Lifetime Fitness 2007 Annual Report Download - page 30

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24
For the Year Ended December 31,
2007 2006 2005 2004 2003
(In thousands, except per share, center and membership data)
Statement of Operations Data:
Revenue
Center revenue
Membership dues....................................................
.
$ 434,138 $ 339,623 $ 262,989 $ 208,893 $ 171,596
Enrollment fees.......................................................
.
24,741 22,438 20,341 19,608 19,198
In-center revenue (1)...............................................
.
182,215 138,332 97,710 71,583 55,633
Total center revenue....................................................
.
641,094 500,393 381,040 300,084 246,427
Other revenue..............................................................
.
14,692 11,504 9,076 11,949 10,515
Total revenue ......................................................
.
655,786 511,897 390,116 312,033 256,942
Operating expenses
Center operations ............................................................
.
377,235 292,273 216,314 164,764 131,825
Advertising and marketing..............................................
.
24,967 20,770 14,446 12,196 11,045
General and administrative .............................................
.
40,820 37,781 27,375 21,596 18,554
Other operating...............................................................
.
16,340 12,998 12,693 18,256 16,273
Depreciation and amortization........................................
.
59,014 47,560 38,346 29,655 25,264
Total operating expenses.....................................
.
518,376 411,382 309,174 246,467 202,961
Income from operations ...............................................
.
137,410 100,515 80,942 65,566 53,981
Interest expense, net........................................................
.
(25,443) (17,356) (14,076) (17,573) (19,132)
Equity in earnings of affiliate (2)....................................
.
1,272 919 1,105 1,034 762
Income before income taxes .........................................
.
113,239 84,078 67,971 49,027 35,611
Provision for income taxes..............................................
.
45,220 33,513 26,758 20,119 15,006
Net income.....................................................................
.
68,019 50,565 41,213 28,908 20,605
Accretion on redeemable preferred stock .......................
.
— — — 3,570 6,987
Net income applicable to common shareholders ........
.
$ 68,019 $ 50,565 $ 41,213 $ 25,338 $ 13,618
Basic earnings per share .................................................
.
$ 1.81 $ 1.40 $ 1.19 $ 1.02 $ 0.85
Weighted average number of common shares
outstanding — basic....................................................
.
37,518 36,118 34,592 24,727 16,072
Diluted earnings per share ..............................................
.
$ 1.78 $ 1.37 $ 1.13 $ 0.87 $ 0.72
Weighted average number of shares outstanding —
diluted (3) ...................................................................
.
38,127 36,779 36,339 33,125 28,612
Balance Sheet Data (end of period):
Cash and cash equivalents ..........................................
.
$ 5,354 $ 6,880 $ 4,680 $ 10,211 $ 18,446
Working capital ..........................................................
.
(100,281) (100,509) (66,123) (71,952) (15,340)
Total assets .................................................................
.
1,386,533 987,676 723,460 572,087 453,346
Total debt....................................................................
.
564,605 389,555 273,282 209,244 233,232
Total redeemable preferred stock................................
.
— — — — 106,165
Total shareholders’ equity...........................................
.
572,557 392,513 307,844 250,634 32,792
Cash Flow Data:
Net cash provided by operating activities ...................
.
$ 142,206 $ 125,852 $ 107,952 $ 80,431 $ 52,576
Net cash used in investing activities (417,207) (263,183) (180,850) (146,080) (24,476)
Net cash provided by (used in) financing activities ....
.
273,475 139,531 67,367 57,414 (18,514)
Other Data:
Comparable center revenue growth (4).......................
.
6.1% 7.3% 7.7% 9.7% 13.2%
Average revenue per membership (5) .........................
.
$ 1,360 $ 1,270 $ 1,171 $ 1,119 $ 1,089
Average in-center revenue per membership (6) ..........
.
387 351 300 267 242
EBITDA (7)................................................................
.
197,696 148,994 120,393 96,255 80,007
EBITDA margin (8)....................................................
.
30.1% 29.1% 30.9% 30.8% 31.1%
Capital expenditures (9)..............................................
.
$ 415,822 $ 261,767 $ 190,355 $ 145,562 $ 41,315
Operating Data (10):
Centers open at end of period .....................................
.
70 60 46 39 33
Number of memberships at end of period...................
.
499,092 443,660 358,384 299,538 249,192
Total center square footage (11) ................................. 6,832,814 5,802,627 4,077,918 3,345,386 2,731,954
(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.