lifetime102309
On the homepage
Thanksgiving
Out There
Video
Reusse's Turkey
Despite problems, Life Time raises profit outlook
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on Digg
Minnesota business by the numbers
See Minnesota's top earning companies, CEOs and non-profits
More from Business
Problems growing and keeping members in the recession took a toll on third-quarter earnings at Life Time Fitness Inc. Still, the Chanhassen-based chain of upscale fitness centers raised its earnings outlook for the year.
For the quarter ended Sept. 30, Life Time reported earnings of $20.6 million, or 51 cents per share, compared to $21.6 million, or 55 cents per share, for the third quarter of 2008. Revenue grew 7.8 percent to $214.3 million.
Analysts were looking, on average, for earnings of 48 cents a share on revenue of $215.2 million, according to Thomson Reuters.
In a conference call for investors and media, Chairman and CEO Bahram Akradi said his overall reaction to the quarter is "mixed."
Membership grew 6 percent in the third quarter, to 590,716, but Akradi said that was "clearly at the low end of our range of goals for the quarter. New membership acquisition has been very challenging."
Retaining members is "the most significant initiative of the company," he said, saying the company is still far from its goal of an attrition rate -- how many members leave the club over a year -- of 36 percent or less. It was 40.7 percent through the third quarter.
Stock in Life Time dropped nearly 9 percent Thursday, closing at $26.52.
Thomas Shaw, an analyst who follows Life Time for Stifel Nicolaus & Co. in Baltimore, said investors were concerned about the slow growth of new memberships "coupled with management expressing greater challenges than they have ever seen in terms of attracting new members."
Akradi said the company continues to cut costs and reduce debt. Life Time also raised its 2009 earnings outlook, now predicting it will earn $1.78 to $1.81 per share on revenue of $835 million to $845 million. Previously, it had forecast $1.65 to $1.75 per share on revenue of $830 million to $860 million.
Suzanne Ziegler
Recent Business stories
Employees of closed International Paper lumber mill in Va eligible for federal aid - October 22, 2009
Employees of closed International Paper lumber mill in Va eligible for federal aid - About 120 workers who lost their jobs when a lumber mill in Franklin closed are eligible for federal assistance. More
- Ponzi scheme suspect liked cars -- and his submarine
- 2 charged with running $190M Ponzi scheme
- Shoppers got a turkey deal
- 3 state firms are accused of forging signatures
- Tight economy forces some to stay home for holiday
- 'Christmas creep' pushes shopping ever earlier
- China executes 2 for role in tainted milk scandal
Blog: Patent Pending
Lights out at U energy conference. Irony police notified.
Just as Lawrence Kazmerski, a top official at the National Renewable Energy Laboratory, was about to give the keynote address at the University of Minnesota's annual E3 conference at the RiverCentre in St. Paul, the lights went out, bathing the audience in darkness and a deep sense of irony.
Comment on this story | Read all 1 comments | Hide reader comments