Lifetime Fitness 2013 Annual Report Download - page 11

5
Grow in-center revenue. In 2013, revenue from the sale of in-center products, programming and services grew $27.3
million, or 7.8%, to $375.5 million and we increased in-center revenue per membership from $507 to $545. Our
programming and services including personal training, spa, café and other member offerings. We focus on growing
in-center revenues by getting more members involved in or using our current product and service portfolio,
continually introducing new products and services and by marketing our in-center businesses.
Grow ancillary businesses revenue.
Our ancillary businesses include athletic events, media and health programs. These businesses help build the LIFE
TIME FITNESS® brand, differentiate our program offerings and support our membership base.
We produce athletic events for members and non-members, both inside and outside our centers. The primary focus
has been on endurance activities, including running, cycling and triathlon. Our events range from entry level to ultra
endurance events and draw from local, regional, national and international markets. We also acquired and operate a
race registration and timing business.
Through our media business, we provide our partners with reach to sought-after consumers through a range of print
and digital media, including our award-winning Experience Life® magazine and event sponsorships.
Our health and weight loss programs are expanding as we seek to serve both businesses and individuals with an
array of differentiated health, wellness, fitness, weight loss and nutrition solutions. As we do so, we also are creating
opportunities to expand the reach of our destinations, programs and services to new members, while also growing
our subscription-based model to include new types of memberships with limited or no regular center access.
Revenue from ancillary businesses grew $13.9 million, or 38.8%, to $49.6 million, which was due primarily to the
full year impact of our April 2012 acquisition of the race registration and timing business and other athletic events.
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 108 centers as of December 31, 2013, 87 are of our large format design and 63 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 6,500 to 10,500 memberships and our other large
format centers generally target 3,500 to 10,500 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 spa and café 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: