EDEN PRAIRIE, MN--Life Time Fitness Inc. reported that its revenue grew 28.3 percent in the third quarter 2005 to $101.6 million from $79.2 million during the same period last year. Net income during the quarter grew 35.8 percent to $10.7 million and earnings per diluted share grew 31.8 percent to $0.29. This compares to net income of $7.9 million, or $0.22 per diluted share, for the third quarter last year. For the nine months ended September 30, 2005, revenue grew 24.6 percent to $286.5 million from $229.9 million during the same period last year. Net income grew 40.4 percent for the same period to $29.1 million, or $0.81 per diluted share, from $20.8 million, or $0.65 per diluted share for the first nine months of 2004.
"We are pleased with our third quarter financial results," said Bahram Akradi, Life Time Fitness chairman and chief executive officer. "These results reflect the company's continued focus and execution on our fundamental growth strategies, including new center growth, membership ramp, and increasing in-center revenue. During the quarter, we opened new centers in Chanhassen, MN; Austin, TX; and Romeoville, IL. We now operate 44 centers nationally with one more planned center opening during the fourth quarter in San Antonio, TX. Total memberships grew 20.9 percent to more than 345,000, driven primarily by the ramp at centers opened in 2004 and both new center and presale activities at seven locations since the beginning of 2005."
The company expects that full-year revenue for 2005 will grow 22 percent to 24 percent (or $381 million-$387 million) driven by new center growth, membership ramp at new and existing centers and in-center revenue growth. Akradi also said he expected full-year net income to grow 34 percent to 36 percent (or $38.7 million-$39.3 million), up from 32 percent to 34 percent (or $38.1 million to $38.7 million), driven by growth strategies. Diluted earnings per share are expected to grow 22 percent to 24 percent (or $1.06-$1.08), up from 21 percent to 23 percent (or $1.05-$1.07), driven by net income growth and offset by the increase in weighted average diluted shares resulting from the initial public offering in 2004.