Lifetime Fitness 2006 Annual Report Download - page 3

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Dear Shareholders,
2006 was a record-breaking year for Life Time Fitness, in nearly every metric we track. As a growth Company
that is what we expect. Every year, we set out to execute on our operational, financial and growth plan, and
2006 was no different. We set the bar high in every facet of our business and we did not veer from our plan.
We also remained true to our customer-focused principles of delivering an extraordinary member experience,
which helped us achieve strong growth and increased shareholder value. And, we continued to improve the
member experience by making additional investments in our health and fitness center spaces and amenities,
expanded employee training and certification initiatives, and the launch of new, healthy-way-of-life services,
products and programs.
In 2006, we:
• Opened seven current model centers as planned, including four in new markets
• Completed our first multi-facility transaction through which we now operate seven additional leased
locations in Minnesota and Florida
• Grew total memberships to more than 443,000, achieving nearly 24 percent growth
• Surpassed one-half billion dollars in revenue, ending the year at $511.9 million
• Grew in-center revenue by nearly 42 percent
• Grew net income 23 percent to $50.6 million, or $1.37 per diluted common share
These results were achieved through an unwavering focus on our core growth strategies, including new unit
growth, membership growth, optimizing our pricing structure, and in-center revenue growth.
As I look to 2007, I am very excited for our Company. First and foremost, we will continue our national
expansion by adding eight new centers across the United States, three of which will be located in new states
for us. We also have many other priorities we want to accomplish this year, including initiatives that are
geared to establish a deeper connectivity with our members, such as, new personal training and group
exercise programs, healthier menus and quicker service in our LifeCafes, and “sensory” improvements that
positively impact the sight, sound, feel, smell, taste and the overall energy of our centers.
Additionally, we will continue to invest in our most important asset – our employees – through
comprehensive certification and training programs. We are fortunate to have such a talented and dedicated
team of professionals who carry out our healthy-way-of-life and customer experience objectives each and
every day, fulfilling the commitments we have made to our members.
At a time when our nation is facing a serious health crisis – an incredible two-thirds of us are technically
overweight or obese – we continue to see firsthand why we are in business. We change lives. Life Time Fitness
is uniquely prepared and positioned to meet the needs of individuals and families who have, or will, make
the critical decision to lead healthier, more active lives.
Sincerely,
Bahram Akradi
Chairman, President and CEO