CHANHASSEN, MN -- Life Time Fitness reported another quarter of growth in revenue and net income during a conference call with analysts.
Life Time’s third quarter 2010 revenue grew 11.2 percent to $238.3 million compared to $214.3 million during the same period last year, the Chanhassen, MN-based company announced on Thursday. Total revenue for the first nine months of 2010 grew 8.8 percent to $689.2 million from $633.3 million in the first nine months of 2009.
Net income for the quarter was $23.4 million compared to $20.6 million in third quarter 2009 and $63.1 million for the first nine months of 2010 compared to $54 million in the same period last year.
“Our same-store sales, operating margins, revenue per member, and efficient rate all improved for the quarter and year-to-date compared to 2009,” Life Time CEO Bahram Akradi said during the call. “We believe this is a direct result of the efforts of our team and the effectiveness of the substantial investments we have made in the business. We are determined to demonstrate our value proposition and connect with our members in the best way imaginable.”
Life Time also increased its memberships by 5.4 percent, from 590,716 on Sept. 30, 2009, to 622,698 on Sept. 30, 2010.
“While down approximately 9,000 memberships since [second quarter 2010], it is much better than the 17,500 membership loss from Q2 to Q3 2009,” Life Time CFO Mike Robinson said on the call.
Attrition levels are decreasing at Life Time, too. Akradi said on the call that Life Time’s trailing 12-month attrition rate for the quarter was 37.1 percent, down from 40.6 percent at the same time last year.
“We are pleased with the results as we relentlessly drive towards our goal of 36 percent [attrition],” Akradi said. “That said, with the continuing economic headwinds, we have never had to work harder to attract and retain members.”
Life Time updated its forward-looking statements for the year. It expects revenue to be $900 million to $910 million (up from $890 million to $905 million) and net income to be $81.0 million to $83.5 million (up from $79.0 million to $81.0 million).
The number of open Life Time clubs on Sept. 30, 2010, was 89 compared with 84 on Sept. 30, 2009.
In August, Life Time opened a new yoga studio, LifePower Yoga Uptown, in Minneapolis. In December, the company plans to open its newest club in Centennial, CO. It will be the third and final large-format club the company will open this year.