CHANHASSEN, MN -- Despite an increase in revenue for Life Time Fitness in the third quarter, CEO Bahram Akradi is not satisfied with his company’s performance.

The cause of that disappointment is Life Time’s 10.6 percent attrition rate in the quarter.

“Things aren’t working at this stage,” Akradi told analysts today during the Chanhassen, MN-based company’s earnings call. “Business is as tough as I have ever seen it in 20-some years. In all the past recessions, I felt no impact in our business. In this particular time, things are just not working.”

Total revenue grew 7.8 percent to $214.3 million in third quarter 2009 from $198.8 million during the same period last year. For the nine months ended Sept. 30, 2009, total revenue grew to $633.3 million from $575.7 million during the first nine months of 2008.

Net income for the company was down slightly—$20.6 million in third quarter 2009 compared to $21.6 million in third quarter 2008. For the nine months ended Sept. 30, 2009, net income was $54 million compared to $58.8 million in the prior-year period.

Memberships at Life Time increased 6 percent to 590,716 as of Sept. 30, 2009 from 557,164 at the same time last year.

“We remain steadfast that we are not satisfied, not even close,” Akradi said. “This business environment has remained as tough as last fourth quarter. We still feel the headwinds. However, we are committed to win in these headwinds.”

Life Time raised revenue expectations from $830-$860 million to $835-$845 million and net income expectations from $67-$71 million to $71-$72.5 million.

The company plans to open one club in January in the Cleveland suburb of Beachwood, OH, and two additional clubs in 2010. Life Time currently operates 84 clubs in 19 states.

Life Time’s stock, which opened at $29.22 this morning, dropped 12.10 percent to $25.58 during midday trading on the New York Stock Exchange.

Earlier in the week, Life Time announced the election of two new members to its board of directors: Jack W. Eugster and John K. Lloyd. Eugster served as chairman, president and CEO of Musicland Corp., a retail music and home video company, from 1980 until his retirement in 2001. Lloyd has served as president of Meridian Health, a $1.1 billion New Jersey-based integrated health system, since 1997.

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