The following is a summary of the Life Time Group Holdings, Inc. (LTH) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Life Time Group Holdings Q1 earnings saw a 16.8% increase in total revenue to $596.7 million compared to the previous year.

• Net income for Q1 was $24.9 million, a decrease of 9.5% compared to Q1 2023 due to one-time net benefits in the previous year.

• The company's adjusted EBITDA increased 21.6% to $146 million, which represented an increase of 100 basis points compared to Q1 2023.

• The company reduced its net debt to adjusted EBITDA leverage to 3.6 times in Q1, compared to 5.2 times in Q1 2023.

• The company has increased its revenue and adjusted EBITDA guidance modestly, and it is now focused on delivering positive free cash flow and reducing their net debt leverage ratio to under three times before the end of the year.

Business Progress:

• The company has seen record-breaking club openings, with new ones achieving contribution margin positivity faster than ever before.

• Lifetime Group Holdings has adjusted its business model to balance out the impacts of higher expenses versus higher revenues.

• The company is focused on maintaining the longest-term customers and has managed seasonal customer swings effectively in the last two years.

• The company still has about $1 billion potential for sale and leasebacks, and is optimizing tax implications by balancing the sale of older and newer clubs.

• Significant growth is expected in the 2024-2027 periods due to their current business model.

More details: Life Time IR

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