Life Time Fitness reaches $1 billion in revenue, profits up!

Life Time Fitness reaches $1 billion in revenue, profits up

Life Time also reports keeping more of its customers.

Life Time Fitness Inc. (NYSE: LTM)

• Headquarters: Chanhassen
• Business: Operates fitness centers
• Rank on the Business Journal’s list of biggest Minnesota public companies: 31

News

Excluding one-time performance-based compensation expenses, Life Time surpassed analyst expectations in the fourth quarter. The company reached $1 billion sales for the first time.

Memberships grew 10 percent to 676,000 people by the end of 2011, up 10 percent from the previous year. Member attrition for the fourth quarter was 9.6 percent, down from 9.9 percent in the year-ago period. Attrition for the full year was 35 percent, beating the company’s goal of 36 percent.

Revenue at centers open at least 13 months was up 5 percent in the fourth quarter, with the average revenue per membership at $380 for the quarter and $1,543 for the year.

Stats

• Period: Fourth Quarter (ending Dec. 31)
• Sales: $250.9 million, up 12 percent
• Analyst Expectations: $246.3 million
• Profit: $19.8 million, up 13 percent
• Profit Per Share: 48 cents, up 5 cents (non-GAAP: 59 cents)
• Analyst Expectations: 55 cents

• Period: Full Year (ending Dec. 31)
• Sales: $1 billion, up 11 percent
• Analyst Expectations: $1 billion
• Profit: $92.6 million, up 15 percent
• Profit Per Share: $2.26, up 26 cents (non-GAAP: $2.42)
• Analyst Expectations: $2.33

Quote

Bahram Akradi, CEO: “We intend to drive growth through square footage expansion and increased dues revenue per membership. Additionally, by fostering increased customer engagement, we expect to see in-center and ancillary revenue growth, all while expanding our margins.”