Life Time Fitness: Q2 2023 Financial Report Highlights
Krissy Vann | Host, All Things Fitness and Wellness
Life Time Fitness Q2 results are in. Here are the key findings from their latest financial report:
Revenue Surges:
In Q2 2023, Life Time Fitness reported a remarkable 21.8% increase in revenue, reaching $561.7 million. The substantial growth was attributed to strong membership dues and in-center revenue.
Profit Reversal:
The company experienced a significant turnaround in net income, shifting from a net loss of $2.3 million in Q2 2022 to a net gain of $17.0 million in the same period this year.
Adjusted EBITDA Soars:
Adjusted EBITDA showcased exceptional performance, skyrocketing by 115.5% to $136.0 million from $63.1 million in Q2 2022. The increased revenue and structural improvements contributed to this remarkable growth.
Upgraded Guidance:
Life Time Fitness has elevated its full-year net income guidance to a range of $75-$83 million, demonstrating confidence in its continued financial success. Additionally, the Adjusted EBITDA guidance range for the fiscal year 2023 has been raised to $510-$520 million.
Credit Rating Recognition:
Credit rating agencies have recognized the company's financial stability. Fitch Ratings assigned Life Time Fitness a B+ (stable) issuer credit rating, while S&P and Moody's awarded it a B rating and B- rating, respectively.
Expansion and New Centers:
Life Time Fitness added 26,000 memberships in Q2 2023, reaching a total of 790,238 center memberships. The company has opened four new centers so far this year, with plans to open a total of 12 centers in 2023.
Cash Flow Strength:
The company's cash flow performance was robust, with net cash provided by operating activities increasing by 99.0% to $141.9 million. Free cash flow before growth capital expenditures was an impressive $82.1 million.
Outlook for Q3 2023:
Life Time Fitness is optimistic about the third quarter, projecting revenue to be in the range of $585 million to $595 million. Adjusted EBITDA for the same period is expected to be between $136 million to $138 million.
Full-Year 2023 Projection:
For the full fiscal year 2023, the company anticipates revenue within $2,235 million to $2,265 million and Adjusted EBITDA between $510 million to $520 million.
Life Time is a private health and lifestyle company providing personalized wellness solutions. With over 160 athletic clubs, 3 apartment home residences, and 10 coworking locations, they offer resort-like amenities, sports facilities, personal training, childcare, and more.
Check out our YouTube channel, which hosts weekly podcast episodes featuring industry thought leaders and influencers.
