Lifetime Fitness 2012 Annual Report Download - page 11

5
and instruction; recreational basketball leagues through Ultimate Hoops; and other in-center events. We expect to
continue driving in-center revenue both by increasing sales of our current in-center products and services, while
introducing new products and services to our members and customers.
Our ancillary businesses includes media, athletic events and related services, health promotion programs and
training and certification programs. These businesses help grow the LIFE TIME FITNESS® brand, differentiate our
program offerings and support our membership base. Revenue from ancillary businesses grew $12.4 million, or
53.3%, to $35.7 million, which was due primarily to the acquisition of race registration and timing businesses and
other athletic events.
Our Industry
We participate in the large and growing health and wellness industry, which includes health clubs, fitness equipment,
athletics, wellness education, nutritional products, athletic apparel, spa services and other wellness-related activities.
According to International Health, Racquet & Sportclub Association (“IHRSA”), the estimated market size of the
U.S. health club industry in 2011, which is a relatively small part of the health and wellness industry, was
approximately $21.4 billion in revenue and 51.4 million members with approximately 29,960 clubs. Based on
IHRSA membership data, the number of health club members in the U.S. increased 23.9% from 41.5 million in 2007
to 51.4 million in 2011. Over this same period, total U.S. health club industry revenues increased 14.4% from $18.7
billion to $21.4 billion.
Our Sports and Athletic, Professional Fitness, Family Recreation and Spa Centers
Size and Location
Our centers have evolved since inception. All centers are centrally located in areas that offer convenient access from
residential, business and shopping districts of the surrounding community, and generally provide free and ample
parking.
Of our 105 centers as of December 31, 2012, 84 are of our large format design and 60 of those conform to our
current model center design. Our distinctive format is designed to provide efficient and inviting spaces that are
conducive to the wide range of healthy way of life programming we deliver and that accommodate each center’s
targeted capacity. Our current model centers generally target 7,500 to 11,000 memberships and our other large
format centers generally target 5,500 to 11,000 memberships. This targeted capacity is designed to maximize the
member experience based upon our historical understanding of membership usage, facility layout, the number of
individual, couple and family memberships and pricing.
Generally, the main differences between our large format centers and those that are of the current model design are
that our current model centers generally include an outdoor aquatics park, larger indoor aquatics area, larger
gymnasium, up to three additional studios and enhanced LifeSpa and LifeCafe spaces. We believe that all of our
large format centers serve as all-in-one sports and athletic, professional fitness, family recreation and spa
destinations. The following table provides the number and average square footage of our large format centers:
As of December 31,
2012 2011 2010 2009 2008
Large format centers – current model
Number of centers 60 57 54 51 48
Average square feet 114,000 113,000 113,000 113,000 113,000
Large format centers – other
Number of centers 24 24 24 24 24
Average square feet 95,000 95,000 95,000 95,000 95,000