Life Time Fitness, Inc. (NYSE:LTM), The Healthy Way of Life Company, today reported its financial results for the second quarter ended June 30, 2012.
Second quarter 2012 revenue grew 12.3% to $288.3 million from $256.7 million during the same period last year. Total revenue for the first six months of 2012 grew 11.9% to $556.8 million from $497.3 million during the same period last year.
Net income for the quarter was $30.3 million, or $0.73 per diluted share, compared to net income of $24.9 million, or $0.61 per diluted share, for 2Q 2011. Net income for the first six months of 2012 was $56.0 million, or $1.34 per diluted share, compared to net income of $45.8 million, or $1.12 per diluted share, for the prior-year period.
“I am pleased with our second quarter operating results, which included strong top-line and in-center revenue expansion, and net income growth,” said Bahram Akradi, chairman, president and chief executive officer. “Our results also reflect the ongoing progress we’ve made in driving our member experience and connectivity objectives. Our focus remains on growing our Healthy Way of Life Company and brand by providing our members and customers with programs and services – both inside and outside of our centers – that help them achieve their goals. Our business model is strong and the investments we are making further position Life Time for long-term growth and success.”During the quarter, Life Time opened new centers in Tulsa and Atlanta, marking its first and sixth locations in Oklahoma and Georgia, respectively. The Company also continued the integration, remodeling and rebranding activities associated with the acquired Lifestyle Family Fitness facilities in Indiana, Ohio and North Carolina. Life Time now operates 105 centers in the United States and Canada. Three and Six Months Ended June 30, 2012, Financial Highlights: Total revenue for the second quarter grew 12.3% to $288.3 million from $256.7 million in 2Q 2011. Total revenue for the first six months of 2012 grew 11.9% to $556.8 million from $497.3 million during the same period last year.
|(Period-over-period growth)||2Q 2012 vs. 2Q 2011 (in millions except revenue per membership data)|
||$184.9 vs. $167.0 (up 10.7%)|
||$90.1 vs. $80.3 (up 12.2%)|
||$9.4 vs. $4.7 (up 99.4%)|
||$400 vs. $389 (up 3.0%)|
||$129 vs. $124 (up 4.4%)|
|(Period-over-period growth)||YTD 2012 vs. YTD 2011 (in millions except revenue per membership data)|
||$360.4 vs. $325.0 (up 10.9%)|
||$174.7 vs. $154.0 (up 13.5%)|
||$13.8 vs. $8.4 (up 63.2%)|
||$786 vs. $768 (up 2.4%)|
||$253 vs. $242 (up 4.6%)|
- Excluding memberships acquired in connection with the Lifestyle Family Fitness transaction, memberships grew 2.8%.
- Attrition in 2Q 2012 was 8.6% compared to 8.1% in the prior-year period. Excluding the Lifestyle Family Fitness transaction, 2Q 2012 attrition was 8.2%. The increase in attrition was driven primarily by the impact of this transaction and pricing actions taken in late 2011/early 2012.
- Attrition for the trailing 12-month period ended June 30, 2012, was 36.0% compared to trailing 12-month attrition of 35.8% at June 30, 2011. Excluding the impact of the Lifestyle Family Fitness transaction, trailing 12-month attrition was 35.5%.
- Income from operations margin was 19.6% for 2Q 2012 compared to 18.0% in the prior-year period.
- Income from operations margin for the first six months of 2012 was 18.8% compared to 17.4% in the prior year period.
|(Expense as a percent of total revenue)||2Q 2012 vs. 2Q 2011||YTD 2012 vs. YTD 2011|
||57.8% vs. 61.0%||58.8% vs. 61.6%|
||3.4% vs. 3.5%||3.6% vs. 3.5%|
||4.8% vs. 4.7%||4.9% vs. 5.0%|
||4.4% vs. 3.1%||3.8% vs. 2.8%|
||10.0% vs. 9.7%||10.1% vs. 9.7%|
- As a percentage of total revenue, EBITDA in 2Q 2012 was 29.7% compared to 27.8% in 2Q 2011.
- For the first six months of 2012, EBITDA, as a percentage of total revenue, was 29.0% compared to 27.2% in the prior-year period.
- Revenue is expected to be up 11-12%, or $1.122-1.137 billion (up from 10-12%, or $1.110-1.135 billion), driven primarily by price and mix optimization, square foot expansion, and growth in in-center and ancillary business revenue.
- Net income is expected to be up 22-25%, or $113.0-116.0 million (up from 21-25%, or $112.0-115.5 million), driven by revenue growth and cost efficiencies. The Company included $1.6 million (after tax) of anticipated performance share-based compensation expense in this net income guidance.
- Diluted earnings per common share is expected to be $2.70-2.76 (up from $2.65-2.73), which includes $0.04 impact of anticipated performance share-based compensation expense.
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