Life Time Sets Pricing of Public Offering of 12M Shares of Common Stock
The premium fitness operator recently raised its full-year revenue guidance
Following a stellar Q2, Life Time is selling 12,000,000 shares of common stock held by the luxury athletic country club operator and certain existing stockholders to the public at $21.75 per share, the proceeds of which will go towards general corporate purposes and possibly debt repayment.
The underwriters in the offering will have a 30-day option to purchase up to an additional 1,800,000 shares of common stock from the selling stockholders, according to the fitness operator. The offering is expected to close Aug. 14, 2024.
Life Time won’t receive any proceeds from the sale of the shares of the common stock by the selling stockholders.
More than a Gym
The high-end fitness and lifestyle operator recently raised its full-year revenue guidance to between $2.56 and $2.59 billion following another strong quarter that saw continued high member engagement and the opening of three new clubs.
On a call with investors earlier this month, Life Time CEO Bahram Akradi noted that the luxury club — brimming with activities from pickleball to personal training — are viewed as more than just a fitness facility or a health club to Life Time members.
“(Life Time) — it’s everything to our members,” he said. “It’s their social place, it’s their beach club, it’s their programs, it’s their network.”
Akradi also pointed out that LifeTime has managed to score such enthusiasm from prospective members that waitlists to join are commonplace, even with higher-than-average monthly dues of $190 per month.
“These results are with zero salespeople in the company,” he told investors. “We’ve told you guys this for the last three years, but maybe now the results speak for themselves: there’s zero promotions. There’s no advertising for the membership.”
The premium health and wellness operator is also eyeing continued investment in artificial intelligence, having previously partnered with Microsoft to launch L.AI.C, an AI-powered Life Time member companion housed within the Life Time member app. While the AI will first support basic member needs (such as answering simple questions), Life Time plans to eventually use the advanced technology to create a more personalized experience for members.
While staying on top of the tech game is a priority for Life Time, it’s certainly not forgetting pickleball. The company, which has steadily invested in the beloved sport in recent years and is now the largest owner and operator of permanent pickleball and indoor tennis courts, just filed a patent to develop Ultimate Pickleball, an improved ball that addresses common complaints, such as inconsistency and lack of durability.
Ultimate Pickleball will first roll out exclusively in Life Time clubs this month and will be used at all Pickleball Classic tournaments before becoming available at Life Time’s racquet sports pro shops and online.
