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Life Time Fitness Announces Fourth Quarter And Full-Year 2012 Financial Results

Stocks in this article: LTM

The Company cautions investors not to place undue reliance on any such forward-looking statements, which speak only as of the date on which such statements were made. The Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date. All remarks made during the Company’s preliminary financial results webcast will be current at the time of the webcast and the Company is under no obligation to update the recording.

LIFE TIME FITNESS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
   
December 31, 2012 December 31, 2011
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 16,499 $ 7,487
Accounts receivable, net 9,272 6,156
Center operating supplies and inventories 27,240 21,600
Prepaid expenses and other current assets 26,826 22,905
Deferred membership origination costs 11,664 12,525
Deferred income taxes 8,813 9,850
Income tax receivable   -     5,022  
Total current assets 100,314 85,545
PROPERTY AND EQUIPMENT, net 1,858,666 1,740,434
RESTRICTED CASH 2,087 1,088
DEFERRED MEMBERSHIP ORIGINATION COSTS 6,820 8,131
GOODWILL 37,176 25,550
OTHER ASSETS   67,111     55,080  
TOTAL ASSETS $ 2,072,174   $ 1,915,828  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 12,603 $ 6,849
Accounts payable 32,140 22,035
Construction accounts payable 25,208 21,892
Accrued expenses 63,333 56,284
Deferred revenue   34,753     33,898  
Total current liabilities 168,037 140,958
LONG-TERM DEBT, net of current portion 691,867 679,449
DEFERRED RENT LIABILITY 22,490 19,370
DEFERRED INCOME TAXES 95,509 100,582
DEFERRED REVENUE 6,840 8,203
OTHER LIABILITIES   14,514     9,793  
Total liabilities   999,257     958,355  
SHAREHOLDERS' EQUITY:
Common stock 864 849
Additional paid-in capital 447,912 441,813
Retained earnings 628,942 517,404
Accumulated other comprehensive loss   (4,801 )   (2,593 )
Total shareholders' equity   1,072,917     957,473  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,072,174   $ 1,915,828  
 
LIFE TIME FITNESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data)
       
For the Three Months Ended December 31, For the Year Ended December 31,
2012 2011 2012 2011
(Unaudited) (Unaudited) (Unaudited)
REVENUE:
Membership dues $ 179,663 $ 166,909 $ 727,596 $ 663,439
Enrollment fees 3,604 4,157 15,346 18,447
In-center revenue   82,988     73,745     348,265     308,474  
Total center revenue 266,255 244,811 1,091,207 990,360
Other revenue   9,068     6,103     35,740     23,314  
Total revenue   275,323     250,914     1,126,947     1,013,674  
OPERATING EXPENSES:
Center operations 159,097 149,436 655,887 614,949
Advertising and marketing 11,060 9,818 39,931 36,318
General and administrative 14,525 17,429 55,715 54,736
Other operating 16,927 12,165 52,170 35,562
Depreciation and amortization   29,799     25,198     115,016     98,843  
Total operating expenses   231,408     214,046     918,719     840,408  
Income from operations   43,915     36,868     208,228     173,266  
OTHER INCOME (EXPENSE):
Interest expense, net (6,143 ) (4,865 ) (25,475 ) (20,138 )
Equity in earnings of affiliate   339     326     1,482     1,299  
Total other income (expense)   (5,804 )   (4,539 )   (23,993 )   (18,839 )
INCOME BEFORE INCOME TAXES 38,111 32,329 184,235 154,427
PROVISION FOR INCOME TAXES   14,681     12,486     72,697     61,810  
NET INCOME $ 23,430   $ 19,843   $ 111,538   $ 92,617  
 
BASIC EARNINGS PER COMMON SHARE $ 0.57   $ 0.49   $ 2.70   $ 2.29  
DILUTED EARNINGS PER COMMON SHARE $ 0.56   $ 0.48   $ 2.66   $ 2.26  
 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC

  41,260     40,487     41,345     40,358  

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED

  42,015     41,342     41,972     40,930  
 
LIFE TIME FITNESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
   
For the Year Ended December 31,
2012 2011
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 111,538 $ 92,617

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 115,016 98,843
Deferred income taxes (2,832 ) 5,557
Loss on disposal of property and equipment, net 1,086 1,779
Gain on sale of land held for sale (196 ) -
Amortization of deferred financing costs 2,003 2,269
Share-based compensation 14,686 19,767
Excess tax benefit related to share-based compensation (8,502 ) (3,537 )
Changes in operating assets and liabilities 22,999 10,277
Other   (53 )   371  
Net cash provided by operating activities   255,745     227,943  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (224,194 ) (165,335 )
Acquisitions, net of cash acquired (30,614 ) (70,264 )
Proceeds from sale of property and equipment 969 794
Proceeds from sale of land held for sale 1,758 -
Proceeds from property insurance settlements 909 464
Increase in other assets (333 ) (92 )
Decrease in restricted cash   102     1,484  
Net cash used in investing activities   (251,403 )   (232,949 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term borrowings (6,929 ) (79,192 )
Proceeds from revolving credit facility, net 22,000 77,800
Increase in deferred financing costs (914 ) (4,989 )
Excess tax benefit related to share-based compensation 8,502 3,537
Proceeds from stock option exercises 2,342 3,162
Proceeds from employee stock purchase plan 1,206 1,061
Stock purchased for employee stock purchase plan (1,290 ) (1,113 )
Repurchases of common stock   (19,099 )   -  
Net cash provided by financing activities   5,818     266  
 
Effect of exchange rates on cash and cash equivalents   (1,148 )   -  
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,012 (4,740 )
CASH AND CASH EQUIVALENTS - Beginning of period   7,487     12,227  
CASH AND CASH EQUIVALENTS - End of period $ 16,499   $ 7,487  
 

Non-GAAP Financial Measures

This release and the related conference call disclose certain non-GAAP financial measures.

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