Lifetime Fitness 2008 Annual Report Download - page 36

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30
Results of Operations
The following table sets forth our statement of operations data as a percentage of total revenues for the periods
indicated:
For the Year Ended
December 31,
2008 2007 2006
Revenue
Center revenue
Membership dues ................................................................................. 66.1% 66.2% 66.4%
Enrollment fees .................................................................................... 3.4 3.8 4.4
In-center revenue .................................................................................. 28.4 27.8 27.0
Total center revenue .................................................................................... 97.9 97.8 97.8
Other revenue .............................................................................................. 2.1 2.2 2.2
Total revenue ........................................................................................ 100.0 100.0 100.0
Operating expenses
Center operations .........................................................................................
59.1
57.5
57.1
Advertising and marketing .......................................................................... 4.1 3.8 4.1
General and administrative ..........................................................................
5.7
6.2
7.4
Other operating ............................................................................................ 2.5 2.5 2.5
Depreciation and amortization .................................................................... 9.5
9.0 9.3
Total operating expenses .................................................................... 80.9 79.0 80.4
Income from operations ................................................................................. 19.1 21.0 19.6
Other income (expense)
Interest expense, net ......................................................................................... (3.8) (3.9) (3.4)
Equity in earnings of affiliate ........................................................................... 0.2 0.2 0.2
Total other income (expense).............................................................. (3.6) (3.7) (3.2)
Income before income taxes ..........................................................................
15.5 17.3 16.4
Provision for income taxes ............................................................................... 6.2 6.9 6.5
Net income ......................................................................................................
9.3% 10.4% 9. 9 %
Year Ended December 31, 2008 Compared to Year Ended December 31, 2007
Total revenue. Total revenue increased $113.8 million, or 17.4%, to $769.6 million for the year ended December 31,
2008 from $655.8 million for the year ended December 31, 2007.
Total center revenue grew $112.6 million, or 17.6%, to $753.7 million for the year ended December 31, 2008, from
$641.1 million for the year ended December 31, 2007. Comparable center revenue increased 2.8% for the year
ended December 31, 2008 compared to the year ended December 31, 2007. Of the $112.6 million increase in total
center revenue,
x 66.4% was from membership dues, which increased $74.8 million, or 17.2%, due to increased memberships
at new centers, junior membership programs and increased sales of value-added memberships. Our number of
memberships increased 13.6% to 567,110 at December 31, 2008 from 499,092 at December 31, 2007. Our
membership growth of 13.6% was up slightly from a membership growth rate of 12.5% in 2007. This rate
increase was driven by new center growth and included new, lower priced membership offerings in the
second half of 2008.
x 32.0% was from in-center revenue, which increased $36.0 million primarily as a result of increased sales of
our personal training, member activities and LifeCafe products and services. As a result of this, in-center
revenue growth and our focus on broadening our offerings to our members, average in-center revenue per
membership increased from $387 for the year ended December 31, 2007 to $414 for the year ended