As publicly traded companies, both Life Time Fitness, Inc., and Town Sports International recently released their 2013 financial results for the 2013 Q4.
Life Time Fitness, Inc. (NYSE:LTM), “The Healthy Way of Life Company,” had a fourth quarter revenue growth of 5.7 percent to $291 million, up from $274.3 million in the same quarter the previous year. Revenue for the full year grew 7.0 percent to $1.206 billion, up from $1.127 billion during the same period last year.
Net income for the quarter was $26.0 million, or $0.63 per diluted share, compared to a net income of $23.4 million, or $0.56 per diluted share, for the fourth quarter in 2012. Net income for the full year was $121.7 million, or $2.93 per diluted share, compared to a net income of $111.5 million, or $2.66 per diluted share for the prior-year period.
“2013 served as an important transition year for our company,” said Bahram Akradi, chairman, president and CEO, in a news release. “We continued to differentiate Life Time in keeping with our strategy to operate a high barrier to entry business model in what is a low barrier to entry industry. We also concentrated on further aligning our company for higher growth in 2014 and beyond by ensuring our businesses operate in highly synergistic fashion and our comprehensive array of healthy way of life programs and services are optimized to deliver tremendous value for communities, organizations and individuals.”
During the quarter, the company opened its third center in New Jersey, and a second location in New York, which opened on February 6, 2014. The company has plans to open additional locations in Tampa, Fla., Orange County, Calif., Des Moines, Iowa, Detroit, Mich. and Las Vegas, Nev.
Town Sports International Holdings, Inc. (NYSE:CLUB), a leading owner and operator of health clubs located primarily in the New England area, operating under the brand names “New York Sports Clubs,” “Boston Sports Clubs,” “Washington Sports Clubs” and “Philadelphia Sports Clubs,” announced its results for the fourth quarter and full-year.
Total revenue for Q4 2013 decreased $0.3 million, or 0.3 percent, compared to Q4 2012. According to the company, the decrease in revenue for Q4 2013 was primarily caused by a $1.7 million decrease at clubs opened or acquired prior to December 31, 2011, including $300,000 at a club temporarily closed due to Hurricane Sandy and re-opened in December 2013. In addition, a large decrease was slightly due to clubs that closed after December 2011, offset by an increase in fees and other revenue related to adjustments from acquired or newly-opened clubs and a deferred lease affecting subtenant rental income.
“This is an exciting time for TSI,” said Robert Giardina, the CEO of TSI, in a news release. “The fitness industry is growing and evolving faster than anytime I have seen in my 39 years in the business. In 2013 we made progress aligning our offering in order to benefit from these changes. While we are not satisfied with our 2013 financial results, we made advancements in a number of important areas like personal training, development of our exciting new BFX Studio brand, pricing improvements which were accompanied by stable attrition rates, systems investments, capital structure improvements and return of capital to shareholders with our establishment of a quarterly dividend. With our excellent real estate portfolio, strong financial position and experienced management team we are poised to capture our fair share of the growing health and fitness industry revenues.”
