EDEN PRAIRIE, MN—First quarter 2007 brought with it a 32.6 percent revenue growth for Life Time Fitness, the Eden Prairie, MN-based health club company. First quarter 2007 revenue was $153.1 million compared to $115.4 million in first quarter last year.
Net income grew 35.5 percent to $14.1 million or $0.38 per diluted share. This compares to net income of $10.4 million, or $0.28 per diluted share, for the same period last year.
As of the end of the quarter on March 31, the company operated 60 centers in 13 states. The company will open eight new centers this year, four of which will open in the second quarter, says Bahram Akradi, CEO of Life Time.
Year over year, memberships grew 23.7 percent to 474,364. In-center revenue grew 35.8 percent to $43.9 million during the first quarter. These numbers were primarily driven by membership ramp, targeted marketing programs, and new products and services, Akradi says.
Akradi says that the company expects revenue for 2007 to be between $640 million and $650 million, which is 25 percent to 27 percent growth. The increase is expected from new centers, membership increases at new and existing centers and in-center revenue growth. Akradi expects the company’s growth strategies to increase net income for the year to between $64.8 million and $65.8 million (a 28 percent to 30 percent growth).