Life Time (LTH)2025-02-27 17:58Financial Data and Key Metrics Changes - Total revenue increased by 18.7% to 37.2 million, while adjusted net income increased by 59% to 177 million, up 28.5%, with an adjusted EBITDA margin of 26.7%, an increase of 210 basis points compared to Q4 2023 [9] - For the full year, total revenue increased by 18.2% to 156.2 million [10] Business Line Data and Key Metrics Changes - Center memberships increased by 6.4% year-over-year, ending the quarter with over 812,000 memberships, and total memberships reached approximately 866,000 when including digital on-hold memberships [8] - Average monthly dues rose to 796 [8] Market Data and Key Metrics Changes - Comparable center revenue growth was 13.5%, the largest of the year, indicating strong engagement from members [7] - The company expects to open 10 to 12 new clubs in 2025, with a robust pipeline for future growth [16] Company Strategy and Development Direction - The company raised its revenue and adjusted EBITDA guidance for 2025, now expecting revenue between 2.975 billion, and adjusted EBITDA between 800 million [13] - The focus remains on enhancing member experience and retention, which has reached record levels, contributing to revenue growth [14] - The company plans to maintain current debt levels around 1.5 billion while growing revenue and EBITDA, aiming for a net debt leverage ratio of less than two times by the end of the year [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business, citing strong membership dues and retention as key drivers for growth [37] - The company is optimistic about the potential of its digital offerings and health optimization services, which are expected to contribute significantly to future revenue [18][95] Other Important Information - The LT Digital platform has over 1.7 million subscribers, growing by more than 100,000 subscribers per month without marketing efforts [18] - The company is focused on leveraging AI to enhance operational efficiency and customer experience [81] Q&A Session Summary Question: Inquiry about funding expansion and sale-leaseback market - Management confirmed plans for 240 to $250 million in sale-leaseback transactions this year to fund expansion [24][26] Question: Clarification on leverage expectations - Management aims to maintain debt to EBITDA under 2.25 times, with expectations to finish the year under two times if EBITDA grows as projected [45][48] Question: Discussion on EBITDA margin outlook - Management indicated that while the EBITDA margin is expected to remain around 26.7%, there is potential for slight increases without compromising customer experience [56][58] Question: Inquiry about membership growth and pricing opportunities - Management noted that pricing opportunities arise when clubs reach capacity, and they have successfully increased dues for legacy customers [72][75] Question: Discussion on recovery space and its impact on revenue - Management is optimistic about the recovery space's potential to drive in-center revenue and membership growth, with ongoing investments in recovery services [140][143]