Lifetime Fitness 2009 Annual Report Download - page 9

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4
Since inception, we have led the creation not of a health club chain, but rather a comprehensive, Healthy Way of
Life company and brand that continues to have a significant impact on the health and wellness of consumers.
Our Competitive Strengths
We offer comprehensive and convenient programs and services.
Most of our centers offer access 24 hours a day, seven days a week. Unlike traditional health clubs, our large format
centers offer an expansive selection of premium amenities and services, including more than 400 pieces of state-of-
the-art cardiovascular and resistance equipment and free-weights. Amenities generally include multiple group fitness
studios with free classes, a team of certified personal trainers and programming, educational seminars and fitness
assessments, a wide selection of adult and youth programs and activities, athletic events, cycle theaters, rock
climbing walls, multiple basketball courts, racquetball and squash courts, Pilates and yoga studios, dry saunas,
complimentary towel and locker service, large indoor and outdoor aquatics centers with multiple, two-story
waterslides, two large zero-depth entrance recreation pools, a lap pool, two whirlpools, an outdoor bistro, a large
child center featuring a computer center, separate infant playroom, and numerous children's activities, a separate
family locker room, LifeSpa, which delivers a full range of hair, nail and skin care services, and therapeutic
massage, and LifeCafe, which offers the best in nutritional food and beverage services.
Our team of member-focused employees, each trained through our specifically designed program of classes and/or
certifications, is committed to providing an environment that is clean, educational and entertaining, friendly and
inviting, and functional and innovative.
We offer a value proposition that encourages membership loyalty.
The broad range of amenities, programs and services we offer exceed that of most other health and fitness center
alternatives available to consumers. We offer different types of membership plans for individuals, couples and
families. Our typical monthly membership dues range from $50 to $80 per month for an individual membership and
from $130 to $160 per month for a couple or family membership. We also offer a premium membership (Onyx)
with dues starting at $90 per month for an individual membership and up to $250 per month for a family
membership. Our memberships include the primary member’s children under the age of 12 at a nominal per child
monthly cost. We provide the majority of our members with a variety of complimentary services, including group
fitness classes, educational seminars and fitness assessments, towel and locker service and a subscription to our
award-winning magazine, Experience Life. Our membership plans include initial 14-day money back guarantees and
are month-to-month, cancelable by giving up to sixty days advance notice. We believe our value proposition and
member focused approach creates loyalty among our members.
We offer a product that is convenient for our members.
Our centers are generally situated in residential areas and are easily accessed and centrally located among the
residential, business and shopping districts of the surrounding community. We design, build and operate our centers
to accommodate a large and active membership base by generally providing access to the centers 24 hours a day,
seven days a week. In addition, we provide sufficient parking spaces, lockers and equipment to allow our members
to exercise with little or no waiting time, even at peak hours and when center membership levels are at targeted
capacity. Our child center services are available to the majority of our members for a modest monthly fee per child
for up to two hours per day. Most of our centers offer the convenience of spa and cafe services. Most members have
access to more than one center in markets where we operate more than one location.
We have an established and profitable economic model.
Our economic model is both based and dependent on attracting a large membership base within the first three years
after a new center is opened, as well as retaining those members and maintaining tight expense control. In 2009, this
economic model resulted in revenue growth of 9%, with revenue of $837.0 million; EBITDA growth of 9%, with
EBITDA of $240.9 million and an EBITDA margin of 28.8%; and net income growth of 1%, with net income of
$72.4 million.