CHANHASSEN, Minn. (March 8, 2023) – Life Time Group Holdings, Inc. (“Life Time,” “we,” “our,” “us,” or the “Company”) (NYSE: LTH) today announced its financial results for the fiscal fourth quarter and full-year ended December 31, 2022.

Bahram Akradi, Founder, Chairman and CEO, stated: “We had a strong 2022 and believe we are entering 2023 with great momentum in our business. Our strategies are working. The strategic investments we have made are driving increased club usage and memberships. We are also optimizing our pricing to continue to enhance our member experience, increase center revenue per center membership and deliver margin expansion. In 2023, our top priority is to improve our balance sheet, including by growing our revenue and increasing our operating margin to reduce our leverage. Our entire organization is united in delivering incredible experiences to our members and continued strong financial performance.”

•Revenue increased due to strong growth in membership dues and in-center revenues, which was driven by our pricing strategy, increased memberships and higher utilization of our in-center offerings by our members.

•Average monthly dues per center membership increased approximately 20% to $162.

•Net center memberships declined approximately 3,500, consistent with typical seasonality, and far less than the approximately 13,000 decline in the fourth quarter of 2019.

•Center operations expenses increased primarily due to added staffing to support increased center usage, expanded programming and new center openings, as well as labor and utility cost inflation.

•General, administrative and marketing expenses declined primarily due to higher non-cash share-based compensation expense in the prior year period. Excluding non-cash share-based compensation expense and one-time items in both

•Net income included $3.4 million of tax-effected non-cash share-based compensation expense and $0.5 million of one-time tax-effected expenses. Net loss in the prior year period included $258.3 million of tax-effected non-cash share-based compensation expense and $12.6 million of one-time tax-effected additional interest expense incurred in connection with the partial pay down of our term loan. Excluding the impact of these expenses, net income improved by $51.2 million.

•Net income and Adjusted EBITDA improved significantly as we experienced greater flow through of our increased revenue and benefited from our initial margin expansion efforts.

•Revenue increased due to strong growth in membership dues and in-center revenues, which was driven by our pricing strategy, continued center membership recovery, higher utilization of our in-center offerings by our members after the adverse impacts of COVID-19, and supported by strategic investments in our business, and the opening of 10 new centers.

•Center operations expenses increased primarily due to added staffing to support increased center usage, expanded programming and new center openings, as well as labor and utility cost inflation.

•General, administrative and marketing expenses declined due to higher non-cash share-based compensation expense in the prior year period. Excluding non-cash share-based compensation expense and one-time items in both periods, general, administrative and marketing expenses increased by $19.6 million primarily due to increased labor to enhance and broaden our member services and higher marketing, information technology and public company-related expenses.

•Net loss included a $66.9 million tax-effected gain on sale-leaseback transactions associated with nine of our properties, partially offset by $25.5 million of tax-effected non-cash share-based compensation expense. Net loss in the prior year included $269.1 million of tax-effected non-cash share-based compensation expense and $68.6 million of one-time tax-effected additional interest expense incurred in connection with the conversion of a related-party secured note into preferred stock, debt refinancing, and the partial pay down of our term loan. Excluding these items of income and expense, net loss improved by $195.2 million.

•Net loss and Adjusted EBITDA improved significantly as we experienced greater flow through of our increased revenue.

•The Company opened five new centers in the fourth quarter of 2022 and 10 new centers in fiscal 2022.

•As of December 31, 2022, we operated a total of 161 centers.

•The Company plans to open 10 new centers in 2023, including three in the first quarter.

•As of December 31, 2022, the Company had total cash and cash equivalents of $25.5 million and had $20.0 million in outstanding borrowings under its $475 million revolving credit facility.

•Net cash provided by (used in) operating activities totaled $201.0 million for the year ended December 31, 2022, compared to $(20.0) million in 2021.

•Free cash flow before growth capital expenditures totaled $19.2 million for the year ended December 31, 2022, compared to $(143.6) in 2021.

•Growth capital expenditures, net of construction reimbursements, center maintenance capital expenditures and corporate capital expenditures totaled $409.4 million, $98.1 million and $83.6 million, respectively, for the year ended December 31, 2022, compared to $205.3 million, $61.9 million and $61.7 million, respectively, in 2021.

•The Company completed sale-leaseback transactions associated with nine properties for gross proceeds of approximately $375 million in fiscal 2022.

•The Company continues to explore alternative sale-leaseback structures to optimize our financing cost in a tax-efficient manner.

•We plan to open 10 athletic country clubs in 2023.

•We expect full-year rent expense to include non-cash rent expense of $35 million to $40 million.

•We anticipate being able to offset a large portion of our 2023 cash taxes by utilizing a portion of our net operating loss carryforwards.

•We are planning to execute sale-leaseback transactions to generate gross proceeds of $300 million.

•We are targeting capital expenditures of $260 million to $280 million, net of the planned $300 million in sale-leaseback gross proceeds. This includes $380 million to $400 million of growth capital with the balance primarily devoted to asset management and technology spending.

•We expect to achieve leverage of approximately four times net debt to adjusted EBITDA by year-end.

•Date and Time: March 8, 2023, at 8:30am Eastern Time

•Dial-In: 877-451-6152 (U.S.) and 201-389-0879 (international)

•Webcast: Link to 4Q and Full-Year Webcast

•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/

About Life Time®

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.

Jason Thunstrom, Life Time Corporate Communications // jthunstrom@lifetime.life or 952-229-7435

(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.

The following table provides a reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA (in thousands):

			Three Months Ended												Year Ended
			December 31,												December 31,
			2022						2021						2022						2021
Net income (loss)			$	13,726					$	(304,770)					$	(1,793)					$	(579,369)
Interest expense, net of interest income (a)			28,805						48,372						113,537						224,516
Provision for (benefit from) income taxes			2,631						(81,477)						(825)						(140,344)
Depreciation and amortization			57,203						58,119						228,883						235,124
Share-based compensation expense (b)			4,077						327,380						37,291						334,339
COVID-19 related expenses (credits) (c)			2,119						(1,179)						3,056						(1,589)
Loss (gain) on sale-leaseback transactions (d)			535						(677)						(97,632)						2,380
Capital transaction costs (e)			—						2,316						255						2,904
Legal settlements (f)			—						—						—						(44)
Other (g)			(2,069)						(62)						(1,048)						2,382
Adjusted EBITDA			$	107,027					$	48,022					$	281,724					$	80,299

(a)    During the year ended December 31, 2021, we incurred a non-cash expense of $41.0 million related to the extinguishment of our related party secured loan and $28.6 million related to the write-off of debt discounts and issuance costs of our prior term loan facility, our previous senior unsecured notes and our related party secured loan. In June 2020, we closed on an approximate $101.5 million secured loan from an investor group comprised solely of our stockholders or their affiliates. The secured loan carried an interest rate of 12.0% and was scheduled to mature in June 2021. In January 2021, we extinguished the related party secured loan plus accrued interest with a book value of $108.6 million by converting the loan into approximately 5.4 million shares of our Series A Preferred Stock, which had a fair value of $149.6 million, as determined by an independent third-party valuation, at the time of conversion. Accordingly, we booked a $41.0 million loss upon conversion.

(b)    Share-based compensation expense recognized during the year ended December 31, 2022, is associated with stock options, restricted stock, restricted stock units and our employee stock purchase plan (“ESPP”) that launched on December 1, 2022. A significant portion of the share-based compensation expense that we recognized during the year ended December 31, 2021, is associated with stock options that were granted prior to 2021. As of the effective date of our initial public offering (“IPO”) in October 2021, these stock options became fully vested, and they became exercisable either immediately or on April 4, 2022, subject to continued service through such date. Accordingly, during the period from the effective date of IPO through April 4, 2022, we recognized share-based compensation expense associated with these stock options in an amount equal to the proportion of the total service period that passed from the respective grant dates associated with each of these stock option awards through April 4, 2022. Because the exercisability of these stock options was contingent upon the occurrence of a change of control or an initial public offering, no share-based compensation expense associated with these stock options was recognized prior to the IPO.

(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 year ended December 31, 2022, COVID-19 related expenses primarily consisted of site development cost write-offs and legal-related costs in pursuit of our claim against Zurich. For the year ended December 31, 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.

(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.

(1)    Sale-leaseback proceeds for the year ended December 31, 2022, includes $21.4 million that was recognized as financing obligations and reported within financing activities on our consolidated statement of cash flows.