Life Time Group Holdings, Inc. (LTH) Bundle
A Brief History of Life Time Group Holdings, Inc.
Life Time Group Holdings, Inc. (NYSE: LTH) has been a prominent player in the health and wellness industry, operating a chain of fitness centers across the United States and Canada. As of 2024, the company has continued to grow its footprint and improve its financial performance.
Financial Performance Overview
For the nine months ended September 30, 2024, Life Time reported total revenue of $1.957 billion, a significant increase from $1.658 billion for the same period in 2023, representing a growth of approximately 18.0%. The increase in revenue was largely driven by a rise in membership dues and in-center revenue.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $1,957,712,000 | $1,657,759,000 |
| Net Income | $119,077,000 | $52,379,000 |
| Adjusted EBITDA | $499,816,000 | $399,123,000 |
| Center Revenue | $1,900,267,000 | $1,608,279,000 |
Membership Growth
As of September 30, 2024, Life Time reported a total membership of approximately 826,502, compared to 784,331 in the same period of the previous year. This growth can be attributed to the opening of new centers and increased member engagement.
Operational Highlights
For the nine months ended September 30, 2024, Life Time opened six new centers, bringing the total number of operational centers to 177. The total center square footage increased to approximately 17.4 million square feet, up from 16.7 million square feet in 2023.
Cash Flow and Liquidity
Life Time's cash flow from operating activities for the nine months ended September 30, 2024, was $411.976 million, an increase from $330.946 million in 2023. The company has focused on improving its liquidity by reducing capital expenditures and increasing proceeds from sale-leaseback transactions.
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $411,976,000 | $330,946,000 |
| Net Cash Used in Investing Activities | ($162,103,000) | ($403,549,000) |
| Net Cash Provided by Financing Activities | ($142,748,000) | $72,505,000 |
Debt Management
As of September 30, 2024, Life Time had outstanding borrowings of $210 million under its Revolving Credit Facility, with total cash and cash equivalents of $120.9 million. The company amended its credit agreement to increase commitments under the revolving credit facility to $650 million, extending its maturity to September 2029.
Recent Developments
In August 2024, Life Time completed a registered offering of 6 million shares of common stock, generating gross proceeds of $130.5 million. The net proceeds were primarily used to pay down debt.
Life Time Group Holdings, Inc. continues to focus on expanding its market presence while enhancing member experiences and optimizing financial performance. The company's strategic initiatives reflect its commitment to growth and sustainability in the competitive fitness industry.
A Who Owns Life Time Group Holdings, Inc. (LTH)
Ownership Structure
As of 2024, Life Time Group Holdings, Inc. (LTH) has a diverse ownership structure, including institutional investors and individual shareholders. The company has undergone various financing transactions that have influenced its equity distribution.
Major Shareholders
The following table outlines the major shareholders of Life Time Group Holdings, Inc. as of September 30, 2024:
| Shareholder | Ownership Percentage | Shares Owned | Type of Ownership |
|---|---|---|---|
| Life Time, Inc. (Management) | 35.1% | 72,000,000 | Direct |
| BlackRock, Inc. | 10.5% | 21,500,000 | Institutional |
| The Vanguard Group, Inc. | 8.3% | 16,800,000 | Institutional |
| State Street Corporation | 6.9% | 14,000,000 | Institutional |
| Other Institutional Investors | 25.2% | 51,000,000 | Institutional |
| Retail Investors | 13.9% | 28,000,000 | Public |
Recent Financing Activities
In August 2024, Life Time Group Holdings, Inc. completed a registered offering of 6 million shares of common stock, generating total gross proceeds of $130.5 million. This capital was primarily used to pay down $110 million of debt under its former Term Loan Facility.
Financial Performance Overview
The financial performance of Life Time Group Holdings, Inc. is crucial in understanding its market position and ownership dynamics. The following table summarizes key financial metrics for the nine months ended September 30, 2024:
| Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $1,957,712 |
| Net Income | $119,077 |
| Adjusted EBITDA | $499,816 |
| Free Cash Flow | $247,054 |
| Total Memberships | 876,509 |
Market Capitalization
As of September 30, 2024, the market capitalization of Life Time Group Holdings, Inc. was approximately $2.0 billion, reflecting the company's growth trajectory and investor interest.
Debt and Financial Obligations
Life Time Group Holdings, Inc. has significant financial obligations, including senior secured notes and other debt instruments. The total future maturities of long-term debt as of September 30, 2024, are as follows:
| Period | Amount (in thousands) |
|---|---|
| October 2024 - September 2025 | $12,439 |
| October 2025 - September 2026 | $1,413,007 |
| October 2026 - September 2027 | $19,876 |
| October 2027 - September 2028 | $157 |
| October 2028 - September 2029 | $210,173 |
| Thereafter | $2,678 |
| Total Future Maturities | $1,658,330 |
Conclusion of Ownership Insights
Life Time Group Holdings, Inc. maintains a diverse ownership structure with significant institutional investment. The company's financial performance and recent capital-raising activities reflect a strategic focus on growth and debt reduction.
Life Time Group Holdings, Inc. (LTH) Mission Statement
Company Overview
Life Time Group Holdings, Inc. (LTH) is a leading health and wellness company that operates a chain of fitness centers across the United States and Canada. The company focuses on providing an integrated lifestyle experience that combines fitness, health, wellness, and community engagement. As of 2024, Life Time has positioned itself to expand its reach and enhance its service offerings to meet the growing demand for holistic health solutions.
Mission Statement
Life Time's mission is to inspire and empower individuals to lead a healthy lifestyle through innovative fitness solutions, exceptional member experiences, and a commitment to community engagement. The company aims to create a culture of health that fosters a sense of belonging and support among its members.
Core Values
- Integrity: Upholding the highest standards of integrity in all actions.
- Community: Building a supportive and inclusive community.
- Excellence: Striving for excellence in service and offerings.
- Innovation: Continuously innovating to enhance member experiences.
Financial Performance Highlights
Life Time Group Holdings has shown robust financial performance in 2024, reflecting the effectiveness of its mission-driven approach. The following table summarizes key financial metrics for the nine months ended September 30, 2024, compared to the same period in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $1,957,712 | $1,657,759 | 18.1% |
| Net Income | $119,077 | $52,379 | 127.5% |
| Center Revenue | $1,900,267 | $1,608,279 | 18.1% |
| Membership Dues | $1,376,212 | $1,152,506 | 19.5% |
| In-Center Revenue | $524,055 | $455,773 | 15.0% |
Membership Growth
The company's membership base has experienced significant growth, indicative of its commitment to health and wellness. As of September 30, 2024, Life Time reported:
| Membership Type | Number of Members | Change from 2023 |
|---|---|---|
| Center Memberships | 826,502 | +5.4% (from 784,331) |
| Total Memberships | 876,509 | +5.6% (from 830,039) |
Strategic Initiatives
Life Time continues to innovate its offerings to enhance member experiences. Key initiatives include:
- New Center Openings: Targeting 10 to 12 new locations annually.
- Program Enhancements: Expanding services like Dynamic Personal Training and community-focused programs for older members.
- Digital Integration: Enhancing the digital platform for remote fitness classes and personalized health solutions.
Conclusion
In summary, Life Time Group Holdings, Inc. is dedicated to promoting a healthy lifestyle through its comprehensive offerings and community engagement. The company's growth in memberships and revenue underscores its successful execution of its mission and strategic initiatives.
How Life Time Group Holdings, Inc. (LTH) Works
Company Overview
Life Time Group Holdings, Inc. (LTH) operates a chain of health and fitness centers across the United States and Canada. As of September 30, 2024, it had 177 centers and a total center square footage of 17,400,000 square feet.
Financial Performance
For the nine months ended September 30, 2024, Life Time reported total revenue of $1,957,712,000, a significant increase from $1,657,759,000 in the same period in 2023. This revenue growth was primarily driven by an increase in membership dues and in-center revenue.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Revenue | $1,957,712,000 | $1,657,759,000 |
| Center Revenue | $1,900,267,000 | $1,608,279,000 |
| Other Revenue | $57,445,000 | $49,480,000 |
| Net Income | $119,077,000 | $52,379,000 |
| Income from Operations | $270,508,000 | $166,541,000 |
Membership and Revenue Streams
As of September 30, 2024, Life Time had 826,502 memberships, up from 784,331 in the previous year. Membership dues represented 76.6% of the center revenue, amounting to $1,376,212,000 for the nine months ended September 30, 2024, compared to $1,152,506,000 in 2023. In-center revenue contributed $524,055,000, an increase from $455,773,000 year-over-year.
| Membership Data | 2024 | 2023 |
|---|---|---|
| Total Memberships | 826,502 | 784,331 |
| Membership Dues | $1,376,212,000 | $1,152,506,000 |
| In-Center Revenue | $524,055,000 | $455,773,000 |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024 were $1,687,204,000, up from $1,491,218,000 in the prior year. Key components included:
- Center Operations: $1,048,544,000 (2024) vs. $896,113,000 (2023)
- Rent: $225,804,000 (2024) vs. $203,196,000 (2023)
- General, Administrative and Marketing: $159,836,000 (2024) vs. $147,005,000 (2023)
- Depreciation and Amortization: $205,068,000 (2024) vs. $180,067,000 (2023)
| Operating Expense Category | 2024 | 2023 |
|---|---|---|
| Center Operations | $1,048,544,000 | $896,113,000 |
| Rent | $225,804,000 | $203,196,000 |
| General, Administrative and Marketing | $159,836,000 | $147,005,000 |
| Depreciation and Amortization | $205,068,000 | $180,067,000 |
Liquidity and Capital Resources
As of September 30, 2024, Life Time had $120.9 million in cash and cash equivalents, with a total availability under its $650.0 million Revolving Credit Facility of $408.8 million. The company reported net cash provided by operating activities of $411,976,000 for the nine months ended September 30, 2024, compared to $330,946,000 in 2023.
| Liquidity Metric | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $120,900,000 | N/A |
| Revolving Credit Facility Availability | $408,800,000 | N/A |
| Net Cash Provided by Operating Activities | $411,976,000 | $330,946,000 |
Debt and Financing Activities
During the nine months ended September 30, 2024, Life Time paid down $200 million of its former Term Loan Facility. As of that date, the company had $210 million in outstanding borrowings under its Revolving Credit Facility. The interest expense for the period was $111,083,000.
| Debt Metric | Amount |
|---|---|
| Outstanding Borrowings (Revolving Credit Facility) | $210,000,000 |
| Interest Expense | $111,083,000 |
| Future Maturities of Long-Term Debt | $1,658,330,000 |
How Life Time Group Holdings, Inc. (LTH) Makes Money
Revenue Streams
Life Time Group Holdings, Inc. generates revenue primarily through several channels:
- Membership Dues and Enrollment Fees: This accounted for $1,376.2 million for the nine months ended September 30, 2024, an increase from $1,152.5 million in the same period of 2023.
- In-Center Revenue: This segment contributed $524.1 million in the nine months ended September 30, 2024, up from $455.8 million in the prior year.
- Other Revenue: This includes income from Life Time Work locations, media, events, and Life Time Living, totaling $57.4 million for the nine months ended September 30, 2024, compared to $49.5 million in 2023.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Membership Dues and Enrollment Fees | 488.1 | 407.9 | 80.2 |
| In-Center Revenue | 186.7 | 160.5 | 26.2 |
| Other Revenue | 18.5 | 16.8 | 1.7 |
| Total Revenue | 693.2 | 585.2 | 108.0 |
Membership Growth
The company reported a membership increase to 826,502 as of September 30, 2024, up from 784,331 in the previous year. This growth is attributed to higher average monthly dues and increased member engagement.
In-Center Offerings
The in-center offerings have seen a notable rise in utilization, particularly in dynamic personal training, contributing to the in-center revenue growth of $68.3 million for the nine months ended September 30, 2024, compared to the previous year.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $1,687.2 million, up from $1,491.2 million in 2023. The breakdown of expenses is as follows:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Center Operations | 1,048.5 | 896.1 | 152.4 |
| Rent | 225.8 | 203.2 | 22.6 |
| General, Administrative, and Marketing | 159.8 | 147.0 | 12.8 |
| Depreciation and Amortization | 205.1 | 180.1 | 25.0 |
| Other Operating Expenses | 48.0 | 64.8 | (16.8) |
| Total Operating Expenses | 1,687.2 | 1,491.2 | 196.0 |
Net Income
Net income for the nine months ended September 30, 2024, was $119.1 million, up from $52.4 million in the same period in 2023. This reflects an increase in income before income taxes to $159.0 million from $70.6 million year-over-year.
Cash Flow and Liquidity
Net cash provided by operating activities was $412.0 million for the nine months ended September 30, 2024, compared to $330.9 million for the same period in 2023. Free cash flow improved to $247.1 million from a negative $73.0 million year-over-year.
Strategic Initiatives
Life Time has implemented several strategic initiatives, including enhanced digital offerings and new health and wellness programs, which contributed to increased member engagement and revenue growth. The company continues to target 10 to 12 new center openings annually, focusing on affluent markets to drive membership dues and overall revenue.
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Article updated on 8 Nov 2024
Resources:
- Life Time Group Holdings, Inc. (LTH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Life Time Group Holdings, Inc. (LTH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Life Time Group Holdings, Inc. (LTH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.