Life Time (LTH) 1 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Kenneth Cooper	executive
Erik Weaver	executive
Bahram Akradi	executive
Alexander Perry	analyst
Elise Louise Doss	analyst
John Heinbockel	analyst
Brian Nagel	analyst
Simeon Siegel	analyst
Owen Rickert	analyst
Alex Fuhrman	analyst
Logan Reich	analyst
Michael Samuel Hirsh	analyst
Chris Woronka	analyst
John Baumgartner	analyst

Call transcript

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

Operator

Good morning, and welcome to the Life Time Group Holdings, Inc. Q2 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ken Cooper, Investor Relations. Please go ahead.

Kenneth Cooper

Good morning, and thank you for joining us for the second quarter 2024 Life Time Group Holdings earnings conference call. Bahram Vice Chairman President, are Erik CEO; today Executive Weaver, CFO. me Akradi, and Founder, and With

debt During this that call, forward-looking which results involve release the differ statements to company will the number as to is this risks adjusted filed the comparable cash make directly diluted adjusted Relations comprehensive made issued ratio, reconciliations of X-K turn today. EBITDA, company flow. non-GAAP certain or and will debt free a that, Investor from the in most filings, Erik. net earnings SEC adjusted you on of adjusted call company's what the GAAP including our we measures with uncertainties EBITDA, income, our materially discussion the may There net of section website. With actual the risk refer a are which I'll and cause EPS, with discuss to financial SEC net those forward-looking statements factors morning, encouraged to the in review. The are measures, This included, along to and information over applicable, leverage company's when to

Erik Weaver

Ken, everyone. Thank good and you, morning,

the we being always, you with on appreciate us. As call

our you we details in quarter the We issued to share earnings this can be are pleased with results, full release which the second of found morning.

quarter from dues year second at from benefit in total at Average the the year For When X% second for to the memberships Net million the our compared $XXX, dues incentive the an as for of second consumer was per active was to to was to year. Revenue XX% XXX,XXX. adjusted last period prior year. of income membership with approximately as million as second fees in per compared XX% $XX $XXX quarter was the Adjusted quarter, margin XXX,XXX per to the Net the and an second compared last XXXX. up to $XX $XXX enrollment increased share increased continued year million quarter to And million, $XX earnings XX.X% of increased quarter prior in by quarter monthly versus compared XXXX. Diluted versus approximately of second by share Active quarter the membership our the higher on-hold end quarter versus $XX to ended we revenue cash the versus increase increase driven activity. million XX% revenue. $X.XX increased the second the from increased $XXX were dues million $X.XX quarter, increased increase in combined quarter Adjusted and memberships, memberships. total net quarter million, activities and $XXX XX% XX% of memberships XXXX. income quarter basis digital a $XXX.X increase the XXXX. EBITDA last XXX nearly XX% second second operating in provided EBITDA points an to quarter XXXX.

cash quarter. in result we our a strong positive performance, As flow financial the generated second free of

million in $XXX year second the flow compared period. $XXX in million In approximately was the $XX million proceeds prior addition, quarter the Free sale-leaseback net to received in quarter. we of cash second

of proceeds the we flow. of in from and free the land sale-leasebacks include reminder, a sale calculation As cash

the quarter note net reduced positive before prior of However, the X.Xx to cash proceeds. We adjusted quarter second approximately to period. leverage our $XX year sale-leasebacks we free X.Xx to million sale delivered in in or versus are debt we land pleased EBITDA that this flow

to turn objectives. I call pleased We our the are performance financial with over achieving Bahram. continued extremely we financial will and the expedited fashion our are which in now key

Bahram Akradi

over thank you the behalf entire past at would Financial your contribution team the Board Life and to promotion on like and all you, Chief Time, of I years the Officer. the Thank XX Directors congratulate to you On of Erik. well-deserved of for

earned friend. my have it, You certainly

results. our financial to Now

in our strategies ever Erik demonstrate that embraced best that May, our how Life just our The shared During strongly brand numbers seen. Day past over years. members the with we we and the Life shared X Investor have version priorities have and Time have into dramatic evolution you Time transformed our the

ourselves to For single one terms with we adjusted you growth, and free beginning our exceeded. At financial by path debt towards adjusted the this goals set less. leverage Every the leverage the QX, goal every achieved of membership we to the exceeded EPS. we of and will in a important We to and our end. schedule, months objective we revenue, EBITDA, EBITDA milestone we of our X of of ratio in or leverage flow, cash Xx X.Xx had upcoming of retention, for year, net equal year continue shared shared our quarters, ratio improving ahead

the also over free funding second quarter interest flow is objective growth. bottom by our while the quarters lightened. ahead we of cash shared and of the line top double expect We Again, adjusted burden accomplished positive this objective and improve our to grows digit and end as line free cash becoming our flow EBITDA

Our next objective credit to is near rating term. BB achieve the in a

in quarters. We the intend to the of also extend coming maturities debt our

and of total free flow cash our reduce expense, EBITDA We and our our and combination that interest cash our adjusted enhancing growth, further expect will BB the flow rating powerful positive revenue EPS.

the our last revenue $X.XX to in $X.XX the billion implying rate for midpoint revenue of release The billion morning, growth our XX.X% this low in of are a year, half of stated the versus on XXXX. second half year and up guidance back billion of end earnings year the end. raising billion $X.XX we this As to deliver range for will this the $X.XX high approximately in we revenue

million high XX.X% the would of year, growth relentless we the back $XXX delivering half second to the financial of rate investors. With to The XXXX. I million EBITDA best Life the our For to on for members the are implying experiences this $XXX.X adjusted thank of we year of adjusted in to million entire a EBITDA EBITDA, our $XXX.X deliver midpoint end to on great this half last low raised $XXX for million guidance dedicated end. up range to incredibly ready approximately your commitment take results want the members for that, questions. our and Time team adjusted now their versus

Operator

[Operator come question America. from of will Instructions] Perry Our first with Bank Alex

Alexander Perry

plans the ask the Congrats of contribution sort to strong I on for in-center that? in business a dollar Bahram, really the about Can wanted the here. business sort really in you quarter. what and the just just of strong talk drove strength quarter first was in-center are what

Bahram Akradi

on progress executing that we making had we're our stated on strategies before. the It's

So have to improve on room have the go, room we still some we progress. still to

are and others And Some clubs, before, mentioned exact the I've absolutely incredible. are play. really ahead the on are executing as numbers of they

our systems Some job opportunities significant where today still up set significant are and an clubs where and clubs have of with they are of lie the our how those kind getting opportunity still clubs those. basically to our can mediocre opportunity. And improve dashboards have amazing together they and some identify troubleshoot does team and

to progress still you room the out our the room the in still room have guys. So we cafe. in spa. training. have still We on business We personal we for We executing strategies continue have have in parts had still room many in of laid

Alexander Perry

like sort guide more third up helpful. follow then what's on is, you you looks guess than And the I the Is beat quarter? raised the EBITDA by driving carry it it Really momentum the you're of that? seeing based my Street. into

Erik Weaver

seeing. Alex, it's we're momentum that the exactly, Yes,

-- we're the noticed and seeing [Audio through you As flow a we're Gap] nice from that. new

from into Exactly. carry just QX QX. QX that's continuing to and So

Alexander Perry

of going Best forward. luck

Operator

from Our next Morgan Alexander question will Megan with Stanley. come

Elise Louise Doss

This Megan is Louise Alexander. Doss on for

margin, you You updated range implies the for the -- a and guide in XX% XX% something did just your did EBITDA year.

have given the quarter past a a in you XQ that said think with seasonally is the I perspective cost from margin pool. the lower associated

you if as than half? a the better So think half? second the XQ we about case, about can't the aware that anything be should XX% in of Was why there we unique second that's do

Erik Weaver

I'll This take is Erik. that.

things. was We lot a of strong PT we for really part had nice great PT, that. we So bistro was a a -- lot had -- saw again, -- very saw in QX we season. stretch growth of a a example,

us then as And got well. we lift some the So NCOs from that well. as helped

As you QX we seasonality into and business. we our for as go have know, typical QX, typical which is

higher margin we XX.X%. guide XX% as before, so we're than is And said XX.X% would at And we've you. to targeting

a couple those primary things it's were -- that's drivers. So of the there, but

Bahram Akradi

to growth absolutely Erik's the rather more the strong programs, feel great we And And X new next to margin to correct. properly. Look, to to like that to continue XX%, EBITDA about add for new beyond. we would I needs squeeze of the X continue accelerate all we customer And experience, company. initiatives developing the to future and sure the trying margin. invest years, company a hurting invest be start that the a the to in We need in years, bullets years is X statement XX% future have and make thinking new the ideas want of to that that, company is than and

than front to So are higher putting a of what we you want we guys not do in number to you. guide

to You what choice have a do. you want to do

Operator

Our Guggenheim. come Heinbockel with will next question from John

John Heinbockel

Bahram, a question.

those I wrong, to process? whether back, probably Now your takeovers, do reaccelerate almost over -- X have more, that maybe right, that you when think we next on that gotten and XX about where come get pipeline that do But the think stand And sort sheet openings stand to you've of want Where year. XX the to about ground-ups I there. a do XX get it balance you years? I'm the about the that or sale-leasebacks on and think the where growth, through unless efforts talk how it's it's we we

Bahram Akradi

decelerated how milestone very, becoming growth positive, club flow question, securing the a our cash. on achieve spend deliberately slow Yet -- all very at didn't cash decelerated great deliberately important we searching opportunities. expansion responsible in the John. It's we down and We to we new of

XX-plus I 'XX we large deliver format result, over pipeline, have 'XX a equivalent. significant of believe a a As and can we 'XX, where easily locations

we growth. club balance am so clubs from much we worried. least pipeline. continue all get, the we the coming double-digit launch as would momentum before, existing knew new I stated momentum but benefit -- have the had the tailwind have to deliver build in our We could initiatives, We and So to from and strategic we

absolutely deliver is the are bottom looking accelerate willing line are what all how top ever, and the are line our the is right line and will from and robust you So for. And we you guys that line now we we can top pipeline bottom we of doing I than to more stuff to. am guide type confident mapping out look, growth

the things in stages have as of so that's combination Time LT Time and the 'XX for 'XX, in Health all additional products, rollout the we in rollout all a as as the and of Life growth those pipeline MIORA. final And Partnerships, as well LTH, well unit initiatives including Life Digital, of

things pipeline All very out. additional roll But of those opportunities to is robust. our very, real estate are

John Heinbockel

to mean, mentioned significantly. Great. you does continue I I follow-up pretty to the look, to But in, in overhead you you mean right, And bit the that. them, things invest you -- Because -- sense, business. leverage talk to of right? can little maybe want can it a reinvest mean, as a you few right? a make about I But

the then pretty two, So going invest show center as But are do quite in the of to up are you want in And Erik, that to G&A? large. one, investment what of kind that, maybe ops is for opposed all to dollars program-wise? geography --

Bahram Akradi

Well, let's go through this.

think this transformation most is in era I AI. important the

is to an going ahead, you going you're not behind. cannot appropriately. area be Technology to be you're not If that invest ridiculously

we we of continue see terms open have minded where in to, to be technology. must to invest So we where

intentful to some that. at I'm that's So capital. And Time with always incremental very eat very, going Life

in to And First, to easier more that to everything. experience improve efficiencies the we the customer secondly, use AI easier so time time way the additional customer create to to AI transact, has run then needs engage. need we

actually Absolutely Do it? they very, a invest we're in want then So margin? initiatives, XX% we piece again, continue growth. over want to keep those to new area can to pigeonhole developing will a anybody Sure. to cost than the that guide one on. And ourselves before is dividend. we things Initially, just I'm continue keen eye going can new that's accelerators very turn -- of money going to more don't to pay Erik. do I to it not. Hopefully EBITDA And to into, second

Erik Weaver

to just John, there. And answer Yes. question your

mentioned As we initiatives, think digital, includes about retail, those it Bahram's cafe.

that come a expect performance. center We our lot through of see -- to

capital the be to of dilutive. invest but And not expect initiatives so, yes, dollars, we'll those we the margins accretive,

Bahram Akradi

money. So initially, some take they

have we come and cushion to basically to between to sure you just the Street deliver invest is we disappoint last by thing in enough have do want the -- order the in such future. saying, to make You're going back "Well, such

just are measured making We much are how we in guys. sure we you guide

Operator

Brian come next from will Nagel with question Our Oppenheimer.

Brian Nagel

Erik, congratulations.

quick number I'll you I'm of So and just together. a discuss really questions Erik, ask X Bahram -- opened just recently units. maybe new merging

those you're but question seeing I get opening particularly performance is if of question an as you're I I've the -- centers the this -- and before, Just asked these anything to want update. know centers? Then notable a second

results We're of follow today. analysts signs we As see in around, your not incremental weakness. we consumer, that keep looking clearly seeing

your a are of I the guess suggest you, for slower question anything behavior I trend Bahram, So you the seeing you to as anywhere? have consumer, watch

Erik Weaver

quite take I that. Actually, opposite. No, the can

we a As I bistro strong mentioned, very had season.

really our nutritionals, actually PT increase In there. we're stretch, seeing group, seeing we're there. lift an good So

So all seeing growth our in there as there. we significant in-center business look categories offerings, across almost we're

get So using we're the actually continue And doing experiencing quite we've things to those to members been all and part services. that's that the of the engagement opposite.

Bahram Akradi

Yes.

I your from headwinds in think are execution there opportunities a macroeconomic. are than more improving there

for So for as has I delivering looking an that what challenges. customer yes, plenty entity on deliverable, maybe there's of who the long customer to you're some customers base I particular as think full for willing the overall are think But the they're focused got for, that. pay universe

business. at all across We our are anywhere weakness any seeing not

Brian Nagel

on just there anything anything centers, the then -- new there? And notable Right.

Erik Weaver

very in Earlier expectations. my openings They're there, at well. or comment new performing Yes. are above club

-- mentioned that lift we're seeing I earlier. the So was of part had

So on track as expected.

Bahram Akradi

company That a market, get is clearly price I in than decade a what roll is Yes. function speaking, or They're the a the and how natural to delivering. When club. I thing had massive the we just of announce to we into to that repositioning actually us navigate one seen of this waitlist that ramping buildup to generally allows And fact club emphasize, brand delivers. wanting on faster, the so. everything a it it's on more we brand past have club just of our else people the as going we much out. that will to a join mean,

on club business, We're just We is the also are side seeing of the best the Dallas. the attracting other of most in the amazing brand Westlake talent. which a in reflection opening

XX have personal are fill lifestyle XXx now amazing The trainers. for are with need for we -- as positions. We launching about many demand these right positions virtually to we applicants -- as

we So it's best really the been. position have ever

Brian Nagel

again. Congrats

Operator

Our Siegel will Capital BMO with from next come Markets. Simeon question

Simeon Siegel

Nice job. And Erik. promotion, the on congrats

other the dues. congrats obviously, -- increased among So on achievements

how the been improvements on greater the increases been rates -- revenue have characterize You maybe it talking made upselling? about maybe the versus the maybe business like-for-like about And Could guys increased you was dues nice you you're at little was much have doing? then membership signing flow-through guys higher structural more of new you hear from about rate to in up members those that. bit speak -- comment a seeing or

Erik Weaver

rate. can I the Simeon, Yes. take

at roughly we So benefit seeing churn a I would members know, seeing seeing as say from and rate. new and club from -- half coming rack We're on openings. benefit some half. it's have nice you we're We're the nice some also the -- still higher

would part So of question if say structural... I you it, say that second roughly to can your the split Was I were XX-XX. And again? the

Simeon Siegel

Yes.

seeing greater you've -- improvements now You a revenues release line guys about the structural flow-through affected. from I'm had in on just business

to -- hear. maybe great So that's

on little more. elaborate So that bit maybe just a

Erik Weaver

Yes.

said great done we cost there. prior kind labor little our of of one earlier I a on creep job a of of of So saw especially, getting nice we've area just relative year-over-year, to bit We've the a earlier think we year. calls down that -- -- job in done

So that's our to obviously a direct line. flow-through bottom

managing just clubs, down only So bringing in our the prior but clubs. labor not we've getting job a of year, great hours, hours and mature real our summer versus done new those

Simeon Siegel

Nice of of for job, best luck year. guys, the rest the and

Operator

Rickert come Securities. Northland will Owen with question from next Our

Owen Rickert

stellar Congrats quarter on the here.

know Just even these forward? openings implemented with And given could initiation were us part Island. story demand I go location. the of mean, then of at more new waitlist club with But going quickly, higher Harbor fees the there's you a new are some the people extreme quickly, can XX,XXX bigger color levels they I at new clubs? Island going to for fees the fees? on on Harbor become provide

So going how does initiation that fees forward? influence

Bahram Akradi

still you a it look number, on Well, total a that revenue. number look, dues if miniscule always be will at

think we X.X%. really strategic when It's I than look at more nonevent. X%, So just numerical. It's revenue, is a is fee the membership initiation it

again, in emphasize are for Life indebted So really enough, years delivering the really that they requires can't on creating the Time believe best in how I of brand the entire you out experience has more customer of flow I'm focused space. building thoughtful you I then club. experience than They leisure demand. the team ever. managing XX do The is are my the delivering. being team get and brand And the on to experience. brand the about properly

where a delivering that status, one opportunity. that there the at demand demand the managing appreciating to waitlist. level get supply. for delivery. experiences is on a to of lead Then more our go That when means to creating to on almost than the the status and a customer clubs that locations supply So they're a they They're is that's becomes club their general can ultimate the like level actually get waitlist

to when see And fee make that So clubs a you in honing experience focused that club. to going really by waitlist deliver a you in to more they're to right we more right on achieve the we what sure experience not doing go we're initiation delivery. that are on can and larger applying

and all is. guide where have We opportunity dashboards, them is the here "Hey, your we on,

the this on is experience automatically part of part your doing doing do is aspects, great, in club." And clubs kids the will the your the doing the cafe program the doing You're delivering dues best PT spa great, of all deliver not great. will is who and that club is great, great, the

to then then more you you add have put get so that can demand, where level when in. -- you And can the that you

of for And post And proud team person last but results results maybe years, I it we X being much it's embracing X told no the numerical. These the No salespeople. promotions. the COVID. X our guys more launched the are sweat is again, with speak So of membership. strategies hard, that really this embracing really all is strategic team done my We've am for advertising company. in now idea of the There really is themselves. than sales best. the hard the for the through There's for you

Owen Rickert

guys. it. Love progress, to Great see

Operator

Our from Group. next Alex question will Fuhrman Craig-Hallum Capital come with

Alex Fuhrman

numbers really And shared couple potentially of more the the and have months counts. Curious, build how Bahram, court Day there over you could you see last some impressive Analyst continued courts? of ago couple big scale months? pickleball an participation about at to to pickleball opportunity a be of

Bahram Akradi

Yes.

We are of opportunity. continuous on of pickleball delivering path sort the on our

X they in next as to has building of XX with ball that to locations, years for most months. flaws problems continue the the frustrated wants X game. or when play, the player pickleball, adding one, the because kinds been last importantly, faster had like the basically that but the design the will ball, with inconsistent most and everybody people our have one play We get they break all then pickleball like filed a But just been itself. patent methodically got the the of ones they're inconsistent. you within X,XXX fast. They And level we a are where the to balls for stated courts higher courts super they of There get are

so looking looked at an in I balls, engineer, as why these the is So flawed it I and design. started at

with it, the about So is we to in we company, filed testing officially with and it, it basically ran tested designed it, played it, through folks CAD ball. made We X, get patent which with our the designed a took yesterday, X new the excited super through that.

think ultimate answer answer, I that thing. we have to the the

people to sport. as this most I sport I a going the potential be soon will that we're by an North I is be sport I play very America, played. to in so to got the sport first as of high Olympic Olympics. opportunity continue the in believe by where participated time most the think thought being in And next leader the I saw first

do pickleball partnerships, going in We into from pickleball in. to going sport to people support need we don't We're sports, the the everything so manufacturers. like will try other the So rest physical of We're pedal they other PPA this an everybody. their this get else. the actually going think manufacturers America injuries. these or we're else. is play with work want they to get to is a And support to off We're in. We're couch what folks arena beyond to that MLP do help all need activity, to who all to just even ball everybody bodies,

you prone some So pickleball. And do they if is X unfortunately, you sport all injuries. is you're to do of kind -- people, any do play all

can do to They is play nutrition, provides available for to can they for they full basically them. things exercise, Life to to also training, things need the those all all everyone. one-stop of the Pickleball, So do shop picture stretch Time from supplementary the in

Alex. pickleball We are to committed fully

Operator

from question with come next will Our Reich RBC Capital Markets. Logan

Logan Reich

on trying maybe every the you permanently. what and KPI. the on into better much was changed the this better expectations to the prepares of Erik of entire sort I And what through outperformance? to CFO to sort results quarter year just from sort And understand the last drove just trends alluded through that basically, to, on relative sort so I'm expected those to just guess quarter of continuing XXXX? quarter? more My Congrats than QX. was the of guys and question congrats you was moving on In role

Bahram Akradi

abundantly executed to we left So and focus on team. It opportunities clear our of we needed quarter, to look, some was table. yet that we the sort us first well

we the to All today our -- the the line department actually leads, Time call and to front we the than everybody at because is lead. work lead demonstrate They rather general, be has them general way Our nobody lead General manages. run Manager in in do our loop. the company Life

our So with their of lead run generals clubs bit autonomy. quite a

amazing We have most provided dashboards the are and corporate them them support from show to this so the them for maybe opportunities basically them break for we get and of where and were down them, they business them execution. We missing their the revolutionary kind their can symphony. opportunities system to execution then a help and then see like coach better able more show

Club the experiences be they Our our lead opportunity look generals, that and that absolutely as President well area forceful our and directors compromised. fact I embraced not our of Parham, cannot have the am to RVPs and as have very they very, the Operations, waste.

want but looking basically waste. don't you're for also you efficiencies, As to

as So X ago, able all Erik? versus I'm he's They turn through company's they to X a as react it guy he can as to were and within going to who responded tell you seeing, CFO, him, to everything a because years weeks. Erik numbers runs controller the the respond. what the goes ability X, literally over today

Erik Weaver

year-over-year labor cost on or falls addressed earlier comment and my progression Again, of part little we've we creep. saw kind of was that that that very nice In line. And in a QX, had the made. I had of we the quarter, to bottom first bit that course, of which, that, said Yes.

mentioned, we get flow through. dues As we more

we're is we planned, than expected. that had very we Another see continuing thing better to good very, better had retention than

retention. better got you've So

that that's on and from earlier, again, those members. We've we ops year-over-year. cafe, labor side. strong indicating great in-center And got look you demand of PT, for course, You've got the if are services. all some aquatics, then, products the as across all making consumer our and churn progress mentioned kids some up us really of on businesses, And

of Bahram symphony it's of that kind those -- mentioned. that all things it's So

Logan Reich

Got it. if And quick just then follow-up, Super I helpful. one could.

guys I I of sort sort those some maybe of those you are lagging just some of the in tackling the the If higher-end of or guess the improve to have think reinvest you the margins, performance. like sort stores adequately could to XX% being need guess, lower I upside to invest XX% of, like able there still assume guys if those I margins you those future above gap got while alluded you for Or growth? I'm get that you to that dollars? to any like on centers like average if additional think do. would would Is is you sort sort maybe margins centers. blocking maybe and to where do center

Bahram Akradi

right. All

and to a are So to that I'm want. We don't, a to put Yes, you. numbers adamant we those this companies little to go you XX% but Do can. not probably guys going high I answer margin? am able EBITDA differently to we very you going sure How do deliver pigeonholed certainty are I many you be while? guidance, make you delivering can to get pushing, to delivering into a you you guide a I basically than more that. you of margin can't start to we're that we very, once what than When higher business, until in want going mean Does give we have most again time your want to not guys. businesses, we a that time number. want like Definitely, it pushing to pushing, deliver we in? deteriorating

go tell because XX% line. it We're we're to going did quarter. the put going neck we on X you in to So not our to not

will Let's just enjoy time. some for more, XX% deliver the deliver we more. If we can

Operator

with Michael from Fargo. Wells come will question next Hirsch Our

Michael Samuel Hirsh

on to quarter, and Congrats Erik. the congratulations you,

And competitive the when increases, talk about you how fees wave Life also, this Time Given react your could recent pricing discount? environment at or time? enrollment competitors does

Erik Weaver

our to through. highest the We the X.X% not should end really on then on first on in really all. The that. the and don't their doing X% answer that, We second don't generally think X spends breadth most And focused future. offering at companies, our I'm about industry marketing, answer we're others what to others or your We're on leisure X% going or focus of your I at really aspects execution less doing. And just question are focus are lifestyle. of average, in we go the of expanding not focused part, concerned being of revenue all or for on question.

into We no concerned XXX% next my the personally Life for I the took It's us per with I any to dent have me, XXX XX are scale there decade adding of stated. -- could way group I type these or of the a of in XXX Time particular repeatedly put is or top having just not top facilities. Life and XX, members more party. If replicate anything year of team more. Time about and that left

technology, brand, year. billion a our XXX-plus Our impressions

We we customer than are on and rather what focused of our our still tons do new opportunities focused in better. inventing on There can programs really are on competitor. focused

Michael Samuel Hirsh

Yes. flow about your how And think sale as quick XXXX? environment a and we the leasebacks talk sale-leaseback you cash about into could follow-up, now? profile And should

Erik Weaver

and the that and as to company cost next we're else. rate a billion get with million goal sell leaseback market. mid-cap emphasized will another the directly of of get to a XQ. think down, the people this have debt million, able most credit, the to my biggest billion, also the a that beyond environment there a translate for we I on all be get growing, market we pursuing They'll $XX in that better almost the get same. which cost think get way we to cross we a $X really the been done and more call, is we to market could cap, we am I $X.X access I BB A, to importantly, side pretty much that, leaseback, both better in on capital, become robust then those sell-leaseback and And I us. our will can capital interest environment sale lower expect see confident secure the on $XX in will anything the way establish and credit, So here BB haven't

I 'XX incredibly So the think robust. more looks

intend basically the several at an rate playing at to fund of this the cap as owned the recycle part the in the our to as to growth We the is asset-light our assets right think We strategy prudent time, sale-leaseback real accelerated have strategy. full much estate company. years, next to was It's I of the the debt intention sale-leaseback. do more to Xx right did EBITDA. to just the of achieve okay? timing as year So We basically,

nonevent is other The as we rent, knew EBITDA. incremental performance and of nice thing, guys noticed, have that we to our you it's mentioned over relative the

the EBITDA later, $X to substantially. debt more sale-leaseback So in EBITDA, ultimately, to billion, to free and get goal are sooner our that coming next this is proceeds than exactly X.Xx $X.X to Again, so. largely want to billion lower flow cash then debt X hopefully, to positive, And just puts from the where we or be us or in or cap X.Xx market less growing. months

sale-leaseback going basically, rates those things have forward. of the favor best all So in up Time's to stack Life

Operator

from come will Woronka Chris question with Deutsche Our next Bank.

Chris Woronka

of stuff the stool. of with articulated good a lot of pretty you've growth trends, plan a legs a going lot lot to and positive clearly got a for on, So

question Do the the corporate really think I double-digit bit is a bottom of bandwidth -- level, but have the center And down internally kind these bandwidth level, as you've line, too. do talked the because at keeping little including in to Analyst about of all kind have juggle things So you kind grow, how you Day a past, at the top maybe line the of at the growth. do this? you at

Bahram Akradi

Great The absolutely. answer is question.

Life on. impressed acting to more have initiatives The best best reports. entirely teamwork alignment, everyone Our XX-some I direct we from years. seen team to we Time more in -- Everybody ever fully on self-centered am I've frontline and the the are with deliver the is nobody's as members. other that indebted I still significantly never my can been and X, adding

of So these X it. And work who know I I with do. concern on. love they us. guys always banks, And don't I about me I your for all what I have I'm from like love never I'm it.

on, is -- my phone of Sunday we everybody are rest that's my a it's a but Saturday as a is the we just -- I the me, team, afternoon, isn't team a not working I up or together. pick so get member all answer team. Everybody work don't been friend. night, call And there give way either better and will never the on And that a as it's

Operator

with next Our from question John Securities. Baumgartner will Mizuho come

John Baumgartner

haven't how programming guess, a First there for pretty increasingly some last programming sort I'm utilization do incremental that I how and governs and from where Just at watermark sort ROI you've this off, the and engagement high incremental the to curious thinking But for been Bahram, curious historical thinking about coincidently and that a ceiling utilization for you investments. recovered there with evolving here years. how point? investments decisions about of for member at tap That's point? see you're couple programming you utilization moderates engagement member of back here? Is from specifically made I you're the out Is guess, strongly, yet in how of engagement you your utilization.

Bahram Akradi

question, It's of all and a core the great programming. it's

a place, to connectivity knowing all member guiding it deliver Yes, club, their use some member Again, our if -- of get been to the which the amazing them us, the customer. on as experiences programs, they incredible the your they opportunities to we and like benefit are they demand to So fitness, opportunities goal it's L.AI.C, membership, a point the is are the of basically things. again, how the we have Life members, know, for their the down. AI experiences, more there as to is in incremental on beach have also It's in little imagination to the time. the basically, come social beach just with down, you the that's group help a of the their events engagement working understanding of these from as constantly clubs. It's Time it's companion more launching maximize is to we retention, network? places, members. can engagement little all of customers have all improve we're weeks go them for of bit to which for we reimagination the members. events enhance have down, And the And to people the increase we a frustrated member guys and gym beta final We've quite their view a in from those view. And better continue weightless, that mode the everything creates find to it's in and more results for when is engage, we what to best clubs, amazing churn their have social opportunities good because things long more our those how should it's point makes the it's just term workout. But constant

we I to is it. it. today better wouldn't say numbers fully we great. engaged So incredibly on have are are in to say position this are But we We're this. never the than get any going

engagement ever years but So what in amazing better. seen like don't make go to do we'd the we they need to improve, see in is industry. for them this I've can this to But

John Baumgartner

still build-outs? leveraging follow-up there all X the on couple that leverage moving the or sort been the and pretty parts general progress you've a you efficiency programming of Erik, what overheads on and I'm administrative of years for operating The with in around line. has going the the in so. for Excellent. how And can with And consistent curious past years get had forward outlet specifically much line last G&A and the the

Erik Weaver

a it's leverage. We've seen good seen question. leverage. We've great Yes,

continue we'll as think leverage continue see to to we some grow. I

we'll We down see we a that little need as will bit as to continue. I But make some lever to. would that expect continue investments we

Operator

for This like back over concludes turn any our the closing conference to remarks. question-and-answer session. Akradi I'd to Bahram

Bahram Akradi

just one team. That's passionate, credit goes make to the leave want and credit most sure Life I me. and call, appreciative team much Time's is passion. vision the impressed for entire before comment definitely so this am Life quick on Time I the not with the right. All I love incredible due. by the It's where to have I executing

you So guys. thanks all all my to of Thanks team. of

Operator

presentation. now The Thank concluded. you for has today's conference attending

You now may disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.