Lifetime Fitness 2009 Annual Report Download - page 45

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On February 23, 2010, we prepaid three of the mortgage notes payable to TIAA at the par amount of $30.2 million.
Concurrent with the prepayment, the mortgages were released on three of our centers. Additionally, the loan
documents with TIAA were amended reducing the number of shares of our common stock our Chief Executive
Officer must retain from 1.8 million to 1.0 million. As of the date of the prepayment, the obligations to TIAA under
the remaining ten mortgage notes payable, totaling $74.3 million, remain due in July 2011.
Credit Rating. We have never had public debt. Accordingly, we do not have, nor have we had, a credit rating as
stated through Standard and Poor’s Rating Services or Moody’s Investor Service.
The following table summarizes our capital structure as of December 31, 2009 and 2008.
December 31,
2009 2008
Debt (In thousands)
Long-term ................................................................................................................. $643,630 $ 702,569
Current maturities of long-term ................................................................................ 16,716 10,335
Total debt .................................................................................................................. 660,346 712,904
Shareholders’ Equity
Common stock .......................................................................................................... 829 793
Additional paid-in capital ......................................................................................... 395,121 385,095
Retained earnings ...................................................................................................... 344,095 271,711
Accumulated other comprehensive loss .................................................................... (2,614) (4,698)
Total shareholders’ equity ......................................................................................... 737,431 652,901
Total capitalization ...................................................................................................... $1,397,777 $1,365,805
Debt highlights, as of December 31, 2009 and 2008:
December 31,
2009 2008
Fixed-rate debt as a percent of total debt ..................................................................... 59.6% 54.6%
Weighted-average annual interest rate of total debt ..................................................... 3.7% 4.5%
Total debt (net of cash) as a percent of total capitalization
(total debt (net of cash) and total shareholders’ equity) ........................................... 47.0% 51.8%
Cash provided by operating activities as a percent of total debt .................................. 28.2% 25.7%
Operating Activities
As of December 31, 2009, we had total cash and cash equivalents of $6.3 million and $2.9 million of restricted cash
that serves as collateral for certain of our debt arrangements. We also had $101.0 million available under the terms
of our revolving credit facility as of December 31, 2009.
Net cash provided by operating activities was $186.2 million for 2009 compared to $183.1 million for 2008, driven
primarily by a $0.6 million, or 0.8% improvement in net income, a $17.8 million increase in depreciation expense,
offset by $11.0 million of cash used in changes in operating assets and liabilities.
Net cash provided by operating activities was $183.1 million for 2008 compared to $142.2 million for 2007, driven
primarily by a $3.8 million, or 5.6%, improvement in net income, a $13.9 million increase in depreciation expense
and $13.5 million of cash provided by changes in operating assets and liabilities.
Investing Activities
Investing activities consist primarily of purchasing real property, constructing new centers and purchasing new
fitness equipment. In addition, we invest in capital expenditures to maintain and update our existing centers. We
finance the purchase of our property and equipment by cash payments or by financing through notes payable or
capital lease obligations.