Annual report pursuant to Section 13 and 15(d)

Condensed Financial Information of Registrant (Parent Company Only)

v3.22.0.1
Condensed Financial Information of Registrant (Parent Company Only)
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Registrant (Parent Company Only) Condensed Financial Information of Registrant (Parent Company Only)
Life Time Group Holdings, Inc. is a holding company with no material operations of its own that conducts substantially all of its activities through its subsidiaries. Life Time Group Holdings, Inc. has no cash and, as a result, all expenditures and obligations of the Company are allocated to and paid by its subsidiaries. Life Time, Inc. is the borrower under our senior secured credit facility and the indentures governing our Secured Notes and our Unsecured Notes, the terms and conditions of which limit Life Time, Inc.’s ability to declare dividends or make any payment on equity to, directly or indirectly, fund a dividend or other distribution to Life Time Group Holdings, Inc. in connection with those borrowings. Dividends, redemptions and other payments on equity (restricted payments) are limited to those permitted under the senior secured credit facility and the indentures governing our Secured Notes and Unsecured Notes. Due to the aforementioned restrictions, substantially all of the net assets of our subsidiaries are restricted. For information regarding our senior secured credit facility, Secured Notes and Unsecured Notes, see Note 8, Debt.
The following condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, our investment in our subsidiaries is presented under the equity method of accounting. During the year ended December 31, 2021, we recognized share-based compensation expense related to stock options, restricted stock and restricted stock units of $334.3 million, of which $12.9 million, $316.8 million and $4.6 million is included in Center operations, General, administrative and marketing and Other operating, respectively, in our parent-only condensed statement of operations. Also during the year ended December 31, 2021, we recognized a $41.0 million debt extinguishment loss related to the conversion of the Related Party Secured Loan to Series A Preferred Stock, which is included in Interest expense, net of interest income in our parent-only condensed statement of operations. This debt extinguishment loss is not recognized for tax purposes. During the
year ended December 31, 2019, we recognized share-based compensation expense related to stock options of $24.2 million, which is included in General, administrative and marketing expenses in our parent-only condensed statement of operations. No share-based compensation expense was recognized during the year ended December 31, 2020.
A condensed statement of cash flows is not presented because Life Time Group Holdings, Inc. has no cash, and, therefore, no material operating, investing, or financing cash flow activities for years ended December 31, 2021, 2020 and 2019. The financing cash flow activities associated with the proceeds we received from the issuance of our common stock during the years ended December 31, 2021, 2020 and 2019, as well as the payments we made to purchase stock options during the year ended December 31, 2019, were non-cash transactions for Life Time Group Holdings, Inc., as the cash inflows and outflows associated with those transactions occurred at our subsidiary, Life Time, Inc and were accounted for as our equity contributions to Life Time, Inc. For more information regarding these transactions, see Note 10, Stockholders’ Equity.

LIFE TIME GROUP HOLDINGS, INC.
(PARENT COMPANY ONLY)
CONDENSED BALANCE SHEETS
(In thousands, except per share data)
December 31,
2021 2020
ASSETS
Current assets $ —  $ — 
Noncurrent assets:
Investment in subsidiaries 2,091,392  1,496,413 
Total noncurrent assets 2,091,392  1,496,413 
Total assets $ 2,091,392  $ 1,496,413 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities $ —  $ — 
Noncurrent liabilities —  — 
Total liabilities —  — 
Stockholders’ equity:
Common stock, $0.01 par value, 500,000 and 170,000 shares authorized, respectively; 193,060 and 145,196 shares issued and outstanding, respectively
 1,931  1,452 
Additional paid-in capital 2,743,560  1,569,905 
Accumulated deficit (654,099) (74,944)
Total stockholders’ equity 2,091,392  1,496,413 
Total liabilities and stockholders’ equity $ 2,091,392  $ 1,496,413 
LIFE TIME GROUP HOLDINGS, INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF OPERATIONS
(In thousands)
For the Year Ended December 31,
2021 2020 2019
Total Revenue $ —  $ —  $ — 
Operating expenses:
Center operations 12,934  —  — 
General, administrative and marketing 316,836  —  24,152 
Other operating 4,569  —  — 
Total operating expenses 334,339  —  24,152 
Loss from operations (334,339) —  (24,152)
Other (expense) income:
Interest expense, net of interest income (40,993) —  — 
Total other expense (40,993) —  — 
Loss before income taxes (375,332) —  (24,152)
Benefit from income taxes (81,579) —  (7,004)
Net loss before equity in net (loss) income of subsidiaries (293,753) —  (17,148)
Net (loss) income of subsidiaries attributable to Life Time Group Holdings, Inc. (285,616) (360,192) 47,173 
Net (loss) income attributable to Life Time Group Holdings, Inc. $ (579,369) $ (360,192) $ 30,025