Life Time Group Holdings, Inc. (NYSE: LTH) has reported its preliminary estimated unaudited financial results for the fourth quarter and full-year fiscal 2024, along with select fiscal 2025 guidance. The company announced a robust increase in various financial metrics.
For the fourth quarter of 2024, the company estimated total revenue to increase by 18.5% to $661-$663 million compared to the same period in the previous year. Additionally, net income is estimated to increase by 35.0% to $31-$33 million, and adjusted net income is estimated to increase by 42.1% to $52-$56 million for the same period.
For the full-year fiscal 2024, total revenue is estimated to increase by 18.2% to $2,619-$2,621 million compared to the previous year. Net income is estimated to increase by a substantial 98.4% to $150-$152 million, and adjusted net income is estimated to increase by 49.6% to $192-$196 million for the year.
Looking ahead to fiscal 2025, the company introduced select financial guidance, with estimated total revenue to increase by 12.2% to $2,910-$2,970 million. Net income is estimated to increase by 75.8% to $262-$269 million, and adjusted EBITDA is estimated to increase by 14.1% to $760-$780 million for the year.
Furthermore, the company expects to maintain positive free cash flow on an annual basis, manage its net debt to adjusted EBITDA leverage ratio to achieve and then maintain at or below 2.25 times, and open 10-12 new centers. Additionally, the company anticipates comparable center revenue growth of 7% to 8% for fiscal 2025.
The unaudited preliminary estimated financial results are subject to revision based upon the completion of the year-end financial closing process and audit. The company's unaudited preliminary estimated financial information has been prepared by its management and is not audited by its independent registered public accounting firm.
Life Time Group Holdings, Inc. also provided reconciliations of non-GAAP financial measures, including adjusted net income, adjusted EBITDA, free cash flow, and net debt to adjusted EBITDA leverage ratio, to the corresponding GAAP measures. These non-GAAP financial measures are presented to assist investors and analysts in comparing the company’s operating performance across reporting periods on a consistent basis.
As a result of these announcements, the company's shares have moved 7.6% on the market, and are now trading at a price of $26.97. Check out the company's full 8-K submission here.
