Life Time Fitness beats estimates with fourth-quarter earnings

4th-quarter revenue up 8.3 percent over last year.

April 7, 2015 at 3:45PM

Life Time Fitness Inc. reported fourth-quarter earnings that exceeded analysts' expectations.

The Chanhassen-based operator of 113 fitness centers reported fourth-quarter revenue of $315.3 million, up 8.3 percent from the same period last year. Net income for the quarter was $22.4 million, or 59 cents per share. Its adjusted net income of 71 cents per share was 2 cents above estimates.

The strong fourth quarter allowed the company to report annual revenue of $1.29 billion, which matched analysts' expectations for the year. Annual revenue grew 7 percent, compared with $1.21 billion in 2013. Net income for 2014 was $114.4 million, or $2.94 per share, compared with $121 million, or $2.92 per share, in 2013.

Adjusted net income for the year was $117.8 million or $3.03 per share.

Last August, the company announced it was examining options to convert its real estate assets into a Real Estate Investment Trust. The company said in its earnings release that it is continuing to explore the options to split Life Time into a fitness center operating company and another invested in the underlying real estate assets of the company.

Life Time shares closed Thursday at $58.91, up 31 cents.

Patrick Kennedy • 612-673-7926

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Patrick Kennedy

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Business reporter Patrick Kennedy covers executive compensation and public companies. He has reported on the Minnesota business community for more than 25 years.

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