CHANHASSEN, Minn., Dec. 27,
2023 /PRNewswire/ -- Based on information as of
December 26, 2023, Life Time Group
Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company")
(NYSE: LTH) today reaffirmed its guidance for fiscal year ended
December 31, 2023, that it provided
on October 25, 2023, as part of its
third quarter earnings release.
Fourth Quarter 2023 Guidance (based upon range midpoints):
- Revenue is expected to increase approximately 18.5% to
$555-$565
million from $472.7 million in
the prior year period.
- Net income is expected to be up approximately 13.1% to
$14-$17
million from $13.7 million in
the prior year period.
- Adjusted EBITDA is expected to increase approximately 24.3% to
$131-$135
million from $107 million in
the prior year period.
Full-Year 2023 Guidance (based upon range midpoints):
- Revenue is expected to increase approximately 21.7% to
$2,213-$2,223
million from $1,822.6 million
for the prior year.
- Net income is expected to be $66-$69 million as
compared with a net loss of $1.8
million for the prior year.
- Adjusted EBITDA is expected to increase approximately 88.9% to
$530-$534
million from $281.7 million
for the prior year.
Bahram Akradi, Founder,
Chairman and CEO, stated: "We remain on track for a strong
close to 2023 with average member visits and demand for our
programming at an all-time high. Based on our expectations for
continued growth and substantial asset light opportunities, we are
pleased to re-affirm our 2023 guidance as we head into 2024. In
addition, as shared previously, we expect to be free cash flow
positive after all capital expenditures, including new club growth,
by the middle of 2024. Our business and outlook remain strong. I
look forward to continue working with senior vice president and
controller, Erik Weaver – a 19-year
Life Time veteran – as he assumes the role of interim Chief
Financial Officer with the transition of Bob Houghton to his new career endeavor. Bob is
a consummate professional and I wish him well."
About Life Time
Life Time (NYSE: LTH) empowers people
to live healthy, happy lives through its portfolio of more than 170
athletic country clubs across the United States and
Canada. The Company's healthy way
of life communities and ecosystem address all aspects of healthy
living, healthy aging and healthy entertainment for people 90 days
to 90+ years old. Supported by a team of more than 37,000 dedicated
professionals, Life Time is committed to providing the best
programs and experiences through its clubs, iconic athletic events
and comprehensive digital platform.
Use of Non-GAAP Financial Measures and Key Performance
Indicators
This press release includes certain financial
measures that are not presented in accordance with generally
accepted accounting principles in the
United States ("GAAP"), including Adjusted EBITDA and free
cash flow. These non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles and should be
considered in addition to, and not as a substitute for or superior
to, net income (loss) or net cash provided by operating activities
as a measure of financial performance or any other performance
measure derived in accordance with GAAP, and should not be
construed as an inference that the Company's future results will be
unaffected by unusual or non-recurring items. In addition, these
non-GAAP financial measures should be read in conjunction with the
Company's financial statements prepared in accordance with GAAP.
The reconciliations of the Company's non-GAAP financial measures to
the corresponding GAAP measures should be carefully evaluated.
Adjusted EBITDA is defined as net income (loss) before interest
expense, net, provision for (benefit from) income taxes and
depreciation and amortization, excluding the impact of share-based
compensation expense, (gain) loss on sale-leaseback transactions,
capital transaction costs, legal settlements, asset impairment,
severance and other items that are not indicative of the Company's
ongoing operations, including incremental costs related to
COVID-19. Free cash flow or free cash flow after capital
expenditures is defined as net cash provided by (used in) operating
activities less capital expenditures, net of construction
reimbursements.
The Company presents these non-GAAP financial measures because
management believes that these measures assist investors and
analysts in comparing the Company's operating performance across
reporting periods on a consistent basis by excluding items that
management does not believe are indicative of the Company's ongoing
operating performance. Investors are encouraged to evaluate these
adjustments and the reasons the Company considers them appropriate
for supplemental analysis. In evaluating the non-GAAP financial
measures, investors should be aware that, in the future, the
Company may incur expenses that are the same as or similar to some
of the adjustments in the Company's presentation of its non-GAAP
financial measures. There can be no assurance that the Company will
not modify the presentation of non-GAAP financial measures in
future periods, and any such modification may be material. In
addition, the Company's non-GAAP financial measures may not be
comparable to similarly titled measures used by other companies in
the Company's industry or across different industries. The non-GAAP
financial measures have limitations as analytical tools, and
investors should not consider these measures in isolation or as
substitutes for analysis of the Company's results as reported under
GAAP.
Forward-Looking Statements
This press release includes
"forward-looking statements" within the meaning of federal
securities regulations. Forward-looking statements in this press
release include, but are not limited to, the Company's plans,
strategies and prospects, both business and financial, including
its financial outlook for the fourth quarter and full year 2023,
growth, capital expenditures and free cash flow, consumer demand
and industry and economic trends. These statements are based on the
beliefs and assumptions of the Company's management.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions. Generally, statements that are not
historical facts, including statements concerning the Company's
possible or assumed future actions, business strategies, events or
results of operations, are forward-looking statements. These
statements may be preceded by, followed by or include the words
"believe," "expect," "anticipate," "intend," "plan," "estimate" or
similar expressions. In addition, any statements or information
that refer to expectations, beliefs, plans, projections,
objectives, performance or other characterizations of future events
or circumstances, including any underlying assumptions, are
forward-looking.
Factors that could cause actual results to differ materially
from those forward-looking statements included in this press
release include, but are not limited to, risks relating to our
business operations and competitive and economic environment, risks
relating to our brand, risks relating to the growth of our
business, risks relating to our technological operations, risks
relating to our capital structure and lease obligations, risks
relating to our human capital, risks relating to legal compliance
and risk management and risks relating to ownership of our common
stock and the other important factors discussed under the caption
"Risk Factors" in the Company's Annual Report on Form 10-K for the
year ended December 31, 2022, filed
with the Securities and Exchange Commission (the "SEC") on
March 8, 2023, (File No. 001-40887),
as such factors may be updated from time to time in the Company's
other filings with the SEC, which are accessible on the SEC's
website at www.sec.gov. These and other important factors could
cause actual results to differ materially from those indicated by
the forward-looking statements made in this press release. Any
forward-looking statement that the Company makes in this press
release speaks only as of the date of such statement. Except as
required by law, the Company does not have any obligation to update
or revise, or to publicly announce any update or revision to, any
of the forward-looking statements, whether as a result of new
information, future events or otherwise.
Reconciliation of
Net Income to Adjusted EBITDA Guidance for Fourth Quarter 2023 and
Fiscal Year 2023
($ in
millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2023
|
|
December 31,
2023
|
Net income
|
$14
– $17
|
|
$66
– $69
|
Interest expense, net
of interest income
|
34
– 33
|
|
130
– 129
|
Provision for income
taxes
|
4
– 6
|
|
22
– 24
|
Depreciation and
amortization
|
66
– 66
|
|
246
– 246
|
Share-based
compensation expense
|
13
– 13
|
|
50
– 50
|
Other
|
0
– 0
|
|
16
– 16
|
Adjusted
EBITDA
|
$131
– $135
|
|
$530
– $534
|
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SOURCE Life Time Group Holdings, Inc.