Lifetime Fitness 2010 Annual Report Download - page 34

28
For the Year Ended December 31,
2010 2009 2008 2007 2006
(In thousands, except per share, center and membership data)
Other Data:
Same center revenue – 13 month (5) ........... 5.0% (3.1%) 2.8% 6.1% 7.3%
Same center revenue – 37 month (5) ........... 2.3% (7.5%) (2.8%) 0.8% 2.1%
Average revenue per membership (6) ......... $ 1,475 $ 1,414 $ 1,427 $ 1,360 $ 1,270
Average in-center revenue per
membership (7) .......................................... $ 440 $ 400 $ 414 $ 387 $ 351
Annual attrition rate (8) ............................... 36.3% 40.6% 42.3% 34.3% 34.6%
EBITDA (9) ................................................ $ 254,248 $ 240,933 $ 221,544 $ 197,696 $ 148,994
EBITDAR (9) ............................................. $ 296,729 $ 281,174 $ 248,919 $ 217,072 $ 162,718
Capital expenditures (10) ............................ $ 131,671 $ 146,632 $ 463,337 $ 415,822 $ 261,767
Free cash flows (11) .................................... $ 60,594 $ 39,571 ($280,271) ($ 273,616) ($ 135,915)
Operating Data (end of period) (12):
Centers open ................................................ 89 84 81 70 60
Memberships ............................................... 612,556 578,937 567,110 499,092 443,660
Center square footage (13) .......................... 8,810,507 8,459,540 8,109,359 6,832,814 5,802,627
Employees ................................................... 19,000 17,400 16,700 15,000 12,350
Margins:
Center operations ........................................ 38.5% 39.5% 40.9% 42.5% 42.9%
EBITDA (14) .............................................. 27.9% 28.8% 28.8% 30.1% 29.1%
EBITDAR (15) ............................................ 32.5% 33.6% 32.3% 33.1% 31.8%
Operating income ........................................ 17.6% 17.8% 19.1% 21.0% 19.6%
Net Income .................................................. 8.8% 8.6% 9.3% 10.4% 9.9%
Stock Information:
Total common shares outstanding ............... 41,925 41,410 39,613 39,138 36,817
Market price per share – high ...................... $ 42.99 $ 32.05 $ 50.28 $ 65.09 $ 53.04
Market price per share – close .................... $ 40.99 $ 24.93 $ 12.95 $ 49.68 $ 48.51
Market price per share – low ....................... $ 22.05 $ 7.07 $ 8.03 $ 45.89 $ 37.17
Price / earnings ratio at year-end –
diluted ........................................................ 20.5 13.6 7.1 27.9 35.4
Market capitalization (16) .......................... $1,718,505 $1,032,351 $ 512,988 $1,944,376 $1,785,993
(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.
(2) Total operating expenses in 2008 includes expenses totaling $5.0 million associated with plans to slow the
development of new centers. These expenses include severance costs, lower-of-cost-or-market adjustments in
connection with assets held for sale and write-offs associated with land development cancelled in the fourth
quarter of 2008.
Total operating expenses in 2010 includes $5.6 million associated with performance-based restricted stock
compensation expense. In June 2009, we granted performance-based restricted stock to our senior management
team. In fourth quarter 2010, we determined that achieving the 2011 diluted earnings per share performance
criteria required for vesting of 50% of the stock (representing approximately 450,000 shares of restricted stock)
was now probable. As a result, we recognized a cumulative, non-cash performance share-based compensation
expense of $5.6 million (pretax) in the quarter. Of this amount, approximately $1.2 million is reflected in center