Total revenue estimated to be $693.2 million, an increase of 18.5% over the prior year quarter
Net income estimated to be $41.4 million, an increase of 422.5% over the prior year quarter
Adjusted net income estimated to be $56.3 million, an increase of 110.9% over the prior year quarter
Adjusted EBITDA estimated to be $180.3 million, an increase of 26.1% over the prior year quarter
Reduced net debt leverage ratio to an estimated 2.4 times
Expected to deliver second consecutive quarter of positive free cash flow before sale-leaseback transactions
CHANHASSEN, Minn., Oct. 15, 2024 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE:LTH) today announced its preliminary estimated financial results for the fiscal third quarter ended September 30, 2024 in connection with its launch of a process to refinance its 5.750% Senior Secured Notes due 2026 and 8.000% Senior Notes due 2026.
Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "We are pleased to announce certain of our preliminary estimated third quarter financial results as we launch our debt refinancing. Our business continues to deliver strong revenue and adjusted EBITDA growth as we further strengthen our balance sheet. We look forward to providing our full financial results on October 24, 2024."
Financial Summary
Three Months Ended
Percent Change
($ in millions, except memberships and per membership data)
September 30,
2024
2023
Total revenue
$693.2
$585.2
18.5 %
Center operations expenses
$371.1
$319.4
16.2 %
Rent
$78.6
$69.2
13.5 %
General, administrative and marketing expenses (1)
$57.7
$51.7
11.7 %
Net income
$41.4
$7.9
422.5 %
Adjusted net income
$56.3
$26.7
110.9 %
Adjusted EBITDA
$180.3
$143.0
26.1 %
Comparable center revenue (2)
12.1 %
11.4 %
Center memberships, end of period
826,502
784,331
5.4 %
Average center revenue per center membership
$815
$722
12.9 %
(1)
The three months ended September 30, 2024 and 2023 included non-cash share-based compensation expense of $10.3 million and $13.4 million, respectively.
(2)
The Company includes a center, for comparable center revenue purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.
Cash Flow Highlights
We estimate our net cash provided by operating activities for the three months ended September 30, 2024 will be $151.1 million, an increase of 31.8% compared to the prior year quarter.
We estimate our free cash flow for the three months ended September 30, 2024 will be $138.3 million, including $65 million of proceeds from sale-leaseback transactions on two properties.
Liquidity and Capital Resources
As of September 30, 2024, our total available liquidity was $529.8 million, which included availability under our $650 million revolving credit facility and cash and cash equivalents.
Our net debt leverage ratio is estimated to have improved to 2.4x as of September 30, 2024, from 3.7x as of September 30, 2023.
About Life TimeLife Time (NYSE:LTH) empowers people to live healthy, happy lives through its portfolio of more than 175 athletic country clubs across the United States and Canada. The health and wellness pioneer also delivers a range of healthy way of life programs and information via its complimentary Life Time Digital app. The Company's healthy living, healthy aging, healthy entertainment communities and ecosystem serve people 90 days to 90+ years old and is supported by a team of more than 41,000 dedicated professionals. In addition to delivering the best programs and experiences through its clubs, Life Time owns and produces nearly 30 of the most iconic athletic events in the country.
Unaudited Preliminary Estimated Results for the Three Months Ended September 30, 2024The Company's unaudited preliminary estimated financial results are based on information available to us as of the date of this press release. The amounts set forth herein are subject to revision based upon the completion of our quarter-end financial closing process, a final review by our management, audit committee and independent registered public accounting firm ("Deloitte") and the preparation of full financial statements and related notes. The unaudited preliminary estimated financial information included in this press release has been prepared by, and is the responsibility of, our management. Deloitte has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the preliminary financial information. Accordingly, Deloitte does not express an opinion or any other form of assurance with respect thereto.
The processes we have used to produce the unaudited preliminary estimated financial information required a greater degree of estimation and assumptions than required during a typical quarter-end closing process. During our completion of our closing process, we may identify additional items that require material adjustments to the unaudited preliminary estimated financial information presented in this press release. The unaudited preliminary estimated financial information should not be considered a substitute for the financial statements for the three months ended September 30, 2024 prepared in accordance with U.S. generally accepted accounting principles ("GAAP") once they become available. Therefore, investors should not place undue reliance on the unaudited preliminary estimated financial information presented in this press release.
The preliminary estimated financial results presented in this press release do not purport to indicate our final results of operations for the three months ended
