Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40887 | |
Entity Registrant Name | Life Time Group Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3481985 | |
Entity Address, Address Line One | 2902 Corporate Place | |
Entity Address, City or Town | Chanhassen | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55317 | |
City Area Code | 952 | |
Local Phone Number | 947-0000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | LTH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 193,874,108 | |
Entity Central Index Key | 0001869198 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 61,289 | $ 31,637 |
Accounts receivable, net | 10,530 | 6,464 |
Center operating supplies and inventories | 43,734 | 41,007 |
Prepaid expenses and other current assets | 56,282 | 48,883 |
Income tax receivable | 2,572 | 3,533 |
Total current assets | 174,407 | 131,524 |
Property and equipment, net | 2,794,332 | 2,791,464 |
Goodwill | 1,233,176 | 1,233,176 |
Operating lease right-of-use assets | 2,060,368 | 1,864,528 |
Intangible assets, net | 173,425 | 174,241 |
Other assets | 63,536 | 61,742 |
Total assets | 6,499,244 | 6,256,675 |
Current liabilities: | ||
Accounts payable | 75,286 | 71,308 |
Construction accounts payable | 108,578 | 83,311 |
Deferred revenue | 41,190 | 33,871 |
Accrued expenses and other current liabilities | 164,253 | 147,920 |
Current maturities of debt | 21,727 | 23,527 |
Current maturities of operating lease liabilities | 48,249 | 46,315 |
Total current liabilities | 459,283 | 406,252 |
Long-term debt, net of current portion | 1,807,418 | 1,775,719 |
Operating lease liabilities, net of current portion | 2,094,104 | 1,909,883 |
Deferred income taxes | 46,143 | 55,213 |
Other liabilities | 13,639 | 18,216 |
Total liabilities | 4,420,587 | 4,165,283 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value per share; 500,000 shares authorized; 193,796 and 193,060 shares issued and outstanding, respectively. | 1,938 | 1,931 |
Additional paid-in capital | 2,772,393 | 2,743,560 |
Accumulated deficit | (691,334) | (651,083) |
Accumulated other comprehensive loss | (4,340) | (3,016) |
Total stockholders’ equity | 2,078,657 | 2,091,392 |
Total liabilities and stockholders’ equity | $ 6,499,244 | $ 6,256,675 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000 | 500,000 |
Common stock, issued (in shares) | 193,796 | 193,060 |
Common stock, outstanding (in shares) | 193,796 | 193,060 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 461,267 | $ 323,187 | $ 853,521 | $ 572,485 |
Operating expenses: | ||||
Rent | 59,989 | 51,522 | 115,953 | 102,039 |
General, administrative and marketing | 51,950 | 43,322 | 118,511 | 81,592 |
Depreciation and amortization | 57,173 | 57,822 | 115,280 | 119,028 |
Other operating (income) expense | (8,212) | 8,930 | (25,247) | 15,864 |
Total operating expenses | 440,457 | 380,307 | 843,627 | 711,849 |
Income (loss) from operations | 20,810 | (57,120) | 9,894 | (139,364) |
Other (expense) income: | ||||
Interest expense, net of interest income | (27,093) | (40,078) | (57,036) | (136,295) |
Equity in earnings (loss) of affiliate | 8 | (91) | 34 | (384) |
Total other expense | (27,085) | (40,169) | (57,002) | (136,679) |
Loss before income taxes | (6,275) | (97,289) | (47,108) | (276,043) |
Benefit from income taxes | (3,990) | (20,933) | (6,857) | (46,886) |
Net loss | $ (2,285) | $ (76,356) | $ (40,251) | $ (229,157) |
Loss per common share - basic (in usd per share) | $ (0.01) | $ (0.57) | $ (0.21) | $ (1.65) |
Loss per common share - diluted (in usd per share) | $ (0.01) | $ (0.57) | $ (0.21) | $ (1.65) |
Weighted-average common shares outstanding - basic (in shares) | 193,692 | 145,196 | 193,082 | 145,196 |
Weighted-average common shares outstanding - diluted (in shares) | 193,692 | 145,196 | 193,082 | 145,196 |
Center revenue | ||||
Revenue: | ||||
Total revenue | $ 445,882 | $ 316,596 | $ 827,503 | $ 561,690 |
Operating expenses: | ||||
Operations | 279,557 | 218,711 | 519,130 | 393,326 |
Other revenue | ||||
Revenue: | ||||
Total revenue | $ 15,385 | $ 6,591 | $ 26,018 | $ 10,795 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,285) | $ (76,356) | $ (40,251) | $ (229,157) |
Foreign currency translation adjustments, net of tax of $0 | (2,955) | 1,565 | (1,324) | 2,727 |
Comprehensive loss | $ (5,240) | $ (74,791) | $ (41,575) | $ (226,430) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Stockholder Note Receivable | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2020 | 145,196,000 | |||||
Balance at Dec. 31, 2020 | $ 1,481,413 | $ 1,452 | $ 1,569,905 | $ (15,000) | $ (71,714) | $ (3,230) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (229,157) | (229,157) | ||||
Other comprehensive income | 2,727 | 2,727 | ||||
Share-based compensation | 1,130 | 1,130 | ||||
Settlement of accrued compensation liabilities through the issuance of share-based compensation awards | 3,844 | 3,844 | ||||
Dividends on preferred stock | (10,288) | (10,288) | ||||
Balance (in shares) at Jun. 30, 2021 | 145,196,000 | |||||
Balance at Jun. 30, 2021 | 1,249,669 | $ 1,452 | 1,564,591 | (15,000) | (300,871) | (503) |
Balance (in shares) at Mar. 31, 2021 | 145,196,000 | |||||
Balance at Mar. 31, 2021 | 1,325,492 | $ 1,452 | 1,565,623 | (15,000) | (224,515) | (2,068) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (76,356) | (76,356) | ||||
Other comprehensive income | 1,565 | 1,565 | ||||
Share-based compensation | 1,130 | 1,130 | ||||
Settlement of accrued compensation liabilities through the issuance of share-based compensation awards | 3,844 | 3,844 | ||||
Dividends on preferred stock | (6,006) | (6,006) | ||||
Balance (in shares) at Jun. 30, 2021 | 145,196,000 | |||||
Balance at Jun. 30, 2021 | $ 1,249,669 | $ 1,452 | 1,564,591 | $ (15,000) | (300,871) | (503) |
Balance (in shares) at Dec. 31, 2021 | 193,060,000 | 193,060,000 | ||||
Balance at Dec. 31, 2021 | $ 2,091,392 | $ 1,931 | 2,743,560 | (651,083) | (3,016) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (40,251) | (40,251) | ||||
Other comprehensive income | (1,324) | (1,324) | ||||
Share-based compensation | $ 27,411 | 27,411 | ||||
Stock option exercises (in shares) | 100,000 | 114,000 | ||||
Stock option exercises | $ 1,194 | $ 1 | 1,193 | |||
Equity issuance costs | (270) | (270) | ||||
Issuance of common shares in connection with the vesting of restricted stock units (in shares) | 622,000 | |||||
Issuance of common shares in connection with the vesting of restricted stock units | 0 | $ 6 | (6) | |||
Settlement of accrued compensation liabilities through the issuance of share-based compensation awards | $ 505 | 505 | ||||
Balance (in shares) at Jun. 30, 2022 | 193,796,000 | 193,796,000 | ||||
Balance at Jun. 30, 2022 | $ 2,078,657 | $ 1,938 | 2,772,393 | (691,334) | (4,340) | |
Balance (in shares) at Mar. 31, 2022 | 193,060,000 | |||||
Balance at Mar. 31, 2022 | 2,077,000 | $ 1,931 | 2,765,503 | (689,049) | (1,385) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (2,285) | (2,285) | ||||
Other comprehensive income | (2,955) | (2,955) | ||||
Share-based compensation | $ 5,973 | 5,973 | ||||
Stock option exercises (in shares) | 100,000 | 114,000 | ||||
Stock option exercises | $ 1,194 | $ 1 | 1,193 | |||
Equity issuance costs | (270) | (270) | ||||
Issuance of common shares in connection with the vesting of restricted stock units (in shares) | 622,000 | |||||
Issuance of common shares in connection with the vesting of restricted stock units | $ 0 | $ 6 | (6) | |||
Balance (in shares) at Jun. 30, 2022 | 193,796,000 | 193,796,000 | ||||
Balance at Jun. 30, 2022 | $ 2,078,657 | $ 1,938 | $ 2,772,393 | $ (691,334) | $ (4,340) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (40,251) | $ (229,157) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 115,280 | 119,028 |
Deferred income taxes | (9,009) | (47,132) |
Share-based compensation | 27,411 | 2,881 |
Non-cash rent expense | 15,635 | 6,219 |
(Gain) loss on disposal of property and equipment, net | (49,743) | 1,110 |
Loss on debt extinguishment | 0 | 40,993 |
Write-off of discounts and debt issuance costs | 0 | 18,325 |
Amortization of debt discounts and issuance costs | 3,918 | 5,127 |
Changes in operating assets and liabilities | 17,909 | 71,259 |
Other | (825) | (1,692) |
Net cash provided by (used in) operating activities | 80,325 | (13,039) |
Cash flows from investing activities: | ||
Capital expenditures | (252,640) | (121,973) |
Proceeds from sale-leaseback transactions | 174,246 | 33,933 |
Other | 692 | (1,678) |
Net cash used in investing activities | (77,702) | (89,718) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 8,657 | 1,907,577 |
Repayments of debt | (11,539) | (1,594,439) |
Proceeds from revolving credit facility | 420,000 | 15,000 |
Repayments of revolving credit facility | (390,000) | (109,000) |
Repayments of finance lease liabilities | (697) | (750) |
Increase in debt discounts and issuance costs | 0 | (44,676) |
Proceeds from stock option exercises | 1,194 | 0 |
Other | (476) | 0 |
Net cash provided by financing activities | 27,139 | 173,712 |
Effect of exchange rates on cash and cash equivalents | (110) | 50 |
Increase in cash and cash equivalents | 29,652 | 71,005 |
Cash and cash equivalents – beginning of period | 31,637 | 33,195 |
Cash and cash equivalents – end of period | $ 61,289 | $ 104,200 |
Nature of Business and Basis of
Nature of Business and Basis of Consolidation and Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Consolidation and Presentation | Nature of Business and Basis of Presentation Nature of Business Life Time Group Holdings, Inc. (collectively with its direct and indirect subsidiaries, “Life Time,” “we,” “our,” or the “Company”) is a holding company incorporated in the state of Delaware. Life Time Group Holdings, Inc. changed its name from LTF Holdings, Inc. effective on June 21, 2021. As a holding company, Life Time Group Holdings, Inc. does not have its own independent assets or business operations, and all of our assets and business operations are through Life Time, Inc. and its direct and indirect subsidiaries. We are primarily dedicated to providing premium health, fitness and wellness experiences at our athletic country club destinations and via our comprehensive digital platform and portfolio of iconic athletic events – all with the objective of inspiring healthier, happier lives. We design, build and operate our athletic country club destinations that are distinctive and large, multi-use sports and athletic, professional fitness, family recreation and spa centers in a resort-like environment. As of June 30, 2022, we operated 153 centers in 29 states and one Canadian province. COVID-19 Impact In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic, the United States declared a National Public Health Emergency and we closed all of our centers based on orders and advisories from federal, state and local governmental authorities regarding COVID-19. We re-opened our first center on May 8, 2020 and continued to re-open our centers as state and local governmental authorities permitted. With the exception of our three Canadian centers, which were temporarily closed during a portion of January 2022, all of our centers were open during the three and six months ended June 30, 2022. Initial Public Offering On October 12, 2021, Life Time Group Holdings, Inc. consummated its initial public offering (“IPO”) of 39.0 million shares of its common stock at a public offering price of $18.00 per share, resulting in total gross proceeds of $702.0 million, which was r educed by underwriting discounts and other offering and issuance expenses of $28.0 million, of which approximately $0.3 million was recognized during 2022, for net proceeds of $674.0 million. The shares of the Company’s common stock began trading on The New York Stock Exchange (the “NYSE”) under the symbol “LTH” on October 7, 2021. A registration statement on Form S-1 relating to the offering of these securities was declared effective by the Securities and Exchange Commission (the “SEC”) on October 6, 2021. On November 1, 2021, Life Time Group Holdings, Inc. consummated the sale of nearly 1.6 million additional shares of its common stock at the IPO price of $18.00 per share pursuant to the partial exercise by the underwriters of their over-allotment option, resulting in total gross proceeds of approximately $28.4 million, which was reduced by underwriting discounts and other offering expenses of $1.3 million, for net proceeds of $27.1 million . We used these net proceeds, as well as the remaining portion of the net proceeds we received in connection with the IPO after the $575.7 million (including a $5.7 million prepayment penalty) partial pay down of our Term Loan Facility (as defined in Note 6, Debt), for general corporate purposes. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Life Time Group Holdings, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In recording transactions and balances resulting from business operations, we use estimates based on the best information available. We revise the recorded estimates when better information is available, facts change, or we can determine actual amounts. These revisions can affect our consolidated operating results. All adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods have been included. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” to increase the transparency of government assistance, including with respect to the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance and the effect of the assistance on an entity’s financial statements. The amendments are to be applied either (1) prospectively to all applicable transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions . We adopted this ASU as of January 1, 2022 and applied it prospectively. The adoption of this ASU did not have any impact on our financial position, results of operations or cash flows. New Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provides implementation guidance associated with ASU 2020-04 and clarifies certain optional expedients in Topic 848. The guidance in ASU 2020-04 is effective for all entities as of March 12, 2020 and may be applied through December 31, 2022. We are still evaluating the impact of ASU 2020-04, but we do not expect that the adoption of this standard will have a material impact on our consolidated financial statements. Fair Value Measurements The accounting guidance establishes a framework for measuring fair value and expanded disclosures about fair value measurements. The guidance applies to all assets and liabilities that are measured and reported on a fair value basis. This enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The guidance requires that each asset and liability carried at fair value be classified into one of the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The carrying amounts related to cash and cash equivalents, accounts receivable, income tax receivable, accounts payable and accrued liabilities approximate fair value. Fair Value Measurements on a Recurring Basis. We had no material remeasurements of such assets or liabilities to fair value during the three and six months ended June 30, 2022 and 2021. Financial Assets and Liabilities. At June 30, 2022, the fair value of our outstanding Term Loan Facility, Secured Notes and Unsecured Notes (each of which is defined in Note 6, Debt) was approximately $268.2 million, $846.4 million and $429.9 million, respectively. At December 31, 2021, the fair value of our outstanding Term Loan Facility, Secured Notes and Unsecured Notes was approximately $277.0 million, $957.4 million and $494.0 million, respectively. The carrying amount of our outstanding Mortgage Notes and Construction Loan (each of which is defined in Note 6, Debt) at June 30, 2022 and December 31, 2021 approximates fair value. The fair value of our debt is based on the amount of future cash flows discounted using rates we would currently be able to realize for similar instruments of comparable maturity. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. For more information regarding our debt, see Note 6, Debt. Fair Value Measurements on a Nonrecurring Basis. Assets and liabilities that are measured at fair value on a nonrecurring basis primarily relate to our long-lived assets, goodwill and intangible assets, which are remeasured when the derived fair value is below carrying value on our condensed consolidated balance sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. If we determine that impairment has occurred, the carrying value of the asset would be reduced to fair value and the difference would be recorded as a loss within operating income in our condensed consolidated statements of operations. We had no material remeasurements of such assets or liabilities to fair value during the periods presented. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet and Cash Flow Information | Supplemental Balance Sheet and Cash Flow Information Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: June 30, December 31, Property held for sale $ 4,988 $ — Construction contract receivables 15,157 14,949 Deferred membership origination costs 1,398 3,150 Prepaid expenses 34,739 30,784 Prepaid expenses and other current assets $ 56,282 $ 48,883 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: June 30, December 31, Real estate taxes $ 31,851 $ 32,955 Accrued interest 34,988 35,006 Payroll liabilities 34,701 23,243 Utilities 7,891 7,022 Self-insurance accruals 18,663 18,921 Corporate accruals 31,074 24,741 Current maturities of finance lease liabilities 1,051 1,374 Other 4,034 4,658 Accrued expenses and other current liabilities $ 164,253 $ 147,920 Supplemental Cash Flow Information Decreases (increases) in operating assets and increases (decreases) in operating liabilities are as follows: Six Months Ended 2022 2021 Accounts receivable $ (4,215) $ (2,119) Center operating supplies and inventories (2,739) (1,780) Prepaid expenses and other current assets (2,199) (3,763) Income tax receivable 961 (876) Other assets 453 1,434 Accounts payable 4,064 27,389 Accrued expenses and other current liabilities 17,503 52,936 Deferred revenue 7,368 (2,087) Other liabilities (3,287) 125 Changes in operating assets and liabilities $ 17,909 $ 71,259 Additional supplemental cash flow information is as follows: Six Months Ended 2022 2021 Net cash paid for income taxes, net of refunds received $ 1,158 $ 1,112 Cash payments for interest, net of capitalized interest 53,514 42,302 Capitalized interest 6,497 1,726 Non-cash activity: Issuance of Series A Preferred Stock (as defined in Note 10, Loss Per Share) in connection with the extinguishment of a related party secured loan — 108,591 |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles The goodwill balance was $1,233.2 million at both June 30, 2022 and December 31, 2021. Intangible assets consisted of the following: June 30, 2022 Gross Accumulated Amortization Net Trade name $ 163,000 $ — $ 163,000 Other 16,327 (5,902) 10,425 Total intangible assets $ 179,327 $ (5,902) $ 173,425 December 31, 2021 Gross Accumulated Amortization Net Trade name $ 163,000 $ — $ 163,000 Other 16,327 (5,086) 11,241 Total intangible assets $ 179,327 $ (5,086) $ 174,241 Other intangible assets at June 30, 2022 and December 31, 2021 include a facility license as well as trade names and customer relationships associated with our race registration and timing businesses. Amortization expense associated with intangible assets for the three months ended June 30, 2022 and 2021 was $0.3 million and $0.2 million, respectively, and was $0.8 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively. Amortization expense associated with intangible assets is included in Depreciation and amortization in our condensed consolidated statements of operations. There were no goodwill or intangible asset impairment charges recorded during the three and six months ended June 30, 2022 and 2021. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue associated with our membership dues, enrollment fees, and certain services from our in-center businesses is recognized over time as earned. Revenue associated with products and services offered in our cafes and spas, as well as through e-commerce, is recognized at a point in time. The following is a summary of revenue, by major revenue stream, that we recognized during the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Membership dues and enrollment fees $ 309,262 $ 217,244 $ 581,178 $ 392,551 In-center revenue 136,620 99,352 246,325 169,139 Total center revenue 445,882 316,596 827,503 561,690 Other revenue 15,385 6,591 26,018 10,795 Total revenue $ 461,267 $ 323,187 $ 853,521 $ 572,485 The timing associated with the revenue we recognized during the three months ended June 30, 2022 and 2021 is as follows: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Center Other Total Center Other Total Goods and services transferred over time $ 384,898 $ 15,385 $ 400,283 $ 272,971 $ 6,591 $ 279,562 Goods and services transferred at a point in time 60,984 — 60,984 43,625 — 43,625 Total revenue $ 445,882 $ 15,385 $ 461,267 $ 316,596 $ 6,591 $ 323,187 The timing associated with the revenue we recognized during the six months ended June 30, 2022 and 2021 is as follows: Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Center Other Total Center Other Total Goods and services transferred over time $ 717,885 $ 26,018 $ 743,903 $ 489,074 $ 10,795 $ 499,869 Goods and services transferred at a point in time 109,618 — 109,618 72,616 — 72,616 Total revenue $ 827,503 $ 26,018 $ 853,521 $ 561,690 $ 10,795 $ 572,485 Contract liabilities represent payments or consideration received in advance for goods or services that the Company has not yet transferred to the customer. Contract liabilities consist primarily of deferred revenue for fees collected in advance for membership dues, enrollment fees, personal training and other center services offerings, as well as our media and athletic events. Contract liabilities at June 30, 2022 and December 31, 2021 were $43.2 million and $35.9 million, respectively. Contract liabilities that will be recognized within one year are classified as deferred revenue in our condensed consolidated balance sheets. Deferred revenue at June 30, 2022 and December 31, 2021 was $41.2 million and $33.9 million, respectively, and consists primarily of prepaid membership dues, personal training and other in-center services, and enrollment fees. The $7.3 million increase was primarily driven by registrations received for future personal training sessions, kids summer camps and beach club access. Contract liabilities that will be recognized in a future period greater than one year are classified as a component of Other liabilities in our condensed consolidated balance sheets. Long-term contract liabilities at both June 30, 2022 and December 31, 2021 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following: June 30, December 31, 2021 Term Loan Facility, maturing December 2024 $ 273,625 $ 273,625 Revolving Credit Facility, maturing December 2026 30,000 — Secured Notes, maturing January 2026 925,000 925,000 Unsecured Notes, maturing April 2026 475,000 475,000 Mortgage Notes, various maturities 134,033 145,572 Construction Loan, maturing February 2026 8,657 — Other debt 4,122 4,122 Fair value adjustment 1,493 1,818 Total debt 1,851,930 1,825,137 Less unamortized debt discounts and issuance costs (22,785) (25,891) Total debt less unamortized debt discount and issuance costs 1,829,145 1,799,246 Less current maturities (21,727) (23,527) Long-term debt, less current maturities $ 1,807,418 $ 1,775,719 Senior Secured Credit Facility In June 2015, Life Time, Inc. and certain of our other wholly-owned subsidiaries entered into a senior secured credit facility with a group of lenders led by Deutsche Bank AG as the administrative agent. On January 22, 2021, Life Time, Inc. and certain of our other wholly-owned subsidiaries entered into an eighth amendment to the credit agreement governing our senior secured credit agreement (the “Credit Agreement”). Pursuant to such eighth amendment to the Credit Agreement, Life Time, Inc. and such other subsidiaries, among other things, (i) entered into a new term loan facility (the “Term Loan Facility”) and incurred new term loans in an aggregate principal amount of $850.0 million and (ii) extended the maturity on the vast majority of commitments under the revolving portion of our senior secured credit facility (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”) . On December 2, 2021, Life Time, Inc. and certain of our other wholly-owned subsidiaries entered into a ninth amendment to the Credit Agreement. Pursuant to such ninth amendment, Life Time, Inc. and such other subsidiaries increased the commitments under the Revolving Credit Facility to $475.0 million and extended the maturity of the Revolving Credit Facility to December 2, 2026, except that the maturity will be: (a) September 22, 2024 if we have not refinanced or amended the Term Loan Facility in a manner set forth in such amendment by such date; (b) October 16, 2025 if we have at least $100.0 million remaining outstanding on the senior secured notes (the “Secured Notes”) that mature in January 2026 on such date; and (c) January 14, 2026 if we have at least $100.0 million remaining outstanding on the senior unsecured notes (the “Unsecured Notes”) that mature in April 2026 on such date. Upon the exercise of an accordion feature and subject to certain conditions, borrowings under the Credit Facilities may be increased subject, in certain cases, to meeting a first lien net leverage ratio. The Credit Facilities are secured by a first priority lien (on a pari-passu basis with the Secured Notes described below) on substantially all of our assets. Term Loan Facility The $850.0 million Term Loan Facility, which matures in December 2024, initially amortized at 0.25% quarterly, which required us to make three mandatory quarterly principal repayments of approximately $2.1 million during the year ended December 31, 2021. On October 13, 2021, we used a portion of net proceeds we received in connection with the IPO to pay down $575.7 million (including a $5.7 million prepayment penalty) of our Term Loan Facility. As a result of the pay down, we are no longer required to make quarterly principal payments on the Term Loan Facility prior to its maturity. At June 30, 2022, the Term Loan Facility loan balance was $273.6 million, with interest due at intervals ranging from 30 to 180 days at interest rates ranging from LIBOR plus 4.75% or base rate plus 3.75%, in either case subject to a 1.00% rate floor. Revolving Credit Facility Our Revolving Credit Facility provides for a $475.0 million revolver and matures in December 2026, or earlier as detailed above under “—Senior Secured Credit Facility.” At June 30, 2022, there were $30.0 million of outstanding borrowings on the Revolving Credit Facility and there were $31.5 million of outstanding letters of credit, resulting in total revolver availability of $413.5 million, which was available at intervals ranging from 30 to 180 days at interest rates ranging from LIBOR plus 4.25% or base rate plus 3.25%. The weighted average interest rate and debt outstanding under the Revolving Credit Facility for the six months ended June 30, 2022 was 4.26% and $41.0 million, respectively. The highest month-end balance during that same period was $90.0 million. Secured Notes On January 22, 2021, Life Time, Inc. issued the Secured Notes in an aggregate principal amount of $925.0 million. These notes mature in January 2026 and interest only payments are due semi-annually in arrears at 5.75%. Life Time, Inc. has the option to call the Secured Notes, in whole or in part, on one or more occasions, beginning on January 15, 2023, subject to the payment of a redemption price that includes a call premium that varies depending on the year of redemption. In addition, at any time prior to January 15, 2023, Life Time, Inc. may redeem up to 40.00% of the aggregate principal amount of the Secured Notes outstanding with the net proceeds of certain equity offerings by us at a redemption price equal to 105.75% of the principal amount of the Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The Secured Notes and the related guarantees are our senior secured obligations and are secured on a first-priority basis by security interests in substantially all of our assets. Unsecured Notes On February 5, 2021, Life Time, Inc. issued the Unsecured Notes in the original principal amount of $475.0 million. The Unsecured Notes mature in April 2026 and interest only payments are due semi-annually in arrears at 8.00%. Life Time, Inc. has the option to redeem the Unsecured Notes, in whole or in part, on one or more occasions, beginning on February 1, 2023, subject to the payment of a redemption price that includes a call premium that varies depending on the year of redemption. In addition, at any time prior to February 1, 2023, Life Time, Inc. may redeem up to 40.00% of the aggregate principal amount of the Unsecured Notes outstanding with the net proceeds of certain equity offerings by us at a redemption price equal to 108.00% of the principal amount of the Unsecured Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The Unsecured Notes and the related guarantees are our general senior unsecured obligations and will rank equally in right of payment with all of our existing and future senior indebtedness without giving effect to collateral arrangements. Mortgage Notes Certain of our subsidiaries have entered into mortgage facilities with various financial institutions (collectively, the “Mortgage Notes”), which are collateralized by certain of our related real estate and buildings, including one of our corporate headquarters properties. The Mortgage Notes have varying maturity dates from March 2023 through August 2027 and carried a weighted average interest rate of 4.71% and 4.70% at June 30, 2022 and December 31, 2021, respectively. Payments of principal and interest on each of the Mortgage Notes are payable monthly on the first business day of each month. The Mortgage Notes contain customary affirmative covenants, including but not limited to, payment of property taxes, granting of lender access to inspect the properties, maintenance of the properties, providing financial statements, providing estoppel certificates and lender consent to leases. The Mortgage Notes also contain various customary negative covenants, including, but not limited to, restrictions on transferring the property, change in control of the borrower and changing the borrower’s business or principal place of business. As of June 30, 2022, we were either in compliance in all material respects with the covenants associated with the Mortgage Notes or the covenants were not applicable. Construction Loan On January 22, 2021, we closed on a construction loan (the “Construction Loan”) providing up to $28.0 million to partially finance the construction of a Life Time Living location that remains under construction as of June 30, 2022. The Construction Loan has a maturity date of February 15, 2026 and is collateralized by the property. Borrowings under the Construction Loan bear interest at a variable annual rate of no less than 4.80%. Interest only payments are due monthly beginning April 15, 2022 and continuing through February 15, 2024. Beginning March 15, 2024, based on the principal balance due as of February 15, 2024, monthly principal and interest installment payments will be due in an amount sufficient to fully amortize the principal balance at maturity. At June 30, 2022, there were $8.7 million of outstanding borrowings on the Construction Loan. There were no outstanding borrowings as of December 31, 2021. Debt Discounts and Issuance Costs Unamortized debt discounts and issuance costs associated with the Term Loan Facility, Secured Notes, Unsecured Notes and Construction Loan of $22.8 million and $25.9 million are included in Long-term debt, net of current portion on our condensed consolidated balance sheets at June 30, 2022 and December 31, 2021, respectively. Unamortized revolver-related debt issuance costs of $3.5 million and $4.0 million are included in Other assets on our condensed consolidated balance sheets at June 30, 2022 and December 31, 2021, respectively. Debt Covenants We are required to comply with certain affirmative and restrictive covenants under our Credit Facilities, Secured Notes and Unsecured Notes. We are also required to comply with a first lien net leverage ratio covenant under the Revolving Credit Facility, which requires us to maintain a first lien net leverage ratio, if 30.00% or more of the Revolving Credit Facility commitments are outstanding shortly after the end of any fiscal quarter (excluding all cash collateralized undrawn letters of credit and other undrawn letters of credit up to $20.0 million). During the first three quarterly test periods of 2022, certain financial measures used in the calculation of the first lien net leverage ratio will be calculated on a pro forma basis by annualizing the respective financial measures recognized during those test periods. As of June 30, 2022, we were either in compliance in all material respects with the covenants under the Credit Facilities, or the covenants were not applicable. Future Maturities of Long-Term Debt Aggregate annual future maturities of long-term debt, excluding unamortized discounts, issuance costs and fair value adjustments, at June 30, 2022 were as follows: July 2022 through June 2023 $ 21,727 July 2023 through June 2024 64,814 July 2024 through June 2025 286,004 July 2025 through June 2026 1,421,571 July 2026 through June 2027 51,893 Thereafter 4,428 Total future maturities of long-term debt $ 1,850,437 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases Lease Cost Lease cost included in our condensed consolidated statements of operations for the three months ended June 30, 2022 and 2021 consisted of the following: Three Months Ended Classification in Condensed 2022 2021 Lease cost: Operating lease cost $ 58,156 $ 50,185 Rent Short-term lease cost 519 239 Rent Variable lease cost 1,314 1,098 Rent Finance lease cost: Amortization of right-of-use assets 335 375 Depreciation and amortization Interest on lease liabilities 26 47 Interest expense, net of interest income Total lease cost $ 60,350 $ 51,944 Lease cost included in our condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021 consisted of the following: Six Months Ended Classification in Condensed 2022 2021 Lease cost: Operating lease cost $ 112,909 $ 99,488 Rent Short-term lease cost 875 466 Rent Variable lease cost 2,169 2,085 Rent Finance lease cost: Amortization of right-of-use assets 690 739 Depreciation and amortization Interest on lease liabilities 57 98 Interest expense, net of interest income Total lease cost $ 116,700 $ 102,876 Operating and Finance Lease Right-of-Use Assets and Lease Liabilities Operating and finance lease right-of-use assets and lease liabilities were as follows: June 30, 2022 December 31, 2021 Classification on Condensed Lease right-of-use assets: Operating leases $ 2,060,368 $ 1,864,528 Operating lease right-of-use assets Finance leases (1) 1,374 2,073 Other assets Total lease right-of-use assets $ 2,061,742 $ 1,866,601 Lease liabilities: Current Operating leases $ 48,249 $ 46,315 Current maturities of operating lease liabilities Finance leases 1,051 1,374 Accrued expenses and other current liabilities Non-Current Operating leases 2,094,104 1,909,883 Operating lease liabilities, net of current portion Finance leases 372 757 Other liabilities Total lease liabilities $ 2,143,776 $ 1,958,329 (1) Finance lease right-of-use assets were reported net of accumulated amortization of $2.6 million and $2.4 million at June 30, 2022 and December 31, 2021, respectively. Remaining Lease Terms and Discount Rates The weighted-average remaining lease terms and discount rates associated with our operating and finance lease liabilities at June 30, 2022 were as follows: June 30, 2022 Weighted-average remaining lease term (1) Operating leases 17.8 years Finance leases 1.7 years Weighted-average discount rate Operating leases 7.99% Finance leases 6.13% (1) The weighted-average remaining lease term associated with our operating and finance lease liabilities does not include all of the optional renewal periods available to us under our current lease arrangements. Rather, the weighted-average remaining lease term only includes periods covered by an option to extend a lease if we are reasonably certain to exercise that option. Sale-Leaseback Transactions During the six months ended June 30, 2022, we entered into and consummated sale-leaseback transactions involving four properties with an unrelated third party. Under these transactions, we sold four properties with a combined net book value of $150.8 million for $175.0 million, which was reduced by transaction costs of $0.8 million, for net cash proceeds of $174.2 million. The estimated fair value of the properties sold was $201.2 million. Accordingly, the aggregate sales price associated with this arrangement was increased by $26.2 million, which resulted in the recognition of a gain of $49.6 million on this transaction. This gain is included in Other operating (income) expense in our condensed consolidated statements of operations. Supplemental Cash Flow Information Supplemental cash flow information associated with our operating and finance leases is as follows: Six Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96,174 $ 93,123 Operating cash flows from finance leases 57 98 Financing cash flows from finance leases 697 750 Non-cash information: Right-of-use assets obtained in exchange for initial lease liabilities: Operating leases 196,256 66,426 Finance leases — 1,111 Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities: Operating leases 5,626 (5,605) Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 26,240 9,500 Maturities of Operating and Finance Lease Liabilities The maturities associated with our operating and finance lease liabilities at June 30, 2022 are as follows: Operating Leases Finance Leases Total July 2022 through June 2023 $ 202,982 $ 1,102 $ 204,084 July 2023 through June 2024 221,616 364 221,980 July 2024 through June 2025 223,849 16 223,865 July 2025 through June 2026 228,381 — 228,381 July 2026 through June 2027 228,182 — 228,182 Thereafter 3,062,007 — 3,062,007 Total lease payments 4,167,017 1,482 4,168,499 Less: Imputed interest 2,024,664 59 2,024,723 Present value of lease liabilities $ 2,142,353 $ 1,423 $ 2,143,776 |
Leases | Leases Lease Cost Lease cost included in our condensed consolidated statements of operations for the three months ended June 30, 2022 and 2021 consisted of the following: Three Months Ended Classification in Condensed 2022 2021 Lease cost: Operating lease cost $ 58,156 $ 50,185 Rent Short-term lease cost 519 239 Rent Variable lease cost 1,314 1,098 Rent Finance lease cost: Amortization of right-of-use assets 335 375 Depreciation and amortization Interest on lease liabilities 26 47 Interest expense, net of interest income Total lease cost $ 60,350 $ 51,944 Lease cost included in our condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021 consisted of the following: Six Months Ended Classification in Condensed 2022 2021 Lease cost: Operating lease cost $ 112,909 $ 99,488 Rent Short-term lease cost 875 466 Rent Variable lease cost 2,169 2,085 Rent Finance lease cost: Amortization of right-of-use assets 690 739 Depreciation and amortization Interest on lease liabilities 57 98 Interest expense, net of interest income Total lease cost $ 116,700 $ 102,876 Operating and Finance Lease Right-of-Use Assets and Lease Liabilities Operating and finance lease right-of-use assets and lease liabilities were as follows: June 30, 2022 December 31, 2021 Classification on Condensed Lease right-of-use assets: Operating leases $ 2,060,368 $ 1,864,528 Operating lease right-of-use assets Finance leases (1) 1,374 2,073 Other assets Total lease right-of-use assets $ 2,061,742 $ 1,866,601 Lease liabilities: Current Operating leases $ 48,249 $ 46,315 Current maturities of operating lease liabilities Finance leases 1,051 1,374 Accrued expenses and other current liabilities Non-Current Operating leases 2,094,104 1,909,883 Operating lease liabilities, net of current portion Finance leases 372 757 Other liabilities Total lease liabilities $ 2,143,776 $ 1,958,329 (1) Finance lease right-of-use assets were reported net of accumulated amortization of $2.6 million and $2.4 million at June 30, 2022 and December 31, 2021, respectively. Remaining Lease Terms and Discount Rates The weighted-average remaining lease terms and discount rates associated with our operating and finance lease liabilities at June 30, 2022 were as follows: June 30, 2022 Weighted-average remaining lease term (1) Operating leases 17.8 years Finance leases 1.7 years Weighted-average discount rate Operating leases 7.99% Finance leases 6.13% (1) The weighted-average remaining lease term associated with our operating and finance lease liabilities does not include all of the optional renewal periods available to us under our current lease arrangements. Rather, the weighted-average remaining lease term only includes periods covered by an option to extend a lease if we are reasonably certain to exercise that option. Sale-Leaseback Transactions During the six months ended June 30, 2022, we entered into and consummated sale-leaseback transactions involving four properties with an unrelated third party. Under these transactions, we sold four properties with a combined net book value of $150.8 million for $175.0 million, which was reduced by transaction costs of $0.8 million, for net cash proceeds of $174.2 million. The estimated fair value of the properties sold was $201.2 million. Accordingly, the aggregate sales price associated with this arrangement was increased by $26.2 million, which resulted in the recognition of a gain of $49.6 million on this transaction. This gain is included in Other operating (income) expense in our condensed consolidated statements of operations. Supplemental Cash Flow Information Supplemental cash flow information associated with our operating and finance leases is as follows: Six Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96,174 $ 93,123 Operating cash flows from finance leases 57 98 Financing cash flows from finance leases 697 750 Non-cash information: Right-of-use assets obtained in exchange for initial lease liabilities: Operating leases 196,256 66,426 Finance leases — 1,111 Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities: Operating leases 5,626 (5,605) Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 26,240 9,500 Maturities of Operating and Finance Lease Liabilities The maturities associated with our operating and finance lease liabilities at June 30, 2022 are as follows: Operating Leases Finance Leases Total July 2022 through June 2023 $ 202,982 $ 1,102 $ 204,084 July 2023 through June 2024 221,616 364 221,980 July 2024 through June 2025 223,849 16 223,865 July 2025 through June 2026 228,381 — 228,381 July 2026 through June 2027 228,182 — 228,182 Thereafter 3,062,007 — 3,062,007 Total lease payments 4,167,017 1,482 4,168,499 Less: Imputed interest 2,024,664 59 2,024,723 Present value of lease liabilities $ 2,142,353 $ 1,423 $ 2,143,776 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2021 Equity Incentive Plan In connection with the IPO and effective October 6, 2021, we adopted the 2021 Incentive Award Plan (the “2021 Equity Plan”), under which we may grant cash and equity-based incentive awards to our employees, consultants and directors. The maximum number of shares of our common stock available for issuance under the 2021 Equity Plan is equal to the sum of (i) approximately 14.5 million shares of our common stock, (ii) an annual increase on the first day of each year beginning in 2022 and ending in and including 2031, equal to the lesser of (A) 4% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year and (B) such lesser amount as determined by our board of directors, and (iii) the approximately 1.0 million shares of our common stock that were available for issuance under the 2015 Equity Plan as of October 6, 2021. Effective January 1, 2022, the number of shares of our common stock available for issuance under the 2021 Equity Plan increased by approximately 7.7 million shares pursuant to the evergreen feature described in part (ii) of the immediately preceding sentence. Additionally, the number of shares of our common stock available for issuance under the 2021 Equity Plan may increase with respect to awards under the 2015 Equity Plan and any other prior equity incentive plans of the Company or its predecessor which are forfeited or lapse unexercised and which following the effective date of the 2021 Equity Plan are not issued under such prior plan; provided, however, no more than 14.5 million shares may be issued upon the exercise of incentive stock options. The share reserve formula under the 2021 Equity Plan is intended to provide us with the continuing ability to grant equity awards to eligible employees, directors and consultants for the ten-year term of the 2021 Equity Plan. As of June 30, 2022, approximately 19.1 million shares were available for future awards to employees and other eligible participants under the 2021 Equity Plan. 2021 Employee Stock Purchase Plan In connection with the IPO and effective October 6, 2021, we adopted the 2021 Employee Stock Purchase Plan (the “ESPP”). The ESPP is designed to allow our eligible employees to purchase shares of our common stock, at periodic intervals, with their accumulated payroll deductions. The ESPP consists of two components: an Internal Revenue Service (“IRS”) Code section 423 (“Section 423”) component, which is intended to qualify under Section 423 of the IRS Code and a non-Section 423 component, which need not qualify under Section 423 of the IRS Code. The aggregate number of shares of our common stock that has initially been reserved for issuance under the ESPP is equal to (i) approximately 2.9 million shares of our common stock, and (ii) an annual increase on the first day of each year beginning in 2022 and ending in and including 2031, equal to the lesser of (A) 1% of the aggregate number of shares of our common stock outstanding on the final day of the immediately preceding calendar year and (B) such smaller number of our shares of common stock as determined by our board of directors; provided that in no event will more than 29.0 million shares of our common stock be available for issuance under the Section 423 component of the ESPP. Our board of directors determined that no additional shares would become available under the ESPP as of January 1, 2022 pursuant to the evergreen feature described in part (ii) of the immediately preceding sentence. Our board of directors or the compensation committee will have authority to interpret the terms of the ESPP and determine eligibility of participants. The ESPP will permit participants to purchase common stock through payroll deductions of up to a percentage of their eligible compensation, which includes a participant’s gross base compensation for services to us. On the first trading day of each offering period, each participant will automatically be granted an option to purchase shares of our common stock. The option will expire at the end of the applicable offering period and will be exercised on each purchase date during such offering period to the extent of the payroll deductions accumulated during the offering period. The purchase price will be at such discount as determined by our board of directors or compensation committee, but no greater than 85% of the fair market value of a share of our common stock on the date determined by our board of directors or compensation committee. Participants may voluntarily end their participation in the ESPP prior to the end of the applicable offering period and will be paid their accrued payroll deductions that have not yet been used to purchase shares of common stock. Upon exercise, the participant will purchase the number of whole shares that his or her accumulated payroll deductions will buy at the option purchase price, subject to the certain participation limitations. Participation will end automatically upon a participant’s termination of employment. No offering periods commenced under the ESPP during the three and six months ended June 30, 2022. Stock Options During the six months ended June 30, 2022, the Company granted approximately 0.9 million stock option awards under the 2021 Equity Plan. These options have a 10-year contractual term from the date of grant and vest in four ratable annual installments on each of the first four anniversaries of the grant date, subject to continuous employment or service from the grant date through the applicable vesting date. The exercise price associated with each of these awards is not less than the fair market value per share of our common stock at the time of grant. The fair value of the options granted during the six months ended June 30, 2022 was calculated using the Black-Scholes option pricing model. During each of the three and six months ended June 30, 2022, approximately 0.1 million stock options were exercised. As of June 30, 2022, options to purchase approximately 25.3 million shares of our common stock were outstanding, of which approximately 22.0 million were exercisable. Share-based compensation expense associated with stock options for the three months ended June 30, 2022 was $3.3 million, of which $0.3 million, $2.9 million and $0.1 million is included in Center operations, General, administrative and marketing and Other operating (income) expense, respectively, in our condensed consolidated statements of operations. Share-based compensation expense associated with stock options for the six months ended June 30, 2022 was $14.7 million, of which $1.3 million, $13.0 million and $0.4 million is included in Center operations, General, administrative and marketing and Other operating (income) expense, respectively, in our condensed consolidated statements of operations. No share-based compensation expense related to stock options was recognized during the three and six months ended June 30, 2021. As of June 30, 2022 , unrecognized share-based compensation expense related to stock options was approximately $22.5 million, which is expected to be recognized over a weighted average remaining period of 3.1 years. Restricted Stock Units During the six months ended June 30, 2022, the Company granted approximately 1.6 million restricted stock unit awards under the 2021 Equity Plan, of which approximately 1.3 million are time vesting awards and approximately 0.3 million are time vesting awards with a performance qualifier. Of the 1.6 million restricted stock unit awards that were granted during the six months ended June 30, 2022, a pproximately 1.5 million vest in four ratable annual installments, approximately 0.1 million vest in two one subject to continuous employment or service from the grant date through the applicable vesting date. The majority of the awards that vest in two ratable annual installments were granted to executives as part of their incentive compensation for 2021, which had been recognized as an accrued compensation liability at December 31, 2021. The fair value of these restricted stock unit awards issued to executives was approximately $0.5 million. Accordingly, effective with the grant date associated with these restricted stock units, we recognized a $0.5 million decrease in Accrued expenses and other current liabilities and a $0.5 million increase in Additional paid-in capital on our condensed consolidated balance sheets. At June 30, 2022, approximately 2.8 million restricted stock units were outstanding. Share-based compensation expense associated with restricted stock units for the three months ended June 30, 2022 was $2.5 million, of which $0.3 million and $2.2 million is included in Center operations and General, administrative and marketing, respectively, in our condensed consolidated statements of operations. Share-based compensation expense associated with restricted stock units for the six months ended June 30, 2022 was $7.7 million, of which $0.5 million, $7.1 million and $0.1 million is included in Center operations, General, administrative and marketing and Other operating (income) expense, respectively, in our condensed consolidated statements of operations. Share-based compensation expense associated with restricted stock units for the three and six months ended June 30, 2021 was $2.9 million, all of which is included in General, administrative and marketing in our condensed consolidated statements of operations. As of June 30, 2022 , unrecognized share-based compensation expense related to restricted stock units was approximately $38.6 million, which is expected to be recognized over a weighted average remaining period of 3.3 years. Restricted Stock Share-based compensation expense associated with a restricted stock award for the three and six months ended June 30, 2022 was $0.2 million and $5.0 million, respectively, all of which is included in General, administrative and marketing in our condensed consolidated statements of operations. This award was fully vested as of June 30, 2022, and there is no unrecognized share-based compensation expense related to this restricted stock award. No share-based compensation expense related to restricted stock awards was recognized during the three and six months ended June 30, 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended June 30, 2022, t he benefit from income taxes was $4.0 million and $6.9 million, respectively. The effective tax rate was 63.6% and 14.6% for these same periods, respectively. For the three and six months ended June 30, 2021, the benefit from income taxes was $20.9 million and $46.9 million, respectively. The effective tax rate was 21.5% and 17.0% for these same periods, respectively. The effective tax rate applied to our pre-tax loss for the three months ended June 30, 2022 is higher than our federal statutory rate of 21% and reflects a decrease in the projected valuation allowance associated with certain of our deferred tax assets compared to the three months ended March 31, 2022, partially offset by deductibility limitations associated with executive compensation. The effective tax rate applied to our pre-tax loss for the six months ended June 30, 2022 is lower than our federal statutory rate of 21% and reflects deductibility limitations associated with executive compensation. Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies and future expectations of income. Based upon this analysis, a decrease to the valuation allowance of $3.4 million was recorded during the three months ended June 30, 2022 |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share For the three and six months ended June 30, 2022 , o ur potentially dilutive securities include stock options and restricted stock units. For the three and six months ended June 30, 2021 , o ur potentially dilutive securities include stock options, outstanding shares of Series A convertible participating preferred stock (“Series A Preferred Stock”) and unvested restricted Series A Preferred Stock. Due to the net loss that we recognized during the three and six months ended June 30, 2022 and 2021, the potentially dilutive shares of common stock associated with these equity-based securities were determined to be antidilutive and, therefore, are excluded from the computation of diluted loss per share for the three and six months ended June 30, 2022 and 2021. The following table sets forth the calculation of basic and diluted loss per share for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net loss $ (2,285) $ (76,356) $ (40,251) $ (229,157) Dividends accrued on Series A Preferred Stock — (6,006) — (10,288) Loss available to common stockholders $ (2,285) $ (82,362) $ (40,251) $ (239,445) Weighted average common shares outstanding—basic and diluted 193,692 145,196 193,082 145,196 Loss per share—basic and diluted $ (0.01) $ (0.57) $ (0.21) $ (1.65) The following is a summary of potential shares of common stock that were excluded from the computation of diluted loss per share for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Stock options 25,318 24,213 25,318 24,213 Restricted stock units 2,787 610 2,787 610 Outstanding shares of Series A Preferred Stock — 5,430 — 5,430 Unvested restricted Series A Preferred Stock — 500 — 500 Potential common shares excluded from diluted loss per share 28,105 30,753 28,105 30,753 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Life Time, Inc. et al. v. Zurich American Insurance Company On August 19, 2020, Life Time, Inc., several of its subsidiaries, and a joint venture entity, Bloomingdale Life Time Fitness LLC (collectively, the “Life Time Parties”) filed a complaint against Zurich American Insurance Company (“Zurich”) in the Fourth Judicial District of the State of Minnesota, County of Hennepin (Case No. 27-CV-20-10599) (the “Action”) seeking declaratory relief and damages with respect to Zurich’s failure under a property/business interruption insurance policy to provide certain coverage to the Life Time Parties related to the closure or suspension by governmental authorities of their business activities due to the spread or threatened spread of COVID-19. On March 15, 2021, certain of the Life Time Parties filed a First Amended Complaint in the Action adding claims against Zurich under a Builders’ Risk policy related to the suspension of multiple construction project s. The parties are currently in discovery. This Action is subject to many uncertainties, and the outcome of the matter is not predictable with any assurance. Other We are also engaged in other proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including but not limited to court rulings, negotiations between affected parties and governmental intervention. We establish reserves for matters that are probable and estimable in amounts we believe are adequate to cover reasonable adverse judgments. Based upon the information available to us and discussions with legal counsel, it is our opinion that the outcome of the various legal actions and claims that are incidental to our business will not have a material adverse impact on our consolidated financial position, results of operations or cash flows. Such matters are subject to many uncertainties, and the outcomes of individual matters are not predictable with assurance. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 5, 2022, we entered into a definitive agreement for the sale-leaseback of five properties with an aggregate sales price of approximately $200.0 million. The closing on this transaction is expected to be completed in early October 2022. We expect to recognize a net gain associated with this sale-leaseback transaction.In preparing the accompanying condensed consolidated financial statements, we have evaluated the period from June 30, 2022 through the date the condensed consolidated financial statements were issued for material subsequent events. There have been no other such events or transactions during this time which would have a material effect on the condensed consolidated financial statements and therefore would require recognition or disclosure |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Consolidation | The unaudited condensed consolidated financial statements include the accounts of Life Time Group Holdings, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Basis of Accounting and Use of Estimates | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In recording transactions and balances resulting from business operations, we use estimates based on the best information available. We revise the recorded estimates when better information is available, facts change, or we can determine actual amounts. These revisions can affect our consolidated operating results. All adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods have been included. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” to increase the transparency of government assistance, including with respect to the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance and the effect of the assistance on an entity’s financial statements. The amendments are to be applied either (1) prospectively to all applicable transactions that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions . We adopted this ASU as of January 1, 2022 and applied it prospectively. The adoption of this ASU did not have any impact on our financial position, results of operations or cash flows. New Accounting Pronouncements Not Yet Adopted |
Fair Value Measurements | The accounting guidance establishes a framework for measuring fair value and expanded disclosures about fair value measurements. The guidance applies to all assets and liabilities that are measured and reported on a fair value basis. This enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The guidance requires that each asset and liability carried at fair value be classified into one of the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The carrying amounts related to cash and cash equivalents, accounts receivable, income tax receivable, accounts payable and accrued liabilities approximate fair value. Fair Value Measurements on a Recurring Basis. We had no material remeasurements of such assets or liabilities to fair value during the three and six months ended June 30, 2022 and 2021. Financial Assets and Liabilities. At June 30, 2022, the fair value of our outstanding Term Loan Facility, Secured Notes and Unsecured Notes (each of which is defined in Note 6, Debt) was approximately $268.2 million, $846.4 million and $429.9 million, respectively. At December 31, 2021, the fair value of our outstanding Term Loan Facility, Secured Notes and Unsecured Notes was approximately $277.0 million, $957.4 million and $494.0 million, respectively. The carrying amount of our outstanding Mortgage Notes and Construction Loan (each of which is defined in Note 6, Debt) at June 30, 2022 and December 31, 2021 approximates fair value. The fair value of our debt is based on the amount of future cash flows discounted using rates we would currently be able to realize for similar instruments of comparable maturity. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. For more information regarding our debt, see Note 6, Debt. Fair Value Measurements on a Nonrecurring Basis. Assets and liabilities that are measured at fair value on a nonrecurring basis primarily relate to our long-lived assets, goodwill and intangible assets, which are remeasured when the derived fair value is below carrying value on our condensed consolidated balance sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. If we determine that impairment has occurred, the carrying value of the asset would be reduced to fair value and the difference would be recorded as a loss within operating income in our condensed consolidated statements of operations. We had no material remeasurements of such assets or liabilities to fair value during the periods presented. |
Supplemental Balance Sheet an_2
Supplemental Balance Sheet and Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid Expenses | Prepaid expenses and other current assets consisted of the following: June 30, December 31, Property held for sale $ 4,988 $ — Construction contract receivables 15,157 14,949 Deferred membership origination costs 1,398 3,150 Prepaid expenses 34,739 30,784 Prepaid expenses and other current assets $ 56,282 $ 48,883 |
Accrued Expenses | Accrued expenses and other current liabilities consisted of the following: June 30, December 31, Real estate taxes $ 31,851 $ 32,955 Accrued interest 34,988 35,006 Payroll liabilities 34,701 23,243 Utilities 7,891 7,022 Self-insurance accruals 18,663 18,921 Corporate accruals 31,074 24,741 Current maturities of finance lease liabilities 1,051 1,374 Other 4,034 4,658 Accrued expenses and other current liabilities $ 164,253 $ 147,920 |
Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: June 30, December 31, Real estate taxes $ 31,851 $ 32,955 Accrued interest 34,988 35,006 Payroll liabilities 34,701 23,243 Utilities 7,891 7,022 Self-insurance accruals 18,663 18,921 Corporate accruals 31,074 24,741 Current maturities of finance lease liabilities 1,051 1,374 Other 4,034 4,658 Accrued expenses and other current liabilities $ 164,253 $ 147,920 |
Supplemental Cash Flow Information | Decreases (increases) in operating assets and increases (decreases) in operating liabilities are as follows: Six Months Ended 2022 2021 Accounts receivable $ (4,215) $ (2,119) Center operating supplies and inventories (2,739) (1,780) Prepaid expenses and other current assets (2,199) (3,763) Income tax receivable 961 (876) Other assets 453 1,434 Accounts payable 4,064 27,389 Accrued expenses and other current liabilities 17,503 52,936 Deferred revenue 7,368 (2,087) Other liabilities (3,287) 125 Changes in operating assets and liabilities $ 17,909 $ 71,259 Additional supplemental cash flow information is as follows: Six Months Ended 2022 2021 Net cash paid for income taxes, net of refunds received $ 1,158 $ 1,112 Cash payments for interest, net of capitalized interest 53,514 42,302 Capitalized interest 6,497 1,726 Non-cash activity: Issuance of Series A Preferred Stock (as defined in Note 10, Loss Per Share) in connection with the extinguishment of a related party secured loan — 108,591 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-Lived Intangible Assets | Intangible assets consisted of the following: June 30, 2022 Gross Accumulated Amortization Net Trade name $ 163,000 $ — $ 163,000 Other 16,327 (5,902) 10,425 Total intangible assets $ 179,327 $ (5,902) $ 173,425 December 31, 2021 Gross Accumulated Amortization Net Trade name $ 163,000 $ — $ 163,000 Other 16,327 (5,086) 11,241 Total intangible assets $ 179,327 $ (5,086) $ 174,241 |
Finite-Lived Intangible Assets | Intangible assets consisted of the following: June 30, 2022 Gross Accumulated Amortization Net Trade name $ 163,000 $ — $ 163,000 Other 16,327 (5,902) 10,425 Total intangible assets $ 179,327 $ (5,902) $ 173,425 December 31, 2021 Gross Accumulated Amortization Net Trade name $ 163,000 $ — $ 163,000 Other 16,327 (5,086) 11,241 Total intangible assets $ 179,327 $ (5,086) $ 174,241 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following is a summary of revenue, by major revenue stream, that we recognized during the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Membership dues and enrollment fees $ 309,262 $ 217,244 $ 581,178 $ 392,551 In-center revenue 136,620 99,352 246,325 169,139 Total center revenue 445,882 316,596 827,503 561,690 Other revenue 15,385 6,591 26,018 10,795 Total revenue $ 461,267 $ 323,187 $ 853,521 $ 572,485 The timing associated with the revenue we recognized during the three months ended June 30, 2022 and 2021 is as follows: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Center Other Total Center Other Total Goods and services transferred over time $ 384,898 $ 15,385 $ 400,283 $ 272,971 $ 6,591 $ 279,562 Goods and services transferred at a point in time 60,984 — 60,984 43,625 — 43,625 Total revenue $ 445,882 $ 15,385 $ 461,267 $ 316,596 $ 6,591 $ 323,187 The timing associated with the revenue we recognized during the six months ended June 30, 2022 and 2021 is as follows: Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Center Other Total Center Other Total Goods and services transferred over time $ 717,885 $ 26,018 $ 743,903 $ 489,074 $ 10,795 $ 499,869 Goods and services transferred at a point in time 109,618 — 109,618 72,616 — 72,616 Total revenue $ 827,503 $ 26,018 $ 853,521 $ 561,690 $ 10,795 $ 572,485 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt Components | Debt consisted of the following: June 30, December 31, 2021 Term Loan Facility, maturing December 2024 $ 273,625 $ 273,625 Revolving Credit Facility, maturing December 2026 30,000 — Secured Notes, maturing January 2026 925,000 925,000 Unsecured Notes, maturing April 2026 475,000 475,000 Mortgage Notes, various maturities 134,033 145,572 Construction Loan, maturing February 2026 8,657 — Other debt 4,122 4,122 Fair value adjustment 1,493 1,818 Total debt 1,851,930 1,825,137 Less unamortized debt discounts and issuance costs (22,785) (25,891) Total debt less unamortized debt discount and issuance costs 1,829,145 1,799,246 Less current maturities (21,727) (23,527) Long-term debt, less current maturities $ 1,807,418 $ 1,775,719 |
Future Maturities of Long-Term Debt | Aggregate annual future maturities of long-term debt, excluding unamortized discounts, issuance costs and fair value adjustments, at June 30, 2022 were as follows: July 2022 through June 2023 $ 21,727 July 2023 through June 2024 64,814 July 2024 through June 2025 286,004 July 2025 through June 2026 1,421,571 July 2026 through June 2027 51,893 Thereafter 4,428 Total future maturities of long-term debt $ 1,850,437 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lease Cost, Weighted-Average Remaining Lease Terms , Discount Rates and Supplemental Cash Flow Information | Lease cost included in our condensed consolidated statements of operations for the three months ended June 30, 2022 and 2021 consisted of the following: Three Months Ended Classification in Condensed 2022 2021 Lease cost: Operating lease cost $ 58,156 $ 50,185 Rent Short-term lease cost 519 239 Rent Variable lease cost 1,314 1,098 Rent Finance lease cost: Amortization of right-of-use assets 335 375 Depreciation and amortization Interest on lease liabilities 26 47 Interest expense, net of interest income Total lease cost $ 60,350 $ 51,944 Lease cost included in our condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021 consisted of the following: Six Months Ended Classification in Condensed 2022 2021 Lease cost: Operating lease cost $ 112,909 $ 99,488 Rent Short-term lease cost 875 466 Rent Variable lease cost 2,169 2,085 Rent Finance lease cost: Amortization of right-of-use assets 690 739 Depreciation and amortization Interest on lease liabilities 57 98 Interest expense, net of interest income Total lease cost $ 116,700 $ 102,876 The weighted-average remaining lease terms and discount rates associated with our operating and finance lease liabilities at June 30, 2022 were as follows: June 30, 2022 Weighted-average remaining lease term (1) Operating leases 17.8 years Finance leases 1.7 years Weighted-average discount rate Operating leases 7.99% Finance leases 6.13% (1) The weighted-average remaining lease term associated with our operating and finance lease liabilities does not include all of the optional renewal periods available to us under our current lease arrangements. Rather, the weighted-average remaining lease term only includes periods covered by an option to extend a lease if we are reasonably certain to exercise that option. Supplemental cash flow information associated with our operating and finance leases is as follows: Six Months Ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96,174 $ 93,123 Operating cash flows from finance leases 57 98 Financing cash flows from finance leases 697 750 Non-cash information: Right-of-use assets obtained in exchange for initial lease liabilities: Operating leases 196,256 66,426 Finance leases — 1,111 Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities: Operating leases 5,626 (5,605) Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 26,240 9,500 |
Operating and Finance Lease Right-of-Use Assets and Lease Liabilities | Operating and finance lease right-of-use assets and lease liabilities were as follows: June 30, 2022 December 31, 2021 Classification on Condensed Lease right-of-use assets: Operating leases $ 2,060,368 $ 1,864,528 Operating lease right-of-use assets Finance leases (1) 1,374 2,073 Other assets Total lease right-of-use assets $ 2,061,742 $ 1,866,601 Lease liabilities: Current Operating leases $ 48,249 $ 46,315 Current maturities of operating lease liabilities Finance leases 1,051 1,374 Accrued expenses and other current liabilities Non-Current Operating leases 2,094,104 1,909,883 Operating lease liabilities, net of current portion Finance leases 372 757 Other liabilities Total lease liabilities $ 2,143,776 $ 1,958,329 |
Maturities of Operating Lease Liabilities | The maturities associated with our operating and finance lease liabilities at June 30, 2022 are as follows: Operating Leases Finance Leases Total July 2022 through June 2023 $ 202,982 $ 1,102 $ 204,084 July 2023 through June 2024 221,616 364 221,980 July 2024 through June 2025 223,849 16 223,865 July 2025 through June 2026 228,381 — 228,381 July 2026 through June 2027 228,182 — 228,182 Thereafter 3,062,007 — 3,062,007 Total lease payments 4,167,017 1,482 4,168,499 Less: Imputed interest 2,024,664 59 2,024,723 Present value of lease liabilities $ 2,142,353 $ 1,423 $ 2,143,776 |
Maturities of Finance Lease Liabilities | The maturities associated with our operating and finance lease liabilities at June 30, 2022 are as follows: Operating Leases Finance Leases Total July 2022 through June 2023 $ 202,982 $ 1,102 $ 204,084 July 2023 through June 2024 221,616 364 221,980 July 2024 through June 2025 223,849 16 223,865 July 2025 through June 2026 228,381 — 228,381 July 2026 through June 2027 228,182 — 228,182 Thereafter 3,062,007 — 3,062,007 Total lease payments 4,167,017 1,482 4,168,499 Less: Imputed interest 2,024,664 59 2,024,723 Present value of lease liabilities $ 2,142,353 $ 1,423 $ 2,143,776 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share | The following table sets forth the calculation of basic and diluted loss per share for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net loss $ (2,285) $ (76,356) $ (40,251) $ (229,157) Dividends accrued on Series A Preferred Stock — (6,006) — (10,288) Loss available to common stockholders $ (2,285) $ (82,362) $ (40,251) $ (239,445) Weighted average common shares outstanding—basic and diluted 193,692 145,196 193,082 145,196 Loss per share—basic and diluted $ (0.01) $ (0.57) $ (0.21) $ (1.65) |
Potential Common Shares Excluded from Computation of Diluted Loss Per Share | The following is a summary of potential shares of common stock that were excluded from the computation of diluted loss per share for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Stock options 25,318 24,213 25,318 24,213 Restricted stock units 2,787 610 2,787 610 Outstanding shares of Series A Preferred Stock — 5,430 — 5,430 Unvested restricted Series A Preferred Stock — 500 — 500 Potential common shares excluded from diluted loss per share 28,105 30,753 28,105 30,753 |
Nature of Business and Basis _2
Nature of Business and Basis of Consolidation and Presentation (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 9 Months Ended | |||
Nov. 01, 2021 USD ($) $ / shares shares | Oct. 13, 2021 USD ($) | Oct. 12, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) center province state | Jun. 30, 2022 USD ($) center province state | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of centers | center | 153 | 153 | |||
Number of states in which entity operates | state | 29 | 29 | |||
Number of provinces in which entity operates | province | 1 | 1 | |||
IPO | |||||
Sale of Stock [Line Items] | |||||
Sale of common stock (in shares) | shares | 39 | ||||
Sale of common stock, price (in usd per share) | $ / shares | $ 18 | ||||
Sale of common stock, gross proceeds | $ 702 | ||||
Underwriting discounts and other offering expenses | $ 0.3 | $ 28 | |||
Sale of common stock, net proceeds | $ 674 | ||||
Underwriters option | |||||
Sale of Stock [Line Items] | |||||
Sale of common stock (in shares) | shares | 1.6 | ||||
Sale of common stock, price (in usd per share) | $ / shares | $ 18 | ||||
Sale of common stock, gross proceeds | $ 28.4 | ||||
Underwriting discounts and other offering expenses | 1.3 | ||||
Sale of common stock, net proceeds | $ 27.1 | ||||
Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 575.7 | ||||
Prepayment penalty | $ 5.7 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Amended Senior Secured Credit Facility | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt, fair value | $ 268.2 | $ 277 |
Secured Notes Maturing January 2026 | Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt, fair value | 846.4 | 957.4 |
Unsecured Notes Maturing April 2026 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debt, fair value | $ 429.9 | $ 494 |
Supplemental Balance Sheet an_3
Supplemental Balance Sheet and Cash Flow Information - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Property held for sale | $ 4,988 | $ 0 |
Construction contract receivables | 15,157 | 14,949 |
Deferred membership origination costs | 1,398 | 3,150 |
Prepaid expenses | 34,739 | 30,784 |
Prepaid expenses and other current assets | $ 56,282 | $ 48,883 |
Supplemental Balance Sheet an_4
Supplemental Balance Sheet and Cash Flow Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Real estate taxes | $ 31,851 | $ 32,955 |
Accrued interest | 34,988 | 35,006 |
Payroll liabilities | 34,701 | 23,243 |
Utilities | 7,891 | 7,022 |
Self-insurance accruals | 18,663 | 18,921 |
Corporate accruals | 31,074 | 24,741 |
Current maturities of finance lease liabilities | 1,051 | 1,374 |
Other | 4,034 | 4,658 |
Accrued expenses and other current liabilities | $ 164,253 | $ 147,920 |
Supplemental Balance Sheet an_5
Supplemental Balance Sheet and Cash Flow Information - Changes in Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ (4,215) | $ (2,119) |
Center operating supplies and inventories | (2,739) | (1,780) |
Prepaid expenses and other current assets | (2,199) | (3,763) |
Income tax receivable | 961 | (876) |
Other assets | 453 | 1,434 |
Accounts payable | 4,064 | 27,389 |
Accrued expenses and other current liabilities | 17,503 | 52,936 |
Deferred revenue | 7,368 | (2,087) |
Other liabilities | (3,287) | 125 |
Changes in operating assets and liabilities | $ 17,909 | $ 71,259 |
Supplemental Balance Sheet an_6
Supplemental Balance Sheet and Cash Flow Information - Additional Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net cash paid for income taxes, net of refunds received | $ 1,158 | $ 1,112 |
Cash payments for interest, net of capitalized interest | 53,514 | 42,302 |
Capitalized interest | 6,497 | 1,726 |
Non-cash activity: | ||
Issuance of Series A Preferred Stock (as defined in Note 10, Loss Per Share) in connection with the extinguishment of a related party secured loan | $ 0 | $ 108,591 |
Goodwill and Intangibles - Narr
Goodwill and Intangibles - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 1,233,176 | $ 1,233,176 | $ 1,233,176 | ||
Amortization expense, intangible assets | 300 | $ 200 | 800 | $ 400 | |
Goodwill and intangible asset impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, accumulated amortization | $ (5,902) | $ (5,086) |
Intangible assets, gross | 179,327 | 179,327 |
Intangible assets, net | 173,425 | 174,241 |
Trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 163,000 | 163,000 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 16,327 | 16,327 |
Finite-lived intangible assets, accumulated amortization | (5,902) | (5,086) |
Finite-lived intangible assets, net | $ 10,425 | $ 11,241 |
Revenue - Revenue by Major Reve
Revenue - Revenue by Major Revenue Stream (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 461,267 | $ 323,187 | $ 853,521 | $ 572,485 |
Total center revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 445,882 | 316,596 | 827,503 | 561,690 |
Membership dues and enrollment fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 309,262 | 217,244 | 581,178 | 392,551 |
In-center revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 136,620 | 99,352 | 246,325 | 169,139 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 15,385 | $ 6,591 | $ 26,018 | $ 10,795 |
Revenue - Revenue by Timing (De
Revenue - Revenue by Timing (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 461,267 | $ 323,187 | $ 853,521 | $ 572,485 |
Goods and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 400,283 | 279,562 | 743,903 | 499,869 |
Goods and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 60,984 | 43,625 | 109,618 | 72,616 |
Center revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 445,882 | 316,596 | 827,503 | 561,690 |
Center revenue | Goods and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 384,898 | 272,971 | 717,885 | 489,074 |
Center revenue | Goods and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 60,984 | 43,625 | 109,618 | 72,616 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,385 | 6,591 | 26,018 | 10,795 |
Other revenue | Goods and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,385 | 6,591 | 26,018 | 10,795 |
Other revenue | Goods and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 43,200 | $ 35,900 |
Contract liabilities, current | 41,190 | 33,871 |
Increase in current contract liabilities | 7,300 | |
Contract liabilities, long-term | $ 2,000 | $ 2,000 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt | $ 1,850,437 | |
Fair value adjustment | 1,493 | $ 1,818 |
Total debt | 1,851,930 | 1,825,137 |
Less unamortized debt discounts and issuance costs | (22,785) | (25,891) |
Total debt less unamortized debt discount and issuance costs | 1,829,145 | 1,799,246 |
Less current maturities | (21,727) | (23,527) |
Long-term debt, less current maturities | 1,807,418 | 1,775,719 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt | 273,625 | 273,625 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt | 30,000 | 0 |
Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt | 925,000 | 925,000 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debt | 475,000 | 475,000 |
Mortgage notes, various maturities | ||
Debt Instrument [Line Items] | ||
Debt | 134,033 | 145,572 |
Construction Loan | ||
Debt Instrument [Line Items] | ||
Debt | 8,657 | 0 |
Other debt | ||
Debt Instrument [Line Items] | ||
Debt | $ 4,122 | $ 4,122 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 02, 2021 | Jan. 22, 2021 |
Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 850 | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity | $ 475 | ||
Maturity date terms, minimum remaining outstanding balance on Secured Notes | $ 100 | ||
Maturity date terms, minimum remaining outstanding balance on Unsecured Notes | $ 100 |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Oct. 13, 2021 | Jan. 22, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Outstanding balance | $ 1,850,437 | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 850,000 | |||
Amortization interest rate | 0.25% | |||
Mandatory quarterly principal repayments | $ 2,100 | |||
Repayments of debt | $ 575,700 | |||
Prepayment penalty | $ 5,700 | |||
Outstanding balance | $ 273,625 | $ 273,625 | ||
Interest rate floor | 1% | |||
Term Loan Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 4.75% | |||
Term Loan Facility | Base rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 3.75% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 1,850,437 | |
Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 475,000 | |
Outstanding balance | 30,000 | $ 0 |
Available capacity | $ 413,500 | |
Weighted average interest rate | 4.26% | |
Weighted average amount outstanding | $ 41,000 | |
Highest month-end balance | $ 90,000 | |
Revolving Credit Facility | Line of Credit | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 4.25% | |
Revolving Credit Facility | Line of Credit | Base rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 3.25% | |
Letter of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 31,500 |
Debt - Secured Notes (Details)
Debt - Secured Notes (Details) - Secured Notes $ in Millions | Jan. 22, 2021 USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 925 |
Interest rate | 5.75% |
Percentage of principal allowed to redeem | 40% |
Redemption price percentage | 105.75% |
Debt - Unsecured Notes (Details
Debt - Unsecured Notes (Details) - Unsecured Debt $ in Millions | Feb. 05, 2021 USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 475 |
Interest rate | 8% |
Percentage of principal allowed to redeem | 40% |
Redemption price percentage | 108% |
Debt - Mortgage Notes (Details)
Debt - Mortgage Notes (Details) | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgage notes, various maturities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.71% | 4.70% |
Debt - Construction Loan (Detai
Debt - Construction Loan (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 22, 2021 |
Debt Instrument [Line Items] | |||
Outstanding balance | $ 1,850,437 | ||
Construction Loan | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 28,000 | ||
Minimum variable interest rate | 4.80% | ||
Outstanding balance | $ 8,657 | $ 0 |
Debt - Debt Discounts and Issua
Debt - Debt Discounts and Issuance Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Debt discounts and issuance costs, net | $ 22,785 | $ 25,891 |
Credit facility debt issuance costs, net | $ 3,500 | $ 4,000 |
Debt - Debt Covenants (Details)
Debt - Debt Covenants (Details) - Revolving Credit Facility - Line of Credit $ in Millions | Jun. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Debt covenant, first lien net leverage ratio, percent of commitments outstanding threshold | 30% |
Debt covenant, first lien net leverage ratio, amount of letters of credit excluded (up to) | $ 20 |
Debt - Future Maturities of Lon
Debt - Future Maturities of Long-Term Debt (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
July 2022 through June 2023 | $ 21,727 |
July 2023 through June 2024 | 64,814 |
July 2024 through June 2025 | 286,004 |
July 2025 through June 2026 | 1,421,571 |
July 2026 through June 2027 | 51,893 |
Thereafter | 4,428 |
Total future maturities of long-term debt | $ 1,850,437 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease cost: | ||||
Operating lease cost | $ 58,156 | $ 50,185 | $ 112,909 | $ 99,488 |
Short-term lease cost | 519 | 239 | 875 | 466 |
Variable lease cost | 1,314 | 1,098 | 2,169 | 2,085 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 335 | 375 | 690 | 739 |
Interest on lease liabilities | 26 | 47 | 57 | 98 |
Total lease cost | $ 60,350 | $ 51,944 | $ 116,700 | $ 102,876 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Lease right-of-use assets: | ||
Operating leases | $ 2,060,368 | $ 1,864,528 |
Finance leases | $ 1,374 | $ 2,073 |
Finance leases location | Other assets | Other assets |
Total lease right-of-use assets | $ 2,061,742 | $ 1,866,601 |
Current | ||
Operating leases | 48,249 | 46,315 |
Finance leases | $ 1,051 | $ 1,374 |
Finance leases location | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Non-Current | ||
Operating leases | $ 2,094,104 | $ 1,909,883 |
Finance leases | $ 372 | $ 757 |
Finance leases location | Other liabilities | Other liabilities |
Total lease liabilities | $ 2,143,776 | $ 1,958,329 |
Finance lease right-of-use assets, accumulated amortization | $ 2,600 | $ 2,400 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | |
Leases [Abstract] | ||
Sale-leaseback transaction, number of properties | property | 4 | |
Sale-leaseback transaction, gross proceeds | $ 175,000 | |
Sale-leaseback transaction, net book value | 150,800 | |
Sale-leaseback transaction, transaction costs | 800 | |
Sale-leaseback transaction, net proceeds | 174,246 | $ 33,933 |
Sale-leaseback transaction, fair value | 201,200 | |
Sale-leaseback transaction, fair value adjustment increase | 26,240 | $ 9,500 |
Sale-leaseback transaction, gain | $ 49,600 |
Leases - Remaining Lease Terms
Leases - Remaining Lease Terms and Discount Rates (Details) | Jun. 30, 2022 |
Weighted-average remaining lease term | |
Operating leases | 17 years 9 months 18 days |
Finance leases | 1 year 8 months 12 days |
Weighted-average discount rate | |
Operating leases | 7.99% |
Finance leases | 6.13% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 96,174 | $ 93,123 |
Operating cash flows from finance leases | 57 | 98 |
Financing cash flows from finance leases | 697 | 750 |
Right-of-use assets obtained in exchange for initial lease liabilities: | ||
Operating leases | 196,256 | 66,426 |
Finance leases | 0 | 1,111 |
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities: | ||
Operating leases | 5,626 | (5,605) |
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions | $ 26,240 | $ 9,500 |
Leases - Maturities of Leases (
Leases - Maturities of Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
July 2022 through June 2023 | $ 202,982 | |
July 2023 through June 2024 | 221,616 | |
July 2024 through June 2025 | 223,849 | |
July 2025 through June 2026 | 228,381 | |
July 2026 through June 2027 | 228,182 | |
Thereafter | 3,062,007 | |
Total lease payments | 4,167,017 | |
Less: Imputed interest | 2,024,664 | |
Present value of lease liabilities | 2,142,353 | |
Finance Leases | ||
July 2022 through June 2023 | 1,102 | |
July 2023 through June 2024 | 364 | |
July 2024 through June 2025 | 16 | |
July 2025 through June 2026 | 0 | |
July 2026 through June 2027 | 0 | |
Thereafter | 0 | |
Total lease payments | 1,482 | |
Less: Imputed interest | 59 | |
Present value of lease liabilities | 1,423 | |
Total | ||
July 2022 through June 2023 | 204,084 | |
July 2023 through June 2024 | 221,980 | |
July 2024 through June 2025 | 223,865 | |
July 2025 through June 2026 | 228,381 | |
July 2026 through June 2027 | 228,182 | |
Thereafter | 3,062,007 | |
Total lease payments | 4,168,499 | |
Less: Imputed interest | 2,024,723 | |
Total lease liabilities | $ 2,143,776 | $ 1,958,329 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jan. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 06, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 0.9 | |||||
Stock option exercises (in shares) | 0.1 | 0.1 | ||||
Stock options outstanding (in shares) | 25.3 | 25.3 | ||||
Stock options exercisable (in shares) | 22 | 22 | ||||
Unrecognized share-based compensation expense, options | $ 22,500 | $ 22,500 | ||||
Share-based compensation | $ 5,973 | $ 1,130 | $ 27,411 | $ 1,130 | ||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for issuance (in shares) | 2.9 | 2.9 | ||||
Annual increase in shares authorized, percent | 1% | 1% | ||||
Maximum shares available for issuance (in shares) | 29 | 29 | ||||
Purchase price of commons stock, percent | 85% | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual term | 10 years | |||||
Vesting period | 4 years | |||||
Share-based compensation expense | $ 3,300 | 0 | $ 14,700 | 0 | ||
Unrecognized share-based compensation expense, period of recognition | 3 years 1 month 6 days | |||||
Stock options | Center operations | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 300 | $ 1,300 | ||||
Stock options | General, administrative and marketing | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 2,900 | 13,000 | ||||
Stock options | Other operating income/expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 100 | 400 | ||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 2,500 | 2,900 | $ 7,700 | 2,900 | ||
Unrecognized share-based compensation expense, period of recognition | 3 years 3 months 18 days | |||||
Awards granted (in shares) | 1.6 | |||||
Share-based compensation | $ 500 | |||||
Awards outstanding (in shares) | 2.8 | 2.8 | ||||
Unrecognized share-based compensation expense | $ 38,600 | $ 38,600 | ||||
Restricted stock units | Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Awards granted (in shares) | 1.5 | |||||
Vesting percentage | 50% | |||||
Restricted stock units | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Awards granted (in shares) | 0.1 | |||||
Restricted stock units | Share-Based Payment Arrangement, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Awards granted (in shares) | 0.1 | |||||
Restricted stock units | Center operations | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 300 | $ 500 | ||||
Restricted stock units | General, administrative and marketing | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 2,200 | 7,100 | ||||
Restricted stock units | Other operating income/expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 100 | |||||
Time vesting restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 1.3 | |||||
Performance vesting restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 0.3 | |||||
Outstanding shares of Series A Preferred Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 200 | $ 0 | $ 5,000 | $ 0 | ||
2021 Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for issuance (in shares) | 14.5 | |||||
Annual increase in shares authorized, percent | 4% | 4% | ||||
Additional shares available for issuance (in shares) | 7.7 | |||||
Term of plan | 10 years | |||||
Shares available for future grants (in shares) | 19.1 | 19.1 | ||||
2015 Equity Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ (3,990) | $ (20,933) | $ (6,857) | $ (46,886) |
Effective tax rate | 63.60% | 21.50% | 14.60% | 17% |
Decrease in deferred tax assets valuation allowance | $ 3,400 |
Loss Per Share - Basic and Dilu
Loss Per Share - Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (2,285) | $ (76,356) | $ (40,251) | $ (229,157) |
Dividends accrued on Series A Preferred Stock | 0 | (6,006) | 0 | (10,288) |
Loss available to common stockholders - basic | (2,285) | (82,362) | (40,251) | (239,445) |
Loss available to common stockholders - diluted | $ (2,285) | $ (82,362) | $ (40,251) | $ (239,445) |
Weighted average common shares outstanding - basic (in shares) | 193,692 | 145,196 | 193,082 | 145,196 |
Weighted average common shares outstanding - diluted (in shares) | 193,692 | 145,196 | 193,082 | 145,196 |
Loss per share - basic (in usd per share) | $ (0.01) | $ (0.57) | $ (0.21) | $ (1.65) |
Loss per share - diluted (in usd per share) | $ (0.01) | $ (0.57) | $ (0.21) | $ (1.65) |
Loss Per Share - Potential Comm
Loss Per Share - Potential Common Shares Excluded from Computation of Diluted Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted loss per share (in shares) | 28,105,000 | 30,753,000 | 28,105,000 | 30,753,000 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted loss per share (in shares) | 25,318,000 | 24,213,000 | 25,318,000 | 24,213,000 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted loss per share (in shares) | 2,787,000 | 610,000 | 2,787,000 | 610,000 |
Outstanding shares of Series A Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted loss per share (in shares) | 0 | 5,430,000 | 0 | 5,430,000 |
Unvested restricted Series A Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted loss per share (in shares) | 0 | 500,000 | 0 | 500,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 6 Months Ended | |
Aug. 05, 2022 USD ($) property | Jun. 30, 2022 USD ($) property | |
Subsequent Event [Line Items] | ||
Sale-leaseback transaction, number of properties | property | 4 | |
Sale-leaseback transaction, gross proceeds | $ | $ 175 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Sale-leaseback transaction, number of properties | property | 5 | |
Sale-leaseback transaction, gross proceeds | $ | $ 200 |