Lifetime Fitness 2009 Annual Report Download - page 79

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74
Quarterly Results (Unaudited)
Our quarterly operating results may fluctuate significantly because of several factors, including the timing of new
center openings and related expenses, timing of price increases for enrollment fees and membership dues and
general economic conditions.
In the past, our pre-opening costs, which primarily consist of compensation and related expenses, as well as
marketing, have varied significantly from quarter to quarter, primarily due to the timing of center openings. In
addition, our compensation and related expenses as well as our operating costs in the beginning of a center’s
operations are greater than what can be expected in the future, both in aggregate dollars and as a percentage of
membership revenue. Accordingly, the volume and timing of new center openings in any quarter have had, and are
expected to continue to have, an impact on quarterly pre-opening costs, compensation and related expenses and
occupancy and real estate costs. Due to these factors, results for a quarter may not indicate results to be expected for
any other quarter or for a full fiscal year.
2008 2009
1st 2nd 3rd 4th 1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
(In thousands, except for number of centers and per share data)
Total revenue ......... $184,451 $192,407 $198,809 $193,954 $206,434 $212,549 $214,320 $203,698
Income from
operations (1) ....... 36,016 39,878 42,123 29,337 32,503 38,270 39,982 38,106
Net income............. 17,404 19,828 21,574 13,015 15,114 18,260 20,633 18,377
Earnings per share
Basic (2) ............. $0.45 $0.51 $0.55 $0.33 $0.39 $0.46 $0.52 $0.47
Diluted (2) .......... 0.44 0.50 0.55 0.33 0.38 0.46 0.51 0.46
Net cash provided
by (used in):
Operating
activities ......... $49,322 $56,338 $37,852 $39,554 $49,660 $48,624 $40,267 $47,652
Investing
activities ......... (104,056) (145,260) 42,006 (98,685) (50,386) (40,428) (24,766) (27,705)
Financing
activities ......... 51,839 90,137 (76,413) 62,841 473 (7,967) (18,169) (21,802)
EBITDA (3) ........... $52,929 $57,394 $61,179 $50,042 $54,904 $61,237 $63,726 $61,066
Free cash flow (4) .. ($51,163) ($78,754) ($87,122) ($63,232) $ 760 $ 5,799 $15,139 $17,873
Annual attrition
rate (5).................. 36.1% 38.8% 41.2% 42.3% 42.7% 41.5% 40.6% 40.6%
Rent expense .......... $5,121 $5,460 $6,723 $10,071 $9,996 $10,084 $10,064 $10,097
Centers open at
end of quarter (6) . 71 74 77 81 83 84 84 84
(1) Total operating expenses in the fourth quarter of 2008 include expenses totaling $5.0 million associated with
plans to slow the development of new centers. These expenses include severance costs, lower-of-cost-or-market
adjustments in connection with assets held for sale and write-offs associated with land development cancelled in
the fourth quarter of 2008.
(2)The basic and diluted earnings per share by quarter include the impact of rounding within each quarter.