Lifetime Fitness 2007 Annual Report Download - page 18

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Our Employees
Most of our current model centers are staffed with an average of 250 full-time and part-time employees, of which
approximately 11 are in management positions, and all of whom are trained to provide members with a positive
experience. Our personal trainers, registered dieticians, massage therapists, physical therapists and cosmetologists
are required to maintain a professional license or one of their industry’s top certifications, as the case may be. Each
center typically has a general manager, an operations department head and a sales department head to ensure a well-
managed center and a motivated work force.
All center employees are required to participate in a training program that is specifically designed to promote a
friendly and inviting environment at each center and a consistent standard of performance across all of our centers.
Employees also receive ongoing mentoring, and continuing education is required before they are permitted to
advance to other positions within our company.
As of December 31, 2007, we had approximately 15,000 employees, including approximately 9,500 part-time
employees. We are not a party to a collective bargaining agreement with any of our employees. Although we
experience turnover of non-management personnel, historically we have not experienced difficulty in obtaining
adequate replacement personnel. In general, we believe relations with our employees are good.
Information Systems
In addition to our standard operating and administrative systems, we utilize an integrated and flexible member
management system to manage the flow of member information within each of our centers and between centers and
our corporate office. We have designed and developed the system to allow us to collect information in a secure and
easy-to-use environment. Our system enables us to, among other things, enroll new members with a paperless
membership agreement, acquire digital pictures of members and capture and maintain specific member information,
including frequency of use. The system allows us to streamline the collection of membership dues electronically,
thereby offering additional convenience for our members while at the same time reducing our corporate overhead
and accounts receivable. We have a customer relationship management system to enhance our marketing campaigns
and management oversight regarding daily sales and marketing activities.
Competition
There are a number of health club industry participants that compete directly and indirectly with us that may have
significantly greater economies of scale. However, due to the innovative nature of our comprehensive programming,
product and service offering, we believe that there are no competitors in this industry offering the same experience
and services we offer at a comparable value and quality. We consider the following groups to be the primary
competitors in the health and fitness industry:
xhealth club operators, including 24 Hour Fitness Worldwide, Inc., Bally Total Fitness Holding Corporation,
Equinox Holdings, Inc., LA Fitness International, LLC and Town Sports International, Inc.;
xthe YMCA and similar non-profit organizations;
xphysical fitness and recreational facilities established by local governments, hospitals and businesses;
xlocal salons, cafes and businesses offering similar ancillary services;
xexercise and small fitness clubs and studios, including Anytime Fitness, Curves International and Snap
Fitness;
xracquet, tennis and other athletic clubs;
xamenity and condominium clubs;
xcountry clubs; and
xthe home-use fitness equipment industry.