Lifetime Fitness 2013 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2013 Lifetime Fitness annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

41
Net cash provided by financing activities was $5.8 million for the year ended December 31, 2012, compared to $0.3
million provided by financing activities for the year ended December 31, 2011. The change of $5.5 million was
primarily due to a large debt retirement made in the second quarter of 2011, partially offset by $19.1 million
repurchases of common stock under our Stock Repurchase Program in the fourth quarter of 2012.
See footnote 4, “Long-Term Debt,” to our consolidated financial statements for a description of all of our
outstanding financing arrangements.
Debt Covenants
We were in compliance in all material respects with all restrictive and financial covenants under our credit facility
and loan agreements as of December 31, 2013.
Our primary financial covenants are:
Covenant Requirement Actual as of
December 31, 2013 Actual as of
December 31, 2012
Revolving credit facility (1):
Total Consolidated Debt to
Adjusted EBITDAR Not more than 4.00 to 1.00 2.79 to 1.00 2.51 to 1.00
Fixed Charge Coverage Ratio Not less than 1.50 to 1.00 3.58 to 1.00 3.00 to 1.00
Unencumbered Asset Ratio Not less than 1.30 to 1.00 2.62 to 1.00 2.90 to 1.00
Sale-leaseback (2):
Tangible Net Worth Not less than $200.0 million $1,039.0 million $979.0 million
(1) The formulas for these covenants are specifically defined in the credit agreement for our revolving credit
facility and include, among other things, an add back of share-based compensation expense to EBITDAR.
See footnote 4, “Long-Term Debt,” to our consolidated financial statements for more information on our
revolving credit facility.
(2) The formula for this covenant is specifically defined in our Senior Housing Properties Trust agreement. See
footnote 9, “Commitments and Contingencies,” to our consolidated financial statements for more
information on this sale-leaseback transaction.
Contractual Obligations
The following is a summary of our contractual obligations as of December 31, 2013:
Payments due by period
Total 2014 2015 2016 2017 2018 After
2018
(In thousands)
Long-term debt obligations,
excluding capital lease
obligations (1) $ 833,633 $ 14,238 $ 14,836 $ 80,779 $101,174 $522,713 $ 99,893
Capital lease obligations 14,965 10,267 575 621 655 733 2,114
Interest (2) 121,075 28,482 27,104 26,053 17,503 10,949 10,984
Operating lease obligations 662,384 39,301 40,967 40,199 39,845 40,228 461,844
Purchase obligations (3) 142,742 128,536 11,298 1,486 1,422 — —
Other obligations (4) 16,606 6,471 468 3,381 3,213 3,073 —
Total contractual obligations $1,791,405 $ 227,295 $ 95,248 $152,519 $163,812 $577,696 $ 574,835
(1) See footnote 4, “Long-Term Debt” to our consolidated financial statements for more information.
(2) Interest expense obligations were calculated holding floating rate debt balances and interest rates constant
at December 31, 2013 rates.