Life Time Group Holdings Inc (LTH, Financial) released its Q3 2023 earnings report on October 25, 2023, revealing a significant increase in total revenue and adjusted EBITDA. Despite a decrease in net income, the company's adjusted net income showed a remarkable improvement, turning from a loss in Q3 2022 to a gain in Q3 2023.
Financial Performance and Highlights
Life Time's Q3 2023 revenue increased by 17.9% to $585.2 million, driven by strong growth in membership dues and in-center revenue. The company's adjusted EBITDA also saw a significant increase of 101.4% to $143.0 million from $71.0 million in Q3 2022. However, net income decreased to $7.9 million from $24.7 million in the same period last year.
Life Time's CEO, Bahram Akradi, commented on the company's performance, stating:
I am very appreciative of our team and the milestones we achieved this quarter. We generated record levels of revenue and Adjusted EBITDA, and our trailing 12-month Adjusted EBITDA surpassed $500 million for the first time in our history."
Key Financial Tables
Life Time's financial summary for the three months ended September 30, 2023, shows a 17.9% increase in total revenue, an 8.2% increase in center operations expenses, and a 101.4% increase in adjusted EBITDA compared to the same period in 2022. The company's center memberships also increased by 7.6% compared to the prior year's third quarter.
For the nine months ended September 30, 2023, the company's revenue increased by 22.8%, center operations expenses increased by 10.0%, and adjusted EBITDA increased by 128.4% compared to the same period in 2022.
Future Outlook
Looking ahead, Life Time expects to be free cash flow positive after all capital investment, including new club growth, by the middle of 2024. The company is well-positioned for continued success with expectations for continued Adjusted EBITDA growth and significant asset-light opportunities.
For the fourth quarter of 2023, the company expects revenue to be between $555 million and $565 million, and net income to be between $14 million and $17 million. For the full year 2023, the company expects revenue to be between $2,213 million and $2,223 million, and net income to be between $66 million and $69 million.
