Life Time Fitness, Inc. (NYSE: LTM), The Healthy Way of Life Company, today reported its financial results for the third quarter ended September 30, 2012.
Third quarter 2012 revenue grew 11.1% to $294.9 million from $265.4 million during the same period last year. Total revenue for the first nine months of 2012 grew 11.7% to $851.6 million from $762.8 million during the same period last year.
Net income for the quarter was $32.1 million, or $0.77 per diluted share, compared to net income of $27.0 million, or $0.66 per diluted share, for 3Q 2011. Net income for the first nine months of 2012 was $88.1 million, or $2.10 per diluted share, compared to net income of $72.8 million, or $1.78 per diluted share, for the prior-year period.
“We saw continued earnings growth, cash flow and margin improvement in the third quarter, and are pleased with our revenue metrics, which were highlighted by double-digit growth in total revenue and in-center revenue,” said Bahram Akradi, Life Time chairman, president and chief executive officer. “We remain focused on building our Healthy Way of Life brand by making strategic investments in programs and services that we see as powerful opportunities to enhance our members’ experience, while driving membership acquisition and retention. Our business model is strong, and we are steadfast in our focus on driving long-term growth and success.”During the quarter, the Company completed the integration and rebranding activities associated with the acquired Lifestyle Family Fitness facilities. Additionally, the Company expanded plans in connection with its previously announced acquisition of the Atlanta-based Racquet Club of the South by incorporating enhanced fitness and nutrition programs, services and membership opportunities as part of the overall renovation of the tennis complex. Three and Nine Months Ended September 30, 2012, Financial Highlights: Total revenue for the third quarter grew 11.1% to $294.9 million from $265.4 million in 3Q 2011. Total revenue for the first nine months of 2012 grew 11.7% to $851.6 million from $762.8 million during the same period last year.
|(Period-over-period growth)|| 3Q 2012 vs. 3Q 2011
(in millions except revenue per membership data)
||$187.6 vs. $171.5 (up 9.4%)|
||$90.5 vs. $80.7 (up 12.1%)|
||$12.9 vs. $8.8 (up 47.1%)|
||$408 vs. $395 (up 3.2%)|
||$131 vs. $124 (up 5.4%)|
|(Period-over-period growth)|| YTD 2012 vs. YTD 2011
(in millions except revenue per membership data)
||$547.9 vs. $496.5 (up 10.4%)|
||$265.3 vs. $234.7 (up 13.0%)|
||$26.7 vs. $17.2 (up 55.0%)|
||$1,194 vs. $1,163 (up 2.7%)|
||$384 vs. $366 (up 4.9%)|
- Excluding memberships acquired in connection with the Lifestyle Family Fitness transaction, memberships grew 3.0%.
- Attrition in 3Q 2012 was 10.3% compared to 9.0% in the prior-year period. Excluding the Lifestyle Family Fitness transaction, 3Q 2012 attrition was 9.8%.
- Attrition for the trailing 12-month period ended September 30, 2012, was 37.3% compared to trailing 12-month attrition of 35.3% at September 30, 2011. Excluding the impact of the Lifestyle Family Fitness transaction, trailing 12-month attrition was 36.3% .
- Income from operations margin was 20.1% for 3Q 2012 compared to 18.8% in the prior-year period.
- Income from operations margin for the first nine months of 2012 was 19.3% compared to 17.9% in the prior year period.
|(Expense as a percent of total revenue)||3Q 2012 vs. 3Q 2011||YTD 2012 vs. YTD 2011|
57.5% vs. 60.0%
|58.4% vs. 61.0%|
||3.0% vs. 3.4%||3.4% vs. 3.5%|
||4.6% vs. 4.7%||4.8% vs. 4.8%|
||4.8% vs. 3.5%||4.1% vs. 3.1%|
||10.0% vs. 9.6%||10.0% vs. 9.7%|
- As a percentage of total revenue, EBITDA in 3Q 2012 was 30.2% compared to 28.5% in 3Q 2011.
- For the first nine months of 2012, EBITDA, as a percentage of total revenue, was 29.4% compared to 27.7% in the prior-year period.
- Revenue is expected to be up 11-12%, or $1.127-1.137 billion (from $1.122-1.137 billion), driven primarily by price and mix optimization, square footage expansion, and growth in in-center and ancillary business revenue.
- Net income is expected to be up 24-25%, or $114.5-116.0 million (from $113.0-116.0 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 $2.73-2.76 (from $2.70-2.76), which includes $0.04 impact of anticipated performance share-based compensation expense.
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