NYSE$LTH

Life Time Group Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Life Time's financial performance for Q2 2024 demonstrated strong revenue and adjusted EBITDA growth, achieving positive free cash flow and reduced net debt leverage.

Life Time reported a strong second quarter in 2024, with revenue increasing by 18.9% to $667.8 million and net income rising to $52.8 million. The company achieved positive free cash flow and reduced its net debt leverage ratio to 3.0 times. As a result, Life Time is raising its full-year revenue and adjusted EBITDA guidance.

  • Total revenue increased by 18.9% year-over-year to $667.8 million.
  • Net income increased by $35.8 million over the prior year quarter to $52.8 million.
  • Adjusted EBITDA increased by 27.6% year-over-year to $173.5 million.
  • The Company achieved positive free cash flow and reduced net debt leverage ratio to 3.0 times.

Headline financials

Total Revenue

$668M

Previous: $562M+18.9%
EPS

$0.26

Previous: $0.08+225.0%
Comparable Center Revenue

12.0%

Previous: 15.5%-22.6%
Net New Center Openings

3

Previous: 1+200.0%
Total Centers

175

Previous: 164+6.7%
Total Center Square Footage

17.2M

No prior period
Center Memberships

832.6K

No prior period
Avg Revenue Per Membership

$794.00

Previous: $701.00+13.3%
Digital On-Hold Memberships

46.1K

No prior period
Total Memberships

878.8K

No prior period
Net Income Margin

7.9%

No prior period
Adjusted Net Income

$52.4M

No prior period
Adjusted Net Income Margin

7.9%

No prior period
Adjusted EBITDA

$174M

No prior period
Adjusted EBITDA Margin

26.0%

No prior period
Net Debt Leverage Ratio

3

No prior period
Capital Expenditures

-$301M

Previous: -$337M+10.7%
Free Cash Flow

-$248M

Previous: -$320M+22.4%
Net Income

$52.8M

Previous: $17M+210.5%
Operating Income

$105M

Previous: $52.4M+99.9%
Gross Profit

$312M

Previous: $259M+20.5%
Cash & Equivalents

$34.5M

Previous: $30.9M+11.9%
Total Assets

$7.12B

Previous: $6.83B+4.3%
Stock-Based Comp

$11.1M

Previous: $16.5M-33.1%

Revenue & EPS history

Life Time · Revenue · Quarterly

$668M

Q2 2024+18.9%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Life Time · $568M total across 2 segments · Q3 2023

  • Membership Dues & Fees
    $408M+21.5%
  • In-Center Revenue
    $160M+11.2%

Forward guidance

Life Time has raised its full-year 2024 guidance for revenue and adjusted EBITDA.

Tailwinds

  • Revenue is expected to be between $2.56 billion and $2.59 billion.
  • Net income is projected to be between $142 million and $148 million.
  • Adjusted EBITDA is anticipated to be between $642 million and $652 million.
  • Rent expenses are expected to be between $300 million and $312 million.
  • The midpoint revenue growth is projected at 16.2% compared to the previous year.

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 2024

Historical avgQ2 2024

-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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