Life Time (US:LTH)2025-05-08 11:01Revenue Growth - Total Center revenue increased to $685.7 million for the three months ended March 31, 2025, compared to $580.5 million for the same period in 2024, representing an 18.1% growth[66] - Total revenue for Q1 2025 reached $685,654,000, up 18.1% from $580,485,000 in Q1 2024[80] - Total revenue increased by $109.3 million to $706.0 million for the three months ended March 31, 2025, compared to $596.7 million for the same period in 2024[94] Membership and Engagement - Center memberships increased to 826,374 in Q1 2025 from 802,010 in Q1 2024, representing a growth of 3.4%[80] - Average revenue per center membership rose to $844 for the three months ended March 31, 2025, up from $745 for the same period in 2024, indicating a 13.3% increase[64] - Membership dues and enrollment fees accounted for 73.2% of total revenue in Q1 2025, slightly down from 73.3% in Q1 2024[80] - Membership dues and enrollment fees accounted for 72.5% of total revenue, increasing by $76.2 million, with memberships growing to 826,374 from 802,010[96] Financial Performance - Net income surged to $76,142,000 in Q1 2025, compared to $24,917,000 in Q1 2024, reflecting a net income margin increase to 10.8% from 4.2%[80][81] - Adjusted EBITDA for Q1 2025 was $191,588,000, a 31.1% increase from $145,977,000 in Q1 2024, with an adjusted EBITDA margin of 27.1%[80][85] - Free cash flow improved to $41,374,000 in Q1 2025, contrasting with a negative free cash flow of $(66,394,000) in Q1 2024[80][86] - Operating expenses totaled $598.4 million, up $73.7 million, with center operations expenses increasing by $49.1 million due to new centers and membership growth[97] Strategic Initiatives - The company has launched new strategic initiatives, including pickleball and Dynamic Personal Training, which have driven increased engagement and membership[67] - Life Time Work and Life Time Living locations, which are asset-light models, have expanded to 15 and 4 locations respectively as of March 31, 2025, generating interest from property developers[69] - The digital platform offers an integrated experience with live streaming fitness classes and a digital health store, enhancing member engagement[67] Expansion Plans - The company plans to open 10 to 12 new locations on average per year, targeting affluent markets to enhance revenue per membership and returns on invested capital[66] - As of March 31, 2025, there were 28 centers open for less than three years and 13 new centers under construction, with significant capital expenditures already invested[66] - The company opened one new center in Q1 2025, bringing the total number of centers to 180, up from 172 in Q1 2024[80][82] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $93.4 million to $183.9 million, primarily due to improved business performance[108] - Total capital expenditures decreased to $142.5 million from $156.8 million, with growth capital expenditures at $93.5 million[110] - As of March 31, 2025, total cash and cash equivalents were $59.0 million, with total availability under the Revolving Credit Facility at $678.2 million[107] Economic Factors - The company continues to monitor macroeconomic factors, including inflation and interest rates, but has experienced revenue growth and expanded operating margins despite uncertainties[70] - The effective tax rate was 7.8% for the three months ended March 31, 2025, down from 28.5% in the same period in 2024[102]