Lifetime Fitness 2013 Annual Report Download - page 19

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13
As of February 17, 2014, we had approximately 22,500 employees, including approximately 15,000 part-time
employees. 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 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 also 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;
• local salons, cafés and businesses offering similar ancillary services;
• exercise and small fitness clubs, and studios, including Anytime Fitness, Curves International and Snap
Fitness;
• racquet, tennis and other athletic clubs;
• amenity and condominium clubs;
• country clubs;
• online personal training and fitness coaching;
• the home-use fitness equipment industry;
• athletic event operators and related suppliers; and
• providers of wellness and other healthy way of life orientated products and services.
The health and wellness industry is highly competitive. While competition in the industry varies from market to
market, it may be impacted by various factors, including the breadth and price of membership offerings and other
products and services, the flexibility of membership options, the overall quality of the offering, name or brand
recognition and economies of scale. We believe that our comprehensive product offering and focus on services,
amenities and value provide us with a distinct competitive advantage, positioning us well in the health and wellness
industry.
Government Regulation
Our operations and business practices are subject to regulation at federal, state and local levels, including consumer
protection regulation related to our advertising, marketing, and sales efforts; health and safety regulation and
licensing requirements related to our café, spa, aquatics, child care and ancillary health and fitness-related products