NYSE$LTH
Life Time Group Holdings Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Reported strong revenue growth driven by membership dues and in-center revenues, along with margin expansion efforts.
Life Time Group Holdings reported a strong fourth quarter and full-year fiscal 2022, with revenue increasing by 31.1% to $472.7 million compared to the previous year. The company's strategies, including strategic investments and pricing optimization, drove increased club usage and memberships. Net income was $13.7 million, a significant improvement compared to the net loss of $304.8 million in the same period last year.
- Revenue increased due to strong growth in membership dues and in-center revenues.
- Average monthly dues per center membership increased approximately 20% to $162.
- Net center memberships declined approximately 3,500, consistent with typical seasonality.
- Net income and Adjusted EBITDA improved significantly due to increased revenue and margin expansion efforts.
Headline financials
Revenue & EPS history
Life Time · Revenue · Quarterly
$473M
Revenue by segment
Life Time · $462M total across 2 segments · Q4 2022
- Membership Dues & Fees$335M+32.1%72.5%
- In-Center Revenue$127M+28.0%27.5%
Forward guidance
Life Time provided guidance for the first quarter and full-year 2023, including revenue, net income, and Adjusted EBITDA estimates. The company plans to open 10 new athletic country clubs in 2023 and expects full-year rent expense to include non-cash rent expense of $35 million to $40 million.
Tailwinds
- Revenue for Q1 2023 is projected to be between $505 million and $510 million, representing a 29% increase compared to Q1 2022.
- Net income for Q1 2023 is expected to be between $10 million and $11 million, a significant improvement from the $(38) million loss in Q1 2022.
- Adjusted EBITDA for Q1 2023 is forecasted to be between $108 million and $110 million, a 166% increase compared to Q1 2022.
- Full-year 2023 revenue is projected to be between $2.2 billion and $2.3 billion, a 23% increase compared to 2022.
- Full-year 2023 Adjusted EBITDA is expected to be between $440 million and $460 million, a 60% increase compared to 2022.
Headwinds
- Full-year 2023 rent expense is expected to be between $270 million and $280 million, including non-cash rent expense of $35 million to $40 million.
- The company is planning to execute sale-leaseback transactions to generate gross proceeds of $300 million.
- Targeting capital expenditures of $260 million to $280 million, net of the planned $300 million in sale-leaseback gross proceeds.
- Expect to achieve leverage of approximately four times net debt to adjusted EBITDA by year-end.
- Plan to open 10 athletic country clubs in 2023.
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 Q4 2022
-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
| Quarter | Report date | Reaction (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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