Life Time Hits $1B in 2011 Revenue, Grows Profits
In 2011, Life Time Fitness, Inc., hit $1 billion in annual revenue for the first time in its history.
The fast-growing Chanhassen-based fitness club operator said Thursday that sales increased 11 percent last year, and profits rose 14.8 percent to $92.6 million.
Memberships also grew in 2011, jumping 10.4 percent to 676,054 as of December 31. That increase was thanks, in part, to Life Time's acquisition of nine Lifestyle Family Fitness facilities in Indiana, Ohio, and North Carolina. But excluding that transaction, memberships still grew 5.5 percent. Attrition for the year, meanwhile, was 35 percent, down from 36.3 percent in 2010.
“2011 marked another strong year of operating results for Life Time,” Life Time Chairman, President, and CEO Bahram Akradi said in a statement. “We achieved our stretch revenue goal of $1 billion, marking a key milestone for our company. We also reestablished a faster growth rate via increased square footage, membership price and mix optimization, and sustained improvement in our in-center and ancillary business revenue.”
In addition to strong performance for the year as a whole, Life Time also reported positive results for the fourth quarter.
Revenue rose 12.2 percent to $250.9 million, and profits grew about 13 percent to $19.8 million. The company posted earnings of 48 cents per share, missing analyst expectations by 7 cents. Excluding one-time performance-based compensation expenses, Life Time's earnings were 59 cents per share. Attrition for the quarter was 9.6 percent, down from 9.9 percent for the same period in 2010.
Revenue for centers open for at least 13 months grew about 5 percent for both the quarter and the year. Meanwhile, average center revenue per membership totaled $380 for the fourth quarter and $1,543 for the full year.
Life Time is gearing up for another strong year in 2012. The company said that it expects revenue to grow 10 to 12 percent and profits to increase 18 to 24 percent.
“We intend to drive growth through square footage expansion and increased dues revenue per membership,” Akradi said in a statement. “Additionally, by fostering increased customer engagement, we expect to see in-center and ancillary revenue growth, all while expanding our margins.
In March, Life Time plans to open its first Canada fitness center in Mississauga, Ontario. The company will also open its first Oklahoma location, in Tulsa, in April and its fifth Atlanta location in May.
Life Time, one of Minnesota's 35 largest public companies based on revenue, made headlines last week when it announced the acquisition of a club in Atlanta-a deal that makes it the largest operator of indoor tennis courts in the country.