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Dec 31, 2023
Life Time Q4 2023 Earnings Report
Life Time's financial performance significantly improved in Q4 2023, with revenue and adjusted EBITDA reaching record levels.
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
Revenue by Segment
Membership Dues & Enrollment Fees Revenue
CapyFin.comIn-Center Revenue
CapyFin.com 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