Life Time Group Holdings, Inc. · NYSE:LTH
Life Time — Investor Presentation (January 2023)
20 slides from Life Time's investor presentation, Jan 31, 2023
Slide 1: Investor Presentation January 31, 2023
Investor Presentation January 31, 2023 Rancho San Clemente, CA
Slide 2: Legal Disclaimer
2 Legal Disclaimer Forward-Looking Statements 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 financia
Slide 3: 2022 Preliminary Results
3 2022 Preliminary Results McKinney at Craig Ranch, TX
Slide 4: Life Time Expects to Deliver Strong Fourth Quarter Results
Presentation_08.02.21_v08.pptx 4 Life Time Expects to Deliver Strong Fourth Quarter Results Including Net Income and Adjusted EBITDA Above Guidance Summary of Preliminary 2022 Financial Results Provided on January 9, 2023 ($MM) 2022 Q4 Net Income and Adjusted EBITDA expected to finish above guidance
Slide 5: Our Strategic Initiatives Are Working and Gaining Momentum
Presentation_08.02.21_v08.pptx 5 Our Strategic Initiatives Are Working and Gaining Momentum Branding, Positioning, Programming and Pricing Pickleball ARORA Dynamic Personal Training Small Group Training 1. Growth from January 2022 to December 2022. 147% increase in Unique Participants1 584% Increase
Slide 6: Continued Recovery Across Center Footprint
6 Membership Dues as a % of 2019 Revenue by State (%) Reflects Clubs Open Prior to 2019 – As of November 2022 Continued Recovery Across Center Footprint As of November 2022. 14 States 15 States 56 Clubs Fully Recovered to 2019 Membership Dues Levels 112% 111% 111% 107% 107% 106% 105% 103% 103% 103%
Slide 7: Accelerated Recovery Across Center Footprint
7 Membership Dues as a % of 2019 Revenue by State (%) Reflects Clubs Open Prior to 2019 – As of December 2022 Accelerated Recovery Across Center Footprint As of December 2022. 16 States 13 States 61 Clubs Fully Recovered to 2019 Membership Dues Levels 114% 112% 112% 109% 108% 106% 106% 105% 104% 104
Slide 8: Our Strategic Initiatives Are Working and Gaining Momentum
Presentation_08.02.21_v08.pptx 8 Our Strategic Initiatives Are Working and Gaining Momentum Branding, Positioning, Programming & Pricing 83% 84% 85% 88% 90% 93% 93% 94% 95% 96% 97% 98% Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23E Total Membership Dues –
Slide 9: Our Strategies Are Working and Gaining Momentum
Presentation_08.02.21_v08.pptx 9 Our Strategies Are Working and Gaining Momentum Branding, Positioning & Pricing Total Membership Dues – Clubs Open Prior to 2019 ($MM) Monthly Membership Dues Have Recovered for Clubs Open Prior to 2019 $94 $78 $97 Jan 2019 Jan 2022 Jan 2023 Est 103% of Jan 2019 Dues
Slide 10: 2023 Guidance
10 2023 Guidance Palm Beach Gardens, FL
Slide 11: Life Time Expects to Deliver Record-setting Performance in FY2023
Presentation_08.02.21_v08.pptx 11 ($MM) Life Time Expects to Deliver Record-setting Performance in FY2023 2023 vs 2022: Revenue growth expected from continued ramping of mature clubs, new club openings, strategic investments and pricing. Adjusted EBITDA growth expected from revenue growth and margin
Slide 12: New Club Ramp vs. Expected Performance at Maturity
Presentation_08.02.21_v08.pptx 12 end Year 1 end Year 2 end Year 3 end Year 4+ New Club Ramp vs. Expected Performance at Maturity Revenue Adjusted EBITDA 85%-95%90%-100% 60%-70% 75%-85% 25%-35% 60%-70% 100%+ 100%+ 12 Significant Revenue and EBITDA Opportunity Significant Revenue and EBITDA Opportuni
Slide 13: Robust Adjusted EBITDA Growth as Mature Clubs Continue Ramping
13 Year 2 Maturity (Clubs 60%-70% Ramped) Year 3 Maturity (Clubs 85%-95% Ramped) Year 4+ Maturity (Clubs 100% Ramped) Year 1 Maturity (Clubs 25%-35% Ramped) Robust Adjusted EBITDA Growth as Mature Clubs Continue Ramping to Pre-Pandemic Levels of Profitability Historical figures based on company fili
Slide 14: Strong New Club Ramp Has Occurred Even During a Recession
14 58% 76% 88% 2009 2010 20122011 95% 11 Clubs Opened in 2008 100% 2013 Strong New Club Ramp Has Occurred Even During a Recession Adjusted EBITDA as a % of Actual Performance at Maturity Location Month Opened in 2008 Parker, CO Jan Johns Creek, GA May West County–Chesterfield, MO Jun Mountain Brook,
Slide 15: Multiple Tailwinds Exist for 2023
15 Multiple levers of revenue and margin expansion support our expectation for continued growth this year Multiple Tailwinds Exist for 2023 Ramp of Existing Clubs New Clubs Membership Margin Expansion Proven Track Record in Downturns In-Center Revenue Deleveraging • Continued ramp of existing clubs
Slide 16: Life Time Is Well Positioned for Future Growth
16 Life Time Is Well Positioned for Future Growth Irvine - Lakeshore, CA
Slide 17: Capital Light Investment Strategy Expected to Generate Significant Adjusted EBITDA
17 Adjusted EBITDA 30% – 35% 65% – 70% 85% - 90% Capital Light Investment Strategy Expected to Generate Significant Adjusted EBITDA and Strong ROIC Dollars in Millions We Deploy a Capital Light Investment Strategy 1. Gross Invested Capital, net of tenant allowances; excludes proceeds from sale-lease
Slide 18: Life Time Has Unique Strategic Position
18 Life Time Has Unique Strategic Position Existing Club Footprint New Club Pipeline Power of Life Time Brand Equity Consistent Track Record • Over 160 locations across North America • 80+ locations in various stages of discussion and development • Over 100 billion brand impressions • 30-year histor
Slide 19: • Continue revenue and profitability ramp of mature clubs • In-center revenue increase from
19 • Continue revenue and profitability ramp of mature clubs • In-center revenue increase from programming investments • Continue margin expansion activities Planned SLB Proceeds of ~$300M Expected to Surpass 2019 Revenue and 2019 Adjusted EBITDA despite ~$120M increase in rent expense, double-digit
Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA
20 Reconciliation of Net Income (Loss) to Adjusted EBITDA for Fourth Quarter and Fiscal Year 2022 ($ in millions) (Unaudited) Three Months Ended Twelve Months Ended December 31, 2022 December 31, 2022 Net income (loss) $10 - $12 $(4) - $(2) Interest expense, net of interest income 29 - 29 114 - 114
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