 이제 순 레버리지를 2.5배 이하로 줄이겠다고 약속하고 있습니다. Life Time은 미국과 캐나다 전역에 175개 이상의 스포츠 클럽을 운영하며, 90일부터 90세 이상의 사람들을 대상으로 하고 있으며, 42,000명 이상의 전담 전문가 팀이 있습니다.
Life Time Group Holdings, Inc. (NYSE: LTH) a annoncé l'achèvement de deux transactions de vente-bail pour deux propriétés, générant environ 65 millions de dollars de recettes brutes. Ces transactions portent le total des recettes brutes de l'entreprise provenant des ventes-baux à environ 213 millions de dollars depuis le début de l'année. Erik Weaver, Vice-Président Exécutif et CFO, a déclaré que ces transactions soutiendront les opportunités de croissance futures et renforceront le bilan de l'entreprise.
Life Time a atteint son premier jalon de levier net de 3,0 fois à la fin du deuxième trimestre, six mois avant le calendrier prévu. L'entreprise s'engage maintenant à réduire son levier net à moins de 2,5 fois. Life Time exploite plus de 175 clubs sportifs à travers les États-Unis et le Canada, servant des personnes de 90 jours à plus de 90 ans avec une équipe de plus de 42 000 professionnels dévoués.
Life Time Group Holdings, Inc. (NYSE: LTH) hat den Abschluss von zwei Verkaufs- und Rückmiettransaktionen für zwei Immobilien bekannt gegeben, die etwa 65 Millionen Dollar brutto einbringen. Diese Transaktionen steigern die gesamten Bruttoeinnahmen des Unternehmens aus Verkaufs- und Rückmietgeschäften auf etwa 213 Millionen Dollar im laufenden Jahr. Erik Weaver, Executive Vice President und CFO, erklärte, dass diese Transaktionen zukünftige Wachstumschancen unterstützen und die Bilanz des Unternehmens stärken werden.
Life Time hat am Ende des zweiten Quartals seine anfängliche Nettoverhältnis-Marke von 3,0-fach erreicht, sechs Monate früher als geplant. Das Unternehmen hat sich nun verpflichtet, das Nettoverhältnis auf weniger als 2,5-fach zu senken. Life Time betreibt mehr als 175 Sportclubs in den Vereinigten Staaten und Kanada und bedient Menschen im Alter von 90 Tagen bis über 90 Jahren mit einem Team von über 42.000 engagierten Fachleuten.
- Completed two sale-leaseback transactions for $65 million in gross proceeds
- Total gross proceeds from sale-leasebacks reached $213 million year-to-date
- Achieved net leverage milestone of 3.0 times ahead of schedule
- Committed to further reducing net leverage to less than 2.5 times
- Positive free cash flow reported
- None.
Insights
The recent sale-leaseback transactions totaling
Notably, the company has achieved its net leverage target of 3.0 times ahead of schedule, demonstrating strong financial management. The stated goal of further reducing leverage to below 2.5 times signals a commitment to improving the balance sheet. This conservative approach to debt management is likely to be viewed positively by investors, potentially leading to improved creditworthiness and financial flexibility.
The combination of these transactions and positive free cash flow suggests Life Time is on a solid path to financial health. However, investors should monitor the impact of increased lease obligations on long-term profitability and consider how this strategy aligns with the company's growth plans in the competitive health and wellness industry.
Life Time's execution of two sale-leaseback transactions for
The statement that terms were "similar to recent transactions" suggests consistency in deal structure, which is favorable for predictability and potentially indicates market acceptance of Life Time's credit quality. However, the lack of disclosed details on lease terms, such as duration and rent escalations, leaves some uncertainty for investors assessing long-term implications.
With a portfolio of over 175 athletic clubs, Life Time has significant real estate holdings that could be leveraged for future sale-leasebacks. This strategy provides a runway for capital recycling, potentially funding expansion or refurbishment without diluting equity or taking on additional debt. Investors should watch for the balance between unlocking real estate value and maintaining a strong asset base for long-term stability and growth.
These transactions bring the Company's total gross proceeds from sale-leasebacks to approximately
Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "We're pleased to have completed these two additional sale-leaseback transactions, which will support both our future growth opportunities and our commitment to strengthening our balance sheet and further reducing net leverage. After achieving our initial net leverage milestone of 3.0 times at the end of the second quarter, which was ahead of schedule by six months, we are committed to a path of de-levering to less than 2.5 times. We believe these transactions, combined with our positive free cash flow, will accelerate the timing of reaching this important milestone. We remain excited about the strength of our business and the opportunities in front of us."
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 175 athletic country clubs across
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its priorities for 2024, growth, improvements to its balance sheet, net debt and leverage ratio (including the timing thereof) and free cash flow. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and competitive and economic environment, risks relating to our brand, risks relating to the growth of our business, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 28, 2024, (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Life Time Group Holdings, Inc.
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