NYSE$LTH

Life Time Group Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong revenue growth, increased memberships, and improved profitability.

Life Time reported a strong second quarter with a 21.8% increase in revenue, reaching $561.7 million. Net income increased to $17.0 million, a significant improvement from the net loss of $2.3 million in the same quarter last year. The company added 26,000 memberships and raised its full-year net income and Adjusted EBITDA expectations.

  • Revenue increased by 21.8% to $561.7 million compared to the second quarter of 2022.
  • Net income improved to $17.0 million, up from a net loss of $2.3 million in the prior year.
  • Adjusted EBITDA surged by 115.5% to $136.0 million.
  • The company increased its full year fiscal 2023 Adjusted EBITDA guidance range to $510-$520 million.

Headline financials

Total Revenue

$562M

Previous: $461M+21.8%
EPS (adj)

$0.08

Previous: -$0.04+300.0%
Comparable Center Revenue

15.5%

Previous: 36.2%-57.2%
Net New Center Openings

1

No prior period
Total Centers

164

No prior period
Avg Revenue Per Membership

$701.00

Previous: $639.00+9.7%
Capital Expenditures

-$337M

Previous: -$253M-33.4%
Free Cash Flow

-$320M

Previous: -$255M-25.6%
Net Income

$17M

Previous: -$2.29M+844.2%
Operating Income

$52.4M

Previous: $20.8M+151.8%
Gross Profit

$259M

Previous: $182M+42.6%
Cash & Equivalents

$30.9M

Previous: $61.3M-49.7%
Total Assets

$6.83B

Previous: $6.5B+5.1%
Stock-Based Comp

$16.5M

Previous: $5.97M+177.1%

Revenue & EPS history

Life Time · Revenue · Quarterly

$562M

Q2 2023+21.8%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Life Time · $542M total across 2 segments · Q2 2023

  • Membership Dues & Fees
    $387M+25.2%
  • In-Center Revenue
    $155M+13.5%

Forward guidance

Life Time provided guidance for the third quarter and full year of 2023.

Tailwinds

  • Third quarter revenue is expected to be between $585 million and $595 million.
  • Third quarter net income is projected to be between $22 million and $24 million.
  • Third quarter Adjusted EBITDA is expected to range from $136 million to $138 million.
  • Full year revenue is guided to be between $2.235 billion and $2.265 billion.
  • Full year Adjusted EBITDA is projected to be between $510 million and $520 million.

Headwinds

  • Full year net income is expected to be between $75 million and $83 million.
  • Rent expenses for the full year are anticipated to be between $270 million and $280 million.
  • Capital expenditures are still targeted at $260 million to $280 million for the year, net of planned $300 million of gross sale-leaseback proceeds.
  • The company plans to open a total of 12 centers in 2023, eight of which are planned for the second half.
  • Net income in the third quarter of 2022 included a $42.7 million tax-effected gain from sale-leaseback transactions and $5.1 million in tax-effected non-cash share-based compensation expense.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.2%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+3.6%

Avg return

30 days after

39%

9 / 23 earnings

Positive

+23.6%

Q3 2022

Best reaction

-18.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.9%+21.6%+23.9%
Q4 2025-0.3%-5.0%-6.4%
Q3 2025+5.4%+2.6%+6.8%
Q1 2025-6.7%-9.4%-12.0%
Q4 2024-1.0%+0.0%-3.5%
Q3 2024-7.1%-10.2%-3.0%
Q2 2024+7.6%+15.4%+13.2%
Q1 2024+3.4%+8.2%+22.8%
Q4 2023+10.6%+9.2%+25.0%
Q3 2023-17.7%-17.0%+7.0%
Q2 2023-16.2%-16.3%-22.9%
Q1 2023+10.3%+18.2%+10.2%
Q4 2022-7.6%-11.3%-13.9%
Q3 2022+23.6%+25.7%+36.4%
Q2 2021-2.8%-1.5%-13.5%
Q2 2022-2.8%-1.5%-13.5%
Q1 2021+13.4%+23.6%+16.1%
Q1 2022+13.4%+23.6%+16.1%
Q4 2021-18.5%-17.4%+1.3%
Q4 2019-18.5%-17.4%+1.3%
Q3 2020-0.7%+2.2%-15.2%
Q4 2020-0.7%+2.2%-15.2%
Q3 2021-4.0%-2.7%+22.6%
Q2 2020
Q1 2020

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