Life Time Fitness Announces Preliminary Financial Results for Fourth Quarter
and Full Year 2012
Company Also Provides Preliminary 2013 Guidance
CHANHASSEN, Minn. -- January 31, 2013
Life Time Fitness, Inc. (NYSE: LTM), The Healthy Way of Life Company, today
announced preliminary results for the fourth quarter and full year ended
December 31, 2012.
The Company expects to report revenue in the range of $273.0-275.0 million,
net income of $22.0-23.5 million and diluted earnings per share of $0.53-0.56
for 4Q 2012. For the year, expectations include revenue of $1.125-1.127
billion, net income of $110.0-111.5 million and diluted earnings per share of
$2.63-2.66. The Company previously provided guidance of $1.127-1.137 billion
in revenue, net income of $114.5-116.0 million and diluted earnings per share
of $2.73-2.76 for 2012.
Included in the preliminary results is approximately $0.07 of diluted earnings
per share impact in the fourth quarter from losses related to the effect of
Hurricane Sandy upon operations, other unrelated self-insured expenses, and
costs related to the inaugural launch of Commitment Day. Commitment Day is a
year-round movement involving events and activities commencing on January 1
and continuing throughout the year, urging people to commit to healthy eating,
exercise, personal responsibility, giving and a healthy planet. Additionally,
during the fourth quarter, the Company experienced slightly lower
year-over-year membership growth than planned, coupled with higher membership
acquisition costs. For the year ended 2012, the Company expects dues growth of
nearly 10% and memberships to increase by approximately 1%. Finally, during
the fourth quarter, the Company also made incremental investments in
consumer-facing technology, including scheduling systems and mobile
The Company also announced preliminary 2013 guidance. Three new center
openings are planned during the year, including one in the first half and two
in the second half of 2013. Expectations include revenue of $1.200-1.220
billion, net income of $120.0-124.0 million and diluted earnings per share of
$2.85-2.95 for the year. 2013 revenue and earnings are expected to be driven
primarily by price and mix optimization, and growth in in-center and ancillary
business revenue. The Company’s preliminary guidance includes the anticipated
impact of the timing of 2013 new center openings, pre-sale expenses for
centers opening in early 2014 and the investment in growth initiatives.
Bahram Akradi, chairman, president and chief executive officer, Michael
Robinson, executive vice president and chief financial officer, and John
Heller, senior director, investor relations and treasurer, have provided a
webcast message today in connection with these preliminary results. The
webcast may be accessed via the Company’s Investor Relations Events section of
its website at lifetimefitness.com or via this link.
Life Time Fitness’ fourth quarter and full year financial results remain
subject to regular year-end closing processes, including conclusion of the
Company’s 2012 financial audit. The Company plans to announce its fourth
quarter and full year financial results on Thursday, February 21. Details
regarding the conference call will be announced later.
About Life Time Fitness, Inc.
As The Healthy Way of Life Company, Life Time Fitness (NYSE: LTM) helps
organizations, communities and individuals achieve their total health
objectives, athletic aspirations and fitness goals by engaging in their areas
of interest – or discovering new passions – both inside and outside of Life
Time’s distinctive and large sports, professional fitness, family recreation
and spa destinations, most of which operate 24 hours a day, seven days a week.
The Company’s Healthy Way of Life approach enables customers to achieve this
by providing the best programs, people and places of uncompromising quality
and value. As of January 31, 2013, the Company operated 105 centers under the
LIFE TIME FITNESS® and LIFE TIME ATHLETIC(SM) brands in the United States and
Canada. Additional information about Life Time centers, programs and services
is available at lifetimefitness.com.
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements can usually be identified by the use of terminology such as
“anticipate,” “believe,” “continue,” “could,” “estimate,” “evolve,” “expect,”
“forecast,” “intend,” “looking ahead,” “may,” “opinion,” “plan,” “possible,”
“potential,” “project,” “should,” “will” and similar words or expressions.
Forward-looking statements are subject to certain risks and uncertainties that
could cause the Company’s actual results in the future to differ materially
from its historical results and those presently anticipated or projected.
Among these factors are attracting and retaining members, risks related to our
debt levels and debt covenants, the ability to access our existing credit
facility and obtain additional financing, strains on our business from
continued and future growth, including potential acquisitions and other
strategic initiatives, risks related to maintenance and security of our data,
potential recognition of compensation expense related to performance-based
stock grants, competition from other health and fitness centers, identifying
and acquiring suitable sites for new centers, delays in opening new centers
and other factors set forth in the risk factor section of the Company’s annual
report on Form 10-K filed with the Securities and Exchange Commission.
The Company cautions investors not to place undue reliance on any such
forward-looking statements, which speak only as of the date on which such
statements were made. The Company undertakes no obligation to update such
statements to reflect events or circumstances arising after such date. All
remarks made during the Company’s preliminary financial results webcast will
be current at the time of the webcast and the Company is under no obligation
to update the recording.
Life Time Fitness, Inc.
John Heller, 952-229-7427
Jason Thunstrom, 952-229-7435
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