Life Time Group Holdings, Inc. · NYSE:LTH
Life Time — Investor Presentation (March 2024)
18 slides from Life Time's investor presentation, Mar 12, 2024
Slide 1: Investor Presentation: 2024 is a Pivotal Year for Life Time
Investor Presentation 2024 is a Pivotal Year for Life Time March 12, 2024 Presentation title in footer 11 Miami at the Falls, FL
Slide 2: Forward-Looking Statements Safe Harbor
Forward-Looking Statements Safe Harbor This presentation includes “forward-looking statements” within the meaning of federal securities regulations. Forward-looking statements in this presentation include, but are not limited to, the plans, strategies and prospects, both business and financial, of L
Slide 3: Why Invest in Life Time
Why Invest in Life Time Highly-Coveted, Premium Leisure Brand Providing 1 Consistent Results and Asset Light Growth Opportunities High Barriers to Entry With a “Trophy” Real Estate 2 Footprint Built Over Decades 3 Impressive Track Record of Financial Performance Compelling Member Value Proposition D
Slide 4: Highly-Coveted, Premium Leisure Brand
1 Highly-Coveted, Premium Leisure Brand Results-Driven Inspiring Places Passionate People Programs 100K Sq Ft Average Club Size 135 Annual Visits Per Membership 815K Memberships 500+ Pools and Spas 26K Studio Classes per Week 1.4 Million Members 630+ Pickleball Courts 28+ Athletic Events 37,000+ Tea
Slide 5: Powerful Brand Footprint That Would Take Significant Capital and Decades to Replicate
Powerful Brand Footprint That Would Take Significant Capital 2 and Decades to Replicate New York, NY Phoenix, AZ Beaverton, OR Chicago, IL State Presence Shenandoah, TX Irvine, CA Premium and High-Profile Real Estate Footprint of 170+ Clubs With Significant Whitespace Opportunities Notes: Data as of
Slide 6: Long-Term Track Record of Revenue Growth
3 Long-Term Track Record of Revenue Growth Elevation of Brand to Higher Level Life Time as a Refinement of Resort-like Format Higher Return, Asset-light Model with Focus on Top Tier Markets Lifestyle Brand ($ in millions) Take Private in June 2015 $2,217 Second Initial Public Offering in October 202
Slide 7: Strong Double-Digit Growth with Healthy Margins
3 Strong Double-Digit Growth with Healthy Margins Total Revenue 2020–2022 Impacted by All Shutdowns and Restrictions Due to COVID $2.46B - $2.50B $2.22B $1.90B $1.82B $1.32B $0.95B 2019 2020 2021 2022 2023 2024E % YoY Growth: 8.6% (50.0%) 38.9% 37.9% 22.0% 11.0% - 12.8% Adjusted EBITDA 2020–2022 Imp
Slide 8: Member Engagement, Higher Visits and Improved Retention
Continued Innovation has Delivered Enhanced 4 Member Engagement, Higher Visits and Improved Retention Strategic investments driving significant increase in club usage and increased membership Pickleball Dynamic Personal Training Small Group Training ARORA 500+ permanent courts 160,000 average sessio
Slide 9: Highly Compelling Member Value Proposition…
4 Highly Compelling Member Value Proposition… Member Engagement But Member Cost Per Visit Has Revenue Per Member is Also Growing Continues to Increase Increased Less than Inflation +29% +3% +25% 135 $2,810 $20.77 $20.13 $20.37 +2% 124 +9% $2,528 +11% 108 $2,172 2019 2022 2023 2019 2022 2023 2019 202
Slide 10: …Driving All-Time High Member Retention…
4 …Driving All-Time High Member Retention… Annual Member Retention +138bps 2020–2022 Impacted by All Shutdowns and Restrictions Due to COVID 2019 2020 2021 2022 2023 2024E Higher Member Retention Validates the Attractiveness of our Customer Value Proposition A Key Performance Indicator in Any Subscr
Slide 11: …Showing Life Time Customer Appreciation of Strategic Positioning…
… Showing Life Time Customer Appreciation of Strategic 4 Positioning… Life Time’s Strategic Positioning Optimized Membership Enhanced Member Expanded Levels Experience Programming Member Acceptance More Visits per Higher Retention Membership Resulting Highly Predictable Recurring Subscription Model
Slide 12: …Supporting Continued Transition to More Predictable, Recurring Revenue Model
…Supporting Continued Transition to More Predictable, 5 Recurring Revenue Model Dues Revenue as a % of Total Center Revenue 72.3% 70.5% 70.7% 70.0% 65.3% 2019 2020 2021 2022 2023 2020–2022 Impacted by All Shutdowns and Restrictions Due to COVID 12
Slide 13: Attractive Demographic Profile
6 $145,000 Member Median Household Income 80% of Members Own a Home ~58% of Memberships are Families or Couples ATTRACTIVE DEMOGRAPHIC PROFILE ~59% of Member Have at Least a College Education Makes Life Time a Coveted Partner to Malls, Residential / Office Developments and REITs Balanced Member Gend
Slide 14: Diversified Real Estate Growth Opportunities Support Double Digit Growth With Positive FCF
Diversified Real Estate Growth Opportunities Support 6 Double Digit Revenue and Adjusted EBITDA Growth With Positive FCF Traditional Today Mall Residential Office Takeover Ground Up Sale-Leaseback 14
Slide 15: Execution Leading to Free Cash Flow and Leverage Improvement
Execution Leading to Free Cash Flow and 6 Leverage Improvement Net Debt Leverage Ratio 2022 Impacted by All Shutdowns and Restrictions Due to COVID (45%) 6.5x (17%) 3.6x 3.0x 2022 2023 2024E Note: Net Debt Leverage defined as Net Debt / Trailing Twelve Month Adjusted EBITDA. Refer to reconciliation
Slide 16: Life Time Key Takeaways
Life Time Key Takeaways Cash Flow Positive High Membership AND Low Double-Digit Engagement Revenue / Adjusted Powerful Competitive with Historically EBITDA Growth Moat that is Difficult High Retention to Replicate 16
Slide 17: Appendix: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($MM) Twelve Months Twelve Months Twelve Months Twelve Months Twelve Months Ended Ended Ended Ended Ended 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Net income (loss) $30 ($360) ($579) ($2) $76 Interest expense, net of inter
Slide 18: Appendix: Reconciliation of Net Debt and Leverage calculation
Appendix Reconciliation of Net Debt and Leverage calculation ($MM) Twelve Months Ended Twelve Months Ended 12/31/2022 12/31/2023 Current maturities of debt $15 $74 Long-term debt, net of current portion 1,806 1,859 Total Debt $1,821 $1,933 Less: Fair value adjustment 1 1 Less: Unamortized debt disco
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