Exhibit 99.1
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Life Time Reports Third Quarter Fiscal 2022 Financial Results
CHANHASSEN, Minn. (November 9, 2022) – Life Time Group Holdings, Inc. (“Life Time,” “we,” “our,” “us,” or the “Company”) (NYSE: LTH) today announced its financial results for the fiscal third quarter ended September 30, 2022.
Bahram Akradi, Founder, Chairman and CEO, stated: “We are pleased with our continued progress this quarter. While the macro-economic background remains a headwind, our strategy of playing offense to enhance the member experience and drive our revenue recovery and growth is working, and we are swiftly turning our focus to margin expansion. We see significant opportunities to continue improving our margins by capturing operating leverage as we continue to grow revenue, optimizing the execution of our key strategic initiatives, continuing our price optimization and driving efficiencies across our club and corporate structure. Additionally, our recently opened athletic resorts are performing well and we are excited to conclude 2022 with a total of 12 new openings with 11 more to come in 2023.”
Third Quarter 2022 Results and Prior Year Comparisons
•Total revenue increased 28.9% to $496.4 million from $385.0 million.
•Comparable center sales increased 25.6%.
•Center memberships totaled 728,729 on September 30, 2022, an increase of 9.0% from 668,310 on September 30, 2021, and up approximately 4,000 from June 30, 2022.
•Net income was $24.7 million and included a tax-effected gain of $42.7 million from sale-leasebacks, and $5.1 million in tax-effected non-cash share-based compensation expense.
•Adjusted EBITDA increased 50.9% to $71.0 million from $47.0 million.
Nine-Month 2022 Results and Prior Year Comparisons
•Total revenue increased 41.0% to $1.350 billion from $957.5 million.
•Comparable center sales increased 35.7%.
•Net loss was $15.5 million and included a tax-effected gain of $80.3 million from sale-leasebacks, and $27.2 million in tax-effected non-cash share-based compensation expense.
•Adjusted EBITDA increased 441.2% to $174.7 million from $32.3 million.
New Center Openings
•The Company opened three new centers in the third quarter of 2022 and operated a total of 156 centers as of September 30, 2022.
•The Company has opened five new centers in the nine-month period ending September 30, 2022, and plans to open seven new centers in the fourth quarter, for a total of 12 new centers in 2022.
•The Company plans to open 11 new centers in 2023.
Cash Flow Highlights
•As of September 30, 2022, the Company had total cash and cash equivalents of $107.1 million and no outstanding borrowings under its $475 million revolving credit facility.
•Net cash provided by (used in) operating activities for the three-month and nine-month periods ended September 30, 2022, was $45.0 million and $125.3 million, respectively, compared to $(2.3) million and $(15.3) million in the same prior-year periods, respectively.
•Free cash flow before growth capital expenditures for the three-month and nine-month periods ended September 30, 2022, was $7.4 million and $5.5 million, respectively, compared to $(38.6) million and $(99.5) million in the same prior-year periods, respectively.


Sale-Leasebacks
•During the third quarter 2022, the Company completed sale-leaseback transactions on five properties for gross proceeds of $200 million.
•For the nine-month period ending September 30, 2022, aggregate proceeds from sale-leaseback transactions were approximately $375 million.
•The Company is exploring alternative sale-leaseback structures to optimize our financing cost and preserve the utilization of our net operating losses to offset our growing future taxable income.

Outlook
•For the fourth quarter ending December 31, 2022, the Company is projecting revenue, net loss, and Adjusted EBITDA to be in the ranges of $460 to $490 million, $(10) to $(2) million, and $80 to $90 million, respectively.
•For the full year ending December 31, 2022, the Company is projecting revenue, net loss, and Adjusted EBITDA to be in the ranges of $1.81 to $1.84 billion, $(26) to $(17) million, and $255 to $265 million, respectively.

Conference Call Details
A conference call to discuss the Company’s third quarter financial results is scheduled for today, November 9, 2022, at 8:30 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 877-451-6152 (international callers should dial 1-201-389-0879) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://ir.lifetime.life/. A recorded replay of the conference call will be available after the conclusion of the call and will be available for a period of time online at https://ir.lifetime.life/.
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About Life Time®
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of nearly 160 athletic country clubs across the United States and Canada. The Company’s healthy way of life communities address all aspects of healthy living, healthy aging and healthy entertainment for those 90 days to 90+ years with integrity and respect for everyone. With a team of more than 30,000, Life Time is committed to providing the best programs and experiences through its athletic country clubs, iconic athletic events and via a complementary and comprehensive digital platform.
Use of Non-GAAP Financial Measures and Key Performance Indicators
This press release includes certain financial measures that are not presented in accordance with the generally accepted accounting principles in the United States (“GAAP”), including Adjusted EBITDA and free cash flow before growth capital expenditures. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should be considered in addition to, and not as a substitute for or superior to, net income (loss) as a measure of financial performance or any other performance measure derived in accordance with GAAP, and should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, these non-GAAP financial measures should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. The reconciliations of the Company’s non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
Adjusted EBITDA is defined as net income (loss) before interest expense, net, provision for (benefit from) income taxes and depreciation and amortization, excluding the impact of share-based compensation expense, (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of the Company’s ongoing operations, including incremental costs related to COVID-19. Free cash flow before growth capital expenditures is defined as net cash provided by (used in) operating activities less center maintenance capital expenditures and corporate capital expenditures.
The Company presents these non-GAAP financial measures because management believes that these measures assist investors and analysts in comparing the Company’s operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company’s ongoing operating performance. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the non-GAAP financial measures, investors should be aware that, in the future, the Company may incur expenses that are the same as or similar to some of the adjustments in the Company’s presentation of its non-GAAP financial measures. There can be no assurance that the Company will not modify the presentation of non-GAAP financial measures in future periods, and any such modification may be material. In addition, the Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other companies in the Company’s industry or across different industries.


The non-GAAP financial measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company’s results as reported under GAAP.
The Company includes a center, for comparable center sales purposes, beginning on the first day of the 13th full calendar month of the center’s operation, in order to assess the center’s growth rate after one year of operation.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company’s plans, strategies and prospects, both business and financial, including its financial outlook for the fourth quarter and fiscal year 2022, opportunities for growth and margin expansion, consumer demand, industry and economic trends, expected number of new center openings and successful signings and closings of sale-leaseback transactions (including the amount, pricing and timing thereof). These statements are based on the beliefs and assumptions of the Company’s management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company’s possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and competitive and economic environment, risks relating to our brand, risks relating to the growth of our business, risks relating to our technological operations, risks relating to our capital structure, risks relating to our human capital, risks relating to legal compliance and risk management, risks relating to our financial performance and risks relating to ownership of our common stock and the other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2022 (File No. 001-40887), as such factors may be updated from time to time in the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Investors
John Rouleau, ICR // investorrelations@lifetime.life
Media
Jason Thunstrom, Life Time Corporate Communications // jthunstrom@lifetime.life or 952-229-7435


LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Revenue:
Center revenue$479,995 $372,000 $1,307,498 $933,690 
Other revenue16,386 13,040 42,404 23,835 
Total revenue496,381 385,040 1,349,902 957,525 
Operating expenses:
Center operations295,253 231,996 814,383 625,322 
Rent63,213 52,513 179,166 154,552 
General, administrative and marketing57,139 45,304 175,650 126,896 
Depreciation and amortization56,400 57,977 171,680 177,005 
Other operating (income) expense(31,358)14,796 (56,605)30,660 
Total operating expenses440,647 402,586 1,284,274 1,114,435 
Income (loss) from operations55,734 (17,546)65,628 (156,910)
Other (expense) income:
Interest expense, net of interest income(27,696)(39,849)(84,732)(176,144)
Equity in earnings (loss) of affiliate95 (28)129 (412)
Total other expense(27,601)(39,877)(84,603)(176,556)
Income (loss) before income taxes28,133 (57,423)(18,975)(333,466)
Provision for (benefit from) income taxes3,401 (11,981)(3,456)(58,867)
Net income (loss)$24,732 $(45,442)$(15,519)$(274,599)
Income (loss) per common share:
Basic$0.13 $(0.36)$(0.08)$(2.00)
Diluted$0.12 $(0.36)$(0.08)$(2.00)
Weighted-average common shares outstanding:
Basic$193,918 $145,196 $193,364 $145,196 
Diluted198,381 145,196 193,364 145,196 




LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
September 30,
2022		December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents$107,069 $31,637 
Accounts receivable, net12,281 6,464 
Center operating supplies and inventories44,084 41,007 
Prepaid expenses and other current assets44,829 48,883 
Income tax receivable— 3,533 
Total current assets208,263 131,524 
Property and equipment, net2,772,385 2,791,464 
Goodwill1,233,176 1,233,176 
Operating lease right-of-use assets2,148,828 1,864,528 
Intangible assets, net173,492 174,241 
Other assets65,403 61,742 
Total assets$6,601,547 $6,256,675 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$72,951 $71,308 
Construction accounts payable118,671 83,311 
Deferred revenue32,296 33,871 
Accrued expenses and other current liabilities167,457 147,920 
Current maturities of debt15,046 23,527 
Current maturities of operating lease liabilities50,746 46,315 
Total current liabilities457,167 406,252 
Long-term debt, net of current portion1,775,248 1,775,719 
Operating lease liabilities, net of current portion2,206,753 1,909,883 
Deferred income taxes43,941 55,213 
Other liabilities13,265 18,216 
Total liabilities4,496,374 4,165,283 
Stockholders’ equity:
Common stock, $0.01 par value per share; 500,000 shares authorized; 193,991 and 193,060 shares issued and outstanding, respectively.
1,940 1,931 
Additional paid-in capital2,780,190 2,743,560 
Accumulated deficit(666,602)(651,083)
Accumulated other comprehensive loss(10,355)(3,016)
Total stockholders’ equity2,105,173 2,091,392 
Total liabilities and stockholders’ equity$6,601,547 $6,256,675 



LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
20222021
Cash flows from operating activities:
Net loss$(15,519)$(274,599)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization171,680 177,005 
Deferred income taxes(10,957)(63,467)
Share-based compensation33,214 6,959 
Non-cash rent expense27,304 11,546 
Impairment charges associated with long-lived assets153 2,455 
(Gain) loss on disposal of property and equipment, net(98,498)3,515 
Loss on debt extinguishment— 40,993 
Write-off of discounts and debt issuance costs— 18,325 
Amortization of debt discounts and issuance costs5,898 7,761 
Changes in operating assets and liabilities14,055 57,614 
Other(2,010)(3,429)
Net cash provided by (used in) operating activities125,320 (15,322)
Cash flows from investing activities:
Capital expenditures(409,946)(201,741)
Acquisitions, net of cash acquired— (9,139)
Proceeds from sale-leaseback transactions373,451 73,981 
Other(985)(1,291)
Net cash used in investing activities(37,480)(138,190)
Cash flows from financing activities:
Proceeds from borrowings8,657 1,907,577 
Repayments of debt(21,993)(1,602,164)
Proceeds from revolving credit facility710,000 134,000 
Repayments of revolving credit facility(710,000)(228,000)
Repayments of finance lease liabilities(1,043)(1,133)
Increase in debt discounts and issuance costs(43)(45,151)
Proceeds from stock option exercises3,190 — 
Other(476)— 
Net cash (used in) provided by financing activities(11,708)165,129 
Effect of exchange rates on cash and cash equivalents(700)15 
Increase in cash and cash equivalents75,432 11,632 
Cash and cash equivalents—beginning of period31,637 33,195 
Cash and cash equivalents—end of period$107,069 $44,827 


Non-GAAP Measurements and Key Performance Indicators
See “Use of Non-GAAP Financial Measures and Key Performance Indicators” for a discussion of the Non-GAAP financial measures reconciled below.
Key Performance Indicators
($ in thousands, except for Average Center revenue per center membership)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Membership Data
Center memberships728,729 668,310 728,729 668,310 
Digital On-hold memberships47,273 85,045 47,273 85,045 
Total memberships776,002 753,355 776,002 753,355 
Revenue Data
Membership dues and enrollment fees69.9 %70.2 %70.1 %70.0 %
In-center revenue30.1 %29.8 %29.9 %30.0 %
Total Center revenue100.0 %100.0 %100.0 %100.0 %
Membership dues and enrollment fees$335,717$261,033$916,895$653,584 
In-center revenue144,278110,967390,603280,106 
Total Center revenue$479,995$372,000$1,307,498$933,690 
Average Center revenue per center membership (1)
$660 $555 $1,885 $1,554 
Comparable center sales (2)
25.6 %58.7 %35.7 %29.9 %
Center Data
Net new center openings (3)
3256 
Total centers (end of period) (3)
156155156155 
Total center square footage (end of period) (4)
15,600,00015,300,00015,600,00015,300,000 
GAAP and Non-GAAP Financial Measures
Net income (loss)$24,732 $(45,442)$(15,519)$(274,599)
Net income (loss) margin (5)
5.0 %(11.8)%(1.1)%(28.7)%
Adjusted EBITDA (6)
$70,975 $47,031 $174,697 $32,277 
Adjusted EBITDA margin (6)
14.3 %12.2 %12.9 %3.4 %
Center operations expense$295,253 $231,996 $814,383 $625,322 
Pre-opening expenses (7)
$5,350 $633 $9,296 $5,304 
Rent$63,213 $52,513 $179,166 $154,552 
Non-cash rent expense (open properties) (8)
$6,762 $2,161 $14,850 $3,824 
Non-cash rent expense (properties under development) (8)
$4,907 $3,166 $12,454 $7,722 
Net cash provided by (used in) operating activities$44,995 $(2,283)$125,320 $(15,322)
Free cash flow before growth capital expenditures (9)
$7,359 $(38,633)$5,506 $(99,458)
(1)    We define Average Center revenue per center membership as Center revenue less Digital On-hold revenue, divided by the average number of Center memberships for the period, where the average number of Center memberships for the period is an average derived from dividing the sum of the total Center memberships outstanding at the beginning of the period and at the end of each month during the period by one plus the number of months in each period.


(2)    We measure the results of our centers based on how long each center has been open as of the most recent measurement period. We include a center, for comparable center sales purposes, beginning on the first day of the 13th full calendar month of the center’s operation, in order to assess the center’s growth rate after one year of operation.
(3)    Net new center openings are the number of centers that opened for the first time to members during the period, less any centers that closed during the period. Total centers (end of period) is the number of centers operational as of the last day of the period. As of September 30, 2022, all of our 156 centers were open.
(4)    Total center square footage (end of period) reflects the aggregate fitness square footage, which we use as a metric for evaluating the efficiencies of a center as of the end of the period. The square footage figures exclude areas used for tennis courts, outdoor swimming pools, outdoor play areas and stand-alone Work, Sport and Swim locations. These figures are approximations.
(5)    Net income (loss) margin is calculated as net income (loss) divided by total revenue.
(6)    We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income (loss) before interest expense, net, provision for (benefit from) income taxes and depreciation and amortization, excluding the impact of share-based compensation expense, (gain) loss on sale-leaseback transactions, capital transaction costs, legal settlements, asset impairment, severance and other items that are not indicative of our ongoing operations, including incremental costs related to COVID-19.
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.
The following table provides a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Net income (loss)$24,732 $(45,442)$(15,519)$(274,599)
Interest expense, net of interest income (a)
27,696 39,849 84,732 176,144 
Provision for (benefit from) income taxes3,401 (11,981)(3,456)(58,867)
Depreciation and amortization56,400 57,977 171,680 177,005 
Share-based compensation expense (b)
5,803 4,078 33,214 6,959 
COVID-19 related expenses (credits) (c)
354 (221)937 (410)
(Gain) loss on sale-leaseback transactions (d)
(48,583)2,227 (98,167)3,057 
Capital transaction costs (e)
— 588 255 588 
Legal settlements (f)
— (44)— (44)
Other (g)
1,172 — 1,021 2,444 
Adjusted EBITDA$70,975 $47,031 $174,697 $32,277 
(a)    For the nine months ended September 30, 2021, we incurred a non-cash expense of $41.0 million related to the extinguishment of a related party secured loan and $18.3 million related to the write-off of debt discounts and issuances costs in connection with the extinguishment of our prior term loan facility, senior unsecured notes and the related party secured loan.
(b)    Share-based compensation expense recognized during the three and nine months ended September 30, 2022, is associated with stock options, restricted stock and restricted stock units. Share-based compensation expense recognized during the three and nine months ended September 30, 2021, was associated with restricted stock and restricted stock units. No share-based compensation expense was recognized during the three and nine months ended September 30, 2021, related to stock options because the vesting and exercisability of stock options granted by the Company up through September 30, 2021, was contingent upon the occurrence of a change of control or an initial public offering.
(c)    Represents the incremental net expenses (credits) we recognized related to the COVID-19 pandemic. We adjust for these costs as they do not represent costs associated with our normal ongoing operations. We believe that adjusting for these costs provides a more accurate and consistent representation of our actual operating performance from period to period. For the three and nine months ended September 30, 2022, COVID-19 related expenses primarily consisted of legal-related costs in pursuit of our claim against Zurich. For the three and nine months ended September 30, 2021, COVID-19 related credits primarily consisted of the recovery of certain qualifying expenses under the CARES Act, partially offset by COVID-19 legal-related costs in pursuit of our claim against Zurich.
(d)    We adjust for the impact of gains or losses on the sale-leaseback of our properties as they do not reflect costs associated with our ongoing operations.
(e)    Represents one-time costs related to capital transactions, including debt and equity offerings that are non-recurring in nature but excluding direct costs related to the IPO that were netted against the proceeds of the IPO.


(f)    We adjust for the impact of large class action and unusual legal settlements paid or recoveries received. These are non-recurring in nature and do not reflect costs associated with our normal ongoing operations.
(g)    Includes costs associated with incremental expenses related to a winter storm that resulted in historical freezing temperatures affecting our Texas region in 2021, severance and other transactions which are unusual and non-recurring in nature.
(7)    Represents non-capital expenditures associated with opening new centers which are incurred prior to the commencement of a new center opening. The number of centers under construction or development, the types of centers and our costs associated with any particular center opening can vary significantly from period to period.
(8)    Reflects the non-cash portion of our annual GAAP operating lease expense that is greater or less than the cash operating lease payments. Non-cash rent expense for our open properties represents non-cash expense associated with properties that were operating at the end of each period presented. Non-cash rent expense for our properties under development represents non-cash expense associated with properties that are still under development at the end of each period presented.
(9)    Free cash flow before growth capital expenditures, a non-GAAP financial measure, is calculated as net cash provided by (used in) operating activities less center maintenance capital expenditures and corporate capital expenditures.
The following table provides a reconciliation from net cash provided by (used in) operating activities to free cash flow before growth capital expenditures (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Net cash provided by (used in) operating activities$44,995 $(2,283)$125,320 $(15,322)
Center maintenance capital expenditures(22,462)(18,078)(57,915)(43,045)
Corporate capital expenditures(15,174)(18,272)(61,899)(41,091)
Free cash flow before growth capital expenditures$7,359 $(38,633)$5,506 $(99,458)

Capital Expenditures Summary
($ in thousands)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Growth capital expenditures, net of construction reimbursements (1)
$119,670 $43,418 $290,132 $117,605 
Center maintenance capital expenditures22,462 18,078 57,915 43,045 
Corporate capital expenditures15,174 18,272 61,899 41,091 
Total capital expenditures$157,306 $79,768 $409,946 $201,741 
(1)    Growth capital expenditures include new center land and construction, growth initiatives, major remodels of acquired centers, and the purchase of previously leased centers.
Proceeds from Sale-Leaseback Transactions
($ in thousands)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Proceeds from sale-leaseback transactions$199,205 $40,048 $373,451 $73,981 



Reconciliation of Net Loss to Adjusted EBITDA Guidance for Fourth Quarter and Fiscal Year 2022
($ in millions)
(Unaudited)
Three Months EndedTwelve Months Ended
December 31, 2022December 31, 2022
Net loss$(10) - $(2)$(26) - $(17)
Interest expense, net of interest income  29 - 28114 - 113
Provision for (benefit from) income taxes(2) - 0(5) - (4)
Depreciation and amortization  57 - 58229 - 230
Share-based compensation expense
  6 -’ 6
39 - 39
COVID-19 related expenses  0 - 0
1 -’ 1
Gain on sale-leaseback transactions  0 - 0(98) - (98)
Other non-recurring expenses  0 - 0
1 -’ 1
Adjusted EBITDA  $80 - $90$255 - $265