UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 21, 2014
Life Time Fitness, Inc.
(Exact name of Registrant as specified in its charter)
Minnesota | 001-32230 | 41-1689746 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
2902 Corporate Place Chanhassen, Minnesota |
55317 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code (952) 947-0000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On July 24, 2014, Life Time Fitness, Inc. (the Company) reported its financial results for its second quarter ended June 30, 2014. See the Companys press release dated July 24, 2014, which is furnished as Exhibit 99.1 and incorporated by reference in this Current Report on Form 8-K.
The press release furnished as Exhibit 99.1 and certain information the Company intends to disclose on the conference call scheduled for 10:00 a.m. eastern time on July 24, 2014 includes EBITDA, a non-GAAP financial measure. The reconciliation of this measure to the most directly comparable GAAP financial measure is included in the press release. In addition to the information in the press release under the heading Non-GAAP Financial Measure, the Company provides the following additional information about the Companys use of this non-GAAP financial measure.
EBITDA. The Company believes EBITDA is useful to an investor in evaluating the Companys operating performance and liquidity because:
| it is a widely accepted financial indicator of a companys ability to service its debt and the Company is required to comply with certain covenants and borrowing limitations that are based on variations of EBITDA in certain of the Companys financing documents; and |
| it is widely used to measure a companys operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of the Companys capital structure and the method by which assets were acquired. |
The Companys management uses EBITDA:
| as a measurement of operating performance because it assists the Company in comparing its performance on a consistent basis; |
| in presentations to the members of the Companys board of directors to enable the board to have the same consistent measurement basis of operating performance used by management; and |
| as the basis for incentive bonuses paid to selected members of senior and center-level management. |
Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On July 21, 2014, the board of directors of the Company appointed Eric J. Buss, age 47, to serve as Executive Vice President and Chief Financial Officer. Mr. Buss was previously appointed Executive Vice President and Interim Chief Financial Officer, effective March 2, 2014.
Information regarding Mr. Busss biography and business experience is available in the Companys Form 10-K filed with the Securities and Exchange Commission on February 28, 2014, and such information is incorporated herein by reference.
Item 9.01. | Financial Statements and Exhibits. |
The following Exhibit is being furnished herewith:
99.1 | Press Release Announcing Second Quarter 2014 Financial Results dated July 24, 2014. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
LIFE TIME FITNESS, INC. | ||||||
Date: July 24, 2014 | By: | /s/ Eric J. Buss | ||||
Eric J. Buss | ||||||
Executive Vice President and Chief Financial Officer |
3
EXHIBIT INDEX
No. |
Exhibit |
Manner of Filing | ||
99.1 | Press Release Announcing Second Quarter 2014 Financial Results dated July 24, 2014. | Filed Electronically |
Exhibit 99.1
Contacts:
Investor Relations: John Heller, 952-229-7427, ir@lifetimefitness.com
Media Relations: Jason Thunstrom, 952-229-7435, pr@lifetimefitness.com
FOR IMMEDIATE RELEASE
LIFE TIME FITNESS ANNOUNCES SECOND QUARTER 2014 FINANCIAL RESULTS AND
NEW SHARE REPURCHASE PROGRAM
Revenue Grew 6.0%, Net Income was $29.8 million and Diluted EPS was $0.76;
Board Authorizes Company to Repurchase up to $200.0 million of Common Stock
CHANHASSEN, Minn. (July 24, 2014) Life Time Fitness, Inc. (NYSE: LTM), The Healthy Way of Life Company, today reported its financial results for the second quarter ended June 30, 2014.
Second quarter 2014 revenue grew 6.0% to $326.6 million from $308.1 million during the same period last year. Revenue for the first six months of 2014 grew 6.6% to $638.5 million from $598.9 million during the same period last year.
Net income for the quarter was $29.8 million, or $0.76 per diluted share, compared to net income of $33.2 million, or $0.80 per diluted share, for 2Q 2013. Net income for the first six months of 2014 was $58.1 million, or $1.45 per diluted share, compared to net income of $61.3 million, or $1.47 per diluted share for the prior-year period.
The Company also announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to $200.0 million of its outstanding common stock.
The second quarter was a challenging one for our company as we faced unexpected erosion of membership levels at some centers, said Bahram Akradi, Life Time chairman, president and chief executive officer. We believe the retention-focused initiatives we have previously introduced will positively affect membership levels over time. At the same time, I am pleased to report that, as a group, the five Life Time Athletic centers we have opened in 2014 have outperformed our financial expectations. Our current plans call for one additional Life Time Athletic center opening this year, and six new Life Time Athletic center openings in 2015. These openings, along with the expansion and improvement of our member-focused health, fitness, family recreation and sports programs, serve as the foundation of long-term growth for our Healthy Way of Life Company.
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Life Time Announces Second Quarter 2014 Results Page 2
During the quarter, the Company opened its first center in Des Moines, Iowa, and the sixth center in the Detroit market, located in Bloomfield Township, Michigan. Since the beginning of the year, the Company has opened five of the six planned new centers for 2014, the last of which will be in the Las Vegas market during the fourth quarter.
Share Repurchase Program:
The new program replaces a $200.0 million share repurchase program that was introduced in August 2013. Under the former program, from its inception through June 30, 2014, the Company repurchased approximately 3.6 million shares at a total cost of approximately $171.0 million. Under the new program, share repurchases may be made from time to time through open market or privately negotiated transactions. The timing of such transactions depends on a variety of factors, including market conditions, blackout periods, and the terms of trading plans, if any, established in accordance with Securities and Exchange Commission rules.
The authorization to repurchase shares terminates when the aggregate repurchase amount totals $200.0 million or at the close of business on June 30, 2016, whichever comes earlier. The share repurchase program does not obligate the company to repurchase any dollar amount or number of shares of its common stock and the program may be extended, modified, suspended or discontinued at any time.
Three and Six Months Ended June 30, 2014, Financial Highlights:
Total revenue for the second quarter grew 6.0% to $326.6 million from $308.1 million in 2Q 2013. Total revenue for the first six months of 2014 grew 6.6% to $638.5 million from $598.9 million during the prior-year period.
2Q 2014 vs. 2Q 2013 | ||
(in millions except revenue per membership data) | ||
Membership dues |
$205.2 vs. $194.8 (up 5.3%) | |
In-center revenue |
$104.4 vs. $97.3 (up 7.3%) | |
Other revenue |
$14.0 vs. $12.4 (up 12.7%) | |
Average center revenue per Access membership |
$442 vs. $416 (up 6.3%) | |
Average in-center revenue per Access membership |
$150 vs. $139 (up 7.9%) | |
Same-center revenue (open 13 months or longer) |
Down 0.6% | |
Same-center revenue (open 37 months or longer) |
Down 0.9% |
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Life Time Announces Second Quarter 2014 Results Page 3
YTD 2014 vs. YTD 2013 | ||
(in millions except revenue per membership data) | ||
Membership dues |
$402.0 vs. $381.2 (up 5.5%) | |
In-center revenue |
$202.8 vs. $189.2 (up 7.1%) | |
Other revenue |
$27.6 vs. $21.5 (up 28.8%) | |
Average center revenue per Access membership |
$872 vs. $821 (up 6.2%) | |
Average in-center revenue per Access membership |
$294 vs. $272 (up 7.8%) | |
Same-center revenue (open 13 months or longer) |
Up 0.4% | |
Same-center revenue (open 37 months or longer) |
Up 0.1% |
Total memberships grew 1.2% to 823,021 at June 30, 2014, from 812,866 at June 30, 2013.
| Access memberships were 712,296 at June 30, 2014 compared to 713,138 at June 30, 2013. |
| Non-Access memberships were 110,725 at June 30, 2014 compared to 99,728 at June 30, 2013. |
| Attrition in 2Q 2014 was 8.3% compared to 8.2% in the prior-year period. Attrition for the 12-month period ended June 30, 2014, was 35.8% compared to attrition of 34.5% during the 12-month period ended June 30, 2013. |
Total operating expenses during 2Q 2014 were $269.1 million compared to $247.4 million for 2Q 2013. Total operating expenses for the first six months of 2014 were $527.0 million compared to $485.8 million for the first six months of 2013.
| Income from operations margin was 17.6% for 2Q 2014 compared to 19.8% in the prior-year period. |
| Income from operations margin was 17.5% for the first six months of 2014 compared to 18.9% for the first six months of 2013. |
2Q 2014 vs. 2Q 2013 | ||
(expense as a percent of total revenue) | ||
Center operations |
59.4% vs. 57.4% | |
Advertising and marketing |
3.0% vs. 3.1% | |
General and administrative |
4.4% vs. 5.1% | |
Other operating |
5.0% vs. 4.9% | |
Depreciation and amortization |
10.6% vs. 9.7% |
YTD 2014 vs. YTD 2013 | ||
(expense as a percent of total revenue) | ||
Center operations |
59.0% vs. 57.9% | |
Advertising and marketing |
3.5% vs. 3.4% | |
General and administrative |
4.8% vs. 5.2% | |
Other operating |
4.8% vs. 4.7% | |
Depreciation and amortization |
10.4% vs. 9.9% |
Net income for 2Q 2014 was $29.8 million, or $0.76 per diluted share, compared to net income of $33.2 million, or $0.80 per diluted share, for 2Q 2013. Net income for the first six months of 2014 was $58.1 million, or $1.45 per diluted share, compared to net income of $61.3 million, or $1.47 per diluted share, for the prior-year period.
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Life Time Announces Second Quarter 2014 Results Page 4
EBITDA for 2Q 2014 was $92.2 million compared to $91.1 million in 2Q 2013. For the first six months of 2014, EBITDA was $178.7 million compared with $173.1 million in the prior-year period.
| As a percentage of total revenue, EBITDA in 2Q 2014 was 28.3% and 29.6% in 2Q 2013. |
| For the first six months of 2014, EBITDA, as a percentage of total revenue, was 28.0% compared to 28.9% in the prior-year period. |
Cash flows from operating activities for the first six months of 2014 totaled $133.7 million compared to $124.5 million in the prior-year period.
Weighted average fully diluted shares for 2Q 2014 totaled 39.3 million compared to 41.7 million in 2Q 2013. For the first six months of 2014, weighted average fully diluted shares totaled 40.1 million compared to 41.6 million for the prior-year period.
Updated 2014 Business Outlook:
The following statements are based on the Companys current expectations for fiscal year 2014. These 2014 expectations are subject to the risks and uncertainties further described in the Companys forward-looking statements:
| Revenue is expected to be $1.290-1.310 billion (revised from $1.300-1.320 billion). |
| Net income is expected to be $120.0-125.0 million (revised from $125.0-130.0 million). |
| Diluted earnings per common share is expected to be $3.00-3.10 (revised from $3.05-3.15). |
As announced on July 17, 2014, the Company will hold a conference call today at 10:00 a.m. ET to discuss its second quarter 2014 results. Akradi, Eric Buss, executive vice president and chief financial officer, and John Heller, vice president, Finance and Investor Relations, will host the conference call. The conference call will be webcast and may be accessed via the Companys Investor Relations section of its website at lifetimefitness.com. A replay of the call will be available the same day via the Companys website beginning at approximately 2:00 p.m. ET.
As announced on February 20, 2014, Buss assumed the additional role of interim chief financial officer, effective March 2, 2014. The Companys board of directors has confirmed Buss appointment as chief financial officer, effective July 21, 2014. Buss joined Life Time in September 1999 as vice president of Finance and general counsel. Prior to joining the Company, Buss was an associate with the law firm of Faegre & Benson LLP (now Faegre Baker Daniels LLP) and, before that, he served as an auditor with Arthur Andersen LLP.
- more -
Life Time Announces Second Quarter 2014 Results Page 5
About Life Time Fitness, Inc.:
As The Healthy Way of Life Company, Life Time Fitness (NYSE:LTM) helps organizations, communities and individuals achieve their total health objectives, athletic aspirations and fitness goals by engaging in their areas of interest or discovering new passions both inside and outside of Life Times distinctive and large sports, professional fitness, family recreation and spa destinations, most of which operate 24 hours a day, seven days a week. The Companys Healthy Way of Life approach enables customers to achieve this by providing the best programs, people and places of uncompromising quality and value. As of July 24, 2014, the Company operated 112 centers under the LIFE TIME FITNESS® and LIFE TIME ATHLETIC® brands in the United States and Canada. Additional information about Life Time centers, programs and services is available at lifetimefitness.com.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can usually be identified by the use of terminology such as anticipate, believe, continue, could, estimate, evolve, expect, forecast, intend, looking ahead, may, opinion, plan, possible, potential, project, should, will and similar words or expressions. Forward-looking statements are subject to certain risks and uncertainties that could cause the Companys actual results in the future to differ materially from its historical results and those presently anticipated or projected. Among these factors are attracting and retaining members, risks related to our debt levels and debt covenants, the ability to access our existing credit facility and obtain additional financing, strains on our business from continued and future growth, including potential acquisitions and other strategic initiatives, risks related to maintenance and security of our data, potential recognition of compensation expense related to performance-based stock grants, competition from other health and fitness centers, identifying and acquiring suitable sites for new centers, delays in opening new centers, unanticipated expenses relating to regulatory matters or litigation, and other factors set forth in the risk factor section of the Companys annual report on Form 10-K filed with the Securities and Exchange Commission. The Company cautions investors not to place undue reliance on any such forward-looking statements, which speak only as of the date on which such statements were made. The Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date. All remarks made during the Companys preliminary financial results webcast will be current at the time of the webcast and the Company is under no obligation to update the recording.
# # #
Life Time Announces Second Quarter 2014 Results Page 6
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 15,850 | $ | 8,334 | ||||
Accounts receivable, net |
11,091 | 8,298 | ||||||
Center operating supplies and inventories |
36,660 | 32,778 | ||||||
Prepaid expenses and other current assets |
28,942 | 25,802 | ||||||
Deferred membership origination costs |
9,455 | 9,945 | ||||||
Deferred income taxes |
4,526 | 6,881 | ||||||
Income tax receivable |
7,614 | 6,698 | ||||||
|
|
|
|
|||||
Total current assets |
114,138 | 98,736 | ||||||
Property and equipment, net |
2,289,876 | 2,105,077 | ||||||
Restricted cash |
588 | 850 | ||||||
Deferred membership origination costs |
6,433 | 5,210 | ||||||
Goodwill |
57,478 | 49,195 | ||||||
Intangible assets, net |
35,175 | 29,299 | ||||||
Other assets |
43,675 | 42,684 | ||||||
|
|
|
|
|||||
Total assets |
$ | 2,547,363 | $ | 2,331,051 | ||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current maturities of long-term debt |
$ | 27,366 | $ | 24,505 | ||||
Accounts payable |
37,688 | 28,645 | ||||||
Construction accounts payable |
43,436 | 47,342 | ||||||
Accrued expenses |
67,327 | 67,435 | ||||||
Deferred revenue |
46,037 | 35,032 | ||||||
|
|
|
|
|||||
Total current liabilities |
221,854 | 202,959 | ||||||
Long-term debt, net of current portion |
1,097,716 | 824,093 | ||||||
Deferred rent liability |
29,149 | 28,933 | ||||||
Deferred income taxes |
94,496 | 100,504 | ||||||
Deferred revenue |
6,499 | 5,246 | ||||||
Other liabilities |
20,938 | 21,287 | ||||||
|
|
|
|
|||||
Total liabilities |
1,470,652 | 1,183,022 | ||||||
|
|
|
|
|||||
Shareholders equity: |
||||||||
Common stock |
794 | 843 | ||||||
Additional paid-in capital |
272,921 | 402,147 | ||||||
Retained earnings |
808,774 | 750,654 | ||||||
Accumulated other comprehensive loss |
(5,778 | ) | (5,615 | ) | ||||
|
|
|
|
|||||
Total shareholders equity |
1,076,711 | 1,148,029 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 2,547,363 | $ | 2,331,051 | ||||
|
|
|
|
Life Time Announces Second Quarter 2014 Results Page 7
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: |
||||||||||||||||
Membership dues |
$ | 205,164 | $ | 194,816 | $ | 401,979 | $ | 381,190 | ||||||||
Enrollment fees |
3,019 | 3,573 | 6,142 | 6,969 | ||||||||||||
In-center revenue |
104,359 | 97,275 | 202,764 | 189,246 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total center revenue |
312,542 | 295,664 | 610,885 | 577,405 | ||||||||||||
Other revenue |
14,022 | 12,444 | 27,634 | 21,450 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
326,564 | 308,108 | 638,519 | 598,855 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
||||||||||||||||
Center operations |
194,005 | 176,798 | 377,123 | 346,760 | ||||||||||||
Advertising and marketing |
9,733 | 9,629 | 22,072 | 20,588 | ||||||||||||
General and administrative |
14,496 | 15,713 | 30,360 | 31,069 | ||||||||||||
Other operating |
16,377 | 15,225 | 30,799 | 28,059 | ||||||||||||
Depreciation and amortization |
34,460 | 30,017 | 66,598 | 59,279 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
269,071 | 247,382 | 526,952 | 485,755 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from operations |
57,493 | 60,726 | 111,567 | 113,100 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income (expense): |
||||||||||||||||
Interest expense, net |
(8,652 | ) | (6,434 | ) | (16,503 | ) | (12,563 | ) | ||||||||
Equity in earnings of affiliate |
270 | 378 | 568 | 724 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income (expense) |
(8,382 | ) | (6,056 | ) | (15,935 | ) | (11,839 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
49,111 | 54,670 | 95,632 | 101,261 | ||||||||||||
Provision for income taxes |
19,307 | 21,483 | 37,512 | 39,973 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 29,804 | $ | 33,187 | $ | 58,120 | $ | 61,288 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per common share |
$ | 0.76 | $ | 0.80 | $ | 1.46 | $ | 1.48 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted earnings per common share |
$ | 0.76 | $ | 0.80 | $ | 1.45 | $ | 1.47 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of common shares outstandingbasic |
39,128 | 41,456 | 39,870 | 41,376 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of common shares outstandingdiluted |
39,255 | 41,659 | 40,123 | 41,644 | ||||||||||||
|
|
|
|
|
|
|
|
Life Time Announces Second Quarter 2014 Results Page 8
LIFE TIME FITNESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 58,120 | $ | 61,288 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
66,598 | 59,279 | ||||||
Deferred income taxes |
(3,715 | ) | 671 | |||||
Gain on disposal of property and equipment, net |
(459 | ) | (216 | ) | ||||
Gain on sale of land held for sale |
(17 | ) | | |||||
Amortization of deferred financing costs |
1,245 | 1,100 | ||||||
Share-based compensation |
6,777 | 6,286 | ||||||
Excess tax benefit related to share-based compensation |
(917 | ) | (4,564 | ) | ||||
Changes in operating assets and liabilities |
6,508 | 1,726 | ||||||
Other |
(478 | ) | (1,116 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
133,662 | 124,454 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(253,411 | ) | (137,433 | ) | ||||
Acquisitions, net of cash acquired |
(12,400 | ) | (437 | ) | ||||
Proceeds from sale of property and equipment |
691 | 763 | ||||||
Proceeds from sale of land held for sale |
785 | | ||||||
Proceeds from property insurance settlements |
| 175 | ||||||
Decrease (increase) in other assets |
2,333 | (736 | ) | |||||
Decrease in restricted cash |
262 | 1,640 | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
(261,740 | ) | (136,028 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Proceeds from long-term borrowings |
83,750 | 75,000 | ||||||
Repayments of long-term borrowings |
(10,772 | ) | (28,272 | ) | ||||
Proceeds from (repayments of) revolving credit facility, net |
203,400 | (13,500 | ) | |||||
Increase in deferred financing costs |
(4,470 | ) | (976 | ) | ||||
Excess tax benefit related to share-based compensation |
917 | 4,564 | ||||||
Proceeds from stock option exercises |
2,662 | 1,108 | ||||||
Proceeds from employee stock purchase plan |
775 | 607 | ||||||
Stock purchased for employee stock purchase plan |
(701 | ) | (569 | ) | ||||
Repurchases of common stock |
(139,994 | ) | (28,157 | ) | ||||
|
|
|
|
|||||
Net cash provided by financing activities |
135,567 | 9,805 | ||||||
|
|
|
|
|||||
Effect of exchange rates on cash and cash equivalents |
27 | (1,604 | ) | |||||
|
|
|
|
|||||
Increase (decrease) in cash and cash equivalents |
7,516 | (3,373 | ) | |||||
Cash and cash equivalentsbeginning of period |
8,334 | 16,499 | ||||||
|
|
|
|
|||||
Cash and cash equivalentsend of period |
$ | 15,850 | $ | 13,126 | ||||
|
|
|
|
Life Time Announces Second Quarter 2014 Results Page 9
Non-GAAP Financial Measure
This release and the related conference call disclose EBITDA, a non-GAAP financial measure.
EBITDA. Earnings Before Interest, Income Taxes and Depreciation and Amortization (EBITDA) is a non-GAAP measure consisting of net income plus interest expense, net, provision for income taxes and depreciation and amortization. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses EBITDA as a measure of operating performance. The funds depicted by EBITDA are not necessarily available for discretionary use if they are reserved for particular capital purposes, to maintain compliance with debt covenants, to service debt or to pay taxes. EBITDA should not be considered as a substitute for net income, net cash provided by operating activities or other income or cash flow data prepared in accordance with GAAP. Additional details related to EBITDA are provided in the Form 8-K that the Company filed with the Securities and Exchange Commission on the date of this press release. The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to EBITDA:
RECONCILIATION OF NET INCOME TO EBITDA
(In thousands)
(Unaudited)
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income |
$ | 29,804 | $ | 33,187 | $ | 58,120 | $ | 61,288 | ||||||||
Interest expense, net |
8,652 | 6,434 | 16,503 | 12,563 | ||||||||||||
Provision for income taxes |
19,307 | 21,483 | 37,512 | 39,973 | ||||||||||||
Depreciation and amortization |
34,460 | 30,017 | 66,598 | 59,279 | ||||||||||||
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EBITDA |
$ | 92,223 | $ | 91,121 | $ | 178,733 | $ | 173,103 | ||||||||
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