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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.
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 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.
- Guidance depends on continued consumer demand and economic conditions.
- Potential for unexpected expenses or operational challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income