Life Time Reports Preliminary Estimated Third Quarter 2024 Financial Results; Launches Process to Refinance its Existing Notes
Life Time Group Holdings (NYSE: LTH) announced preliminary estimated financial results for Q3 2024, showing strong growth across key metrics:
- Total revenue estimated at $693.2 million, up 18.5% year-over-year
- Net income estimated at $41.4 million, a 422.5% increase
- Adjusted EBITDA estimated at $180.3 million, up 26.1%
- Center memberships grew 5.4% to 826,502
- Average center revenue per membership increased 12.9% to $815
The company also reported improved liquidity and reduced leverage, with total available liquidity of $529.8 million and an estimated net debt leverage ratio of 2.4x, down from 3.7x in Q3 2023. Life Time plans to refinance its existing notes and expects to deliver positive free cash flow for the second consecutive quarter.
Life Time Group Holdings (NYSE: LTH) ha annunciato i risultati finanziari preliminari stimati per il terzo trimestre del 2024, mostrando una forte crescita nei principali indicatori:
- Ricavi totali stimati a 693,2 milioni di dollari, in aumento del 18,5% rispetto all'anno precedente
- Utile netto stimato a 41,4 milioni di dollari, un aumento del 422,5%
- EBITDA rettificato stimato a 180,3 milioni di dollari, in crescita del 26,1%
- Abbonamenti ai centri cresciuti del 5,4% a 826.502
- Entrate medie per abbonamento ai centri aumentate del 12,9% a 815 dollari
L'azienda ha anche riportato un miglioramento della liquidità e una riduzione della leva finanziaria, con una liquidità totale disponibile di 529,8 milioni di dollari e un rapporto stimato di leva debitoria nettamente a 2,4x, in calo rispetto a 3,7x nel terzo trimestre del 2023. Life Time prevede di rifinanziare le proprie obbligazioni esistenti e si aspetta di generare un flusso di cassa libero positivo per il secondo trimestre consecutivo.
Life Time Group Holdings (NYSE: LTH) anunció resultados financieros preliminares estimados para el tercer trimestre de 2024, mostrando un fuerte crecimiento en métricas clave:
- Ingresos totales estimados en 693.2 millones de dólares, un aumento del 18.5% en comparación con el año anterior
- Ingreso neto estimado en 41.4 millones de dólares, un incremento del 422.5%
- EBITDA ajustado estimado en 180.3 millones de dólares, un aumento del 26.1%
- Membresías de centros crecieron un 5.4% a 826,502
- Ingresos promedio por membresía de centro aumentaron un 12.9% a 815 dólares
La compañía también reportó una liquidez mejorada y una reducción de apalancamiento, con una liquidez total disponible de 529.8 millones de dólares y un ratio de apalancamiento de deuda neta estimado en 2.4x, disminuyendo desde 3.7x en el tercer trimestre de 2023. Life Time planea refinanciar sus notas existentes y espera generar flujo de caja libre positivo por segundo trimestre consecutivo.
Life Time Group Holdings (NYSE: LTH)는 2024년 3분기 preliminarily 예상 재무 결과를 발표하며 주요 지표에서 강력한 성장을 보여주었습니다:
- 총 수익 추정치는 6억 9,320만 달러로, 전년 대비 18.5% 증가했습니다.
- 순이익 추정치는 4,140만 달러로, 422.5% 증가했습니다.
- 조정된 EBITDA 추정치는 1억 8,030만 달러로, 26.1% 증가했습니다.
- 센터 회원 수는 5.4% 증가하여 826,502명에 달했습니다.
- 회원당 평균 센터 수익은 12.9% 증가하여 815달러에 이르렀습니다.
회사는 또한 유동성이 개선되고 레버리지가 감소했다고 보고하였으며, 총 사용 가능한 유동성은 5억 2,980만 달러이고, 순 부채 비율 추정치는 2.4배이며, 이는 2023년 3분기 3.7배에서 감소한 수치입니다. Life Time은 기존 채권을 재융자할 계획이며, 두 번째 연속 분기 동안 긍정적인 자유 현금 흐름을 기록할 것으로 기대하고 있습니다.
Life Time Group Holdings (NYSE: LTH) a annoncé des résultats financiers préliminaires estimés pour le troisième trimestre 2024, montrant une forte croissance dans les principaux indicateurs :
- Revenus totaux estimés à 693,2 millions de dollars, en hausse de 18,5 % par rapport à l'année précédente
- Résultat net estimé à 41,4 millions de dollars, soit une augmentation de 422,5 %
- EBITDA ajusté estimé à 180,3 millions de dollars, en hausse de 26,1 %
- Adhésions aux centres ont augmenté de 5,4 % pour atteindre 826 502
- Revenu moyen par abonnement a augmenté de 12,9 % à 815 dollars
L'entreprise a également fait état d'une amélioration de sa liquidité et d'un allégement de son levier financier, avec une liquidité totale disponible de 529,8 millions de dollars et un ratio d'endettement net estimé à 2,4x, en baisse par rapport à 3,7x au troisième trimestre 2023. Life Time prévoit de refinancer ses obligations existantes et s'attend à générer un flux de trésorerie disponible positif pour le deuxième trimestre consécutif.
Life Time Group Holdings (NYSE: LTH) hat vorläufige geschätzte Finanzergebnisse für das dritte Quartal 2024 bekannt gegeben, die ein starkes Wachstum in den wichtigsten Kennzahlen zeigen:
- Gesamtumsatz wird auf 693,2 Millionen Dollar geschätzt, was einem Anstieg von 18,5% im Jahresvergleich entspricht
- Nettoeinkommen wird auf 41,4 Millionen Dollar geschätzt, was einem Anstieg von 422,5% entspricht
- Bereinigtes EBITDA wird auf 180,3 Millionen Dollar geschätzt, was einem Anstieg von 26,1% entspricht
- Mitgliedschaften in den Zentren sind um 5,4% auf 826.502 gewachsen
- Durchschnittlicher Umsatz pro Mitglieder ist um 12,9% auf 815 Dollar gestiegen
Das Unternehmen berichtete auch von einer verbesserten Liquidität und einer reduzierten Verschuldung, mit einem gesamten verfügbaren Liquiditätsbetrag von 529,8 Millionen Dollar und einem geschätzten Netto-Verschuldungsgrad von 2,4x, der von 3,7x im 3. Quartal 2023 gesenkt wurde. Life Time plant, seine bestehenden Anleihen umzuschulden, und erwartet, im zweiten aufeinanderfolgenden Quartal einen positiven freien Cashflow zu erzielen.
- Total revenue increased 18.5% year-over-year to $693.2 million
- Net income grew 422.5% to $41.4 million
- Adjusted EBITDA rose 26.1% to $180.3 million
- Center memberships increased 5.4% to 826,502
- Average center revenue per membership grew 12.9% to $815
- Net debt leverage ratio improved to 2.4x from 3.7x year-over-year
- Total available liquidity of $529.8 million
- Expected to deliver second consecutive quarter of positive free cash flow
- None.
Insights
Life Time Group Holdings' preliminary Q3 2024 results show strong financial performance across key metrics. Total revenue increased 18.5% year-over-year to
The company's net debt leverage ratio improved significantly from 3.7x to 2.4x year-over-year, reflecting a stronger balance sheet. This improvement, along with positive free cash flow, positions Life Time well for its planned debt refinancing.
Key growth drivers include:
- 12.1% increase in comparable center revenue
- 5.4% growth in center memberships
- 12.9% rise in average center revenue per membership
The company's focus on debt reduction and improved cash flow generation are positive signs for long-term financial health. However, investors should note that these are preliminary results and subject to final review.
Life Time's strong Q3 performance reflects broader trends in the health and wellness industry post-pandemic. The 18.5% revenue growth and 5.4% increase in memberships indicate a robust recovery and growing consumer interest in fitness and wellness services.
The company's expansion to 175+ athletic country clubs across the U.S. and Canada demonstrates its market penetration strategy. The 12.9% increase in average revenue per membership suggests successful upselling and cross-selling of premium services.
Life Time's diversification into digital offerings and iconic athletic events positions it well in the evolving fitness landscape. This multi-faceted approach caters to varying consumer preferences and creates additional revenue streams.
The improving financial metrics, particularly the reduced net debt leverage ratio, may enhance investor confidence. However, potential headwinds include rising interest rates and economic uncertainties that could impact consumer discretionary spending on fitness services.
- Total revenue estimated to be
$693.2 million 18.5% over the prior year quarter - Net income estimated to be
$41.4 million 422.5% over the prior year quarter - Adjusted net income estimated to be
$56.3 million 110.9% over the prior year quarter - Adjusted EBITDA estimated to be
$180.3 million 26.1% over the prior year quarter - Reduced net debt leverage ratio to an estimated 2.4 times
- Expected to deliver second consecutive quarter of positive free cash flow before sale-leaseback transactions
Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "We are pleased to announce certain of our preliminary estimated third quarter financial results as we launch our debt refinancing. Our business continues to deliver strong revenue and adjusted EBITDA growth as we further strengthen our balance sheet. We look forward to providing our full financial results on October 24, 2024."
Financial Summary
Three Months Ended | Percent Change | ||||
($ in millions, except memberships and per membership data) | September 30, | ||||
2024 | 2023 | ||||
Total revenue | 18.5 % | ||||
Center operations expenses | 16.2 % | ||||
Rent | 13.5 % | ||||
General, administrative and marketing expenses (1) | 11.7 % | ||||
Net income | 422.5 % | ||||
Adjusted net income | 110.9 % | ||||
Adjusted EBITDA | 26.1 % | ||||
Comparable center revenue (2) | 12.1 % | 11.4 % | |||
Center memberships, end of period | 826,502 | 784,331 | 5.4 % | ||
Average center revenue per center membership | 12.9 % | ||||
(1) | The three months ended September 30, 2024 and 2023 included non-cash share-based compensation expense of |
(2) | The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation. |
Cash Flow Highlights
- We estimate our net cash provided by operating activities for the three months ended September 30, 2024 will be
$151.1 million 31.8% compared to the prior year quarter. - We estimate our free cash flow for the three months ended September 30, 2024 will be
$138.3 million $65 million
Liquidity and Capital Resources
- As of September 30, 2024, our total available liquidity was
$529.8 million $650 million - Our net debt leverage ratio is estimated to have improved to 2.4x as of September 30, 2024, from 3.7x as of September 30, 2023.
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
Unaudited Preliminary Estimated Results for the Three Months Ended September 30, 2024
The Company's unaudited preliminary estimated financial results are based on information available to us as of the date of this press release. The amounts set forth herein are subject to revision based upon the completion of our quarter-end financial closing process, a final review by our management, audit committee and independent registered public accounting firm ("Deloitte") and the preparation of full financial statements and related notes. The unaudited preliminary estimated financial information included in this press release has been prepared by, and is the responsibility of, our management. Deloitte has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the preliminary financial information. Accordingly, Deloitte does not express an opinion or any other form of assurance with respect thereto.
The processes we have used to produce the unaudited preliminary estimated financial information required a greater degree of estimation and assumptions than required during a typical quarter-end closing process. During our completion of our closing process, we may identify additional items that require material adjustments to the unaudited preliminary estimated financial information presented in this press release. The unaudited preliminary estimated financial information should not be considered a substitute for the financial statements for the three months ended September 30, 2024 prepared in accordance with
The preliminary estimated financial results presented in this press release do not purport to indicate our final results of operations for the three months ended September 30, 2024, nor are they necessarily indicative of any future period or any full fiscal year and should be read together with our audited consolidated financial statements and related notes, our unaudited condensed consolidated financial statements and related notes and our other financial information reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024. We undertake no obligation to update or revise these preliminary estimated amounts as a result of new information or otherwise.
Use of Non-GAAP Financial Measures
This press release includes certain financial measures that are not presented in accordance with GAAP, including Adjusted net income, Adjusted EBITDA, free cash flow and net debt and ratios and calculations with respect thereto. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income, net cash provided by operating activities or total debt (defined as long-term debt, net of current portion, plus current maturities of debt) as a measure of financial performance or liquidity or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of the Company's non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
Adjusted net income is defined as net income excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, less the tax effect of these adjustments. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes and depreciation and amortization, excluding the impact of share-based compensation expense as well as (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company's ongoing operations. Free cash flow is defined as net cash provided by operating activities less capital expenditures, net of construction reimbursements, plus net proceeds from sale-leaseback transactions and land sales. Net debt is defined as long-term debt, net of current portion, plus current maturities of debt, excluding fair value adjustments, unamortized debt discounts and issuance costs, minus cash and cash equivalents. Net debt is as of the last day of the respective quarter or year. Our net debt leverage ratio is calculated as our net debt divided by our trailing twelve months of Adjusted EBITDA.
The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company's operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's ongoing operating performance, and management believes that free cash flow assists investors and analysts in evaluating our liquidity and cash flows, including our ability to make principal payments on our indebtedness and to fund our capital expenditures and working capital requirements. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company's presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company's non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company's industry or across different industries.
The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company's results as reported under GAAP.
The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted net income:
Three Months Ended | |||
September 30, | |||
($ in thousands) | 2024 | 2023 | |
Net income | $ 41,355 | $ 7,915 | |
Share-based compensation expense (a) | 11,752 | 14,858 | |
Loss on sale-leaseback transactions (b) | 4,902 | 12,672 | |
Legal settlements (c) | 1,250 | — | |
Asset impairments (d) | — | 5,340 | |
Other (e) | 2,869 | (312) | |
Taxes (f) | (5,850) | (13,789) | |
Adjusted net income | $ 56,278 | $ 26,684 | |
(a) | Share-based compensation expense recognized during the three months ended September 30, 2024 was associated with stock options, restricted stock units, performance stock units, our employee stock purchase plan ("ESPP") that launched on December 1, 2022, and liability-classified awards related to our 2024 short-term incentive plan. Share-based compensation expense recognized during the three months ended September 30, 2023 was associated with stock options, restricted stock units, our ESPP and liability-classified awards related to our 2023 short-term incentive plan. |
(b) | We adjust for the impact of gains and losses on the sale-leaseback of our properties as they do not reflect costs associated with our ongoing operations. |
(c) | We adjust for the impact of unusual legal settlements. These costs are non-recurring in nature and do not reflect costs associated with our normal ongoing operations. |
(d) | Represents non-cash asset impairments of our long-lived assets. |
(e) | Includes (i) a |
(f) | Represents the estimated tax effect of the total adjustments made to arrive at Adjusted net income using the effective income tax rates for the respective periods. |
The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended | |||
September 30, | |||
($ in thousands) | 2024 | 2023 | |
Net income | $ 41,355 | $ 7,915 | |
Interest expense, net of interest income | 36,011 | 33,075 | |
Provision for income taxes | 16,213 | 5,815 | |
Depreciation and amortization | 69,451 | 63,618 | |
Share-based compensation expense (a) | 11,752 | 14,858 | |
Loss on sale-leaseback transactions (b) | 4,902 | 12,672 | |
Legal settlements (c) | 1,250 | — | |
Asset impairments (d) | — | 5,340 | |
Other (e) | (641) | (312) | |
Adjusted EBITDA | $ 180,293 | $ 142,981 | |
(a) – (d) | See the corresponding footnotes to the table immediately above. | |
(e) | Includes (i) (gain) loss on sales of land of | |
The following table provides a reconciliation from net cash provided by operating activities to free cash flow:
Three Months Ended | |||
September 30, | |||
($ in thousands) | 2024 | 2023 | |
Net cash provided by operating activities | $ 151,146 | $ 114,655 | |
Capital expenditures, net of construction reimbursements | (87,106) | (192,889) | |
Proceeds from sale-leaseback transactions | 65,043 | 43,791 | |
Proceeds from land sales | 9,249 | 4,169 | |
Free cash flow | $ 138,332 | $ (30,274) | |
Reconciliation of Net Income to Adjusted EBITDA Trailing Twelve Months | |||
($ in thousands) | |||
(Unaudited) | |||
Twelve | Twelve | ||
Months Ended | Months Ended | ||
September 30, 2024 | September 30, 2023 | ||
Net income | $ 142,761 | $ 66,105 | |
Interest expense, net of interest income | 145,631 | 125,054 | |
Provision for income taxes | 40,472 | 20,831 | |
Depreciation and amortization | 269,398 | 237,270 | |
Share-based compensation expense | 43,564 | 41,106 | |
(Gain) loss on sale-leaseback transactions | (2,463) | 13,966 | |
Legal settlements | 1,250 | — | |
Asset impairments | — | 5,340 | |
Other | (3,090) | (3,523) | |
Adjusted EBITDA | $ 637,523 | $ 506,149 | |
Reconciliation of Net Debt and Leverage Calculation | |||
($ in thousands) | |||
(Unaudited) | |||
Twelve | Twelve | ||
Months Ended | Months Ended | ||
September 30, 2024 | September 30, 2023 | ||
Current maturities of debt | $ 12,439 | $ 64,033 | |
Long-term debt, net of current portion | 1,639,752 | 1,815,965 | |
Total Debt | $ 1,652,191 | $ 1,879,998 | |
Less: Fair value adjustment | 323 | 682 | |
Less: Unamortized debt discounts and issuance costs | (6,462) | (16,531) | |
Less: Cash and cash equivalents | 120,947 | 9,199 | |
Net Debt | $ 1,537,383 | $ 1,886,648 | |
Trailing twelve-month Adjusted EBITDA | 637,523 | 506,149 | |
Net Debt Leverage Ratio | 2.4x | 3.7x | |
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 current expectations for the third quarter of 2024 and trailing twelve months ended September 30, 2024 financial results, its intention to refinance its existing senior secured notes and senior notes, growth, cost efficiencies and margin expansion, improvements to its balance sheet, net debt and leverage ratio, capital expenditures and free cash flow, consumer demand, industry and economic trends, taxes, and rent expense. 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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