Lifetime Fitness 2008 Annual Report Download - page 31

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25
For the Year Ended December 31,
2008 2007 2006 2005 2004
(In thousands, except per share, center and membership data)
Statement of Operations Data:
Revenue
Center revenue
Membership dues ....................................................
.
$ 508,927 $ 434,138 $ 339,623 $ 262,989 $ 208,893
Enrollment fees .......................................................
.
26,570 24,741 22,438 20,341 19,608
In-center revenue (1) ...............................................
.
218,198 182,215 138,332 97,710 71,583
Total center revenue ....................................................
.
753,695 641,094 500,393 381,040 300,084
Other revenue..............................................................
.
15,926 14,692 11,504 9,076 11,949
Total revenue ......................................................
.
769,621 655,786 511,897 390,116 312,033
Operating expenses
Center operations ............................................................
.
454,645 377,235 292,273 216,314 164,764
Advertising and marketing ..............................................
.
31,500 24,967 20,770 14,446 12,196
General and administrative .............................................
.
43,749 40,820 37,781 27,375 21,596
Other operating ...............................................................
.
19,426 16,340 12,998 12,693 18,256
Depreciation and amortization ........................................
.
72,947 59,014 47,560 38,346 29,655
Total operating expenses (12) .............................
.
622,267 518,376 411,382 309,174 246,467
Income from operations ...............................................
.
147,354 137,410 100,515 80,942 65,566
Interest expense, net ........................................................
.
(29,552) (25,443) (17,356) (14,076) (17,573)
Equity in earnings of affiliate (2) ....................................
.
1,243 1,272 919 1,105 1,034
Income before income taxes .........................................
.
119,045 113,239 84,078 67,971 49,027
Provision for income taxes..............................................
.
47,224 45,220 33,513 26,758 20,119
Net income .....................................................................
.
71,821 68,019 50,565 41,213 28,908
Accretion on redeemable preferred stock .......................
.
— — — — 3,570
Net income applicable to common shareholders ........
.
$ 71,821 $ 68,019 $ 50,565 $ 41,213 $ 25,338
Basic earnings per share .................................................
.
$ 1.84 $ 1.81 $ 1.40 $ 1.19 $ 1.02
Weighted average number of common shares
outstanding — basic ....................................................
.
39,002
37,518
36,118
34,592
24,727
Diluted earnings per share ..............................................
.
$ 1.83 $ 1.78 $ 1.37 $ 1.13 $ 0.87
Weighted average number of shares outstanding —
diluted (3) ...................................................................
.
39,342
38,127
36,779
36,339
33,125
Balance Sheet Data (end of period):
Cash and cash equivalents ..........................................
.
$10,829 $ 5,354 $ 6,880 $ 4,680 $ 10,211
Working capital ..........................................................
.
(107,112) (100,281) (100,509) (66,123) (71,952)
Total assets .................................................................
.
1,647,703 1,386,533 987,676 723,460 572,087
Total debt ....................................................................
.
712,904 564,605 389,555 273,282 209,244
Total shareholders’ equity ...........................................
.
652,901 572,557 392,513 307,844 250,634
Cash Flow Data:
Net cash provided by operating activities ...................
.
$183,066 $ 142,206 $ 125,852 $ 107,952 $ 80,431
Net cash used in investing activities (305,995) (417,207) (263,183) (180,850) (146,080)
Net cash provided by financing activities ...................
.
128,404 273,475 139,531 67,367 57,414
Other Data:
Comparable center revenue growth (4) .......................
.
2.8% 6.1% 7.3% 7.7% 9.7%
Average revenue per membership (5) .........................
.
$ 1,427 $ 1,360 $ 1,270 $ 1,171 $ 1,119
Average in-center revenue per membership (6) ..........
.
414 387 351 300 267
EBITDA (7) ................................................................
.
221,544 197,696 148,994 120,393 96,255
EBITDA margin (8) ....................................................
.
28.9% 30.1% 29.1% 30.9% 30.8%
Capital expenditures (9) ..............................................
.
$ 463,337 $ 415,822 $ 261,767 $ 190,355 $ 145,562
Operating Data (10):
Centers open at end of period .....................................
.
81 70 60 46 39
Number of memberships at end of period ...................
.
567,110 499,092 443,660 358,384 299,538
Total center square footage (11) ................................. 8,109,359 6,832,814 5,802,627 4,077,918 3,345,386
(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) In 1999, we formed Bloomingdale LIFE TIME Fitness, L.L.C. (“Bloomingdale LLC”) with two unrelated
organizations for the purpose of constructing, owning and operating a center in Bloomingdale, Illinois. Each
member made an initial capital contribution of $2.0 million and owns a one-third interest in Bloomingdale