NYSE$LTH

Life Time Group Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Life Time's financial performance showcased strong growth and strategic advancements.

Life Time reported a strong Q3 2024 with an 18.5% increase in total revenue to $693.2 million and a 422.5% increase in net income to $41.4 million. The company deleveraged to under 2.5 times and delivered positive free cash flow before sale-leaseback proceeds. With the completion of an equity offering and debt refinancing, Life Time is well-positioned for future growth.

  • Total revenue increased by 18.5% year-over-year to $693.2 million, driven by growth in membership dues and in-center revenue.
  • Net income surged by 422.5% year-over-year to $41.4 million, reflecting improved business performance.
  • Adjusted EBITDA increased by 26.1% year-over-year to $180.3 million, indicating enhanced profitability.
  • The company opened two new centers during the quarter, expanding its total to 177 centers.

Headline financials

Total Revenue

$693M

Previous: $585M+18.5%
EPS

$0.19

Previous: $0.13+46.2%
Comparable Center Revenue

12.1%

Previous: 11.4%+6.1%
Net New Center Openings

2

Previous: 6-66.7%
Total Centers

177

Previous: 170+4.1%
Total Center Square Footage

17.4M

Previous: 16.7M+4.2%
Center Memberships

826.5K

No prior period
Avg Revenue Per Membership

$815.00

Previous: $722.00+12.9%
Digital On-Hold Memberships

50.0K

No prior period
Total Memberships

876.5K

No prior period
Net Income Margin

6.0%

No prior period
Adjusted Net Income

$56.3M

No prior period
Adjusted Net Income Margin

8.1%

No prior period
Adjusted EBITDA

$180M

No prior period
Adjusted EBITDA Margin

26.0%

No prior period
Net Debt Leverage Ratio

2.4

No prior period
Capital Expenditures

-$388M

Previous: -$526M+26.2%
Free Cash Flow

-$347M

Previous: -$518M+33.0%
Net Income

$41.4M

Previous: $7.92M+422.5%
Operating Income

$93.7M

Previous: $46.7M+100.4%
Gross Profit

$322M

Previous: $168M+92.1%
Cash & Equivalents

$121M

Previous: $25.4M+375.4%
Total Assets

$7.18B

Previous: $6.9B+4.1%
Stock-Based Comp

$11.8M

Previous: $14.9M-20.9%

Revenue & EPS history

Life Time · Revenue · Quarterly

$693M

Q3 2024+18.5%vs Q3 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 provided full-year 2024 guidance, projecting revenue between $2.595 billion and $2.605 billion, net income between $138 million and $140 million, and Adjusted EBITDA between $658 million and $662 million.

Tailwinds

  • Projected revenue between $2.595 billion and $2.605 billion.
  • Expected net income between $138 million and $140 million.
  • Anticipated Adjusted EBITDA between $658 million and $662 million.
  • Rent expenses are expected to be between $305 million and $310 million.
  • Guidance reflects continued strong performance and growth trajectory.

Headwinds

  • Net income guidance includes approximately $15 million of estimated one-time interest expense related to refinancing.
  • Full-year guidance is subject to various risks and uncertainties.
  • Actual results may differ materially from projections.
  • Guidance depends on continued consumer demand and economic conditions.
  • Potential for unexpected expenses or operational challenges.

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 Q3 2024

Historical avgQ3 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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