Life Time Announces Third Quarter Fiscal 2021 Financial Results
Posted: October 28, 2021 in Chains
Life Time – The Healthy Way Of Life Company
CHANHASSEN, MN – Life Time Group Holdings, Inc. (“Life Time” or the “Company”) (NYSE: LTH) announced its financial results for the fiscal third quarter ended September 30, 2021.
Bahram Akradi, founder, Chairman and CEO, stated: “Our third quarter results reflect the continued momentum of our business, and I’m particularly pleased with our performance despite nearly 20% of our centers experiencing additional COVID-19 masking and other related restrictions during the quarter. While the near-term slope of our COVID-19 recovery curve continues to be somewhat difficult to predict, we remain confident that our strategy is working and we expect to continue our recovery at a strong pace. We are gaining market share, which gives us confidence that we are on the path to a full recovery of our 2019 results. We are focused on our core strategic goal of delivering to our growing community of members the best, most comprehensive omni-channel health and wellness experiences and programming via our physical spaces and digital platform. Additionally, we believe we have significant opportunities to continue expanding our portfolio of premium clubs with 10 or more planned new centers annually for the foreseeable future in increasingly affluent markets.”
Third Quarter 2021 Results and Prior Year Comparisons:
- Total revenue increased 66.7% to $385.0 million from $231.0 million.
- Comparable center sales increased 58.7%.
- Center memberships increased 16.7% to 668,310 as of September 30, 2021, from 572,811 as of September 30, 2020.
- Net loss improved to $(45.4) million from $(93.6) million and included tax-effected expenses of $3.2 million related to share-based compensation and $2.0 million primarily related to non-recurring losses incurred on a sale-leaseback of one of our centers.
- Adjusted EBITDA increased to $47.0 million from $(12.4) million.
Nine-Month 2021 Results and Prior Year Comparisons:
- Total revenue increased 33.0% to $957.5 million from $719.9 million.
- Comparable center sales increased 29.9%.
- Net loss improved to $(274.6) million from $(276.3) million and included tax-effected, non-recuring expenses of $54.3 million, of which $49.6 million related to additional interest expense incurred as a result of a loss on the conversion of a related party secured note into preferred stock as well as costs written off in connection with our debt refinancing, and $4.7 million primarily related to non-recurring losses incurred on the sale-leaseback of certain of our centers, and tax-effected expenses of $5.7 million related to share-based compensation.
- Adjusted EBITDA increased to $32.3 million from $(44.9) million.
New Center Openings:
- During the quarter, the Company opened two new centers: Peabody, MA (at Northshore Mall) and Coral Gables, FL, bringing its year-to-date 2021 new center openings to six.
- The Company had 12 new centers under construction as of September 30, 2021.
Cash Flow Highlights:
- Net cash used in operating activities totaled $15.3 million for the nine-month period ending September 30, 2021, compared to $56.2 million in the same prior-year period.
- Free cash flow before growth capital expenditures totaled $(99.5) million for the nine-month period ending September 30, 2021, compared to $(145.3) million in the same prior-year period.
- Growth, Maintenance and Corporate capital expenditures totaled $161.0 million, $43.0 million and $41.1 million, respectively, for the nine-month period ending September 30, 2021, compared to $202.2 million, $29.1 million and $60.0 million, respectively, in the same prior-year period.
- Tenant allowances and sale-leaseback proceeds totaled $43.4 million and $74.0 million, respectively, for the nine-month period ending September 30, 2021, compared to $77.5 million and $122.9 million, respectively, in the same prior-year period.
Recent Developments:
- On October 12, 2021, the Company closed its initial public offering (“IPO”) and received net proceeds of approximately $670 million after deducting underwriters’ discounts, commissions and other offering expenses.
- Upon completion of the IPO, the Company paid down $576 million (including a $6 million pre-payment penalty) of its senior secured term loan facility.
Outlook:
- For the fourth quarter ending December 31, 2021, the Company is projecting revenue and Adjusted EBITDA to be in the ranges of $350 to $360 million and $48 to $52 million, respectively.
- For the full year ending December 31, 2021, the Company is projecting revenue and Adjusted EBITDA to be in the ranges of $1,308 to $1,318 million and $80 to $84 million, respectively.
