Lifetime Fitness 2011 Annual Report Download - page 39

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33
Our employee stock purchase plan (“ESPP”) provides for the sale of shares of our common stock to our employees
at discounted purchase prices. The cost per share under this plan is 90% of the fair market value of our common
stock on the last day of the purchase period, as defined. Compensation expense under the ESPP is based on the
discount of 10% at the end of the purchase period.
A 10% change in our share-based compensation expense for the year ended December 31, 2011 would have affected
net income by approximately $1.2 million in fiscal 2011.
Results of Operations
The following table sets forth our consolidated statements of operations data as a percentage of total revenue for the
periods indicated:
REVENUE:
Membership dues
Enrollment fees
In-center revenue
Total center revenue
Other revenue
Total revenue
OPERATING EXPENSES:
Center operations
Advertising and marketing
General and administrative
Other operating
Depreciation and amortization
Total operating expenses
Income from operations
OTHER INCOME (EXPENSE):
Interest expense, net
Equity in earnings of affiliate
Total other income (expense)
INCOME BEFORE INCOME TAXES
PROVISION FOR INCOME TAXES
NET INCOME
For the Year Ended December 31,
2011
65.5%
1.8
30.4
97.7
2.3
100.0
60.7
3.5
5.4
3.5
9.8
82.9
17.1
(2.0 )
0.1
(1.9 )
15.2
6.1
9.1%
2010
66.1%
2.7
29.1
97.9
2.1
100.0
61.5
3.0
5.2
2.6
10.1
82.4
17.6
(3.0 )
0.1
(2.9 )
14.7
5.9
8.8%
2009
67.5%
3.1
27.8
98.4
1.6
100.0
60.5
3.2
5.1
2.6
10.8
82.2
17.8
(3.7)
0.2
(3.5)
14.3
5.7
8.6%
Year Ended December 31, 2011 Compared to Year Ended December 31, 2010
Total revenue. Total revenue increased $100.9 million, or 11.0%, to $1,013.7 million for the year ended
December 31, 2011 from $912.8 million for the year ended December 31, 2010.
Total center revenue grew $96.3 million, or 10.8%, to $990.4 million for the year ended December 31, 2011, from
$894.1 million for the year ended December 31, 2010. Of the $96.3 million increase in total center revenue,
• 62.5% was from membership dues, which increased $60.2 million, or 10.0%, due to increased
memberships, primarily at new and ramping centers, and higher average dues. Our number of memberships
increased 10.4% to 676,054 at December 31, 2011 from 612,556 at December 31, 2010.
• 43.7% was from in-center revenue, which increased $42.0 million primarily as a result of increased sales of
our LifeSpa and LifeCafe products and services and personal training. Average in-center revenue per
membership increased from $440 for the year ended December 31, 2010 to $481 for the year ended
December 31, 2011.