Life Time Reports Preliminary Financial Results
The athletic country club has released Q4 and full-year fiscal 2022 results, and introduces fiscal 2023 guidance. The preliminary findings come ahead of a full report in March.
Life Time has released preliminary financial results for the fourth quarter and fiscal year 2022 and guidance for 2023.
Preliminary Q4 2022 Financial Results – Life Time
Compared to the previous year, Life Time reports strong growth in both membership dues and in-center revenues. The fitness club chain says revenue growth is expected to reflect its continued success with its pricing strategy.
Life Time also anticipates growth despite some new club openings occurring later than expected and two club openings experiencing postponement. The fitness brand reports five new clubs opened in the fourth quarter, with ten new clubs having launched in 2022.
Preliminary Full-Year 2022 Financial Results – Life Time
| ($ in millions) | For the year endedDecember 31, 2022(Preliminary) | For the year endedDecember 31, 2021(Actual) | PercentChange(Usingmidpoint asillustrative) | For the year endedDecember 31, 2022(Guidance –Issued November 9,2022) |
| Revenue | $1,822 – $1,823 | $1,318 | 38 % | $1,810 – $1,840 |
| Net (loss) | $(4) – $(2) | $(579) | NM | $(26) – $(17) |
| Adjusted EBITDA | $279 – $281 | $80 | 250 % | $255 – $265 |
Introduction of Fiscal 2023 Annual Guidance
Life Time reports $2.2 – $2.3 billion in revenue and expects growth to be driven by “continued ramping of mature clubs,” new club openings, strategic investment, and pricing.
The health club chain reports anticipated rent expenses for fiscal 2023 to be between $280 -$290 million, which includes full annualized rents for its sale-leasebacks Life Time completed in 2022. The expected expenses also include rent from sale-leaseback transactions expected to complete this year, and non-cash rent where the fitness brand will break ground for construction but not open for operation this year.
Life Time expanded last year in New York, adding a location in Brooklyn and another at One Wall Street.
Life Time has also jumped on the pickleball craze, operating over 300 permanent pickleball courts. The fitness brand plans to open 600 more courts by the end of this year and offers lessons, leagues, and tournaments. While the activity is geared to fitness enthusiasts of any age, it’s become a popular pastime of more mature gym attendees.
More recently, the luxury health club announced it would open in Clarendon, VA, this summer after Equinox terminated its lease from the location. The facility, across from a Whole Foods, will include a cafe, spa, group fitness studios, and a co-working space open 24 hours on the fourth floor. Life Time is currently accepting members to join a waitlist for the upcoming location.
The fitness club will release a comprehensive report on 2023’s guidance as part of its 2022 fourth quarter and full year earnings release in March.
