LTH - Earnings call transcript Q4 2021 | Life Time Group Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Life Time Group Holdings Conference Call to discuss financial results for the Fourth Quarter and Full Year Fiscal 2021. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session and instructions will be given at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from the company.

As a reminder, this call is being recorded.

our company risks forward-looking cause and to materially the a which actual call, differ of number uncertainties from this will statements, make involve results During statements. forward-looking that may which list comprehensive in SEC review. risk There's are a to of encouraged the factors company's filings, and Also, the EBITDA certain flow before measures, including non-GAAP company cash financial growth will adjusted discuss free capital expenditures. the filed and reconciliations to on Relations GAAP the included in comparable the and the measures morning this X-K directly with earnings most along the issue information section with Time's This SEC of company's release website. are Investor Life

On the Officer. sir. Akradi started. Please call Bergmann, Chairman, are call will from and and to Executive get President the Bahram Mr. I Akradi, and Tom management to ahead, Officer, Founder, go now today Financial Chief turn Chief over

Bahram Akradi

Good fourth you thank earnings a I am quarter joining we to fourth quarter. very call. our had morning, and that share pleased good and year-end for

slightly of and was revenue in Omicron. Our Delta vaccine trends variants, adjusted of guidance with The from and disruptive our January, coupled February. EBITDA line early timing in very mask membership these to ahead the headwinds mandate and significant previous December, recovery COVID was despite heavy with guidance was and

great However, traffic from momentum are mid-February onwards, and we seeing club in membership recovery.

for additional substantially Delta average these Omicron have fantastic strategies position to decision the capture extremely decisive offensive well company revenue in started the focus through growth We in positions memberships that higher a throughout XXXX very We steep headwinds. put main is a levels for Our strategy we at quarter that believe the XXXX significant year fourth to continue made XXXX. and dues. in us the to

trust XX required closer the XXX% have with most the level paying of established growth years. our rent, high robust a center nearly even relationships. resulting I Our estate the by real pandemic, Throughout partners we in pipeline seen is in

and the Life financial very club are development. as In a country positive their benefits experiencing in partners impact brings the addition, it Time of our

opportunities We continue relationships. to see an increasing suburban number urban from these and of

plan our proceeds balance and XXXX, we of into million. We continues of than $XXX XX four Earlier to open a our strengthening athletic this aggregate new XXXX stronger of for to for ever. year, intent clubs, become the and For entered further beyond sheet. we remain non-binding sale-leaseback our to country for letter properties committed pipeline of

and expect on We to of September. the two end these close by end properties by month, of properties two the of the this other

to We continue additional transactions. evaluate sale-leaseback opportunities for

value our the remarks. Tom's has to more of debt owned than market reminder, I'm billion. which this call the portion exceeds Q&A $X estate approximately real of estimated levels forward billion, a looking current As of $X.X after company's

Here you Tom. go,

Tom Bergmann

new XXXX, of same-store as December On over by both sales XXst increased XXX,XXX Center basis, other a for compared Great. to on to and as affluent lesser pricing the increases strategy revenue increased to XXXX. driven fiscal fourth results outlook Thank you, in a that first continued Average and million of fourth over increased Bahram. increased $XXX increased businesses of in-center more center XXXX. the revenue. spending and revenue to from some increases XXXX full-year driven quarter, our as and markets. additional to reflecting XXX,XXX $XXX.X as XX%. quarter initial just year by clubs center quarter opening In million membership December a in center and the center total XX.X% revenue per our center increased in extent, on in revenue. $XXX.X revenue our I'll detail in provide and membership $XXX to XX% approximately both well of center dues memberships was Total few comments the period, XX.X% with execution XXst prior-year just our comparable

had As in the and typically we to to quarter quarter center lose discussed from end pools members included normal last due call, memberships of the atypical was increase center fourth the decline X,XXX end our did was the conform in lease, our expectation. approximately and to on Average fourth monthly third of line quarter X also to quarter expectations the the during dues small in overall quarter line Each back basis, Related year. kids fourth the we of The fourth school approximately the going third the $XXX experience. to XX,XXX of last increase fourth sequential of compared lifestyle with in a seasonality on membership comprehensive centers fall. of of in $XXX our of not to with from An This sequential to which the loss the per closure quarter. an the the related to was brand XX%. quarter membership. our and expiring closing

by small to doubled monthly -- continue with year. in membership the the of businesses events to that and combined members, we throughout approximately the new X a this to was average from generated to dues athletic I Other of and business. centers, outside existing includes increases expected revenue our of our to closure XXXX, primarily mentioned, just our per the throughout more opening premium quarter expect $X.X grow layering revenue, in clubs driven our which price than higher-priced lease centers the off-brand continued With million grow

expenses. share-based were In non-cash to $XXX.X total and one-time quarter, $XXX.X million fourth operating items operating included the expense expenses and of million. compensation on Moving

expense. million. $XX.X XX.X% included of Excluding Center and and non-cash expense share-based million share-based operations was compensation expense operating increased compensation one-time $XXX total items, expenses million $XXX.X to

$XX.X during compensation operations million Rent by included to center non-cash share-based due expense our begin to to by expense million, or construction. General items. $XXX.X and primarily site increased non-cash cost center and a and we've and additional compared driven $X.X were the expenses of year expense marketing $X.X XX.X% one-time other million of additional recovery, expense, increased the taken administrative million where prior expense million of a last Excluding compensation quarter. of impact fourth and to one-time share-based $XXX.X million rent year's $XX.X sale-leasebacks XX.X% closures possession

Excluding general expenses amortization rectifying expense million public centers X.X% leasebacks. items, related administrative our support to expenses. other sale and of were million additional the of $XX functions gains XX.X% million decreased $XX.X these reopened $X.X marketing center and million non-cash $X.X Depreciation increased and primarily compensation as company to included million to to due operating overhead and share-based $XX.X expenses of and and

expenses Excluding these operating decreased XX.X% items, $X.X other million. to

period. in for million $XXX.X the Our was GAAP with of the a from prior-year reported compared loss quarter operations $XX.X loss million

expense $XXX.X fourth one-time adjusted the compared items, from loss loss compensation operations and million share-based of million including $XX.X loan of pre $XX.X quarter. connection was penalty. $XX.X Excluding a was expense million Net pay-down operations incurred million, adjusted in million included -payment in million facility, year's costs from of with $X.X the and interest $XX.X our last term of partial the to an

expense to Excluding million. decreased items, X.X% approximately these one-time interest $XX.X net

effective our certain loss tax XX.X% effective other tax prior-year was in non-deductible items. rate against fourth result up compared carry primarily valuation net the XX.X% with rate allowances forwards, operating period. of a state, and Our quarter is tax This lower

million was loss $XX.X net fourth-quarter in with of XXXX. net Our million $XXX.X a loss GAAP compared

$XX.X expense of items. Excluding one-time and of $XXX.X share-based million compensation million

million million $XX.X quarter $XX.X Our the from million. adjusted Fourth of $XX $XX prior-year loss adjusted increased from to net a in loss improved EBITDA to million period.

the revenue full-year, to a center revenue in by prior-year versus the in membership $X.X per XX.X%, period. sales For and revenue. to center $XXXX total increased increase driven a increase in average center billion increased other XX% XX.X% to revenue $XXXX center increased approximately XX.X Comparable approximately

Our loss million million loss $XXX.X of GAAP compared with a was net in net $XXX.X XXXX.

net expense million from increased improved to items, to $XXX.X and million compensation a million of million $XXX.X share-based of $XX million. Adjusted of $XXX.X one-time $XX.X Excluding from $XX.X million. loss loss adjusted EBITDA

of cash December $XX.X balance compared sheet, $XX.X December XXXX as onto XXst, million and million Moving to cash XXXX. was the XXst, as of equivalents

discussed pre facility quarter's down -payment our the used proceeds during corporate IPO we million to loan we remaining the secured proceeds purposes. with our on $XXX fourth used term As for including pay and a last penalty senior call, general of $X.X million quarter the completed

revolving quarter million of of $XXX that December maturity We and the extended during we our to approximately XXXX. from increased million facility the also $XXX fourth credit announced to the size

mentioned, XXXX or in leaseback expected the of the the for $XXX sale for approximately Bahram gross company properties sale-leaseback these gross announced completed ago, of the in an few properties properties XXth, price leaseback XXst, $XX XXXX weeks intent is million. we million $XX for proceeds. of September prior to approximately additional to March two before be The that complete a million proceeds. entered of estimated two of on As of with plan transaction just has to sale non-binding four letter a into aggregate We

tool additional balance We growth a will front have future strengthen continue to opportunities of transactions attractive in sheet our the to consider in the to us. continue sale-leaseback and we evaluate and fund as

reminder, compared expense to clubs rent performance expenditures was clubs in openings understand expense, a operating plan as club transactions as under mentioned, with continue Capital construction. financial new open to we properties in $XXX.X year reported to opened $XXX.X and XX adjusted impact incremental and totaled six of look primarily the execute in we XXXX. XXXX XXXX. increase The underlying new better million million of As rent higher and during we leaseback We number incur plus sale EBITDA as and the our statements at the in our currently trends. Bahram related to

first initial our quarter of for the to Turning outlook XXXX.

February, Bahram million. throughout Omicron late growth net $XX have numerous first million, of million $XXX the membership to and quarter January, mentioned be made the we For of This to December, EBITDA a and $XX strategic be previously and to experienced expect to million, in of in revenue million range range of revenue we the the reflects initiatives. in investments XXXX, impact we loss increase $XX in XXXX $XX outlook million $XXX to the drive adjusted and beyond. to the

revenue Let me commentary standpoint. both are about provide profitability thinking some from year how a and additional we the on

revenue be billion of in range the We billion. to are $X.X $X.X forecasting to

further as throughout our move expect revenue pandemic, during from gain pools the We new we our momentum second accelerate the the to open and from away quarter, initiatives. year

first to think couple year. most As memberships of companies in you year, different [Indiscernible] remember that their it's we our of the majority the than growth the important that months the of generate are about typical revenue fitness throughout

example, center and first XX,XXX XXXX, of the For net totaling XX,XXX second grew first in XX,XXX we of memberships the that center memberships quarter in months new in year. net over by over our just just six the quarter sequentially in

A memberships. with and second as expect we exceed free quarter XXXX. other opening of pools COVID-XX year, this to about our initiatives few expecting any new other momentum, net first our new outdoor of to memberships restrictions, or be mass quarter net For think gaining center comments we the mandates center

$XX forecasting includes company range We rent in or million full-year of approximately to revenue. to million. $XXX be million rent non-cash expense expense This of are million to the of total $XXX $XX XX%

temporary As investing initiatives we we in the into fourth the during the our cost new February, wrap mandates will operating achieve membership with country. over well to XX% think targeting we the Omicron build business by additional around continue margin leverage to of last have believe timing December, this adjusted be improve this weeks few of let to the throughout gain the disrupted membership numbers, the start of in us revenue trends see up of we margin Outside just returns base to on late and range EBITDA while and quarters removal usage and our We the expansion third and XXXX. fixed on and our XXXX, is are position mask started heading for to saying, encouraging XXXX. in, early and are January, me steadily XX%

other we XX% of centers and/or our mask Omicron, During mandates nearly under had restrictions. COVID-XX

pleased very as expect U.S. of are we COVID we free March be -related of all clubs XXth, of that So restrictions. our to

share, outdoor season, many the we lot be pandemic, clubs from in experiences back to Canadian iconic, in of restrictions. three momentum forward move to optimistic balance in. the continue new about been we suburban members. the There With clubs turn are investing initiatives and investments delivering take we the strengthening healthy locations, as build to Operator? market Q&A. long-term In our to making and right see call only have to urban life the our Our operator of start the XXXX, is our way will to a look unparalleled opening and focus away remaining will the that, that for on premium we summer sheet, have for dense over

Operator

[Operator One session. poll A in please Thank the while a conducting Instructions] for questions. your line confirmation Instructions] We'll moment now tone be question-and-answer you. we queue. indicate is question will [Operator

BMO from today Siegel Our Capital from coming is Simeon first question Markets.

now live. is line Your

Simeon Siegel

Thanks. much well. you recapture? doing speak to Good with what digital that how and dig How back memberships about average rate morning, levels? into just more quarter the this lifts on-hold you price all came per B, guys of thinking price the Tom. great paid Hope prior are of bit everyone. Would from quick A you're to center Thanks. what digital expect you'd hold And be conversions question, decline then could on of the monthly forward. membership seeing a little and going versus you

Tom Bergmann

continue that down are we on-hold X.X see period. get to members we're good with, to months back about, typically and about average, to time. our time people digital over period morning. five come of To start to access on so we going of Simeon, Thanks, hold hold, to XX% shorten, XX% That around

continue members we of job converting to So access do back a nice to on-hold members.

front, I with pricing very we happy the made. Bahram overall the and are changes we're the on and On acquisition price seeing trends

up to started to as a have didn't as from see priced to the price little price the we of well-positioned over market we a they're didn't open large legacy about slight it we that to those increase. now increase for we new of be but clubs we XX% where bit here a did QX during as XX take are QX the the higher pleased we in the clubs premium increase any very XXXX, in existing continue think overall opening clubs open as We quarter country. fourth We member across with an are. And at

the per the to here to we year new in legacy as dues to open throughout the we we to and membership our that expect XXXX, average see continue grow somewhere continue $XXX clubs year in in price up in As Yeah. $XXX layer range. increases,

coming now about more expectation X going, membership are is making are of you to this will where the that, 'XX. digital months will maneuvers $XX whether it's when additional X right as here singles dropping take probably that this joining, are people shared right I membership. shrink this between very about about And we with or more to time time is, joining. of a said we're some compared is Simeon, X the like in And month, they of transformation, that and Additionally, and was people more from interesting another to X.X, at people it, that sad the public range, $XX. the week, we're linked we day a thing average went the X compare memberships somewhere off so on like going portion the that we'll and sales XXX this average to be the first now, by average shave of between when that. families other and XXX% are then coming And every selling in dues dues we on months, we in to and half another were and The is month of XXX depending day of with in you and difference $XX-$XX guys, months and

of same more us in forward. revenue, reoccurring memberships So brings XXX% number dues dues revenue actually going

They're So the really amazing. great. trends really, are

Simeon Siegel

That's have great. can one I follow-up. And then if

with conversations color there. So you new connected since connected digital, any want your your even have the Thank think seeing come share you just guys your to -- last you but fitness. people are from there's just for along a spoke, then different time perspectives any with going we back fitness? you. also I Do learnings

Bahram Akradi

Simeon. Yeah,

the the transformation the just people at when smile common also home. workout be the are to quality the that Having that, a a only. the They're recognize with single every digital the on to maybe a see can and of ago, they're We use day love I workout. every same bigger to our -- there of get their back, smaller year-and-a-half said happy, contrary Omni. population are never it's community, to they're company think belief, They thrilled you population their they social think some coming is face. see back the day going it's I people so, and

classes they number there to we're increase of all have kinds our So high-quality. going everything want, of on-demand continue streamed classes, possibly the they to and

XX we're the in health have own We and with clubs due with developed our with doing amazing studios It's simultaneously teaching source, all and the to working classes health meditation, streamed. and talk. these the

Tom Bergmann

healthy on so life engine basically, behind terms been is in that we've it, we way comprehensive of like of back working mentioned the app I the the before, platform. So

to will the massive largely be trying in position digital. different purely business to that It's Omni. the it not take in sometimes mind, through XQ all, take channels. at in invest physical, a But not if in to is And purely and my

So we're positioned amazingly well.

Simeon Siegel

guys. much, the Best for of so luck Thanks Great. year ahead.

Tom Bergmann

you. Thank

Operator

Thank you.

is today coming Guggenheim. from question next Your from Heinbockel John

is now line Your live.

John Heinbockel

I -- ago? with particular, of of and up were, ramp trainers, that training. XXXX. thought, Hey, talked start recovery, about revenue closer your maybe you then And you've want personal thoughts the the And on to the part inside in right of six personal center. are that, particularly investments about roster to where as to those greater sort months Is they than cadence in-center I back of investments getting think

Bahram Akradi

have being think personal in the most last John, the to that's fronts business the the training XX strategy, myself clear clubs back a great, personal some question. wave impacted was is great we that dramatically That has training, the months. done. in heaviest being I And changed over and see

You past. exactly were same it doing as it the you way continue doing the in

through that with sending somebody and XX% hands-on that execution with distinction. okay, same XX%, and personal at We've comparable. to best, -- an -- those routine, follow training a be trainer in they're to the the app can it's in-person an training physical so is that be different numbers versus workout do be it I the are you a to have orbit, reinvented shouldn't a this has it path say in of value clear seen you think even be a your not there not going to

made We adaptations. have the all

personal not club, details to it clear all. -- in revenue beyond the at through I'm we a beyond year have Our plan, get where is the XXXX, per get intent going of to our was training

laid about be investing through substantially is year, have guys. it with training we we excuses for month-over-month would differentiation, to done? investors be over our Can able experience from position system in We plus amazing doing robust growing has right being been double-digit out. creating us today. all It be absolutely, is in are and heavily the set answer in achieve We've we going working I where that be growing it And an end up. of in this XX% new of number and imagination be, by talk to fast that of to and the from to and goal that PT a month see month all has the you are training wouldn't so going a give and the are revenue Does we amazing have it an Yes. need and is you any to it how customer growth guys now. XXXX

big and kids. we The least XXXX, surpass will spa which centers same the and two other tenants with is beyond already definitely ones, and 'XX are cafe spar, our above revenues program revenue

seeing hard October were And executive heavily, how get to these have and start reinvent you created, things get that taken every then company, them, And playing right imagined, the months going all XX over be, but to the a played XXXX based for on offense we month I'll into back going place for programs we've March focused Right for XX%. We night. see than and day it investing the it's space the now on to on till is -- having been fruit. that the paying them where last on and now, to would XXXX, focused team we're continue you back we XX to some the working to last been needed John, to to plus XX turning We've be growth rather take things to in start in work working month. have will defense to system, fruit in you to months that the literally we went what putting from these myself and XXXX. is defense been every comes the Then put a months. those and six again, of doing from So expectation -- our what this defense. improve months re-imagine debugging of not

-- able more the on also one very, So and we're we not next to looking for going more. mean, to are we get to what we amazing better for see to get the and I need you company significantly rapidly, this ever be XX% together guys to be all then accomplish we and best six this this very the company very, coming in all Tom? XXX% experience And homogeneously very plus. needs most need we XXX% really of did months. growth that bullish quarter-over-quarter deliver it to is XXXX, than

Tom Bergmann

Yeah.

on as to revenue to the on Just We're drive growth. absolutely said, order bit. revenue go growth offensive making -- investments, you're been John, to in a right. Bahram and we've accelerate add little

trainers at that XXXX -pandemic, part So Pre of is personal XXXX, at we where XXXX. were today.

in also training in flat made have robust schedules. And hit laid big got cost So Bahram We've that really volume class personal that base there. those the to grows, membership goals, we're fixed as our business the out we've now investing established. rebuilding growth revenue investments schedules. They

lot leverage as both well personal a So dues operations be as to our training start from of on base our overall grow as revenue we club our here, we'll able and getting expense.

John Heinbockel

capacity, on front. in follow-up, opening One the of your terms club right just quick

And it's people, do 'XX. anymore. can maybe estate the So be not What's I imagine, is you'd more year a so the or XX I year XX a hold was it If organization or like not lot Is than that the after a right? thought factor? -- to sale-leaseback, The real do or capital, XX to factor it can that? think you gaining gaining may

Bahram Akradi

Yeah. Look, here, expectation balance just me walk to I want through. let you the but in

Time Country in guys, that Club, very have all -- you we as are the developed, villages we Life developer Living, these Time we apartment one, combined Life Our mentioned Work, generally, generally, Athletic to not Time the of building. Life we

the the -- have an that disruptive that those transformations have. of industry However, results we we from some for is most

going are large are on conversations to athletic these many we urban of going developments. where basically kind of So be country live-work-play developing very these very, part as clubs

we're And months forms. get that least some six John, expectation per other so, here And that potentially future. happen in the other there is the for year dozen a going away our five, to think going us to locations good opportunities, pick to a three, is are then at next chance I clubs in opening gives four, going foreseeable forward on really

we but year per is be unchanged. Maybe expectation won't based on the be see, clubs will it opportunities more XX my it basically all of So, less.

John Heinbockel

you. Thank

Operator

Thank today question from you. The coming Brian from Stanley. Morgan is Harbour next

Your now line live. is

Brian Harbour

of up to Maybe XX your could that, locations, this guys. into us factor year? living remind co-work morning, Good on and work, expectation for locations you how follow the some

Tom Bergmann

John. XX, the Yeah. And count, club that that's XX

how the Lifetime we'll in be opening we additional addition Las year. In year Athletic this be that, or third work for pleased sorry, XX with to addition to in our Brian locations Lifetime opening this up Vegas. also Henderson, location work three is Country pure that, we'll actually performing Yeah, We'll Lifetime up second living or opening we're actually be Resorts. -- that our us. But about up speak Club is the very

Bahram Akradi

Living changer we at of concept, the going opportunities have faster start us fact is forward. June, But for in game have to to come all the most from living. them We'll that branded are and results gets we're going asset ground building because the amazing. into was we the buy that that Mostly that us. build the moving that part, to additional be have the either doing And and creating additional us in for hopefully and which up, really apartment by point, their the Again, income They on differentiation for one sometime land land providing that get additional the apartments we complete and additional we and which everything kinds of opportunity memberships, sites to is part us or Lifetime X. higher we they building where location June are we ecosystem. a [Indiscernible] the want fee, the economics designed we format, demonstrating Henderson to management it's our developers is a of using get that as the forward going looking it and provides this the And like the of we in the own, in we part the up. better be to or club Colorado, for rent, have ramp bring whole people

Brian Harbour

question sign-up. maybe kind on Okay, just And membership thanks. of another

nice this confidence above have few since kind for last in about over that? of XQ. You What seasonality been drawings talked the that pickup reinforces seen you and could seasonality? that that just there I'm the of be normal year expectations some weeks? quarter seen February Have on normal that things of second you've curious above kind [Indiscernible] of of Do think specifics you the the

Bahram Akradi

give I'll yes. answer robustly and of short I do is in -- yes, you answer is specifics terms can best the the the

Second net be done days. three every basically January, always in partially amazing. promotions that memberships every We quarter will two, we've with fact the gain significant

we quarter the But clubs in heavy, But prior in -- we January, I do Then net course, trends February, are in better us fourth we're January, athletic Omicron February the vaccine February. say and of mask so our And which January. before. gives very and have Basically, recover working be we on on doing basically and did that never heavy focus In make all very The promotions. all expecting we of will than very, we vaccines of everybody of coming saw any public. to January. December, the confidence We're expectation the no our are the we letting the and we not Delta much together of But fourth March, the job delivering mandate the than and shift. think are first, ended impact promising. up of more -- disruptive. quarter. Pretty then we most momentum pressures. having much has up good, extremely, than closures, actually the really days We're XX when to of better would we was for XXXX what So government it's under -- and would quality well. it's our which starting numbers extremely happened the very, very memberships to extremely than do going -- is January, delivering were promotional that country went less services by had we better programs are on

Tom Bergmann

Yeah. XX And had and we parts XX, clubs into under mask quarter XX add, fourth clubs mandate February. Brian, I would -- and the in just January of

and starting club we back, increase As usage we in week-over-week those about a swipe a week usage. saw in increase activity. And to club even saw get our we really in nice saw February last X%

the a February in of our we're here, March So back really two clubs. first in usage momentum half seeing of weeks the of and clearly, great

mandates came pack on March give here, you some on the the is Chicago, of us, examples, first mask on membership February XXth, then, here to weeks Just the in Chicago leading recovery. two since off

membership gives mask than these and second a as starting and of to second is lot quarter expect exceed I a better this what change be just net outperform February, the quarter February vaccine to XXXX quarter first well us than that mandates of the in did as compared passports January, was we'll as March can all the off to it we confidence well. gains as restrictions, year, see in actually that better So and membership

Bahram Akradi

much most we look the And Omicron, remainder I it think hard had I sure improved last want were if And people facts. on us, XX% damage of activity, the want trends in understood, all week-by-week had intervention and we the invention, the have just It's recovered. impact result into we states different is did by now the And our of masks, X%, itself. the ramping our of week say height since put traffic dues. to now, of the interventions do much Absolutely. XX, interesting swipe pandemic. just this with is Texas, XX% X%, Delta virus And this summer pressures are it, is higher as municipality virus is to XXX% we across at all any during could've business. drops restrictions whining, the COVID, drop very type traffic. day-by-day. government are been they our that about they've X% at of not those have was Do we're the just country, it seeing change was traffic they've of in that The closures government to i.e. you make a when and highest may months? vaccines, no With closures, into be that going revenues, traffic this with beginning of would've been seeing expect policies, to XX% no traffic XX%, basically those as their basically the data the maybe this put clubs told swipes that I as to day-to-day, to and let's the repeatedly state the I complaining. be on the

Brian Harbour

guys. you, Thank Great.

Operator

you. Thank

from is Brian Oppenheimer. Next question from coming Nagel

Your line is now live.

Brian Nagel

good Hi, morning.

Tom Bergmann

Good morning, Brian.

Brian Nagel

the of [Indiscernible] My bit questions are follow-up a [Indiscernible]. as to merging prior a Bahram, questions. you're of some together

was clubs, as pre-pandemic? [Indiscernible] different? it back was the they're return particularly now to abating. how getting different pressures the it returning, are members seeing utilizing are people you're mandates these what As anything there club, is or how -- it basically Is COVID

Bahram Akradi

we've as the time the and guys, makes home the at to imagine, this. in is number reason how don't changed, workout faces recognize been best happiest we you for match. I see, has to see take to would go no the something possibly life brings close workout Brian, in two, you while Number My same. -- nothing have me what focusing I to explain that one. my club want club, the mentioned the better, there their being People never seen. It's to my you on, is workout. not space is more of ever again, secluded. the And I home for I the and some equipment the they're have,

the East to this This travel you of over, see told around of in nobody what's Time to and coming outdoor cannot We do weekend social like Gables, other. come fabric you and other pools. to million there you And was country to were club, can as Time Coral indoor Havana have happening in an have any the Life create you XX and nearly path cannot give to from XX by try over athletic pickleball, working, go tennis, an country, and to Coral our members experience clubs note experience. there athletic and square no ability that guys you Gables, Coast see as Life has club. that. We feet and is and -- Nights. club this been country to I club the Syosset the people when beach we've the

to say, that have with EBITDA is look it of gotten I so every when bad Our they to is back, God, their want COVID, my they're the went But revenue total and in on your to butt oh let when is. say changed, ever conversation. thrilled. that we only thing other just and go from history the robust is the government time all very take the this so It the the of this stayed to not and there home, did we year waste the sit afraid routines only coupled you this how experience people with Meanwhile, was we decisions again COVID do company. so way. they crisis, not adding company, us come candid have crisis just been

You about something national this I really country category club our can. XXX,XXX other athletic multi-purpose to to examine that clubs path here transformation think killer, these club what's feet, large say, in gyms, really of taking what the opportunity. no big us Opportunity to complete square big, you from would for country this that gives

play pickleball can country. You the in anywhere

tennis play in You the can country. anywhere

You club the can beach anywhere a go in to country.

experience Time now, to and route is traveling locations their traffic, they're the right that of driving making amazing. our tells specific they're if they're common They're happening what's hotels Florida, up. and picked So the from us, sure going Life Midwest by having member’s

as season country we of an four So taken to have opportunity absolutely this the athletic execution. more highest club, homogenized every level experience to electric

members and have have improved, thrilled. concierge We really in Things member the so club are salespeople.

not as but physically, continued clubs, to We invest only programmable in have well. the

programs. different have we So

more have We options.

reaction far, are and is have either you the they floored we're us still that -- every so say way guys and to come And people amazed this. handled

more We more are thankful. They're grateful.

to see amazing. really say don't any is trends. I trends, I negative can So you, all see it's All I positive

Brian Nagel

Thank Congrats. color. the appreciate I you.

Bahram Akradi

you. Thank

Operator

is coming question next of Our Bank Ohmes today America. from Robby from

now is line live. Your

Robert Ohmes

so just been Good be helpful. I one guys. morning, really how recovering them Thanks have all Brian are much for a would maybe you of to other is few related just much Life people, as colors, the also just one are of this. in, that members they And where coming new then see to Time? totally follow-ups, follow-up new from? you members When these coming

the seeing incredible of miss after of shift kind because window it you So the had normal sounds are the Omicron. you seasonality that

that Omicron some that through move the fact ruined thinking As you the year, window January? new marketing initiatives are you the in offset of normal

Bahram Akradi

questions. good Both,

we and of rather advertising, that mention more or the -- are price memberships, ever advertising no dues. more in before more had results, of money average and Time. it to literally classes, spending on and to a members, Life programs, of easier, there? there creating dozen, more isn't like making in we to and is will at then experiences, than that your the coming specific of actually we was no have then would out had is back less least those question, things feel who it, need $XXX and people need XX%, create focusing fail our rejoin. now, they're seeing that It's getting So having why routines, of a single they for they do past $XX, come people our do a than of come, XX% been the because rolled there XX% period been question, People we're social and we giving up of put last get reasons marketing time them spending in. something it prior And changes. for point, club that initiatives the programs, a paying all And just to marketing then to XX% we're for It's several now at $XXX on in. we objectives membership amazing being year. and the Right or get they going sitting very, we're and right money this to point, we to this very brings all the have do out COVID, has a When just to complaints, goals typically, to membership. not in up are we're the But back more, to and most this months basically want and dropped people energy to we're need at natural Simply rolling to get some who because the come I our as out are have own number our half all best much? feel

does coming price So now focusing then because are Time working, price just all the once the so, experience, have churn to we power were strategies based all on and are they're the and direction robustly. working tremendous you of just working not our promotion the of the on you of underpriced price we customer robustly. so the right When rack matter. is are have doesn't the But matter. fact into rates pricing we here Life from because They're we go tremendous you so, Even that forward putting going now, to right where power. pricing benefit still from

Tom Bergmann

That Thank you. sounds great.

Operator

Dan is from Politzer coming Fargo. from today question Wells Next

line is live. now Your

Dan Politzer

and Bahram taking morning, good questions. Tom. for my Hey, Thanks

your hit recently So to opened some just centers. on of want

upside? cost to Coral is could Gables expect a you the still provide, a the Thanks. do this kind do or If X-year revenue similarly, talk that or especially of ramp there can living there, ones or be similar any maybe about color points data normalized [Indiscernible]. think in could you And maybe also you reach higher ramp of areas some you there the

Bahram Akradi

used to the talk years of this. less. three they'll XX capacity, and or four here I We short now, XX% about within We Right we of XX% years. time to their No, remember -- ramp I about I and sit get clubs to give months. I think getting from capacity think the talked definitely membership membership in Robinson

robust much of so our opened. -- That creating a are Club to we dollars time month. in faster people list more dues Frisco given prior systems in we a of had just will dues reach in club than million a any million X,XXX past. a for for Our That's a in the wait list wait club the dollars

So we in just amazing amazing, in are we opened club our seeing Chicago. River other in results North

If to recommend chance ever you you of clubs, get I strongly guys take go a to any the time. these guys

fabric, need amazing social level the way ramps for marketing They three closer But come the the going just XX% the the think will high-end sell to field, just athletic be work. capacity, life this naturally country coming. They're they club, to the short happen don't of the are anybody to in programs, years. all them. of it, they of all see they I You that don't need will any of club a distinction the in to

Dan Politzer

the -- through just that bit first about can versus helpful in in kind just I I your EBITDA mean, is talk And -- to somewhere commentary. guidance on little We're but Thanks. you were the mid-XXX or gave a of of my color. lot with based your guys bit going you it. just know you quarter, Thanks. out guidance, and prior takes puts the just for range to going of obviously, terms public? that your little when a Got a process maybe and maybe follow-up, softer coming around from

Tom Bergmann

the start. delay Yeah, and I'll a to really one Omicron pushing It's quarters. back Delta temporary just recovery two to due

working strategy execution Dan, we're trying we're do an to extremely everything hard. So a still from standpoint, standpoint, from

pre the so on As drive Bahram back -pandemic. the of to of this track half in get where be levels is to second we would said, thought back the goal year we revenue our get we can

throughout Omicron will the change take it's me all here execution, them to of - see to in initiatives on that and we've start strategy, to really memberships and year. no just really acceleration the new in investing second hold of as the the an then a rest impact, So in really Delta in quarter change been no we hold

Bahram Akradi

And from number where XXXX is that most the most jumping the is, driving, critical off the XXXX. number focus critical I am to

projections So I plans. had we meet will numbers the not sit to we beat in going December for our of went had going We're confident know do we still our when I guys. to all everything execution of we're until of XXXX, to you with for with pretty -- the

XXXX. numbers December beat for those of will We

ahead our as XX Now, robustly going the that into year, subscription if of after you month the you into repeat why revenue forward that's subscription. that will where Because have guys you to -- following And be, X/X wanted month. is itself of know, it important?

of strategy revenue. in the call, to all the XXX% earlier here is get to the XXXX the company XXX%, I focusing then then XXX%, of as So, revenue on, mentioned

higher, we obviously, are higher. to will, costs every and to on club we utilities have Now, is part bigger of that need payroll because is are have single used higher revenue, we than

So to revenue you'd really those. up have make to have a bigger for

clubs have opening that also you then And there. up. are get to plan solid a have We the additional

on and to hitting January, out quarter to shape -- to of the for of make if focus management we and to the didn't team the and when in recover that we and quarter will quarter. going time about. of it sure bent most no February. the almost Because to year, months as revenue to the impact Tom exist everybody we fourth every two, what by to, results. three get first the But We're that. the I, is fourth So there. brag fourth XXXX happened the get have for past make sure is rest it's recover We're December We is go going important nothing -- the is of thing

Tom Bergmann

we've Texas, of out. just type close Mountain the confidence it less and such ranges. Regions, of that Dan, as to And where February in in Heartland gives recovered mass of lot the where country parts a What really those XXX% as mandates seen restrictions us a to XX%

New as to parts we're same So the rapidly that we eased confidence gives York now and percentage and in the clubs as up and have Chicago, to recover coast, as that can. the those that here of us other February, going

Bahram Akradi

the are of at be least to to restrictive the expect by surpassing they just markets Tom those dozen us. And clubs, numbers like will least a XXXX that those are end have We said, were dues to March.

much you markets But as they steeper seeing more have this restrictive. just of well, it the recovery by go back, some with way. hopefully trend we're summer take come and on that those the as going It that So through longer. been mean markets don't now to back, doesn't

Dan Politzer

Understood, thanks so much. Appreciate it.

Operator

Thank you.

Baumgartner from Next John question Mizuho is from coming Securities.

now Your live. line is

John Baumgartner

it mean, Bahram, pricing sounds are an incrementally you as last about seeing what here you I sustaining power views not inflation How how elasticity, thinking sounds this acceleration Good the like, to wage thinking you're just are margin. were views, back point? inflations off, now or morning. broader October? your What maybe is how pressures? to in you Thanks for relative seeing specific tracking the labor How guess of let terms And then is around it, your is I at question. right power second, I that on relative and the availability in it, as first given be economy. just curious business stronger guess, the evolving me impacting of to but to I'm summer? more pricing at though the much it

Bahram Akradi

have I us. no concern power pricing for about

many food, the I in focused be to XXX% high-end is homogeneously, going no continually test, and But are We don't like and mentioned, the the underpriced moon. make etc. a some membership of you things too have as to to at child we in-centers delivery always decision super -- our we clubs. now that we from sending

If you're wrong, what happens? Nothing happens.

it something $X. down price work, more it $X should, you than you If back if doesn't you bring

care. feel to make we're like want the don't We cost the customer We the completely right as gone we nickel-and test don't them, food understands the what and have as you're We here. has advantage where see right every of they the but diming feel - gone all the of to find. has taking the up cost make of customer want the long dynamic we a care customer don't They payroll products don't giving them up, pricing like the and we're and them -- -- strategy service.

our our so As is far advantage, our loved team by brand members, as by members.

olds, the from have I our, McDonald’s work least for less else. Time, other would work We olds, for issues somebody want they Time to $X with than Life XX-year rather would on staffing much Life owner. hear work than XX-year People any for for or they business

have the least we amount So of problems.

staff. our the club issue or cannot to it's due We payroll but not But the of probably to overcome something not per lease monumental. month some it's $XX,XXX quality expect increased costs into see we because $XX,XXX brand. have we additionally, to a

before they we mentioned to we same these of membership where the the and like labor we the able the have to produce to did transformations we've what member basically transforming taken between what the that you, etc. the going have a at put With concierge. cost sales, catching be you PT front are fees, challenges we clubs time we versus our desk, place, card dues more revenue and by and that we in the the in margins, this that goods, we've right matching However, looking up to into services puts margin kind desk spend policy was are all in in to are that now the of seen credit member out we have despite in the it's

So feel really, we really good.

John Baumgartner

that. for thanks Well,

from light for prior bit of concentrated been seeing lines have you growth meeting forward? the needs, for programs your this about drives for programming on your kids it what And in extent little largest efforts at a you the offering cohorts, But your Aurora to I'm paybacks active terms think you announcement can members. the do program on of can and those more? What moving for along across you you curious in do the are discuss that opportunities attack think generations, growth relative program teens. your see being Just in membership margin consumer's regarding adults, demographic initiative? Thank you. enhance when demographic the where that largest the To existing

Bahram Akradi

a That's great question.

an our activity that is place this was taking in So clubs episodically.

SilverSneakers. is We those a insurance weren't of some plus. are these companies were We for with community this XX there the years paying a in the programs but relationships have and group, Silver&Fit, texture. age bringing who the a holistic pay companies companies XX and It's -- like or but that bunch them we doing with doing for, older, branded approach etc., a programming active

underutilized. that. that fully to deal, social in, then the we X, Club the hours to most of of So it kinds by coffee to X people ARORA where the the how and the branded. and we're pickleball from opportunity so an bringing social X, is to of coupled these population, We're have triple those activities hours X, specifically with club the to opportunity hours, those social and building them programming, program club is in swimming, really where different But bring is double being best [Indiscernible] this, of the all doing

the So talked to all working these like then the brand it went that on a half the months, what like, market dozen we've programs. see work this and serve they people, formulated research, out in what to we they for been don't

we here with uses everything the one programs to this achieved driving the we're the to we the So club, not we're opportunities so have make in the we objectives have. and we traffic increase revenue. subscription, it is swipes, the fixed other And traffic. want programs interfere and to but revenue, running swipes, does deliver is sure basically of and

it's And so fantastic. far, going

John Baumgartner

Great. Thanks Bahram. Thanks for time. Thanks, your Tom.

Operator

to reached session. end I'd management or you, of the comments. to question-and-answer turn for any floor Thank back like further we've our over closing

Bahram Akradi

all mentioned, as growth, the focus take and the to of focus, The past get significantly to which on we're is kind to support The year have. we the the of attention with will think appreciate this We remainder on revenue revenue you the I be the forward in grateful call, then next recovery. looking focus expectations guys way the line We're guys. we're I excited steep both to see and growth recover is on you not results of beyond.

So thank you, Tom.

Tom Bergmann

Thanks, everybody. you Have a Bye. day, great to talk soon.

Operator

teleconference you. and webcast. does conclude Thank That today's

for wonderful thank We and you participation at You a this day. have your disconnect your may today. line time

Life Time (LTH) 10 Mar 222021 Q4 Earnings call transcript