Life Time Fitness, Inc. (NYSE:LTM) today reported its financial results
for the fourth quarter and full year ended December 31, 2009.
“In 2009, we set our minds on winning on a number of fronts and I’m
pleased with our progress on many of them, including free cash flow
delivery, debt reduction and cost structure improvements”
Fourth quarter 2009 revenue grew 5.0% to $203.7 million from $194.0
million during the same period last year. Revenue for the year totaled
$837.0 million, up 8.8% from $769.6 million in 2008.
Net income for the quarter was $18.4 million, or $0.46 per diluted
share. This compares to net income of $13.0 million, or $0.33 per
diluted share, for 4Q 2008. For the full year, net income was $72.4
million, or $1.82 per diluted share, compared to $71.8 million, or $1.83
per diluted share, for 2008.
“In 2009, we set our minds on winning on a number of fronts and I’m
pleased with our progress on many of them, including free cash flow
delivery, debt reduction and cost structure improvements,” said Bahram
Akradi, Life Time Fitness chairman, president and chief executive
officer. “At the same time, our same-center revenue and attrition
metrics remain key areas of focus, and we saw some improvement during
the year, but we are not satisfied. In 2010, we will strive to improve
both of these metrics. We also remain highly committed to ongoing growth
as a Healthy Way of Life Company in spite of the continuing economic
headwind. Overall, I am pleased with the impact we are starting to see
on many of our connectivity and growth initiatives, and with our entire
team’s focus on making significant progress through the course of this
year.”
In January, the Company opened a new center in Beachwood, Ohio, marking
its first location in the Cleveland market and the first of three new,
large format centers planned for 2010. In March, the Company expects to
open its second new, large format center for the year in Lenexa, Kansas.
This represents the second Life Time Fitness location in the Kansas City
market. One additional large format center is expected to open in the
fourth quarter. This month, the Company also plans to open a new
Pilates, yoga and personal training boutique concept center in
Scottsdale, Arizona.
Three and Twelve Months Ended December
31, 2009, Financial Highlights:
Total revenue for the fourth quarter grew 5.0% to $203.7 million
from $194.0 million. Total revenue for the full year grew 8.8% to $837.0
million from $769.6 million in 2008.
Memberships grew 2.1% to 578,937 at December 31, 2009, from
567,110 at December 31, 2008.
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Attrition in 4Q 2009 was 10.8%, the same as the prior-year period.
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Attrition improved to 40.6% in 2009 compared to 42.3% in 2008.
Total operating expenses during 4Q 2009 totaled $165.6 million
compared to $164.6 million for 4Q 2008. Fourth quarter 2008 results
included $5.0 million in costs primarily related to slowing the
development of new centers. Full-year operating expenses were $688.1
million compared with $622.3 million in 2008.