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Jun 30, 2023
Life Time Q2 2023 Earnings Report
Reported strong revenue growth, increased memberships, and improved profitability.
Key Takeaways
Life Time reported a strong second quarter with a 21.8% increase in revenue, reaching $561.7 million. Net income increased to $17.0 million, a significant improvement from the net loss of $2.3 million in the same quarter last year. The company added 26,000 memberships and raised its full-year net income and Adjusted EBITDA expectations.
Revenue increased by 21.8% to $561.7 million compared to the second quarter of 2022.
Net income improved to $17.0 million, up from a net loss of $2.3 million in the prior year.
Adjusted EBITDA surged by 115.5% to $136.0 million.
The company increased its full year fiscal 2023 Adjusted EBITDA guidance range to $510-$520 million.
Life Time
Life Time
Life Time Revenue by Segment
Revenue by Segment
Membership Dues & Enrollment Fees Revenue
CapyFin.comIn-Center Revenue
CapyFin.com Forward Guidance
Life Time provided guidance for the third quarter and full year of 2023.
Positive Outlook
- Third quarter revenue is expected to be between $585 million and $595 million.
- Third quarter net income is projected to be between $22 million and $24 million.
- Third quarter Adjusted EBITDA is expected to range from $136 million to $138 million.
- Full year revenue is guided to be between $2.235 billion and $2.265 billion.
- Full year Adjusted EBITDA is projected to be between $510 million and $520 million.
Challenges Ahead
- Full year net income is expected to be between $75 million and $83 million.
- Rent expenses for the full year are anticipated to be between $270 million and $280 million.
- Capital expenditures are still targeted at $260 million to $280 million for the year, net of planned $300 million of gross sale-leaseback proceeds.
- The company plans to open a total of 12 centers in 2023, eight of which are planned for the second half.
- Net income in the third quarter of 2022 included a $42.7 million tax-effected gain from sale-leaseback transactions and $5.1 million in tax-effected non-cash share-based compensation expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income