Annual report pursuant to Section 13 and 15(d)

Condensed Financial Information of Registrant (Parent Company Only)

v3.22.4
Condensed Financial Information of Registrant (Parent Company Only)
 12 Months Ended
Dec. 31, 2022
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, 2022, we recognized share-based compensation expense related to stock options, restricted stock, restricted stock units and our ESPP of $37.3 million, of which $2.8 million, $33.5 million and $0.9 million is included in Center operations, General, administrative and marketing and Other operating, respectively, in our parent-only condensed statement of operations. 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. 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, 2022, 2021 and 2020. The financing cash flow activities associated with the proceeds we received from the issuance of our common stock during the years ended December 31, 2022, 2021 and 2020, 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,
2022 2021
ASSETS
Current assets $ —  $ — 
Noncurrent assets:
Investment in subsidiaries 2,124,261  2,091,392 
Total noncurrent assets 2,124,261  2,091,392 
Total assets $ 2,124,261  $ 2,091,392 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities $ —  $ — 
Noncurrent liabilities —  — 
Total liabilities —  — 
Stockholders’ equity:
Common stock, $0.01 par value per share, 500,000 shares authorized, 194,271 and 193,060 shares issued and outstanding, respectively
 1,943  1,931 
Additional paid-in capital 2,784,416  2,743,560 
Accumulated deficit (662,098) (654,099)
Total stockholders’ equity 2,124,261  2,091,392 
Total liabilities and stockholders’ equity $ 2,124,261  $ 2,091,392 
LIFE TIME GROUP HOLDINGS, INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF OPERATIONS
(In thousands)
Year Ended December 31,
2022 2021 2020
Total Revenue $ —  $ —  $ — 
Operating expenses:
Center operations 2,842  12,934  — 
General, administrative and marketing 33,535  316,836  — 
Other operating 914  4,569  — 
Total operating expenses 37,291  334,339  — 
Loss from operations (37,291) (334,339) — 
Other expense:
Interest expense, net of interest income —  (40,993) — 
Total other expense —  (40,993) — 
Loss before income taxes (37,291) (375,332) — 
Benefit from income taxes (9,136) (81,579) — 
Net loss before equity in net loss of subsidiaries (28,155) (293,753) — 
Net income (loss) attributable to subsidiaries of Life Time Group Holdings, Inc. 26,362  (285,616) (360,192)
Net loss attributable to Life Time Group Holdings, Inc. $ (1,793) $ (579,369) $ (360,192)