Life Time Group Holdings Inc Reports Robust Revenue and Net Income Growth for Q4 and Full-Year ...
Total Revenue: Grew by 18.2% in Q4 and 21.6% for the full year.
Net Income: Increased to $23.7 million in Q4; $76.1 million for the full year.
Adjusted EBITDA: Rose by 28.7% in Q4 and 90.6% for the full year.
Diluted EPS: Increased to $0.12 for Q4 and $0.37 for the full year.
Membership Engagement: Average visits per membership rose to 135 from 124 in 2022.
New Centers: Opened one new center in Q4; total of 11 for the full year.
Liquidity: Total available liquidity stood at $363.3 million as of December 31, 2023.
On February 28, 2024, Life Time Group Holdings Inc (NYSE:LTH) released its 8-K filing, announcing its financial results for the fourth quarter and full-year ended December 31, 2023. The company, known for its large, multi-use sports, fitness, and spa centers, reported significant growth in revenue and net income, along with a substantial increase in adjusted EBITDA.
Financial Performance Highlights
Life Time's total revenue for the fourth quarter increased by 18.2% to $558.8 million, and for the full year, it rose by 21.6% to $2,216.6 million. This growth was attributed to strong membership dues and in-center revenue. Net income for the fourth quarter was $23.7 million, a 73.0% increase from the previous year, and $76.1 million for the full year. Adjusted net income also saw a significant rise to $38.0 million for the fourth quarter and $129.7 million for the full year.
The company's adjusted EBITDA for the fourth quarter increased by 28.7% to $137.7 million and by 90.6% to $536.8 million for the full year. Diluted EPS for the fourth quarter was $0.12 and $0.37 for the full year, while adjusted diluted EPS was $0.19 for the fourth quarter and $0.64 for the full year.
Operational and Strategic Achievements
Founder, Chairman, and CEO Bahram Akradi highlighted the company's success in achieving operating and strategic objectives, setting record levels of revenue and adjusted EBITDA. Akradi emphasized the improved balance sheet and reduced net debt leverage ratio. He also noted the increased member engagement, with average visits per membership rising to 135, compared to 124 in 2022 and 108 in 2019 before the pandemic.
We are off to a great start in 2024 and expect to build on our progress and success this year by executing our plan to be free cash flow positive after all capital expenditures beginning in the second quarter, further improving our balance sheet, reducing our net debt leverage ratio, and continuing to grow our revenue and adjusted EBITDA," said Akradi.
Challenges and Outlook
Despite the strong financial performance, Life Time Group Holdings Inc faces the challenge of maintaining its growth trajectory amid a competitive landscape. The company plans to open 9-10 new centers in 2024 and expects to continue reducing its net debt leverage ratio towards a target of 3.0x by the end of 2024. Life Time also anticipates being free cash flow positive beginning in the second quarter of 2024.
For the first quarter of 2024, Life Time anticipates revenue between $585 million and $595 million, net income between $29 million and $32 million, and adjusted EBITDA between $142 million and $146 million. For the full year 2024, the company expects revenue between $2,460 million and $2,500 million and adjusted EBITDA between $595 million and $610 million.
Life Time's continued focus on expanding its offerings and improving member engagement positions the company well for sustained growth. However, investors should monitor how the company navigates operational costs and capital expenditures to maintain profitability.
For more detailed information, investors and analysts are encouraged to review the full 8-K filing and listen to the conference call scheduled for today.
Life Time Group Holdings Inc (NYSE:LTH) remains committed to its mission of empowering people to live healthy, happy lives through its portfolio of athletic country clubs and comprehensive digital platform.
Investor and Media Contacts
For further inquiries, investors may contact Ken Cooper, Investor Relations at kcooper2@lt.life or 952-406-2322, and media may reach out to Jason Thunstrom, Corporate Communications at jthunstrom@lt.life or 952-229-7435.
Explore the complete 8-K earnings release (here) from Life Time Group Holdings Inc for further details.
This article first appeared on GuruFocus.
