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Life Time Reports Impressive Preliminary Financial Results

Chanhassen, Minnesota - Life Time Group Holdings, Inc. (NYSE: LTH) recently revealed its preliminary financial estimates for the fourth quarter and full-year of 2024, showcasing substantial growth in revenues and net income. The company anticipates fourth-quarter revenues between $661 million and $663 million, representing a remarkable 18.5% increase compared to the previous year. For the full year, projections stand at $2.619 billion to $2.621 billion, marking an 18.2% rise.

Life Time’s net income is estimated to experience a staggering increase of 35%, reaching between $31 million and $33 million in the fourth quarter, and a 98.4% leap for the year to approximately $150 million to $152 million. The diluted earnings per share (EPS) is expected to rise to $0.14 to $0.15 for the fourth quarter and $0.71 to $0.72 for the fiscal year.

The company’s adjusted net income is projected to grow by 42.1% for Q4, approximating $52 million to $56 million, while the adjusted EBITDA is expected to increase by 27.1% to a range of $174 million to $176 million. This trajectory underlines Life Time’s robust financial health and operational efficiency amid increasing member engagement and retention rates.

Key Financial Metrics

As outlined by Bahram Akradi, the Founder, Chairman, and CEO of Life Time, the impressive 2024 results reflect the ever-growing appeal of their health clubs and services, which continue to attract a vibrant membership base. The fourth-quarter projections highlight:

• - Total Revenue: $661 - $663 million (18.5% increase)
• - Net Income: $31 - $33 million (35% increase)
• - Adjusted Net Income: $52 - $56 million (42.1% increase)
• - Adjusted EBITDA: $174 - $176 million (27.1% increase)

The company’s membership numbers reached 812,062, up by 6.4% from 2023. This growth in memberships significantly contribute to their revenue streams and enhances overall profitability. Furthermore, the average revenue per membership has also improved, showcasing effective retention strategies and engagement practices.

Guidance for Fiscal Year 2025

In addition to the strong results from 2024, Life Time has introduced key guidance for 2025, forecasting total revenues to range from $2.910 billion to $2.970 billion, expecting a 12.2% growth. The net income is anticipated to climb to between $262 million and $269 million, showcasing a significant 75.8% increase year-over-year.

Life Time aims to sustain positive free cash flow and maintain a net debt to Adjusted EBITDA leverage ratio around 2.25 times. The company also plans to open 10-12 new centers while striving for comparable center revenue growth between 7% to 8%. Moreover, strategies around enhanced membership services and operational efficiencies are expected to propel their adjusted EBITDA growth in fiscal 2025.

Conclusion

Life Time is diligently establishing itself as a leader in the health and fitness industry, continually investing in member experiences and expanding its reach through new centers and enhanced services. The positive preliminary results for 2024 and optimistic guidance positioning for 2025 reflect a robust growth strategy that many industry experts will be keen to watch in the upcoming fiscal year.

Investment in memberships, coupled with a commitment to quality service, suggests that Life Time is well-poised to maintain its upward trajectory in the evolving fitness landscape.