Life Time Group Holdings, Inc. · NYSE:LTH

Life Time — Q1 2023 Earnings Presentation

18 slides from Life Time's earnings presentation, May 1, 2023

  1. Slide 1: Investor Presentation May 1, 2023

    1Presentation title in footer Palm Beach Gardens, FL Investor Presentation May 1, 2023

  2. Slide 2: Legal Disclaimer: Forward-Looking Statements

    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

  3. Slide 3: Q1 Results Exceeded Guidance and Prior Year

    Presentation_08.02.21_v08.pptx 3 Q1 Results Exceeded Guidance and Prior Year Q1 2023 vs Q1 2023 Guidance: Net Income and Adjusted EBITDA exceeded expectations primarily due to benefits from re-wiring the company to deliver margin expansion and strong personal training business performance. Q1 2023 v

  4. Slide 4: Our Strategic Initiatives are working and gaining momentum

    Presentation_08.02.21_v08.pptx 4 Branding, Positioning, Programming and Pricing Pickleball 742% Increase in Unique Participants1 Dynamic Personal Training 44% Increase in Total Sessions1 Small Group Training 228% increase in Unique Participants1 ARORA 279% Increase in Unique Participants1 Strategic

  5. Slide 5: Majority of Clubs Recovered to 2019 Membership Dues Levels

    Presentation_08.02.21_v08.pptx 5 Majority of Clubs Recovered to 2019 Membership Dues Levels MO NJ CO CA FL TX MA WA IA OK NC VA GA NV OH ON NY MN NE TN IN PA IL AZ MI AL MDKS 321% 141% 131% 100% 111% 106% 97% 113% 99% 106% UT 101% 106% 118% 106% 95% 120% 83% 107% 120% 103% 90% 120% 109% 98% 122% 104

  6. Slide 6: Increasing Number of Clubs Have Fully Recovered 2019 Membership Dues

    Presentation_08.02.21_v08.pptx 6 21 48 57 74 91 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Increasing Number of Clubs Have Fully Recovered 2019 Membership Dues Clubs Opened Prior to 2020 Notes: 1. Data includes Bloomingdale JV and Satellite locations, excludes Corporate Region, LT Work locations, and perman

  7. Slide 7: Monthly Membership Dues Have More than Recovered for Clubs Open Prior to 2020

    Presentation_08.02.21_v08.pptx 7 Branding, Positioning, Programming and Pricing $97 $89 $109 Mar 2019 Mar 2022 Mar 2023 Est Total Membership Dues – Clubs Open Prior to 2020 ($ in millions) Monthly Membership Dues Have More than Recovered for Clubs Open Prior to 2020 Mar 2023Mar 2019 Mar 2022 112% of

  8. Slide 8: 2023 Full Year Guidance

    8 2023 Full Year Guidance Life Time expects to deliver record-setting performance in FY2023 FY 2023 Guidance Revenue Adjusted EBITDA Rent $2,200 – $2,300 $470 – $490 $270 – $280 2023 vs 2022: Revenue growth expected from continued ramping of mature clubs, new club openings, strategic investments and

  9. Slide 9: Expect Significant Leverage Reduction to Continue

    9 Expect Significant Leverage Reduction to Continue Net Debt to Adjusted EBITDA Leverage TTM Adj. EBITDA (3) (TTM margin) Net Debt (1) (3) $223 13.0% $1,703 2022 Q3 Actual $199 12.4% $1,789 2022 Q2 Actual Net Debt Leverage (3) (4) 7.6x9.0x $282 15.5% $1,813 2022 Q4 Actual 6.4x $361 18.6% $1,872 2023

  10. Slide 10: Significant Revenue and Adjusted EBITDA Opportunity

    10 Significant Revenue and Adjusted EBITDA Opportunity New Club Ramp vs. Expected Performance at Maturity end Year 1 end Year 2 end Year 3 end Year 4+ Revenue Adjusted EBITDA 90%-100% 75%-85% 25%-35% 60%-70% 100%+ Significant Revenue and Adjusted EBITDA Opportunity as Clubs Continue to Return to Exp

  11. Slide 11: Club Maturity and Performance by Year

    11 Club Maturity and Performance by Year 6% 41% 11% 5-10% 8% 57% 41% 15-20%5% 1% 33% 30-35% 81% 1% 15% 40-45% Cash from operations and sale-leaseback proceeds will fund growth capital. Growth includes continued execution of our capital light strategy. Year 4+ Maturity (Clubs 100% Ramped) # of Open C

  12. Slide 12: Strong New Club Ramp has Occurred Even During a Recession

    12 58% 76% 88% Adjusted EBITDA as a % of Actual Performance at Maturity 11 Clubs Opened in 2008 95% 100% 2009 2010 2011 2012 2013 Location Month Opened in 2008 Parker, CO Jan Johns Creek, GA May West County–Chesterfield, MO Jun Mountain Brook, GA Jun Rockville, MD Sep City Centre-Houston, TX Sep Ver

  13. Slide 13: Multiple Tailwinds Exist for 2023 and Beyond

    13 Multiple levers of revenue and margin expansion support continued growth this year Multiple Tailwinds Exist for 2023 and Beyond Ramp of Existing Clubs New Clubs Membership Margin Expansion Proven Track Record in Downturns In-Center Revenue Natural Deleveraging • Continued ramp of existing clubs t

  14. Slide 14: Capital Light Investment Strategy Expected to Generate Significant Adjusted EBITDA and Strong ROIC

    14 Capital Light Investment Strategy Expected to Generate Significant Adjusted EBITDA and Strong ROIC Note: 1. Gross Invested Capital, net of tenant allowances; excludes proceeds from sale-leaseback activity 2. Estimated proceeds from sale-leaseback of owned clubs opened in 2023 & 2024. Expected tim

  15. Slide 15: Life Time has a Unique Strategic Position

    15 Life Time has a 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 history of c

  16. Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA

    16 Appendix ($MM) Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended March 31, 2022 Three Months Ended March 31, 2023 Net (loss) income ($38) $27 Interest expense, net of interest income $30 $31 (Benefit from) provision for income taxes ($3) $9 Depreciation and amortization $5

  17. Slide 17: Reconciliation of Trailing 12 Month Net Income (Loss) to Adjusted EBITDA

    17 Appendix ($MM) Twelve Months Ended June 30, 2022 Twelve Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended March 31, 2023 Net (loss) income ($389) ($318) ($2) $65 Interest expense, net of interest income $145 $133 $114 $115 (Benefit from) provision for incom

  18. Slide 18: Reconciliation of Net Debt and Leverage calculation

    18 Appendix ($MM) Twelve Months Ended June 30, 2022 Twelve Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended March 31, 2023 Twelve Months Ended December 31, 2023 Estimate Current maturities of debt $22 $15 $15 $66 $66 Long-term debt, net of current portion $1,

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