CHANHASSEN, MN -- Life Time Fitness has continued its good run this year after the company reported an increase in sales, net income and memberships for second quarter 2010.
The announcement came during the Chanhassen, MN-based company’s conference call with investors and analysts.
Life Time’s revenue for the second quarter grew 8.7 percent to $231.1 million from $212.5 million during the same period last year. Net income in second quarter 2010 was $21.9 million compared to $18.3 million in second quarter 2009.
“Our company stands poised to win in the challenging environment. And halfway through the year, we are winning,” Life Time CEO Bahram Akradi said in his opening remarks. “I am very happy with our same-store sales and retention performance since it has been such a strong focus for the company. I am very pleased with the cohesiveness and alignment, energy and focus of our entire team towards building a multi-billion-dollar healthy-way-of-life company.”
For the six months ended June 30, 2010, revenue grew 7.6 percent to $450.9 million from $419.0 million during the same period last year. Net income for the same period was $39.7 million compared with $33.4 million for the first six months of 2009.
Memberships increased as well, up 3.9 percent to 631,862 at June 30, 2010 from 608,281 at June 30, 2009. Attrition rate for the quarter dropped to 8.4 percent.
Life Time also updated its forward-looking statements for 2010. The company expects revenue to be $890 million to $905 million (up from $880 million to $895 million), and net income to be $79 million to $81 million (up from $76.5 million to $79.5 million).
Both Akradi and Life Time CFO Michael Robinson cautioned that expectations could change with the end of the summer pool season.
“The second half of the year will be a true test of our connectivity,” Robinson said during the call. “We’ll really have to look hard at Q3. That’s where the big challenges are.”
Akradi added: “We’re very pleased with our performance. We just want to make sure we don’t get ahead of ourselves.”
In August, Life Time plans to open a new yoga and Pilates boutique in Minneapolis, and in December, the company plans to open a big-box club in Centennial, CO, Life Time’s third club in the Denver market. It also will be Life Time’s third big-box club to open in 2010, joining new clubs in Beachwood, OH, and Lenexa, KS.
In other news, Ken Cooper, Life Time’s vice president of finance, will transition to the role of vice president of the company’s athletic events business. Life Time Treasurer John Heller, who has been with the company for 13 years, will assume the investor relations role.
Life Time’s stock was up 3.95 percent at $36.03 during midday trading on the New York Stock Exchange.