Lifetime Fitness 2012 Annual Report Download - page 40

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34
Results of Operations
The following table sets forth our consolidated statements of operations data as a percentage of total revenue for the
periods indicated:
For the Year Ended December 31,
2012 2011 2010
REVENUE:
Membership dues 64.6% 65.5% 66.1%
Enrollment fees 1.4 1.8 2.7
In-center revenue 30.8 30.4 29.1
Total center revenue 96.8 97.7 97.9
Other revenue 3.2 2.3 2.1
Total revenue 100.0 100.0 100.0
OPERATING EXPENSES:
Center operations 58.2 60.7 61.5
Advertising and marketing 3.5 3.5 3.0
General and administrative 5.0 5.4 5.2
Other operating 4.6 3.5 2.6
Depreciation and amortization 10.2 9.8 10.1
Total operating expenses 81.5 82.9 82.4
Income from operations 18.5 17.1 17.6
OTHER INCOME (EXPENSE):
Interest expense, net (2.3 ) (2.0 ) (3.0)
Equity in earnings of affiliate 0.1 0.1 0.1
Total other income (expense) (2.2 ) (1.9 ) (2.9)
INCOME BEFORE INCOME TAXES 16.3 15.2 14.7
PROVISION FOR INCOME TAXES 6.5 6.1 5.9
NET INCOME 9.8% 9.1% 8.8%
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Total revenue. Total revenue increased $113.2 million, or 11.2%, to $1,126.9 million for the year ended
December 31, 2012 from $1,013.7 million for the year ended December 31, 2011.
Total center revenue grew $100.8 million, or 10.2%, to $1,091.2 million for the year ended December 31, 2012,
from $990.4 million for the year ended December 31, 2011. Of the $100.8 million increase in total center revenue,
• 63.6% was from membership dues, which increased $64.2 million, or 9.7%, due to higher average dues and
increased memberships, primarily at new and ramping centers. Our number of Access memberships
increased 1.0% to 682,621 at December 31, 2012 from 676,054 at December 31, 2011.
• 39.5% was from in-center revenue, which increased $39.8 million primarily as a result of increased
personal training revenue, which increased $22.0 million, or 15.0%, and increased sales of our LifeSpa and
LifeCafe products and services, which increased $10.5 million, or 9.1%. Average in-center revenue per
membership increased from $481 for the year ended December 31, 2011 to $507 for the year ended
December 31, 2012.
• (3.1)% was from enrollment fees, which are deferred until a center opens and recognized on a straight-line
basis over our estimated average membership life. Since the fourth quarter of 2010, the estimated average
membership life has been 33 months. For the first three quarters of 2010, the estimated average
membership life was 30 months. Enrollment fees decreased $3.1 million for the year ended December 31,