Life Time Reports Preliminary Estimated Fourth Quarter and Full-Year 2024 Financial Results and Introduces Select Fiscal 2025 Guidance

PR Newswire

CHANHASSEN, Minn., Jan. 16, 2025

   -- Total revenue estimated to increase 18.5% to $661-$663 million for the 
      fourth quarter and 18.2% to $2,619-$2,621 million for the year* 
 
   -- Net income estimated to increase 35.0% to $31-$33 million for the fourth 
      quarter and 98.4% to $150-$152 million for the year* 
 
   -- Diluted EPS estimated to increase to $0.14-$0.15 for the fourth quarter 
      and $0.71-$0.72 for the year 
 
   -- Adjusted net income estimated to increase 42.1% to $52-$56 million for 
      the fourth quarter and 49.6% to $192-$196 million for the year* 
 
   -- Adjusted EBITDA estimated to increase 27.1% to $174-$176 million for the 
      fourth quarter and 25.7% to $674-$676 million for the year* 
 
   -- Adjusted diluted EPS estimated to increase to $0.24-$0.25 for the fourth 
      quarter and $0.91-$0.92 for the year 
 
   -- Net debt to Adjusted EBITDA leverage ratio estimated to be reduced to 
      approximately 2.27 times 
 
   -- FY 2025 total revenue estimated to increase 12.2% to $2,910-$2,970 
      million* 
 
   -- FY 2025 net income estimated to increase 75.8% to $262-$269 million* 
 
   -- FY 2025 Adjusted EBITDA estimated to increase 14.1% to $760-$780 million* 
 
*  Percentages are at the midpoint of our estimated results and 2025 guidance 
 

CHANHASSEN, Minn., Jan. 16, 2025 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE: LTH) today announced its preliminary estimated unaudited financial results for the fourth quarter and full-year fiscal 2024. The Company also introduced guidance for full-year fiscal 2025. The Company plans to release its full fiscal year 2024 results on February 27, 2025.

Bahram Akradi, Founder, Chairman and CEO, stated: "I am extremely proud of our financial performance in 2024. Our fourth quarter and full-year results continue to demonstrate the strong desirability for our athletic country clubs, programs and services. This has resulted in record levels of member engagement and retention, both of which are important drivers of our growth strategy. The growth in our memberships, membership dues revenue, and our in-center revenue, combined with our efficient operating model, has fueled our expanding margins. As reflected in our 2025 guidance, we are well-positioned to build upon the success of 2024."

Select Preliminary Financial Information

 
                    Three Months Ended                            Year Ended 
                                           -------------                              ------------- 
                       December 31,                              December 31, 
($ in millions, 
except                                        Percent                                    Percent 
memberships and                            Change (Using                              Change (Using 
per membership        2024         2023     midpoint as         2024          2023     midpoint as 
data)             (Preliminary)  (Actual)  illustrative)    (Preliminary)   (Actual)  illustrative) 
                  -------------  --------  -------------  ----------------  --------  ------------- 
Total revenue     $661 -- $663    $558.8      18.5 %      $2,619 -- $2,621  $2,216.6     18.2 % 
Rent               $79 -- $80     $71.9       10.6 %        $305 -- $306     $275.1      11.1 % 
Net income         $31 -- $33     $23.7       35.0 %        $150 -- $152     $76.1       98.4 % 
Adjusted net 
 income            $52 -- $56     $38.0       42.1 %        $192 -- $196     $129.7      49.6 % 
Adjusted EBITDA   $174 -- $176    $137.7      27.1 %        $674 -- $676     $536.8      25.7 % 
Comparable 
 center revenue     13.1% -- 
 (1)                  13.5%       11.7 %                   12.0% -- 12.2%    15.3 % 
Center 
 memberships, 
 end of period       812,062     763,216       6.4 %          812,062       763,216       6.4 % 
Average center 
 revenue per 
 center 
 membership       $793 -- $796     $711       11.7 %      $3,158 -- $3,160   $2,810      12.4 % 
 
 
 
(1)  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. 
 

Select Fiscal 2025 Annual Guidance

The Company is also introducing the following select financial guidance for full-year fiscal 2025:

 
                                                         Percent 
                     Year Ending        Year Ended        Change 
                  December 31, 2025  December 31, 2024    (Using 
($ in millions)      (Guidance)        (Preliminary)    midpoints) 
                  -----------------  -----------------  ---------- 
Revenue           $2,910 -- $2,970   $2,619 -- $2,621     12.2 % 
Net income          $262 -- $269       $150 -- $152       75.8 % 
Adjusted EBITDA     $760 -- $780       $674 -- $676       14.1 % 
Rent                $337 -- $347       $305 -- $306       11.9 % 
 

The Company also expects to achieve the following operational and financial results for full-year fiscal 2025:

   -- Maintain positive free cash flow (as defined below) on an annual basis 
      and manage our net debt to Adjusted EBITDA leverage ratio to achieve and 
      then maintain at or below 2.25 times. 
 
   -- Open 10-12 new centers. 
 
   -- Comparable center revenue growth of 7% to 8%. 
 
   -- Adjusted EBITDA growth driven primarily by dues revenue growth and 
      expanded operating leverage. 
 
   -- Rent to include non-cash rent expense of $35 million to $38 million. 
 
   -- Interest expense, net of interest income, of approximately $90 million to 
      $94 million, reflecting reduced debt levels compared to the prior year 
      and the debt refinancing completed in the fourth quarter of fiscal 2024. 

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 the United States and Canada. The health and wellness pioneer also delivers a range of healthy way of life programs and information via its complimentary Life Time Digital app. The Company's healthy living, healthy aging, healthy entertainment communities and ecosystem serve people 90 days to 90+ years old and is supported by a team of more than 42,000 dedicated professionals. In addition to delivering the best programs and experiences through its clubs, Life Time owns and produces nearly 30 of the most iconic athletic events in the country.

Unaudited Preliminary Estimated Results for the Three Months and Year-Ended December 31, 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 year-end financial closing process and audit, 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 year-end closing process. During our completion of our closing process and audit, we may identify additional items that require 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 audited consolidated financial statements and related notes for the year ended December 31, 2024, once they become available.

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 December 31, 2024, or the year ended December 31, 2024, nor are they necessarily indicative of any future period 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, June 30, 2024, and September 30, 2024.

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 net income per common share, 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 income per common share, 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

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