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Life Time Group Holdings Reports Strong Performance for Q4 and Full Year 2024

Life Time Group Holdings, Inc. has recently disclosed their financial performance for the fourth quarter and the full year ended December 31, 2024, reflecting a strong upward trajectory in their financial metrics. The report highlights a total revenue increase of 18.7% to $663.3 million for the fourth quarter, with the annual total rising by 18.2% to $2.621 billion. This growth is attributed to a significant rise in membership dues combined with increased in-center revenue.

The company also showcased a remarkable net income leap of 57% for Q4, amounting to $37.2 million compared to $23.7 million in the previous year. For the year, net income surged by over 105%, reaching $156.2 million. These results are positioned against a backdrop of enhanced member engagement and record levels of membership retention—a testament to the effective operational strategies employed by Life Time.

Key Financial Highlights

• - Adjusted Net Income: Increased by 58.7% for Q4 to $60.3 million and by 54.6% for the year to $200.5 million.
• - Adjusted EBITDA: Grew by 28.5% for Q4 to $177 million and by 26.1% for the year to $676.8 million.
• - Diluted Earnings Per Share (EPS): Up to $0.17 for Q4 and $0.74 for the full year.

The adjustments in financials reflect a notable improvement in the flow-through of increased revenues and operational profitability, supported by structural enhancements across their business model. Bahram Akradi, Founder and CEO, expressed satisfaction with the performance, emphasizing the dedication of team members in achieving these results.

Membership Growth and Engagement

Life Time reported an increase in center memberships by 6.4%, totaling 812,062 members as of the end of Q4. This growth has been spurred by new center openings and improved retention rates, resulting in a record average revenue per membership of $796, compared to $711 from the previous year.

This upward momentum is paired with enhanced in-center offerings and higher membership utilization, driving revenue growth that surpasses prior expectations. The company attributes its success to a strong value proposition for members, fostering a supportive community while delivering unparalleled health and wellness experiences.

Financial Strategy and Future Outlook

Life Time's commitment to robust financial management is evident as the net debt leverage ratio improved to under 2.3 times. Moreover, the company is optimistic about 2025, projecting revenue growth between $2.925 and $2.975 billion, alongside goals to continue expanding their center network.

With plans to open 10 to 12 new centers in the upcoming year, Life Time aims to capitalize on incoming trends in healthcare and wellness while maintaining a powerhouse presence in the market. The strategic focus on member engagement and operational efficiency remains central to Life Time's mission, promoting healthy living across all demographics, from the youth to those over 90 years old.

Conclusion

In conclusion, Life Time Group Holdings has positioned itself strongly within the health and wellness industry with their recent financial results, affirming their trajectory towards success through continuous member engagement, innovative service offerings, and detailed financial stewardship. The 2024 achievements set a promising foundation for future growth as Life Time gears up for another transformative year ahead.