Lifetime Fitness 2012 Annual Report Download - page 10

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For the Year Ended December 31,
2012 2011 2010 2009 2008
Total centers, beginning of year 101 89 84 81 70
New centers – constructed 3 3 3 3 10
New centers – remodel of existing space — — 2 — 1
Acquired centers (1) 1 9 1 — —
Closed center (2) — — (1) — —
Total centers, end of year 105 101 89 84 81
(1) In December 2011, we acquired nine centers from Lifestyle Family Fitness ("LFF") in Indiana, North Carolina
and Ohio. In May 2010, we acquired one center in Texas.
(2) In 2010, the lease expired on our 85,630 square foot center in St. Paul, Minnesota which opened in 1997. We
closed the center and transferred its memberships to our surrounding locations.
Grow membership dues.
We focus on growing our membership dues by ramping membership at non-mature centers, increasing membership
at mature centers that are operating below targeted capacity, optimizing membership mix and increasing prices.
Of our 105 open Life Time Fitness centers at December 31, 2012, 83 had reached maturity, which we define as the
37th month of operations. We had 22 centers that had not yet reached maturity, 11 of which were greenfield
expansion centers and 11 of which were acquired centers. In total, these 22 centers averaged 61% of targeted
membership capacity at December 31, 2012; our 11 greenfield centers averaged 68% of targeted membership
capacity and the 11 acquired centers averaged 46% of targeted membership capacity. We expect the continuing
increase in memberships at all 22 centers to contribute to our future growth. Our membership levels for all non-
mature centers were as follows:
As of December 31,
2012 2011 2010 2009 2008
Non-mature centers 22 21 20 24 36
Non-mature centers percentage of targeted capacity 60.7% 67.2% 65.3% 64.0% 62.6%
We also focus on optimizing our membership dues through price increases and by improving the mix of our
memberships. Our membership dues mix can be improved by increasing the number of members covered under a
membership (for instance, an individual to a couple membership, or a couple to a family membership). A member
may also upgrade a membership to a higher plan level (for example, from Gold to Platinum).
In order to achieve and maintain our membership and dues goals, we focus on demographics, center usage and
membership trends, and employ marketing programs to effectively communicate our value proposition to existing
and prospective members. We also offer a subscription option, referred to as a non-access membership, for members
who do not access the center, but still want to maintain certain member benefits.
Increase products, programs and services revenue.
We intend to grow in-center and ancillary revenue.
In 2012, revenue from the sale of in-center products, programming and services grew $39.8 million, or 12.9%, to
$348.3 million and we increased in-center revenue per membership from $481 to $507. Our programming and
services include individual and group personal training sessions and certification; individual and group weight loss
programs; hair, skin, nail care and massage services through LifeSpa; kids and adult activities; Pilates, yoga and
group fitness sessions and certification; swimming instruction and teams; healthy food offerings from LifeCafe;
health, fitness and nutrition assessments and coaching services; squash, racquetball and tennis leagues, programming