Life Time membership grows, profits rise 19%
- Article by: JACKIE CROSBY
- Star Tribune
- October 18, 2012 - 9:46 PM
Life Time Fitness Inc. said Thursday that profits grew 19 percent in the third quarter as it notched up membership at its chain of clubs and increased income from services.
Net income grew to $32.1 million, or 77 cents per share. Revenue was up 11 percent to $249.9 million.
Chanhassen-based Life Time operates 105 fitness centers in the United States and Canada. It is rebranding the nine Lifestyle Family Fitness facilities in Indiana, North Carolina and Ohio it purchased in late 2011.
The company said it also is boosting fitness and nutritional programs at Atlanta-based Racquet Club of the South, a full-service tennis facility with indoor and outdoor courts as well as swimming and spa services, which it acquired in February. The acquisition expanded tennis programming to 16 Life Time locations in seven states, and made it the nation's largest operator of indoor tennis courts.
The acquisitions helped expand membership rolls 9.4 percent during the quarter compared to the same period a year ago, bringing in $187.6 million in revenue. In-center sales, which includes coaching and spa services, grew 12 percent to $90.5 million. Excluding Lifestyle Fitness facilities, memberships grew 3 percent.
Those gains were partially offset by operating expenses, which rose 9 percent during the quarter.
The company is "making strategic investments in programs and services that we see as powerful opportunities to enhance our members' experience, while driving membership acquisition and retention," CEO Bahram Akradi said.
Life Time updated its annual outlook, forecasting earnings to be $2.73 to $2.76 per share on revenue of $1.13 billion to $1.14 billion, a gain of 11 to 12 percent. Net income should grow 24 to 25 percent, or $114.5 million to $116 million. Life Time shares fell $1.16 to $44.19.
Jackie Crosby 612-673-7335
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