Life Time Group (LTH) Investor presentation summary

Executive summary

• Generated $2.4 billion in revenue and $600 million in Adjusted EBITDA for the TTM ended June 30, 2024, with double-digit growth in both metrics.

• Achieved positive free cash flow in Q2 2024 before sale-leaseback proceeds and reduced net debt leverage to under 3.0x, targeting under 2.5x by end of Q3.

• Proposes a new 7-year $1 billion term loan B and $400 million of other secured debt to refinance existing notes due 2026.

• Lender commitments are requested by October 22, 2024.

Strategic position and business model

• Operates 175 premium clubs with over 1.5 million individual members and $2.4 billion TTM revenue.

• Maintains a diversified portfolio in high-end North American markets, with 67% of clubs leased and $2.5 billion gross book value in owned real estate.

• Recurring subscription revenue exceeds 70% of total center revenue, supporting a highly predictable business model.

• Average annual visits per membership and revenue per membership have grown significantly since 2019.

Financial performance and leverage

• Q3 2024 preliminary results: ~$693M revenue, ~$41M net income, ~$180M Adjusted EBITDA, ~$138M free cash flow, and net debt leverage of ~2.4x.

• Historical financials show strong recovery post-pandemic, with Adjusted EBITDA margin reaching 24.2% in 2023.

• Sale-leaseback transactions generated ~$208M net proceeds in 2024, supporting deleveraging and growth.