Lifetime Fitness 2012 Annual Report Download - page 18

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the Sky.” In addition, we own and manage the Life Time Tri Pro Series, which connects seven of the most prominent
international distance triathlon events in the United States. We produce events primarily in markets in which we
operate centers, including themed runs such as the Torchlight 5K Run and Turkey Day 5K. We also hosted the
Commitment DaySM run in 28 markets, with over 35,000 participants on New Year's Day. We also produce indoor
triathlons in many of our centers, which are geared towards introducing members to the sport of triathlon.
Nutritional Products. We offer a line of nutritional products, including Men's and Women's Performance
Multivitamins, Omega-3 Fish Oil, Joint Maintenance Formulation, LeanSource Soft Gels, VeganMax, Whey Protein,
and FastFuel Complete, our meal replacement product. We believe our products deliver high quality, value and
performance when it comes to helping our members achieve their health and fitness goals. Our products use high
quality ingredients and are available in our LifeCafes and through our website, shop.lifetimefitness.com. Our current
nutritional product line focuses on general health, along with LeanSource, which supports weight management. We
use experienced and professional third parties to manufacture our nutritional products.
Our Employees
Our current model centers are staffed with an average of 250 full-time and part-time employees. Approximately 11
center employees are in management positions, typically including a general manager, member services department
head, operations department head, member engagement manager and personal training department head to ensure a
well-managed facility and motivated work force.
Most center employees are required to participate in a training and certification program that is specifically designed
to promote a friendly and inviting environment at each center and a consistent standard of performance across all of
our centers. Employees also receive ongoing mentoring, and continuing education is often required before they are
permitted to advance to other positions within our company. Additionally, our personal trainers, registered dietitians,
massage therapists and cosmetologists are required to maintain a professional license or one of their industry’s top
certifications.
As of December 31, 2012, we had approximately 21,700 employees, including approximately 14,500 part-time
employees and approximately 780 employees at our corporate office. We are not a party to a collective bargaining
agreement with any of our employees. Although we experience turnover of non-management employees, historically
we have not experienced difficulty in obtaining adequate replacement employees. In general, we believe relations
with our employees are good.
Information Systems
In addition to our standard operating and administrative systems, we use an integrated and flexible member
management system to manage the flow of member information within each of our centers and between centers and
our corporate office. We have designed and developed our proprietary system to allow us to easily collect and
process information. Our system enables us to, among other things, enroll new members with an electronic
membership agreement, capture digital pictures of members for identification purposes and capture and maintain
specific member information, including usage. The system allows us to streamline the collection of membership
dues electronically, thereby offering additional convenience for our members while at the same time reducing our
corporate overhead and accounts receivable. We have a customer relationship management system to enhance our
marketing campaigns and management oversight regarding daily sales and marketing activities.
Competition
We consider the following groups to be the primary industry participants in the health and wellness industry:
• health club operators, including 24 Hour Fitness Worldwide, Inc., Equinox Holdings, Inc., LA Fitness
International, LLC, Town Sports International, Inc. and Gold's Gym;
• the YMCA and similar non-profit organizations;
• physical fitness and recreational facilities established by local governments, hospitals and businesses;