Life Time Group Holdings, Inc. reported a third-quarter revenue increase of 18.5 percent to $693.2 million, which was driven by continued growth in membership dues and in-center revenue. This revenue resulted from increased average member dues, membership growth in new and ramped-up centers, and higher member use of its in-center offerings.
- Center memberships increased by 42,171, or 5.4 percent year-over-year, compared to September 30, 2023, and decreased by approximately 6,100, consistent with seasonality expectations, from the second quarter of 2024 to 826,502.
- Total subscriptions, including center memberships and digital on-hold memberships, increased 5.6 percent to 876,509 compared to September 30, 2023.
- Center operations expenses increased 16.2 percent to $371.1 million, primarily due to operating costs related to new and ramping centers and costs to support growth in memberships and in-center business revenue.
General, administrative and marketing expenses increased 11.7 percent to $57.7 million in Q3, primarily due to increased cash incentive compensation and benefit-related expenses, IT costs and center support overhead to enhance and broaden member services and experiences, partially offset by lower share-based compensation expense.
Net income increased $33.5 million to $41.4 million due primarily to “improved business performance” and, to a lesser extent, a $3.8 million decrease in the tax-effected one-time net losses from sale-leaseback transactions in the current period and a tax-effected one-time gain of $0.5 million on sales of land in the current-year period as compared to a tax-effected one-time loss of $3.3 million in the prior-year period.
Adjusted net income increased $29.6 million to $56.3 million for the quarter. The company said Adjusted net income and Adjusted EBITDA improved significantly as Life Time experienced greater flow-through of its increased revenue and benefited from structural improvements to its business that have improved margins.
“Having achieved another quarter of strong financial performance, we remain confident in the strength and trajectory of our business,” offered Bahram Akradi, founder, chairman and CEO of Life Time Group Holdings, Inc.
Akradi continued, “In the third quarter, we continued deleveraging to under 2.5 times and once again delivered significant cash from our operating activities and achieved positive free cash flow before sale-leaseback proceeds. With our equity offering complete and our debt refinancing in place, we are now even better positioned to continue growing our business by taking advantage of the significant opportunities in front of us. I’d like to thank all our team members for their passion and dedication to building a company that is stronger, bigger and the best version of itself.”
Image courtesy Life Time Group Holdings, Inc.
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