Le Lézard
Classified in: Health, Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

Life Time Reports Second Quarter Fiscal 2022 Financial Results


CHANHASSEN, Minn., Aug. 10, 2022 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE: LTH) today announced its financial results for the fiscal second quarter ended June 30, 2022.

Bahram Akradi, Founder, Chairman and CEO, stated: "We are happy to report that Life Time is growing back steadily. During the quarter, we made substantial progress on our strategic priorities. We delivered on our financial guidance, while continuing to make strategic investments in broadening and elevating the programs and experiences we provide. We are seeing strong member engagement in our programming and will remain focused on driving these initiatives through the remainder of the year. Our new athletic country club pipeline remains strong with 12 planned openings this year and 11 or more in 2023. To further strengthen our balance sheet, we have entered into a definitive agreement for the sale-leaseback of approximately $200 million of owned real estate, which is expected to close in early October. We are also in discussions for additional sale-leaseback transactions of up to $300 million in gross proceeds by the end of the year. Finally, while we are seeing current macroeconomic headwinds that may slow our near-term recovery, we remain confident in the growth of our business as we accelerate the rollout of our strategic initiatives."

Second Quarter 2022 Results and Prior Year Comparisons
Six-Month 2022 Results and Prior Year Comparisons
New Center Openings
Cash Flow Highlights
Sale-Leasebacks
Outlook

For the third quarter ending September 30, 2022, the Company is projecting revenue, net loss, and Adjusted EBITDA to be in the ranges of $490 to $510 million, $(24) to $(15) million, and $65 to $75 million, respectively. For the full year ending December 31, 2022, the Company is projecting revenue, net loss, and Adjusted EBITDA to be in the ranges of $1.80 to $1.85 billion, $(73.6) to $(55.6) million, and $250 to $270 million, respectively.

Conference Call Details

A conference call to discuss the Company's second quarter financial results is scheduled for today, August 10, 2022, at 8:30 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 877-451-6152 (international callers should dial 1-201-389-0879) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://ir.lifetime.life/. A recorded replay of the conference call will be available after the conclusion of the call and will be available for a period of time online at https://ir.lifetime.life/.

About Life Time®

Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of nearly 160 athletic country clubs across the United States and Canada. The Company's healthy way of life communities address all aspects of healthy living, healthy aging and healthy entertainment for those 90 days to 90+ years with integrity and respect for everyone. With a team of more than 30,000, Life Time is committed to providing the best programs and experiences through its athletic country clubs, iconic athletic events and via a complementary and comprehensive digital platform.

Use of Non-GAAP Financial Measures and Key Performance Indicators

This press release includes certain financial measures that are not presented in accordance with the generally accepted accounting principles in the United States ("GAAP"), including Adjusted EBITDA and free cash flow before growth capital expenditures. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net loss as a measure of financial performance or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company's future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of the Company's non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.

Adjusted EBITDA is defined as net income (loss) before interest expense, net, provision for (benefit from) income taxes and depreciation and amortization, excluding the impact of share-based compensation expense, (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company's ongoing operations, including incremental costs related to COVID-19. Free cash flow before growth capital expenditures is defined as net cash provided by (used in) operating activities less center maintenance capital expenditures and corporate capital expenditures.

The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company's operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company's ongoing operating performance. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company's presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company's non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company's industry or across different industries.

The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company's results as reported under GAAP.

The Company includes a center, for comparable center sales purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its financial outlook for the third quarter and fiscal year 2022, opportunities for growth, consumer demand, industry and economic trends, expected number of new center openings and successful signings and closings of sale-leaseback transactions (including the amount, pricing and timing thereof). These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.

Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and competitive and economic environment, risks relating to our brand, risks relating to the growth of our business, risks relating to our technological operations, risks relating to our capital structure, risks relating to our human capital, risks relating to legal compliance and risk management, risks relating to our financial performance and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the "SEC") on March 10, 2022 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)



Three Months Ended

June 30,


Six Months Ended

June 30,


2022


2021


2022


2021

Revenue:








Center revenue

$           445,882


$           316,596


$           827,503


$           561,690

Other revenue

15,385


6,591


26,018


10,795

Total revenue

461,267


323,187


853,521


572,485

Operating expenses:








Center operations

279,557


218,711


519,130


393,326

Rent

59,989


51,522


115,953


102,039

General, administrative and marketing

51,950


43,322


118,511


81,592

Depreciation and amortization

57,173


57,822


115,280


119,028

Other operating (income) expense

(8,212)


8,930


(25,247)


15,864

Total operating expenses

440,457


380,307


843,627


711,849

Income (loss) from operations

20,810


(57,120)


9,894


(139,364)

Other (expense) income:








Interest expense, net of interest income

(27,093)


(40,078)


(57,036)


(136,295)

Equity in earnings (loss) of affiliate

8


(91)


34


(384)

Total other expense

(27,085)


(40,169)


(57,002)


(136,679)

Loss before income taxes

(6,275)


(97,289)


(47,108)


(276,043)

Benefit from income taxes

(3,990)


(20,933)


(6,857)


(46,886)

Net loss

$              (2,285)


$            (76,356)


$            (40,251)


$          (229,157)

Loss per common share?basic and diluted

$                (0.01)


$                (0.57)


$                (0.21)


$                (1.65)

Weighted-average common shares outstanding?basic and diluted

193,692


145,196


193,082


145,196

 

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)



June 30,
2022


December 31,
2021

ASSETS




Current assets:




Cash and cash equivalents

$             61,289


$             31,637

Accounts receivable, net

10,530


6,464

Center operating supplies and inventories

43,734


41,007

Prepaid expenses and other current assets

56,282


48,883

Income tax receivable

2,572


3,533

Total current assets

174,407


131,524

Property and equipment, net

2,794,332


2,791,464

Goodwill

1,233,176


1,233,176

Operating lease right-of-use assets

2,060,368


1,864,528

Intangible assets, net

173,425


174,241

Other assets

63,536


61,742

Total assets

$        6,499,244


$        6,256,675

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$             75,286


$             71,308

Construction accounts payable

108,578


83,311

Deferred revenue

41,190


33,871

Accrued expenses and other current liabilities

164,253


147,920

Current maturities of debt

21,727


23,527

Current maturities of operating lease liabilities

48,249


46,315

Total current liabilities

459,283


406,252

Long-term debt, net of current portion

1,807,418


1,775,719

Operating lease liabilities, net of current portion

2,094,104


1,909,883

Deferred income taxes

46,143


55,213

Other liabilities

13,639


18,216

Total liabilities

4,420,587


4,165,283

Stockholders' equity:




Common stock, $0.01 par value per share; 500,000 shares authorized; 193,796 and 193,060 shares issued and outstanding, respectively.

1,938


1,931

Additional paid-in capital

2,772,393


2,743,560

Accumulated deficit

(691,334)


(651,083)

Accumulated other comprehensive loss

(4,340)


(3,016)

Total stockholders' equity

2,078,657


2,091,392

Total liabilities and stockholders' equity

$        6,499,244


$        6,256,675

 

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)



Six Months Ended

June 30,


2022


2021

Cash flows from operating activities:




Net loss

$            (40,251)


$          (229,157)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:




Depreciation and amortization

115,280


119,028

Deferred income taxes

(9,009)


(47,132)

Share-based compensation

27,411


2,881

Non-cash rent expense

15,635


6,219

(Gain) loss on disposal of property and equipment, net

(49,743)


1,110

Loss on debt extinguishment

?


40,993

Write-off of discounts and debt issuance costs

?


18,325

Amortization of debt discounts and issuance costs

3,918


5,127

Changes in operating assets and liabilities

17,909


71,259

Other

(825)


(1,692)

Net cash provided by (used in) operating activities

80,325


(13,039)

Cash flows from investing activities:




Capital expenditures

(252,640)


(121,973)

Proceeds from sale-leaseback transactions

174,246


33,933

Other

692


(1,678)

Net cash used in investing activities

(77,702)


(89,718)

Cash flows from financing activities:




Proceeds from borrowings

8,657


1,907,577

Repayments of debt

(11,539)


(1,594,439)

Proceeds from revolving credit facility

420,000


15,000

Repayments of revolving credit facility

(390,000)


(109,000)

Repayments of finance lease liabilities

(697)


(750)

Increase in debt discounts and issuance costs

?


(44,676)

Proceeds from stock option exercises

1,194


?

Other

(476)


?

Net cash provided by financing activities

27,139


173,712

Effect of exchange rates on cash and cash equivalents

(110)


50

Increase in cash and cash equivalents

29,652


71,005

Cash and cash equivalents?beginning of period

31,637


33,195

Cash and cash equivalents?end of period

$             61,289


$           104,200

Non-GAAP Measurements and Key Performance Indicators

See "Use of Non-GAAP Financial Measures and Key Performance Indicators" for a discussion of the Non-GAAP financial measures reconciled below.

Key Performance Indicators
($ in thousands, except for Average Center revenue per center membership)
(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2022


2021


2022


2021

Membership Data








Center memberships

724,778


657,737


724,778


657,737

Digital On-hold memberships

50,985


101,983


50,985


101,983

Total memberships

775,763


759,720


775,763


759,720









Revenue Data








Membership dues and enrollment fees

69.4 %


68.6 %


70.2 %


69.9 %

In-center revenue

30.6 %


31.4 %


29.8 %


30.1 %

Total Center revenue

100.0 %


100.0 %


100.0 %


100.0 %









Membership dues and enrollment fees

$          309,262


$          217,244


$          581,178


$        392,551

In-center revenue

136,620


99,352


246,325


169,139

Total Center revenue

$          445,882


$          316,596


$          827,503


$        561,690









Average Center revenue per center membership (1)

$               639


$               525


$            1,219


$               984

Comparable center sales (2)

36.2 %


295.1 %


42.4 %


16.1 %









Center Data








Net new center openings (3)

?


3


2


4

Total centers (end of period) (3)

153


153


153


153

Total center square footage (end of period) (4)

15,300,000


15,000,000


15,300,000


15,000,000









GAAP and Non-GAAP Financial Measures








Net loss

$           (2,285)


$        (76,356)


$        (40,251)


$      (229,157)

Net loss margin (5)

(0.5) %


(23.6) %


(4.7) %


(40.0) %

Adjusted EBITDA (6)

$          63,096


$            4,193


$        103,722


$        (14,754)

Adjusted EBITDA margin (6)

13.7 %


1.3 %


12.2 %


(2.6) %

Center operations expense

$        279,557


$        218,711


$        519,130


$        393,326

Pre-opening expenses (7)

$            2,559


$            2,111


$            3,946


$            4,671

Rent

$          59,989


$          51,522


$        115,953


$        102,039

Non-cash rent expense (open properties) (8)

$            4,547


$           (1,734)


$            5,988


$              (657)

Non-cash rent expense (properties under development) (8)

$            5,079


$            3,630


$            9,647


$            6,876

Net cash provided by (used in) operating activities

$          71,263


$          25,117


$          80,325


$        (13,039)

Free cash flow before growth capital expenditures (9)

$          32,441


$           (6,910)


$           (1,853)


$        (60,825)



(1)

We define Average Center revenue per center membership as Center revenue less Digital On-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period.

(2)

We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center sales purposes, beginning on the first day of the 13th full calendar month of the center's operation, in order to assess the center's growth rate after one year of operation.

(3)

Net new center openings are the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. As of June 30, 2022, all of our 153 centers were open.

(4)

Total center square footage (end of period) reflects the aggregate fitness square footage, which we use as a metric for evaluating the efficiencies of a center as of the end of the period. The square footage figures exclude areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. These figures are approximations.

(5)

Net loss margin is calculated as net loss divided by total revenue.

(6)

We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income (loss) before interest expense, net, provision for (benefit from) income taxes and depreciation and amortization, excluding the impact of share-based compensation expense, (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, including incremental costs related to COVID-19.

Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

 

The following table provides a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA (in thousands):



Three Months Ended


Six Months Ended


June 30,


June 30,


2022


2021


2022


2021

Net loss

$              (2,285)


$           (76,356)


$           (40,251)


$         (229,157)

Interest expense, net of interest income (a)

27,093


40,078


57,036


136,295

Benefit from income taxes

(3,990)


(20,933)


(6,857)


(46,886)

Depreciation and amortization

57,173


57,822


115,280


119,028

Share-based compensation expense (b)

5,973


2,881


27,411


2,881

COVID-19 related expenses (c)

371


(486)


583


(188)

(Gain) loss on sale-leaseback transactions (d)

(21,212)


33


(49,584)


831

Other (e)

(27)


1,154


104


2,442

Adjusted EBITDA

$             63,096


$               4,193


$           103,722


$           (14,754)




(a)

For the six months ended June 30, 2021, we incurred a non-cash expense of $41.0 million related to the extinguishment of a related party secured loan and $18.3 million related to the write-off of debt discounts and issuances costs in connection with the extinguishment of our prior term loan facility, senior unsecured notes and the related party secured loan.


(b)

Share-based compensation expense recognized during the three and six months ended June 30, 2022 is associated with stock options, restricted stock and restricted stock units. The majority of the share-based compensation expense recognized during the six months ended June 30, 2022 was associated with awards that were fully vested and became exercisable on April 4, 2022. Share-based compensation expense recognized during the three and six months ended June 30, 2021 was associated with restricted stock and restricted stock units. No share-based compensation expense was recognized during the three and six months ended June 30, 2021 related to stock options because the vesting and exercisability of stock options granted by the Company up through June 30, 2021 was contingent upon the occurrence of a change of control or an initial public offering.


(c)

Represents the incremental net expenses (credits) we recognized related to the COVID-19 pandemic. We adjust for these costs as they do not represent costs associated with our normal ongoing operations. We believe that adjusting for these costs provides a more accurate and consistent representation of our actual operating performance from period to period. For the three and six months ended June 30, 2022, COVID-19 related expenses primarily consisted of legal-related costs in pursuit of our claim against Zurich. For the three and six months ended June 30, 2021, COVID-19 related credits primarily consisted of the recovery of certain qualifying expenses recovered under the CARES Act, partially offset by COVID-19 legal-related costs in pursuit of our claim against Zurich.


(d)

We adjust for the impact of gains or losses on the sale-leaseback of our properties as they do not reflect costs associated with our ongoing operations.


(e)

Includes costs associated with incremental expenses related to a winter storm that resulted in historical freezing temperatures affecting our Texas region and executive level severance in 2021 and other transactions which are unusual and non-recurring in nature.

(7)

Represents non-capital expenditures associated with opening new centers which are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period.

(8)

Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented.


The negative non-cash rent expense amounts associated with our open properties for the three and six months ended June 30, 2021, reflect deferred rent repayments that we made at various dates throughout each of the respective periods. Beginning in the second quarter of fiscal 2020, due to the disruption caused by the COVID-19 pandemic, we began negotiating lease concessions with many of our landlords. The concessions we were able to obtain from these landlords primarily consisted of full or partial rent payment deferrals, with scheduled repayments due at various dates through December 2021. During the periods in which these rent payments were deferred, we recognized the deferred rent payments as non-cash rent expense. During the periods in which we repaid these deferred rent amounts, we recognized the repayment amounts as both an increase in cash rent expense and a decrease in non-cash rent expense.

(9)

Free cash flow before growth capital expenditures, a non-GAAP financial measure, is calculated as net cash provided by (used in) operating activities less center maintenance capital expenditures and corporate capital expenditures.

 

The following table provides a reconciliation from net cash provided by (used in) operating activities to free cash flow before growth capital expenditures (in thousands):



Three Months Ended


Six Months Ended


June 30,


June 30,


2022


2021


2022


2021

Net cash provided by (used in) operating activities

$          71,263


$          25,117


$             80,325


$       (13,039)

Center maintenance capital expenditures

(19,057)


(17,275)


(35,453)


(24,967)

Corporate capital expenditures

(19,765)


(14,752)


(46,725)


(22,819)

Free cash flow before growth capital expenditures

$          32,441


$           (6,910)


$              (1,853)


$       (60,825)

 

Capital Expenditures Summary
($ in thousands)
(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2022


2021


2022


2021

Growth capital expenditures, net of construction reimbursements (1)

$           103,064


$             46,617


$           170,462


$             74,187

Center maintenance capital expenditures

19,057


17,275


35,453


24,967

Corporate capital expenditures

19,765


14,752


46,725


22,819

Total capital expenditures

$           141,886


$             78,644


$           252,640


$           121,973



(1)

Growth capital expenditures include new center land and construction, growth initiatives, major remodels of acquired centers, and the purchase of previously leased centers.

 

Proceeds from Sale-Leaseback Transactions
($ in thousands)
(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2022


2021


2022


2021

Proceeds from sale-leaseback transactions

$             94,580


$                   510


$           174,246


$             33,933

 

Reconciliation of Net Loss to Adjusted EBITDA Guidance for Third Quarter and Fiscal Year 2022
($ in millions)
(Unaudited)



Three Months Ended


Twelve Months Ended


September 30, 2022


December 31, 2022

Net loss

$(24.0)    -    $(15.0)


$(73.6)    -    $(55.6)

Interest expense, net of interest income

30.5    -    29.5


117.4    -    115.4

Benefit from income taxes

(4.0)    -    (2.5)


(12.4)   -    (9.5)

Depreciation and amortization

56.4    -    56.9


228.2    -    229.2

Share-based compensation expense

6.1    -    6.1


39.3    -    39.4

COVID-19 related expenses

0.0    -    0.0


0.6    -    0.6

Gain on sale-leaseback transactions

0.0    -    0.0


(49.6)    -    (49.6)

Other non-recurring expenses

0.0    -    0.0


0.1    -    0.1

Adjusted EBITDA

$65.0    -    $75.0


$250.0    -    $270.0

 

SOURCE Life Time Group Holdings, Inc.


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Molecular Targeting Technologies, Inc. (MTTI) announces the issuance of Chinese Patent CN109153641B covering MTTI's lead radiotherapeutic product, EBTATEtm and others in its EvaTheratm platform. Approval of "Chemical conjugates of Evans blue...



News published on 10 august 2022 at 06:45 and distributed by: