Lifetime Fitness 2006 Annual Report Download - page 29

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For the Year Ended December 31,
2006 2005 2004 2003 2002
(In thousands, except per share, center and membership data)
Statement of Operations Data:
Revenue
Center revenue
Membership dues........................................................ $ 339,623 $ 262,989 $ 208,893 $ 171,596 $ 132,124
Enrollment fees .......................................................... 22,438 20,341 19,608 19,198 17,204
In-center revenue (1) .................................................. 138,332 97,710 71,583 55,633 39,630
Total center revenue........................................................ 500,393 381,040 300,084 246,427 188,958
Other revenue.................................................................. 11,504 9,076 11,949 10,515 6,208
Total revenue .......................................................... 511,897 390,116 312,033 256,942 195,166
Operating expenses
Center operations ................................................................ 292,273 216,314 164,764 131,825 102,343
Advertising and marketing.................................................. 20,770 14,446 12,196 11,045 11,722
General and administrative ................................................. 37,781 27,375 21,596 18,554 14,981
Other operating ................................................................... 12,998 12,693 18,256 16,273 10,358
Depreciation and amortization............................................ 47,560 38,346 29,655 25,264 20,801
Impairment charge (2) ........................................................ — — — — 6,952
Total operating expenses......................................... 411,382 309,174 246,467 202,961 167,157
Income from operations ................................................... 100,515 80,942 65,566 53,981 28,009
Interest expense, net............................................................ (17,356) (14,076) (17,573) (19,132) (14,950)
Equity in earnings of affiliate (3)........................................ 919 1,105 1,034 762 333
Income before income taxes ............................................. 84,078 67,971 49,027 35,611 13,392
Provision for income taxes.................................................. 33,513 26,758 20,119 15,006 5,971
Net income......................................................................... 50,565 41,213 28,908 20,605 7,421
Accretion on redeemable preferred stock ........................... — — 3,570 6,987 7,085
Net income applicable to common shareholders ........... $ 50,565 $ 41,213 $ 25,338 $ 13,618 $ 336
Basic earnings per share ..................................................... $ 1.40 $ 1.19 $ 1.02 $ 0.85 $ 0.02
Weighted average number of common shares
outstanding — basic ....................................................... 36,118 34,592 24,727 16,072 15,054
Diluted earnings per share ................................................. $ 1.37 $ 1.13 $ 0.87 $ 0.72 $ 0.02
Weighted average number of shares outstanding —
diluted (4) ...................................................................... 36,779 36,339 33,125 28,612 16,430
Balance Sheet Data (end of period):
Cash and cash equivalents .............................................. $ 6,880 $ 4,680 $ 10,211 $ 18,446 $ 8,860
Working capital .............................................................. (100,509) (66,123) (71,952) (15,340) (29,819)
Total assets ..................................................................... 987,676 723,460 572,087 453,346 419,024
Total debt........................................................................ 389,555 273,282 209,244 233,232 231,320
Total redeemable preferred stock.................................... — — — 106,165 99,179
Total shareholders’ equity............................................... 392,513 307,844 250,634 32,792 18,547
Cash Flow Data:
Net cash provided by operating activities ....................... $ 125,852 $ 107,952 $ 80,431 $ 52,576 $ 43,558
Net cash used in investing activities ............................... (263,183) (180,850) (146,080) (24,476) (31,350)
Net cash provided by (used in) financing activities ........ 139,531 67,367 57,414 (18,514) (5,556)
Other Data:
Comparable center revenue growth (5)........................... 7.3% 7.7% 9.7% 13.2% 22.3%
Average revenue per membership (6) ............................ $ 1,270 $ 1,171 $ 1,119 $ 1,089 $989
Average in-center revenue per membership (7) ............. 351 300 267 242 207
EBITDA (8).................................................................... 148,994 120,393 96,255 80,007 49,143
EBITDA margin (9)........................................................ 29.1% 30.9% 30.8% 31.1% 25.2%
Capital expenditures (10)................................................ $ 263,387 $ 190,451 $ 145,707 $ 81,846 $ 87,432
Operating Data (11):
Centers open at end of period ......................................... 60 46 39 33 29
Number of memberships at end of period ...................... 443,660 358,384 299,538 249,192 215,387
(1) In-center revenue includes revenue generated at our centers from fees for personal training, dieticians, group
fitness training and other member activities, sales of products offered at our LifeCafe, sales of products and
services offered at our LifeSpa, tennis and renting space in certain of our centers.