Lifetime Fitness 2008 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2008 Lifetime Fitness annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

From the corporate ofce to our centers, we have implemented prompt and strong measures
to identify and eliminate unnecessary costs without damaging the member experience we
intend to deliver, or the brand we have worked so hard to create. At the corporate ofce, we
will remain diligent in prioritizing expenses and maintaining a relatively at organization. At
our centers, we have reinforced activity-based stafng and space utilization as leading drivers
of cost management. These initiatives will continue. We will not tolerate waste or inefciency.
With respect to growth, we have a number of centers under development. These centers will
be constructed at a rate that is within the boundaries of our cash ow generated by operations
and our current credit facilities – not any faster. We will remain extremely cautious and
selective with our future growth prospects and, as the visibility to credit markets improves,
we will shed additional light on our expansion plans.
Our accomplishments in 2008 were many. We opened 11 state-of-the-art centers in a number
of new and existing markets, and completed the remodeling of nearly all of our recently
acquired facilities. We also grew our in-center revenue per membership by 7%, achieved a
nearly 5% increase in our revenue per membership, and obtained more than $270 million of
debt and sale-leaseback capital. Plus, we presented our customers with more than 50 healthy
way of life events, such as indoor and outdoor triathlons and 5K fun runs.
In closing, 2008 was bittersweet for our company. We had many achievements and we faced
challenges. We continue to believe rmly in our business model, which has proven to be
resilient and successful. Our most valuable asset – our membership base – is demonstrating
strong usage levels. And, we remain excited about the tremendous opportunities that remain
in front of us as we continue to build our company and brand, and focus on long-term
shareholder value.
Sincerely,
Bahram Akradi
Chairman and Chief Executive Ofcer