NYSE$LTH

Life Time Group Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Life Time's financial performance significantly improved in Q4 2023, with revenue and adjusted EBITDA reaching record levels.

Life Time Group Holdings, Inc. reported an 18.2% increase in total revenue to $558.8 million for the fourth quarter of 2023. Net income increased to $23.7 million, and adjusted EBITDA increased by 28.7% to $137.7 million. The company also saw an increase in member engagement, with average visits per membership rising to 135 compared to 124 in 2022.

  • Total revenue increased by 18.2% to $558.8 million.
  • Net income increased to $23.7 million.
  • Adjusted EBITDA increased by 28.7% to $137.7 million.
  • Center memberships increased by 5.2% compared to December 31, 2022.

Headline financials

Total Revenue

$559M

Previous: $473M+18.2%
EPS (adj)

$0.19

Previous: $0.07+171.4%
Net New Center Openings

1

Previous: 5-80.0%
Total Centers

171

Previous: 161+6.2%
Avg Revenue Per Membership

$711.00

Previous: $640.00+11.1%
Capital Expenditures

-$168M

Previous: $181M-192.8%
Net Income

$23.7M

Previous: $13.7M+72.7%
Operating Income

$58.7M

Previous: $45M+30.4%
Gross Profit

$185M

Previous: $219M-15.6%
Stock-Based Comp

$13.1M

Previous: $4.08M+221.7%

Revenue & EPS history

Life Time · Revenue · Quarterly

$559M

Q4 2023+18.2%vs Q4 2022
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 anticipates continued growth and improved financial performance in 2024, with a focus on deleveraging and free cash flow generation.

Tailwinds

  • Revenue is expected to be between $585 million and $595 million.
  • Net income is projected to be between $29 million and $32 million.
  • Adjusted EBITDA is anticipated to be between $142 million and $146 million.
  • The company expects to continue to reduce its net debt leverage ratio towards a target of 3.0x by December 31, 2024.
  • Life Time plans to open 9-10 new centers in 2024.

Headwinds

  • Rent expense is expected to include non-cash rent expense of $35 million to $40 million for the year.
  • The company is actively monitoring the sale-leaseback market and will resume transactions when terms align with long-term financial objectives.
  • There are inherent uncertainties in predicting non-cash, material, and non-recurring expenses.
  • The variability of these items could have an unpredictable and potentially significant impact on future GAAP financial results.
  • The company has not provided the most directly comparable GAAP financial measure for the Adjusted EBITDA forward-looking guidance for 2024.

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 2023

Historical avgQ4 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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