Life Time Q4 2023 Earnings Report
Key Takeaways
Life Time Group Holdings, Inc. reported an 18.2% increase in total revenue to $558.8 million for the fourth quarter of 2023. Net income increased to $23.7 million, and adjusted EBITDA increased by 28.7% to $137.7 million. The company also saw an increase in member engagement, with average visits per membership rising to 135 compared to 124 in 2022.
Total revenue increased by 18.2% to $558.8 million.
Net income increased to $23.7 million.
Adjusted EBITDA increased by 28.7% to $137.7 million.
Center memberships increased by 5.2% compared to December 31, 2022.
Life Time
Life Time
Life Time Revenue by Segment
Forward Guidance
Life Time anticipates continued growth and improved financial performance in 2024, with a focus on deleveraging and free cash flow generation.
Positive Outlook
- Revenue is expected to be between $585 million and $595 million.
- Net income is projected to be between $29 million and $32 million.
- Adjusted EBITDA is anticipated to be between $142 million and $146 million.
- The company expects to continue to reduce its net debt leverage ratio towards a target of 3.0x by December 31, 2024.
- Life Time plans to open 9-10 new centers in 2024.
Challenges Ahead
- Rent expense is expected to include non-cash rent expense of $35 million to $40 million for the year.
- The company is actively monitoring the sale-leaseback market and will resume transactions when terms align with long-term financial objectives.
- There are inherent uncertainties in predicting non-cash, material, and non-recurring expenses.
- The variability of these items could have an unpredictable and potentially significant impact on future GAAP financial results.
- The company has not provided the most directly comparable GAAP financial measure for the Adjusted EBITDA forward-looking guidance for 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income