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Sep 30, 2024
Life Time Q3 2024 Earnings Report
Life Time's financial performance showcased strong growth and strategic advancements.
Key Takeaways
Life Time reported a strong Q3 2024 with an 18.5% increase in total revenue to $693.2 million and a 422.5% increase in net income to $41.4 million. The company deleveraged to under 2.5 times and delivered positive free cash flow before sale-leaseback proceeds. With the completion of an equity offering and debt refinancing, Life Time is well-positioned for future growth.
Total revenue increased by 18.5% year-over-year to $693.2 million, driven by growth in membership dues and in-center revenue.
Net income surged by 422.5% year-over-year to $41.4 million, reflecting improved business performance.
Adjusted EBITDA increased by 26.1% year-over-year to $180.3 million, indicating enhanced profitability.
The company opened two new centers during the quarter, expanding its total to 177 centers.
Revenue by Segment
Forward Guidance
Life Time provided full-year 2024 guidance, projecting revenue between $2.595 billion and $2.605 billion, net income between $138 million and $140 million, and Adjusted EBITDA between $658 million and $662 million.
Positive Outlook
- Projected revenue between $2.595 billion and $2.605 billion.
- Expected net income between $138 million and $140 million.
- Anticipated Adjusted EBITDA between $658 million and $662 million.
- Rent expenses are expected to be between $305 million and $310 million.
- Guidance reflects continued strong performance and growth trajectory.
Challenges Ahead
- Net income guidance includes approximately $15 million of estimated one-time interest expense related to refinancing.
- Full-year guidance is subject to various risks and uncertainties.
- Actual results may differ materially from projections.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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