Lifetime Fitness 2010 Annual Report Download - page 40

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Results of Operations
The following table sets forth our consolidated statements of operations data as a percentage of total revenue for the
periods indicated:
For the Year Ended
December 31,
2010 2009 2008
REVENUE:
Membership dues ....................................................................................... 66.1% 67.5% 66.1%
Enrollment fees .......................................................................................... 2.7 3.1 3.4
In-center revenue........................................................................................ 29.1 27.8 28.4
Total center revenue ............................................................................... 97.9 98.4 97.9
Other revenue ............................................................................................. 2.1 1.6 2.1
Total revenue .......................................................................................... 100.0 100.0 100.0
OPERATING EXPENSES:
Center operations ....................................................................................... 61.5 60.5 59.1
Advertising and marketing ......................................................................... 3.0 3.2 4.1
General and administrative ........................................................................ 5.2 5.1 5.7
Other operating .......................................................................................... 2.6 2.6 2.5
Depreciation and amortization ................................................................... 10.1 10.8 9.5
Total operating expenses ........................................................................ 82.4 82.2 80.9
Income from operations .......................................................................... 17.6 17.8 19.1
OTHER INCOME (EXPENSE):
Interest expense, net ................................................................................... (3.0) (3.7) (3.8)
Equity in earnings of affiliate ..................................................................... 0.1 0.2 0.2
Total other income (expense) ................................................................. (2.9) (3.5) (3.6)
INCOME BEFORE INCOME TAXES ......................................................... 14.7 14.3 15.5
PROVISION FOR INCOME TAXES ........................................................... 5.9 5.7 6.2
NET INCOME............................................................................................... 8.8% 8.6% 9.3%
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009
Total revenue. Total revenue increased $75.8 million, or 9.1%, to $912.8 million for the year ended December 31,
2010 from $837.0 million for the year ended December 31, 2009.
Total center revenue grew $70.5 million, or 8.6%, to $894.1 million for the year ended December 31, 2010, from
$823.6 million for the year ended December 31, 2009. Of the $70.5 million increase in total center revenue,
x54.8% was from membership dues, which increased $38.6 million, or 6.8%, due to increased memberships at
new centers and higher average dues. Our number of memberships increased 5.8% to 612,556 at December
31, 2010 from 578,937 at December 31, 2009.
x47.6% was from in-center revenue, which increased $33.6 million primarily as a result of increased sales of
our LifeSpa and LifeCafe products and services and personal training. Average in-center revenue per
membership increased from $400 for the year ended December 31, 2009 to $440 for the year ended
December 31, 2010.
x(2.4%) was from enrollment fees, which are deferred until a center opens and recognized on a straight-line
basis over our estimated average membership life. In the fourth quarter of 2010, the estimated average
membership life was 33 months. For the fourth quarter of 2008 through the third quarter of 2010, the
estimated average membership life was 30 months. For the second and third quarters of 2008, it was 33
months, and for the first quarter of 2008 and prior, it was 36 months. Enrollment fees decreased $1.7 million