Life Time (US:LTH)2025-02-27 11:58Debt and Financing - As of December 31, 2024, the company had outstanding borrowings of $10.0 million under the Revolving Credit Facility and $31.2 million in outstanding letters of credit, with total revolver availability of $608.8 million[249]. - The Term Loan Facility had an outstanding balance of $1,000.0 million as of December 31, 2024, with interest rates at SOFR plus an applicable margin of 2.50%[250]. - A one percentage point change in interest rates would result in an approximately $16.5 million change in annual interest expense on the indebtedness under the Credit Facilities[251]. - The company amended its credit agreement to replace the Canadian Dollar Offered Rate (CDOR) with the Canadian Overnight Repo Rate Average (CORRA) in 2024[250]. - Proceeds from borrowings in 2024 amounted to $1.50 billion, a substantial increase from $44.29 million in 2023[290]. - The company issued $500 million in 6.000% Senior Secured Notes due November 2031 in November 2024[402]. - The company retired its Former Term Loan Facility in September 2024, paying an aggregate principal amount of $200 million[408]. - The company recognized a loss of $11.1 million upon extinguishment of the 5.750% Senior Secured Notes and the 8.000% Senior Unsecured Notes during the year ended December 31, 2024[407]. - Total debt as of December 31, 2024, was approximately $1.56 billion, a decrease from $1.95 billion in 2023[400]. - Future maturities of long-term debt total $1.56 billion as of December 31, 2024, with significant amounts due in 2025 and 2026[429]. Revenue and Income - Total revenue for 2024 reached $2,620,995, an increase of 18.2% compared to $2,216,593 in 2023[281]. - Center revenue grew to $2,546,651, up 18.2% from $2,154,329 in the previous year[281]. - Net income for 2024 was $156,240, a significant increase from $76,063 in 2023, representing a growth of 105.5%[284]. - The company reported a basic income per share of $0.77 for 2024, compared to $0.39 in 2023, reflecting a 97.4% increase[281]. - Membership dues and enrollment fees reached $1,853.963 million in 2024, up 19.0% from $1,557.289 million in 2023[384]. - In-center revenue increased to $692.688 million in 2024, a rise of 16.0% compared to $597.040 million in 2023[384]. Expenses and Liabilities - Operating expenses totaled $2,263,512, an increase of 13.7% from $1,991,383 in 2023[281]. - The provision for income taxes for 2024 was $52.528 million, significantly higher than $18.727 million in 2023[388]. - The company reported a net deferred tax liability of $85.255 million as of December 31, 2024, compared to $56.066 million in 2023[391]. - The total accrued expenses and other current liabilities as of December 31, 2024, amounted to $179,444 thousand, down from $185,305 thousand in 2023[370]. - The company recognized impairment charges of $11.0 million, $14.5 million, and $2.1 million for long-lived assets during the years ended December 31, 2024, 2023, and 2022, respectively[323]. Assets and Investments - Total assets increased to $7,152,537 in 2024, up from $7,032,141 in 2023, marking a growth of 1.7%[279]. - The company has no investments in marketable securities as of December 31, 2024[248]. - The total goodwill balance on the consolidated balance sheets was $1,235.4 million as of December 31, 2024, with $1,233.1 million allocated to the Centers reporting unit and $2.3 million to Corporate Businesses[324]. - Goodwill remained stable at $1,235.4 million as of December 31, 2024, consistent with the previous year[380]. - The company has investments in unconsolidated subsidiaries, including Bloomingdale LLC and D-M Holdings, accounted for using the equity method[345][346]. Cash Flow - Net cash provided by operating activities increased to $575.12 million in 2024, compared to $463.00 million in 2023, reflecting a growth of approximately 24.2%[290]. - The company reported a net cash used in investing activities of $292.74 million in 2024, down from $574.16 million in 2023[290]. - Cash and cash equivalents at the end of the period were $27.88 million, a decrease from $29.97 million at the end of 2023[290]. - The company’s cash payments for interest, net of capitalized interest, increased to $136,860 thousand in 2024 from $122,154 thousand in 2023[371]. Lease and Operating Activities - The company entered into sale-leaseback transactions involving five properties with unrelated third parties and one with a related party during the year ended December 31, 2024[274]. - The company recognized a net gain of $19.8 million on sale-leaseback transactions in 2024, with gross proceeds of $173.2 million from the sale of five properties[432]. - Total lease costs for the year ended December 31, 2024, amounted to $381.6 million, an increase from $344.7 million in 2023[431]. - As of December 31, 2024, total lease-related liabilities were $2.48 billion, up from $2.35 billion in 2023[437]. - The company was in compliance with all material covenants as of December 31, 2024[428]. Internal Controls and Reporting - The company's internal control over financial reporting was assessed as effective as of December 31, 2024, based on criteria established by COSO[258]. - The company maintained effective internal control over financial reporting, as confirmed by an independent audit[261]. Accounting and Tax Matters - The company expects to adopt new accounting guidance for income tax disclosures in its Annual Report for the year ended December 31, 2025[301]. - Federal income tax net operating loss carryforward related to U.S. operations was approximately $170.7 million as of December 31, 2024[393]. - The company reported state net operating loss carryforwards totaling approximately $196.9 million, with $147.6 million expiring between 2027 and 2044[394]. - The company had a business interest carryforward of approximately $264.2 million as of December 31, 2024, compared to $229.6 million in 2023, both of which can be carried forward indefinitely[396].