Life Time Group Holdings, Inc. · NYSE:LTH
Life Time — Investor Presentation (August 2023)
17 slides from Life Time's investor presentation, Aug 16, 2023
Slide 1: Investor Presentation August 16, 2023
1Presentation title in footer Flatirons, CO Investor Presentation August 16, 2023
Slide 2: Forward-Looking Statements Safe Harbor
2 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
Slide 3: Majority of Clubs Exceed 2019 Membership Dues Levels
Presentation_08.02.21_v08.pptx 3 Healthier and Stronger Business Model Majority of Clubs Exceed 2019 Membership Dues Levels Notes: 1. Data includes Bloomingdale JV and Satellite locations, excludes Corporate Region, LT Work locations, and permanently closed clubs 2. Results do not include the multi-
Slide 4: Total Membership Dues Exceed 2019 Levels for Clubs Open Prior to 2020
Presentation_08.02.21_v08.pptx 4 Healthier and Stronger Business Model Total Membership Dues Exceed 2019 Levels for Clubs Open Prior to 2020 $104M $103M $118M Jun 2019 Jun 2022 Jun 2023 Total Membership Dues – Clubs Open Prior to 2020 ($ in millions) Monthly Membership Dues Have More than Recovered
Slide 5: Initiatives & Strategies We Have Launched Are Working
Presentation_08.02.21_v08.pptx 5 Initiatives & Strategies We Have Launched Are Working and We Are Adding New Strategies to Continue Our Growth Branding, Positioning and Programming Pickleball 500+ permanent courts 673% Increase in Unique Participants(2) Dynamic Personal Training 160,000 average sess
Slide 6: Investments are Working to Increase Desirability of our Clubs
Presentation_08.02.21_v08.pptx 6 Investments are Working to Increase Desirability of our Clubs Branding, Positioning and Programming Notes: 1. Average swipes per center membership is calculated as front desk swipes, divided by the average number of Center memberships for the period, where the averag
Slide 7: Significant Asset Light Portfolio & Future Growth Opportunity
7 Significant Asset Light Portfolio & Future Growth Opportunity Expanded Club Offerings and Geographic Reach Suburban Build with SLB Mall / Retail Vertical Residential Club Takeover(2) Notes: 1. Total club openings Sept 1994 – July 2023. Excludes company-owned suburban clubs that have not been sold
Slide 8: Significant Asset Light Opportunities
8 Significant Asset Light Opportunities Less Than $10M of Net Invested Capital Per Location Harbour Island, FL – 40,000 Sq Ft. North Druid Hills, GA – 65,000 Sq Ft. Penn 1, NY – 52,000 Sq Ft.
Slide 9: Significant Flexibility in Capital Deployment
9 Completely Within Our Control, We Can Be Cash Flow Positive Within 90 Days, After All Growth Capital, and Continue to Substantially Grow Revenue and Adjusted EBITDA Significant Flexibility in Capital Deployment
Slide 10: Re-wired the Organization, Structurally Delivering Higher Margins
10 Re-wired the Organization, Structurally Delivering Higher Margins Rent (% of revenue) Revenue $166 8.7% $1,900 2019 Full Year Actual Adjusted EBITDA(1) (% of revenue) $438 23.0% $134 12.5% $1,073 Six Months Ended 6/30/23 Actual $256 23.9% General, Admin and Marketing (% of revenue) $228 11.9% Not
Slide 11: Continued Discipline Around Cash Flow and Natural Deleveraging
11 Continued Discipline Around Cash Flow and Natural Deleveraging Expect Significant Leverage Reduction to Continue Net Debt(1) to Adjusted EBITDA(3) Leverage TTM Adj. EBITDA (2) (3) (TTM margin) Net Debt (1) $223 13.0% $1,703 2022 Q3 Actual $199 12.4% $1,789 2022 Q2 Actual Net Debt Leverage (3) (4)
Slide 12: Significant Revenue and Adjusted EBITDA Opportunity
Presentation_08.02.21_v08.pptx 12 Significant Revenue and Adjusted EBITDA Opportunity New Club Ramp vs. Expected Performance at Maturity(1) end Year 1 end Year 2 end Year 3 end Year 4+ Revenue Adjusted EBITDA 90%-100% 75%-85% 25%-35% 60%-70% 100%+ Significant Revenue and Adjusted EBITDA Opportunity
Slide 13: Strong New Club Ramp Occurred Even During a Recession
Presentation_08.02.21_v08.pptx 13 58% 76% 88% Adjusted EBITDA as a % of Actual Performance at Maturity 11 Clubs Opened in 2008 95% 100% 2009 2010 2011 2012 2013 Location Month Opened in 2008 Parker, CO Jan Johns Creek, GA May West County–Chesterfield, MO Jun Mountain Brook, GA Jun Rockville, MD Sep
Slide 14: Resilient Performance Against Macroeconomic Headwinds
14 Resilient Performance Against Macroeconomic Headwinds 6% 22% 11% 5-10% 8% 74% 41% 10-15%5% 3% 33% 25-30% 81% 1% 15% 50-55% Cash from operations and sale-leaseback proceeds expected to fund growth capital. Growth includes continued execution of our asset light strategy. Year 4+ Maturity (Clubs 100
Slide 15: Life Time has a Unique Strategic Position
15 Life Time has a Unique Strategic Position Existing Club Footprint New Club Pipeline Power of Life Time Brand Equity Consistent Track Record Over 160 locations across North America 80+ locations in various stages of discussion and development Over 125 billion brand impressions in 2022 30-year hist
Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA
16 Appendix ($MM) Twelve Months Ended 12/31/2019 Twelve Months Ended 6/30/2022 Twelve Months Ended 9/30/2022 Twelve Months Ended 12/31/2022 Twelve Months Ended 3/31/2023 Twelve Months Ended 6/30/2023 Twelve Months Ended 12/31/2023 Estimate Six Months Ended 6/30/2023 Net income (loss) $30 ($389) ($31
Slide 17: Reconciliation of Net Debt and Leverage calculation
17 Appendix ($MM) Twelve Months Ended 6/30/2022 Twelve Months Ended 9/30/2022 Twelve Months Ended 12/31/2022 Twelve Months Ended 3/31/2023 Twelve Months Ended 6/30/2023 Twelve Months Ended 12/31/2023 Estimate Current maturities of debt $22 $15 $15 $66 $65 $66 Long-term debt, net of current portion $
Life Time Group Holdings — Investor Presentation (August 2023) on 6ix