Life Time Fitness showed continued growth as it released its third quarter 2011 financials today.
The Chanhassen, MN-based company grew revenue by 11.4 percent to $265.4 million in third quarter 2011 compared to $238.3 million in third quarter 2010. Net income for the quarter grew 15.4 percent to $27 million compared to $23.4 million in the corresponding period last year.
For the nine months ended Sept. 30, 2011, Life Time has grown its revenue 10.7 percent to $762.8 million from $689.2 million during the first nine months of 2010. Net income for the first nine months of 2011 grew 15.4 percent to $72.8 million compared to $63.1 million for the first nine months of last year.
“We had a very solid third quarter,” Life Time CEO Bahram Akradi told analysts during today’s conference call. “Revenue growth remains strong, continuing the steady pace we have seen over the last several quarters. I am very pleased with these results. I’m proud of our team. We remain on track to accomplish our stated objectives for the year.”
Memberships grew 4.9 percent to 653,300 on Sept. 30, 2011, from 622,698 on Sept. 30, 2010. Attrition levels fell to 9 percent in third quarter 2011 compared to 9.6 percent in third quarter 2010. The attrition rate for the trailing 12-month period ending Sept. 30, 2011, is 35.3 percent, which is among the lowest attrition levels in the company’s history, Akradi told analysts. Attrition for the 12-month trailing period was 37.1 percent on Sept. 30, 2010.
Life Time increased its revenue expectations for the year to $1 billion to $1.005 billion from $985 million to $1 billion. Net income is now expected to increase to $94 million to $95.5 million from $93 million to $95 million, driven by revenue growth and cost efficiencies.
Life Time operates 92 centers with a combined 9.2 million square feet. The company plans to open three centers in 2012. The first center will open during the first quarter in Mississauga, Ontario, Canada, the company’s first club outside the United States. Life Time has to yet to announce the location of the other two planned clubs.
Life Time’s stock was at $40.04 during mid-afternoon trading on the New York Stock Exchange.